ANALYSIS OF THE PERFORMANCE OF IN&OUT CONVENIENCE STORES WITH SPECIAL REFERENCE TO BHARAT PETROLEUM CORPORATION LIMITED

BY FIROZ.T.V. (Reg No: 35104095) FINAL PROJECT REPORT SUBMITTED In Partial fulfillment of the requirements For the award of the degree

OF MASTER OF BUSINESS ADMINISTRATION SRM SCHOOL OF MANAGEMENT SRM ENGINEERING COLLEGE SRM INSTITUTE OF SCIENCE AND TECHNOLOGY (DEEMED UNIVERSITY) KATTANKULATHUR MAY 2006

BONAFIDE CERTIFICATE

Certified that this project report titled ANALYSIS OF THE PERFORMANCE OF IN&OUT CONVENIENCE STORES, with special reference to BHARAT PETROLEUM CORPORATION LIMITED is an original work done by Mr. FIROZ.T.V. (Reg.No 35104095) of FOURTH Semester MBA, SRM School of Management, SRM Institute of Science and Technology, (Deemed University) Kattankulathur during the academic year 2006, who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported here in does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other certificate.

Faculty Guide

HOD

Internal Examiner

External Examiner

PLACE: KATTANKULATHUR DATE: 17/05/2006

ABSTRACT With the evolution of organised retail in India, it is important that Indian retailers re-invent themselves. So far, Indian retailers have differentiated themselves on product and service. However, these alone will not be sufficient for differentiating the store. While product differentiation would play a significant role, the gap will diminish due to ease in global sourcing for all competitors. Experience in terms of the 'Look & Feel' of the store would be important, but again, the gap will diminish over time. Superior Price - Value offerings would continue to be a major differentiator. Additionally, convenience of "proximity" would emerge soon as a differentiator and initiate opening of small footprint stores (as chains) shall make a major Impact even in India. The project work entitle, Analysis of performance of the in&out convenience store, is an outcome of three month study. This project is done to analyse the present store performance, to know the response of the customer about future facilities like ticketing for bus, train, flight, hotels and movies and also to know the feed back from the customers of the over all facilities provided by the store. Both primary and secondary data were used for this study. Primary data is collected through questionnaire method. A total sample of 100 customers was collected. The secondary data is mainly collected from websites, annual reports journals and magazines. On the basis of analysis it was found that customers had a better response to the service provided and also to the future facilities of convenience store.

This research was carried out in the in&out stores in Mogappair T. Nagar, Kodambakkam and Egmor. The total sample size was 100. The customers were given a structured questionnaire and based on their responses the data analysis had been done.

DECLARATION

I, FIROZ.T.V, a bona fide student of final year MBA, SRM INSTITUTE OF MANAGEMENT STUDIES, SRM Engineering College, here by declare that the project entitled Market survey on ANALYSIS OF THE PERFORMANCE OF IN&OUT CONVENIENCE STORES, which was undertaken by me at BHARAT PETROLEUM CORPORATION LIMITED Chennai, in partial fulfillment of the MBA degree course of SRM Deemed University is my original work.

Date: Place: Chennai FIROZ.T.V.

ACKNOWLEDGEMENT

I would like to thank the principal Prof. R. VENKATARAMANI for the timely assistance and good wishes for the entire course study. I extend my sincere gratitude to our respected Dean Dr. JAYSHREE SURESH, SRM SCHOOL OF MANAGEMENT for her kind cooperation and valuable suggestions throughout this project. I take this opportunity to express my sincere gratitude and appreciation to Ms. UMA MAHESWARI, MBA, Mphil faculty member of SRM SCHOOL OF MANAGEMENT and internal guide whose timely directions, valuable suggestions and advice which lead to the orientation of this project. I deem it as my privilege to record my thanks to Mr. EMMANUEL PURTI of, BHARAT PETROLEUM CORPORATION LIMITED for his kind cooperation by sparing some of his valuable time and guidance. I thank BPCL Staffs for their kindness. Last not the least, I wish to thank the faculty members of SRM school of Management for their encouragement throughout the course of study.

CONTENTS CHAPTER 1. DESCRIPTION INTRODUTION OF THE STUDY 1.1 1.2 1.3 1.4 INTRODUCTION OBJECTIVE OF THE STUDY SCOPE OF THE STUDY LIMITATION OF THE STUDY PAGE NO 1 2 4 6 8 9 18 22 23 23 24 25 25 25

2. 3. 4.

INDUSTRY PROFILE COMPANY PROFILE RESEARCH METHODOLOGY 4.1 4.2 4.3 4.4 4.6 RESEARCH DESIGN METHODOLOGY OF THE STUDY SOURCES OF DATA SAMPLING METHODS TOOLS USED FOR ANALYSIS

4.5 SAMPLE SIZE

5. 6. 7. 8.

DATA ANALYSIS AND INTERPRETATION FINDINGS SUGGESTIONS CONCLUSION ANNEXURE BIBLIOGRAPHY

29 66 69 71 73 76

LIST OF TABLES

Table No: 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 Name of Tables Table Showing the Age Group of the Customers. Table Showing the Income Group of Customers. Table Showing Frequency of Shopping. Table Showing Pricing of the Product and Services. Table Showing the Quality of the Product and Services. Table Showing the Variety of the Product and Services. Table Showing the Product Display of the Product and Services. Table Showing the Stock Level of the product and Services. Table Showing the Customers Response to Billing of the Product and Services. Table Showing Customers response towards Staffs Behaviour. Table Showing Customers Response towards Staff Dressing. Table Showing Customers Response towards Customer Service. Table Showing Customers Response towards Facilities Provided. Table Showing the Customers Response towards In&Out Brand Image.

