Tommy Hilfiger Impt. File
Tommy Hilfiger Impt. File
ON
Bachelor of Commerce
Of
Submitted By
Jasdeep singh
15BCM1317
Batch: 2015-18
Under the Guidance of
APPOINTMENT LETTER
I hereby declare that the project report entitled “Customer relation office in Tommy Hilfiger”
submitted by me to “Chandigarh University” in partial fulfilment of the requirement for the
work in degree of bachelor of commerce is a record of bonafide project work carried out by
me under the guidance of Miss Rekha thakur and Ms pooja kanwar (HM & ASM of MBD
store) .
PLACE: Ludhiana
TOMMY HILFIGER
Tommy Hilfiger, formerly known as Tommy Hilfiger
Corporation and Tommy Hilfiger Inc., is an American
multinational corporation that designs and manufactures
upper market apparels for men, women and children,
and a wide range of licensed products such as footwear,
accessories, fragrances and home furnishings.[5] The
company was founded in 1985 and today is sold in
department stores and over 1400 free-standing retail
stores in 90 countries. In 2006, private equity firm Apax
partners acquired Tommy Hilfiger for approximately $1.6
billion, and in May 2010, PVH Corp. (NYSE: PVH) (then
known as Philips van Heusen) bought the company.
[9]
Daniel grider was appointed CEO in July 2014, while
founder Tommy Hilfiger remains the company’s principal
designer, leading the design teams and overseeing the
entire creative process. Global sales in retail through the
brand in 2013 were US $6.4 billion, and $6.7 billion in
2014.
INTRODUCTION
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TO CONSUMER BEHAVIOUR
Consumer behaviour is the study of individuals, groups, or organizations and the processes
they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy
needs and the impacts that these processes have on the consumer and society. It blends
elements from psychology, sociology, social anthropology, marketing and economics. It
attempts to understand the decision-making processes of buyers, both individually and in
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groups such as how emotions affect buying behaviour. It studies characteristics of individual
consumers such as demographics and behavioural variables in an attempt to understand
people's wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups, and society in general. The Management of PROCTER & GAMBLE
once stated : "Our business is based on understanding the consumer and providing the kind of products
that the consumer wants. We place enormous emphasis on our product development area and our
marketing area, and on our people knowing the consumer.” The human mind is the most complex entity
in the whole universe as it is very unpredictable how a person would behave in or react in a particular
situation..A person’s behaviour changes from place to place and situation to situation or, say it is very
inconsistent. The person when has a need, is willing and able to satisfy the need is called
a consumer.
Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour
is difficult to predict, even for experts in the field. Relationship marketing is an influential
asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship
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management, personalisation, customisation and one-to-one marketing. Social functions can
be categorized into social choice and welfare functions.
The term consumer behaviour is defined as the behaviour that consumer display in
searching for, purchasing using, evaluating and disposing of products and services that they
expect will satisfy their needs.
Consumer behaviour focuses on how individuals make decisions to spend their available
resources (time, money, effort) on consumption-related items that includes what they buy,
why they buy, when they buy it, where they buy it, how often they buy it, how often they use
it, how they evaluate it after the purchase and the impact of such evaluations on future
purchases, and how they dispose of it.
Two different kinds of consuming entities: the personal consumer and the organizational
consumer.
Personal Consumer Buys goods and services for his or her own use, for the use of the
household or as a gift for a friend. The products are bought for final use by individuals, who
are referred to as end users or ultimate consumers.
Organizational Consumer Includes profit and non-profit businesses, government
agencies (local, state, national) and institutional (e.g. schools, hospitals, and prisons), all of
which buy products, equipment, and services in order to run their organization. The consumer
wouldsatisfy it’s needs depending on his social, cultural, family, economic andeducational ba
ckground. Consumer is the principle a priori of business. The efficiency with which a free
market system of enterprise operates, depends upon the extent of consumer
understanding possessed by the business community. A business community that is ignorant
of consumer preferences cannot possibly fulfil it’s obligations in a meaningful and responsive
manner. So here comes the need to study.
Consumer Behaviour is broadly defined as “the behaviour the consumer displays
in searching for, purchasing, using and evaluating products, services, and ideas which they
expect will satisfy their needs.” It is not only the study of what people consume, but is also
the study of who the consumers are, why they consume, how often they consume, and under
what conditions they consume .CONSUMER BEHAVIOUR refers to the buying behaviour
of ultimate consumers, those persons who purchase products for personal or household
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use, not for business purpose. There are Psychological Theories that help us to
understand and predict the effect of all external and internal factors on a consumer.
External factors include Culture, Society, Reference group and family etc. Internal
factors comprise in a consumer mind and how consumers learning, memory, attitude, personality,
lifestyle and motivation levels effect consumer behavior. What would initiate a buying process
and how a buying decision would end is all covered under the study of consumer
behaviour. This all further helps relate product /
service, price and promotion etc. with consumer behaviour. Thusorganisation can place marketing mi
x so as to propogate their product/services.The present study on SHAMPOO is also trying to
find Consumer Perception about different features of Shampoos and how Price,
Environment, Packaging, Quantity, Easy Availability and Variety are affecting the sale of
Shampoo’s.
PSYCHOGRAPHIC
In psychographic segmentation buyers are divided into different groups on the basis of
lifestyle and \ or personality. People within the same demographic group can exhibit very
different psychographic profiles. These psychographic bases are often difficult to measure, but they
offer potential rewards in terms of providing management with a more relevant basis for
differentiating between segments of a market.
LIFESTYLE
People exhibit many more lifestyles than are suggested by the seven social classes. People’s product
interests are influenced by their lifestyles. In fact the goods they consume express their lifestyles.
Marketers are increasingly segmenting their markets by consumer lifestyles. Companies making
cosmetics, alcoholic beverages, and furniture are always seeking opportunities in lifestyle segmentation.
PERSONALITY
Personality affects the consumption of many goods, particularly those consumed publicly. An
aggressive personality for example, may be reflected in the choice of ostentatious clothing, furniture,
and automobiles. Preferences are frequently so different that it is impossible to serve all personality
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types with the same productor brand. A recognition of important personality types can help
management “position” it’s towards a profitable segment or segments. Marketers have used
personality variables to segment markets. They endow their
products with brand personalities that correspond to consumer personalities.
