Evolutions of Mega Stores in Pakistan

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DEDICATION

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.

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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.

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LETTER OF TRANSMITTAL

Professor Dr. Shabib-ul-Hasan,


Associate Professor,
Department of Public Administration,
Karachi University.

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:

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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

Conclusion & Recommendations

29

09

References

32

10

Appendix

34

The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

RESEARCH PROCESS AT GLANCE


My research was based on several steps and through an entire process I have concluded certain
results. The research process included the follwing steps:
At the initial stage I had an idea of growing trends of supermarkets in Pakistan. To gain more
knowledge and to have a clearer picture I decided to conduct an exploratory research. The initial
research was conducted in terms of secondary research where articles on the internet and
magazines were viewed which confirmd the increased trend of supermarkets and highlighted
why people preffered going to supermarkets. The details of the exploratory research have been
mentioned in the research proposal.
Next step in the research process was to conduct various focus groups so that I have an idea
about the general opinion of different people and what do they have to say about the increasing
trends of supermarkets and also to gain their suggestions about the current scenario of
supermarkets. One of my aims was also to know the peoples opinion about the changes they
would want to see in the supermarkets in the future. These focus groups provided me with a
conclusion highlighting various factors as to why people prefer going to supermarkets.
Exploratory research helped me find out the alternatives and other concepts as to why people
preferred going to supermarkets, which helped making research objectives and research
questions and helped me framing my questions for the questionnaire. The initial research helped
me to create my mega hypothesis.
I then decided that my sampling unit will be households and sampling elements will be
individuals in the household who went to supermarkets, this defined my target population. Then I
decided that Non probability sampling will be done due to cost/time constraints. I did the
convenience sampling and got my questionnaire filled.
When the questionnaires were filled I did editing and coding. Editing in terms of finding out
what people wrote in close ended blanks to rectify them and coding was done for further
tabulation of the data.
After tabulation I started the work of hypothesis testing which made me come to my conclusion,
which you will see in the report.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

1. INRODUCTION

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

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.
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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

2. LITERATURE REVIEW

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


LITERATURE REVIEW:
A number of articles have been studied related to the topic, a review of them have been
mentioned below:
One of the article composed by Shoib Baig title future of retailing in Pakistan, he mentioned In a
report titled 'Hidden Heroes - The Next Generation of Retail Markets' (2011) published jointly
by Deloitte and Planet Retail, ten emerging economies, with huge potential for growth of retail
sector, were identified. Pakistan was included in the list of 'hidden heroes', ten markets which are
expected to register phenomenal growth in retail sector in coming years. (Business Recorder,18
Dec2012)
The significance of retail sector in our economy can be gauged from the data published by
Pakistan Bureau of Statistics according to which retail and wholesale sector worth is Rs 3.6
trillion representing around 18% of GDP 2011-12. Further, there are around 2 million retail
outlets in a country of 180 million people (India: 15 million outlets for 1.2B people). Out of
these retail outlets, approximately 800,000 outlets represent FMCG channels including 'kiryana'
stores (mom & pop), 'pan' shops, department stores, medical-cum-general stores and the
like. About two third of FMCG outlets consist of neighborhoods 'kiryana' stores, commonly
called general stores, which sell multiple brand grocery items of daily use. Such outlets are
generally owned by a single individual and managed by him alone or with some help from his
family members. Unlike developed markets, the majority of 'kiryana' stores in Pakistan do not
have walk- in areas and thus rely on counter sales only. (Pakistan Bureau of Statistics, 2012)
Another research was according to Agri-Food; Past, Present & Future Report of Pakistan,
Supermarkets are increasing in popularity and currently account for 10% of retail food sales.
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. Also factors like continued migration of rural consumers to
urban areas in search of work and an improved standard of living and the number of Pakistanis
returning to the country having worked abroad will also fuel growth of urbanization. These
factors will be underpinned by the increased penetration of supermarkets and hypermarkets in
urban Pakistan, which will be able to offer consumers a wide range of modern, convenient
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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


