PROJECT REPORT

ON

FACTORS AFFECTING IMPULSE BUYING BEHAVIOR IN FMCG

SECTOR WITH SPECIAL REFERENCE TO BIG BAZAAR & VISHAL

MEGA MART IN CHANDIGARH & AROUND REGION

Submitted to Punjab Technical University in the partial fulfillment of the requirement for

the degree of

Master of Business Administration

Submitted to: Submitted by:

Ms. Shweta Sharma Parwinder Singh

H.O.D (Mgt.) Roll No:1275558

Add. Dean MBA 4th Sem.

Planning & Admin

Universal Institute Of Engineering and Technology

PUNJABTECHNICALUNIVERSITY, JALANDHAR

TABLE OF CONTENTS

Acknowledgement

Preface

Declaration

List of tables

List of Graphs

CHAPTER No. CHAPTER NAME PAGE NO:

Chapter-1 Introduction

Chapter-2 Review of literature

Chapter-3 Research Methodology

1.1 Research design

1.2 Objectives of the study

1.3 Scope of the study

1.4 Data collection

1.5 Limitations

Chapter-4 Analysis & Interpretations

Chapter-5 Conclusion & Recommendations

Bibliography

Annexure

ACKNOWLEDGMENT

This humble endeavor bears the imprint of many persons who were in one way or the other

helpful in the completion of my final project report. I would like to take this opportunity to

present my vote of thanks to my guides who acted as lighting pillars to enlighten my way

through out this project. This project would not have been possible without the kind assistance

and guidance of many people who indeed were helpful, cooperative and kind during the entire

course of my project.

The acknowledgment would not be complete without expressing my indebtedness to my faculty

guide of this project MS GAGANDEEP KAUR who guided us in this project and was the

constant source of reference for us and showed full interest at each and every step of our project.

Parwinder Singh

PREFACE

Research Project is the bridge for a student that takes him from his theoretical knowledge world

to practical industry world. The main purpose of it is to expose for industrial and business

environment, which cannot be possible in the classroom.

The advantages of this sort of integration, which promotes guided to corporate culture, functional,

social and norms along with formal teaching are numerous. Project Report is business organization

in fuse among student a sense of critical analysis of the real managerial situation to which they

are exposed. This gins them an opportunity to apply their conceptual theoretical & imaginative

skills in a real life situations and to evaluate the results there of.

BIG BAZAAR is a name renowned name in Retail. BIG BAZAAR is now a brand image in

private retail sector. While my two month project, I was at BIG BAZAAR to find potential of

BIG BAZAAR on the presence of other retail Stores.

Practical training through experts of BIG BAZAAR gave me actual input to fulfill my real aim.

This report is the written account of what I learnt experienced during my training. I wish those

going through it will not only find it real but also get useful information.

DECLARATION

I Parwinder Singh Roll no. 1275558 do hereby declare that Research Report

“IMPULSE BUYING BEHAVIOUR” Submitted to Punjab Technical University,

in partial fulfilment of M.B.A. Is the result of my own work. I have not submitted

this project report to any other university for the award of degree.

Submitted To Submitted By

Ms Shweta Sharma Parwinder Singh

HOD (Management) Roll. No-1275558

MBA 4th SEM

LIST OF TABLE

S. No. Table Page No.

1 Sales Promotion tools and opinion response 28

2 Company’s Television owed 29

3 Effectiveness of live demonstrate 31

4 Customer Education 33

5 Most suitable Media 35

6 Gift offered by various companies 37

7 Sales promotion tools 39

8 Point of purchase 41

9 Companies trade show and fair 43

10 Companies cross promotion 45

11 Level of satisfaction 47

12 Reason for satisfaction 49

S. No. GRAPH NAME Page No.

1 Company’s Television owed 30

2 Effectiveness of live demonstrate 32

3 Customer Education 34

4 Most suitable media 36

5 Gift offered by various companies 38

6 Sales promotion tools 40

7 Point of purchase 42

8 Companies trade show and fair 44

9 Companies cross promotion 46

10 Level of satisfaction 48

11 Reason for satisfaction 50

LIST OF GRAPH

CHAPTER-1

INTRODUCTION

INTRODUCTION:

“Retailing includes all activities involved in selling goods or services directly to final consumers

for personal, non-business use. A retailer or retail store is any business enterprise whose sales

volume comes primarily from retailing.” Retail is India's largest industry, accounting for over 10

per cent of the country's GDP and around eight per cent of the employment. Retail industry in

India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries

with several players entering the market.

India retail industry is the largest industry in India, with an employment of around 8% and

contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%

yearly being driven by strong income growth, changing lifestyles, and favorable demographic

patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200

billion. A further increase of 7-8% is expected in the industry of retail in India by growth in

consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further

been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2012 from

the current size of US$ 7.5 billion. Shopping in India have witnessed a revolution with the

change in the consumer buying behavior and the whole format of shopping also altering.

Industry of retail in India which have become modern can be seen from the fact that there are

multi- stored malls, huge shopping centers, and sprawling complexes which offer food,

shopping, and entertainment all under the same roof.

India retail industry is expanding itself most aggressively, as a result a great demand for real

estate is being created. Indian retailers preferred means of expansion is to expand to other

regions and to increase the number of their outlets in a city. It is expected that by 2012, India

may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9%

annually. The branded food industry is trying to enter the India retail industry and convert Indian

consumers to branded food. Since at present 60% of the Indian grocery basket consists of non-

branded items.

India retail industry is progressing well and for this to continue retailers as well as the Indian

government will have to make a combined effort.

The presence of 15million kirana stores brings into light the very fact that the Indian retail

industry is highly fragmented/ unorganized. Retailing in India is gradually inching its way

toward becoming the next boom industry, organized retailing in particular. The whole concept of

shopping has altered in terms of format and consumer buying behavior, ushering in a revolution

in shopping in India. Modern retail has entered India as seen in sprawling shopping centers,

multi-storied malls and huge complexes offer shopping, entertainment and food all under one

roof.

The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per

cent in 2013. It is currently around 12 per cent, and is likely to reach 22 per cent by 2013.

Commercial real estate services company, CB Richard Ellis' findings state that India's retail

market is currently valued at US$ 511 billion, and is poised to grow to US$ 833 billion by 2013.

The report further stated that organised retail that currently accounts for less than 5 per cent of

the total retail market is expected to register a compound annual growth rate (CAGR) of 40 per

cent and swell to US$ 107 billion by 2013.

A report by global consultancy firm, AT Kearney said "The consumer spending in India has

increased by an impressive 75 per cent in the last four years and will quadruple in the next 20

years." Moreover, India recently topped the Nielsen Global Consumer Confidence study,

conducted by Nielsen, a market research company. The biannual report revealed that Indians are

"the most optimistic lot globally who think that their country will be out of the economic

recession in the next twelve months."

According to the recent report by McKinsey & Company titled 'The Great Indian Bazaar,

Organized Retail Comes of Age in India', India's overall retail sector is likely to grow to US$

450 billion by 2015. Another McKinsey report 'The rise of Indian Consumer Market', estimates

that the Indian consumer market is likely to grow four times by 2025.

In a joint study recently conducted by ASSOCHAM and KPMG, the following findings were

revealed:

The total retail market size in India in 2012 was estimated at US$ 353 billion.

The annual growth of the retail market in India is expected to be around 8 per cent.

The total retail market size in India is likely to touch US$ 416 billion by 2010.

The present share of organized retail sector is estimated at 7 per cent.

The estimated annual growth of organized retail sector is 40 per cent.

The size of organized retail sector by 2013 is estimated to reach US$ 51 billion.

The estimated share of organized retail in total retail by 2013 is 12 per cent.

The investment into modern retailing formats over the coming 4-5 years is expected to be

around US$ 25-30 billion.

The great Indian consumer market is still going strong. The ETIG analysis carried out by the

Economic Times revealed that most mass consumer goods and service in India were not much

affected by the global economic slowdown. Despite the inflation experienced during the period,

the second-quarter results of leading 70 consumer-related firms revealed that their aggregate

revenues increased by 8.5 per cent during the September 2013 quarter over the same period in

2013. Even though this was a tad lower than the 9 per cent growth posted during the first quarter

of 2012-13, it was a lot higher than the 7 per cent registered during the previous three quarters

for these firms.

Growth Continues Apace

Despite the global economic slowdown, Indian retailers are still optimistic about the India

growth story. Speaking on the issue, Mr. Tarun Joshi, CEO and MD of Brandhouse Retails said

“Fashion retail has not been impacted in a big way. Not even 0.5 per cent of the working

population has been hit in India.” “The Indian economy is more stable than other economies

across the world and one must not confuse India with the rest of the world”, reiterated Mr.

Sandeep Kulhalli, V-P, Retail and Marketing, Tanishq.

With the 30-40 per cent drop in retail rentals, Indian retailers are a happy lot. In fact, retailers are

also foreseeing further drops in rentals in 2013 and they are optimistic about their expansion

plans for this year.