The field of consumer behaviour is rooted in the marketing concept, a business orientation
that evolved in the 1950s through several alternative approaches toward doing business
referred to respectively: -
1) The Production Concept.
2) The Product Concept.
3) The Selling Concept.
4) The Marketing Concept.
5) The Societal Marketing Concept.
The production concept assumes that consumers are mostly interested in product
availability at low prices; its implicit marketing objectives are cheap, efficient product and
intensive distribution.
It makes sense when consumer are more interested in buying what’s available rather than
wait for what they really want.
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The product concept assumes that consumers will buy the product that offers them the
highest quality, the best performance, and the most features.
It ensures the company to improve the quality of its product and add new features.
The product concept often leads to “marketing myopia” that is focusing on the product
rather than the customer needs.
The assumption of the selling concept is that consumers are unlikely to buy the product
unless they are aggressively persuaded to do so – mostly through “hard sell” approach.
The problem in this concept is that it fails to satisfy a customer.
Promotion can be done through advertisement, sales promotion and public relation.
Today the selling concept is utilize be marketers of unsought products – that is which
people are not willing to buy it (such as life insurance).
It started in 1950’s when some marketers realized we can sell more products by
determining what consumer would buy.
Consumer need and wants became the firm’s primary focus.
The marketers should made product what t can sell, instead of what it has made.
STARTING POINT FOCUS MEANS ENDS
SELLING CONCEPT
MARKETING CONCEPT
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Developing that product which benefits the society. Doing marketing in such a way that it
helps you in increasing your production & also giving benefits to society.
The organization should determine the needs, wants and interest of target markets and
deliver the desired satisfaction more effectively and efficiently then do competitors in a way
that maintains or improves the customers and society’s well being.
Consumer research describes the process and tools used to study consumer behaviour.
Two theoretical perspectives that guides the development of consumer research: -
Positive Approach It tend to be objective and empirical, to seek caused for behaviour,
and to conduct research studies that can be generalized to larger population.
Interpretivists the research done by Interpretivists, on the other hand tends to be
qualitative and based on small samples.
MARKET SEGMENTATION
Dividing a market into distinct groups of buyers with different needs, characteristics or
behavior who might require separate products or marketing mixes.
Market consists of buyers and, buyers differ in one or more ways. They may differ in their
wants, resources, locations, buying attitudes, and buying practices.
MARKET POSITIONING
Formulating competitive positioning for a product and a detailed marketing mix.
Developing a distinct image for the product or service in the mind of the consumer, that will
differentiate with the competitors.
MARKET TARGETING
The process of evaluating each market segments attractiveness and selecting one or more
segments to enter.
MARKETING MIX
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The marketing mix consists of a company’s service and/or product offerings to consumers
and the methods and tools it selects to accomplish the exchange. The marketing mix consists
of four elements:
1) The product or service that is the features, designs, brands, and packaging offered, along
with post purchase benefits such as warranties and return policies.
2) The price – the list price, including discounts, allowances, and payment methods.
3) The place – the distribution of the product or service through specific store and non store
outlets.
4) Promotion – The advertising, sales promotion, public relations, ad sales efforts designed
to build awareness of and demand for the product or service.
Savvy marketers today realize that in order to outperform competitors they must achieve
the full profit potential from each and every customer. The three drivers of successful
relationship between marketers and customers are customer value, high levels of customer
satisfaction, and building a structure for customer retention.
Customer value is defined as the ratio between the customers’s perceived benefits
(economic, functional and psychological) and the resources (monetary, time, effort,
psychological) used to obtain those benefits. Perceived value is relative and subjective.
Example: McDonald’s Corporation to deliver the company’s four core standards; quality,
service, cleanliness, and value.
2) CUSTOMER SATISFACTION
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Loyalists Who keeps purchasing, they are satisfied completely.
Apostles Whose experiences exceed their expectations and who provide very positive
word of mouth about the company to others.
Defectors Who feel neutral or merely satisfied and are likely to stop doing business with
the company.
Terrorists Who have had negative experiences with the company and who spread
negative word of mouth.
Hostages Who are unhappy customers who stay with the company because of a non
polistic environment or low prices and who are difficult and costly to deal with because of
their frequent complaints?
Mercenaries Who are very satisfied customers but who have no real loyalty to the
company and may defect because of a lower price elsewhere or on impulse, defying the
satisfaction-loyalty rationale.
The researches purpose that companies should strive to create apostles, raise the
satisfaction of defectors and turn them in to loyalist avoid having terrorists or hostages and
reduce the number of mercenaries.
3) CUSTOMER RETENTION
Customer retention makes it in the best interest of customers to stay with the company
rather than switch to another firm.
Loyal customers buy more products.
Loyal customers are less prices sensitive and pay less attention to competitor’s advertising.
Servicing existing customers, who are familiar with the firm’s offerings and processes, is
cheaper.
Loyal customers spread positive word of mouth and refer other customer.
Customer profitability-focused marketing tracks costs and revenues of individual
customers’ ad then categorizes them into tiers based on consumption behaviours that are
specific to the company’s offerings.
Recent Study advocates using “customer pyramid” where customers are grouped in 4 ties:
1) The Platinum Ties Includes heavy users who are not price sensitive and who are willing
to try new offerings.
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2) The Gold Tier It consists of customers who are heavy user but not as profitable because
they are more price sensitive than those in the higher ties. Ask for discount and buy from
several providers.
3) The Iron Tier It consists of customers whose spending volume ad profitability do no
merit special treatment from the company.
4) The Lead Tier It includes customers who actually cost the company money because
they claim more attention than is merited by their spending.
Consumer Behaviour was a new field in the mid of late 1960, because the marketing
theorists borrowed the concepts from other scientific disciplinary that is :-
Psychology The study of the individual,
Sociology The study of groups,
Social Psychology The study of how an individual operates in groups,
Anthropology The influence of society on the individual, and
Economics To form the basis of the new marketing discipline.