products at highly competitive prices. Throughout the country consumers will continue to
demand basic household care products they know to be effective, demonstrating little interest in
the short to medium term in highly advanced and expensive products or formats. (Government of
Canada, August2005)
One of the article written by Khoreng tatt tittle Factors Influencing Consumer Buying Behavior
of Luxury Branded Goods. Examination comes about shows that Perceived Social Status and
Brand Loyalty are essentially identified with the variables influencing Consumer Buying
Behavior where Price and Perceived Quality were fundamentally identified. After effect of SPSS
investigation demonstrated that month to month Income does not direct the collaborations
between the free variable, Brand Loyalty and subordinate variable, Consumer Buying behavior.
(Tatt, 2012)
One of the article published by William applebaum tittle Studying consumer behavior in retail
stores. The try has been made here to show along what lines and with what strategies
investigations of client behavior might be made in retail stores. Conceivable employments of the
outcomes for the result of promoting issues have been inferred or shown. The numerous
pragmatic uses to which such studies could be put by makers, producers and wholesalers might
require an arrangement of articlesmaybe a book. (Applebaum, 2003)
An article written by Muhammad Sajid Rasool, Yasir Rafique, Muhammad Akram Naseem,
Sana Javaid, Muhammad Najeeb, Muhammad Hannan tittle Impact of advertisement on
consumer buying behavior of fast moving consumer goods. This study tells us that consumer
behavior maintains because of society, when society, customs, patterns and traditions will be
change then client change their decisions. (Rasool, Rafique, Naseem, Javaid, Najeeb, & Hannan,
2012)

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

3. RESEARCH OBJECTIVE

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PROBLEM:
There is an ever growing trend of going to super markets for doing grocery or just regular
shopping for the items in need, in Pakistan. Our main purpose of conducting this study is to
know the shopping trends and patterns at super markets and why people prefer to go at super
stores. The purpose of the research is to find out various reasons for peoples preference to shop
in supermarkets.
PROBLEM STATEMENT:
The purpose of this study is to identify the increased shopping trends at super market and how
the services provided by these supermarkets can be improved.
SUB PROBLEMS:
Moreover, this study also attempts to ascertain the answers for the following sub problems:
1. What are the key factors that stimulate a customer preference to buy from a particular
supermarket?
2. What is the effect of customers socio economic classes on their buying behavior at
big super markets?
3. What are the reasons for increasing number of supermarkets in cities like Karachi and
consumer response towards these supermarkets?

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

To determine what other services can be added in supermarkets which consumers


would prefer.

To extract suggestions and find out the future of supermarkets in Karachi.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


HYPOTHESIS:
For the purpose of this study, the following hypotheses have been formulated:
1. Hypothesis 1: There is a bright future of super markets in Pakistan.
2. Hypothesis 2: Shopping at super market depends on the level on income and some
people think that they save when they shop from such markets.
3. Hypothesis 3: There is a huge change in trend of shopping and people are willing to go
to super market even if it is not near their home.
4. Hypothesis 4: Shopping at supermarkets like Naheeds and hyper star is fast becoming a
status symbol.
SCOPE AND LIMITATIONS
Although, there are many big super markets in Pakistan but this proposal is confined only to the
area of Karachi and is based on only the following super markets operating in the city i.e.
Naheed Supermarket, Imtiaz Supermarket and Metro supermarket, that trade in fast moving
consumer goods and household items.
There are certain factors, which limit the research on the above mentioned topic like

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

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

4. RESEARCH DESIGN

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


RESEARCH DESIGN:
The initial research would be conducted in terms of secondary research where online articles and
magazines would be studied in order to analyze the increased trend of Super markets and why
people prefer to go to super markets.
Next step in the research process is to getting people to fill out questionnaires; so that we have an
idea about the general opinion of different people and what do they have to say about the
increasing trends of Supermarkets. Answers from the questionnaires would also help to gain their
suggestions about the current scenario of supermarkets and what do they expect from them in the
future. This will also provide us with a conclusion highlighting various factors as to why people
prefer going to supermarkets.

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


DATA COLLECTION METHOD
Secondary Data: Research papers were studied on online libraries such as Scribd and JSTOR
were visited and some other published materials like newspapers, magazines, journals, reports
etc. were reviewed.
Primary Data: I collected information from the subjects by means of a survey. Furthermore the
major technique that we used to approach our subjects was the intercept technique i.e. approaching them without prior notification or appointment. Personal intercept interviews were used to
collect information in a face to face situation. The supermarkets covered were:

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.
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SAMPLE SIZE
Sample size is of 50 respondents from overall selected super markets based in Karachi.
SAMPLING PLAN
The interviewer was stationed at the super market exit to select a shopping party leaving the
super market after making some purchases. The respondent was qualified by determining
whether they were carrying any shopping packages and their willingness to participate in the
research. After introduction the researcher administered the questionnaire through a personal
interview. The questionnaire was completed and filled by the researcher himself. The interview
was terminated by thanking the respondents for their participation

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

5. DATA ANALYSIS

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


1. Are you a regular customer at Mega stores?
Options
Yes
No

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


2. How often do you visit Mega stores?
Options

No. of respondents
06
15
14
15
0

Daily
Weekly
Fortnightly
Monthly
Occasionally

visit Mega stores


Occasionally
0%
Monthly
30%

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.

