Description
CONSUMER BUYING BEHAVIOUR IN RELIANCE FRESH
Study of Consumer buying behaviour In Reliance Fresh New Delhi Project Report Submitted To SCHOOL OF MANAGEMENT SCIENCES For The Award Of Post Graduate Diploma in Management
Submitted By Amit Kumar Gupta (Roll No. : PG/08/05)
SCHOOL OF MANAGEMENT SCIENCES LUC N!"
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Study of Consumer Buying Behaviour In Reliance Fresh
Submitted By Amit Kumar Gupta (Roll No. : PG/08/05)
SCHOOL OF MANAGEMENT SCIENCES LUC N!"
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Reliance fresh
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Certificate
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Executive Summary
Retailing is the interface et!een the pro"#cer an" the in"i$i"#al cons#%er #&ing for personal cons#%ption' This e(cl#"es "irect interface et!een the %an#fact#rer an" instit#tional #&ers s#ch as the go$ern%ent an" other #l) c#sto%ers' A retailer is one !ho stoc)s the pro"#cer*s goo"s an" is in$ol$e" in the act of selling it to the in"i$i"#al cons#%er+ at a %argin of profit' As s#ch+ retailing is the last lin) that connects the in"i$i"#al cons#%er !ith the %an#fact#ring an" "istri #tion chain' The retail in"#str& in In"ia is of late often eing haile" as one of the s#nrise sectors in the econo%&' AT ,earne&+ the !ell-)no!n international %anage%ent cons#ltanc&+ recentl& i"entifie" In"ia as the .first %ost attracti$e retail "estination* glo all& fro% a%ong thirt& e%ergent %ar)ets' It has %a"e In"ia the ca#se of a goo" "eal of e(cite%ent an" the c&nos#re of %an& foreign an" "o%estic e&es' The entr& of foreign an" In"ian retail giants li)e /al-Mart+ Metro+ Reliance+ 0irla+ Tata etc' %a"e In"ian %ar)et %ore co%petiti$e !hich is at c#t throat le$el' So ho! retailers can reach to their en" c#sto%ers+ to !in the %in" share an" increase the as)et si1e of each shopping trip' In"ia retail in"#str& is the largest in"#str& in In"ia+ !ith an e%plo&%ent of aro#n" 23 an" contri #ting to o$er 453 of the co#ntr&6s G7P' Retail in"#str& in In"ia is e(pecte" to rise 893 &earl& eing "ri$en & strong inco%e gro!th+ changing lifest&les+ an" fa$o#ra le "e%ographic patterns' It is e(pecte" that & 854: %o"ern retail in"#str& in In"ia !ill e !orth ;S< 4=9- 855 illion' In"ia retail
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in"#str& is one of the fastest gro!ing in"#stries !ith re$en#e e(pecte" in 855= to a%o#nt ;S< >85 illion an" is increasing at a rate of 93 &earl&' A f#rther increase of =-23 is e(pecte" in the in"#str& of retail in In"ia & gro!th in cons#%eris% in #r an areas+ rising inco%es+ an" a steep rise in r#ral cons#%ption' It has f#rther een pre"icte" that the retailing in"#str& in In"ia !ill a%o#nt to ;S< 84'9 illion & 8545 fro% the c#rrent si1e of ;S< ='9 illion' The gro!th of scope in the In"ian retail %ar)et is %ainl& "#e to the change in the cons#%er*s eha$io#r' For the ne! generation ha$e preference to!ar"s l#(#r& co%%o"ities !hich ha$e een "#e to the strong increase in inco%e+ changing lifest&le+ an" "e%ographic patterns !hich are fa$o#ra le' 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 ne t ! years in their retail division and plans to begin retail stores in "#! cities across the country. $he 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 20((to the company. . A) $he 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
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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 ,andhi& had made visionary and deep meaningful statement at -ohannesburg& )outh Africa in (.#0. 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. $oday the entire firm engaged in a process of creating a life time value and relationship with customers. $his report start with discussion on the diversity of consumer behaviour and the need for studying consumer buying behaviour and consumer as a related field of marketing .this can be largely be attributed to the prevailing market situation .$oday the company image is built and made known by its customers. $hus success of the firm determined how effective it has been in meeting the diverse consumer need and wants by treating each customer as uni/ue and offering products and services to suit has or her need. Consumer #&ing eha$io#r !ill e a pri%ar& force in "eter%ining ho! this transition !ill e$ol$e' Getting closer to the c#sto%er in to"a&*s highl& co%petiti$e lan"scape is essential for the entire in"#str& an" is no longer j#st a retail iss#e' It re?#ires all organisations across the s#ppl& chain to !or) as a single enterprise+ sensing an" respon"ing rapi"l& to cons#%er "e%an" in a co-or"inate" %anner' 7etaile" anal&sis of the changing patterns of cons#%er "e%an"+ shopping tren"s'
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This research report is ase" on to )no! the 4- Major factors infl#encing cons#%er #&ing eha$io#r' 8- 0#&ing "ecision process' >- The stage in #&ing "ecision process @- A!areness of cons#%er to!ar"s organise" retail sector
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Declaration
I here & "eclare that this s#%%er project report title" A0#&ing 0eha$io#rBcons#%er satisfaction of Reliance Fresh c#sto%er in A7elhi'” is the res#lt of %& o!n effort in the training !hich I "i" as a part of the c#rric#l#%+ for the f#lfil%ents of POST GRA7;ATE 7IPLOMA IN MANAGEMENT CPG7MD' It has not this report is gen#ine' een "#plicate" fro%
an& other earlier !or)s an" all infor%ation pro$i"e" in
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This report is s# %itte" for the partial f#lfil%ents of PG7M progra%' It has not een s# %itte" to an& other #ni$ersit& or for an& other "egree'
Date:
AMIT KUMAR GUPTA PGDM (MARKETING) SMS LUCKNOW
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ACKNOWLEDGEMENT
I ta)e this opport#nit& to e(press %& sincere gratit#"e to the follo!ing personalities !itho#t !hose help an" g#i"ance the s#ccessf#l co%pletion of %& project !or) !o#l" ha$e een re%aine" a "rea%'
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I e(ten" %& heartfelt than)s to o#r HR Miss' SHIEANGALI SINGH for the constant an" $al#a le g#i"ance thro#gh o#t %& co#rse' I !o#l" li)e to ta)e the pleas#re of this opport#nit& to e(press %& heartf#l gratit#"e to %& g#i"e Professor Mrs EAN7ANA SHRIEASTAE CFac#lt& Me% er+ SMSD !ho too) personal interest an" ga$e $al#a le s#ggestions thro#gh o#t %& fiel" !or) an" co%pletion of the project' I than) all %& fac#lt& %e% ers of M0A "epart%ent for their $al#a le s#ggestions thro#gho#t %& co#rse' The i%portance of the %oral s#pport an" goo" !ishes of %& parents an" frien"s is e(ternal an" I a% $er& %#ch in"e te" to the%' Finall& I than) all %& frien"s !ho "irectl& or in"irectl& helpe" %e a lot "#ring %& project' AMIT KUMAR GUPTA PGDM-MARKETING SMS LUCKNOW & hi%
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Contents
S.N.
INDEX Certificate Executive Summary Declaration Ac no!le"#ement
PAGE NO 4 5 9 11
CHAPTER- 1 1.1 1. 1.! 1." 1.# 1.$ CHAPTER.1 . .! ." .# CHAPTER-!
CHAPTER-" CHAPTER-# CHAPTER-$
INTRODUCTION &BACKGROUND Com$any %vervie! &o$ular &rofile Su$$ly C'ain (o"el S)%* Analy+i+ Cor$orate Social ,e+$on+i-ility (a.or &layer RESEARCH METHODOLOG% &DESIGN %-.ective of ,e+earc' *y$e of ,e+earc' Source of "ata / Collection tool Sam$lin# Sam$le +i0e ANAL%SIS & INTERPRETATION (eanin# of con+umer 1uyin# 1e'aviour 2nter$retation of collect "ata RESEARCH &INDING LIMITATION O& RESEARCH SUGGESTION APPENDIX RE&RENCES
14 21 27 30 33 35 38 41 41 42 42 44 49 69 71 73 75 77
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RELIANCE
'G()*t+ +a, -) ./0/t at Re./a-1e. I 2ee3 (e4/,/-5 06 4/,/)-. O-.6 *+e- 6)7 1a- 8(ea0 /t9 6)7 1a- 8) /t.'