Many Early theory based on economic theory on the notion that individuals are rationally to
maximize their benefits.
The process of consumer decision making can be viewed as three distinct but interlocking
stages: the input stage, the process stage, and the output stage.
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The Input Stage Influences the consumer’s recognition of a product need and consists
of two major sources of information, the firm’s marketing efforts (the product itself, its price,
its promotion and where it is sold) and the external sociological influences on the consumers.
The Process Stage It is the model focuses on how consumers make decisions. The
psychological factors inherent in each individual.
The Output Stage It is the consumer decision making model consists of two closely
related post decision activities.
SPORTS RETAIL
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Motivation behind the Study
•Lack of official data •In most countries contribution of sports sector to GDP is less than 5%
strong inter linkages with other sectors like tourism, audio-visual, etc. Multiplier
effect
•Size of global market: $284 bl. in 2008 –growing at 4% (before •Size of global market:
$284 bl. in 2008 –growing at 4% (before slowdown) •Global market driven by sports
apparel –50% of total demand
•US is largest market for sports products –1/3rdof global market •Asian market is currently
less than 25%
•Major exporters: China, Hong Kong, France, Italy, Germany, US •Major importers: US,
Japan, Germany, France, UK, Italy
•Constitute2.7%oftotalretailmarket
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•Organisedretailmarketshare–10%
•Manufacturinggrowingat10%-12%
•Among largest sports goods manufacturers inAsia after China and Japan
•Sports“ culture”…..?
•Consumers changing
•International sports
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Retail Policy in India
•100% FDI is allowed in cash and carry wholesale trading –automatic route
•100% FDI in whole sale cash and carry most suitable for volume business
•Direct selling is a part of wholesale trading: Potential route for sports and fitness goods
retailers
•Most foreign retailers enter through exclusive licensing and distribution agreements e.g.
Lotto Sports Italia
•Wholly owned subsidiary through setting up manufacturing e.g. Nike, Reebok, Adidas
India ranked quite low (39th) among 67 countries in terms of the percentage of international
retailers in 2008
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Industry Facts
Drivers: Increased spending power; Increase in number of sports events; Growing health &
fitness awareness; Unsaturated market; Increasing organised retail space.
Challenges: Low sports participation rate; Competition from unorganised players; Poor
sports infrastructure; Imposition of excise duty.
Trends: Players sponsoring major sports teams and events; Tie-ups with renowned Indian
designers; Players roping in celebrities for brand endorsements; Sportswear being one of the
niche sections of the retail industry is witnessing steady growth; In India, sports is mostly
treated as a recreational activity; Organised sportswear industry is dominated by major
international brands – these players have outsourced a considerable part of their production to
Indian manufacturers; Sportswear includes sports apparel, footwear and accessories; Sports
shoes account for a major sales chunk of the total sports products market.
With further support from the government, the scope for growth in the sports sector is
definite, just that the policies need fine tuning, which will equip the retailer to operate in a
harmonious manner.
Barriers in Retail
• Key problems of corporate and traditional retailers are same, impact may be different:
• Small consumer base, low brand loyalty, limited knowledge about use and technology:
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• Lack of integration among export promotion councils, manufacturing sector
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INTRODUCTION TO DECATHLON
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DECATHLON SPORTS
Decathlon
Industry Retail
Founded 1976
Products Clothing
Sportswear
Sports equipment
Number of 65,000
employees
Website www.decathlon.co
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Decathlon is one of the world's largest sporting goods retailers.
Decathlon started with a store in Lille, France in 1976, founded by Michel Leclercq. It started
to expand abroad a decade later, to Germany in 1986, Spain in 1992, Italy in 1998, Portugal,
the United Kingdom in 1999, China in 2003, India in 2009 and Southeast Asia in 2012.
Today, there are more than 850 stores in 22 countries. The company employs more than
60,000 staff from 80 different nationalities.
The retailer stocks a wide range of sporting goods, from tennis rackets to advanced scuba
diving equipment, usually in large superstores which are sized at an average of
4,000m².Decathlon Group also owns 20 brands, with research and development facilities all
over France to develop the latest innovative designs, registering up to 40 patents per
year. Each brand represents a different sport or group of sports, with a dedicated product
development and design team.
Decathlon Group also owns the Toboggan and Decath stores, the former sells sporting goods
at discount prices, whilst the latter is a smaller high street sized version of the larger
Decathlon superstores
40 YEARS OF SPORT
In 1976, the AS Saint-Etienne football team turned France green with their epic European
tale, Guy Drut hoisted the Tricolor at the pinnacle of athletic achievement, and a certain
Bernard Hinault amassed an impressive stash of amateur titles. Sport has always been high on
the agenda in France, and it was becoming more popular all the time. It was during this
boom with sporting federations and clubs boasting seven million members, that the
Decathlon adventure began, in the car park of the Auchan shopping centre in Englos, about
thirteen miles from Lille.
The very first Decathlon opened its doors on 27 July 1976. It soon had everyone talking: a
store dedicated exclusively to sport was something of a revolution! For the very first time,
people who enjoyed playing sport could find a wide range of equipment and clothing all
under one roof and at extremely competitive prices.
Right from the beginning we believed in the following: A simple P+L by department (ten)
which we looked at every week. Thanks to measuring like this locally we put the decision
making close to the customer. It gambles on the local person in charge but I believe if you do
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not gamble on people locally then you do not win. An individual meeting every month on the
shop floor with everyone with a written summary. No offices including the leader / manager.