Retailers such as Spencer's Retail, Future Group, Shoppers Stop, Westside, Wills Lifestyle, Bata

India, and Raymond, have plenty of expansion plans for 2013.

The Future Group will focus on launching private labels with high profit margins in

segments like toothpaste, shampoo, and butter amongst others. According to Kishore

Biyani, MD and CEO of the Future Group, "Another thrust area will be entering into new

segments like rural retail and telecom products distribution. Through 'Aadhar' we can

ramp up rural retail, which is outside the 20 per cent of the population we have been

targeting so far."

Aggressive marketing efforts by leading retailers are on. Tanishq is planning a marketing

effort for plain gold along with the World Gold Council during the last quarter of 2012-

13. Similarly, Brandhouse Retails is planning a joint venture with a European private

apparel label for the next financial year, along with the introduction of a few more

international brands.

In West Bengal, leading retailers like the Future Group and Spencer's Retail, are

expanding and upgrading their present stores in 2013. Others like Wills Lifestyle, Turtle

Ltd, and Bisk Farm, are planning to set up new stores, particularly in the suburbs.

Auto company Mahindra & Mahindra (M&M) has made a quiet foray into the retail

sector with the soft launch of its specialty format Mom & Me to sell infant care and

maternity products. The company has launched two outlets in Ludhiana and Ahmedabad.

India has one of the largest number of retail outlets in the world. A report by Images Retail

estimates the number of operational malls to grow more than two-fold, to cross 412, with 205

million square feet by 2013, and a further 715 malls to be added by 2015, with major retail

developments even in tier-II and tier-III cities in India.

Even as the organized retail market is starting to take off, there is an associated surge in branded

discount outlets in India. Top realtors and local retail chains are developing malls in regional

boroughs, specifically to sell premium branded goods.

Rural Retail

Led by the rising purchasing power, changing consumption patterns, increased access to

information and communication technology and improving infrastructure, the rural retail market

is estimated to cross US$ 45.32 billion mark by 2013 and US$ 60.43 billion by 2015, according

to a study by Confederation of Indian Industry (CII) and YES Bank.

As per the National Council of Applied Economic Research (NCAER) reports, there are 720

million consumers across 6, 27,000 villages in rural India.

According to a report—India Retail Report 2013— by Images FR Research, "India's rural

markets offer a sea of opportunity for the retail sector. The urban-retail split in consumer

spending stands at 9:11, with rural India accounting for 55 per cent of private retail

consumption." Rural India accounted for almost half of the Indian retail market, which was

worth about US$ 273.64 billion in September 2013. With most of the retail markets getting

saturated in tier-I and tier-II cities, the next phase of growth is likely to be seen in the rural

markets.

Major domestic retailers like AV Birla, ITC, Godrej, Reliance and many others have already set

up farm linkages. Hariyali Kisan Bazaars (DCM) and Aadhars (Pantaloon-Godrej JV), Choupal

Sagars (ITC), Kisan Sansars (Tata), Reliance Fresh, and Naya Yug Bazaar, are established rural

retail hubs. Retail giants like Reliance, Spencer's and Subhiksha are also expanding in semi-

urban and rural areas.

Luxury Retail

By the next four to five years, India is expected to become a manufacturing hub for global luxury

brands, according to a FICCI-Yes Bank report on luxury brands. The report states that India has

the most rapidly growing high-net worth individuals (HNI) population in the world, and the

income level of consumers is expected to grow three times by 2025. The active age group (25–45

years) is likely to rise to a third of the population.

The report further states that the manufacturing business of luxury items in India can cross US$

500 million with global brands like Louis Vuitton and Frette looking at India as a manufacturing

base.

According to a survey done by AT Kearney, the Indian luxury retail market is estimated to touch

US$ 30 billion by 2015. Estimated to be the 12th largest in the world, it has been growing at the

rate of 25 per cent per annum.

Retail Franchising

Along with e-tailing, another perceptible trend in the growth of organised retail market has been

the concept of retail franchising. According to industry estimates, retail franchising has been

growing at the rate of 60 per cent in the last three years and is set to grow two-fold in the next

five years. And with immense potential seen in this segment, the US$ 4 billion-franchising

industry is likely to see an almost two-fold rise in the number of franchisees (from 0.2 million)

by 2010.

Innovative Retail Concepts

With the entry of new players and the market becoming increasingly competitive, retail players

are using innovative retail concepts to attract consumers.

With reduced commodity prices and the recent excise duty cuts, input costs have come down by

around 25-30 per cent in several categories. Subsequently, many value retailers have brought

down prices by over 15 per cent for various product categories to encourage greater

consumption. They are also stepping up their bargains and discount offers. Retailers like Big

Bazaar, D'Mart, Spencer's and Food Bazaar, among other retailers, have begun slashing prices in

product categories like apparel, home products, and foods (private labels). In fact, modern

retailers are now also selling private labels with consumers looking out for cheaper brands.

Retail companies are also developing and promoting their in-house brands. The Future Group

will be targeting profits worth US$ 2.05 billion from its in-house brands in FMCG, household

consumer durable and electronics and apparel categories by 2012. After the good performance of

its in-house consumer brands such as Tasty Treat, Fresh & Pure, DJ&C, Koreo, the company

now wants to extend it to additional categories like health & beauty, dairy, apparel, and

accessories.

Furthermore, Big Bazaar, the hypermarket chain of Future Group, is introducing Customer

Advisory Boards (CABs) as a measure for receiving valuable customer feedback.

With the US$ 6.31 billion pharma retailing becoming progressively more organised, players are

now looking at newer formats to attract more people to their stores. Pharmacy chains like

MedPlus and Goodlife have started providing health check-ups, diagnostic services, dental care

and medical counselling to its patients, besides selling pharma and wellness products.

Goodlife is tying up with the retail major, Future group, to set up these convenience clinics at

malls and in the high streets. MedPlus operates 15 such integrated clinics, and is planning to

open at least 50 such clinics by March 2013.

Innovative concepts in recreational retail are pulling people to malls, and big retail set-ups

account for a small but rapidly growing part of a multi-million dollar industry. There are a

variety of concepts like made-to-order pottery-painting, portrait-making, creating toons or

casting gold and silver impressions that have proliferated in malls or exist as standalone

ventures. In fact, a whole new concept of customised, leisure retail has opened up for the Indian

consumer

SWOT Analysis:

Strengths:

1. Retailing is a "Technology-intensive" industry. It is technology that will help the organized

retailers to score over the unorganized retailers. Successful organized retailers today work

closely with their vendors to predict consumer demand, shorten lead times, reduce inventory

holding and ultimately save cost. Example: Wal-Mart pioneered the concept of building

competitive advantage through Distribution & Information systems in the retailing industry.

They introduced two innovative logistics techniques – cross-docking and EDI (electronic data

interchange)

2. On an average a super market stocks up to 5000 SKU's against a few hundred stocked with an

average unorganized retailer. This will provide variety in products (required breadth & depth for

consumers)

3. As a consequence of high volumes, procurement will be direct from the Manufacturer. Hence,

merchandise can be offered at lower costs.

Weaknesses:

1. Less Conversion level: Despite high footfalls, the conversion ratio has been very low in the

retail outlets in a mall as compared to the standalone counter parts. It is seen that actual

conversions of footfall into sales for a mall outlet is approximately 20-25%. On the other hand, a

high street store of retail chain has an average conversion of about 50-60%. As a result, a stand-

alone store has a ROI (return on investment) of 25-30%; in contrast the retail majors are

experiencing a ROI of 8-10%

2. Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for

the mall outlets. Since the stand-alone outlets were established long time back, so they have

stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base.

Opportunities:

1. The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2013

making India one of the largest consumer markets of the world. The IMAGES-KSA projections

indicate that by 2015, India will have over 55 Crore people under the age of 20 - reflecting the

enormous opportunities possible in the kids and teens retailing segment.

2. Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the

rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2013.

3. Percolating down : In India it has been found out that the top 6 cities contribute for 66% of

total organized retailing. While the metros have already been exploited, the focus has now been

shifted towards the tier-II cities. The 'retail boom', 85% of which has so far been concentrated in

the metros is beginning to percolate down to these smaller cities and towns. The contribution of

these tier-II cities to total organized retailing sales is expected to grow to 20-25%.

4. Rural Retailing: India's huge rural population has caught the eye of the retailers looking for

new areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse

range of products from FMCG to electronic goods to automobiles, attempting to provide farmers

a one-stop destination for all their needs." Hariyali Bazar" is started by DCM Sriram group

which provides farm related inputs & services. The Godrej group has launched the concept of

'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed

along with the required knowledge for effective use of the same to the farmers. Pepsi on the

other hand is experimenting with the farmers of Punjab for growing the right quality of tomato

for its tomato purees & pastes.

