Study of Consumer buying behaviour

In

Reliance Fresh

New Delhi

Project ReportSubmitted To

SCHOOL OF MANAGEMENT SCIENCES

For The Award Of

Post Graduate Diploma in Management

Submitted ByAmit Kumar Gupta(Roll No. : PG/08/05)

SCHOOL OF MANAGEMENT SCIENCESLUCKNOW

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Study of Consumer Buying Behaviour

In

Reliance Fresh

Submitted ByAmit Kumar Gupta

(Roll No. : PG/08/05)

SCHOOL OF MANAGEMENT SCIENCES

LUCKNOW

Reliance fresh

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3

Certificate

4

Executive Summary

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Retailing is the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. A retailer is one who stocks the producer’s goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. The retail industry in India is of late often being hailed as one of the sunrise sectors in the economy. AT Kearney, the well-known international management consultancy, recently identified India as the ‘first most attractive retail destination’ globally from among thirty emergent markets. It has made India the cause of a good deal of excitement and the cynosure of many foreign and domestic eyes. The entry of foreign and Indian retail giants like Wal-Mart, Metro, Reliance, Birla, Tata etc. made Indian market more competitive which is at cut throat level. So how retailers can reach to their end customers, to win the mind share and increase the basket size of each shopping trip.India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favourable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.

The growth of scope in the Indian retail market is mainly due to the change in the consumer’s behaviour. For the new generation have

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preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favourable.

Reliance Retail is the retail chain division of reliance industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The reliance fresh supermarket chain is ril’s rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011to the company. .

AS The twentieth century has come to and we have moved in to third millennium , we can see many development and changes taking place around us with all the industries and firms within each industry trying to keep pace with all the industries and firm within each industries trying to keep pace with the changes and diverse need of people . Marketer have regarded “customer” as the king and evolved all activities to satisfy him or her, this concept gaining more momentum and importance today.

More than a century ago, the father of our nation, Mahatma Gandhi, had made visionary and deep meaningful statement at Johannesburg, South Africa in 1980. A customer is the most important visitor of our premises. He is not dependent on us .We are dependent on him He is not interruption on our work. He is the purpose of it and not an outsider on our premises. He is a part of it. We are not doing him favour by serving him.

Today the entire firm engaged in a process of creating a life time value and relationship with customers. This report start with discussion on the diversity of consumer behaviour and the need for studying consumer

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buying behaviour and consumer as a related field of marketing .this can be largely be attributed to the prevailing market situation .Today the company image is built and made known by its customers. Thus success of the firm determined how effective it has been in meeting the diverse consumer need and wants by treating each customer as unique and offering products and services to suit has or her need.

Consumer buying behaviour will be a primary force in determining how this transition will evolve. Getting closer to the customer in today’s highly competitive landscape is essential for the entire industry and is no longer just a retail issue. It requires all organisations across the supply chain to work as a single enterprise, sensing and responding rapidly to consumer demand in a co-ordinated manner. Detailed analysis of the changing patterns of consumer demand, shopping trends.

This research report is based on to know the1- Major factors influencing consumer buying behaviour.2- Buying decision process.3- The stage in buying decision process4- Awareness of consumer towards organised retail sector

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Declaration

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I hereby declare that this summer project report titled “Buying

Behaviour/consumer satisfaction of Reliance Fresh customer in “Delhi.”

is the result of my own effort in the training which I did as a part of the

curriculum, for the fulfilments of POST GRADUATE DIPLOMA IN

MANAGEMENT (PGDM). It has not been duplicated from any other

earlier works and all information provided in this report is genuine.

This report is submitted for the partial fulfilments of PGDM program. It

has not been submitted to any other university or for any other degree.

Date: AMIT KUMAR GUPTA PGDM (MARKETING)

SMS LUCKNOW

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ACKNOWLEDGEMENTACKNOWLEDGEMENT

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I take this opportunity to express my sincere gratitude to the following

personalities without whose help and guidance the successful

completion of my project work would have been remained a dream.

I extend my heartfelt thanks to our HR Miss. SHIVANGALI SINGH for the

constant and valuable guidance by him through out my course.

I would like to take the pleasure of this opportunity to express my

heartful gratitude to my guide Professor Mrs VANDANA SHRIVASTAV

(Faculty Member, SMS) who took personal interest and gave valuable

suggestions through out my field work and completion of the project.

I thank all my faculty members of MBA department for their valuable

suggestions throughout my course.

The importance of the moral support and good wishes of my parents

and friends is external and I am very much indebted to them.