Everyone had to be obsessed with the customer. No delivery bay. The product is the hero of
the store. Not the furniture and fittings. The costs are the lowest in the market (with many
sacrifices) to allow the cheapest prices. Other competitors will succeed in different ways but
it will not work if we copy. The most important is to keep things coherent between the
strategies for the customer and the leader has to guarantee this coherence. We worked hard
but really had a lot of fun and laughter. It is important. As an adult 25 years after starting with
now 20000 employees we try to push our values (dynamic, sincere, responsible, and
generous) throughout the world and I am proud we do that together. Michel Leclercq
1976 Lille France 1986 Germany 1992 Spain 1993 Italy 2001 Brazil 2003 China 2006 Russia
2009 India 2016 Australia & South A
Belgium: 26 stores
Brazil: 19 stores
Bulgaria: 4 stores
Czech Republic: 9 stores
China: 169 stores
Croatia: 4 stores
France: 302 stores
Germany: 32 stores
Hungary: 17 stores
India: 38 stores
Italy: 107 stores
Kuwait: 1 store
Malaysia: 1 store
Netherlands: 7 stores
Poland: 45 stores
Portugal: 28 stores
Romania: 17 stores
Russia: 40 stores
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Slovenia: 1 store
Slovakia: 3 stores
Spain: 139 stores
Singapore: 2 stores
Sweden: 2 store
Turkey: 18 stores
Taiwan: 8 stores
United Kingdom: 22 stores
United States: (closed 2006)
Lebanon: 1 store
United Arab Emirates: 2 store
Morocco: 4 stores
Thailand: 5 stores
Online delivery has been introduced in Belgium, France, The Netherlands, United Kingdom,
Germany, Turkey, India, Italy,[7] Singapore, Spain, Brazil, Portugal and more recently
Ireland.
In India, Decathlon products can be bought directly through their stores subsequent to change
in India's FDI policy and approval for Decathlon in February 2013.[8] In addition to this,
Decathlon products are also available online through their online resellers.
At Oxylane, 60,000 of us live our common Purpose on a daily basis: to make the pleasure and
benefits of sport accessible to all. In every country where we are present, we share a strong
and unique company culture, reinforced by our four values: Vitality, Sincerity, Responsibility
and Generosity. At Oxylane, we place innovation at the heart of our activities: from research
to retail, including conception, design, production and logistics. Our twenty Passion Brand
teams channel all their energy in to developing technical, good-looking and simple products,
always at the lowest possible prices. These products are aimed at all sports enthusiasts, from
beginners to experts, and are sold exclusively at Decathlon.
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OXY + LANE = OXYLANE
Decathlon Values
All over the world, Decathlon shares a strong and unique company culture reinforced by four
values: Vitality, Sincerity, Responsibility and Generosity.
Vitality
Vitality is Life, intense activity, energy, drive and vigour. The employees are full of vitality
as they are first and foremost positive and full of energy. They are enthusiastic, they love
creating and innovating, and relentlessly strive to improve and make things around them
change.
Sincerity
Sincerity is transparency in its actions, amongst themselves, with their customers and with
the suppliers. They want there to be a great deal of coherence between ‘what we say’ and
‘what we do’.
Responsibility
Being responsible is about making decisions and making sure they are acted upon. The
employees assume the consequences of their decisions, both in terms of their team and their
customers. Responsibility is also about anticipating the challenges facing society and
orienting their actions towards sustainable development. And it is also their responsibility to
guarantee the safety of their customers and employees all over the world.
Generosity
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The retailer develops and sells its own brands. Each sport or group of sports has a
separate brand name:
Aptonia - Nutrition and Healthcare
Artengo - Racket Sports
B'Twin - Cycling
Caperlan - Fishing
Domyos - Fitness, Gym, Yoga, Dance, [9]
Fouganza - Horse Riding
Geologic - Target Sports such as Archery, Darts and Pétanque
Geonaute - Sports Electronics
Inesis - Golf
Kalenji - Running
Kipsta - Team Sports
Nabaiji - Swimming
Newfeel - Walking and Urban Wear
Orao - Eyewear and Optical Accessories
Oxelo - Rollersports, Skating and Scooters
Quechua - Hiking, Camping and Outdoor Gear
Simond - Mountaineering
Solognac - Hunting
Tribord - Watersports
Wed'Ze - Skiing and Snowboarding
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Brands providing technical support for the products of its passion brands:
Its success has greatly contributed to the decline of selling prices in France, while the
innovation of its own brands has caused great difficulties for other traditional manufacturers.
2008 was a record year for the company as the brand Decathlon had beaten all its competitors
on three key points: margin, market share, and highest turnover per square meter of retail
space. It is arguably the third at a global level. A 2008 survey of 774 catchment areas at the
request of the Ministry of Economy and Finance shows that "for sporting goods, Decathlon is
dominant in 92.8% of zones". This dominant position has the effect of marginalizing its
commercial competitors, including independent retailers.
COMPETITION
In 2009, Decathlon's sector rivals, Go Sport (fr) and Sport 2000, joined forces to set up a common
purchasing centre in Switzerland, intended to "pressurize most of the major international
suppliers", according to François Neukirsh, Managing Director of Go Sport, in the
newspaper Les Échos. Otherwise, the company does not have significant competition due to
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their specific target audience in mass-market retail. In India its major competitors are Adidas,
Nike and Reebok.
We design, we manufacture & we sell products that are technically as superior as they
are affordable to all Indians
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DECATHLON SPORTS INDIA GENERAL TERMS AND CONDITIONS
We are a wholesale company which consists of the sale of goods to retailers, industrial,
commercial, institutional, or other wholesalers and related subordinated services. All our
Customers shall submit to DECATHLON SPORTS INDIA (DSI) a photocopy of a valid
certificate of Registration along with a completed registration form, the signed General
Terms and Conditions of Sale and authorisation letter (if the authorised signatory further
authorises another person of the organisation). The submitted documents for registration must
be true, complete and correct. Any liability or damages arising to DSI due to any wrong
declaration or due to a purchase made in violation of this agreement shall be indemnified to
DSI by the Customers. Persons below the age of eighteen years cannot be authorised. The
present Terms and Conditions of Sale have been drawn up exclusively to govern dealings
between DSI and any organisation making a purchase via DSI's website or directly at DSI's
distribution centre, hereinafter referred to as “the Customer”, and together as “the Parties”.
Protected Elements: All the elements protected in conformance with the rights of
Intellectual property - Territory: As a defined area, including INDIA only.
PRODUCTS: The Customer can take a close look at DSI's website for a complete
description of the products. In spite of DSI doing its best to describe and present the articles
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being sold on the website as accurately as possible, some product characteristics may be
altered slightly. Despite all precautions by DSI, there may be inadvertent errors, and DSI
shall not under any circumstances be held liable should this arise. The photographs of
products shown on DSI website are not contractually binding. Under no circumstances may
DSI be held liable on the basis of said photographs.