Threats:

1. If the unorganized retailers are put together, they are parallel to a large supermarket with

no or little overheads, high degree of flexibility in merchandise, display, prices and

turnover.

2. Shopping Culture: Shopping culture has not developed in India as yet. Even now malls

are just a place to hang around with family and friends and largely confined to window-

shopping.

3. Cultural Variation leads to variation in merchandise in India at different geographical

locations.

Challenges in Retail:

The following are the key areas that may pose a threat to those retail companies that ignore the

impacts of giving less importance to manage their demand and supply: -

Forecasting and Inventory Management for JIT replenishments of products.

Peak Season Demand Handling.

Order Management in case of retailers with multiple outlets.

Warehouse Management in case of multiple outlets.

Introducing new products.

Handling variety of items.

Future Trend: Scope of 24hr retailing

The concept of 24hr. retailing in India has been present only in very limited formats like

the pharmaceuticals (Apollo) and fuel retail outlets (H.P, Reliance etc.) and the other

retail formats used to operate only till the early hours of the night. But because of the

changing lifestyles and the buying habits of the consumers the retailers have been

extending their operating hours till late nights.

Most of the Indian retail formats though capable of operating their formats round the

clock do not choose to do so because of the non feasibility of the idea at present taking in

conjunction the customers’ readiness. For instance if any of the hyper market or

supermarket is functioning during the night the retailer has to bear the extra costs of

electricity, labor and maintenance if the number of footfalls are less very low during the

late nights which otherwise would be profitable to him. Anyways, the shopping time of

the consumer is considerably increasing. Moreover, in India most of the retailing is all

about food and groceries. It might not be a rational prediction that all the consumers will

step into the retail outlet at midnights to buy food and groceries.

This problem can be overcome by implementing the idea in places which have a floating

population even during the nights like railway stations and bus stations. However with

the upcoming culture of malls and the changing lifestyles of the people one can design a

small part of the store or a mall for a new 24/7 retail format which consists of the

essential products like medicines, fruits and vegetables, groceries and some other FMCG

products and test market it. Once if the sales start showing some consistent positive

figures and if the crowd increases then the store can come in a bigger way to reach out to

their customers.

The other option for trying the concept of 24hr retailing is that the retailer can have a

mobile outlet which can place itself in the areas which have substantial night traffic for

the sales to happen. And once the people are to the 24hr shopping then the retail plans

can be altered accordingly.

FMCG SECTOR:

We regularly talk about things like butter, potato chips, toothpastes, razors, household care

products, packaged food and beverages, etc. But do we know under which category these things

come? They are called FMCGs. FMCG is an acronym for Fast Moving Consumer Goods,

which refer to things that we buy from local supermarkets on daily basis, the things that have

high turnover and are relatively cheaper.

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged

goods. Items in this category include all consumables (other than groceries/pulses) people buy at

regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste,

shaving products, shoe polish, packaged foodstuff, household accessories and extends to certain

electronic goods. These items are meant for daily of frequent consumption and have a high

return. A major portion of the monthly budget of each household is reserved for FMCG products.

The volume of money circulated in the economy against FMCG products is very high, as the

number of products the consumer use is very high. Competition in the FMCG sector is very high

resulting in high pressure on margins.

FMCG companies maintain intense distribution network. Companies spend a large portion of

their budget on maintaining distribution networks. New entrants who wish to bring their products

in the national level need to invest huge sums of money on promoting brands. Manufacturing can

be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper

imports. Also the market is more pressurized with presence of local players in rural areas and

state brands.

SCOPE OF THE SECTOR:

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the

economy. A well-established distribution network, intense competition between the organized

and unorganized segments characterize the sector. FMCG Sector is expected to grow by over

60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been

estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores

in 2013. Hair care, household care, male grooming, female hygiene, and the chocolates and

confectionery categories are estimated to be the fastest growing segments, says an HSBC report.

Though the sector witnessed a slower growth in 2012-2013, it has been able to make a fine

recovery since then. For example, Hindustan Levers Limited (HLL) has shown a healthy growth

in the last quarter. An estimated double-digit growth over the next few years shows that the good

times are likely to continue.

With the presence of 12.2% of the world population in the villages of India, the Indian rural

FMCG market is something no one can overlook. Increased focus on farm sector will boost rural

incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure

facilities will improve their supply chain. FMCG sector is also likely to benefit from growing

demand in the market. Because of the low per capita consumption for almost all the products in

the country, FMCG companies have immense possibilities for growth. And if the companies are

able to change the mindset of the consumers, i.e. if they are able to take the consumers to

branded products and offer new generation products, they would be able to generate higher

growth in the near future. However, the demand in urban areas would be the key growth driver

over the long term. Also, increase in the urban population, along with increase in income levels

and the availability of new categories, would help the urban areas maintain their position in

terms of consumption. At present, urban India accounts for 66% of total FMCG consumption,

with rural India accounting for the remaining 34%. However, rural India accounts for more than

40% consumption in major FMCG categories such as personal care, fabric care, and hot

beverages. In urban areas, home and personal care category, including skin care, household care

and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment,

it is estimated that processed foods, bakery, and dairy are long-term growth categories in both

rural and urban areas.

MARKET POTENTIALITY OF FMCG INDUSTRY

Some of the merits of FMCG industry, which made this industry as a potential one are low

operational cost, strong distribution networks, presence of renowned FMCG companies.

Population growth is another factor which is responsible behind the success of this industry

TOP 10 PLAYERS IN FMCG INDUSTRY

Table 1.1.

S. NO. Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestlé India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8 Britannia Industries

9. Procter & Gamble Hygiene and

Health Care

10. Marico Industries

INDIAN COMPETITIVENESS AND COMPARISON WITH THE WORLD MARKETS:

The following factors make India a competitive player in FMCG sector:

1. AVAILABILITY OF RAW MATERIAL:

Because of the diverse agro-climatic conditions in India, there is a large raw material

base suitable for food processing industries. India is the largest producer of livestock,

milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice,

wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are

required for the production of soaps and detergents. The availability of these raw

materials gives India the location advantage.

2. LABOUR COST COMPARISON: Fig 1.1.

Low cost labor gives India a competitive advantage. India's labor cost is amongst the

lowest in the world, after China & Indonesia. Low labor costs give the advantage of low

cost of production. Many MNC's have established their plants in India to outsource for

domestic and export markets.

IMPULSE BUYING:

Impulsive purchasing, generally defined as a consumer’s unplanned purchase which is an

important part of buyer behavior. It accounts for as much as 62% of supermarket sales and 80%

of all sales in certain product categories. Though impulsive purchasing has attracted attention in

consumer research, unfortunately there is a dearth of research on group-level determinants.

Marketers and retailers tend to exploit these impulses which are tied to the basic want for instant

gratification. For example, a shopper in a supermarket might not specifically be shopping for

confectionary. However, candy, gum, mints and chocolate are prominently displayed at the

checkout aisles to trigger impulse buyers to buy what they might not have otherwise considered.

Alternatively, impulse buying can occur when a potential consumer spots something related to a

product that stirs a particular passion in them, such as seeing a certain country's flag on the cover

of a certain DVD. Sale items are displayed in much the same fashion.

Impulse buying can also extend to so-called "big ticket" items such as automobiles and home

appliances. Automobiles in particular are as much an emotional purchase as a rational one. This

in turn leads auto dealers all over the world to market their products in a rapid-fire, almost

carnival-like manner designed to appeal to emotion over reason.

Impulse buying disrupts the normal decision making models in consumers' brains. The logical

sequence of the consumers' actions is replaced with an irrational moment of self gratification.

Impulse items appeal to the emotional side of consumers. Some items bought on impulse are not

considered functional or necessary in the consumers' lives. Preventing impulse buying involves

techniques such as setting budgets before shopping and taking time out before the purchase is

made.

A study published in the June 2008 issue of the Journal of Consumer Research suggests that

consumers are more susceptible to making impulsive purchases for one brand over another if

they are distracted while shopping. In the study, Central Michigan University Psychology

professor Bryan Gibson surveyed college students by measuring their preference for a variety of

soft drinks, including Coke and Pepsi. Results of Gibson's study found that implicit attitudes, or

those that people may not be conscious of and able to verbally express, predicted product choice

only when participants were presented with a cognitive task, suggesting that implicit product

attitudes may play a greater role in product choice when the consumer is distracted or making an

impulse purchase.

There was a study conducted by “Sales & Customer Service Department” of “Texas Agricultural

Extension Service Texas A&M University System College Station, Texas”. According to this

study the researchers find the tips to increase the impulsive sales of the flowers. The findings of

the study were:

Tips for Boosting Impulse Sales:

Creating variety in the department with frequent changes of display and movement of regularly

sold merchandise also entices customers. Recognizing items that typically make a minimal

contribution to sales and replacing them with items that create "sales appeal" increases the

likelihood of impulse sales. Displays that tie in with a national slogan or storewide theme

generate interest, as do displays that highlight special products and services.

