Total Project On Arambagh

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Consumer perception about buying products in Arambagh Food Mart in Bolpur Super Market

A Study Paper Submitted Towards the Partial Fulfillment of 3 Year BBA(H)Course Under West Bengal University of Technology

Paper Submitted By: Avik Mandal, BBA (H) 3rd Year (6th Sem), Roll no: 16350061022 2006-07

Reg No: 163205021001 of

Bengal Institute of Technology & Management, Santiniketan

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Acknowledgement I am thankful to all the people who were patient enough to share their valued time and provided their valuable perception about the topic & to all the employees of ARAMBAGH Food Mart who cooperated throughout my market survey. I am also thankful to Prof. A. K. Baksi, Assistant Professor, Department of Management, BITM, Santiniketan, without whom this project work would not have been completed. ……………………

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Signature Date:

Objectives of The Study My objective is, Consumers’ perception about buying products from ARAMBAGH Food Mart In Bolpur Super Market.

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Scope of this project: 1. It will give information to prospective customers. 2. It will help us gain independent knowledge about the customer perception of the outlet(Arambagh Food Mart). 3. The study can help the companies get additional research information. 4. It facilitates evaluation of brand name & customer satisfaction.

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Introduction

Executive Summary Retailing is emerging as a sunrise industry in India and is presently the largest employer after agriculture. In the year 2004, the size of Indian organized retail industry was Rs 28,000 Crores, which was only 3% of the total retailing market. Retailing in its present form started in the latter half of 20th Century in USA and Europe and today constitutes 20% of US GDP. It is the 3rd largest employer segment in USA. Organized retailing in India is projected to grow at the rate of 25%-30% p.a. and is estimated to reach an astounding Rs 1,00,000 Crores by 2010. The contribution of organized retail is expected to rise from 3% to 9% by the end of the decade. The projection for the current year ie 2005 is Rs 35,000 Crores. In India, it has been found out

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that the top 6 cities contribute for 66% of total organized retailing. With the metros 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%. In the year 2004, Rs 28,000 Crores organized retail industry had Clothing, Textiles & fashion accessories as the highest contributor (39%), where as health & beauty had a contribution of 2%. Food & Grocery contributed to 18% whereas Pharma Retail had a contribution of 2%.

INDIAN RETAIL SCENARIO OVERALL INDIA VIEW Area(`000 sq km) =3,300 Population (million) =1,095 Medium Age =25 years Government Type =Federal Republic

◊ Economic Overview : Indian is currently undergoing an economic revolution which is generating fast-paced changes and development.

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There is stable 8 % annual growth, Rising foreign exchange reserves of close to USD 140 billion, • Consistent and flowing Foreign Direct Investment(FDI) of close to UDS 8 billion, • Export surge in excess of 20%. • India ranks 1st for top international destination for retail investment. • U.S $ 350 billion retail market. • 96% market share is held by 12 million family run shops. • 4th largest economy in purchasing parity terms after US , china & Japan. • Retail sector will grow 35% in 2008. These altogethers enable the Indian economy to expand in coming years. •

◊ Investment eccentric : With a rapidly expanding consumer base (private consumption currently account for 61% of India’s GDP) and stabilized consumer price index rate 4.2%. India is now preferred investment destination and has surpassed the U.S to become the second most favourable destination for FDI, in the world after China.

GDP and CPI 2002

2003

2004

2005

GDP 3.6 Growth(%)

8.3

8.5

8.5

CPI(%)

3.8

3.8

4.2

4.3

Source : EIU, July 2006

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FOREIGN DIRECT INVESTMENTS: Foreign direct investment is opened to single brand retailers. Steady increase in FDI 2002

2003

2004

2005

FDI (INR m)

273530.2

201379.6

248062.4

295293.4

FDI (FDI bn)

5.6

4.3

5.5

6.7

ORGANISE SECTOR FACTS  Virgin territory for organized retail investment.  2-6% of total retail.  Expected to increase to 15-18% by 2011.  Food retailing is expected to grow to US$ 1.6 billion.  Apparel to increase by 9.5% by 2010.

RETAIL SECTOR  Street cards .  Corner shops.  Open air market “ MANDIS” ORGANISE SECTOR  Hyper market  Super market  Specialty chain stores.