Finally I thank all my friends who directly or indirectly helped me a lot

during my project.

AMIT KUMAR GUPTA

PGDM-MARKETING

SMS LUCKNOW

Contents

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S.N. INDEX PAGE NO

Certificate 4Executive Summary 5Declaration 9Acknowledgement 11

CHAPTER- 1 INTRODUCTION &BACKGROUND1.1 Company Overview 141.2 Popular Profile 211.3 Supply Chain Model 271.4 SWOT Analysis 301.5 Corporate Social Responsibility 331.6 Major Player 35

CHAPTER-2 RESEARCH METHODOLOGY &DESIGN

2.1 Objective of Research 382.2 Type of Research 412.3 Source of data & Collection tool 412.4 Sampling 422.5 Sample size 42

CHAPTER-3 ANALYSIS & INTERPRETATIONMeaning of consumer Buying Behaviour 44Interpretation of collect data 49

CHAPTER-4 RESEARCH FINDING 69CHAPTER-5 LIMITATION OF RESEARCH 71CHAPTER-6 SUGGESTION 73

APPENDIX 75REFRENCES 77

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RELIANCE

"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."

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Dhirubhai H. AmbaniFounder Chairman Reliance Group December 28, 1932 - July 6, 2002

RELIANCE GROUP

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail.

Reliance enjoys global leadership in its businesses; The Group exports products in excess of USD 15 billion to more than 100 countries in the

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world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and Reliance Industrial Infrastructure Limited.

Reliance Industries Limited is India's largest private sector conglomerate (and second largest overall) with an annual turnover of US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal year ending in March 2008 making it one of India's private sector Fortune Global 500 companies, being ranked at 206th position (2008). [1] It was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing financial instruments like fully convertible debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhai's ability to manipulate the levers of a controlled economy to his advantage.

Though the company's oil-related operation forms the core of its business, it has diversified its operations in recent years. After severe differences between the founder's two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in 2006. In September 2008, Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most respected companies"

Subsidiaries of RIL

Reliance Petroleum Ranger Farms Limited Retail Concepts and Services (India) Private Limited

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Reliance Retail Reliance Global Management Services (P) Limited Reliance Biopharmaceuticals Reliance Ghatraj Services Reliance Engineering Associates (P) Limited

Reliance Retail Limited

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, Reliance is aggressively working on introducing a pan-India network of retail outlets in multiple formats.

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A world class shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique value-added services and above all, unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity, will be an integral feature of this project. By creating value at all levels, we will actively endeavour to contribute to India's growth.

The project will boast of a seamless supply chain infrastructure, unprecedented even by world standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch almost every Indian customer and supplier.

With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Group’s foray into organized retail.

With a 27% share of world GDP, retail is a significant contributor to overall economic activity across the world. Of this, organized retailing contributes between 20% to 55% in various developing markets. The Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is expected to grow to 10% by 2011. RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure in India, which includes a multi-format store strategy of opening neighbourhood convenience stores, hypermarkets, and specialty and wholesale stores across India.

RRL launched its first store in November 2006 through its convenience store format ‘Reliance Fresh’. Since then RRL has rapidly grown to operate 590 stores across 13 states at the end of FY 2007-08. RRL launched its first ‘Reliance Digital’ store in April 2007 and its first and

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India’s largest hypermarket ‘Reliance Mart’ in Ahmadabad in August 2007. This year, RRL has also launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance Timeout), auto accessories and service format (Reliance AutoZone) and also an initiative in the health and wellness business through ‘Reliance Wellness’. In each of these store formats, RRL is offering a unique set of products and services at a value price point that has not been available so far to the Indian consumer. Overall, RRL is well positioned to rapidly expand its existing network of 590 stores which operate in 57 cities.

During the year, RRL also focused on building strong relationships in the agri-business value chain and has commenced marketing fruits, vegetables and staples that the company sources directly to wholesalers and institutional customers. RRL provides its customers with high quality produce that has better shelf life and more consistent quality than was available earlier. RRL has made significant progress in establishing state-of-the-art staples processing centres and expects to make them operational by May 2008.

Through the year, RRL also expanded its supply chain infrastructure. The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner.

Recognizing that strategic alliances are going to be a key driver to its retail business, in FY 2007-08, RRL established key joint ventures with international partners in apparel, optical and office products businesses. Further, RRL will continue to seek synergistic opportunities with other international players as well. This year, RRL will continue its focus on rapid expansion of the existing and other new formats across India.