Tip 1: use color to create original, eye-catching displays.

Tip 2: use themes to create interest in unusual products and renew interest in everyday items.

Tip 3: keep undecorated plants available to attract consumers who are buying for

themselves.

Tip 4: create displays that emphasize special products or services.

Tip 5: change stock and displays often so consumers are drawn into the department each

week.

Tip 6: be flexible enough to change an item or arrangement that isn¹t selling.

Tip 7: have a person on hand to provide information and assistance at all times.

Tip 8: create a friendly, comfortable atmosphere with accessible displays that encourage

browsing.

Tip 9: offer only quality plants and floral arrangements.

Tip 10: situate the department so that customers know where it is and can see it from most

areas of the store.

This research suggests that the presence of other persons in a purchasing situation is likely to

have a normative influence on the decision to make a purchase. The nature of this influence,

however, depends on both perceptions of the normative expectations of the individuals who exert

the influence and the motivation to comply with these expectations. Peers and family members,

are the two primary sources of social influence, often have different normative expectations.

Thus, it has been evaluated two factors that are likely to affect the motivation to conform to

social norms:

a) The inherent susceptibility to social influence and

b) The structure of the group

Group cohesiveness refers to the extent to which a group is attractive to its members. The theory

proposed by Fishbein and Ajzen helps conceptualize these effects. This theory assumes that

behavior is a multiplicative function of expectations for what others consider to be socially

desirable and the motivation to comply with these expectations.

COMPANY PROFILE:

In the present research paper, the study has been focused on Big Bazaar and Vishal Mega mart to

know the impulse buying behavior of the consumers. The brief profiles of two companies are as

follows:

Big bazaar is owned and operated by Future Bazaar India Ltd., a subsidiary of Pantaloon Retail

(India) Limited. As part of India’s largest retail chain, it enjoys the benefits of buying in bulk for

the entire group and keeps the margins low, so that customers get a great range of products at

great prices. Pantaloon Retail (India) Limited led by Kishore Biyani is the country's largest

retailer. It owns and operates multiple retail formats including Pantaloons, Big Bazaar, Food

Bazaar, Central, E-Zone, Fashion Station, Depot and many others. Pantaloon Retail was selected

as the Best of Best Retailers in Asia by Retail Asia-Pacific Top 500 magazine in 2013. Big

Bazaar was awarded the CNBC-Awaaz Consumer Awards in 2013 and the Readers' Digest

Platinum Brand Award 2013.

BIG BAZAAR

VISHAL MEGA MART

THE VISHAL GROUP:

What started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today a

conglomerate encompassing 183 showrooms in 110 cities / 24 states. India’s first hyper-market

has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi

this store boasts of the singe largest collection of goods and commodities sold under one roof in

India. Vishal Mega mart is India’s first hyper market which is having 126 showrooms in 83 cities

/ 20 states.

Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price

ranges. The showrooms have over 70,000 products range which fulfills all your household needs,

and can be catered to under one roof. It is covering about 2059292 lac sq. ft. in 18 states across

India. Each store gives you international quality goods and prices hard to match. The group had a

turnover of Rs. 1463.12 million for fiscal 2006, under the dynamic leadership of Mr. Ram

Chandra Aggarwal. The group had of turnover Rs 2884.43 million for fiscal 2013 and Rs.

6026.53 million for fiscal 2008. The Vishal stores offer affordable family fashion at prices to suit

every pocket. The group’s prime focus is on retailing. The Vishal stores offer affordable family

fashion at prices to suit every pocket.

.Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price

ranges. The showrooms have over 70,000 products range which fulfills all your household needs,

and can be catered to under one roof. It is covering about 29, 90, 146 sq. ft. in 24 states across

India. Each store gives you international quality goods and prices hard to match. The cost

benefits that is derived from the large central purchase of goods and services is passed on to the

consumer. The group’s philosophy is integration and towards this end has initiated backward

integration in the field of high fashion by setting up a state of the art manufacturing facility to

support its retail endeavors

CHAPTER-2

REVIEW OF

LITERARURE

REVIEW OF LITERATURE“Tirmizi Ali Muhammad, Rehman-Ur- Kashif, Saif Iqbal M.” This paper investigates the

relationship between independent variables which are shopping lifestyle of consumers, fashion

involvement of consumers, pre-decision stage and post-decision stage of consumer purchase

behavior with the attitudinal and behavioral aspects of impulse buying behavior. This study

attempts to explore the association exists between the variables involved, by tapping the

responses of 165 respondents from higher income group in the area of Rawalpindi and

Islamabad. The major findings of the study demonstrated an overall weak association of the set

of independent variables with the dependent variable but, the in-depth analysis found that pre-

decision stage of consumer purchase behavior is the only variable that resulted into strong

association with the impulse buying behavior. It’s true that young people more often get attracted

to products displayed on store shelves and has greater tendency of impulse buying behavior but

results of this paper showed no association of impulse buying in higher income group of young

people having prevalent impulse buying tendencies. This study reported new evidences in the

field of impulse buying behavior of consumers pertaining to the local markets of the twin citiesof

Pakistan.

“Cheng Hua-Ching, Chang Hsieh-Quan” This study proposes a social influence perspective to

compare the consumers’ impulse buying behaviors between Taiwan and China. The social

herding impulse buying factors are pursuing fashion, social norm, self- identity, and consumer

experience. We use binomial and multinomial logistic model to understand how consumers

influenced by social herding factors so that they became impulse buying behavior and estimate

the relationship between the frequency of impulse buying and herding factors. The results are the

consumers’ impulse buying influenced by social herding factors both in Taiwan and China. The

consumers’ impulse buying in China and Taiwan would be influenced from different social

herding factors. With the frequency of purchasing, consumers would be influenced from

different social herding factors.

“Gutierrez Ben Paul B.” The paper investigates factors influencing planned and impulse

purchases in six personal care product categories. This study utilizes a behavioral measure, rather

than an attitudinal measure of planned/impulse purchase. Data consist of 982 product purchases

of 502 consumers in urban Philippines. Results show that product category, purchase frequency,

brand comparison, and age are significant factors influencing planned and impulse purchases.

There is no relationship found between planned/impulse purchases and attitudinal shopping

values, surrogates for retail search strategies. Implications for retail management are identified.

“Kim Jiyeon” In this study author investigates that due to increasing competition and the

similarity of merchandise, retailers utilize visual merchandising to differentiate their offerings

from others’ as well as to improve the desirability of products. The purpose of this research is to

examine the relationship between college students’ apparel impulse buying behaviors and visual

merchandising. The result of the present study proves that there is a pivotal relationship between

college students’ impulse buying behaviors and two type of visual merchandising practices:

instore form/mannequin display and promotional signage. This study provides information as to

why visual merchandising should be considered an important component of a strategic marketing

plan in support of sales increase and positive store/company image. This study also provides

insights to retailers about types of visual merchandising that can influence consumers’ impulse

buying behaviors.

“Buendicho Patricia” The author identifies that Impulse purchasing has been a focus of

marketing research since the sixties. Researchers have attempted to explain impulse purchasing

with the sciences of psychology and even philosophy. Previous research has failed to come up

with a model for such, perhaps because of the intangibility of psychological traits of impulsivity

or the rationality in which philosophy has its roots in. Yet it is a prevalent phenomenon in the

daily life of the average consumer, you and me. Empirical studies have reached no consensus

either, and adding the confusion are the many definitions if impulse purchasing and many

products of different purposes and prices. There exists no model that serves as an effective

predictor of an impulse buy. It seems that the phenomenon of impulse purchasing has managed

to evade. This study focuses on explaining impulsive shopping through trends by testing the

validity of hypothetical relations between socioeconomic factors such as gender, wealth, age,

residence, present company and impulse shopping. Qualitatively, this is a case study in which we

explore what people purchase and their personal reasons.Quantitatively, we set out to find

predictors as we examine what makes Orlando shoppers open their wallets on the spot.

“Mai Tuyet Thi Nguyen, Kwon Jung, Loeb Sandra, Lantz Garold” The author proposes that

the economy transition in Vietnam has created many changes including the changes in consumer

values and the retail environment. This significantly affects consumer buying behaviors. Impulse

buying is very interesting and important consumer behavior that has attracted a lot of research

effort in the world. This paper examines several factors influencing the impulse buying behavior

of urban Vietnamese consumers. A consumer survey was conducted in two major cities of

Vietnam: Hanoi and Ho Chi Minh City. The results support the hypotheses that buying

impulsiveness, shopping enjoyment tendency, and level of modern-self are positively related to

impulse buying. However, the level of traditional-self perception is not found to be significantly

related to impulse buying behavior. Other findings regarding the impact of demographic

variables are also reported.