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 Factory outlets  Malls

Company Profile Arambagh’s Foodmart was started in the year 2000, in the concept of convenience stores of average 600-1000 sqft area, with USP’s of good quality, below MRP prices and location convenience. From 1 shop, the division has expanded to 24 shops, out of which 18 are in Kolkata and 6 in other cities of West Bengal. The shops sell fast moving consumer goods like grocery, toiletry, confectionery, frozen meat and of course the company’s own product Arambagh’s Chicken. The food marts also sell the company’s own

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10 brand of grocery which contributes to approximately 40% of its turnover. The approximate annual turnover of the division is around Rs 28 crore and it has a market share of around 30% in organized retail in Kolkata. There are around 250 employees in the division. All the shops are managed by the company in rented or owned premises, there are currently no franchisees.

Organizational Profile The foundation stone of Arambagh Hatcheries Limited was laid by its founder chairman Late Balai Krishna Roy, who not only established Arambagh Hatcheries in 1973 but was one of the pioneer of B.K. Roy group of companies. Due to his patronage, dynamism and vision, starting in a sub-divisional town of West Bengal the company was able to reach at international market. After his demise Sri. Prasun Kumar Roy took over the leadership of the company, and at present the company’s turnover has reached to rupees two billions. For the last 33 years the company is actively engaged in poultry breeding, poultry farming, production of poultry and animal feed, export of day old chicks, hatchable eggs, feed and poultry machinery. With the passage of time the company along with its general line of business has diversified into processing and marketing chicken meat and meat products including ready-to eat cooked chicken meat items directly to the consumers through more than 150 well equipped and hygienically sophisticated retail outlets within and outside the city of Kolkata and in other parts of West Bengal and neighboring states. The company has also diversified into operating food marts and retail marketing of

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11 consumer food items and other consumer goods including groceries, confectioneries & toiletries in Kolkata and other parts of West Bengal. From broiler breeding to state-of-the-art chicken processing to juicy and tasty chicken products and convenience stores, the arambagh brand is a house-hold name in the eastern part of India. * 7 broiler breeding farms, having total capacity of 600,000 breeders in ultra modern facilities producing 6 million hatching eggs a month. * 8 hatcheries producing 4 million broiler chicks a month. * 4 feed plants producing 600 tonnes of feed everyday. * 2 million chickens reared monthly for wet market sale and processing. * State of the art chicken processing plant of capacity 5000 broiler per hour. * Arambagh's chicken the most popular branded chicken in eastern India, sold raw, fresh, ready-to-cook, and, ready-to-eat items, through over 150 retail outlets to direct consumers. * The immensely popular Arambagh's Foodmart, 25 convenience stores is one step ahead with over 6000 SKUs catering to wide requirements of consumers. * Coffee shop cum restaurant chain Adda Bites is an unique blend of adda over coffee and family dining. Management Team

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12 Board of Directors Smt. Namita Roy Chairperson Sri. Prasun Kumar Roy Managing Director Sri. Nihar Ranjan Chakravarty Director Smt. Bishakha Datta Director Smt. Jaya Roy Director

The company was promoted by Late Balai Krishna Roy. Sri. Prasun Kumar Roy, the managing director of the company, holds master degree in Bio-Chemistry and specialization in nutrition from Calcutta University and possessing more than 33 years of rich and varied experience in the fields of agriculture, poultry breeding, hatchery, animal feeds, marketing, horticultural products, administration, management and finance. His wide knowledge, innovative ideas and strong man management capabilities are well known in the domestic and international parlance. The company is a board-managed one where day-to-day activities are looked after by Sri. Roy assisted by a team of professionally qualified and seasoned employees as per details appended below

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13 The Key Personnel Name Designation

Sri. Debabrata Thakurta Company Secretary

Sri. S.C. Chatterjee Vice President –Finance

Sri. Sri. A.K. Mitra General Manager –HRD

Sri. Abhijit Nandi General Manager -Finance

Mrs.Biyas Roy Senior Manager- Corporate Affairs.

Sri. S.K. Ghosh Executive-Advisor

Sri. Basudev Bhanja Dy. Chief Accountant

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Company Overview Arambagh Hatcheries Limited is a multi-dimensional food based company, incorporated in the year 1973 with primary interest in chicken and chicken related products. In 32 yrs, it is a Rupees 2 billion turnover company with over 3000 employees. Business activities of the company has not only been concentrated in the State of West Bengal but also in the states of Bihar, Jharkhand, Assam, Uttar Pradesh, Andhra Pradesh and Karnataka. With the passage of time Arambagh’s chicken has reached abroad and which has been highly acclaimed by all its consumers.