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D+/(7:+a/ H. A0:a-/ 3oun"er C'airman ,eliance 4rou$ Decem-er 285 1932 6 7uly 65 2002
RELIANCE GROUP The Reliance Gro#p+ fo#n"e" & 7hir# hai H' A% ani C4F>8-8558D+ is In"ia6s largest pri$ate sector enterprise+ !ith #sinesses in the energ& an" %aterials $al#e chain' Gro#p6s ann#al re$en#es are in e(cess of ;S7 8= illion' The flagship co%pan&+ Reliance In"#stries Li%ite"+ is a Fort#ne Glo al 955 co%pan& an" is the largest pri$ate sector co%pan& in In"ia' 0ac)!ar" $ertical integration has een the cornerstone of the e$ol#tion an" gro!th of Reliance' Starting !ith te(tiles in the late se$enties+ Reliance p#rs#e" a strateg& of ac)!ar" $ertical integration - in pol&ester+ fi re inter%e"iates+ plastics+ petroche%icals+ petrole#% refining an" oil an" gas e(ploration an" pro"#ction - to e f#ll& integrate" along the %aterials an" energ& $al#e chain'
The Gro#p6s acti$ities span e(ploration an" pro"#ction of oil an" gas+ petrole#% refining an" %ar)eting+ petroche%icals Cpol&ester+ fi re inter%e"iates+ plastics an" che%icalsD+ te(tiles an" retail'
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Reliance enjo&s glo al lea"ership in its #sinessesG The Gro#p e(ports pro"#cts in e(cess of ;S7 49 illion to %ore than 455 co#ntries in the !orl"' There are %ore than 89+555 e%plo&ees on the rolls of Gro#p Co%panies' Major Gro#p Co%panies are Reliance In"#stries Li%ite" Cincl#"ing %ain s# si"iaries Reliance Petrole#% Li%ite" an" Reliance Retail li%ite"D an" Reliance In"#strial Infrastr#ct#re Li%ite"' Reliance Industries 0imited is India1s largest private sector conglomerate 2and second largest overall3 with an annual turnover of 4)5 65.. billion and profit of 4)5 !.#5 billion for the fiscal year ending in March 200# making it one of India1s private sector 7ortune ,lobal 500 companies& being ranked at 208th position 2200#3. 9
It was founded by the Indian industrialist ;hirubhai Ambani in (.88. 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. <ritics allege that the rise of Reliance Industries to the top slot in terms of market capitali=ation is largely due to ;hirubhai1s ability to manipulate the levers of a controlled economy to his advantage. $hough the company1s oil'related operation forms the core of its business& it has diversified its operations in recent years. After severe differences between the founder1s two sons& Mukesh Ambani and Anil Ambani& the group was divided between them in 2008. In )eptember 200#& Reliance Industries was the only Indian firm featured in the 7orbes1s list of >world1s (00 most respected companies>
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RI
• • •
Subsidiaries of
• •
• • •
Reliance Petrole#% Ranger Far%s Li%ite" Retail Concepts an" Ser$ices CIn"iaD Pri$ate Li%ite" Reliance Retail Reliance Glo al Manage%ent Ser$ices CPD Li%ite" Reliance 0iophar%ace#ticals Reliance Ghatraj Ser$ices Reliance Engineering Associates CPD Li%ite"
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Reliance Retail Limite
Reliance is gearing #p to re$ol#tioni1e the retailing in"#str& in In"ia' To!ar"s this en"+ Reliance is aggressi$el& !or)ing on intro"#cing a pan-In"ia net!or) of retail o#tlets in %#ltiple for%ats' A !orl" class shopping en$iron%ent+ state of art technolog&+ a sea%less s#ppl& chain infrastr#ct#re+ a host of #ni?#e $al#e-a""e" ser$ices an" a o$e all+ #n%atche" c#sto%er e(perience+ is !hat this initiati$e is all a o#t' The retail initiati$e of Reliance !ill e !itho#t a parallel in si1e an" sprea" an" %a)e In"ia pro#"' Ens#ring etter ret#rns to In"ian far%ers an" %an#fact#rers an" greater $al#e for the In"ian cons#%er+ oth in ?#alit& an" ?#antit&+ !ill e an integral feat#re of this project' 0& creating $al#e at all le$els+ !e !ill acti$el& en"ea$o#r to contri #te to In"ia6s gro!th' The project !ill oast of a sea%less s#ppl& chain infrastr#ct#re+ #nprece"ente" e$en & !orl" stan"ar"s' Thro#gh %#ltiple for%ats an" a !i"e range of categories+ Reliance is ai%ing to to#ch al%ost e$er& In"ian c#sto%er an" s#pplier' ?ith a vision to generate inclusive growth and prosperity for farmers& vendor partners& small shopkeepers and consumers& Reliance Retail 0imited 2RR03& a subsidiary of RI0& was set up to lead Reliance ,roup%s foray into organi=ed retail.
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?ith a 2"@ share of world ,;A& retail is a significant contributor to overall economic activity across the world. Bf this& organi=ed retailing contributes between 20@ to 55@ in various developing markets. $he Indian retail industry is pegged at 5 600 billion and growing at over (6@ per year. Bf this& presently& organi=ed retailing is about 5@. $his is e pected to grow to (0@ by 20((. RR0 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. RR0 launched its first store in Covember 2008 through its convenience store format DReliance 7resh%. )ince then RR0 has rapidly grown to operate 5.0 stores across (6 states at the end of 7E 200"'0#. RR0 launched its first DReliance ;igital% store in April 200" and its first and India%s largest hypermarket DReliance Mart% in Ahmadabad in August 200". $his year& RR0 has also launched its first few specialty stores for apparel 2Reliance $rends3& footwear 2Reliance 7ootprints3& Fewellery 2Reliance -ewels3& books& music and other lifestyle products 2Reliance $imeout3& auto accessories and service format 2Reliance AutoGone3 and also an initiative in the health and wellness business through DReliance ?ellness%. In each of these store formats& RR0 is offering a uni/ue set of products and services at a value price point that has not been available so far to the Indian consumer. Bverall& RR0 is well positioned to rapidly e pand its e isting network of 5.0 stores which operate in 5" cities. ;uring the year& RR0 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
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institutional customers. RR0 provides its customers with high /uality produce that has better shelf life and more consistent /uality than was available earlier. RR0 has made significant progress in establishing state'of'the'art staples processing centres and e pects to make them operational by May 200#. $hrough the year& RR0 also e panded its supply chain infrastructure. $he <ompany is fully geared to meet the re/uirements of its rapidly growing store network in an efficient manner. Recogni=ing that strategic alliances are going to be a key driver to its retail business& in 7E 200"'0#& RR0 established key Foint ventures with international partners in apparel& optical and office products businesses. 7urther& RR0 will continue to seek synergistic opportunities with other international players as well. $his year& RR0 will continue its focus on rapid e pansion of the e isting and other new formats across India.
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P)37.a( P();/.e, at Re./a-1e Reta/.
Management team Name Mr. M !es" Am#ani Ni!"i$ R Mes"%ani &ita$ R Mes"%ani Ma'" mita Mo"anti A!as"a( Lo!"an'e De)an'ra C"a%$a Designation Chair%anHManaging 7irector E(ec#ti$e 7irector E(ec#ti$e 7irector 7ep#t& General Manager Area Manager-Operation HSales an" NSO Eice-Presi"ent-0#siness Hea"+ Merchan"ise Hea"
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* #in Mangement
No%ro+ee, State Hea" Categor&
!ormats o" Reliance RETAIL
Reliance !resh" Reliance #art" Reliance $igital" Reliance %rend&" Reliance !ootprint" Reliance Wellness" Reliance 'ewels" Reliance %imeout and Reliance Super"
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RELIANCE -RES&
A()A !R*SH A()* (A$A+S #*
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 ne t ! years in their retail division and plans to begin retail stores in "#! cities across the country. $he reliance fresh supermarket chain is ril%s rs 25&000 crore venture and it plans to add more stores across different g& and
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eventually have a pan'India footprint by year 20((. $he super marts will sell fresh fruits and vegetables& staples& groceries& fresh Fuice bars and dairy products and also will sport a separate enclosure and supply'chain for non' vegetarian products. Hesides& the stores would provide direct employment to 5 lakh young Indians and indirect Fob opportunities to a million people& according to the company. $he company also has plans to train students and housewives in customer care and /uality services for part'time Fobs ,AC) -R+./$ /e can see %an& e(a%ples of #sinesses !here+ first !e gro! an" then thin) of e(pan"ing #t Reliance is ?#ite "ifferent' Reliance has "e$elope" s#ch h#ge a%o#nt of reso#rces an" capital o$er the &ears that !hene$er it steps into an& seg%ent it is not re?#ire" to !ait for gro!ing signal+ that*s !h& it al!a&s thin)s of e(pan"ing !itho#t an& o#n"aries' Reliance retail is ne(t Step & RIL !hich !ill e a pan In"ia project' Reliance Fresh is the retail chain "i$ision of Reliance In"#stries of In"ia !hich is hea"e" & M#)esh A% ani' Reliance has entere" into this seg%ent & opening ne! retail stores into al%ost e$er& %etropolitan an" regional area of In"ia' Reliance plans to in$est Rs 89555 crores in the ne(t @ &ears in their retail "i$ision an" plans to egin retail stores in =2@ cities across the co#ntr&' The Reliance Fresh s#per%ar)et chain is RIL*s Rs 89+555 crore $ent#re an" it plans to a"" %ore stores across "ifferent g+ an" e$ent#all& ha$e a pan-In"ia footprint & &ear 8544' The s#per %arts !ill sell fresh fr#its an" $egeta les+ staples+ groceries+ fresh j#ice ars an" "air& pro"#cts an" also !ill sport a separate enclos#re an" s#ppl&-chain for non-$egetarian pro"#cts' 0esi"es+ the stores !o#l"