Page No 30 32 34 36 38 40 42 44 46 48 50 52 54 56

LIST OF FIGURES Figure No 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 Name of Figures Figures Showing the Age Group of the Customers. Chart Showing the Income Group of the Customers. Figures Showing the Frequency of Shopping. Figures Showing the Pricing of the Product and Services. Figures Showing Customers Response towards Quality of the Product and Services. Figures Showing Customers Response towards Variety of the Product and Services. Figures Showing the Customers Response towards Product Display. Figures Showing the Stock Level of the Product and services. Figures Showing the Customers Response towards Billing of the Product and Services. Figures Showing Customers Response towards Staffs Behaviour. Figures Showing the Customer Response towards Staff Dressing. Figures Showing the Customers Response towards Customer services. Figures Showing the Customers Response towards Facilities Provided. Figures Showing Customers Response towards In&Out Brand Image. Page No 31 33 35 37 39 41 43 45 47 49 51 53 55 57

Chapter 1 1.1 INTRODUCTION

India is currently in the second phase of the retail evolution, with domestic customers becoming more demanding with their rising standard of living and changing lifestyles. Change in customers' focus from just buying to broad shopping (buying, entertainment and experience) has led to a pick-up in momentum in organised formats of retailing The Indian Petroleum retailing industry is today poised to make giant strides both in terms of new forecourt retailing opportunities and superior customer offerings at the retail outlet. With the onset of the post APM deregulated scenario, the spirit of competitiveness amongst the petroleum companies augurs well for the consumer with each of the companies adopting innovative ways to capture a larger part of the consumers mind share With the emergence of organized retailing in the country and a growing demand from consumers for a superior shopping experience, Convenience Retailing has emerged as a key business area for petroleum companies given their wide retail presence, existing customer base and strategically located sites. Convenience need gaps have been felt in various fields and research has shown that the urban consumer today seeks convenience in shopping for their basic requirements so that their precious time is reserved for more fruitful.

1.2 OBJECTIVE OF THE STUDY

Primary objective To analyse the present concept and recommendation for the expansion and improvement of in&out convenience store.

Secondary objectives To analyse the performance of the present stores. Customer satisfaction and enhance pleasant shopping experiences. To find out the customers preference regarding the products and services of the store.

1.3 SCOPE OF THE SYUDY

The study was carried to analyse the performance of the in&out stores and the response of the customers towards pricing, variety, quality, product display, stock level, billing, staff behaviour, staff dressing, customer service and also to know the brand image of the in&out stores. New facilities which will be offered in future like ticketing bus, train, flight, hotel and movies, by knowing this factor the customer can be offered much better service and increase the sale of the stores too.

1.4 LIMITATIONS

1. The study was for three months, which is very short period. 2. Language barrier was a problem. 3. Customers unwilling to respond. 4. The information recorded is based on the opinion and reactions of the Respondents as on the date of research. 5. The sample size was 100.

Chapter 2

INDUSTRY PROFILE

Convenience stores evolved from a variety of sources early in the twentieth century. They drew upon characteristics of many types of retail establishments in

existence at the time: the "mom-and-pop" neighborhood grocery store, the "ice-house" (from pre-refrigerator days), the dairy store, the supermarket and the delicatessen. The Southland Ice Company is credited with the birth of the convenience store in May 1927 on the corner of 12th and Edgefield Streets in the Oak Cliff section of Dallas, Texas. "Uncle Johnny" Jefferson Green, who ran the Southland Ice Dock in Oak Cliff, realized that customers sometimes needed to buy things such as bread, milk and eggs after the local grocery stores were closed. Unlike the local grocery stores, his store was already open 16 hours a day, seven days a week; so, he decided to stock a few of those staple items. The idea turned out to be very convenient for customers. Joseph C. Thompson, one of the founders and later president and chairman of The Southland Corporation, recognized the potential of Uncle Johnny's idea and began selling the product line at the other ice dock locations of The Southland Company. Further, these stores were open from 7 a.m. to 11 p.m., seven days a week. In addition to convenience store development at The Southland Ice Company, other types of stores were emerging. There were "midget" stores in the 1920s and "motorterias" or mobile convenience stores. "Bantams" and "drive-in" markets were also around in 1929 where motorists never had to get out of their cars. "Delmat" vending machine type of stores was also popular for obtaining milk, eggs, produce and fresh meat. Dairy cooperatives often ran "dairy stores" or "jug stores" as outlets for their operations. Sometimes supermarkets had small outlets in rural areas for people who did not travel to the city enough for eggs, milk, etc. The pattern of the emerging "convenience" types of stores grew modestly until World War II (although they were not yet called "convenience stores"). The big factor in all of these operations was fast service. The stores were most successful in warmer climates where the open front was a big attraction. The end of the war and the increased ownership of automobiles sparked the rapid growth of the industry in the 1950s. The automobile helped fuel the growth of suburban living--of families wanting the "American Dream." Americans, with bigger cars and better roads, began flocking to the suburbs where they found plenty of space to live and raise children... but too much space between shopping centers.

