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Consumer Behavior Audit

Chase Department Store is a family-owned retailer operating 5 outlets in Karachi selling garments, home textiles, crockery, and kitchenware. It targets lower-middle and middle-income families and has been successful through maintaining the lowest prices in the market. The document provides details on Chase's product offerings, customer base, and marketing strategy focused on price leadership.

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Muhammad 2009
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2K views19 pages

Consumer Behavior Audit

Chase Department Store is a family-owned retailer operating 5 outlets in Karachi selling garments, home textiles, crockery, and kitchenware. It targets lower-middle and middle-income families and has been successful through maintaining the lowest prices in the market. The document provides details on Chase's product offerings, customer base, and marketing strategy focused on price leadership.

Uploaded by

Muhammad 2009
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Consumer Behavior Audit

Shoaib Rafi (BD-65/2007)


Syed Hamza Habeeb (BD-70/2007)
Syed Ammar Zaheer (BD-69/2007)
Samad Farooq Dandiya (BD-59/2007)
Chase Department Store
 Started out in 1984 as a
family owned garments outlet.
 Rapidly expanded into home

textiles and crockery /


kitchenware
 Currently operating 5 outlets

in Karachi.
 6th outlet at Shaheed-e-Millat

is under progress and will


start operations very soon.
Chase Department Store

 Prices are the same


throughout all the
outlets in the city.

 No plans to expand in to
other cities.

 However, they are willing to


open more outlets in the city
in long run.
Chase Outlets
 NIPA – Gulshan-e-Iqbal

 Hasan Square – Gulshan-e-Iqbal

 SeaView (Near Afridi Inn) - Clifton

 Schon Circle – Clifton

 Khalid Bin Waleed Road – PECHS

 Shaheed-e-Millat – PECHS (upcoming)


Portfolio
Chase Schon
Chase Sea View
Circle
Chase NIPA

 Grocery  Ladies Fabric  Ladies Fabric


 Ladies Fabric
 Jewellry  Jewellry
 Toy World  Crockery
 Jewellry  Crockery  Kitchenware
 Crockery  Kitchenware  Cosmetics
 Kitchenware  Cosmetics  Garments
 Cosmetics  Garments  Home textile
 Garments  Home textile  Shoes
 Home textile
 Shoes  Undergarments
 Undergarments  Watches
 Shoes  Watches  Gifts & more
 Undergarments  Gifts & more
 Watches
 Gifts & more
Characteristics of Customers
 Lower-middle / Middle-income families of Karachi.

 70% customers come in groups of more than three


(families)

 30% come in twos or threes.


Characteristics of Customers

 Loyal customers go there about 3 to 5 times a


month (Chase SeaView) and at least once a
month at other outlets.

 Some customers even come from Hyderabad and


Thatta.

 Customers buy more stuff at


the beginning of the month.
Customer Behavior
 Customers end up buying more stuff than they
intended since the prices are so low.

 Customers are driven by the need to buy their


household items and other at the lowest possible price
available in the market. There reference price is
plausible low.

 Usage level is high since families are growing, there


needs grow with them.
Customer Behavior
 A large number of
customers have
been visiting
Chase for more
than a decade.

 Customers trust
that they will get
the best price in
the market at
Chase.
Motivations
 Customers are increasingly focusing on price
when they are sure of the quality.

 Customers are also now aware of the minimal


difference in quality between branded
products and standard products.
Buying Influences
 Word of mouth (family and
friends)

 Strategic store layout

◦ Toiletries at the checkout


◦ Ladies / Children’s garments /
jewellry at the beginning
◦ Crockery / Kitchenware at the
front and in the middle
◦ Gents clothing at the back
Buying Influences
 Rising inflation

 Sales (Buy 3 lawn


suits for PKR 1500)

 Introduction of
grocery and toy
world
Consumer problems
 Defected items are replaced if
they have not been used and
are returned within a specific
time frame.

 Garments are of average


quality.

 Defects in electronics are also


taken care of promptly.

 Consumers suggest that


grocery and toy world should
be introduced in other outlets
also.
Marketing Strategy
 Currently print media is used to advertise
various promotional schemes at Chase.

 Ticker on Cable TV.

 Pamphlets / Flyers distributed at traffic


signals.
Marketing Strategy
 Chase’ marketing strategy is built on ‘STP’:

◦ Segmentation: Dividing their market into a distinct


subsets of consumers with common needs or
characteristics and selecting one segment with a distinct
marketing mix.

◦ Targeting those customers that the company can satisfy


in a superior way.

◦ Positioning its offering so that it is perceived by the


consumers in the target segment as satisfying their
needs better than other competitive offerings.
Psychographic Segmentation
 Chase has divided the market
into different groups based
on social class / lifestyle.

 Forthis class of customers,


shopping at Chase results in
high transaction utility.

 These consumers know that


the low price means less than
desired quality but settle for
the product because of
budgetary limitations.
Analysis
 Experience / gut feeling is
used when deciding on
changing store layout or
inclusion of a new product
line.

 Organizational strategy
seems to be of incurring
losses on a few products
while gaining small profits
on maximum number of
products in order to
achieve overall profitability.
Suggestions
 Chase management should invest in consumer
research activities to gain valuable insight about
consumer perceptions.

 Sales staff should have a uniform so that they are


easily identifiable and to give a sense of belonging.

 Sales staff should be well-groomed and courteous .


Conclusion
 Although Chase has been around for 25 years, it has only been in
the last 5 years that they have seen rapid growth.

 The reason for this rapid growth has been the elimination of
several established middle-men who had been associated with the
organization for a long time.

 The savings thus realized were passed on to the consumer resulting


in increase in number of customers (turnover).

 The strategy so far has been to refine and improve the supply chain
(including warehousing) so that prices remain the lowest in the
market (cost leader pricing).

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