Evolutions of Mega Stores in Pakistan
Evolutions of Mega Stores in Pakistan
Evolutions of Mega Stores in Pakistan
I would like to dedicate this report to my parents and teachers. Without their
efforts and support I had not been able to become what I am right now. They
have supported me all the way from beginning. They had been the great source
of motivation and inspiration.
Page i
ACKNOWLEDGEMENT
First of all I am grateful to ALLAH ALMIGHTY, who bestowed me with health, abilities and
guidance to complete the report in a successful manner, and without HIS help I was unable to
perform this task.
More than anybody else, I would like to acknowledge my Course Incharge, Dr. Shabib ul Hasan,
Associate Professor, University of Karachi for his never ending support and untiring efforts. He
was always there to guide me whenever I felt stuck off and his encouragement always worked as
morale booster for me.
I might additionally want to thank my best friends Miss Aymen Siddiqi and Mrs. Aqsa Farhan
for their consistent underpin and help that spurred me to precede this study in this research. Their
critical comments on my work have certainly made me think of new ideas and techniques.
Page ii
LETTER OF TRANSMITTAL
Respected Sir,
In compliance with the fulfillment of the requirements on the subject Writing Research Report,
I would like to present the Research report entitled The Evolution of Modern Grocery
Market. An increasing shopping trend in Karachi, in accordance with great effort, dedication,
course requirements and your instructions.
Through this report Ive got a chance to learn a lot about the customer preferences at
supermarkets and the basic factors due to which they prefer shopping from the superstores. I
hope that this task on my part will be appreciated. Now that the report is completed, it can be
viewed for assessment. I hope that this report is acceptable by you.
The research is really interesting and challenging. Hopefully this report would also be
informative as well.
Sincerely,
Araib Khan
Dated:
Page iii
S.NO
01
02
03
04
PARTICULARS
Abstract
Research Process at Glance
Introduction
Literature Review
PG NO.
01
02
03
05
05
Research Objective
08
06
Research Design
11
07
Date Analysis
15
08
29
09
References
32
10
Appendix
34
ABSTRACT
The major aim of this research report was to analyze the determinants of an
increasing shopping trend in Karachi and this objective will be achieved in a
step by step process. The first section will explain growing trends of
supermarkets in Pakistan and then factor on which this trend is dependent.
Hypothesis will be formulated to analyze the increased shopping trends at super
market and how the services provided by these supermarkets can be improved
in future. After that a precise review of all the research gone through will be
mentioned. This will help us to better understand the determinants of what other
services can be added in supermarkets which consumers would prefer. The
literature review will help to determine which reason dominates or stands out
the most for consumers preference for superstores.
This will provide tools to test hypothesis in this research. The next phase of this
research will give an inside into the data and methodology used to determine the
factors that work behind the preferring mega stores and how and to what extent
their likes, dislikes, interests, tastes, preferences, behavior and satisfaction are
influenced by it. It will represent strategic formed by the responses of
respondents. It will state whether the finding of this research are co incident
with the hypothesis set. At last the summary of the research and will also have
recommendations that what customer see in the supermarkets in the future.
Araib Khan
Page 1
Araib Khan
Page 2
1. INRODUCTION
Araib Khan
Page 3
INTRODUCTION:
Till sixties, large scale retailing institutions like Supermarkets, Departmental stores and discount
houses were unheard of Pakistan. However utility stores and normal canteen stores are
functioning since time of independence.
Pakistan has entered the supermarket era at a time when some western countries were moving
from supermarket to hyper mart. The first supermarket in Pakistan was opened in Karachi in
1968, it was a full fledge market with intensive and extensive product mix, even food items like
meat, fish, fruits are available in them.
Supermarket simply meets the need of consumers as cost effectively as possible and Despite the
low purchasing power of the majority of Pakistani consumers, trend towards doing grocery from
such super markets is increasing, the reasons being not only availability, lower prices and bulk
quantity but also a status symbol.
BACKGROUND OF STUDY
The opening of mega stores few years back was uncalled but during the last seven years,
Pakistan has witnessed the arrival of a few global players which has set a new direction for local
retailing. Now In Pakistan the wholesale and retail business accounts for over 25% of the GDP,
A/c to the Latest Pakistan Economic Survey the sector is growing at the rate of 9.9%.