The industry grew rapidly along with this consumer need for convenient shopping and supplanted the neighborhood grocery stores and became established in new suburbs and areas too small to warrant a supermarket. Once again, convenience store companies were opportunistic and innovative, thriving in market niches too small for others to operate profitably. Additional forces continued to drive convenience store growth. The growth of the supermarket industry affected convenience stores. As grocery stores became larger and larger, they became less convenient for the customer who was in a hurry. Convenience stores filled in. Suburban families often had two cars and two incomes; both spouses working meant more discretionary income and less time for using a supermarket. Also, the increase in the number of working women reduced the amount of time available for shopping. Stores were conveniently located. Customers could park in front of stores and could even leave children in the car and keep an eye on them. With the variety of items available, it was virtually one-stop shopping without waiting in line. Stores were easily franchised since it was getting expensive to start up a new store. They entered the northern regions of the country and continued to grow through merger, acquisition and new building. Convenience stores continued to evolve from characteristics of the competitors: supermarkets, mom-and-pop grocery stores, specialty food shops, drug and variety stores, vending fast food chains, and gasoline service stations. Convenience stores began offering gasoline when self-serve became popular. The number of gasoline stations declined while the number of convenience stores selling gasoline increased. Today, the main competitors convenience stores face are those mentioned above as well as chain drug stores, superettes, warehouse stores, general retail stores, home delivery services and, of course, other convenience stores.

Convenience Stores in the Last Twenty Years In the early 1970s, convenience store operators had to cope with price and wage controls, gasoline and merchandise shortages, record inflation and interest rates,

and increased competition due to longer hours and increased discounting by supermarkets. The energy crisis limited the quantity of gasoline convenience stores could sell. During the severe phases of the energy crisis, operators could sell all the gas they could get at the highest prices permissible under the price controls in effect at the time. The major factor limiting gasoline profits was an adequate source of supply. The industry stood up to all types of competition successfully. As the size of supermarkets continued to increase to the new super store concept of 30,000 to 50,000 square feet, a number of the smaller, existing supermarkets fell by the wayside. The result was that many operators seized upon the pockets of opportunity provided by these openings. More states began allowing self-service gasoline, so the number of convenience store gasoline outlets grew. More stores were selling gasoline and moving to owning gasoline equipment as opposed to operating on a commission basis (a higher margin per gallon was associated with a store owning its equipment). Costs continued to go up with energy taking a sharp jump; severe competition held back margins; high interest rates affected bottom lines; more regulations were imposed by federal, state and local governments; and there was, in general, an increased cost of doing business. Store labor costs were increasing due to increases in the minimum wage and more fringe benefits as well as many other factors such as adding service items like gasoline, deli and prepared foods. The operators needed to attract and hold customers on a daily basis; Sunday openings were increasing. Marginal stores and marginal items were rooted out. By 1976, stores selling gasoline were profitable and the numbers were growing. There was a competitive battle in gasoline as seen by the number of stores offering gasoline--the average margin dropped while the average gallons went up. As the major oil companies withdrew from certain locations, convenience stores were becoming a more and more significant source of petroleum product sales. As the number of convenience stores increased, the average number of households served by an individual store dropped. The higher level of saturation and increased competition led to fewer customers per store; therefore, stores remodeled and

refixtured to attract more customers rather than building new stores. Utility costs were high, but most stores continued to stay open 24 hours more often than not. As the rate of inflation accelerated in the late 1970s, significant sales increases were necessary to maintain the trend of real growth in the industry. The growth in the number of customer visits outpaced the growth in number of stores. This trend reflected the frequency of fast food sales including sandwiches, coffee, and frozen novelties. The convenience store industry continued to grow; but the impact of increased competition, higher energy costs, new store expenses, and higher labor expenses reduced profits as a percentage of sales. The increase in labor as a percentage of sales absorbed the improved gross margin and emphasized the continued need for employee productivity both in the store and at the staff level. By the end of the 1970s, sales gains were realized due to inflation, gasoline, new stores and increased real volume per store. Store closings were attributed to older physical plants, changing location patterns, and higher breakeven points due to the rise in new store investment and the increasing capital requirements in areas such as fast food equipment. Over 80 percent of the stores constructed were equipped with the ability to sell gasoline. The increasing volume per store, coupled with the growing number of stores with gasoline, increased the importance of convenience stores as a marketer of petroleum products. The smaller chains reported having significantly higher sales per customer which would be expected since several were superette operations, located in smaller towns with less customer traffic and, often as not, heavily promoting fast food and coffee sales. The larger chains were volume oriented. The two patterns presented opportunities for different merchandising strategies since the large chains were merchandising for increased transaction value while the smaller chains sought to increase the number of transactions. Operators were making the stores more capital and labor intensive with the addition of microwaves, fountain drinks, and fryers as they expanded into higher margin product lines. The increased gross margin dollars generated by these products

were weighed carefully against the associated incremental capital and labor costs. The trend toward 24-hour operation reflected the need to maximize utilization of the facility. As the industry moved into more fast foods, the equipment required a high level of maintenance and servicing. Servicing and cleaning equipment can result in a third-shift person whether the store is open or not. In 1980, the slowdown in the number of new stores was inflation related. There was less money available, interest rates remained high, and stores required increased capital investment. Faced with a slowing economy, higher breakeven points made it even more difficult to justify opening new units. Instead, many operators were investing in remodeling existing locations to take advantage of lower rental rates. Higher rental rates reflected the increased dollar investment in both land and building. These higher land and building investments reflected the high interest rates and inflation premium demanded by investors. A sizable portion of the industry's profit was derived from bargain rents on existing stores. In 1981, economic recession and high interest rates dampened growth. High interest rates, high rental costs, heavy initial capital requirements and the general sluggishness of the economy all resulted in higher breakeven points and a continuing trend toward remodeling existing convenience store locations rather than committing funds to the opening of new outlets. By mid-1982, the economy was experiencing the worst recession since World War II. Oil supplies were in excess of demand and reduced prices and profits resulted throughout the oil/gasoline industry. In food retailing, super warehouse stores doing over one million dollars per week in sales were shaking up the grocery industry. Retail gasoline, grocery, and fast food chains were seeing an increased activity in mergers and acquisitions and redeployment of assets. As economic recovery progressed, gasoline usage increased but remained below the levels of the 1970s. Sales in gasoline service stations fell due to falling prices and demand that had not kept up with supply in recent years. Food retailers continued to struggle with the influx of new store formats--super warehouse stores, gourmet stores,