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pro$i"e "irect e%plo&%ent to 9 la)h &o#ng In"ians an" in"irect jo opport#nities to a %illion people+ accor"ing to the co%pan&' The co%pan& also has plans to train st#"ents an" ho#se!i$es in c#sto%er care an" ?#alit& ser$ices for part-ti%e jo s' The co%pan& is planning on opening ne! stores !ith store-si1e $ar&ing fro% 4+955 s? ft to >+555 s? ft+ !hich !ill stoc) fresh fr#its an" $egeta les+ staples+ FMCG pro"#cts an" "air& pro"#cts' Each store is sai" to e !ithin a ra"i#s of 4-8 )% of each other+ in relation to the concept of a neigh or store' Ho!e$er+ this is onl& the entr& roll-o#t that the co%pan& has planne"' 0angalore is sai" to ha$e @5 stores in all & the en" of the &ear' In a "ra%atic change "#e circ#%stances pre$ailing in ;P+ /est 0engal an" Orissa+ It !as %entione" recentl& in Ne!s 7ailies that+ Reliance Retail is %o$ing o#t stoc)ing' Reliance Retail has "eci"e" to %ini%i1e its e(pos#re in the fr#it an" $egeta le #siness an" position Reliance Fresh as a p#re pla& s#per %ar)et foc#sing on categories li)e foo"+ FMCG+ ho%e+ cons#%er "#ra les+ IT+ !ellness an" a#to accessories+ !ith foo" acco#nting for the #l) of the #siness' The co%pan& %a& not stoc) fr#it an" $egeta les in so%e states+ Orissa eing one of the%' Tho#gh Reliance Fresh is not e(iting the fr#it an" $egeta le #siness altogether+ it has "eci"e" not to co%pete !ith local $en"ors partl& "#e to political reasons+ an" partl& "#e to its ina ilit& to create a ro #st s#ppl& chain' This is ?#ite "ifferent fro% !hat the fir% ha" originall& planne"' /hen the first Reliance Fresh store opene" in H&"era a" last Octo er+ not onl& "i" the co%pan& sai" the store*s %ain foc#s !o#l" e fresh pro"#ce li)e fr#its an" $egeta les at a %#ch lo!er price+ #t also spo)e at length a o#t its Afar%-to-for)** theor&' The i"ea the co%pan& spo)e a o#t !as to so#rce fro% far%ers an" sell "irectl& to the cons#%er re%o$ing %i""le%en o#t of the !a&'
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.ARM TO .ORK The Reliance retail co%pan& so#rces sa& it is setting asi"e Rs 95+555 crore to #il" its far%-to-for) lin)age' Reliance has "ra!n #p plans for a presence in =2@ to!ns an" :+555 %an"i C!holesale %ar)etD to!ns !ith 4+:55 r#ral #siness h# s to ser$ice
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these' It has alrea"& rolle" o#t 4== Reliance Fresh stores across %ajor to!ns in 44 states' Accor"ing to a co%pan& report+ RIL is targeting a t#rno$er of Rs @5+555 crore in the ne(t fe! &ears'
TRAD ITIONAL MODEL O. RETAIL RELIANCE /.ARM TO .ORK”
S.(( 0 CHAI/ #+$* S of Reliance Retail
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Reliance starte" its retail operations of Reliance Fresh stores !ith follo!ing s#ppl& chain %o"el' Proc#ring "irectl& fro% the far%ers an" operating !ith %o"erate %argin #t %ass selling !as )e& to Reliance fresh operation for first fe! %onths' The follo!ing fig#re "epicts the first Reliance fresh %o"el RELIANCE .RES&
FARMERS CATEGOR I4
Fa rm ers
FARMERS CATEGOR I8
FARMERS CATEGOR I>
Ow nT
ran s
po r ta
tio n
COLLECTIO N POINTB;NI T
RELIANCE OWN LOGISTICS
ers rm a F
n Tra n Ow
n atio t r spo
n lia Re
n ow e c
RF tics gis Lo
PROCESSIN G ;NITBPOINT
Re lia nc RF eo wn L
og
ist ics
RELIANCE FRESH O;TLETS
RELIANCE FRESH O;TLETS
RELIANCE FRESH O;TLETS
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W&OLESALE TRADING 0WST1 J Reliance for%ali1e" its secon" s#ppl& chain %o"el to shift itself fro% grocer& retailer to grocer& s#pplier & foc#sing an" esta lishing itself in Man"i*s' STEPS IN WTS MODEL2 4D Reliance has o!ne" far%s on contract asis for pro"#ction of specific crop !hich is "eci"e" after e(tensi$e research "epen"ing on • SOIL CON7ITIONS+ • CLIMATE CON7ITIONS+ • RET;RN OEER COSTS INC;RRE7' So as to &iel" est possi le res#lts' 8D 7ifferent $egeta les an" fr#its fro% s#ch far%s are collecte" thro#gh reliance o!n Logistics an" ro#ght to collection Processing centres !here ?#alit& chec) an" other re?#ire" processing is "one' In processing centres !or)ers !earing alacla$as+ !oollen tro#sers an" #l)& jac)ets !or) insi"e a roo% )ept at a constant >oC+ peeling an" chopping $egeta les+ spinning the% "r& an" then heaping the% in s%all plastic pac)ets efore placing the% in plastic transport crates' At the other en" of the 9+555-s?-% !areho#se+ %en #nloa" crates of fr#its fro% a tr#c) p#lle" #p to a spotless loa"ing "oc)' A ?#alit&-control e(pert sa%ples e$er& tenth crateG if the fr#its are goo" a tea% !ill rea"& the% for "eli$er& !ithin ho#rs to Reliance fresh stores aro#n" "ifferent places li)e ;'P an" as far a!a& as H&"era a" an" e$en M#% ai Cfor%erl& 0o% a&D' If the& are not+ !or)ers !ill inspect the entire ship%ent an" "iscar" an&thing elo! stan"ar"'
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>D Merchan"ise fro% these collection processing centers are collecte" an" loa"e" for /holesale %an"i*s' As this %erchan"ise is to e %a"e a$aila le & @ A'M in %orning th#s "eli$eries in tr#c)s are sent at ti%e "epen"ing #ponJ TRANSIT TIME' K Ti%e re?#ire" reaching "estination i'e' %an"i*s' MARGIN TIME' K Ti%e perio" et!een a tr#c) reaching %an"i an" then ;nloa"s' Can e 8 to > ho#rs' LOADING AND UNLOADING TIME. @D Fro% %an"i*s !here the tr#c)s ha$e #nloa"e"+ roa"si"e $en"ors an" p#ll carters fr#its an" $egeta les to s#ppl& in ho#sehol"s' een 0#&
9D In case still so%e $egeta les an" fr#its are not sol" reliance logistics o!n Transportation sen"s the% to reliance fresh stores'
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SWOT ANAL#SIS
The In"ian retail %ar)et acco#nte" for < 855 illions' Foo" acco#nts for o$er t!o-thir"s of the <855- illion In"ian retail %ar)et' Iet+ it has seen less than 4 per cent penetration & %o"ern retail so far' Reliance in"#stries !hich al!a&s loo)ing for ne! #siness opport#nities j#st starte" a ne! era !ith its intro"#ction of ne! concept stores na%e" Reliance Fresh !ith opening con$ince store in high streets of 0anjara hills of H&"era a"' Reliance Fresh is $er& "ifferent fro% !hat %o"ern retail has offere" in In"ia so far an" !ith this reliance is planning to esta lish strong retail net!or) in In"ia in foo" an" far% sector' The& ha$e starte" !ith ne! ele$en stores in the last !ee) an" the& are thin)ing to a"" 455 %ore stores to their feather & the en" of this &ear' Let*s "o a S/OT anal&sis on the Reliance Fresh'
Strengths1
Reliance is the first into enter into this #norgani1e" sector of $egeta les an" fr#its' Accor"ing to the% its intentions to ha$e4553 far% fresh foo"s in their ne! retail stores' It is also a""ing shortl& a j#ice ar+ an" e$en a large co#nter for p#ja flo!ers' In fact+ o$er :5 per cent of the floor space has een "e"icate" to fresh fr#its an" $egeta les+ the rest to other foo" pro"#cts li)e staples+ spices+ a)er&+ etc' 0#t reliance has "eci"e" not to a"" an& ar soap or toothpaste an"
32
"etergent in its shel$es' So & #sing this strateg& the& are positioning the%sel$es "ifferent fro% other pla&ers of the in"#stries li)e Foo" !orl"+ 0ig 0a1aar an" Nilgiris' 0#t o$er co%e the short co%ings of these speciali1e" stores the& are also intro"#cing ne! Reliance f#llfle"ge" s#per%ar)et calle" Sha)hari 0han"ar !hich offers each an" e$er&thing fro% the staple to soap' Most of the staples are #n"er its o!n pri$ate la el ran" L .Reliance Select*' There is a 955g channa "al pac) price" at Rs 82+ a 955g #ra" "al pac) for Rs >F+ all #n"er Reliance*s o!n ran"' E(cepting a fe! pac)ets of Nestle*s Maggi+ or MTR*s %asalas or Pepsi*s La&s chips+ there is $er& little shelf space gi$en to the ig ran" o!ners in the co#ntr&' ReasonJ pri$ate la els offer far etter profit %argin to the retailer than ran"e" pro"#cts of FMCG co%panies' Most of these o#tlets !ill nee" onl& 8+555-9+555 s?' ft' A s#per%ar)et %a& nee" as %#ch as 2+555-45+555 s?' ft'
Weakness1
This is "efinitel& an interesting #siness $ent#re #t it %a& %iss o#t on the opport#nit& to capt#re a greater share of the c#sto%er*s !allet' For c#sto%ers+ too+ this co#l" e ir)so%e+ as the& !o#l" ha$e to $isit another store to pic) #p essentials' Reliance co#l" easil& fi( this pro le% & a""ing a fe! s%all co#nters for so%e asic non-foo" pro"#cts' Accor"ing to their official this for%at is not final one the& are accepting the ne! changes !hich are re?#ire" to attract the large n#% er of c#sto%ers'
+pportunities
33
Reliance !ants to #il" a high-profita ilit& #siness an" foo" is+ perhaps+ the est $ent#re to start' That is eca#se the In"ian foo" s#ppl& chain is grossl& inefficient' There are se$eral inter%e"iaries+ each of !ho% a""s his o!n profit %argin to the cost' 0esi"es+ there is h#ge !astage in transit' This offers potential for sa$ings an" profits' To re"#ce the cost an" increase the profit it has een so#rcing o#t its re?#ire%ents fro% the far%ers' For e(a%ple+ the leaf& $egeta les+ rinjals+ to%atoes an" green chilies in the 0anjara Hills o#tlet !ere so#rce" "irectl& fro% far%ers in Eanti%a%"i+ Che$ella an" near & %an"als in Ranga Re""& "istrict of An"hra Pra"esh' The s#ppl& chain alrea"& has een ac)e" & fe! h#n"re" far%ers the n#% er is esti%ate" to to#ch %illion in ne(t fi$e &ears' The %ain ai% of the reliance is to eli%inate the inter%e"iaries in the sector an" re"#ce the cost' S%aller stores ha$e t!o a"$antages' The& ring "o!n the cost of real estate Can" increase profitsD' It is easier to fin" space for s%all con$enience stores in a ?#iet neigh o#rhoo" than for s#per%ar)ets in high streets'
%hreats1
This %o"el is engineere" to cloc) a faster t#rno$er of in$entor& L Reliance e(pects cons#%ers to $isit the store at least t!ice a !ee) for their top-#p groceries' Each store !ill ha$e an in$est%ent of Rs 95 la)h to Rs :5 la)h' ;nli)e glo al retailers !ho operate on thin %argins+ Reliance Retail is loo)ing at a fairl& high%argin #siness %o"el' 7eli eratel& stoppe" short of eing a f#ll-fle"ge" s#per%ar)et rather+ it has li%ite" itself to a foo" an" grocer& con$enience store' The& also ha$e a threat fro% the e(isting s#per%ar)ets !hich
34
pro$i"es all the ser$ices to its c#sto%ers' For E(a%ple Foo" !orl" an" Nilgiris also pro$i"es foo" an" e$erages !ith other personal care pro"#cts' These con$ince are not e(iste" in the present Reliance retail stores'
C+R(+RA%* S+CIA R*S(+/SI,I I%0 To"a& !hen %ost of the co%panies are #s& in %a)ing profits & an& %eans+ there are fe! Ones !ho are foc#se" to ret#rn this societ&+ a part of !hat the& ha$e earne" thro#gh this societ&' Reliance retail is one of the%' Follo!ing efforts of reliance retail are ai%e" at enefiting the societ& %a)ing reliance sociall& responsi leJ 4DReliance Retail ai%s at recruiting people from the underprivileged community in societ&' MHence+ !e are planning to train st#"ents fro% corporation schools an" schools r#n & NGOs' An"+ !e consi"er this as a part of o#r corporate social responsi ilit&+M he sai"' As)e" !hether the co%pan& !ill ta)e st#"ents on an e%plo&%ent asis an" pa& the% a stipen" "#ring the co#rse perio"+ he sai" that act#all&+ it is
35
