VIT BUSINESS SCHOOL

DIGITAL ASSIGNMENT

SUBMITTED BY: CHANDRU N

23MBA0001

COURSE: MARKETING ANALYTICS

PMBA658E

SUBMITTED TO: Dr. SURAJ KUSHE SHEKHAR

 Observation Report: Customer Behaviour at DMart, Vellore

Store Layout and Environment:

Ground Floor: D-Mart typically places essential groceries like rice, wheat, pulses, oils, and
spices towards the rear of the store. This encourages customers to pass through various sections,
such as snacks, beverages, and personal care products, thereby promoting additional purchases.

Strategic Product Placement: Frequently purchased items, including dairy products, snacks,
and packaged foods, are positioned in high-traffic zones, driving exposure to everyday
essentials. D-Mart designs its aisles to ensure customers encounter multiple categories,
increasing the likelihood of impulse buys.

Date and time: 14-10-2024; 5.20 pm

Product Placement:

Groceries and Essentials: Staples such as grains, oils, and pulses are placed towards the back
or side aisles to draw customers deeper into the store. D-Mart typically places discounts on
these essentials to attract budget-conscious shoppers.
Snacks and Munchies: Packaged snacks like chips, biscuits, and ready-to-eat foods are
prominently displayed at eye level. Offers such as "Buy 1 Get 1 Free" or discounted packs are
common to encourage impulse buying, particularly among younger shoppers.

Beauty and Personal Care: Brands like Dove, Lux, and Nivea are showcased in well-lit,
accessible aisles, targeting a broad demographic. These sections are usually located near
everyday essentials to ensure visibility and engagement.
Chocolates and Frozen Items: Chocolates, soft drinks, and frozen foods are typically placed
near checkout counters to promote last-minute purchases. Shoppers frequently add these items
while waiting in line.

Dairy and Fresh Produce: Positioned near the store entrance or to the side, fresh vegetables,
fruits, and dairy products like milk and curd are intended to capture daily shoppers looking for
fresh items.

Customer Behaviour:

Response to Promotions: D-Mart's value-conscious customers are highly responsive to

discounts and promotional offers. Essentials such as rice, cooking oils, and masalas often have
prominent discounts, encouraging shoppers to buy in bulk or switch brands based on price
differences.

Comparative Shopping: Shoppers, particularly homemakers, frequently compare brands and

prices before deciding, especially for groceries. D-Mart encourages this behaviour by
prominently displaying discounts and bulk offers in key sections of the store.

Impulse Purchases: Snacks, chocolates, and beverages are common impulse buys. These
items are placed near high-traffic zones, including checkout counters and end caps, to drive
unplanned purchases.
Demographics of Shoppers:

Age Groups: D-Mart attracts a wide range of customers, including young adults (18-30),
middle-aged individuals (30-50), and older shoppers (above 50), often shopping for family
essentials.

Gender: Women, particularly homemakers, form the majority of the customer base. They
often spend time in sections like groceries and personal care. Men, on the other hand, are more
likely to browse snacks, beverages, and electronics.

Family Units: Families frequently shop together, with children influencing purchases in
sections like snacks, toys, and confectionery.

Promotions and Discount Strategies:

Bulk Buying: D-Mart frequently offers discounts on bulk purchases of staples and household
essentials, appealing to budget-conscious customers.

Impulse Buys and Checkout Zones: Like many supermarkets, D-Mart places impulse buy
items near checkout counters, including chocolates, snacks, and soft drinks. Bundled offers on
biscuits and beverages encourage last-minute additions to the cart.

Seasonal and Festival Discounts: D-Mart takes advantage of festivals like Diwali and Holi
by offering special discounts on sweets, dry fruits, and home essentials. These culturally
relevant promotions drive festive sales and attract families looking for bulk purchases.
Store Atmosphere:

Efficient and Functional: D-Mart stores are well-lit, clean, and designed for high customer
throughput. The aisles are wide, and the store layout is straightforward, making it easy for
customers to navigate even during peak hours.