super convenience stores, hypermarkets, fast food restaurants inside convenience stores, gasoline pumpers with small convenience stores and more. In the late 1980s, industry attention moved to improve operations, margins and cost control. Merchandising became the key ingredient for the successful operation of convenience stores. Merchandising programs have the two-fold objective of increasing store traffic and increasing the average sale per customer. There was a continued reduction in the opening of new stores and an increase in the investment required for a new store. Acquisitions increased as a way for companies to increase store growth. The increase in the cost of land for the new rural store reflected the saturation of the urban market. Nevertheless, companies continued to look to the rural market for store growth as land and building costs were less costly compared to those in urban locations. The increases in the cost of both land and store construction reflected the competitiveness for the prime location. Annual sales for new stores needed to exceed the averages for existing stores by a sizable amount to ensure the recovery of the investment. Operating costs continued to rise even faster than selling prices. Corporate acquisitions and mergers reached the highest level of activity in over 50 years. Sky-high insurance costs, underground storage tank liabilities and consumer group pressures regarding alcohol beverages and adult magazines became important factors. Increased competition, the changing labor force, and the uncertain opportunities presented by new technology all affected the industry. Labor was becoming the largest operating expense component and represented a large factor in the reduction in the percentage of pretax profit. Regional differences in labor markets became especially acute as the convenience store industry increased services offered and stayed open for extended hours. Some stores turned to increased automation-Electronic Funds Transfer, Automated Teller Machines, and Scanning. Beginning in the 1990s, several factors, such as the Gulf war, a recessionary economic climate and increased awareness of the environment, began to impact the industry. New Environmental Protection Agency underground storage tank regulations also started to make it more costly to operate a convenience store. In addition,

industry concerns, such as inventory shrinkage, employee shortages and turnover, operating regulations and an aging population have made it important to reexamine the concept of convenience and the strategies for operating in an increasingly competitive environment. Responding to the more difficult economic environment, companies beginning in 1992 lowered general and administrative expenses and closed marginal stores. Coupled with lower interest costs, higher gasoline volumes, higher gasoline margins, increased merchandise sales per store, and a strong customer focus, industry profits exploded to a record $2.2 billion during 1993 and further improved to $3.2 billion in 1994. Many challenges remain, but the 1995 NACS Future Study recommended two paths to enhance future opportunities for convenience store operators. These are removing barriers to shopping at convenience stores and creating new value for the customer. Stiff competition from other channel competitors, unpredictable gasoline margins, and the rapidly changing technology area are providing new challenges and opportunities for the industry. Those companies that seek out customer needs and align themselves to serve those needs will be successful in the future. For more information on the current state of the convenience store industry and future opportunities, please contact the National Association of Convenience Stores' Information Center and request the NACS State of the Industry report and the NACS 1995 Future Study.

Chapter 3

Company Profile The Indian Petroleum retailing industry is today poised to make giant strides both in terms of new forecourt retailing opportunities and superior customer offerings at the retail outlet. With the onset of the post APM deregulated scenario, the spirit of competitiveness amongst the petroleum companies augurs well for the consumer

with each of the companies adopting innovative ways to capture a larger part of the consumers mind share. With the emergence of organised retailing in the country and a growing demand from consumers for a superior shopping experience, Convenience Retailing has emerged as a key business area for petroleum companies given their wide retail presence, existing customer base and strategically located sites. Convenience need gaps have been felt in various fields and research has shown that the urban consumer today seeks convenience in shopping for their basic requirements so that their precious time is reserved for more fruitful pursuits. Petrol retail outlets provide the right framework for setting up convenience retail chains where the consumer has the opportunity of combining shopping with the fuelling occasion. Petrol stations are widely recognized to be one of the highest traffic aggregators and retail majors like hypermarkets such as Sainsbury, Tesco and Carrefour have added motor fuels in their basket of services for the convenience of their customers. Hence along with strategic locations, the availability of footfall in the petrol retail outlets give petroleum retail companies the competitive advantage. Worldwide, petrol station convenience stores have developed into a serious business in itself with companies like Shell, Caltex, and BP running their convenience store chains very profitably. All of them have deployed best retail practices in their stores and offer a wide range of services including laundry, postal services, courier services, fast food etc.

Realising the importance of a greater understanding of consumers needs and consistent with its core objective of continuously adding value to its customers through innovative means, Bharat Petroleum has launched its convenience retailing initiative under the In&Out brand. Bharat Petroleum is the 2nd largest oil marketing company in the country with over 6000 retail outlets spread across the length and breadth of the country. The In&Out chain of convenience stores is being set up in the urban markets at strategically located retail outlet sites with high customer footfalls.