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Popular Profiles at Reliance Retail

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Management team

Name DesignationMr. Mukesh Ambani Chairman&Managing DirectorNikhil R Meshwani Executive DirectorHital R Meshwani Executive DirectorMadhumita Mohanti Deputy General ManagerAkashay Lokhande Area Manager-Operation &Sales

and NSODevandra Chawla Vice-President-Business Head,

Merchandise HeadZubin Nowrojee, Mangement State Head Category

Formats of Reliance RETAIL

Reliance Fresh,

Reliance Mart,

Reliance Digital,

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Reliance Trendz,

Reliance Footprint,

Reliance Wellness,

Reliance Jewels,

Reliance Timeout and Reliance Super,

RELIANCE fRESH

APKA FRESH APKE PADAOS ME

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Reliance fresh is the retail chain division of reliance industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The reliance fresh supermarket chain is ril’s rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011. The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. The company also has plans to train students and housewives in customer care and quality services for part-time jobs

BACK GROUND

We can see many examples of businesses where, first we grow and then think of expanding but Reliance is quite different. Reliance has developed such huge amount of resources and capital over the years that whenever it steps into any segment it is not required to wait for growing signal, that’s why it always thinks of expanding without any boundaries. Reliance retail is next Step by RIL which will be a pan India project.Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is RIL’s Rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011.

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The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. The company also has plans to train students and housewives in customer care and quality services for part-time jobs.The company is planning on opening new stores with store-size varying from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products and dairy products. Each store is said to be within a radius of 1-2 km of each other, in relation to the concept of a neighbor store. However, this is only the entry roll-out that the company has planned. Bangalore is said to have 40 stores in all by the end of the year.In a dramatic change due circumstances prevailing in UP, West Bengal and Orissa, It was mentioned recently in News Dailies that, Reliance Retail is moving out stocking. Reliance Retail has decided to minimize its exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super market focusing on categories like food, FMCG, home, consumer durables, IT, wellness and auto accessories, with food accounting for the bulk of the business. The company may not stock fruit and vegetables in some states, Orissa being one of them. Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in Hyderabad last October, not only did the company said the store’s main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its “farm-to-fork’’ theory. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way.

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FARM TO FORK

The Reliance retail company sources say it is setting aside Rs 50,000 crore to build its farm-to-fork linkage. Reliance has drawn up plans for a presence in 784 towns and 6,000 mandi (wholesale market) towns with 1,600 rural business hubs to service these. It has already rolled out 177 Reliance Fresh stores across major towns in 11 states. According to a company report, RIL is targeting a turnover of Rs 40,000 crore in the next few years.

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TRADITIONAL MODEL OF RETAIL RELIANCE “FARM TO FORK”

SUPPLY CHAIN MODELS of Reliance Retail

Reliance started its retail operations of Reliance Fresh stores with following supply chain model. Procuring directly from the farmers and operating with moderate margin but mass selling was key to Reliance fresh operation for first few months. The following figure depicts the first Reliance fresh model

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RELIANCE FRESH

WHOLESALE TRADING (WST) : Reliance formalized its second supply chain model to shift itself from grocery retailer to grocery supplier by focusing and establishing itself in Mandi’s.

STEPS IN WTS MODEL:

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RELIANCE OWNLOGISTICS

RELIANCE FRESH

OUTLETS

RELIANCE FRESH

OUTLETS

RELIANCE FRESH

OUTLETS

PROCESSING

UNIT/POINT

COLLECTION

POINT/UNIT

Farmers Own Transportation

Reliance own Logistics Reliance own Logistics

Farmers Own Transportation

RFRF

FARMERSCATEGORY

1

FARMERSCATEGORY

2

FARMERSCATEGORY

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1) Reliance has owned farms on contract basis for production of specific crop which is decided after extensive research depending on

SOIL CONDITIONS, CLIMATE CONDITIONS, RETURN OVER COSTS INCURRED.

So as to yield best possible results.

2) Different vegetables and fruits from such farms are collected through reliance own Logistics and brought to collection Processing centres where quality check and other required processing is done. In processing centres workers wearing balaclavas, woollen trousers and bulky jackets work inside a room kept at a constant 3oC, peeling and chopping vegetables, spinning them dry and then heaping them in small plastic packets before placing them in plastic transport crates. At the other end of the 5,000-sq-m warehouse, men unload crates of fruits from a truck pulled up to a spotless loading dock. A quality-control expert samples every tenth crate; if the fruits are good a team will ready them for delivery within hours to Reliance fresh stores around different places like U.P and as far away as Hyderabad and even Mumbai (formerly Bombay). If they are not, workers will inspect the entire shipment and discard anything below standard.