DECATHLON SPORTS INDIA attempts to keep the elements mentioned on its website
accurate and complete. In particular the information about pricing, specifications and in
general case all information about our products is subject to change without notice. It is
possible that there could be errors or omissions in the information provided in this website.
The information could also be incomplete. DECATHLON SPORTS INDIA is not responsible
for any errors, omissions or representations on any of our pages or any links on any of our
pages.
PRICES: The prices displayed on products are expressed in Indian Rupees and shall include
all taxes applicable by law. Product prices shall not include delivery charges, the cost of
certain forms of packing or charges for certain optional services selected by the Customer.
DSI shall have the right to refuse or cancel any orders placed by the Customer.
PAYMENT: For online purchases, Customer may pay for his/her purchase by using an EFT
(Electronic Fund Transfer) or credit/Debit card.
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The Customer recognises the existence and validity of the trademark applications or
registrations and use of DSI's products and undertakes never to challenge their validity,
registration and use in the Territory. The Customer undertakes not to derive any right from
the use of DSI's products and undertakes never to attempt to register, directly in his name or
indirectly by a third party, any identical or confusingly similar trademark or internet domain
name that may infringe DSI's trademarks or constitute unfair competition. In case the
Customer applies for or uses any identical or similar trademark or domain name to DSI's
products, he shall immediately take all necessary actions, at his own expense, to cancel or
transfer the infringing trademarks or domain names to DSI upon DSI's first demand. The
Customer undertakes to inform and to immediately notify DSI of illicit imitation and more
generally of any unfair competition practices based on the Protected Elements.
Accordingly, the Customer agrees that he will not copy and/or modify and/or create
derivative works from all the elements of http://www.decathlon.in. The customer also agrees
that he will not use any robot, spider, other automated device, or manual process to monitor
or copy any content.
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This website may be accessed from other countries than India. If you live outside India,
please refer to our partners within the OXYLANE GROUP by clicking here: Decathlon
World
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CONSUMER BEHAVIOUR IN DECATHLON
At Decathlon.in, we are sportspeople for sportspeople. We build products that have high
value for your money. In order to ensure your complete satisfaction we offer you a flexible
return/exchange policy.
We will reship the items in question to you immediately - at our cost. If necessary, we might
ask you to send us a picture of the damaged carton or product.
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You believe the product is defective?
We can ship you a replacement or return your money. The choice is yours.
That was certainly not our intention. We're terribly sorry for the unpleasant surprise. The
right product will soon be on its way.
We have changed our Analytics tracking code to support Display Advertising and implement
Google Analytics Demographics and Interest Reporting. We use this information to better
understand, protect and serve the Users. We use this information to provide the services the
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Users request. We might use this information to resolve disputes; troubleshoot problems; help
promote a safe service; measure consumer interest in our products and services; inform the
Users about online and offline offers, products, services and updates; customize the User's
experience; detect and protect us against error, fraud and other criminal activity; enforce our
terms and conditions; and as otherwise described to the Users at the time of collection.
In our efforts to continually improve our product and service offerings, we collect and
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data to tailor your experience at our Site, providing you with content that we think you might
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Using the Ads Settings, the Users can opt out of Google Analytics for Display Advertising
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39
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Decathlon organizes a lot of sport events to make you try the products and discover
sports you don't practice yet !
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But if you are a sports player already, Decathlon organizes tournaments for you too !
You can enjoy all our sport activities with your friends, your family and/or your
colleagues !
REASONS
Wrong Smiley
Comfort
Product Quality
Cash Counter Operations
Stock NA
Staff Interaction
Price
Others
Every day the consumers are contacted in order to know their reasons for their dissatisfaction.
as in this report we can clearly see that customer were not comfortable in the store so they
were contacted and told them we have put coolers for better and comfortable ambience in the
store so as to keep our sales increasing
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REVIEW OF LITERATURE
43
(Kotler and Keller, 2012)-The topic of consumer behaviour is one of the massively
studied topics by the researchers and marketers in the past and still being studied.
Researchers show different reasons as to why consumer behaviour has been the topic of
many academics and researchers. One of the common views is that understanding
consumer behaviour has become a factor that has a direct impact on the overall
performance of the businesses.
(Kotler and Keller, 2012)- It is worth noting that consumer buying behaviour is studied
as a part of the marketing and its main objective it to learn the way how the individuals,
groups or organizations choose, buy use and dispose the goods and the factors such as
their previous experience, taste, price and branding on which the consumers base their
purchasing decisions
(Lancaster et al, 2002)- Another view suggests that understanding consumer behaviour
has become crucial especially due to fierce competition in retail industry in the UK and
worldwide. This chapter will introduce some other areas of research background of
consumer behaviour addressing the works of researchers and marketers. Moreover,
consumer decision making process, in particular, five stages of consumer decision making
process will be discussed in detail.
44
Variawa (2010)-Another study conducted by analyzed the influence of packaging on
consumer decision making process for Fast Moving Consumer Goods. The aim of the
research was to analyze the impact of packaging for decision making processes of low-
income consumers in retail shopping. A survey method has been used in order to reach the
research objectives. In a survey conducted in Star Hyper in the town of Canterville 250
respondents participated. The findings of the research indicate that low-income consumers
have more preferences towards premium packaging as this can also be re-used after the
product has been consumed. Although the findings indicate that there is a weak
relationship between the product packaging and brand experience. However, it has been
proven by the findings of the research that low-income consumers have greater brand
experience from the purchase of ‘premium’ products when compared to their experience
from purchasing ‘cheap’ brand products.
Lee (2005)-carried out study to learn the five stages of consumer decision making process
in the example of China. The researcher focuses on the facts that affect the consumer
decision making process on purchasing imported health food products, in particular
demographic effects such as gender, education, income and marital status. The author
employed questionnaire method in order to reach the objectives of the research. Analysis
of five stages of consumer decision making process indicate that impact of family
members on the consumer decision making process of purchasing imported health food
products was significant.