The In & Out store at Bharat Petroleum petrol pumps, which was launched in 2001, offers a convenience proposition where a number of typical household errands are aggregated under one roof for the benefit of the customers. Today there are more than 240 In&Out stores across India, which bring in unmatched convenience at the petrol station. Strategic alliances have been formed with major brand owners and retailers in the country to further strengthen the convenience proposition. In&Out stores have a wide range of services viz., ATMs of leading Banks, Music stores from Planet M and Music World, Beverages from Pepsi, Coffee and snacks from Cafe Coffee Day and Coffee Day Xpress and a variety of impulse buys including confectionery, snacks, convenience foods, toiletries and select range of branded groceries and other FMCG products through exclusive tie-ups with such FMCG majors like ITC, Cadbury and Frito-Lay. Special Features of In & Out stores In&Out stores are the first to open and last to shut in the neighbourhood.Customers can use their PetroCard for In&Out shopping and earn valuable Petromiles. In & Out stores are the largest organized convenience store retailing chain in the country with a standardised layout across the country, with a high level of aesthetics and an ambience aimed at deriving maximum value for our alliance partners and offering consumers a revolutionary solution for attending to their daily chores. The In&Out stores offer Western Union Money Transfer facilities in Mumbai Money available all the time from your near and dear ones abroad at our store In&Out stores offer all cell phone recharge cards, and today with the launch of e-charge we are the first in the country to offer electronic charging of e-cards now you can never lose your prepaid card re-charge voucher

Have Pepsi at In&Out anytime; if you want something more indulge in Coffee & Snacks from CAFE COFFEE DAY at select In & Out stores.If you want the latest music come to the Satellites from Planet M and to Unplugged from Music World, next to your home and get top quality music cassettes and CDs.Pick the latest issue of India Today, Outlook and any other magazine at the store today. Chapter 4 RESEARCH DESIGN AND METHODOLOGY

4.1 RESEARCH DESIGN A research design is generally a pure and simplified form of framework or a certain plan for a study that will guide the collection and analysis of data or information needed. The function of the research design is to ensure that the required data are obtained and collected accurately and economically. Research design is the basic framework which provides guidelines for the best of research purpose. In short, research design is the planned structure and strategy of investigation conceived so as to obtain specific answers or solutions to research questions and to control variance. Here the research design used for this research is descriptive.

4.2 METHODOLOGY:

Methodology states how research study should be undertaken. This includes specification of research design, source of data, method of primary data collection, field work carried, analysis and interpretation done limitations inherited in the concerned project work. In the present study, the research approached used is the survey method. All the customers included in the survey were given a questionnaire and the data was collected based on their opinions and suggestions.

4.3 DATA COLLECTION METHOD: Data sources consisted of both primary and secondary sources.

PRIMARY DATA The shop keepers were qualified for generating primary data for the purpose of the study. A questionnaire was used to conduct the whole survey. To control the response bias and to increase the reliability of the data a structured pattern of questions was also used in the questionnaire. The advantages of using this specific construction of questionnaire are being administrative simplicity and ease of data processing, analysis, and the interpretation. The questionnaire consists of dichotomous and multi-choice questions to allow all possibilities to be covered. The questions were asked directly to the dealers and in a direct undisguised form so as to avoid confusion and to get the best reliable and honest answers.

SECONDARY DATA: The data were collected from websites of the company. Journals and Magazines related to retailing were also taken in to consideration.

4.4 SAMPLING METHODS: Simple Random Sampling method is adopted in the study. A simple random sample is a subset of observations drawn from a given population in such a way that each observation contrived in the population has a particular status in the sample.

4.5 SAMPLE SIZE: The total sample size for the study was 100.The samples were taken from the customers of in & out stores.

4.6 TOOLS FOR DATA ANALYSIS: The data analysis of data collected through research has done systematically. Simple percentage, bar diagram, Tables, Pie diagram etc were used to represent a variety of data that fall into various categories. The analysis has been done systematically and accurately so as to get a correct and authentic result.

TOOLS USED FOR ANALYSIS: The main methods used for analysis; a. Percentage Method b. Weighted Average Method c. Chi square

A) PERCENTAGE METHOD: Percentage refers to a special kind of ratio. Percentages are used in comparisons between two or more series and also to describe the relationship. Percentage reduces everything to a common base and there by allowing meaningful comparison to be made.

B) WEIGHTED AVERAGE METHOD: In situations where these relative importance of all the items of the distribution is not the same. If some items in a distribution are more important than others, then this point must be born in mind, in order that average computed is the representative of the distribution. In such cases, proper weightage is to be given to various items the weights attached to each item being proportional to the importance of the item in the distribution. If N is the sample size and W are the weights, weighted average is calculated by

Formula: Weighted average= fiWi/ fi Where, Wi= Weight given to the ith cell Fi= Number of respondent in the ith cell.

C) CHI-SQUARE ANALYSIS: Chi square test is a non-parametric test used most frequently in marketing research to test the hypothesis. This is employed for testing hypothesis when distribution of population is not known and when nominal data is to be analyzed. Chi-square test aims at determining whether significant difference exists among groups of data or whether differences are due to sampling. Chi-square analysis is a complex mathematical subject that cannot be fully treated here. The following discussions of this two method are designed to help the reader gain an understanding of the basic concepts underlying them. For the most part, the discussions avoid the complex mathematics that is an integral part of the techniques. Chisquare analysis can be used to test for the statistical significance of difference observed between two equivalent sets of categories that result from field surveys or experiments. A chi-square analysis can be used when that data satisfy four conditions. (a) There must be two observed sets of data and one expected set of data (b) Typically these data sets are in table form or in frequency distribution form. The two sets of data must be based on the same sample size (c) Each cell in the data contains an observed or expected count of five or larger and (d) The different cells in a row or column must represent categorical variables. There are three commonly encountered applications of chi-square analysis. Perhaps the most common occurs when researchers observe that, for a certain product, men shows different distribution of consumption rates than women, or that the users of certain brand in city A show a different income distributions than users of the same brand in city B. Researchers often must test whether the differences in such distributions are statistical significant. With the help of chi-square test, one can ascertain whether the given discrepancy between theory and observation is due to chance or due to failure of theory to fit into observed fact. The observed and expected frequencies completely coincide when the value of chi-square increases, the

discrepancy between observed and expected frequency increases. The following formula is used for calculating chi- square test:

Null Hypothesis

: There is no significant relationship between Age group and willingness to purchase

Alternative Hypothesis

: There is significant relationship between

Age group and willingness to purchase Formula : X2 = (O-E) 2 / E

Where O is the observed frequency E is the expected frequency Chapter 5 TABLE: 5.1

Table Showing the Age Group of the Customers No of Age Group 21-30 31-40 Respondents 44 35 Percentage 44 35

41-50 51above Total

9 12 100

9 12 100

Inference From the above table it has been inferred that the maximum shoppers fall under the category of 21-30 age group.

FIGURE: 5.1

Chart Showing the Age Group of the Customers

13% 8% 43% 21-30 31-40 41-50 51above

36%

TABLE: 5.2

TABLE SHOWING INCOME GROUP OF CUSTOMERS

Income Factor

No of Respondents

Percentage

0-5000 5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 30000-35000 35000-40000 40000above Total

7 14 13 19 16 7 4 4 13 97

7 14 13 21 17 7 4 4 13 100

Inference From the above table it has been inferred that the income of 21% of the shoppers falls under the category of Rs 15000 to Rs 20000 and 4% of the shoppers falls under the category of Rs 35000 to Rs 40000.

FIGURE: 5.2

Chart Showing the Income of Customers

13% 4% 4% 7%

7% 14%

0-5000 5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 30000-35000 35000-40000 40000above

13% 17% 21%

TABLE: 5.3

Table Showing Frequency of Shopping

Opinion Factor

No of Respondents

Percentage

YES

77

77

NO

23

23

TOTAL

100

100

Inference From the above table it has been inferred that 77% of the shoppers are regular customers.

FIGURE: 5.3

Chart Showing the Frequency of Shopping

No of Respondents

23% YES NO 77%

TABLE: 5.4

Table Showing Customer response to pricing of the product & services No of Price factor bad average good TOTAL Respondents 4 69 25 98 Percentage 4 70 26 100

Inference From the above table it has been inferred that 74% of the customers are not satisfied with pricing where as 26%are satisfied with pricing.

FIGURE: 5.4

Chart Showing the Pricing of Product & Services

PRICE

4 26 bad average good 70

TABLE: 5.5

Chart Showing the Customer response to Quality

Opinion Factor bad average good TOTAL

No of Respondents 1 31 67 99

Percentage 1 31 68 100

Inference From the above table it has been inferred that68% are satisfied with quality of the product and service where as 32% are not satisfied so they need to improve the quality.

FIGURE: 5.5

Chart Showing the Quality of Product & Services

QUALITY

1% 31% bad average 68% good

TABLE: 5.6

Table Showing Customer response to variety of Products &Services

Opinion Factor bad average good TOTAL

No of Respondents 4 36 60 100

Percentage 3 37 60 100

Inference From the above table it has been inferred that 60% are satisfied with variety of the product and services, where as 40% are not satisfied.

FIGURE: 5.6

Chart Showing the Variety of Product & Services

variety
70 60 percentage 50 40 30 20 10 0 3 bad average good 36 60

TABLE: 5.7

Table Showing Customer response to product display of the Product & services

Opinion Factor bad average good TOTAL

No of Respondents 0 35 65 100

Percentage 0 35 65 100

Inference From the above table it has been inferred that 65% are satisfied with product display of the product and services, where as 35% are not satisfied

FIGURE: 5.7

Chart Showing the Product Display of Product & Services

PRODUCT DISPLAY
70 60 50 40 30 20 10 0 0 bad average good 35 65 Series1

TABLE: 5.8

Table Showing Customer response to stock level of the Product & Services

Opinion Factor bad average good TOTAL

No of Respondents 4 41 54 99

Percentage 4 41 55 100

Inference From the above table it has been inferred that 55% are satisfied with stock level of the product and services, where as 45% are not satisfied.

FIGURE: 5.8

Chart Showing the Product Display of Product & Services

STOCK LEVEL
60 50 40 30 20 10 0 bad average good 4 Series1 41 55

TABLE 5.9

Table Showing Customer response to billing for the Product & services

Opinion Factor bad average good TOTAL

No of Respondents 1 15 84 100

Percentage 1 15 84 100

Inference From the above table it has been inferred that 84% are satisfied with billing of the product and services, where as 16% are not satisfied.

FIGURE: 5.9

Chart Showing the Billing of Product & Services

BILLING
100 80 60 40 20 0 1 bad 15 average good 84 Series1

TABLE: 5.10

Table Showing Customer response to staff behaviour Opinion Factor bad average good TOTAL No of Respondents 0 38 56 94 Percentage 0 40 60 100

Inference From the above table it has been inferred that 60% of the customers are satisfied with the staff behaviour, where as 40% are not satisfied with staff behaviour.

FIGURE: 5.10

Chart Showing Customer Response to Staff Behaviour

STAFF BEHAVIOUR

0 40 bad average good

60

TABLE: 5.11

Table Showing Customer response to staff dressing

Opinion Factor bad average good TOTAL

No of Respondents 1 23 76 100

Percentage 1 23 76 100

Inference From the above table it has been inferred that 76% of the customers are satisfied with the staff dressing, where as24% are not satisfied with staff dressing.