planning to charge a Ms%all feeM fro% those !ho !ant to join the co#rse Mas !e !ant to ring in so%e "iscipline an" reg#larit& a%ong the st#"entsM+ an" !ill rei% #rse that once the& are in"#cte" into ser$ice' 8D Far%ing in In"ia is highl& frag%ente" an" s# ject to harsh cli%atic con"itionsJ once har$este"+ it is $er& "iffic#lt to )eep fr#its an" $egeta les fresh' To sec#re high ?#alit&+ Reliance Retail is "irectl& so#rcing fresh agric#lt#ral pro"#ce fro% tho#san"s of far%ers fro% $illages thro#gh Collection Centers' /ith this concept+ Reliance has #ilt a #siness %o"el generating share" $al#e that lin)s the co%pan& s#ppl& chain %ore closel& to poor far%ers in In"ian $illages' Reliance is providing a guaranteed market for the farmers% produce& reducing transaction costs and training the farmers in better and sustainable farming practices. This initiati$e res#lts in higher inco%e an" #pgra"ing of s)ills for the far%ers+ an" re"#ce" spoilage of pro"#ce C#p to >9 percentD an" etter ?#alit& pro"#cts f or Reliance retail stores' >D Reliance retail has a"opte" Afar% to for)N theor& !hich %eans it is proc#ring "irectl& fro% the far%ers th#s offering the% ?#ite reasona le prices for their pro"#ce as no! no inter%e"iaries are in$ol$e"' In ret#rn Reliance is gi$ing far%ers infor%ation a o#t ho! can far%ers i%pro$e their pro"#cti$it&' The& ha$e centers in $illages !ho apart fro% pro$i"ing infor%ation %a)e far%ers a!are of %ar)et rates of "ifferent crops so that far%ers can choose crops the& !ant to so! to eco%e profita le' Far%ers are pro$i"e" technical help as !ell li)e infor%ation a o#t ?#alit& of see"s an" fertili1ers'
36
Ma$or %layers in retail sector
S"o33ers Sto32
Shoppers* Stop is the pioneer of pan-nation one-stop retail o#tlets' Starting in 4FF4 !ith a single store in M#% ai+ it has no! "e$elope" %ore than 85 stores Ctotal retail space crosse" the 4 % %ar) in the secon" ?#arter
37
of FI5=D' The co%pan& has a""e" 4+9:2+@=F s? ft of area "#ring the &ear ta)ing its total store area to 4+4=5+9@2 as on March 855=' The co%pan& has a !holl& o!ne" s# si"iar& K Cross!or" K a specialt& retail chain !ith o$er >8 stores sprea" across the co#ntr&' This store specialises in oo)s+ gift articles an" stationer&' 7#ring the ?#arter+ Cross!or" opene" its first store an" 8 .Stop H Go* stores at the M#% ai "o%estic airport' F#rther+ it fora&e" into airport retailing thro#gh a joint $ent#re !ith The N#ance Gro#p AG of S!it1erlan"' The co%pan& has also %a"e an entr& into the entertain%ent sector & ac?#iring @93 sta)e in Ti%e 1one Entertain%ent P$t' Lt"' The recent %o$es & the co%pan& !ill !i"en the offering an" "e-ris) its "epen"ence on the flagship Shoppers* Stop stores. (antaloon1
Incorporate" in 4F2=+ Pantaloon Retail is a%ong the pioneers in chain retailing' It is the largest retailer in the co#ntr& operating >95 stores across seg%ents in o$er @5 cities across the co#ntr& an" constit#ting 9 % s?#are feet of retail space' Starting o#t !ith "e"icate" apparel stores CPantaloonD+ the co%pan& has stores across the cross-section of the societ&' The co%pan&*s #siness is roa"l& "i$i"e" into 8 seg%ents+ Lifest&le an" Eal#e retailing' On the apparels front it has Pantaloon C>4 "epart%ental storesD+ Central Malls C@ sea%less %alls as !ell as its other conceptsD' These stores can e classifie" #n"er .Lifest&le Retailing*' On the general %erchan"ise front it has 0ig 0a1aar C94h&per%ar)etsD+ Foo" 0a1aar
38
C== s#per%ar)etsD an" Fashion Station C9 fashion storesD an" other "eli$er& for%ats' These fall #n"er .Eal#e Retailing*'
more
The more. Chain of s#per%ar)ets+ are right an" clean stores+ at con$enient locations !ith la&o#ts that allo! ease of na$igation' The pro"#ct "ispla& is !ell organise" an" facilitates ease of choice' The stores ha$e een "esigne" & Fitch+ the lea"ing international retail "esign fir%' The stores pro%ise a range of enefits to cons#%ers an" are a sol#tion to the %an& pro le%s face" & ho#se!i$es !hile shopping for their "ail& nee"s' The retail offering fro% the A"it&a 0irla Gro#p+ has een crafte" after in-"epth research of the nee"s an" e(pectations of the In"ian cons#%ers' more. is the ans!er to the shopping nee"s of the In"ian ho#se!ife !ho !ants a %o"ern an" con$enient option in her neigh o#rhoo"+ !ith an attracti$e an" consistent range of pro"#ctsO more. ass#res cons#%ers the sec#rit& of )no!ing that the& are pa&ing the est price in the %ar)et for goo" ?#alit& pro"#cts'
R(- -roup1
39
RPG Enterprises is one of In"ia*s largest #siness conglo%erates+ !ith a t#rno$er of ;S< 8'99 n an" assets !orth ;S< 4'2 illion' Since its inception in4F=F+ RPG Enterprises has een one of the fastest gro!ing gro#ps in In"ia !ith %ore than 85 co%panies operating s#ccessf#ll& in = #siness sectorsJ Retail+ IT H Co%%#nications+ Entertain%ent+ Po!er+ Trans%ission+ T&res an" Life Sciences' In 8554+ it esta lishe" .Giant* H&per%ar)et
Pro$og#e CIn"iaD Lt"'+ CPILD for%erl& Ac%e Clothing P$t' Lt" !as incorporate" in No$e% er 4FF=+ con$erte" in to a p# lic li%ite" co%pan& in March 8559' It "eals !ith fa rics+ "&est#ffs+ che%icals an" te(tile %achiner&' PIL operates in t!o core in"#str& seg%ents' The first eing "esigning+ %an#fact#ring an" selling ran"e" rea"&%a"e gar%ents an" other accessories #n"er the ran" 6Pro$og#e6' The secon" #siness is e(port of finishe" fa rics+ "&est#ffs+ che%icals an" te(tile %achiner& to se$eral %ar)ets in African continent'
40
41
Researc& O'$ective
• To st#"& cons#%er #&ing eha$io#r reliance fresh c#sto%er of 7elhi • To )no! a o#t the cons#%er a!areness to!ar"s Reliance fresh'
42
Researc& Met&o olo(y
43
Resear4" Pro#$em
To %a)e a co%prehensi$e st#"& of Reliance Fresh H)no! the 0#&ing eha$io#r H of Reliance Fresh c#sto%ers'
T(3e o- resear4"
7escripti$e t&pe research has #se" to co%plete the project' This research is ase on fact fin"ing en?#ires an" the $aria les are totall& in"epen"ent an" #ncontrolla le'
Data 4o$$e4tion2
Primar( Data Pri%ar& "ata of research are collecte" fro% "irect reso#rces Cc#sto%er of Reliance freshD thro#gh ?#estionnaire' Se4on'ar( Data Secon"ar& 7ata !hich are #se" for research to )no! the histor& scop of Retail in"#str& are collecte" fro% alrea"& a$aila le reso#rces li)e net an" other so#rces
44
Uni)erse
;ni$erse of this research is reliance fresh c#sto%er of 7elhi'
Sam3$ing te4"ni5 e
Ran"o% sa%pling is #se" for research project' I ha$e gi$en e?#al !eightages to %& all respon"ent an" chose the% ran"o%l& !itho#t an& iase" li)e gen"er+ age+ inco%e c#lt#re'
Sam3$e si6e
@89 respon"ents has selecte" as sa%ple si1e for research'
Data re3resentation te4"ni5 e an' too$s Col#%ns chart H Pie chart has #se" for representation'
45
46
)n erstan in( T&e *uyin( *e&aviour O" Reliance !res& Consumers
De"inition
P#rchase "ecision %a)ing pattern that is a co%ple( a%alga% of nee"s an" "esires+ an" is infl#ence" & factors s#ch as the cons#%er6s C4D societal role Cparent+ spo#se+ !or)er+ etc'D+ C8D social an" c#lt#ral en$iron%ent an" nor%s+ an" C>D aspirations an" inhi itions' 7 (ing 7e"a)io r is in the A"$ertising+ Mar)eting+ H Sales an" P#rchasing H Proc#re%ent s# jects' 7 (ing 7e"a)io r appears in the "efinitions of the follo!ing ter%sJ %ar)eting research+ a"$ertise%ent Ca"D+ ACORN+ econo%ic en$iron%ent+ acti$ities+ opinions CAIOD an" cons#%er research' 7 (ing 7e"a)io r appears in these other ter%J interests+
cons#%er #&ing eha$io#r'
47
Mo el o" *uyin( *e&aviour
Mar! eting
Ot"er
Stim $i Stim $i
7 (er8 s C"ara4 teristi4 s
7 (er8s De4isio n Pro4ess
7 (er8s De4ision
Pro"# Econo% ct ic Price Technol ogical
C#lt#ral Social Persona l Ps&chol ogical
Place Political Pro%o tion C#lt#ral
Pro le% recogniti on Infor%at ion Search E$al#ati on 7ecision Post p#rchas e 0eha$io #r
Pro"#ct choice 0ran" choice 7ealer choice P#rchase ti%ing P#rchase a%o#nt
/hen I ha$e anal&se" the %o"el of #&ing 0eha$io#r fin"ing that people of 7ELHI are infl#ence" & the
48
%ar)eting sti%#li C@ P*sD people are foc#se" on price rather than pro"#ct+ place an" pro%otion+ other factor !hich infl#ence" people is the technological a"$ance%ent'
C $t ra$
So4ia$ Persona$ Referen ce Gro#ps C&cle Stage Fa%il& Econo%ic Circ#%stan ces Life St&le Roles an" Stat#se s Personalit& an" Self Concept Ps(4"o$o gi4a$ Moti$ation Perception Learning 0eliefs an" Attit#"es
c#lt#re S# c#lt#r e
0;IE R
Social Class
Reference infl#ential
gro#ps
can
ha$e
potent
infl#ence
on the
eha$io#r in general+ an" the& %a& also on cons#%er eha$io#r+
e $er&
consi"ering
.Cons#%er Goo"s Seg%ent*' Fa%il& an" frien"s in
49
specific are consi"ere"
efore %a)ing a "ecision a o#t
p#rchasing a pro"#ct' 0#t their p#rchase "ecision "epen"s co%pletel& on self-opinion' /here reference gro#ps* infl#ence is operati$e+ the a"$ertiser sho#l" stress not onl& the people !ho #& the pro"#ct "ecision' The process %a& e $ie!e" as starting !hen the & #t also those !ho infl#ence" the p#rchasing
cons#%er engages in pro le% recognition' Pro le% recognition occ#rs !hen the cons#%er is acti$ate" a!areness of a s#fficient "ifference et!een his B her
concept of i"eal sit#ation' The action occ#rs onl& !hen the cons#%er percei$es a s#fficientl& large "iscrepanc& et!een the act#al an" i"eal states' Gi$en that the cons#%er is aro#se" to action+ the ne(t state is internal search for a ?#ic) an" largel& #nconscio#s re$ie! of %e%or& for store" infor%ation an" of an e(perience regar"ing the pro le%' This infor%ation in the for% of eliefs an" attit#"e infl#ence the cons#%er*s preference to!ar"s an"' If an internal search "oes not pro$i"e s#fficient infor%ation a o#t Pro"#cts+ or ho! to e$al#ate the%+ the cons#%er contin#es !ith a %ore in$ol$e" e(ternal search for infor%ation'
50
An& infor%ation sti%#li are then s# jecte" to infor%ation processing acti$ities' This process in$ol$es allocating attention to a$aila le sti%#li+ "eri$ing %eaning fro% these sti%#li' The alternating e$al#ation phase in$ol$es co%paring the infor%ation gaine" in the search process for alternati$e pro"#ct an" ran"s to the pro"#ct j#"ging criteria on stan"ar"s the cons#%er has "e$elope"' /hen s#ch a co%parison lea"s to fa$o#ra le e$al#ations+ the cons#%er is li)el& to "e$elop a p#rchase intention to!ar"s that alternati$e that recei$e" the %ost fa$o#ra le e$al#ation' A p#rchase process follo!s strong p#rchasing intentions' This in$ol$es a series of selection+ incl#"ing the t&pe of retail o#tlet as !ell the specific The cons#%er*s p#rchase ran" on ser$ice to #se' lea"s to $ario#s then
o#tco%es' One s#ch o#tco%e is satisfaction as a res#lt of "irect e(perience in #sing the affect the cons#%er*s ran"s' Satisfaction !ill ran"' Other elief a o#t the
o#tco%e is "issatisfaction an" post sale "o# t' Man& a" agencies con"#cte" an in-"epth st#"& of cons#%er #&ing eha$io#r an" fo#n" that the& all cra$e for peer acceptance an" parental non-infl#ence' 0e&on" this the& are an enig%a
51
52
234.