“Rook Dennis W.,Fisher, Robert J.” The author examines that although consumer researchers

have investigated impulse buying for nearly 50 years, almost no research has empirically

examined its normative aspects. This article presents conceptual and empirical evidence that

consumers' normative evaluations (i.e., judgments about the appropriateness of engaging in

impulse buying behavior) moderate the relationship between the impulse buying trait and

consumers' buying behaviors. Specifically, the relationship between the buying impulsiveness

trait and realted buying behaviors is significant only when consumers believe that acting on

impulse is appropriate. The findings from two studies across student and retail customer samples

converge and support the hypothesized moderating role of consumers' normative evaluations.

“Kollat, Willet,” defined the first categories of impulse purchases as follows: Brand decided;

category decided; product class decided; general need recognized (i.e. need a birthday gift);

general need not recognized. The latter has no planning whatsoever and is there fore recognized

as pure impulse purchasing (Bayley). The phenomenon regained attention in the eighties, where

the experiential aspect of impulse shopping itself began to be explored. Engel and Blackwell

defined impulse purchasing as “a buying action undertaken without a problem previously having

been recognized or buying intention been formed before entering the store.”(Engel.) This is the

most widely accepted definition of impulse shopping.

CHAPTER-3

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically.

TITLE - Factors affecting impulse buying behavior in FMCG sector with special reference to

Big Bazaar and Vishal Mega mart in Chandigarh & around region.

The research methodology was divided into two stages which involve two sources for collecting

the data in order to achieve the objective of project.

1. Collecting data regarding the potential customers from the existing outlets of Big Bazaar &

Vishal Mega mart.

2. Collecting the primary data directly with the customer with the help of the questionnaire

(Refer Annexure-1)

The research methodology was divided into two stages which involve two sources for collecting

the data in order to achieve the objective of project. We have taken into consideration a

hypothetical consumer impulse buying behavior model which has been mentioned in

conclusion and findings part.

RESEARCH DESIGN:

A research design is an arrangement of conditions for collection and analysis of data in a manner

that aims to combine relevance to the research purpose with economy in procedure. A good

research design has the characteristics viz problem definition, specific method of data collection

and analysis, a research design is purely and simply the frame work or planned for a study that

guides the collection and analysis of data. In this research Exploratory research method is

adopted.

Research design is the first and foremost step in methodology adopted and undertaking

research study. It is overall plan for the collection and analysis of data in the research project.

Thus it is an organized, systematic approach to be the formulation, implementation and control

of research project.

In fact a well planned and well balanced research design guards against collection of

irrelevant data and achieves the result in the best possible way.

Types of research design:

1. Exploratory research

2. Descriptive research

3. Causal research

For this kind of research we will proceed with exploratory research.

Exploratory research:

The major emphasis in exploratory research is on converting broad, vague problem statements

into small, precise sub-problem statements, which is done in order to formulate specific

hypothesis. The hypothesis is a statement that specifies, “How two or more variables are

related?”

Under some circumstances is exploratory study ideal.

To gain an insight into the problem.

To generate new product ideas.

To list all possibilities. Among the several possibilities, we need to prioritize the

possibilities which seem likely.

To develop hypothesis occasionally.

To establish priorities so that further research can be conducted.

In general, exploratory research is appropriate to any problem about which very little is

known. This research is the foundation for any future study.

Characteristics of Exploratory Research:

Exploratory research is flexible and very versatile.

For data collection structured forms are not used.

Experimentation is not a requirement.

Cost incurred to conduct study is low.

This type of research allows very wide exploration of views.

Research is interactive in capture and also it is open ended.

Exploratory Research Methods:

The quickest and the cheapest way to formulate a hypothesis in exploratory research are

by using any of the three methods:

Literature search

Experience survey

Focus group

SAMPLE DESIGN:

A sample design has been defined as a definite plan for obtaining a sample from a given

population. In this project Multi Stage Sampling is used because the total population was too

large and due to time constraint it was not practically possible to make a list of entire population.

At first stage I have divided sample area wise and then further divided it into income status so

that I can get correct and related information.

Sampling Unit: Vishal Mega mart and Big Bazaar Customers

Sampling Size: 100 potential customers

Sampling technique: Multistage sampling

Sampling area: Chandigarh and around region

Contact Method: Personal Contacts

OBJECTIVES OF STUDY

To understand and analyze various factors influencing sales promotion program in

retail industry.

To know the factors which influence the purchase decision.

To measure the sales promotion effectiveness in retail Industry.

To attracts the brand switchers and increases the sales volume.

To find out the buying behavior of the customers coming in to Big Bazaar.

To determine the current status of Big Bazaar.

To find out the customers response towards Big Bazaar.

To study the satisfaction level of customers in different attributes of Big Bazaar.

SCOPE OF THE STUDY

The scope of the study gives an idea to develop the sales promotion activities in retail

industry. It involves the evaluation of the present promotional activities. With the help of the

study we can give suggestion regarding sale promotion and services offered by the retail

industry. The study brings an awareness of the sales promotional activities by advertising in an

accepted media. The success and failure of a company is purely based on customer’s satisfaction.

Globalization and liberalization has opened up high competition among the business sector. In

order to retain the customers and also to attract the new customer the company has to concentrate

more ion service provided to the customer. It is through adviser that the customers are being

highly influenced. It is an important aspect in ensuring customer satisfaction and customer

retention. Therefore there arises the need for BIGBAZAAR to find out the customer satisfaction

it is this context that the present study is undertaken.

DATA COLLECTION:

Both primary data and secondary data have been used for the purpose of data collection.

Primary data:

Primary data has been collected by conducting survey with the help of a questionnaire.

Questionnaires were formed as to search the specific variable on which objectives depends. The

primary data is collected for the purpose of solving the problem at hand. In this study primary

data is collected for the descriptive research for the accurate description of the variables of the

problem. The data is a first hand data collected directly from the respondents.

Secondary data :

Secondary data on the other hand are those data which have already been collected by someone

else which have already been passed through the statistical process. The first step in data

collection approach is to look for secondary data. Secondary data is generally developed and

published for some purpose other than for helping to solve the problem at hand. In this study

secondary data is used for the exploratory research and secondary data includes data collected

from existing records and personal observation. The secondary sources used to collect the data

are:

Organisation Records,

Reference Books,

Articles in Newspapers ,

Magazines and Journals, Related Web sites

LIMITATIONS OF THE STUDY:

In attempt to make this project authentic and reliable, every possible aspect of the topic was kept

in mind. Nevertheless, despite of fact constraints were at play during the formulation of this

project. The main limitations are as follows:

Due to limitation of time only few people were selected for the study. So the sample of

consumers was not enough to generalize the findings of the study.

The main source of data for the study was primary data with the help of self-administered

questionnaires. Hence, the chances of unbiased information are less.

People were hesitant to disclose the true facts.

The chance of biased response can’t be eliminated though all necessary steps were taken

to avoid the same.

Every research is carried under some boundaries and this research is not an exception.

The opinion of the respondents may not represent the whole population.

Due to the limitations of time, a larger respondent base could not be covered and was

limited to a sample size of 100 respondents.

There might have been tendencies among the respondents to filter their responses under

the given conditions.

The customer’s opinion might have been biased and may not represent the whole

population of the city.

CHAPTER-4

DATA ANALYSIS &

INTERPRETATION

Data Analysis

The survey is done on big bazaar. Survey is done of 200 respondents of Delhi who come to visit

big bazaar. A specific questionnaire is prepared for the customers and data is obtained from them

by moving around big bazaar and personally interacting with them. The customers gave

valuable information regarding their consumption pattern in big bazaar. All informations are

collected and a proper analysis is done.

All the analysis and its interpretations are discussed below. Each of the analysis is done as per

the information obtained from the customers and a serious interpretation has been done to best of

my effort.

Income wise distribution of customers coming to big bazaar

Higher Income Group 5%

Middle Income Group 50%

Lower Income Group 20%

No Income Group 25%

INCOME GROUP

5%

50%

20%

25% Higher IncomeGroup

Middle IncomeGroup

Lower IncomeGroup

No Income Group

Analysis: The above diagram shows the distribution of income level of customers coming in to

big bazaar. Among the 200 respondents 50% of customers are of middle income level that is

between Rs20000 – 60000. Least number of customers visiting Big bazaar are the higher income

level people that constitute only 5%. The lower income level of people coming to big bazaar

constitutes of 20%. 25% of people belong to no income group which mostly consists of students.

Interpretation: Big bazaar is the hub of shopping for middle level income group people because

of its reasonable price on its each product category. The higher-level income group people don’t

prefer to do shopping in big bazaar, as it doesn’t deal with branded products. The higher-level

income group people are very status conscious and their psychology is such type that they don’t

prefer much to visit big bazaar, as it is a discounted store. The lower income group people come

in to big bazaar as they get goods at a discounted price. Hence big bazaar should include branded

products in its product category, which will encourage higher income group people to come in to

big bazaar. Probably not much of lower income group people come to big bazaar as they don’t

like to have any shopping experience rather they just go for near by store where they can get

their necessity goods. Even they purchase goods on a regular basis on a small quantity. So they

don’t have much interest to come to big bazaar and do shopping.