3) Merchandise from these collection processing centers are collected and loaded for Wholesale mandi’s. As this merchandise is to be made available by 4 A.M in morning thus deliveries in trucks are sent at time depending upon:

TRANSIT TIME. – Time required reaching destination i.e. mandi’s.

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MARGIN TIME. – Time period between a truck reaching mandi and then Unloads. Can be 2 to 3 hours.

LOADING AND UNLOADING TIME.

4) From mandi’s where the trucks have been unloaded, roadside vendors and pull carters Buy fruits and vegetables to supply in households.

5) In case still some vegetables and fruits are not sold reliance logistics own Transportation sends them to reliance fresh stores.

SWOT ANALYSIS

The Indian retail market accounted for $ 200 billions. Food accounts for over two-thirds of the $200-billion Indian retail market. Yet, it has seen less than 1 per cent penetration by modern retail so far.Reliance industries which always looking for new business

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opportunities just started a new era with its introduction of new concept stores named Reliance Fresh with opening convince store in high streets of Banjara hills of Hyderabad. Reliance Fresh is very different from what modern retail has offered in India so far and with this reliance is planning to establish strong retail network in India in food and farm sector. They have started with new eleven stores in the last week and they are thinking to add 100 more stores to their feather by the end of this year.

Let’s do a SWOT analysis on the Reliance Fresh.

Strengths:

Reliance is the first into enter into this unorganized sector of vegetables and fruits. According to them its intentions to have100% farm fresh foods in their new retail stores. It is also adding shortly a juice bar, and even a large counter for puja flowers. In fact, over 60 per cent of the floor space has been dedicated to fresh fruits and vegetables, the rest to other food products like staples, spices, bakery, etc. But reliance has decided not to add any bar soap or toothpaste and detergent in its shelves. So by using this strategy they are positioning themselves different from other players of the industries like Food world, Big Bazaar and Nilgiris. But over come the short comings of these specialized stores they are also introducing new Reliance full-fledged supermarket called Shakhari Bhandar which offers each and everything from the staple to soap. Most of the staples are under its own private label brand — ‘Reliance Select’. There is a 500g channa dal pack priced at Rs 28, a 500g urad dal pack for Rs 39, all under Reliance’s own brand. Excepting a few packets of Nestle’s Maggi, or MTR’s masalas or Pepsi’s Lays chips, there is very little shelf space given to the big brand owners in the country. Reason: private labels offer far better profit margin to the retailer than branded products of FMCG companies. Most of these outlets will need

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only 2,000-5,000 sq. ft. A supermarket may need as much as 8,000-10,000 sq. ft.

Weakness:

This is definitely an interesting business venture but it may miss out on the opportunity to capture a greater share of the customer’s wallet. For customers, too, this could be irksome, as they would have to visit another store to pick up essentials. Reliance could easily fix this problem by adding a few small counters for some basic non-food products. According to their official this format is not final one they are accepting the new changes which are required to attract the large number of customers.

Opportunities

Reliance wants to build a high-profitability business and food is, perhaps, the best venture to start. That is because the Indian food supply chain is grossly inefficient. There are several intermediaries, each of whom adds his own profit margin to the cost. Besides, there is huge wastage in transit. This offers potential for savings and profits. To reduce the cost and increase the profit it has been sourcing out its requirements from the farmers. For example, the leafy vegetables, brinjals, tomatoes and green chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi, Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh. The supply chain already has been backed by few hundred farmers the number is estimated to touch million in next five years. The main aim of the reliance is to eliminate the intermediaries in the sector and reduce the cost. Smaller stores have two advantages. They bring down the cost of real estate (and increase profits). It is easier to find space for small

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convenience stores in a quiet neighbourhood than for supermarkets in high streets.

Threats:

This model is engineered to clock a faster turnover of inventory — Reliance expects consumers to visit the store at least twice a week for their top-up groceries. Each store will have an investment of Rs 50 lakh to Rs 60 lakh. Unlike global retailers who operate on thin margins, Reliance Retail is looking at a fairly high-margin business model. Deliberately stopped short of being a full-fledged supermarket rather, it has limited itself to a food and grocery convenience store. They also have a threat from the existing supermarkets which provides all the services to its customers. For Example Food world and Nilgiris also provides food and beverages with other personal care products. These convince are not existed in the present Reliance retail stores.