FIGURE: 5.11

Chart Showing Customer Response to Staff Dressing

STAFF DRESSING
80 60 40 20 0 1 bad 23 average good 76 Series1

TABLE: 5.12

Table Showing Customer response to customer service

No of Opinion Factor bad average good TOTAL Respondents 1 14 85 100 Percentage 1 15 84 100

Inference From the above table it has been inferred that 84% of the customers are satisfied with customer services, where as 16% are not satisfied.

FIGURE: 5.12

Chart Showing Customer response to customer service

CUSTOMER SERVICE

1%

15% bad average good

84%

TABLE: 513

Table Showing Customer response to facilities provided

Opinion Factor bad average good TOTAL

No of Respondents 3 35 62 100

Percentage 3 35 62 100

Inference From the above table it has been inferred that 62% of the customers are satisfied with the facilities provided, where as38% are not satisfied.

FIGURE: 5.13

Chart Showing Customer response to facilities provided

FACILITIES PROVIDED
70 60 50 40 30 20 10 0 bad average good 3 35 Series1 62

TABLE: 5.14 Table Showing Customer response to in&out brand image Opinion Factor bad average good TOTAL No of Respondents 0 38 56 94 Percentage 0 41 59 100

Inference

From the above table it has been inferred that 59% are satisfied with the in&out brand image, where as 41% are not satisfied.

FIGURE: 5.14

Chart Showing Customer response to in&out brand image

IN&OUT BRAND

0% 41% 59% bad average good

WEIGHTED AVERAGE ANALYSIS

Aim: To find out preference of ticketing service for different modes of transports.

Table Good Bus Train Flight Hotel Movie 13 66 13 84 49 Average 12 21 12 14 37 Bad 7 0 1 1 1

Formula: Weighted average= fiWi/ fi Where, Wi= Weight given to the ith cell Fi= Number of respondent in the ith cell.

Weights Given:

Table Rank Weight Total Weight i.e., Wi = 6 1 3 2 2 3 1

Table fiwi Bus Train Flight Hotel Movie 70 240 64 295 222 fiwi/fi 2.19 2.76 .2.46 2.98 2.55 Rank 5 2 4 1 3

Inference: From the above table it has been inferred that hotel ticketing services ranked first; train ticketing services got second; movie ticketing services got third; flight ticketing services got fourth; bus ticketing services got fifth. From the above weight average analyses it has been identified that hotel ticketing services has been highly preferred by the respondents

CHI- SQURE TEST

Aim: To find out whether there is any significant relationship between Income and Spending.

Null Hypothesis

: There is no significant relationship between Income and spending related to In&Out Stores.

Alternative Hypothesis: There is a significant relationship between Income and spending related to In&Out Stores.

Formula

: X2 = (O-E) 2 / E

Observed Frequency:

Table

INCOME 0-5000 5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 30000-35000 35000-40000 40000 Above

0-500 2 3 6 6 4 2 1 2 0

SPENDING 500-1000 1000-1500 1 4 2 5 4 1 0 1 6 2 3 3 5 5 2 0 0 4

>1500 2 4 2 3 3 2 3 1 3

TOTAL 7 14 13 19 16 7 4 4 13

Calculation of Chi-Square

O 2 1 2 2 3 4 3 4 6 2 3 2 6

E 1.88 1.73 1.73 1.66 3.75 3.46 3.46 3.32 3.48 3.22 3.22 3.08 5.9

(O-E) 0.12 0.73 0.27 0.34 -0.75 0.54 -0.46 0.68 2.52 -1.22 -0.22 -1.08 0.91

(O-E)2 0.01 0.53 0.07 0.16 0.56 0.29 0.21 0.46 6.35 1.48 0.05 1.16 0.83

(O-E) 2/E 0.01 0.31 0.04 0.09 0.15 0.08 0.06 0.14 1.82 0.46 0.02 0.38 0.16

5 5 3 4 4 5 3 2 1 2 2 1 0 0 3 2 1 0 1 0 6 4 3

4.7 4.7 4.51 4.29 3.96 3.96 3.79 1.88 1.73 1.73 1.66 1.07 0.99 0.99 0.95 1.07 0.99 0.99 0.95 3.48 3.22 3.22 3.08

0.3 0.3 -1.51 -0.29 0.04 1.04 -0.79 0.12 -0.73 0.27 0.34 -0.07 -0.99 -0.99 2.05 0.93 0.01 -0.99 0.05 -3.48 2.78 0.78 -0.08

0.09 0.09 2.28 0.08 0.16 1.08 0.62 0.01 0.53 0.07 0.16 0.075 0.98 0.98 4.20 0.86 0.0001 0.98 0.0025 12.11 7.72 0.61 0.006

0.02 0.02 0.51 0.02 0.04 0.27 0.16 0.01 0.31 0.04 0.09 0.005 0.98 0.98 4.42 0.80 0.0001 0.98 0.003 3.48 2.39 0.19 0.002

The Calculated Value of Chi-Square = Degree of Freedom =(r-1) (c-1) =(9-1) (4-1) =8*3=24

(O-E) 2 / E = 19.44

For 24 degree of freedom at 5% level of significance.

Table Value of Chi-Square = 36.415

Result: Since calculated value is less than the table value, Ho is accepted.

Inference: It has been inferred that there is no significant relationship between Income and spending related to in&out stores.

CHI- SQURE TEST: II Aim: To find out whether there is any significant relationship between Age and Frequency of shopping. Null Hypothesis : There is no significant relationship between Age and Frequency of shopping related to In&Out stores.

Alternative Hypothesis: There is a significant relationship between Age and Frequency of shopping related to

In&Out stores.