Purpose behind visiting big bazaar

Shopping 60

Outing 10

Both 30

PURPOSE

60%

10%

30%

Shopping

Outing

Both

Analysis: Out of the 200 respondents 60% of respondents visit big bazaar for shopping, 10% for

outing and 30% visit big bazaar for both the purposes.

Interpretation: From this I interpret that big bazaar is purely a shopping complex but it also

facilitates a certain kind of ambience and decorum to the people that they also visit it for the

purpose of outing. The infrastructure and ambience of big bazaar is so that people even like to go

there even also they don’t have to purchase anything. People enjoy doing shopping in big bazaar.

This is very nice for it as often customers purchase some goods while moving I the building.

Demand for other retail

outlets in a mall

Garment Outlet 40%

Footwear Outlet 15%

Food Court 20%

Entertainment 10%

Gift Corner 10%

Jewellery and Watches Store 5%

Analysis: The above graph shows that 40% of people visit garment outlet in a mall other than

that of big bazaar. 20% of people also prefer to visit food court in a mall other than big bazaar.

15% of the people go to footwear outlet in a mall other than big bazaar. 10% of people also go to

mall for entertainment purpose. Some people that are 15% each also visit gift corner store and

jewellery & watches store in a mall other than big bazaar.

Interpretation: From this analysis I come to know that most of the people tend to visit garment

outlets in a mall other than big bazaar as it has some exclusive branded outlets. People also go

for footwear stores as malls have branded footwear stores in it. People go for watching movies to

mall for entertainment. Yet a few people visits gift corners and jewellery stores in a mall. This is

of course a threat for big bazaar that it is not able to attract customers from other retail outlets

and retain them with it. Big bazaar should definitely include more of branded products in its

product category in order to bring in the customers of mall to it and retain them with it. It can

include some of the exclusive branded outlets of cloths and jewellery in it in order to attract the

brand choosy customers.

Products mostly purchased by customers in big bazaar

Clothes 60%

Grocery 70%

Food Item 50%

Leather Item 25%

Electronic Item 15%

Gift Item 10%

Any other Item 10%

0% 20% 40% 60% 80%

Clothes

Grocery

Food Item

Leather Item

Electronic Item

Gift Item

Any other Item

Series1

Analysis: This chart clearly indicates that the demand for grocery that is 70% is highest by the

customers followed by clothes rated 60%. The next highest demand is for food items that is 50%.

25% demand is for leather items in big bazaar. Electronic items holds 15% of demand and gift

items and other items has a demand of only 10% by the customers of big bazaar.

Interpretation: From this analysis I interpret that customers demand are high for grocery and

clothes followed by food items in big bazaar. Electronic items have a little demand by the

customers. Gift items and other items are not much in demand by the customers. I can interpret

that clothes, grocery and food items are the major products which hold maximum number of

customers. So big bazaar should maintain its low pricing and product quality to keep hold of the

customers and also it should keep more qualitative products of gift and leather items so that

people would go for more purchase of these items from it. Big bazaar has many local branded

products of grocery and cloths and it is successfully selling it. It should also include branded

products so that more sales can take place.

Expenditure pattern of customers coming in to big bazaar

Below 500 11%

500-1000 16%

1000-1500 22%

1500-2000 22%

More than 2000 29%

EXPENDITURE PATTERN

11%

16%

22%22%

29%Below 500500-1000

1000-15001500-2000

More than 2000

Analysis: We can clearly see from this graph that majority of the customers spend a lot in big

bazaar that is 29% of people spend more than Rs2000 in a single visit to big bazaar. Equal

number of people that is 22% of people each spend Rs 1000-1500 and Rs 1500-2000

respectively in a visit to big bazaar.16% of people spend Rs 500-1000 and only 11% of

customers are there who spends less than Rs500 in their visit to big bazaar.

Interpretation: From this I interpret that most of the customers purchase goods in bulk which

leads them to spend a lot. Volume sales are high in big bazaar. Customers tend to purchase more

goods from big bazaar as it provides goods at a discounted rate. Probably those persons who

spend more in a visit to big bazaar are purchasing on a monthly basis. Those customers who are

spending very less money that is below Rs 500 are mostly coming in just to move around big

bazaar and spend time. In the process they used to spend money on food items and also purchase

some products while roaming in it. Impulse buying behavior of customers comes in to play to a

large extent. More discounts shall be provided to people who does bulk purchase. This will

encourage people to purchase more products.

Time spent by customers in shopping in big bazaar

Less than half an hour 10%

Half an hour to 1 hour 30%

1 hour to 1 1/2 hours 50%

1 1/2 hours to 2 hours 40%

More than 2 hours 20%

0% 20% 40% 60%

Less than half an hour

Half an hour to 1 hour

1 hour to 1 1/2 hours

1 1/2 hours to 2 hours

More than 2 hours

Series1

Analysis: People spend a lot of time in shopping in big bazaar. Majority of the respondents said

that they spend at least 1 hour to 1 ½ hours in big bazaar. 40% respondents also said that they

spend 1 ½ hours to 2 hours in their visit to big bazaar. Only 10% of people said that they spend

very little time that is less than half an hour in big bazaar.

Interpretation: As per the given data I interpret that customers are very product choosy now a

days and that’s why they spend a lot of time in shopping in big bazaar. Probably customers might

even be spending more time in big bazaar as it provides a very nice ambience and atmosphere for

the people to shop in. Hence those persons who spend half an hour or less than half an hour in

big bazaar are those persons who just come to purchase limited products and come only because

of low pricing of products. People also spend much time in it but purchase very few goods. The

sales personnel should focus on the people who take long time in shopping and purchases a lot

and provide special kind of service to them as they are the major customers.

Comparison of footfalls in weekdays and weekends

FOOTFALLS

40%

60%

Weeks days

Weekends

Weeks days 40%

Weekends 60%

Analysis: The above graph shows that more number of people comes to big bazaar in weekends

than that of week days .40% of people visits big bazaar in weekdays where as 60% of people

visit big bazaar in weekends.

Interpretation: I can clearly interpret from this that most of the people tend to visit big bazaar in

weekends rather than that of week days. There are more footfalls in big bazaar in weekends than

that of week days. Though there is not much difference as 40% of people visit big bazaar in

week days hence in weekends the footfall increases by 10%. As people come more in weekends,

so big bazaar should keep it open for more time in weekends. The infrastructure can be changed

a bit in weekends so that customers can see more products clearly and can move around

comfortably. In order to bring in more number of customers in week days big bazaar should

provide some schemes in week days which will encourage people to come in to it in week days

also. Hence the crowd is more in weekends and big bazaar should avail more parking spaces for

its customers in weekends. It can make some temporary arrangement for parking every weekend.

It should not spend much money in advertising and displaying of products in weekdays rather it

should advertise and display products more in weekends as more number of people comes in

weekends.

Customer’s preference of timing to visit big bazaar

TIME PREFERENCE

42%

58%

10 A.M. - 6 P.M.

6 P.M. -10P.M.

10 A.M. - 6 P.M. 42%

6 P.M. -10P.M. 58%

Analysis: The above pie chart shows that most of the people prefer to visit big bazaar in evening

time than that of the daytime. Only 42% of people tend to visit big bazaar during daytime while

58% of people tend to visit big bazaar during evening time.

Interpretation: From the above analysis I interpret that evening time is the peak time for big

bazaar and daytime is the off peak time for big bazaar. There is more number of people found in

big bazaar during evening time than that of daytime. Probably more of products are being sold

during evening time in big bazaar than that of daytime. Big bazaar shall provide some special

offerings during daytime so that more people should come in during daytime. It could offer some

special kind of product in daytime, which will be not available during evening time. In this way

it will bring in more number of people during day time for getting the special kind of products

but along with that it will be able to sale other products as people do a lot of impulse buying at

big bazaar.

Comparison of customers purchasing with planned list of products and purchasing

products on an unplanned basis

Yes 80%

No 20%

PLANNED AND UNPLANNED BUYERS

80%

20%

Yes

No

Analysis: As shown in the graph out of my total respondents of 200, 80% of customers come to

big bazaar with a planned list of products. Only 20% of people come in to big bazaar without any

planned list of products to be purchased from big bazaar.

Interpretation: As per the data obtained from the customers of big bazaar I interpret that most

of the customers comes in to big bazaar with a planned list of products. Few customers come to

big bazaar without any planned list of products and purchases products depending on their

selection. These people basically come to the mall and hence get in to big bazaar. Depending on

the product category and brand and quality of products they purchases goods. Some couples

come to mall and go to food bazaar to have food together and to have chit chat among them. The

customer who comes with a planned list of products purchases more products than that of the

customers who comes without any planned list of products. So big bazaar should provide more

variety and essential goods so that more number of people should come in with a planned list of

products.