CORPORATE SOCIAL RESPONSIBILITY

Today when most of the companies are busy in making profits by any means, there are few

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Ones who are focused to return this society, a part of what they have earned through this society. Reliance retail is one of them. Following efforts of reliance retail are aimed at benefiting the society making reliance socially responsible:

1) Reliance Retail aims at recruiting people from the underprivileged community in society. "Hence, we are planning to train students from corporation schools and schools run by NGOs. And, we consider this as a part of our corporate social responsibility," he said.

Asked whether the company will take students on an employment basis and pay them a stipend during the course period, he said that actually, it is planning to charge a "small fee" from those who want to join the course "as we want to bring in some discipline and regularity among the students", and will reimburse that once they are inducted into service.

2) Farming in India is highly fragmented and subject to harsh

climatic conditions: once harvested, it is very difficult to keep fruits and vegetables fresh. To secure high quality, Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers from villages through Collection Centers.

With this concept, Reliance has built a business model generating shared value that links the company supply chain more closely to poor farmers in Indian villages. Reliance is providing a guaranteed market for the farmers’ produce, reducing transaction costs and training the farmers in better and sustainable farming practices. This initiative results in higher income and upgrading of skills for the farmers, and reduced spoilage of produce (up to 35 percent) and better quality products f or Reliance retail stores.

3) Reliance retail has adopted “farm to fork” theory which means it is procuring directly from the farmers thus offering them quite

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reasonable prices for their produce as now no intermediaries are involved. In return Reliance is giving farmers information about how can farmers improve their productivity. They have centers in villages who apart from providing information make farmers aware of market rates of different crops so that farmers can choose crops they want to sow to become profitable. Farmers are provided technical help as well like information about quality of seeds and fertilizers.

Major players in retail sector

Shoppers Stop:

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Shoppers’ Stop is the pioneer of pan-nation one-stop retail outlets. Starting in 1991 with a single store in Mumbai, it has now developed more than 20 stores (total retail space crossed the 1 m mark in the second quarter of FY07). The company has added 1,568,479 sq ft of area during the year taking its total store area to 1,170,548 as on March 2007. The company has a wholly owned subsidiary – Crossword – a specialty retail chain with over 32 stores spread across the country. This store specialises in books, gift articles and stationery. During the quarter, Crossword opened its first store and 2 ‘Stop & Go’ stores at the Mumbai domestic airport. Further, it forayed into airport retailing through a joint venture with The Nuance Group AG of Switzerland. The company has also made an entry into the entertainment sector by acquiring 45% stake in Time zone Entertainment Pvt. Ltd. The recent moves by the company will widen the offering and de-risk its dependence on the flagship Shoppers’ Stop stores.

Pantaloon:

Incorporated in 1987, Pantaloon Retail is among the pioneers in chain retailing. It is the largest retailer in the country operating 350 stores across segments in over 40 cities across the country and constituting 5 m square feet of retail space. Starting out with dedicated apparel stores (Pantaloon), the company has stores across the cross-section of the society. The company’s business is broadly divided into 2 segments, Lifestyle and Value retailing. On the apparels front it has Pantaloon (31

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departmental stores), Central Malls (4 seamless malls as well as its other concepts). These stores can be classified under ‘Lifestyle Retailing’. On the general merchandise front it has Big Bazaar (51hypermarkets), Food Bazaar (77 supermarkets) and Fashion Station (5 fashion stores) and other delivery formats. These fall under ‘Value Retailing’.

more

The more. Chain of supermarkets, are bright and clean stores, at convenient locations with layouts that allow ease of navigation. The product display is well organised and facilitates ease of choice. The stores have been designed by Fitch, the leading international retail design firm.

The stores promise a range of benefits to consumers and are a solution to the many problems faced by housewives while shopping for their daily needs. The retail offering from the Aditya Birla Group, has been crafted after in-depth research of the needs and expectations of the Indian consumers. more. is the answer to the shopping needs of the Indian housewife who wants a modern and convenient option in her neighbourhood, with an attractive and consistent range of products? more. assures consumers the security of knowing that they are paying the best price in the market for good quality products.

RPG Group:

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RPG Enterprises is one of India’s largest business conglomerates, with a turnover of US$ 2.55 bn and assets worth US$ 1.8 billion. Since its inception in1979, RPG Enterprises has been one of the fastest growing groups in India with more than 20 companies operating successfully in 7 business sectors: Retail, IT & Communications, Entertainment, Power, Transmission, Tyres and Life Sciences. In 2001, it established ‘Giant’ Hypermarket

Provogue (India) Ltd., (PIL) formerly Acme Clothing Pvt. Ltd was incorporated in November 1997, converted in to a public limited company in March 2005. It deals with fabrics, dyestuffs, chemicals and textile machinery. PIL operates in two core industry segments. The first being designing, manufacturing and selling branded ready-made garments and other accessories under the brand 'Provogue'. The second business is export of finished fabrics, dyestuffs, chemicals and textile machinery to several markets in African continent.