It is estimated that in 2002, about 6.8 million of the people out of the 50 million people living in
urban Pakistan represented a grocery market worth $ 1.7 billion. In August 2005 according to
Agri-Food; Past, Present & Future Report of Pakistan, Supermarkets are increasing in popularity.
The arrival of local & international players like Metro, Aghas, Naheed, Imtiaz and Hyper Star ,
growth in supermart made a boom though the segment projected of 6.8 million people grew to 17
million people by the year 2010.
Modern retail formats, notably supermarkets/hypermarkets and convenience stores, are
expanding across Pakistan and giving rural and urban consumers access to a considerably wider
selection of goods and services.
We now find sizeable number of consumers visiting these stores for their grocery and other
shopping at these stores; these numbers of people will increase by the increased penetration of
supermarkets and hypermarkets in urban Pakistan, which will be able to offer consumers a wide
range of modern, convenient products at highly competitive prices.
Araib Khan
Page 4
2. LITERATURE REVIEW
Araib Khan
Page 5
Page 6
Araib Khan
Page 7
3. RESEARCH OBJECTIVE
Araib Khan
Page 8
RESEARCH OBJECTIVES:
The objective of this report is to analyze the extent of consumer preference for superstores.
To determine which reason dominates or stands out the most for consumers
preference for superstores
Araib Khan
Page 9
People in our country are not very used to research hence they were not very receptive or
did not know how to respond to certain questions.
As students, the researchers had limited amount of resources (time, money, etc.) to spend
on this research.
This research has been conducted in supermarkets of Karachi the findings cannot be
extended to all the supermarkets in Pakistan. Hence the findings are only applicable to
Karachi
Araib Khan
Page 10
4. RESEARCH DESIGN
Araib Khan
Page 11
Exploratory
Research
Survey: Getting
Questionnaire
Filled
Desinging
Research
Focus Group
Tabulation
of Data
Hypothesis
Testing
Conclusion
Questions
TYPE OF RESEARCH
The research was of exploratory nature and involved conducting in-depth interviews of shopper
leaving supermarkets to crystallize and better understand the problem at hand and a few factors
that affect it.
Exploratory research: Initially I have conducted exploratory research in terms of secondary
data to clarify the purpose/problem of the research. Through secondary data I have found that
supermarkets are being preferred and increasing in number throughout Pakistan.
Descriptive research: After doing exploratory research I further have done descriptive research
to know what makes people prefer supermarkets over small retail outlets and to do so under
descriptive research method, surveys will be used to gather primary source data. The
questionnaire is attached in the appendix.
Araib Khan
Page 12
Aghas
Naheed
Imtiaz
Metro
Hyperstar
MEASUREMENT TECHNIQUE
A questionnaire was designed by the researchers to be administered during the personal
interview. Care was taken to avoid loaded, double barreled, biased questions. This review poll
comprises of 13 inquiries. The inquiries are a mixture of supposed, ordinal, interim and shut
finished inquiries.
SAMPLING PLAN
POPULATION DEFINITION
Men and women of age 18 and above those who have shopped in November during day time in
super markets in Karachi.
SAMPLING FRAME:
Five major supermarkets and other minor superstores in Karachi were selected namely Aghas,
Naheed, Imtiaz, Hyperstar, Metro, Family Supermarket and Bachaat Store.
SAMPLING UNIT
One shopping party.
SAMPLING METHOD
Non-probability convenience sampling (unstratified, single stage) - any shopping party leaving
the Super store after making some purchases.
Araib Khan
Page 13
Araib Khan
Page 14
5. DATA ANALYSIS
Araib Khan
Page 15
No. of respondents
38
12
No. of respondents
40
35
30
25
20
15
10
5
0
Yes
No
No. of respondents
The survey conducted included a population of both men and women. In order to determine
whether megastores were effective and efficient enough in attracting customers, they were
questioned about whether they visit Megastores or not. The result came up is around 75% of the
sample size said they visited megastores but 25% population was unaware about the role of
megastores.
