Consumer Behaviour

Retail-tainment : Malls : 

Retail-tainment : Malls Mohan Daroor MMM - 09 Jeetesh Khavle MMM - 16 Santosh Mishra MMM - 24 Sumit Patil MMM - 30 Vinit Shethia MMM - 35 Rekha Warwatte MMM - 38 Lala Lajpat Rai Institute of Management 2008-11

Retail Market : 

Retail Market • One of the fastest growing sectors in Indian economy • Retail industry is expected to grow 25-30% annually • Retail accounts for over 10 percent GDP • Around eight percent of employment

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Dynamic Industry • Indian retail industry valued at $300 bn • Expected to grow $427 bn in 2010 and $637 bn in 2015 • Only three percent of Indian retail is organised

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Malls cropping up • Several players entering the market • Many players have not tasted success • Malls, temples of consumerism are cropping up

Are returns coming : 

Are returns coming • Investors who rushed into the mall business happy? • Are the returns coming in? • Barring the ones that have hit big time • Space is the biggest investment for any retailer • Mall developer have to rethink about business priorities

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Understanding Buying Behaviour • Decision processes and acts of people involved in buying • Main factors affecting Buying Behaviour • Personal • Cultural • Social

Evolution of retail mall in India : 

Evolution of retail mall in India Rural Traditional Government Support Modern Weekly Markets Villages Fairs Kiranas Mom and Pop Khadi Stores Ration Shops Hyper/Super Department Stores Shopping malls

Orbiting Malad : 

Orbiting Malad • K Raheja developed Malad’s infrastructure • Inorbit and Hypercity changed the face of old Malad • Mindspace offered direct job access • Creating a top-notch employee environment and retail infrastructure

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World class shopping • HyperCITY, India’s first true hypermarket. • HyperCITY provides international experience • Customers can shop in comfort in a large, modern environment • Wide and contemporary range of innovative products • Sourced from both local and international markets

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Service Factor • 'Delivery on Time-Every Time is what underlines the service • ‘Hypercity Retail’ to establish 55 hypermarkets by 2015 • Offer exchange within 14 days of your purchase on original memo

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New Concepts • Architectural concepts have evolved • Old fashioned “shopping arcades” are giving way • Structurally more efficient and comfortable

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Multi-point system • Air-conditioned complexes • Traditional single point exit & entry has been converted to multi point system • Traditional staircases have been converted to escalators & capsule elevators

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Family Outing • Positioning of malls • Provision of a “One-Stop-Shop” • Mall provides an opportunity for a ‘family outing

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People visit different markets:

People visit malls with : 

People visit malls with

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The Way Ahead • Professional mall management practices • The use of the revenue share model in determining rent

Frequency of visiting malls : 

Frequency of visiting malls

Expenditure : 

Expenditure

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Discount season

Teen Mall Shopping Attitudes and Usage Study : 

Teen Mall Shopping Attitudes and Usage Study • Power of the mall as a medium to reach teens • The effect of the economy on the teen mall shopper • The amount of time and money teens are spending • How teens use the Internet and other technology

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Key findings (HyperCITY) • 95% of teen mall shoppers notice any form of advertising • 91% of teen mall shoppers notice poster display at mall • 68% of teen mall shoppers spend more than 2 hours at the mall

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Time Spent at The Mall • We found out that people were not happy with the safety standards of the mall • The safety standards included : - lack of information regarding Exit Points - lack of firefighting Equipments • We also found that people were not happy with the after sales service . • Small proportion of Consumers were not satisfied with the response from the working staff. • Customers were also unhappy with the long queue for bill clearance .

Other Activities : 

Other Activities • Shop at large department stores (93%), • Shop at specialty/boutique stores (90%), • Hang out or joking around and socializing with friends (85%) • Go to the movies (79%).

Demographic Differences : 

Demographic Differences • Girls- More focused on shopping and store selection • Girls-Visit clothing stores and Shoes/sneakers/footwear • Boys- More focused on food courts and entertainment • Boys- Visit CD/music, electronic stores often and clothing

Mall Advertising : 

Mall Advertising • Almost (95%) of mall shoppers noticed at least one form of mall advertising • Seven types of mall advertising were examined.

Teen Mall Spending : 

Teen Mall Spending • Over three out of four teen shoppers purchasing clothes at the mall • Beverages were a popular choice with • Footwear was purchased by 46% of teens • Music CD’s or DVD’s were bought by over four in ten

Suggestions for New Players : 

Suggestions for New Players • Teens spend significant amounts of time and money • Teen participate in a variety of activities • Majority of teens cite shopping, eating, socializing • Teens respond positively to mall advertising

Suggestions for New Players : 

Suggestions for New Players • Female likely to purchase clothing, beverage, beauty products • Male teen shoppers prefear for CD’s/DVD’s • While teens are aware about the economy • They have not changed their mall shopping and behaviour

Negative experience : 

Negative experience • We found out that people were not happy with the safety standards of the mall • The safety standards included : - lack of information regarding Exit Points - lack of firefighting Equipments • We also found that people were not happy with the after sales service . • Small proportion of Consumers were not satisfied with the response from the working staff. • Customers were also unhappy with the long queue for bill clearance .

Conclusion : 

Conclusion • The first and most objective of our study is comparative study of consumers buying behavior in retail mall. The study of consumer behavior is the most important factor for marketing of any goods and services. The consumer behavior suggest how individual, groups and organization select, buy, use and dispose of goods, services, ideas or experience to satisfy there needs and wants. It also clues for improving or introducing products or services, setting price, devising channels etc. • The marketers always look for emergent trends that suggest new marketing opportunities and here in India a lot of opportunities are available.