Consumer Behaviour Project Report On Lifestyle International (P) Ltd

Submitted To: Dr. Sanjeev Kumar K.M.

Lifestyle is a well-defined retail concept that imbibes the essence of a woman. It offers a wide range of exclusive products that celebrate the free spirit of todays woman.
Arshita 4/30/2010

INTRODUCTION
Lifestyle is a well-defined retail concept that imbibes the essence of a woman. It offers a wide range of exclusive products that celebrate the free spirit of todays woman. From an exquisite variety of home dcor, home furnishing & bath decor to home fragrance, make-up, perfumes, fashion accessories, fashion bags, spa products and teen gifts, the Lifestyle woman is spoilt for choice. So when a woman visits Lifestyle, she is sure to indulge herself in a world which truly reflects her femininity and understands exactly "What a woman wants" One will be lured by Adore, a promising brand of Lifestyle offering a beautiful mix of products for todays woman and her home. Everything she wants, from pretty lamps to fashion accessories, curtains to cushions, mirrors to reflect her true self and much more are lined up to walk her through a world of dreams. MISSION STATEMENT Carefully listen. Constantly adapt. Always deliver. VISION STATEMENT To become the leading retail group in the Middle East and India, maintaining our constant growth through our core, value and international brand business. Brands available in Lifestyle: A host of exciting national and international brands are available such as: Formals : Allen Solly, Wills , Van Heusen, Blackberry, Color Plus, Ethnic : Biba, W, Ritu Kumar

Casuals : Bossini, United Colours of Benetton, Levis, Provogue, Sports : Adidas, Kappa, Nike

Private labels of Lifestyle: At LifeStyle, one can find a healthy mix of popular brands and private labels. Private labels in Lifestyle currently contribute to 10 per cent of the total business and now it is looking at expanding its range of private labels so that they can contribute 20 per cent in the long run. Formals Ethnic Casuals Sport : Code : Melange, Moiree : Zync, Ginger, Forca, Delure : Ginger- sport

HISTORY
Lifestyle is a retail concept established in 1998 by Landmark group. It has 79 stores across the Middle East and Egypt. It has an average store size of 3,000 sq. Ft 15,000 sq. ft and a total retail space of 534,158 sq. Ft. It consists of retails mix of in-house labels such as Adore, and international brands including Apsley, Woodwick and Happy House Lifestyle International (P) Ltd is part of the Landmark Group, a Dubai based retail chain. With over 30 years experience in retailing, the Group has become one of the foremost retailers in the Gulf.

About Landmark Group

The Landmark Group, founded in 1973 with a single store in Bahrain has grown into one of the largest retail conglomerates in the Middle East and is expanding rapidly in India. The Group currently operates over 900 stores encompassing a retail presence of over 13.4 million square feet across 15 countries and employs around 31,000 employees world over. In addition to its retail sector, the Group has also diversified into leisure, food, hotels and electronics and has created a comprehensive infrastructure including its own logistics and distribution division, to support its retail operations and other businesses.

Key Facts Turnover in excess of USD 3.2 billion Presence in 15 countries with over 900 stores Over 13.4 million square feet of retail space Team of over 31,000 employees

LIFESTYLE INDIA
Lifestyle International (P) Ltd is part of the Landmark Group, a Dubai based retail chain. With over 30 yearsexperience in retailing. Positioned as a trendy, youthful and vibrant brand that offers customers a wide variety of merchandise at an exceptional value for money, Lifestyle India began operations in 1999 with its first store in Chennai. Currently there are 15 Lifestyle stores and 8 Home Centre stores across Ahmedabad, Bangalore, Chennai, Hyderabad, Jaipur, Mumbai, Pune, New Delhi, Noida and Gurgaon. Currently in its 10 years of retailing in India, Landmark Group has launched several of its core retail concepts in the country including Lifestyle, Home Centre, Splash, Bossini, Max and hospitality concepts, Spar supermarkets and hypermarkets, Fun City, Citymax and Gloria Jeans Coffees. Recently lifestyle celebrated its 10th anniversary in India i.e. on September 23, 2009. It unveiled a special 10th Anniversary logoand announced host of attractive discounts, consumer offers and bumper prizes including foreign holidays, gift vouchers worth Rs.1lacs and much more. Its Anniversary promotions lasted for 99 days, longest in the history of Lifestyle

Supermodel Candice Pinto, Mr. Shankar Suryanarayan, CMO, Landmark Group, Kabir Lumba, Executive Director, Lifestyle International Pvt Ltd, and model Indranidas Gupta at Lifestyles 10th Anniversary Logo unveiling ceremony

CURRENT SCENARIO
Today Lifestyle offers a truly international shopping experience, a fact borne by numerous accolades.