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Research Objective

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To study consumer buying behaviour reliance fresh customer of Delhi

To know about the consumer awareness towards Reliance fresh.

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Research Methodology

Research Problem

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To make a comprehensive study of Reliance Fresh &know the Buying behaviour & of Reliance Fresh customers.

Type of research

Descriptive type research has used to complete the project. This research is base on fact finding enquires and the variables are totally independent and uncontrollable.

Data collection:

Primary Data Primary data of research are collected from direct resources (customer of Reliance fresh) through questionnaire.

Secondary Data

Secondary Data which are used for research to know the history scop of Retail industry are collected from already available resources like net and other sources

Universe

Universe of this research is reliance fresh customer of Delhi.

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Sampling technique

Random sampling is used for research project. I have given equal weightages to my all respondent and chose them randomly without any biased like gender, age, income culture.

Sample size

425 respondents has selected as sample size for research.

Data representation technique and tools Columns chart & Pie chart has used for representation.

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Understanding The Buying Behaviour Of Reliance Fresh Consumers

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Definition

Purchase decision making pattern that is a complex amalgam of needs

and desires, and is influenced by factors such as the consumer's (1)

societal role (parent, spouse, worker, etc.), (2) social and cultural

environment and norms, and (3) aspirations and inhibitions.

Buying Behaviour is in the Advertising, Marketing, & Sales and

Purchasing & Procurement subjects.

Buying Behaviour appears in the definitions of the following terms:

marketing research, advertisement (ad), ACORN, economic

environment, activities, interests, opinions (AIO) and consumer

research.

Buying Behaviour appears in these other term: consumer buying

behaviour.

Model of Buying Behaviour

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Marketing Other Buyer’s Buyer’s Buyer’s

Stimuli StimuliCharacteristics Decision Decision

Process

Product Economic Cultural

Problem recognitio

nProduct choice

PriceTechnolog

ical SocialInformation Search

Brand choice

Place Political Personal EvaluationDealer choice

Promotion Cultural

Psychological Decision

Purchase timing

Post

purchasePurchase amount

Behaviour

When I have analysed the model of buying Behaviour finding that people of DELHI are influenced by the marketing stimuli (4 P’s) people are focused on price rather than product, place and promotion, other factor which influenced people is the technological advancement.

Cultural SocialPersonal

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cultureReference Groups

Psychological

Cycle Stage MotivationSubculture Family Economic Perception

Circumstances Learning

Life StyleBeliefs and Attitudes

BUYERRoles and Statuses

Personality and

Social Class Self Concept

Reference groups can have potent influence on behaviour in general,

and they may also be very influential on consumer behaviour,

considering the ‘Consumer Goods Segment’. Family and friends in

specific are considered before making a decision about purchasing a

product. But their purchase decision depends completely on self-

opinion.

Where reference groups’ influence is operative, the advertiser should

stress not only the people who buy the product but also those who

influenced the purchasing decision.

The process may be viewed as starting when the consumer engages in

problem recognition. Problem recognition occurs when the consumer is

activated by awareness of a sufficient difference between his / her

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concept of ideal situation. The action occurs only when the consumer

perceives a sufficiently large discrepancy between the actual and ideal

states.

Given that the consumer is aroused to action, the next state is internal search for a quick and largely unconscious review of memory for stored information and of an experience regarding the problem. This information in the form of beliefs and attitude influence the consumer’s preference towards band. If an internal search does not provide sufficient information about

Products, or how to evaluate them, the consumer continues with a

more involved external search for information.

Any information stimuli are then subjected to information processing

activities. This process involves allocating attention to available stimuli,

deriving meaning from these stimuli. The alternating evaluation phase

involves comparing the information gained in the search process for

alternative product and brands to the product judging criteria on

standards the consumer has developed. When such a comparison leads

to favourable evaluations, the consumer is likely to develop a purchase

intention towards that alternative that received the most favourable

evaluation.

A purchase process follows strong purchasing intentions. This involves

a series of selection, including the type of retail outlet as well the

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specific brand on service to use. The consumer’s purchase then leads to

various outcomes. One such outcome is satisfaction as a result of direct

experience in using the brands. Satisfaction will affect the consumer’s

belief about the brand. Other outcome is dissatisfaction and post sale

doubt.