Araib Khan
Page 16
No. of respondents
06
15
14
15
0
Daily
Weekly
Fortnightly
Monthly
Occasionally
Daily
12%
Weekly
30%
Fortnightly
28%
They were further inquired about the concurrency of their visit. Out of sample size, only 12% of
the respondents visits megastore on daily basis, 30% visited the Megastore on weekly basis, 28%
visited fortnightly, around 30% of the population stopped over monthly whereas 0% who visited
megastore occasionally.
Araib Khan
Page 17
No. of respondents
09
08
07
11
06
09
No. of respondents
12
10
0
Imtiaz
Naheed
Hyperstar
Aghas
Metro
Other
The focused grouped was asked about which super market they visit they usually visit, 18%
opted Imtiaz supermarket, 16% chosen Naheed Superstore, rest 14% showed their interest for
Hyperstar, 12% for Metro, Majority was with Aghas Supermarket i.e. 22% and with 18% with
local mega stores.
Araib Khan
Page 18
No. of respondents
07
07
16
20
10
12
14
16
18
20
We have analyzed that how much of the total income the shoppers have, 14% earnings were
below Rs. 25,000, 14% have their income between Rs. 25,000 50,000, 32% consumers have
their salary between Rs 50,000 75,000 and the majority of 40% have their revenue more than
Rs. 75,000. This had concluded that mostly upper class peoples with high income visit mega
stores.
Araib Khan
Page 19
No. of respondents
1
3
8
10
28
25
20
15
10
0
< Rs. 500
> Rs.5001
Next we analyzed how much money the customers were willing to pay for the commodities
monthly. The results showed that 1% people were lower class that would not or could not pay
more than rupees 500, 6% were upper lower class that would pay between rupees 500-1000.
Another 16% was lower middle class that would pay around rupees1000-3000. A 20% was
willing to pay rupees 3001-5000 and a majority of 56% was willing to pay a good price for a
good product i.e. above rupees 5000.
Araib Khan
Page 20
No. of respondents
20
22
05
03
20
15
10
0
Approx. 1 hr.
> 3 hrs.
When the respondents were queried about the time they spent in a megastore, around a 40% were
people who spent less than Approx. 1 hour, whereas a majority of the sample, i.e. 42% 1 hour
2 hour in the mega store, 10% spent 2hours - 3 hours in the megastore. Another 06% spent more
than 3 hours in the mega store. This brought to the result that more the time spent in the
megastore more the purchases are about to increase.
Araib Khan
Page 21
No. of respondents
13
19
10
06
02
00
Price
Quality
Brand
Fashion
Color
Others
Purchase of products
20
15
10
5
0
Price
Quality
Brand
Fashion
Color
Others
Another major inquiry to be made, the respondents were asked on what basis they made
purchase. 26% of the sample was price conscious, another 38% focused on quality, 20% of the
population was brand loyal, 12% were followers of fashion trends and 4% were attracted towards
color. This bought us to the conclusion that majority customers will not compromise with the
quality of the product, they want the best. Therefore store managers should not compensate the
quality of the product.
Araib Khan
Page 22
Options
No. of respondents
07
10
19
10
4
Friends
Self
Family
Spouse
Others
Purchase Influencer
20
18
16
14
12
10
8
6
4
2
0
Friends
Self
Family
Spouse
Others
The respondents were further queried about who influences their purchasing decision. A majority
reported that family was the influence of their purchases, i.e. around 38%. 14% of the
populations decisions were affected by friends, 20% by spouse, 20% by self and 8% by others.
This bought us to the result that megastore managers should keep the megastore family oriented
to increase consumer buying behavior.
Araib Khan
Page 23
No. of respondents
16
17
17
Yes
No
Sometimes
No
Sometimes
32%
34%
34%
The buyers were asked about the home delivery of the purchased goods. The results were 32%
said Yes, 34% said No whereas 34% said sometimes.
Araib Khan
Page 24
No. of respondents
29
10
11
Staff Uniform
Yes
No
Doesnt Matter
Next we analyzed from the respondents that do they want to see the employees/staff in the
supermarket in a specific dress code/ uniform, majority of the respondents i.e. 58% showed their
interest towards Yes, rest 20% said no and it doesnt matter for 22% respondents.