The author further explains this by the fact Chinese tradition of taking care of young and
old family members have long been developed and marriage is considered to be extremely
important in Chinese tradition. This reflects in the findings of the study that the purchase
of imported health food products made by a person for the people outside the family is
declined significantly by both male and female Chinese after they get married.
Blackwell et al (2006)-Five Stages Model of consumer decision making process has also
been studied by a number of other researchers. Although different researchers offer
various tendencies towards the definitions of five stages, all of them have common views
as they describe the stages in similar ways. One of the common models of consumer
decision making process has been offered by him. According to him, the five stages of
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consumer decision making process are followings: problem/need recognition, information
search, evaluation of alternatives, purchase decision made and post-purchase evaluation.
Each stage is then defined by a number of researchers varying slightly but leading to a
common view about what each stage involves. For example, according to Bruner (1993)
first stage, need recognition occurs when an individual recognizes the difference between
what they have and what they want/need to have. This view is also supported by Neal and
Questel (2006) stating that need recognition occurs due to several factors and
circumstances such as personal, professional and lifestyle which in turn lead to formation
of idea of purchasing.
(Schiffman and Kanuk, 2007).-In the next stage, consumer searches information related
to desired product or service Information search process can be internal and external.
(Rose and Samouel, 2009).-While internal search refers to the process where consumers
rely on their personal experiences and believes, external search involves wide search of
information which includes addressing the media and advertising or feedbacks from other
people
Once the relevant information about the product or service is obtained the next stage
involves analyzing the alternatives. Kotler and Keller (2005) consider this stage as one
of the important stages as the consumer considers all the types and alternatives taking into
account the factors such as size, quality and also price.
Backhaus et al (2007) suggested that purchase decision is one of the important stages as
this stage refers to occurrence of transaction. In other words, once the consumer
recognized the need, searched for relevant information and considered the alternatives
he/she makes decision whether or not to make the decision.
Kacen (2002) Purchasing decision can further be divided into planned purchase,
partially purchase or impulse purchase as stated by Kacen (2002) which will be discussed
further in detail in the next chapters.
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Finally, post-purchase decision involves experience of the consumer about their purchase.
Although the importance of this stage is not highlighted by many authors Neal et al
(2004) argues that this is perhaps one of the most important stages in the consumer
decision making process as it directly affects the consumers’ purchases of the same
product or service from the same supplier in the future.
The most noteworthy writers that serve as academic advocates of The Five Stage Model
of consumer decision making include Tyagi (2004), Kahle and Close (2006) Blackwell
et al. (2006), and others.
It has been established that the consumer buying behaviour is the outcome of the needs
and wants of the consumer and they purchase to satisfy these needs and wants. Although it
sounds simple and clear, these needs can be various depending on the personal factors
such as age, psychology and personality. Also there are some other external factors which
are broad and beyond the control of the consumer.A number of researches have been
carried out by academics and scholars on identifying and analyzing those factors affecting
the consumers’ buying behaviour and as a result, various types of factors have been
identified. These factors have been classified into different types and categories in
different ways by different authors. For instance, Wiedermann et al (2007) classified
them into internal and external factor. On the other hand, Winer (2009) divided them into
social, personal and psychological factors. Despite the fact that they have been classified
into different groups by different authors they are similar in scope and purpose (Rao,
2007).
It is important to note that The Five Stage Model is not the only model related to
consumer decision-making, and there are also a range of competing models that include
Stimulus-Organism-Response Model of Decision Making developed by Hebb in 1950’s,
Prescriptive Cognitive Models, The Theory of Trying (Bagozzi and Warsaw, 1990), Model
of Goal Directed Behaviour (Perugini and Bagozzi, 2001) and others. All of these models
are analysed in great detail in Literature Review chapter of this work.
47
THE PROBLEM UNDER STUDY
I did 8 weeks internship at Decathlon sports India, Mohali. My project guide encouraged me
to undertake the study about “Consumer Behaviour in Decathlon” and make a project report
on it and analyse the survey data of questionnaires with respect of the responses by the
customers. I chose consumer behaviour as my topic because of the following reasons:
Consumer behaviour has many tools under it to attract retain and increase the number
of customers for the betterment of stores
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3. Better conditions for the customers in the store
4. Providing better quality of products, better designs and attractive promotional prices
so as to gain sales.
5. Finding out the reasons which led to the dissatisfaction of the consumers.
• Store image
• Customer satisfaction
• Store location
• Store layout
The rationale of study arises from the consumer behaviour in the store and the methods
performed by the store to serve the customers better
49
BARI Survey is done in the store to know the overall behaviour of consumers in the
store and to know about their buying behaviour.
Proper billings are done and it is one of the main tool to for customer satisfaction so
that customers don’t have any is comfort.
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OBJECTIVES AND METHODOLOGY OF THE STUDY
51
OBJECTIVES
In an attempt to make this project authentic and reliable every possible aspects
Of the topic was kept in mind.
It was difficult to get the questionnaire filled from the customers as they show less
interest towards it.
Lack of time is one of the basic limitations in the project. There were time constraints
as we had to submit the report in 2 months.
This study is conducted only in Decthlon Mohali so the results are confined to that
area only so there is less number of participants.
The sample was geographically limited and the age range was narrow.
52
The time pressure of the respondents may have affected the quality of data.
SAMPLE: The sample size for the survey is 150 customers per store. Please keep in mind,
all the respondents should be above 18 years.
TARGET: Customers, buyers or not, that visited the store the day of the interview
• Customers were interviewed indifferently at the exit of the store, whether they made a
purchase or not.
They are selected at random on the basis of one customer out of three
DATA COLLECTION: The answers were collected in face to face on a form programmed
questionnaire
SURVEY PERIOD: The interviews have been conducted in June 2016 every day of the
week including week-ends. The period of the interviews should be a "normal" one with
stocked shelves to get representative results of the store
SELECTION OF THE RESPONDENT: The survey is done only at the exit of the store
after the customer has completed the purchase and is leaving. The interviewer can select the
customers (men or woman) on a random basis. It can be people who have made purchases
and not made purchases.