CONSUMER PURCHASE BEHAVIOR Introduction: Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption The term ‘customer’ is typically used to refer to someone who regularly purchases from a store or company. & the term ‘consumer’ generally refers to anyone engaging in activities like evaluating, acquiring, using or disposing of goods & services. Theoretically consumers are end users and customers are buyers but this definition brings about some degree of ambiguity. Therefore we define consumers as those who seek products to consume and satisfy they needs. Based on this definition,

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consumers are the most important element understanding their behavior makes really behavior is seen to involve a mental decision physical activity that take place over time. It role in our lives.

in marketing and sense. Consumer process as well as plays a significant

By studying consumer behavior marketers being able to understand different behavior of various consumers toward different products and brand .then they can set proper set of strategies in marketing mix policies to target and serve consumers in different segments which in return would result in consumer satisfaction , consumers satisfaction will undoubtedly lead to consumer loyalty and constant profit for company.

Purpose: Consumers are often studied because certain decisions are significantly affected by their behavior. For this reason, consumer behavior is said to be an applied discipline. The micro prospective purpose involves understanding consumers for the purpose of helping a firm or organization accomplish its objectives. On the macro or aggregate level we know that consumers collectively influence economic social conditions within an entire society. It provides an insight into aggregate economic & social trends & can perhaps even predict such trends. In addition, this understanding may ways to increase the efficiency of the market system & improve the well being of people in society.

The factors which influence the consumer purchase behavior are:

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1. Cultural Factors: Culture is the fundamental determinant of a person’s want & behavior. Culture, sub-culture, & social class are particularly important influences on consumer purchase behavior. Subcultures provide more specific identification of their members. It includes nationalities, religions, and geographical regions. Companies often design specialized marketing programs to serve them. Social class show distinct product & brand preference in many areas. 2. Social factors: A consumer’s behavior is influenced by such social factors as reference groups, family, & social roles & status. People are significantly influenced by their reference groups which have direct or indirect influence on his/her behavior. Family is the most important consumer buying organization in society, & family members constitute most influential primary reference group. Social role consists of activities a person is expected to perform, & people choose products that reflect & communicate their role & status in society. 3. Personal factors: Personal factors include the consumers’ age & stage in life cycle, occupation and economic circumstances; personality & self-concept; and life-style & values. Because many of these characteristics have a very direct impact on consumer behavior, it is important for marketers to follow them closely. 4. Psychological factors: A set of psychological processes combine with certain consumer characteristics to result in decision process & purchase decision. Four key psychological processesmotivation, perception, learning & memory- fundamentally influence consumers’ purchase behavior. The marketer’s task is to understand the psychological factors.

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FACTORS PROCESS

INFLUENCING

CONSUMER

BUYING

Abraham Maslow sought to explain the consumer purchase behavior. He tried to explain why people are driven by particular needs at particular time. Human needs are arranged in hierarchy, from most pressing to least pressing. In order of importance, they are psychological needs, safety needs, social needs, esteem needs & self actualization needs. People will try to satisfy their most important needs first. When a person succeeds in satisfying an important need, he or she will then try to satisfy the next most important need. Maslow’s theory helps us to understand consumer purchase behavior & helps the marketers to make strategies that fit into the plan.

Hierarchy of needs

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The Purchase Decision Process: The Five Stage Model Marketing managers have developed a ‘stage model’ of the buying decision process. Consumer’s passes through five stages: Problem recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior. Clearly the buying process starts long before the actual purchase & has long consequences long afterward.

Purchase Decision Process

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7. METHODOLOGY OF STUDY a. Procedure: The procedure that followed enlisted below: Studying the product Decision on objective needed to be work on. Developing Survey instruments Getting questionnaire filled through interacting with different Persons who visits Arambagh Finally analyzing the data of various areas and trying to study about various influence factors. b. Process adopted: Gaining knowledge about the Arambagh:

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20 At first I collected knowledge about Arambagh which proved useful while developing the questionnaire. Steps in the Development of the Survey Instruments The main instruments required for survey was a well-developed questionnaire. The questionnaire development took place in a series of steps as described below:

Step 1

Research objectives been transformed into information objectives.

Step 2

The appropriate data collection methods been determined

Step 3

The information required by each objective is being ermined.

Step Step 45

Specific Questions/Scale Measurement format is Question/Scale Measurements been evaluated. developed.

Step 6

Step 7

Research objectives been transformed into information objectives.

The number of information needed is being Research objectives been transformed into determined. information objectives.

The questionnaire and layout been evaluated.

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Step 8

Revise the questionnaire layout if needed. Step 9

The Questionnaire format been finalized.