Business World IMRB Most Respected Company Awards survey rated Lifestyle as the Most Respected Company in the Retail Sector in 2003 and 2004 ICICI KSA Technopak Award for Retail Excellence in 2005 Reid & Taylor Retailer of the Year award in 2006 Lycra Images Fashion Award for the Most Admired Large Format Retailer of the Year in 2006 Images Retail Most Admired Retailer of the Year Department Store in 2008.

Lifestyle also announced a slew of attractive offers and customer rewards on the occasion. Customers who shop at Lifestyle for merchandise worth Rs. 7,000, will receive Gift Vouchers(GV) worth Rs. 750 and upto 25% discounts at Home Centre in form of GVs on the purchase of furniture worth Rs. 20,000 and above. In addition, special offers will be available across select national and international brands like 40% discount on Hugo Boss merchandise, shop for Rs. 30,000 worth of Nirvana jewellery and get a diamond pendent free and so on. Rewarding the loyal customer base of over 1.1 million The Inner Circle (TIC) members, the group has announced the Merry Miles Fest. This will allow members to accumulate points over a period of 99 days, leading to exciting prizes such as holidays in Singapore and Malaysia and Cygnus Jewellery GVs. Top shopper from each of the North, South and West zone will get assured Lifestyle GVs worth Rs. 1 Lakh. In addition, TIC members who will shop over Rs. 7,000 will stand to gain 10 times the reward points. Commenting on the occasion, Mr. Kabir Lumba, Executive Director, Lifestyle International (P) Ltd. said, Its a proud moment for the Lifestyle team. We brought international shopping concepts & experience to India and our consumers have time & again reaffirmed their faith in us. With over 1.1 million Inner Circle members, we have one of the largest loyalty bases for a retail chain in India. Lifestyle stores are in a league of their own and we will continue with our robust expansion plans to ink a wider footprint. Added Mr. Shankar Suryanarayan, Chief Marketing Officer, Lifestyle stores are characterized by innovative offerings, a premium shopping experience and an exceptional product portfolio. Our 10th Anniversary is a milestone juncture to celebrate our relationship with our customers to whom we own our success. Therefore, we are offering a flurry of incentives and discounts, inviting our patrons to join us in celebrating this special occasion Offering a consistent international shopping experience, the Lifestyle store brings together five departments under one roof Apparel, Cosmetics & Fashion Accessories, Footwear & Luggage, Kidswear & Toys, Home furnishings. It is currently present across leading Indian cities including Ahmedabad, Bangalore, Chennai, Delhi NCR, Hyderabad, Jaipur, Mumbai and Pune.

SWOT Analysis of Lifestyle brands

Strength:
Eclectic mix between national, international and in house brands. Broader price range(mid- super premium) International ambience, fixturing and overall look and feel of the store. Fashionable yet affordable. Part of a bigger concept which includes Homecentre, Baby shop, Shoemart which gives it a competitive edge over other MBOs like Shoppers Stop. High quality and very fashion forward.

Weakness:
Ethnic wear section needs improvement in terms of fabrics and brands available. Less visibility and recall of the store as compared to other MBOs due to number of stores being limited in Bangalore. Marketing in terms of billboards , magazines, newspapers can be further taken advantage of which it is not doing now.

Opportunities:
Plus size category for Western Formal Wear has a growing demand in India. It should be capitalized by Lifestyle. Increase the number of in house private labels in order to increase profitability and brand/store recall. More visible marketing in terms of billboards /promotions etc. Increase brand image building for in house private labels through separate campaigns outside the store to increase awareness amongst customers.

Threats:
More and more international brand entering the market. Malls and EBOs stand as the biggest competitors. Extremely competitive pricing in the market such as Shoppers Stop , Pantaloons with their multiple discount offers.

SEGMENTATION
SEGMENTING VARIABLES
Market segmentation is defined as the division of a particular market into different segments or sub markets according to different factors. The segmentation of market dpends on various factors : Geographic factors Demographic factors Psychographic factors Behavioural factors

MARKET SEGMENTATION OF LIFESTYLE

GEOGRAPHIC
Country India

DEMOGRAPHIC:
Age Gender Income Occupation 25 45 Male & female Rs. 2 lakh and above annual income College going youth and working population

PSYCHOGRAPHIC:
Social class Lifestyle Personality Middle class, Upper middle class, Higher Achievers and strivers Ambitious and authoritarian

BEHAVIORAL:
Occasions Benefits Readiness stage Attitude towards product Regular and special Convenient, economical and status oriented Aware, interested, intending to buy Enthusiastic

TARGETING
TARGETING refers to a set of buyer sharing common needs or characteristics that the company decides to serve. Target market is chosen after the segmentation of the markets. Most companies realize that they cannot effectively serve all the segments in a market, and must instead target their marketing efforts.