Formula Observed Frequency

: X2 = (O-E) 2 / E

Table FREQUENCY OF SHOPPERS AGE GROUP 21-30 31-40 41-50 51Above YES 33 28 6 10 NO 11 7 3 2

Calculation of Chi-Square II Table

O 33 28 6 10 11 7 3 2

E 33.88 26.95 46.93 9.24 10.12 8.05 2.07 2.76

(O-E) -0.88 1.05 -0.93 0.76 0.88 -1.05 0.93 -0.76

(O-E)2 0.77 1.10 0.86 0.57 0.77 1.10 0.86 0.57

(O-E) 2/E 0.02 0.04 0.12 0.06 0.08 0.14 0.42 0.21

The Calculated Value of Chi-Square = Degree of Freedom =(r-1) (c-1) =(4-1) (2-1) =3

(O-E) 2 / E = 1.09

For 3 degree of freedom at 5% level of significance. Table Value of Chi-Square = 7.815 Result: Since calculated value is less than the table value, Ho is accepted. Inference: It has been inferred that there is no significant relationship between Age group and Frequency of shopping related to in&out stores.

Chapter 6

FINDINGS

1. The research shows that 50% of the customers are from the income group of 5000-25000. 2. It was found that 77% of the customers are regular. 3. From the analysis of data it has been found that only 70% of the respondents are satisfied with MRP. 4. 68% of the customers responded that quality is good. 5. 60% of the respondents said variety is good. 6. It was found that 65% of the customers responded product display is good. 7. The research shows that 55% of the customers are satisfied with stock level; where as 45%of the customers are not satisfied. 8. It was found that 84% of the customers have the opinion that billing is good. 9. It was found that 60% of the customers have the opinion that staff behavior is good. 10. The research shows that 76% of the customers are satisfied with staff dressing. 11. From the analysis of data it has been found that 84% of the shoppers are satisfied with customer service. 12. The research shows that 62% of the respondents are satisfied with the facilities provided. 13. From the response it is found that In&Out has good brand image. 14. As far as the ticketing of Bus is concerned 36% of the respondents favour it. 15. From the response it was found that 76% of the customers favour Train ticketing. 16. As far as the ticketing of Flight is concerned 50% of the customers favours it. 17. From the response it was found that 85% of the customers favours Hotel ticketing. 18. As far as the ticketing of Movie is concerned 57% of the respondents favour it.

Chapter 7 SUGGESTIONS 1. It is recommended to have centralized purchase to ensure the availability of products. It also makes a lot of difference as far as purchase expenses are concerned. 2. Free home delivery in a short distance above a specific amount of purchase can be considered. 3. Special offers for customer making a specific amount should be given. 4. When In&Out store use specific offers, the management should ensure that the customers are aware of those offers. 5. Most of the outlets are not spacious enough which create difficulty in purchasing and movement of people and the product. 6. It is recommended to plan the outlet design in such a way that future expansion is possible. 7. Planogram have proved to be an effective method of visibility and attraction. So it is recommended that more point of material to be used for product display. 8. It is very essential to have educated staff, which may solve some of the problems which is currently faced by the store.

Chapter 8

CONCLUSION

Based on the objective of this study a market research was conducted among the customers of in&out convenience shop in Chennai. Among 100 samples most of customers are satisfied with the service and some improvement must be done for product. The convenience shops have lot of scope in future as it is new experience to shop in a

petroleum retail outlet. A need to improve the loyalty program more effectively and it should be catered to more customers also suggestion and recommendation have made to increase the performance of the stores.

Questionnaire Dear Sir/Madam, in order to serve you better we request you to kindly fill up the questionnaire and in case of any clarifications you can revert back to the person who handled this questionnaire to you. 1. Name: 2. Age: 3. Address: 4. Income: 0 5000 15,000 20,000 30,000 35,000 5000 10,000 20,000 25,000 35,000 40,000 10,000 15,000 25,000 30,000 40,000 & Above

5. Do you Shop here regularly? Yes / No 6. Average Purchase per month? Rs.__________________ 7. Rate the Store on the basis of the parameters given below. Price Quality Variety Product Display Stock Levels Billing Staffs Behavior Bad Bad Bad Bad Bad Bad Bad 1 1 1 1 1 1 1 2 2 2 2 2 2 2 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5 5 5 5 5 5 5 6 6 6 6 6 6 6 7 7 7 7 7 7 7 Good Good Good Good Good Good Good

Staff Dressing Customer Service Facilities Provided In & Out Brand

Bad Bad Bad Bad

1 1 1 1

2 2 2 2

3 3 3 3

4 4 4 4

5 5 5 5

6 6 6 6

7 7 7 7

Good Good Good Good

8. Please rate the services that could be included in the store. Ticketing (Bus) Ticketing (Train) Ticketing (Flight) Ticketing (Hotel) Ticketing (Movie) Bad Bad Bad Bad Bad 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 6 6 6 6 6 7 7 7 7 7 Good Good Good Good Good

9. Any other Suggestion _______________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

---------------------------------------------- THANK YOU-------------------------------------------

Bibliography REFERENCES BOOKS RESERCH METHODOLGY METHODS & TECHNIQUES by C.R. KOTHARI, Second Edition by New Age International. RESERCH METHODOLGY FOR BUSINESS by UMA SEKARAN, Fourth Edition by John Willy & Sons Inc. MARKETING MANAGEMENT by PHILIP KOTLER Eleventh Edition by Prentice Hall India Limited.

JOURNALS AND MAGAZINES Business world Business Today Economic Times 4 ps

WEBSITES www.bharatpetroleum.com www.rpgnet.com www.shell.com www.risnews.com