SURVEY PERIOD: The survey will be conducted on all days of the week. The ideal time
for the survey is 1 week. The survey is conducted twice a year to get accurate and comparable
results.
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DURATION OF THE QUESTIONNAIRE: The mean duration of the revised
questionnaire is 3-4 minutes.
RESEARCH METHODOLOGY
RESEARCH DESIGN
After research objectives the second stage of research for developing the most efficient plan
for gathering the needed information. Designing a research plan includes decisions on data
sources, research approaches, research instrument & sampling plan.
DATA COLLECTION
There are certain steps which are followed for making an effective research. It depends upon
organization to organization and person to person who adopt a certain strategy in research
called research methodology. Research methodology followed me in the organization is
54
Visiting different departments.
Conversation with highly skilled and qualified players.
Data collection from different sources.
Preparation of project.
It is known that success of any research depends on the development of an efficient plan for
gathering the required information. Data gathered may be primary or secondary in nature.
Secondary data consists of information that already exists with the institutions or from
outside sources. Secondary data provides for a starting point of the research and offer the
advantage of low cost and easy accessibility. But primary data collected is more specific
reliable and relevant for the lay-down project. Hence for this project primary as well as
secondary data has been made use of keeping in mind the sample or nature of the project.
SOURCES OF DATA
PRIMARY DATA
The primary source of data used in making of this project report is information collected from
personal interaction with collaborators in the department as well the store.
SECONDARY DATA
55
DATA ANALYSIS TOOLS
An attempt was made tabulate and summaries data in order to relate critical, points with study
objectives the reliability of the summaries data was tested with the help of data analysis tool
like percentage, average, standard deviation and variance and spss.
56
DATA ANALYSIS & INTERPRETATION
57
The data collected from the survey has been analyzed & interpreted carefully. So as to fulfill
the objectives of the study
Various statistical tools of data analysis have been employed as & where required. The
primary data & secondary data have been combined, together to draw inferences.
1 Visit efficiency
3 Store satisfaction
4 Shoppers’ profile
Visit Efficiency
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Q3. Did you visit the Decathlon website to prepare your purchase before coming to the
store?
Dec.
May1615
June 16
59%
No
66%
41%
Yes
34%
Q7. Did you purchase anything today from this Decathlon store? / Q8. Did you make
any unplanned purchases today in this store?
Q9. Is there a particular product you were looking for but did not buy in this store
today?
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The product wasn’t available (out of stock) 45%
Q3. Did you visit the Decathlon website to prepare your purchase before coming to the
store?
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Dec.
May1615
June 16
59%
No
66%
41%
Yes
34%
Q7. Did you purchase anything today from this Decathlon store? / Q8. Did you make
any unplanned purchases today in this store?
Q9. Is there a particular product you were looking for but did not buy in this store
today?
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The product wasn’t available (out of stock) 45%
Competition and
store traffic
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38 %
Social Media 7%
Q6. In which other stores or websites do you regularly buy sports items, apart from this
one?
63
23%
NIKE
30%
22%
ADIDAS
25%
14%
PUMA
19%
14%
REEBOK
18%
7%
WILDCRAFT
0%
2%
SPORTZONE
17%
15%
OTHER
8%
June 16
64
Local market 32.2%
Yonex 12.7%
Filpkart 5.7%
Amazon 5.1%
Nivia 4.8%
Sports access 4.1%
Shakti 3.5%
FILA 2.9%
Snapdeal 2.9%
Speedo 2.5%
Myntra 2.2%
North Face 1.9%
SG 1.9%
Skechers 1.9%
Asics 1.6%
Bata 1.6%
Sachdev sports 1.6%
Total sports 1.6%
Woodland 1.6%
Champion sports 1.3%
Scott 1.3%
Sports Emporium 1.3%
Power 1.0%
Rakhra Sports 1.0%
Bharath sports 0.6%
Salomon 0.6%
Logically, store visit frequency decrease significantly with all the new stores.
Q6. On average, how many times a year do you come to THIS store?
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39%
More than 5 times
29%
23%
2 - 5 times
53%
37%
First time
18%
June 16
Store satisfaction
Detail of grades put by our customers : it mainly moves from 9 and 10 to 7 and 8
We can notice a decrease from 9.
Q13. In general, which score from 1 to 10 would you give to the store where we are right
now?
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Jun-16 June 2015
45%
40% 40%
37%
35%
33%
30% 34%
25%
22%
20%
17%
15%
10% 7%
5% 2% 4%
0% 0% 0% 0% 1%
0% 1%
1 0% 20% 30% 4 0% 50% 6 7 8 9 10
Frequency of practice
Gap : 2,7
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Recommendation rate increase significantly to return to levels normally seen in the
barometer.
86% 11%
80% 15%
Shoppers’ profile
Gender & age : More 25-44 years old customers than last year.
24%
Less than 25
27%
46%
25-34 years old
45%
25%
35-44 years old
20%
3%
45-54 years old
6%
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Average age in 2016 :
31,1 years old, a little bit more than 2015 (30,4 years old)
72%
Male
73%
28%
Female
27%
June 15
69
35%
Everyday
35%
31%
Weekly
40%
19%
Monthly
15%
15%
Don't practice
10%
June 15
96%
MAIN FINDINGS
People interviewed this wave have a quite different profile than last year:
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- Less sporty: more and more customers don’t practice any sport (+5pts) or just monthly
(+4pts), and sporty customers decrease (-9pts).
- And slightly older: 31,1 year old in April 2016 vs 30,4 years old in June 2015.
People are less curious to visit Decathlon without planning to buy: 10% of simple visit vs.
14% in June 2015.
On the contrary there are a little more lost sales: 28% of lost sales vs. 22% last year and the
reasons of it due to the store are multiple: availability (45%), choice of product (31%) and
price (17%).
The word by mouth is the most encouraging way to hear about Decathlon (50%).
Important to our customers is to improve product choice and to propose more attractive price.
Logically, store visit frequency decreases significantly with all the new stores : the part of
customers to come to a Decathlon store for the first time grow up of 19 pts.