-ender of the consumer
Male 7emale (50 I 2"5
#ale
$
Fem ale
$ata Collected5
7ata collecte" for this ?#estionnaire to )no! the gen"er of c#sto%er of reliance fresh'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 8=9 are fe%ale !hich are
'=3 an" 495 are %ale !hich are >9'8F3 of total respon"ent
53
Interpretation5
In total respon"ent !e anal&ses that %ost of the c#sto%er in this store is fe%ale an" their "e%an" al!a&s consi"er at the ti%e of ta)ing the "ecision' Co%pan& sho#l" tr& to attract ne! %ale c#sto%er & pro$i"e ne! sche%e on their c#sto%er
091. 45-85 48>
(&% (%% '&% '%% &% % '%)(%
Age of customer
84-95 8>5 94H a o$e =8
(')&%
&'$ above
$ata Collected5
7ata collecte" for this ?#estionnaire to )no! the age of c#sto%er of reliance fresh'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 48> are the age et!een 45-85 !hich are82'F3 an"8>5are et!een age of 84-95 !hich
54
are9@'8F3an" =8 are et!een age of 94 H a o$e !hich are 4:'F 3 of total respon"ent
Interpretation5
In total respon"ent !e anal&ses that %ost of the c#sto%er are &o#th 'in %& o ser$ation I fo#n" that %ost ne! people elie$e in con$enience shopping It help the co%pan& to )eep %anage%ent s#ch t&pe !hich #n"erstan" the pro le% of c#sto%er easil& an" rectif& the pro le% effecti$el&'
0:1.
&o% o--er 'o (o
s"o3
7ail& C D !ee) C D fortnightl& C D once in %onth C D
7ail& 88
/ee) 88@
Fortnightl Once in & %onth 2F F5
55
9<; 9;; =<; =;; <; ; D a i$( Wee! . ortnig "t$( On4 e in mont"
$ata Collected5
7ata collecte" for this ?#estionnaire to )no! the shopping eha$io#r of c#sto%er of reliance fresh'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 88 are li)e to p#rchase "ail& !hich are9'43 an"88@areli)e to p#rchase !ee)l& !hich are98'8=3an" 2F are li)el& to p#rchase fortnightl& !hich are 85'F3+ F5 li)el& to p#rchase once in a %onth !hich are84'4=3 of total respon"ent
Interpretation5
In total respon"ent !e anal&ses that %ost of the c#sto%er are li)el& to p#rchase on
56
!ee)en" 'in %& o ser$ation I fo#n" that %ore sche%e sho#l" e pro$i"e" on !ee)en"'
W"at 'o (o most$( s"o3 -or at mentione' store?
0>1.
57
8e#eta-le+ 9 : 4rocery 9 : co+metic $ro"uct 9 : all $ro"uct 9 :
Vegetable Grocery Co metic All pro!uct pro!uct "08 #$ %" %00
*egetable +rocery Cosmetic ,roduct -ll ,roduct
$ata Collected5
7ata collecte" for this ?#estionnaire to )no! the pro"#cts !hich are li)e to p#rchase & the c#sto%er'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 855 c#sto%er are li)e to p#rchase all pro"#ct !hich are@='553 an"452 are li)e to p#rchase $egeta les !hich are89'@43an" F: are li)el& to p#rchase grocer& 88'9 !hich are 88'92'3+ 84 li)el& to p#rchase cos%etic pro"#ct !hich are@'F3 of total respon"ent
Interpretation5
58
In total respon"ent !e anal&ses that %ost of the c#sto%er are li)e to p#rchase all pro"#ct in the store' Co%pan& sho#l" tr& to retain the c#sto%er' An" sho#l" increase the $ariet& o cos%etic pro"#ctH grocer&'
59
0<1.
Pre-eren4e o- s"o33ing?
P#alit& C D 0ran" C D Price C D one stop shop @ a$it( =;9 #ran' =:> Pri4e <A One sto3 s"o3 =:;
.uality brand ,rice !ne sto, sho,
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! the preference the shopping
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 4>@ c#sto%er are elie$e in reliance ran" !hich are>4'953 an"4>5 are li)e to p#rchase in one stop shop !hich are >5'9@3an" 458 are li)e to p#rchase ?#alit& pro"#ct !hich are 8@'553+ onl& 9F respon"ent consi"er price !hich are 4>'52'3'
Interpretation
In total respon"ent !e anal&ses that %ost of the c#sto%er are elie$e in reliance ran" li)e to p#rchase ?#alitati$e pro"#ct in stop shop' Here I
60
o ser$e" that people !ant to p#rchase fresh an" original pro"#ct an" !ant etter ser$ice'
61
0B1. %"i4" store 'o (o 3re-eren4e -or 3 r4"asing
!e3t in
Reliance Fresh C D 0ig apple C D other C D Local %ar)et Lo4a$ mar!et 9>>
(&% (%% '&% '%% &% % Reliance fresh Big a,,le Local mar/et other
Re$ian4e -res" C:
7ig a33$e C;
Ot"er =C
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! the preference of the p#rchasing Cco%parison of store to otherD'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 8@@ c#sto%er are li)e to p#rchase fro% local %ar)et !hich are9='=@3 an" 2> are li)e to p#rchase fro% reliance fresh !hich are4F'943an" 2> are li)el& to p#rchase fro% 0ig apple !hich are 42'28'3+ 42 li)el& to p#rchase other !hich are@'83 of total respon"ent
62
Interpretation
In %& o ser$ation I fo#n" till to"a& organise" retail sector "i"n*t penetrate the %ar)et' Co%pan& sho#l" tr& to open ne! con$enience store an" pro$i"e %ore sche%e an" goo" ser$ice to c#sto%er to penetrate the %ar)et' Initial it %a& e costlier+ #t it !ill gi$e long ter% enefit'
63
0D1. Do a')ertisement an' 3romotion in-$ en4e (o r s"o33ing 'e4ision?
Ies C D Ees :A;
1%% 0&% 0%% (&% (%% '&% '%% &% %
No C D No :<
yes
No
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! the effect of pro%otion sche%e on p#rchasing'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich >F5 c#sto%er are li)e pro%otion sche%e !hich areF4'=:3 an" >9 are those people !hich sa& pro%otion sche%e "oesn*t effect on p#rchasing'
64
Interpretation
In %& o ser$ation I fo#n" pro%otion sche%e is %#st to s#stain c#sto%er attract c#sto%er H infl#ence the p#rchasing'
0C1.
Are Promotion s4"eme eas( to n'erstan'
Ies C D NO C D so%e ti%e C D
Ees 9=C
no CA
Some time ==C
yes no Some time
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! "ispla& of pro%otion sche%e''
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 842 c#sto%er sa& &es !hich
65
are94'8F3 an" 2F are those !hich sa& no !hich are 85'F@ an" 442 sa& so%e ti%e'
Interpretation5
Co%pan& sho#l" tr& %a)ing pro%otion sche%e eas& #n"erstan"a le+ pro%otion sche%e sho#l" e in oth in English H Hin"i
66
&o% $i!e$( are (o to re4ommen' Re$ian4e .res" to a -rien' or re$ati)e? Wo $' (o sa( t"e 4"an4es areO
0A1.
E(cellent C D Goo" C D Fair C D Poor C D E(cellent 8F Goo" 4F2 Fair 4F5 Poor 2
(%% '&% '%% &% % 23cellent +ood Fair 4oor
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! the satisfaction le$el of c#sto%er'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 8F c#sto%er sa& e(cellent !hich are:'23 an"4F 2 sa& goo" !hich are @:':3+ 4F5 sa& fair !hich are @@'=3 an" 2 c#sto%er are those sa& poor
67
Interpretation
In %& o ser$ation I fo#n" that onl& @:':3 c#sto%er are f#ll& satisfie" fro% the store co%pan& sho#l" tr& satisf& the c#sto%er & pro$i"ing etter ser$ice an" rectif& their pro le% i%%e"iatel&'
68
0=;1.
(o
W"i4" -orm o- a')ertisement 'o t"in! is most e--e4ti)e?
TE C D Ra"io C D telephone C D TE 44F Ra"io 9: Telephon e 4=:
Print C D Print =@
'6% '5% '1% '(% '%% 6% 5% 1% (% %
,rint
7*
Radio
7ele,hone
$ata Collected5
?#estionnaire to )no! the pro%otion' 7ata collecte" fro% this etter a"$ertise%ent %o"e of
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 44F c#sto%er sa& TE !hich are823 an" =@ sa& print !hich are 4='@3+ 9: sa& Ra"io !hich are 4>'4=3 an" 4=: c#sto%er are sa& telephone'
Interpretation 5
69
Accor"ing respon"e" res#lt co%pan& can choose telephone as est for a"$ertise%ent an" call in"#sial for attracting the c#sto%er
70
0==1.