Step1 0

c. Consumer Survey: The survey is important tool as clear perception of people about the shop can be estimated and known.. It was very useful in knowing about the requirements of the people. d. Research Design: A two stage Research been conducted: •

Secondary Research:

Collection of data from websites & books & analyzing the data collected. •

Primary Research:

A Primary Research been conducted: The questionnaire was prepared for the companies and following areas covered: Consumer profile. Consumer satisfaction level of consumers. Reason for the selection of specific shop. e. Sampling Plan:

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Elements: The target population of the study included the general population above the age of 20 yrs Sampling design and sampling unit are as follows: Target population: Adults meeting qualifications-over 20 years, working class, businessman, Student, Job holders Sampling frame- People who visits Arambagh shop in Bolpur. Sample size: 50 Through this we would focus on the following area; To identify critical factor (internal and external) which influence the buying behavior of individual? Why people chooses ‘Arambagh’ rather than the others. . To know about mindset of people. To analysis of customer perception of the quality of product, so that to take steps to maximization of customer satisfaction.

DATA COLLECTIONS a. Data Collection Plan: The first of Research consisted of secondary data search from the following sources: Websites Books For the conclusive research, questionnaires been developed on basis of secondary data to gather information on the research objective. I conducted a study to test these questionnaires. The final draft of the questionnaire (see Appendix) was then prepared on basis of the observations from the study. These then finally filled by 50 consumers, for the conclusive study. Finally, the collected data fed into the MS EXCEL, MS WORD using bar diagrams. b. Types of Primary Data collected: 1) Demographic /Socioeconomic Characteristics: Demographic and socioeconomic characteristics sometimes called “states of being” in that they represent the type of people. The factors

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23 on which we are working are age, sex and occupation. Monthly income is also an important parameter but it is difficult to verify. 2) Attitudes/Opinions: Through the questionnaire we have tried to get hold of individual’s preference, inclination and requirement from the products that Arambagh delivers to the customer. Attitude is an important notion in the marketing literature, since generally it is previewed that the attitudes are relating to the behavior of individual. 3) Awareness/Knowledge: They are used in marketing research refers to what respondents do or do not know about the shop or the organization. 4) Motivation: Through questionnaire have tried to find the hidden need or want of an individual and have tried to find out that why people choose Arambagh. 5) Behavior: Behavior concerns what subjects have done or are doing. Through made questionnaire I have tried to find out the behavior of the individuals regarding the product and their responses; What do you think about Arambagh? What differs Arambagh from others? Thus, it helps to draw a comparison between the Purchase and the observed behavior of the individuals.

Data Analysis & Findings Q.1 Familiarity of the people with the brand name ‘ARAMBAGH’: Table 1

Yes 50

No 0

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50 40 30 20 10 0

Yes

No

Findings: The above figure shows that every person (100%) is familiar to the brand name ‘ARAMBAGH’. Q.2 The type of identity familiar to people: Table 2

Chicken item seller 11

Food Mart 24

Both 15

25 20 15 10 5 0 Chicken item seller

Food Mart

Both

Findings: Above figure shows that 11(22%) people know ARAMBAGH as a chicken item seller, 24(48%) people know as a Food Mart. 15(30%) people says that they know ARAMBAGH for both. Q.3 Are the customers’ satisfied with the products available here: Table 3

Yes

No

Can’t say

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42

2

6

50 40 30 20 10 0

Yes

No

Can’t say

Findings: 42(84%) person says that they are satisfied with the product available here, 2(4%) persons says that they are’ not, & 6(12%) persons can’t say about that. Q.4 The type of product people normally buys here: Table 4

FMCG product 5

Grocery product 3

Chicken Product 13

All 29

30 25 20 15 10 5 0

FMCG product

Grocery product

Chicken Product

All

Findings: Among the 50 person surveyed, 5(10%) person says that they buy FMCG products here, 3(6%) person says they buy grocery product,

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13(26%) person says they buy chicken products, & 29(58%) says that they buy all the items here. Q.5 Price of the products available here: Table 5

High 13

Low 3

Average 34

35 30 25 20 15 10 5 0 High

Low

Average

Findings: 13(26%) people says that price of the products available here is high, 3(6%) person says that it is low & 34(68%) person says it is average. Q.6 Quality of products available here: Table 6

Good 32

Poor 1

Satisfactory 17

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35 30 25 20 15 10 5 0

Good

Poor

Satisfactory

Findings: 32(64%) person says that quality of the goods is good, 1(2%) person says that it is high & 17(34%) person says that it is satisfactory. Q.7 Customer satisfaction level is: Table 7

good 26

Poor 0

Average 24

30 25 20 15 10 5 0

good

Poor

Average

Findings: 52 %(26) people says that customer satisfaction level is good, 48%(24) people says it is average but nobody says it is poor. Q.8 Does the customer get all of the required items here: Table 8