Brand preference of customers in big bazaar

Yes 10%

No 50%

Depends on category 40%

BRAND PREFERENCE

10%

50%

40%

Yes

No

Depends oncategory

Analysis: As seen in the above chart it is clearly known that only 10% of people come in to big

bazaar with a list of brands in advance. 50% of people completely deny that they don’t prepare in

list of brand in advance. 40% of people told that they prepare a list of brand depending on the

product category.

Interpretation: From this I interpret that customers don’t opt for much brand preference while

purchasing products in big bazaar. A few customers search for brands but depending on the

product category. Customers probably don’t decide for brands on products as there are not much

of known branded products available at big bazaar. On product categories like grocery and

clothes, big bazaar has many local branded products. Customers purchase a lot of these, as it’s

cheap in price even though its quality is not so good. As most of the customers belong to lower

class and middle class people, they purchase those local branded products as it gives them value

for money. Different products of the same category have different prices. Quality of products

varies with the price. This enables customization of products for various types of customers.

Customers search for brands mostly in apparel section. Some customers also pre decides the

brand on the local manufactured grocery and food products of big bazaar. Big bazaar should

include more of the branded products in its each category so that customers have more options to

choose among the brands. This will bring in more number of people to big bazaar, which will

definitely increase the sales.

Comparison of brand preference on different product category

0%5%

10%15%20%25%30%35%40%45%

Series1

Analysis: This graph shows that cloths and grocery are the only two items on which customers

mostly prefer the brands that is 40% each. 33% brand preference is on gift items and 25% is on

electronic items. Brand preference on leather items is 2% and 12% on any other item.

Cloths 40%

Grocery 40%

Gift Items 33%

Electronic Items 25%

Leather Items 2%

Any Other Item 12%

Interpretation: From this I interpret that some of the products brand are predecided in advance

and for some of the products customers don’t at all predecide any brand. As per electronic goods

are concerned customers predecide the brand as many branded electronic products are available

in big bazaar. The customers predecides brands on cloths and grocery most as big bazaar

produces much of local brands and also have some well known branded products of clothes with

it like flying machine jeans.

Mode of payment of customers in big bazaar

MODE OF PAYMENT

73%

21%

6%

Cash Payment

Credit Card

Debit Card

Cash Payment 73%

Credit Card 21%

Debit Card 6%

Analysis: As per my study is concerned, out of the total respondents 73% of people make cash

payment in big bazaar. 21% of them uses credit card as their mode of payment and 6% of the

people makes payment in big bazaar through their debit card.

Interpretation: As per the obtained data I interpret that maximum number of people makes cash

payment in big bazaar. A fraction of people uses their credit card for payment in big bazaar and a

very few people uses their debit card for payment. I can interpret that quick exchange of money

for goods is done in big bazaar as most of the people mode of payment is cash payment. Hence

some times big bazaar has to wait for a short time period as some of the customers make their

payment through credit and debit card.

Customers’ mode of transport to big bazaar

Hired Vehicle 10%

Two-wheeler 40%

Four-wheeler 50%

Any Other 0%

MODE OF TRANSPORT

10%

40%

50%

0%

Hired Vechle

Two-wheeler

Four-wheeler

Any Other

Analysis: Around 50% of the total respondent of 200 that is 100 people comes in to big bazaar

with their own four wheelers. The second majority of people consist of people riding two

wheeler and coming in to big bazaar. Only 10% of people of the total respondent visits big

bazaar on hired vehicles. None of the customers of the total respondent comes in any other mode

of transport.

Interpretation: From the above data I interpret that there are more number of four wheelers

coming found in big bazaar than that of two wheelers. People prefer more to go to big bazaar in

four wheelers than that of two wheelers. A few people are found who comes in to big bazaar

with a hire vehicle. Probably they might be the tourists.

Customers preference towards Kirana store

PREFERENCE TOWARDS KIRANA STORE

85%

15%

Yes

No

Analysis: Out of my total respondent of 200 customers, 85% of them says they go to their near

by kirana store and 15% said that they don’t at all go to any kirana store. This shows that

majority of people go to kirana store even though they visit big bazaar. But some customers are

there who never goes to any kirana store.

Interpretation: As per the given data I analyze that most number of people tend to purchase

goods from near by kirana store even if they come to big bazaar. I can conclude from this that a

kirana store is a competitor of big bazaar. Some customers never go for shopping in kirana store

as of it does not have much variety option available with it. Probably they are more interested in

having a shopping experience rather than to just go and purchase goods from kirana store.

Comparison of Big bazaar with any Kirana store

Price Service Variety Quality Convenience

Shopping

Experience Ambience

Big

bazaar 70 50 100 40 25 90 95

Kirana

store 30 50 0 60 75 10 5

70

50

100

4025

90 95

30

50

0

6075

10 50

20

40

60

80

100

120

Big bazaar

Kirana store

Analysis: The above graph shows the comparison of different factors between big bazaar and a

nearby kirana store. 70% of people say big bazaar provides goods at a cheaper price as compared

to that of a kirana store. 50% of people say big bazaar provides better service and another 50% of

them say kirana store provides better service. Each and every customer that is 100% agrees that

there are more variety of products available at big bazaar than that of kirana store. As per quality

of goods is concerned 60% of the customer say kirana store provides better qualitative products

while 40% of the customers say big bazaar also provides qualitative products. 75% people say it

is more convenient for them to go to a kirana store while 25% of them say going to big bazaar is

more convenient for them. 90% of respondents said it is a good shopping experience at big

bazaar while 105 of them said that they also have a good shopping experience at kirana store. As

per ambienc

e is concerned 95% of customers said big bazaar provides much nice ambience than big bazaar

while 5% of them said that ambience provided by kirana store is also equivalent to that of big

bazaar.

Interpretation: I interpreted from this that a kirana store is one of the competitor of big bazaar.

It is a threat for big bazaar as some of the attributes of a kirana store provides more satisfaction

to customers. Big bazaar should try to improve on each of its attributes and out compete the

kirana store so that it can convert the customers of kirana store to be the customers of big bazaar.

SWOT Analysis of Big bazaar

A swot analysis is done to know the strengths, weaknesses, opportunities and threats of any

company. This analysis will explain about the strengths, weaknesses, opportunities and threats of

big bazaar.

Strengths of Big bazaar

Large variety option

Cheap price

Huge customer Base

Volume sales

Weaknesses of Big bazaar

Lacks in branded products

Low in product quality

Unable to provide enough parking space to its customers

Threats for Big bazaar

Opening up of other discounted stores like Vishal mega mart

Convenience of customers to near by kirana stores

Availability of products in other retail outlets

Opportunities for Big bazaar

To open up more and more number of big bazaars in different cities of the

country.

To grab the rural market

To bring in the customers of other retail outlet by dealing with branded

products.

Add more products to its product category

Suggestions

Suggestions

Big bazaar should provide large parking space for its customers so that they can easily

park their vehicles.

Big bazaar should include more of branded products its product category so as to attract

the brand choosy people to come in to big bazaar.

It should make different cash counters for different customers. Cash counter and credit

card payment counter should be placed differently in order to reduce the rush and save

the customer’s time. This will be a kind of motivator for the customers of big bazaar.

The service of the sales person is needed to be improved. Personal care should be taken

by the sales person for the customers so that the customers feel good.

During the off peak hour’s big bazaar should provide some offers to its customers so that

people would be encouraged to come to big bazaar during off peak hours. The customers

who are present in the mall during the off peak hours of big bazaar will definitely go in to

big bazaar if surprise offers are made at that time.

Customer care department is needed to take proper care of customer complaints and

queries. The person sitting at the help desk of big bazaar should be able to provide all

necessary information to the customers whenever it is required.

The infrastructure is needed to be changed a bit during weekends as heavy crowd comes

in to big bazaar during those days.

Conclusion

Conclusion

Big bazaar is a major shopping complex for today’s customers. It is a place where customers find

variety of products at a reasonable price. Big bazaar has a good reputation of itself in the market.

It has positioned itself in the market as a discounted store. It holds a huge customer base. The

majority of customers belong to middle class family. The youth generation also likes shopping

and moving around big bazaar. Volume sales always take place in big bazaar. Impulse buying

behavior of customers comes in to play most of the times in big bazaar.

Big bazaar is a hypermarket as it provides various kinds of goods like apparels, grocery,

stationary, food items, electronic items, leather items, watches, jewellery, crockery, decorative

items, sport items, chocolates and many more. It competes with all the specialty stores of

different products which provide goods at a discounted rate all through the year. It holds a large

customer base and it seemed from the study that the customers are quite satisfied with big

bazaar. As of now there are 34 big bazaars in different cities of India, it seems that there is a vast

growth of big bazaar lying as customers demand is increasing for big bazaars.

Big bazaar is a hypermarket store where varieties of products are being sold on different product

category. It has emerged as a hub of shopping specially for middle class people.