7i" &o# get help fro% CSA
so%e ti%e C D Ne$er C D So%e ti%e 48@ Ne$er 4@
!hen as)e"O
Ies C D No C D Ies 4F8
(%% '&% '%% &% % yes N! Some time Never
NO F9
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! a o#t CSA perfor%ance'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 4F8 c#sto%er sa& &es !hich are @9'43 an" F9 sa& no !hich are 88'>93+ 48@ sa& so%e ti%e !hich are 8F'4=3 an" 4@c#sto%er are sa& ne$er !hich are >'893'
71
Interpretation5
Accor"ing respon"ent c#sto%ers are not f#ll& satisfie" co%pan& sho#l" recr#it ne! s)ille" e%plo&ee for etter perfor%ance'
72
73
!in in(
4-Ma1orit& of c#sto%ers here is fe%ale' 8- Majorit& of c#sto%ers are &o#ng' >-Majorit& c#sto%ers li)e to p#rchase all goo"s fro% Reliance fresh' @- C#sto%ers li)e one stops shopping' 9-Local %ar)et till to"a& is the first choice of c#sto%er' :-A"$ertise%ent is the iggest !a& to attracting the c#sto%er' =-Pro%otion sche%e not so eas& to #n"er stan" for c#sto%er' 2-Most of c#sto%er is not f#ll& satisfie" !ith store' F-Tele phone is the est !a& for attracting the c#sto%er' 45 Shortages of s)ille" !or)ers'
74
75
L/0/tat/)-,
The project has so%e li%itations eca#se it is totall& ase" on efforts of in"i$i"#als' Peoples %a& eca#se of so %an& reasons' It is totall& ase" on personal efforts of e careless an" %a& not gi$e correct ans!er to the ?#estions+
?
in"i$i"#als'
?
So%e of the cons#%ers are #na le to #n"erstan" the ?#estionnaire' Lang#age is one of the !orst pro le%+ so%e of the cons#%ers are #na le to #n"erstan" English' So%e cons#%ers are not intereste" in filling ?#estionnaire'
?
?
76
77
Su((estion
4- More pro%otion sche%e sho#l" e #se" to penetrate the %ar)et' 8- S)ille" e%plo&ees sho#l" e higher eca#se %ostl& c#sto%ers are &o#ng' >- Pro%otion sche%e sho#l" in s#ch !a& that c#sto%er can #n"erstan" easil&' @- Ser$ice of store sho#l" e pro$i"ing in s#ch !a& !hich f#ll the nee" of the c#sto%er'
78
A%%en ix
Reliance !res&
;ue+tionnaire
NAMEGEN7ERAGE Monthl& inco%e-
4-
Ho! offer "o &o# shop 7ail& C D !ee) C D fortnightl& C D once in %onth C D
8- /hat "o &o# %ostl& shop for at %entione" store Eegeta les C D Grocer& C D cos%etic pro"#ct C D >- /hich store "o &o# shopO Reliance Fresh C D 0ig apple C D other C D Local %ar)et @- Preference of shopping P#alit& C D 0ran" C D Price C D one stop shop 9- 7o a"$ertise%ent an" pro%otion infl#ence &o#r shopping "ecision Ies C D No C D
79
:- Are Pro%otion sche%e eas& to #n"erstan" Ies C D NO C D so%e ti%e C D =- Ho! li)el& are &o# to reco%%en" Reliance Fresh to a frien" or relati$eO /o#l" &o# sa& the chances areO E(cellent C D Goo" C D Fair C D Poor C D 2- Are the Price of Reliance fresh is lo!er than the other co%petitor Ies C D No C D E?#al C D no i"ea C D F- /hich for% of a"$ertise%ent "o &o# thin) is %ost effecti$eO Print C D 45TE C D Ra"io C D
7i" &o# get help fro% CSA !hen as)e"O Ies C D No C D so%e ti%e C D Ne$er C D
80
Re"erences
Referre" oo)sMar)eting Research K Paneersel$a% Research Metho"olog& K C'R ,othari Principles of Mar)eting K Philip ,otler Re-erre' site? !!!'ril'co% ? !!!'google'co% ? !!!'!ic)ipe"ia'co%
81
doc_117770063.doc
CONSUMER BUYING BEHAVIOUR IN RELIANCE FRESH
Study of Consumer buying behaviour In Reliance Fresh New Delhi Project Report Submitted To SCHOOL OF MANAGEMENT SCIENCES For The Award Of Post Graduate Diploma in Management
Submitted By Amit Kumar Gupta (Roll No. : PG/08/05)
SCHOOL OF MANAGEMENT SCIENCES LUC N!"
1
Study of Consumer Buying Behaviour In Reliance Fresh
Submitted By Amit Kumar Gupta (Roll No. : PG/08/05)
SCHOOL OF MANAGEMENT SCIENCES LUC N!"
2
Reliance fresh
3
Certificate
4
5
Executive Summary
Retailing is the interface et!een the pro"#cer an" the in"i$i"#al cons#%er #&ing for personal cons#%ption' This e(cl#"es "irect interface et!een the %an#fact#rer an" instit#tional #&ers s#ch as the go$ern%ent an" other #l) c#sto%ers' A retailer is one !ho stoc)s the pro"#cer*s goo"s an" is in$ol$e" in the act of selling it to the in"i$i"#al cons#%er+ at a %argin of profit' As s#ch+ retailing is the last lin) that connects the in"i$i"#al cons#%er !ith the %an#fact#ring an" "istri #tion chain' The retail in"#str& in In"ia is of late often eing haile" as one of the s#nrise sectors in the econo%&' AT ,earne&+ the !ell-)no!n international %anage%ent cons#ltanc&+ recentl& i"entifie" In"ia as the .first %ost attracti$e retail "estination* glo all& fro% a%ong thirt& e%ergent %ar)ets' It has %a"e In"ia the ca#se of a goo" "eal of e(cite%ent an" the c&nos#re of %an& foreign an" "o%estic e&es' The entr& of foreign an" In"ian retail giants li)e /al-Mart+ Metro+ Reliance+ 0irla+ Tata etc' %a"e In"ian %ar)et %ore co%petiti$e !hich is at c#t throat le$el' So ho! retailers can reach to their en" c#sto%ers+ to !in the %in" share an" increase the as)et si1e of each shopping trip' In"ia retail in"#str& is the largest in"#str& in In"ia+ !ith an e%plo&%ent of aro#n" 23 an" contri #ting to o$er 453 of the co#ntr&6s G7P' Retail in"#str& in In"ia is e(pecte" to rise 893 &earl& eing "ri$en & strong inco%e gro!th+ changing lifest&les+ an" fa$o#ra le "e%ographic patterns' It is e(pecte" that & 854: %o"ern retail in"#str& in In"ia !ill e !orth ;S< 4=9- 855 illion' In"ia retail
6
in"#str& is one of the fastest gro!ing in"#stries !ith re$en#e e(pecte" in 855= to a%o#nt ;S< >85 illion an" is increasing at a rate of 93 &earl&' A f#rther increase of =-23 is e(pecte" in the in"#str& of retail in In"ia & gro!th in cons#%eris% in #r an areas+ rising inco%es+ an" a steep rise in r#ral cons#%ption' It has f#rther een pre"icte" that the retailing in"#str& in In"ia !ill a%o#nt to ;S< 84'9 illion & 8545 fro% the c#rrent si1e of ;S< ='9 illion' The gro!th of scope in the In"ian retail %ar)et is %ainl& "#e to the change in the cons#%er*s eha$io#r' For the ne! generation ha$e preference to!ar"s l#(#r& co%%o"ities !hich ha$e een "#e to the strong increase in inco%e+ changing lifest&le+ an" "e%ographic patterns !hich are fa$o#ra le' 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 ne t ! years in their retail division and plans to begin retail stores in "#! cities across the country. $he 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 20((to the company. . A) $he 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
7
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 ,andhi& had made visionary and deep meaningful statement at -ohannesburg& )outh Africa in (.#0. 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. $oday the entire firm engaged in a process of creating a life time value and relationship with customers. $his report start with discussion on the diversity of consumer behaviour and the need for studying consumer buying behaviour and consumer as a related field of marketing .this can be largely be attributed to the prevailing market situation .$oday the company image is built and made known by its customers. $hus success of the firm determined how effective it has been in meeting the diverse consumer need and wants by treating each customer as uni/ue and offering products and services to suit has or her need. Consumer #&ing eha$io#r !ill e a pri%ar& force in "eter%ining ho! this transition !ill e$ol$e' Getting closer to the c#sto%er in to"a&*s highl& co%petiti$e lan"scape is essential for the entire in"#str& an" is no longer j#st a retail iss#e' It re?#ires all organisations across the s#ppl& chain to !or) as a single enterprise+ sensing an" respon"ing rapi"l& to cons#%er "e%an" in a co-or"inate" %anner' 7etaile" anal&sis of the changing patterns of cons#%er "e%an"+ shopping tren"s'
8
This research report is ase" on to )no! the 4- Major factors infl#encing cons#%er #&ing eha$io#r' 8- 0#&ing "ecision process' >- The stage in #&ing "ecision process @- A!areness of cons#%er to!ar"s organise" retail sector
9
Declaration
I here & "eclare that this s#%%er project report title" A0#&ing 0eha$io#rBcons#%er satisfaction of Reliance Fresh c#sto%er in A7elhi'” is the res#lt of %& o!n effort in the training !hich I "i" as a part of the c#rric#l#%+ for the f#lfil%ents of POST GRA7;ATE 7IPLOMA IN MANAGEMENT CPG7MD' It has not this report is gen#ine' een "#plicate" fro%
an& other earlier !or)s an" all infor%ation pro$i"e" in
10
This report is s# %itte" for the partial f#lfil%ents of PG7M progra%' It has not een s# %itte" to an& other #ni$ersit& or for an& other "egree'
Date:
AMIT KUMAR GUPTA PGDM (MARKETING) SMS LUCKNOW
11
ACKNOWLEDGEMENT
I ta)e this opport#nit& to e(press %& sincere gratit#"e to the follo!ing personalities !itho#t !hose help an" g#i"ance the s#ccessf#l co%pletion of %& project !or) !o#l" ha$e een re%aine" a "rea%'
12
I e(ten" %& heartfelt than)s to o#r HR Miss' SHIEANGALI SINGH for the constant an" $al#a le g#i"ance thro#gh o#t %& co#rse' I !o#l" li)e to ta)e the pleas#re of this opport#nit& to e(press %& heartf#l gratit#"e to %& g#i"e Professor Mrs EAN7ANA SHRIEASTAE CFac#lt& Me% er+ SMSD !ho too) personal interest an" ga$e $al#a le s#ggestions thro#gh o#t %& fiel" !or) an" co%pletion of the project' I than) all %& fac#lt& %e% ers of M0A "epart%ent for their $al#a le s#ggestions thro#gho#t %& co#rse' The i%portance of the %oral s#pport an" goo" !ishes of %& parents an" frien"s is e(ternal an" I a% $er& %#ch in"e te" to the%' Finall& I than) all %& frien"s !ho "irectl& or in"irectl& helpe" %e a lot "#ring %& project' AMIT KUMAR GUPTA PGDM-MARKETING SMS LUCKNOW & hi%
13
Contents
S.N.