Yes 33

No 17

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35 30 25 20 15 10 5 0 Yes

No

Findings: 66% (33) people says that they found all the required products here & 34%(17) says no. Q.9 The stock level of the items available here: Table 9

Good

Bad

Average

22

0

28

30 25 20 15 10 5 0

Good

Bad

Average

Findings: 44 %(22) people says good about the stock level of items & 56%(28) people says it is average. Q10 Does the customer get any kind of offers /discounts on buying products:

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Yes 40

No 10 40 35 30 25 20 15 10 5 0

Yes

No

Findings: 80% (40) people says that they get offers & discounts on buying products here, & 20%(10) people says no. Q.11 How much a customer buy on an average from ARAMBAGH: Table 11

Below 500 20

500-1000 26

Above 1000 4

30 25 20 15 10 5 0 Below 500

500-1000

Above 1000

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Findings: The survey finds out that 40%(20) people buy less than 500 Rupees, 52%(26) people buys more than 500 but less than 1000 & 8%(4) people buy more than 1000 rupees. Q.12 How frequently does a customer visit the shop: Table 12

Once in a week 36

Twice in a week 10

More than twice 4

40 35 30 25 20 15 10 5 0 Once in a week

Twice in a week

More than twice

Findings: 72%(36) people says that they visits the shop once in a week, 20%(10) people says they visit twice in a week, 8%(4) people says that they visit more than twice in a week. Q.13 Are the customer eager to return to the shop: Table 13

Yes 50

No 0

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50 40 30 20 10 0

Yes

No

Findings: 100%(50) people is eager to return to this shop.

Q.14 Characteristics of ARAMBAGH which are different from others: 1. It is a departmental store offering items of day to day use under a roof. 2. It offers good quality of products in fair price, in some cases, below the MRP, a matchless balance between the both. 3. It has a very good stock of products,& a large no of alternatives. 4. Products are aimed towards the middle income group.

Limitations Time was a limiting factor for the study in addition to cost and coverage of survey area which compelled me to limit my survey.

Conclusion

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After considering the graphical analysis we can draw a conclusion that consumers are satisfied with the ARAMBAGH Food Mart & they are eager to return to the shop & want to buy products here. Price of the products is very much competitive in the market but in some cases it is much lower than the market price. For this reason we can say that ARAMBAGH Food Mart in Bolpur Super Market is a shop offering every type of FMCG, grocery product, chicken product & other goods in a single roof. Consumers are very much satisfied on buying products here.

Reference Books; Marketing Management, By Philip Kotler. Consumer Purchase Behavior, By Loudon. Class Notes

Web site; www.google.com www.wikipedia.com www.pdfcoke.com www.marketresearch.com www.arambagh.com/foodmart

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Appendix Some other initiatives by Arambagh:

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34 The recent venture of Arambagh’s has been down the food line again – in April’06 it has opened the first of its coffee shop & restaurant chain under the brand name Adda Bites. The concept is unique in the city – it is a blend of coffee shop and hang-out place for young crowd as well as a restaurant serving chinese and continental food. As the name suggests, it is a place for ‘Adda’ or pass-time for college and school groups and young couples seeking solitude. But don’t be disappointed if you are looking for a place to grab a bite for lunch or want to take your family out for dinner – check out the continental menu in Adda Bites – you would want to come back soon !! Food and drink range from varieties of coffee, mocktails, ice-creams, thai and chinese combo meals, soup, snacks and continental delicacies. What more do you want ! An average lunch for 2 costs as modest as Rs 300. With the first shop in Kasba, near Ruby General Hospital, the chain has expanded to 4 shops today. The recent one, opened in Santoshpur is a combined format with foodmart and adda bites together under the same roof. So sit, eat and staff your bags for all your needsat destination Arambagh's !!!

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The company started selling processed chicken in 1997 and a semi-automated processing plant of 1000 birds/hour capacity was set up in the year 2000 , expanded to 5000 birds/hour capacity in 2004, with further processing lines specially for preparation of special cuts including boneless Kakugiri and Yakitori for the Japanese market. Processed chicken is sold through around 140 retail outlets in and around West Bengal, including exclusive chicken shops and

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foodmarts. Processed chicken is also supplied to institutions like hotels, restaurants, airlines, railways, consulates (namely Japan) etc. and is exported to the middle east and CIS countries. Ready-to-eat roast and fried food is also prepared and sold through the retail outlets. The approximate annual turnover of the chicken division is Rs 170 million.

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