Different types of products starting from a baby food to pizzas all are available under one roof.

In Delhi it is the middle class people who mostly do marketing from big bazaar. Even most of

the people do their monthly shopping from big bazaar.

People not only visit big bazaar to do shopping but also visit for outing purpose as it provides a

very nice ambience to its customers. As people go to malls they just tend to move around big

bazaar whether it is for shopping purpose or for outing purpose. Grocery, apparels and food

items are the products which are demanded most by the customers of Delhi in big bazaar. The

major drawback of big bazaar is that it lacks in providing enough parking space for its

customers. This may discourage the customers to come to big bazaar and shop as they face

difficulty in parking their vehicles. Even though some customers say that they don’t feel problem

in parking their vehicle, it is because of the parking space available to them by the mall. As it is

surveyed it seems that the biggest competitors of big bazaar are the kirana stores and the

discounted specialty stores like Vishal mega mart, Delhi bazaar etc.

CHAPTER-5

CONCLUSIONS

AND

SUGGESTION

CONCLUSIONS AND FINDINGS

Since Indian retail market is continuously increasing, people are purchasing goods as there is

increase of income of common people as well as change in tastes and preferences of consumers.

It is important for the retail players to be able to understand the different factors affecting the

extent in impulse buying behavior.

The factor analysis results indicate that Factor 1 (Table 7) which consists of Information

provided by customers - Advertisement of product in print and visual media, Various

promotional activities regarding product, Hording and pamphlets of product, Packaging of

product, Placing of product in store, Emotional attachment with product, Behavior of sales

person, Popularity of product, The person with whom you are going for shopping are the main

factors for impulse buying behavior which broadly defines about the Emotional appeal of

advertisements.

Factor 2 includes various schemes like (buy 1 get 1 free), Compatibility of another product with

the product you are buying, Influenced by other people, Kind of product which you are buying

Customer’s impulse buying decision causing a variance of 3.308.This shows that importance of

influence of other peoples on buying behavior of customers.

Factor 3, includes from Table-7 ,Any event organized by organization, Display of product in

store, Your perception about saving and investment, Traditions and customs, various festival

discounts on product, which in totally shows the direct impact product placement in the stores in

a retail outlet like Vishal Mega mart & Big Bazaar.

Factor 4 includes Price of product, your income status, and Standard of living, which clearly

defines the individual purchasing power.

Continuing with the next factor- Factors 5 includes Availability of product, Requirement of

product in festival season which shows that discount offers during festival seasons attract

customers for their impulse buying behavior.

While Factor 6 includes Discount offers regarding product, focusing on effective price and

discount strategies which is in brought by the retail players in order to attract there potential

customers.

At last Factor 7 includes Changing trends in society, special occasions which signifies that how

much today also people give preferences to the traditions and rituals during festival season that it

has created a emotional bond which results in impulse buying behavior. Overall, various internal

and external factors affects the impulse buying behavior of the consumer which is explained by

the above findings.

Fig 5.1.

IMPULSE BUYING BEHAVIOR MODEL

Although the study was conducted on a small population to find Impulse Buying Behavior of the

consumer In Vishal Mega mart and Big Bazaar, the finding of the studies can be generalized to

the whole population. It can be very comfortably inferred that:

1. Emotional appeal of advertisements

2. Brand image of the product

3. Product placement in the store

4. Income of the customer

5. Various festival seasonal discounts

6. Effective pricing and discount strategy

7. Emotional Bonding and usage of the product in festivals affect impulse buying behavior of the

consumer very strictly.

The Indian marketers’ has to go a long way to understand the impulse buying behavior as it is a

very subjective and its depends on multiple factors, but marketers can take advantage for this

behavior and in almost every product category impulse buying witness.

BIBLIOGRAPHY

References:

Alice Hanley and Mari S. Wilhelm (1999).Compulsive buying: An exploration into self

esteem and money attitudes. Journal of economic Psychology 135-18.

Anja Schaefer & Andrew Crane (June 2011). Addressing Sustainability and

Consumption. Journal of macro marketing .Vol 25, No.1, 76-92.

Ann Elizabeth Ericson, (2001) University of Iowa “Antecedents of older adolescent’s

credit card enhanced spending attitude and self reported financing behavior”.

Aviv Shoham and Maja Makovec Brencic (2008). Compulsive buying behavior. Journal

of consumer marketing, Vol 20, No.2.

Celia ray Hayhoe, Lauren Leach, & Pamela R. Turner (1999). Discriminating the number

of credit cards held by college students using credit and money attitudes. Journal of

Economic Psychology 20,643-656.

Gordon C.Winston (1987). A new approach to economic behavior. Journal of Economic

behaviour and organization, 8,567-585.

Hans Baumgartner, Jan Benedict & E.M. Steenkamp(1996). Exploratory consumer

buying behavior: conceptualization and measurement.International journal of Research in

marketing, 13,121-137.

Tirmizi Ali Muhammad, Rehman-Ur- Kashif, Saif Iqbal M.(2009). An Empirical Study

of Consumer Impulse Buying Behavior in Local Markets,Vol.28 No.4 , pp.522-532

Cheng Hua-Ching, Chang Hsieh-Quan(2006) Vol 12,No.2, 36-44

Gutierrez Ben Paul B.(2004) Vol.3, no.1(Sep 2001,pages 234-346)

Mai Tuyet Thi Nguyen, Kwon Jung, Loeb Sandra, Lantz Garold(2001) Vol29,no.6,(May

1999,pages:374-398)

Websites:

http://www.chinadaily.com.cn/en/doc/2003-09/25/content_267490.htm

http://www.indiainfoline.com/pefi/feat/cred.html

www.pantaloon.com

www.vishalmegamart.com

www.futuregroup.com

www.marketresarch.com

www.futurebytes.com

www.pantaloon.com

www.retailindia.com

ANNEXURE

QUESTIONNAIRE

Questionnaire prepared for customers of Big Bazaar1. How frequently do you visit Big Bazaar?

a) Weekly

b) Monthly

c) Quarterly

d) On a unplanned basis

2. Apart from Big Bazaar do you intend to visit any other retail outlet in a Mall?

a) Yes b) No

If yes then what are the other retail outlets do you intend to visit in a mall?

a) Garment Outlet

b) Footwear Outlet

c) Food Court

d) Entertainment

e) Gift Corner

f) Jewellery and Watches store

3. What is the purpose behind visiting Big Bazaar?

a) Shopping

b) Outing

c) Dating

4. What type of products do you mostly purchase in Big Bazaar?

a) Cloths

b) Grocery

c) Food Item

d) Leather Item

e) Electronic Item

f) Gift Item

g) Any other Item

5. On an average how much amount of money do you spend in a visit to Big Bazaar?

a) Below 500

b) 500 – 1000

c) 1000 – 1500

d) 1500 – 2000

e) More than 2000

6. How much time do you spend in a visit to Big Bazaar?

a) Less than half an hour

b) Half an hour to 1 hour

c) 1 hour to 1 ½ hours

d) 1 ½ hours to 2 hours

e) More than 2 hours

8. Which days of the week do you prefer to visit Big Bazaar?

a) Week days

b) Weekends

9. Which time of the day do you mostly prefer to visit Big Bazaar?

a) 10am – 6pm

b) 6pm – 10pm

10. Do you go with a planned list of products to be purchased from Big Bazaar?

a) Yes b) No

11.Do you prepare a list of brands in advance when you visit to Big Bazaar?

a) Yes b) No

c) Depends on category

12. In which categories of products do you pre-decide the brands?

a) Cloths

b) Leather Items

c) Electronic Items

d) Grocery

e) Gift Items

f) Any other Item

13. What is your mode of payment in Big Bazaar?

a) Cash payment b)Credit Card

14. What encourages you to visit Big Bazaar?

a. Price

b. Service

c. Ambience

d. Product Variety

e. Product Quality

f. Convenience

15. How would you rate the services of the sales personnel in Big Bazaar on a 1 – 5 scale?

a. Very good

b. Good

c. Ok

d. Poor

e. Very poor

16. What is your convenience to Big Bazaar?

a) Hired vehicle

b) Two-wheeler

c) Four-wheeler

d) Any other

e)

17. How is the parking space availability in Big Bazaar?

a) Less than adequate

b) Adequate

c) More than adequate

18. Do you go to Kirana store?

a) Yes b) No

1. Compare your nearest Kirana store with Big Bazaar on the following parameters.

i. Price

ii. Service

iii. Variety

iv. Quality

v. Convenience

vi. Shopping Experience

………………………………………………………………………………..

1. Name: -

2. Age: -

3. Sex: -

4. Location/Address: -

5. Qualification: -

6. Profession: -

7. What’s your monthly income?

a) Below 10,000

b) 10,000 – 20,000

c) 20,000 – 40,000

d) 40,000 – 60,000

e) More than 60,000