INDEX Certificate Executive Summary Declaration Ac no!le"#ement
PAGE NO 4 5 9 11
CHAPTER- 1 1.1 1. 1.! 1." 1.# 1.$ CHAPTER.1 . .! ." .# CHAPTER-!
CHAPTER-" CHAPTER-# CHAPTER-$
INTRODUCTION &BACKGROUND Com$any %vervie! &o$ular &rofile Su$$ly C'ain (o"el S)%* Analy+i+ Cor$orate Social ,e+$on+i-ility (a.or &layer RESEARCH METHODOLOG% &DESIGN %-.ective of ,e+earc' *y$e of ,e+earc' Source of "ata / Collection tool Sam$lin# Sam$le +i0e ANAL%SIS & INTERPRETATION (eanin# of con+umer 1uyin# 1e'aviour 2nter$retation of collect "ata RESEARCH &INDING LIMITATION O& RESEARCH SUGGESTION APPENDIX RE&RENCES
14 21 27 30 33 35 38 41 41 42 42 44 49 69 71 73 75 77
14
RELIANCE
'G()*t+ +a, -) ./0/t at Re./a-1e. I 2ee3 (e4/,/-5 06 4/,/)-. O-.6 *+e- 6)7 1a- 8(ea0 /t9 6)7 1a- 8) /t.'
15
D+/(7:+a/ H. A0:a-/ 3oun"er C'airman ,eliance 4rou$ Decem-er 285 1932 6 7uly 65 2002
RELIANCE GROUP The Reliance Gro#p+ fo#n"e" & 7hir# hai H' A% ani C4F>8-8558D+ is In"ia6s largest pri$ate sector enterprise+ !ith #sinesses in the energ& an" %aterials $al#e chain' Gro#p6s ann#al re$en#es are in e(cess of ;S7 8= illion' The flagship co%pan&+ Reliance In"#stries Li%ite"+ is a Fort#ne Glo al 955 co%pan& an" is the largest pri$ate sector co%pan& in In"ia' 0ac)!ar" $ertical integration has een the cornerstone of the e$ol#tion an" gro!th of Reliance' Starting !ith te(tiles in the late se$enties+ Reliance p#rs#e" a strateg& of ac)!ar" $ertical integration - in pol&ester+ fi re inter%e"iates+ plastics+ petroche%icals+ petrole#% refining an" oil an" gas e(ploration an" pro"#ction - to e f#ll& integrate" along the %aterials an" energ& $al#e chain'
The Gro#p6s acti$ities span e(ploration an" pro"#ction of oil an" gas+ petrole#% refining an" %ar)eting+ petroche%icals Cpol&ester+ fi re inter%e"iates+ plastics an" che%icalsD+ te(tiles an" retail'
16
Reliance enjo&s glo al lea"ership in its #sinessesG The Gro#p e(ports pro"#cts in e(cess of ;S7 49 illion to %ore than 455 co#ntries in the !orl"' There are %ore than 89+555 e%plo&ees on the rolls of Gro#p Co%panies' Major Gro#p Co%panies are Reliance In"#stries Li%ite" Cincl#"ing %ain s# si"iaries Reliance Petrole#% Li%ite" an" Reliance Retail li%ite"D an" Reliance In"#strial Infrastr#ct#re Li%ite"' Reliance Industries 0imited is India1s largest private sector conglomerate 2and second largest overall3 with an annual turnover of 4)5 65.. billion and profit of 4)5 !.#5 billion for the fiscal year ending in March 200# making it one of India1s private sector 7ortune ,lobal 500 companies& being ranked at 208th position 2200#3. 9
It was founded by the Indian industrialist ;hirubhai Ambani in (.88. 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. <ritics allege that the rise of Reliance Industries to the top slot in terms of market capitali=ation is largely due to ;hirubhai1s ability to manipulate the levers of a controlled economy to his advantage. $hough the company1s oil'related operation forms the core of its business& it has diversified its operations in recent years. After severe differences between the founder1s two sons& Mukesh Ambani and Anil Ambani& the group was divided between them in 2008. In )eptember 200#& Reliance Industries was the only Indian firm featured in the 7orbes1s list of >world1s (00 most respected companies>17
RI
• • •
Subsidiaries of
• •
• • •
Reliance Petrole#% Ranger Far%s Li%ite" Retail Concepts an" Ser$ices CIn"iaD Pri$ate Li%ite" Reliance Retail Reliance Glo al Manage%ent Ser$ices CPD Li%ite" Reliance 0iophar%ace#ticals Reliance Ghatraj Ser$ices Reliance Engineering Associates CPD Li%ite"
18
Reliance Retail Limite
Reliance is gearing #p to re$ol#tioni1e the retailing in"#str& in In"ia' To!ar"s this en"+ Reliance is aggressi$el& !or)ing on intro"#cing a pan-In"ia net!or) of retail o#tlets in %#ltiple for%ats' A !orl" class shopping en$iron%ent+ state of art technolog&+ a sea%less s#ppl& chain infrastr#ct#re+ a host of #ni?#e $al#e-a""e" ser$ices an" a o$e all+ #n%atche" c#sto%er e(perience+ is !hat this initiati$e is all a o#t' The retail initiati$e of Reliance !ill e !itho#t a parallel in si1e an" sprea" an" %a)e In"ia pro#"' Ens#ring etter ret#rns to In"ian far%ers an" %an#fact#rers an" greater $al#e for the In"ian cons#%er+ oth in ?#alit& an" ?#antit&+ !ill e an integral feat#re of this project' 0& creating $al#e at all le$els+ !e !ill acti$el& en"ea$o#r to contri #te to In"ia6s gro!th' The project !ill oast of a sea%less s#ppl& chain infrastr#ct#re+ #nprece"ente" e$en & !orl" stan"ar"s' Thro#gh %#ltiple for%ats an" a !i"e range of categories+ Reliance is ai%ing to to#ch al%ost e$er& In"ian c#sto%er an" s#pplier' ?ith a vision to generate inclusive growth and prosperity for farmers& vendor partners& small shopkeepers and consumers& Reliance Retail 0imited 2RR03& a subsidiary of RI0& was set up to lead Reliance ,roup%s foray into organi=ed retail.
19
?ith a 2"@ share of world ,;A& retail is a significant contributor to overall economic activity across the world. Bf this& organi=ed retailing contributes between 20@ to 55@ in various developing markets. $he Indian retail industry is pegged at 5 600 billion and growing at over (6@ per year. Bf this& presently& organi=ed retailing is about 5@. $his is e pected to grow to (0@ by 20((. RR0 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. RR0 launched its first store in Covember 2008 through its convenience store format DReliance 7resh%. )ince then RR0 has rapidly grown to operate 5.0 stores across (6 states at the end of 7E 200"'0#. RR0 launched its first DReliance ;igital% store in April 200" and its first and India%s largest hypermarket DReliance Mart% in Ahmadabad in August 200". $his year& RR0 has also launched its first few specialty stores for apparel 2Reliance $rends3& footwear 2Reliance 7ootprints3& Fewellery 2Reliance -ewels3& books& music and other lifestyle products 2Reliance $imeout3& auto accessories and service format 2Reliance AutoGone3 and also an initiative in the health and wellness business through DReliance ?ellness%. In each of these store formats& RR0 is offering a uni/ue set of products and services at a value price point that has not been available so far to the Indian consumer. Bverall& RR0 is well positioned to rapidly e pand its e isting network of 5.0 stores which operate in 5" cities. ;uring the year& RR0 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
20
institutional customers. RR0 provides its customers with high /uality produce that has better shelf life and more consistent /uality than was available earlier. RR0 has made significant progress in establishing state'of'the'art staples processing centres and e pects to make them operational by May 200#. $hrough the year& RR0 also e panded its supply chain infrastructure. $he <ompany is fully geared to meet the re/uirements of its rapidly growing store network in an efficient manner. Recogni=ing that strategic alliances are going to be a key driver to its retail business& in 7E 200"'0#& RR0 established key Foint ventures with international partners in apparel& optical and office products businesses. 7urther& RR0 will continue to seek synergistic opportunities with other international players as well. $his year& RR0 will continue its focus on rapid e pansion of the e isting and other new formats across India.
21
P)37.a( P();/.e, at Re./a-1e Reta/.