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3. Which Supermarket(s) do you usually visit for shopping?
Options
Imtiaz
Naheed
Hyperstar
Aghas
Metro
Other

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


4. Please specify the range of your total monthly family income?
Options
< Rs. 25000
Rs. 25000 - 50000
Rs. 50000 75000
> Rs. 75001

No. of respondents
07
07
16
20

Total monthly family income

> Rs. 75001

Rs. 50000 75000

Rs. 25000 - 50000

< Rs. 25000

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


5. On an average how much money do you spend monthly at Mega stores?
Options
< Rs. 500
Rs. 500 1000
Rs. 1001 3000
Rs. 3001 5000
> Rs.5001

No. of respondents
1
3
8
10
28

Monthly spend at Mega stores


30

25

20

15

10

0
< Rs. 500

Rs. 500 1000

Rs. 1001 3000

Rs. 3001 5000

> 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.
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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


6. What is the average time per visit that you spend at Mega stores?
Options
Approx. 1 hr.
1.01 hr. 2 hr.
2.01 hrs. 3 hrs.
> 3 hrs.

No. of respondents
20
22
05
03

Time Spend at per Visit


25

20

15

10

0
Approx. 1 hr.

1.01 hr. 2 hr.

2.01 hrs. 3 hrs.

> 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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


7. On what basis do you make purchase of products?
Options

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


8. Who influences your purchase at Mega stores?

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


9. Would you like to have home delivery service?
Options

No. of respondents
16
17
17

Yes
No
Sometimes

Home delivery service


Yes

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


10. Would you like all employees in supermarket to have a specific dress code?
Options
Yes
No
Doesnt Matter

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


11. Would you like to be served beverages while shopping?

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

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12. Would you prefer some children playing area to be made?
Options
Strongly Agree
Agree
Disagree

No. of respondents
15
22
13

Children playing area


25

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.

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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)

Different important aspects rating


50
45
40
35

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

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

6. CONCLUSION AND RECOMMENDATIONS

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CONCLUSION & RECOMMENDATIONS:
Our research shows that buying from a supermarket is a phenomenon common amongst the
residents in Karachi as consumers get a wide range of modern, convenient products at highly
competitive prices in supermarkets. This can be because usually customers buy for the whole
family, not only for themselves. So as they shop they are reminded of the items needed by others
as they come across the products in supermarket and thus buy them. This has important
implications for the in-store placement of products. Products with which customers can be
attracted to buy, such as chocolates, drinks, chips, vegetables, meat, fruits, frozen food, spices
and other household & food items, are prominently displayed in supermarkets so as to generate
desire purchases. The impact of presence of shopping list, size of the shopping bill and number
of products purchased was found to be insignificant.
According to the analysis conducted on the questionnaires, 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 so after doing hypothesis testing I have concluded
the following results:

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.

People also prefer supermarkets, as shopping from a supermarket is reputable sign


because of the status symbol.

Super markets are preferred because of variety as compared to location.

Super markets are also preferred because of convenient parking.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


All the results obtained from our sub hypothesis as mentioned above helped us to prove my mega
hypothesis that there is a bright future of super markets in Pakistan.
From the analysis of the feedback of the customers it is recommended that:

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.

There has been a preference for children play area to be made.

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.

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

7. REFERENCES

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References:

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

Tatt, K. E. (2012). Factors influencing consumer buying behavior of luxury branded


goods

Shoaib, M., Bilal, M. Z., Iqbal, A., Hassan, S. A., & Sher, F. (2013). Mass media and
consumer purchasing behavior

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi

8. APPENDIX

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The Evolution of Modern Grocery Market. An increasing shopping trend in Karachi


QUESTIONNAIRE

Name:

Gender:

Age:

Marital status: single married

1. Are you a regular customer at Mega stores?


Yes
No
2. How often do you visit Mega stores?
Daily Weekly Fortnightly

Monthly Occasionally

3. Which Supermarket(s) do you usually visit for shopping?


Imtiaz Naheed Hyperstar Aghas Metro Other
4. Please specify the range of your total monthly family income?
< Rs. 25000 Rs. 25000 - 50000 Rs. 50000 75000

> Rs. 75001

5. On an average how much money do you spend monthly at Mega stores?


< Rs. 500
Rs. 500 1000
Rs. 1001 3000 Rs. 3001 5000

> 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

9. Would you like to have home delivery service?


Yes
No Sometimes
10. Would you like all employees in supermarket to have a specific dress code?
Yes
No Doesnt Matter
11. Would you like to be served beverages while shopping?
Yes
No May be
12. Would you prefer some children playing area to be made?
Strongly Agree
Agree Disagree
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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

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