Araib Khan
Page 25
Options
No. of respondents
20
19
11
Yes
No
May be
Beverages Served
Yes
20
No
May Be
19
11
The respondents were further queried about do they need beverages while shopping and the
results were 40% said yes, 38% said no while 22% said seldom
Araib Khan
Page 26
No. of respondents
15
22
13
20
15
10
0
Strongly Agree
Agree
Disagree
The inquiry was made about playing area for children from a population included both men and
women. 30% preferred it strongly, 44% were agreed and remaining 26% were disagreed.
Araib Khan
Page 27
No. of Respondents
30
25
20
15
10
5
0
Location Variety
Prices
Envirom
Car
Discount Choice
ent
Parking
8
32
8
29
Status
Space to
One Stop Cleanline
Services
walk
Shop
ss
14
7
11
34
28
34
27
17
16
15
16
28
14
20
18
12
20
12
13
11
23
19
Araib Khan
10
Page 28
Araib Khan
Page 29
Since the people of high income group are the consumers of mega stores so the spending
trend is also high mostly the spending frequency of people are above 5000 PKR.
The number of visits made to supermarkets is dependent on the income of the people.
Majority of people visiting mega stores belongs to high income group i.e. above 75,000
the reason behind this aspect is that people believe mega stores are charging more prices
than ordinary market thats why the people belonging to low income group do not
approach these stores for shopping.
Since price is not the constraint for the upper class group of people going to mega stores
so they make purchases on the basis of quality. Whatever prices are they will not
compromise on quality.
People generally prefer supermarkets because of price factor as deals and discounts they
get on the material/item they purchase.
Araib Khan
Page 30
Superstore should also consider car parking space as an important way to attract more
customers
I recommend to the supermarkets that their employees should have a specific dress code.
Since majority of the people spend more than hour in supermarkets beverages should be
served while shopping
Home delivery service in the mega stores comes out as a suggestion for improvement by
the consumer. This initiative by store management will be appreciated by the people,
since it will create the ease and save time.
Various factors when combine results in to convenience for consumer, the store
management should work for all the factors in order to create a best place for shopping.
Location, car parking, cleanliness, variety, price and choice among all others factors were
priorities for consumers.
Supermarkets should continue to offer competitive prices because mostly people go there
because of the price factor.
The megastores must be made an attractive place so that it attracts families as they are the
major purchasers of commodities of megastore.
Thus for developing countries like Pakistan, benefits of supermarkets are immense for the
consumers, with generally assured quality of products and competitiveness of price.
Supermarkets have the potential to be a boon for the customers as well as for social benefits for
the community and the economy at large.
Araib Khan
Page 31
7. REFERENCES
Araib Khan
Page 32
www.pakistaneconomist.com
http://www.brecorder.com/supplements/:36th-fpcci-export-awards-20112012/1269391:future-of-retailing-in-pakistan/
www.google.com
http://www.ukessays.com/essays/marketing/preferences-for-shopping-in-superstoremarketing-essay.php
http://www.scribd.com/doc/15025057/Report-on-impulse-buying
http://www.docstoc.com/docs/9566959/3154268-Rmt-Report-final
Shoaib, M., Bilal, M. Z., Iqbal, A., Hassan, S. A., & Sher, F. (2013). Mass media and
consumer purchasing behavior
Araib Khan
Page 33
8. APPENDIX
Araib Khan
Page 34
Name:
Gender:
Age:
Monthly Occasionally
> Rs.5001
6. What is the average time that you spend at Mega stores in each visit?
Approx. 1 hr. 1.01 hr. 2 hr. 2.01 hrs. 3 hrs. > 3 hrs.
7. On what basis do you make purchase of products?
Price Quality
Brand Fashion Color
8. Who influences your purchase at Mega stores?
Friends
Self
Family Spouse
Others
Others
Page 35
13. Rate how much importance you give to different aspects in supermarket.
(On scale 1-5, 5 is the most important and 1 is the least important)
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
Location
Variety
Price
Environment in general
Car Parking space
Deals/Discounts You get
Choosing Product Yourself
Status Symbol
More Space to walk around
Service provided by sales force
One stop shop
Cleanliness
Options
1
Rating Scale
3
A
B
C
D
E
F
G
H
I
J
K
L
Thank You
Araib Khan
Page 36
Araib Khan
Page 37
Araib Khan
Page 38