Many ad agencies conducted an in-depth study of consumer buying behaviour and found that they all crave for peer acceptance and parental non-influence. Beyond this they are an enigma

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(1). Gender of the consumer

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Data Collected- Data collected for this questionnaire to know the gender of customer of reliance fresh.

ANALYSIS— Data collected for project from 425 responded in which 275 are female which are 64.7% and 150 are male which are 35.29% of total respondent

Interpretation- In total respondent we analyses that most of the customer in this store is female and their demand always consider at the time of taking the decision. Company should try to attract new male customer by provide new scheme on their customer

(2). Age of customer

10-20 21-50 51& above

123 230 72

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Male & Female

150 275

Data Collected- Data collected for this questionnaire to know the age of customer of reliance fresh.

ANALYSIS— Data collected for project from 425 responded in which 123 are the age between 10-20 which are28.9% and230are between age of 21-50 which are54.29%and 72 are between age of 51 & above which are 16.9 % of total respondent

Interpretation- In total respondent we analyses that most of the customer are youth .in my observation I found that most new people believe in convenience shopping It help the company to keep management such type which understand the problem of customer easily and rectify the problem effectively.

(3). How offer do you shop

Daily ( ) week ( ) fortnightly ( ) once in month ( )

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Data Collected- Data collected for this questionnaire to know the shopping behaviour of customer of reliance fresh.

ANALYSIS— Data collected for project from 425 responded in which 22 are like to purchase daily which are5.1% and224arelike to purchase weekly which are52.27%and 89 are likely to purchase fortnightly which are 20.9%, 90 likely to purchase once in a month which are21.17% of total respondent

Interpretation-

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Daily Week Fortnightly Once in month

22 224 89 90

In total respondent we analyses that most of the customer are likely to purchase on weekend .in my observation I found that more scheme should be provided on weekend.

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(4). What do you mostly shop for at mentioned store?

Vegetables ( ) Grocery ( ) cosmetic product ( ) all product ( )

Vegetable

Grocery

Cosmetic product

All product

108 96 21 200

Data Collected-

Data collected for this questionnaire to know the products which are like to purchase by the customer.

ANALYSIS— Data collected for project from 425 responded in which 200 customer are like to purchase all product which are47.00% and108 are like to purchase vegetables which are25.41%and 96 are likely to purchase grocery 22.5 which are 22.58.%, 21 likely to purchase cosmetic product which are4.9% of total respondentInterpretation-

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In total respondent we analyses that most of the customer are like to purchase all product in the store. Company should try to retain the customer. And should increase the variety o cosmetic product& grocery.

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(5). Preference of shopping?

Quality ( ) Brand ( ) Price ( ) one stop shop

Quality brand Price One stop shop

102 134 59 130

Data Collected- Data collected from this questionnaire to know the preference the shopping

ANALYSIS— Data collected for project from 425 responded in which 134 customer are believe in reliance brand which are31.50% and130 are like to purchase in one stop shop which are 30.54%and 102 are like to purchase quality product which are 24.00%, only 59 respondent consider price which are 13.08.%.

Interpretation In total respondent we analyses that most of the customer are believe in reliance brand like to purchase qualitative

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product in stop shop. Here I observed that people want to purchase fresh and original product and want better service.

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(6). which store do you kept in preference for purchasing

Reliance Fresh ( ) Big apple ( ) other ( ) Local market

Local market

Reliance fresh Big apple Other

244 83 80 18

Data Collected- Data collected from this questionnaire to know the preference of the purchasing (comparison of store to other).

ANALYSIS— Data collected for project from 425 responded in which 244 customer are like to purchase from local market which are57.74% and 83 are like to purchase from reliance fresh which are19.51%and 83 are likely to purchase from Big apple which are 18.82.%, 18 likely to purchase other which are4.2% of total respondent

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Interpretation In my observation I found till today organised retail sector didn’t penetrate the market. Company should try to open new convenience store and provide more scheme and good service to customer to penetrate the market. Initial it may be costlier, but it will give long term benefit.

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(7). Do advertisement and promotion influence your shopping decision?

Yes ( ) No ( )

Yes No390 35

Data Collected- Data collected from this questionnaire to know the effect of promotion scheme on purchasing.

ANALYSIS— Data collected for project from 425 responded in which 390 customer are like promotion scheme which are91.76% and 35 are those people which say promotion scheme doesn’t effect on purchasing.

Interpretation In my observation I found promotion scheme is must to sustain customer attract customer & influence the purchasing.