TARGET MARKET OF LIFESTYLE

Lifestyle targets Young, Urban, Contemporary, Chic The target market is the huge upper middle class and higher class population.

POSITIONING
Positioning refers to the way the product is defined by consumers on important attributethe place the product occupies in consumers mind related to competing products.

POSITIONING OF LIFESTYLE
LIFESTYLE is positioned as a contemporary, youthful, chic urban brand.with tag line as Your Style, Your Store

The line aims to

Build Affinity & Establish a strong connect with the Target Group.

Envisioned Future
To be among the top 100 retailers worldwide, with a top 20 ranking in profitability by 2015

The Statement of Purpose

Creating exceptional value for all those whose lives we touch To be recognized as an international, diversified retail conglomerate that encourages entrepreneurship and which consistently delivers exceptional value to their customers and business partners. They believe in delivering unmatched values tangible and intangible for all those whose lives they touch.

CORE VALUES:
Passion for excellence. Integrity in everything we do. Empowering people to strive and deliver. Adapting to changing market and customer needs.

GROUP PHILOSPHY
Complete customer satisfaction To aspire to be the no.1 in each field of operations International standards Research and development Manpower development and training Total quality approach Cost control Speed and simplicity Transparency

Research Methodology
Title:
To study consumer behaviour of a well known retail concept Lifestyle.

Objectives:

To study preferences of Lifestyles customer towards its product, prices, colors, styles. To analyze the brand with respect to its competitors (perpetual mapping). To know consumers preference for certain attribute like Brand image, quality of merchandise etc. To study the consumers perception about the private labels of Lifestyle.

Type of research:
Descriptive research was carried out in the form of questionnaire survey. Data was collected from the sample belonging to upper middle and upper class of the society. The data was collected from Oasis and Forum mall in Kormangala.

Data collection:
Sample size: the sample size is 50. Primary research: it is carried out through closed ended and open ended Questionnaire. Secondary research: Internet, Magazines, Companys website and talking to people from
the company.

Sampling techniques: the method of sampling used was non-probability and

convenience sampling.

Data collection and tabulation:

be prepared.

through graphs and statistics. Coding sheet will

Limitations of the study:

The consumer survey was restricted to Bangalore. The sample size covered for the consumer survey was very small due to constraints on manpower and time.

Recent Development
Lifestyle International Pvt. Limited launched its 3rd Lifestyle and Home Centre stores in Bangalore.

Situated at the Mantri Square, Malleshwaram, in the city, the new stores are spread across three floors, encompassing 80,000 sq. ft. of space. Present in the occasion was Ramnathan Hariharan, Director, Landmark Group, who spoke about the groups association with the city so far. Bangalore is home to many of our local customers. We are truly delighted to launch our third Lifestyle store and exclusive Home Centre stores at Mantri Square, making our offerings even more accessible to the residents of Malleshwaram and nearby areas. Home Centre by Lifestyle is a one-stop destination for furniture, home ware and home furnishings. With over three decades of experience in retailing, the Group has become one of the foremost retailers in the Gulf. Lifestyle is a part of the Dubai-based Landmark Group, which began its Indian operations in 1999, with Chennai being the first city to have its store. Speaking about Bangalore, Kabir Lumba, Managing Director, Lifestyle International Pvt. Limited, said, Lifestyle and Home Centre by Lifestyle have been the most preferred shopping destinations of Bangalore. The new stores have been launched with the aim of getting a step closer to our customers in old Bangalore. He added, By the virtue of the value and experience offered, we are confident that the new stores will become a preferred shopping destination for the customers in this area. Spread across 50,000 square feet, the new Lifestyle store is believed to redefine the concept of shopping by its classy consumer friendly interiors. The store will offer consumers, the choice of 250 national and international brands across a number of categories, which includes Apparel, Cosmetics, Footwear, Toys & Children wear. Speaking about the new store, Mr. Lumba said, Its a momentous occasion for all of us to have come out with our third store in