Checkout Experience: While checkout lines can get crowded during peak times, the
placement of impulse-buy items helps make the wait more engaging and potentially profitable
for the store.

LAYOUT OF DMART:

DMart follows a well-planned marketing and product placement strategy to maximize sales
and enhance customer experience. Here’s how DMart markets and organizes its products in its
layout:

1. Entrance Zone

• Promotional Products: The entrance area often showcases seasonal products,

special discounts, and promotional offers to immediately grab the customer’s attention.

• High-Margin Items: Items like packaged snacks, chips, and soft drinks are also
positioned near the entrance to encourage impulse purchases.

2. Fresh Produce and Essentials Section (Left Side)

 • Fruits and Vegetables: Fresh produce is usually located near the entrance to
emphasize freshness and quality.

• Dairy Products: Milk, yogurt, cheese, and other perishable items are placed
nearby for quick access.

• Bakery Section: Fresh bread, pastries, and other baked goods are placed close
to the dairy section, creating an association with breakfast and fresh food.

3. Grocery and Staples (Central Section)

• Packaged Foods: Items such as rice, pulses, pasta, cooking oils, and other
essentials are placed in the middle of the store. These are products that most customers need
and are willing to walk further into the store to find.

• Snacks and Beverages: Placed alongside packaged foods, these items promote
cross-shopping.

• Spices and Condiments: Positioned close to the cooking essentials, these items
complement staple grocery purchases.

4. Household and Cleaning Products (Right Side)

• Cleaning Supplies: This includes detergents, dishwashing liquids, and cleaning

tools. DMart places these in a prominent area on the right, ensuring customers easily access
these daily-use products.

• Toiletries: Products like shampoos, soaps, and body washes are often placed
next to the cleaning section.

• Personal Care: Beauty and hygiene products are also arranged in the same area
for convenience.

5. Clothing and Footwear (Back Area)

• Clothing and footwear are positioned towards the back or the upper floor (if
available). This strategic placement encourages customers to walk through other sections (and
potentially make additional purchases) before reaching these items.

• Seasonal clothing, home essentials like towels, and footwear are arranged to
attract customers looking for value-based purchases.
6. Home Appliances and Bulk Items (Back Corners)

• Appliances: Products such as kitchen appliances, cookware, and other

electronics are placed in the back to draw customers through the store.

• Bulk and Bundle Offers: Large packs or bundled deals (e.g., juice packs,
packaged snacks) are kept in the back corners. These attract bulk buyers and encourage families
to buy in larger quantities.

7. Frozen and Confectionery Products (Near the Exit or Right Side)

• Frozen Foods: Ice creams, frozen vegetables, and ready-to-eat meals are kept
towards the end of the store to ensure they stay cold until the customer completes their
shopping.

• Chocolates and Confectionery: Often placed near the checkout area, these items
are targeted for impulse purchases while customers wait in line.

8. Checkout Area

• Impulse Buys: DMart strategically places small, high-margin items like

chocolates, chewing gums, candies, magazines, and small toys near the checkout counters.

• Billing Counters: The counters are centrally located to create an efficient flow
for customers navigating the store and to minimize crowding in any single area.

9. In-Store Marketing Tactics

• Eye-Level Product Placement: High-demand and high-margin products are

placed at eye level to catch attention.

• End Caps (End of Aisles): These are used for promotional displays, new product
launches, and special discounts to maximize visibility and sales.

• Seasonal Displays: DMart uses seasonal displays (e.g., festival items during
Diwali or summer products) to capture customer interest and drive sales.

10. Signage and Navigation

• Clear Signage: DMart ensures each section is well-labeled, allowing customers

to find their desired products easily.
 • Navigational Aisles: The layout promotes a clockwise or anti-clockwise flow,
ensuring customers pass through most sections, increasing the likelihood of unplanned
purchases.

By using these strategies, DMart maximizes its floor space efficiency, encourages impulse
buying, and ensures customers can find the essentials easily, making it a popular and successful
retail chain in India.