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(8). Are Promotion scheme easy to understand

Yes ( ) NO ( ) some time ( )

Yes no Some time218 89 118

Data Collected- Data collected from this questionnaire to know display of promotion scheme..

ANALYSIS— Data collected for project from 425 responded in which 218 customer say yes which are51.29% and 89 are those which say no which are 20.94 and 118 say some time.

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Interpretation- Company should try making promotion scheme easy understandable, promotion scheme should be in both in English & Hindi

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(9). How likely are you to recommend Reliance Fresh to a friend or relative? Would you say the chances are? Excellent ( ) Good ( ) Fair ( ) Poor ( )

Excellent Good Fair Poor

29 198 190 8

Data Collected- Data collected from this questionnaire to know the satisfaction level of customer.

ANALYSIS— Data collected for project from 425 responded in which 29 customer say excellent which are6.8% and19 8 say good which are 46.6%, 190 say fair which are 44.7% and 8 customer are those say poor

Interpretation

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In my observation I found that only 46.6% customer are fully satisfied from the store company should try satisfy the customer by providing better service and rectify their problem immediately.

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(10). Which form of advertisement do you think is most effective?

Print ( ) TV ( ) Radio ( ) telephone ( )

Print TV Radio Telephone74 119 56 176

Data Collected- Data collected from this questionnaire to know the better advertisement mode of promotion.

ANALYSIS— Data collected for project from 425 responded in which 119 customer say TV which are28% and 74 say print which are 17.4%, 56 say Radio which are 13.17% and 176 customer are say telephone.

Interpretation -

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According responded result company can choose telephone as best for advertisement and call indusial for attracting the customer

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(11). Did you get help from CSA when asked?

Yes ( ) No ( ) some time ( ) Never ( )

Yes NO Some time Never192 95 124 14

Data Collected- Data collected from this questionnaire to know about CSA performance.

ANALYSIS— Data collected for project from 425 responded in which 192 customer say yes which are 45.1% and 95 say no which are 22.35%, 124 say some time which are 29.17% and 14customer are say never which are 3.25%.

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Interpretation- According respondent customers are not fully satisfied company should recruit new skilled employee for better performance.

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Finding

1-Mazority of customers here is female.2- Majority of customers are young. 3-Majority customers like to purchase all goods from Reliance fresh. 4- Customers like one stops shopping.5-Local market till today is the first choice of customer. 6-Advertisement is the biggest way to attracting the customer.7-Promotion scheme not so easy to under stand for customer.8-Most of customer is not fully satisfied with store.9-Tele phone is the best way for attracting the customer.10 Shortages of skilled workers.

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Limitations

The project has some limitations because it is totally

based on efforts of individuals. Peoples may be careless

and may not give correct answer to the questions,

because of so many reasons.

It is totally based on personal efforts of individuals.

Some of the consumers are unable to understand

the questionnaire.

Language is one of the worst problem, some of the

consumers are unable to understand English.

Some consumers are not interested in filling

questionnaire.

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Suggestion73

1- More promotion scheme should be used to penetrate the market.

2- Skilled employees should be higher because mostly customers are young.

3- Promotion scheme should in such way that customer can understand easily.

4- Service of store should be providing in such way which full the need of the customer.

Appendix

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Reliance Fresh Questionnaire

NAME-

GENDER-AGE - Monthly income-

1- How offer do you shop

Daily ( ) week ( ) fortnightly ( ) once in month ( )

2- What do you mostly shop for at mentioned store

Vegetables ( ) Grocery ( ) cosmetic product ( )

3- Which store do you shop?

Reliance Fresh ( ) Big apple ( ) other ( ) Local market

4- Preference of shopping

Quality ( ) Brand ( ) Price ( ) one stop shop

5- Do advertisement and promotion influence your shopping decision

Yes ( ) No ( )

6- Are Promotion scheme easy to understand

Yes ( ) NO ( ) some time ( )

7- How likely are you to recommend Reliance Fresh to a friend or relative? Would you say the chances are?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

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8- Are the Price of Reliance fresh is lower than the other competitor Yes ( ) No ( ) Equal ( ) no idea ( )9- Which form of advertisement do you think is most effective?

Print ( ) TV ( ) Radio ( )

10- Did you get help from CSA when asked?

Yes ( ) No ( ) some time ( ) Never ( )

References

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Referred books-

Marketing Research – PaneerselvamResearch Methodology – C.R KothariPrinciples of Marketing – Philip Kotler

Referred site-

www.ril.com www.google.com www.wickipedia.com

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