the city. Bangalore has been a great place for us, and show great pride on that. He added, We expect a growth rate of 40 to 45 per cent in the next two to three financial year, and so far, we have met all our expectations except a few delays. We have had a delightful journey in the last ten years, and we certainly are looking forward to the coming years too. Adding to this, Ramnathan Hariharan, Director (Landmark Group) said, India is close to our heart, and our major growth has been from Lifestyle stores. Its the flagship brand in the country, and is in a leadership position now. We dont want to put in a lot of stores, but help in creating a niche. Speaking about the future plans, he said, We will soon open our stores in Coimbatore, Mangalore, Mysore and Pune. The whole of South has been very good with us in terms of business, and we have got a huge number of loyal customers from this region. Speaking about the Indian venture of the Group, Vipen Sethi, CEO, Landmark Group, said, I would like to thank the Indian team for the work they have done in all these years. The kinds of growth we have seen in this country have just increased our expectations level, and we have been investing a lot of money here. Bangalore is one of the citys that has a lot of potential in the country, and we have had a great experience so far. The Landmark Group, founded in 1973 with a single store in Bahrain, has grown into one of the largest retail conglomerates in the Middle East and is expanding rapidly in India. The Group currently operates over 900 stores encompassing a retail presence of over 13.4 million square feet across 15 countries. In addition to retail sector, the Group has diversified into leisure, food, hotels and electronics. The Group has been in India since 1999, and has currently 17 lifestyle, 11 exclusive Home Centre by Lifestyle and 4 Splash stores across the country.

Perceptual Mapping
Perceptual mapping has been used as a strategic management tool for about thirty years. It offers a unique ability to communicate the complex relationships between marketplace competitors and the criteria used by buyers in making purchase decisions and recommendations. Its powerful graphic simplicity appeals to senior management and can stimulate discussion and strategic thinking at all levels of all types of organizations. Perceptual mapping can be used to plot the interrelationships of consumer products, industrial goods, institutions, as well as populations. Virtually any subjects that can be rated on a range of attributes can be mapped to show their relative positions in relation both to other subjects as well as to the evaluative attributes. Perceptual maps may be used for market segmentation, concept development and evaluation, and tracking changes in marketplace perceptions among other uses. Perceptual mapping involves two steps: (1) data collection and (2) data analysis and presentation.

Data Collection
Among the various mathematical and statistical methods used to produce perceptual maps, POPULUS has foundand published research to this effectthat multiple discriminant analysis provides the most reliable methodology. Among the reasons for this are: 1. Discriminant analysis has a close linkage between product points and attribute locations. 2. Discriminant analysis maps do not change if attributes are added that are linear combinations of those already present in the perceptual space. 3. Discriminant analysis is alone in paying attention to between product information, after scaling it so that within product differences are equal for each dimension and uncorrelated. That means that DA uses a yardstick to give every dimension common metric (in terms of equal unexplained variance). 4. Discriminant analysis is the most efficient method in terms of cramming into a space of low dimensionality the most information about how products differ. 5. Unlike mapping based on distances or similarities, DA make use of attribute ratings, which are easy and natural for respondents, and useful for their content even if mapping is not done with them. 6. POPULUS research [Fiedler, 1996] has shown that DA was more successful that Correspondence Analysis at reproducing a known map when the data were distorted in various ways. Employing this methodology, respondents are never asked about similarities among products or subjects; they are asked to rate products on attributes, and similarities are inferred from differences in respondents ratings.

The data required for perceptual mapping thus comes from rating scales where the subjects of the map, from products to populations, are described on the basis of selected attributes. The validity of the map depends on both the overall set of attributes and the subjects of the study as well as the subset of attributes and subjects evaluated by each respondent. Most studies suffer from too many attributes. Manufacturers and service providers see hundreds of ways in which their products and services differor might differfrom those of their competitors. Often the research analyst is unable to impose the discipline necessary to develop a reasonably short list of attributes. In most studies, it is usually desirable (or necessary) to select a subset of attributes for respondents to rate. This can be accomplished by using one of two approaches: 1. Select a subset of most important attributes. Each respondent rates all attributes on importance. The questionnaire is programmed to select a subset of the important attributes for rating. This may assure more meaningful questionnaires for respondents. 2. Randomly select a subset of attributes. The questionnaire randomly selects a subset of attributes for each respondent. This has the advantage that there will be roughly equal sample sizes for each of the evaluative criteria. The obvious disadvantage is that the respondent task may be less interesting. Research by POPULUS has shown that the first alternative provides for a greater correlation between discrimination and importance.

Data Analysis and Presentation

Multiple discriminant analysis uses the F ratio to determine attribute and product or subject location in the perceptual space. The F ratio is a ratio of the variance between ratings of different products/subjects to the variance of ratings within products/subjects. In an attribute study, these variations among ratings are generally oftwo types: 1. The differences between products/subjects, revealed in the difference between average ratings for different products. 2. The differences within products, revealed in the differences among respondents ratings of the same product. An attribute would have a higher F ratio either if its product averages were more different from one another, or if there were more agreement among respondents rating the same product. Multiple discriminant analysis finds the optimal weighted combination of all the attributes which would produce the highest F ratio of between-product to within product variation. That weighted combination of attributes becomes the first dimension of the perceptual map.

Perceptual Mapping