CONCLUSION
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Visit efficiency
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Purchase preparation before visiting: ¼ of customers goes on the web to prepare its
visit at Decathlon.
The overall visit performance improved in India since June 2013 thanks to its capacity
to make customers do unplanned purchases.
The unavailability of products still is the main reason of lost sales, at a higher level
than range of products.
.
Loyalty: 62% of Decathlon customers are already loyal customers in India. It’s a bit
less than in June 2013.
Decathlon shares a lot of customers with 4 competitors : Nike, Adidas, Puma and
Reebok, but there are more exclusive customers than in 2013.
Decathlon still is recruting new customers. (1/4 of customers has never been to the
store before this visit).
Store satisfaction
The overall satisfaction of customers is very good in India but it has slightly
decreased since June 2013 (-5pts of very satisfied customers).
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Detailed satisfaction: the good overall satisfaction is driven by the staff and store
concept whereas products and the prices are less perceived.
80% of customers think that Decathlon is better than competitors on prices, range of
products and competence. This advantage is decreasing on the comparable stores.
Shoppers’ profile
You can continue to develop strategies of communication and business with internet
Decathlon clientele is a very male clientele (more than 8/10) and less families.
Sport level & travel time to the store: the interviewed sample is quite or very sporty
and live far from the Decathlon store compared to other countries.
Events about cricket, cycling and badminton would be interesting for our customers.
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APPENDICES
QUESTIONNAIRE
This is to find out if our customers practice sport and how often. This data will help you
identify your shopper’s profile. Only 1 answer can be selected .
This is to find out how our customers have heard of us. This information can be very useful
in communication and also amend the current communication policies if needed.
Maximum of 2 answers can be selected .
3. Did you visit the Decathlon website before coming to the store?
● YES ● NO
This is to find out what % of our customers are aware of our website and also find out
behavioural pattern to see if customers look online before coming to the store to purchase.
.
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This is to find out who our competitors are. Multiple answers can be selected on this. Please
note in this question, there is an option called “OTHERS”, if the customer says Others
please fill the immediate field following that. If not it can be left blank.
5. On an average, how many times a year do you come to this Decathlon store?
This is to find out the frequency of visits of the customer. We have reduced the format from
the previous surveys. This question will also ascertain the new buyers to your store.
In most cases employee conducting the interview should be able to ascertain this information.
● YES ● NO
This can be marked by the interviewer if you are sure of the customer’s purchase. This will
save out on time as well.
● YES ● NO
This is to find out you had any gained sales from a customer who just came into the store.
8. Is there a particular product you were looking for but did not buy in this store today?
● YES ● NO
This is to find out if there was anything that the customer wanted and did not buy. This will
give us an idea of our stock, range and availability overall.. If the customer has said NO
to this question, please do not ask the following question.
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● Product wasn't available (Out of Stock) ● Couldn't find the sport / model / size i was
looking for ● Sales staff availability & competency ● Prices are high ● Cash counter
issues ● Not Applicable
This helps us ascertain what was the exact reason of the customer not buying the product. We
have clubbed a few reasons from the previous survey to ensure it is to the point. Multiple
answers can be selected. If the previous answer is NO, please mark NOT APPLICABLE
in this question.
10. On a scale of 1 to 10, 1 being the lowest and 10 being the highest
Each aspect to be rated on a scale with one answer for each only.
1 2 3 4 5 6 7 8 9 10
Choice of products
Prices
This is for the customer to be able to gauge us on the above factors. Please keep in mind this
will also result in the overall satisfaction of the customer. Each point on the scale is very
important.
77
11. Would you recommend this Decathlon store to a friend or acquaintance?
● Yes, certainly ● Yes, maybe ● No, probably not ● No, certainly not ● Don't know
This is to find out if our customers are our promoters and they promote “Decathlon”. Please
be careful in selecting the options carefully.
● YES ● NO
To be able to understand what % of our customers have Smart phones. This information will
be useful to ascertain on how we can help in the customers overall Omni channel journey.
13. Age
● 18 - 24 ● 25 - 34 ● 35 - 44 ● 45 - 54 ● 55 and above
Please note you cannot do this survey if the customer is lesser than 18 years of age.
14. Gender
This can be filled by the interviewer based on the respondent answering the survey.
78
BIBLIOGRAPHY
www.decathlon.in
www.decathlon.com
www.wikipedia.com
www.google.com
www.playgroundonline.com
https://www.google.co.in/search?
q=decathlon+zirakpur&source=lnms&tbm=isch&sa=X&ei=zFvMU8LkLoegugS5-
4D4Cg&sqi=2&ved=0CAYQ_AUoAQ&biw=1067&bih=493
http://resellers.decathlon.in/index.php?route=account/create
http://resellers.decathlon.in/index.php?route=webreport/webreport/sportsdetails
http://www.playgroundonline.com/decathlon
http://articles.economictimes.indiatimes.com/2014-03-28/news/48662796_1_sports-
goods-e-commerce-foreign-direct-investment
http://smallbusiness.chron.com/effect-consumer-behaviour-marketing-organization-
17934.html
https://www.google.co.in/?gws_rd=ssl#q=review+of+litreature+images
http://www.google.co.in/imgres?imgurl=https%3A%2F%2Fptop.only.wip.la%3A443%2Fhttp%2Fphotos.wikimapia.org%2Fp
%2F00%2F03%2F71%2F71%2F01_big.jpg&imgrefurl=http%3A%2F
%2Fwikimapia.org%2F29479544%2FDecathlon-
Zirakpur&h=457&w=700&tbnid=CAHQGlJi0j5ZRM
%3A&zoom=1&docid=1E6m83Lf0J_R_M&ei=z1vMU6HqMMi-
uATo0oK4DA&tbm=isch&ved=0CB0QMygBMAE&iact=rc&uact=3&dur=382&page=
1&start=0&ndsp=7
https://www.google.co.in/search?
q=decathlon+photo&source=lnms&tbm=isch&sa=X&ei=fT_MU7twzLC4BPT5gsgL&v
ed=0CAYQ_AUoAQ&biw=1067&bih=493#q=decathlon+france&tbm=isch
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