Management team Name Mr. M !es" Am#ani Ni!"i$ R Mes"%ani &ita$ R Mes"%ani Ma'" mita Mo"anti A!as"a( Lo!"an'e De)an'ra C"a%$a Designation Chair%anHManaging 7irector E(ec#ti$e 7irector E(ec#ti$e 7irector 7ep#t& General Manager Area Manager-Operation HSales an" NSO Eice-Presi"ent-0#siness Hea"+ Merchan"ise Hea"
22
* #in Mangement
No%ro+ee, State Hea" Categor&
!ormats o" Reliance RETAIL
Reliance !resh" Reliance #art" Reliance $igital" Reliance %rend&" Reliance !ootprint" Reliance Wellness" Reliance 'ewels" Reliance %imeout and Reliance Super"
23
RELIANCE -RES&
A()A !R*SH A()* (A$A+S #*
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 ne t ! years in their retail division and plans to begin retail stores in "#! cities across the country. $he reliance fresh supermarket chain is ril%s rs 25&000 crore venture and it plans to add more stores across different g& and
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eventually have a pan'India footprint by year 20((. $he super marts will sell fresh fruits and vegetables& staples& groceries& fresh Fuice bars and dairy products and also will sport a separate enclosure and supply'chain for non' vegetarian products. Hesides& the stores would provide direct employment to 5 lakh young Indians and indirect Fob opportunities to a million people& according to the company. $he company also has plans to train students and housewives in customer care and /uality services for part'time Fobs ,AC) -R+./$ /e can see %an& e(a%ples of #sinesses !here+ first !e gro! an" then thin) of e(pan"ing #t Reliance is ?#ite "ifferent' Reliance has "e$elope" s#ch h#ge a%o#nt of reso#rces an" capital o$er the &ears that !hene$er it steps into an& seg%ent it is not re?#ire" to !ait for gro!ing signal+ that*s !h& it al!a&s thin)s of e(pan"ing !itho#t an& o#n"aries' Reliance retail is ne(t Step & RIL !hich !ill e a pan In"ia project' Reliance Fresh is the retail chain "i$ision of Reliance In"#stries of In"ia !hich is hea"e" & M#)esh A% ani' Reliance has entere" into this seg%ent & opening ne! retail stores into al%ost e$er& %etropolitan an" regional area of In"ia' Reliance plans to in$est Rs 89555 crores in the ne(t @ &ears in their retail "i$ision an" plans to egin retail stores in =2@ cities across the co#ntr&' The Reliance Fresh s#per%ar)et chain is RIL*s Rs 89+555 crore $ent#re an" it plans to a"" %ore stores across "ifferent g+ an" e$ent#all& ha$e a pan-In"ia footprint & &ear 8544' The s#per %arts !ill sell fresh fr#its an" $egeta les+ staples+ groceries+ fresh j#ice ars an" "air& pro"#cts an" also !ill sport a separate enclos#re an" s#ppl&-chain for non-$egetarian pro"#cts' 0esi"es+ the stores !o#l"
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pro$i"e "irect e%plo&%ent to 9 la)h &o#ng In"ians an" in"irect jo opport#nities to a %illion people+ accor"ing to the co%pan&' The co%pan& also has plans to train st#"ents an" ho#se!i$es in c#sto%er care an" ?#alit& ser$ices for part-ti%e jo s' The co%pan& is planning on opening ne! stores !ith store-si1e $ar&ing fro% 4+955 s? ft to >+555 s? ft+ !hich !ill stoc) fresh fr#its an" $egeta les+ staples+ FMCG pro"#cts an" "air& pro"#cts' Each store is sai" to e !ithin a ra"i#s of 4-8 )% of each other+ in relation to the concept of a neigh or store' Ho!e$er+ this is onl& the entr& roll-o#t that the co%pan& has planne"' 0angalore is sai" to ha$e @5 stores in all & the en" of the &ear' In a "ra%atic change "#e circ#%stances pre$ailing in ;P+ /est 0engal an" Orissa+ It !as %entione" recentl& in Ne!s 7ailies that+ Reliance Retail is %o$ing o#t stoc)ing' Reliance Retail has "eci"e" to %ini%i1e its e(pos#re in the fr#it an" $egeta le #siness an" position Reliance Fresh as a p#re pla& s#per %ar)et foc#sing on categories li)e foo"+ FMCG+ ho%e+ cons#%er "#ra les+ IT+ !ellness an" a#to accessories+ !ith foo" acco#nting for the #l) of the #siness' The co%pan& %a& not stoc) fr#it an" $egeta les in so%e states+ Orissa eing one of the%' Tho#gh Reliance Fresh is not e(iting the fr#it an" $egeta le #siness altogether+ it has "eci"e" not to co%pete !ith local $en"ors partl& "#e to political reasons+ an" partl& "#e to its ina ilit& to create a ro #st s#ppl& chain' This is ?#ite "ifferent fro% !hat the fir% ha" originall& planne"' /hen the first Reliance Fresh store opene" in H&"era a" last Octo er+ not onl& "i" the co%pan& sai" the store*s %ain foc#s !o#l" e fresh pro"#ce li)e fr#its an" $egeta les at a %#ch lo!er price+ #t also spo)e at length a o#t its Afar%-to-for)** theor&' The i"ea the co%pan& spo)e a o#t !as to so#rce fro% far%ers an" sell "irectl& to the cons#%er re%o$ing %i""le%en o#t of the !a&'
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.ARM TO .ORK The Reliance retail co%pan& so#rces sa& it is setting asi"e Rs 95+555 crore to #il" its far%-to-for) lin)age' Reliance has "ra!n #p plans for a presence in =2@ to!ns an" :+555 %an"i C!holesale %ar)etD to!ns !ith 4+:55 r#ral #siness h# s to ser$ice
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these' It has alrea"& rolle" o#t 4== Reliance Fresh stores across %ajor to!ns in 44 states' Accor"ing to a co%pan& report+ RIL is targeting a t#rno$er of Rs @5+555 crore in the ne(t fe! &ears'
TRAD ITIONAL MODEL O. RETAIL RELIANCE /.ARM TO .ORK”
S.(( 0 CHAI/ #+$* S of Reliance Retail
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Reliance starte" its retail operations of Reliance Fresh stores !ith follo!ing s#ppl& chain %o"el' Proc#ring "irectl& fro% the far%ers an" operating !ith %o"erate %argin #t %ass selling !as )e& to Reliance fresh operation for first fe! %onths' The follo!ing fig#re "epicts the first Reliance fresh %o"el RELIANCE .RES&
FARMERS CATEGOR I4
Fa rm ers
FARMERS CATEGOR I8
FARMERS CATEGOR I>
Ow nT
ran s
po r ta
tio n
COLLECTIO N POINTB;NI T
RELIANCE OWN LOGISTICS
ers rm a F
n Tra n Ow
n atio t r spo
n lia Re
n ow e c
RF tics gis Lo
PROCESSIN G ;NITBPOINT
Re lia nc RF eo wn L
og
ist ics
RELIANCE FRESH O;TLETS
RELIANCE FRESH O;TLETS
RELIANCE FRESH O;TLETS
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W&OLESALE TRADING 0WST1 J Reliance for%ali1e" its secon" s#ppl& chain %o"el to shift itself fro% grocer& retailer to grocer& s#pplier & foc#sing an" esta lishing itself in Man"i*s' STEPS IN WTS MODEL2 4D Reliance has o!ne" far%s on contract asis for pro"#ction of specific crop !hich is "eci"e" after e(tensi$e research "epen"ing on • SOIL CON7ITIONS+ • CLIMATE CON7ITIONS+ • RET;RN OEER COSTS INC;RRE7' So as to &iel" est possi le res#lts' 8D 7ifferent $egeta les an" fr#its fro% s#ch far%s are collecte" thro#gh reliance o!n Logistics an" ro#ght to collection Processing centres !here ?#alit& chec) an" other re?#ire" processing is "one' In processing centres !or)ers !earing alacla$as+ !oollen tro#sers an" #l)& jac)ets !or) insi"e a roo% )ept at a constant >oC+ peeling an" chopping $egeta les+ spinning the% "r& an" then heaping the% in s%all plastic pac)ets efore placing the% in plastic transport crates' At the other en" of the 9+555-s?-% !areho#se+ %en #nloa" crates of fr#its fro% a tr#c) p#lle" #p to a spotless loa"ing "oc)' A ?#alit&-control e(pert sa%ples e$er& tenth crateG if the fr#its are goo" a tea% !ill rea"& the% for "eli$er& !ithin ho#rs to Reliance fresh stores aro#n" "ifferent places li)e ;'P an" as far a!a& as H&"era a" an" e$en M#% ai Cfor%erl& 0o% a&D' If the& are not+ !or)ers !ill inspect the entire ship%ent an" "iscar" an&thing elo! stan"ar"'
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>D Merchan"ise fro% these collection processing centers are collecte" an" loa"e" for /holesale %an"i*s' As this %erchan"ise is to e %a"e a$aila le & @ A'M in %orning th#s "eli$eries in tr#c)s are sent at ti%e "epen"ing #ponJ TRANSIT TIME' K Ti%e re?#ire" reaching "estination i'e' %an"i*s' MARGIN TIME' K Ti%e perio" et!een a tr#c) reaching %an"i an" then ;nloa"s' Can e 8 to > ho#rs' LOADING AND UNLOADING TIME. @D Fro% %an"i*s !here the tr#c)s ha$e #nloa"e"+ roa"si"e $en"ors an" p#ll carters fr#its an" $egeta les to s#ppl& in ho#sehol"s' een 0#&
9D In case still so%e $egeta les an" fr#its are not sol" reliance logistics o!n Transportation sen"s the% to reliance fresh stores'
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SWOT ANAL#SIS
The In"ian retail %ar)et acco#nte" for < 855 illions' Foo" acco#nts for o$er t!o-thir"s of the <855- illion In"ian retail %ar)et' Iet+ it has seen less than 4 per cent penetration & %o"ern retail so far' Reliance in"#stries !hich al!a&s loo)ing for ne! #siness opport#nities j#st starte" a ne! era !ith its intro"#ction of ne! concept stores na%e" Reliance Fresh !ith opening con$ince store in high streets of 0anjara hills of H&"era a"' Reliance Fresh is $er& "ifferent fro% !hat %o"ern retail has offere" in In"ia so far an" !ith this reliance is planning to esta lish strong retail net!or) in In"ia in foo" an" far% sector' The& ha$e starte" !ith ne! ele$en stores in the last !ee) an" the& are thin)ing to a"" 455 %ore stores to their feather & the en" of this &ear' Let*s "o a S/OT anal&sis on the Reliance Fresh'
Strengths1
Reliance is the first into enter into this #norgani1e" sector of $egeta les an" fr#its' Accor"ing to the% its intentions to ha$e4553 far% fresh foo"s in their ne! retail stores' It is also a""ing shortl& a j#ice ar+ an" e$en a large co#nter for p#ja flo!ers' In fact+ o$er :5 per cent of the floor space has een "e"icate" to fresh fr#its an" $egeta les+ the rest to other foo" pro"#cts li)e staples+ spices+ a)er&+ etc' 0#t reliance has "eci"e" not to a"" an& ar soap or toothpaste an"
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"etergent in its shel$es' So & #sing this strateg& the& are positioning the%sel$es "ifferent fro% other pla&ers of the in"#stries li)e Foo" !orl"+ 0ig 0a1aar an" Nilgiris' 0#t o$er co%e the short co%ings of these speciali1e" stores the& are also intro"#cing ne! Reliance f#llfle"ge" s#per%ar)et calle" Sha)hari 0han"ar !hich offers each an" e$er&thing fro% the staple to soap' Most of the staples are #n"er its o!n pri$ate la el ran" L .Reliance Select*' There is a 955g channa "al pac) price" at Rs 82+ a 955g #ra" "al pac) for Rs >F+ all #n"er Reliance*s o!n ran"' E(cepting a fe! pac)ets of Nestle*s Maggi+ or MTR*s %asalas or Pepsi*s La&s chips+ there is $er& little shelf space gi$en to the ig ran" o!ners in the co#ntr&' ReasonJ pri$ate la els offer far etter profit %argin to the retailer than ran"e" pro"#cts of FMCG co%panies' Most of these o#tlets !ill nee" onl& 8+555-9+555 s?' ft' A s#per%ar)et %a& nee" as %#ch as 2+555-45+555 s?' ft'
Weakness1
This is "efinitel& an interesting #siness $ent#re #t it %a& %iss o#t on the opport#nit& to capt#re a greater share of the c#sto%er*s !allet' For c#sto%ers+ too+ this co#l" e ir)so%e+ as the& !o#l" ha$e to $isit another store to pic) #p essentials' Reliance co#l" easil& fi( this pro le% & a""ing a fe! s%all co#nters for so%e asic non-foo" pro"#cts' Accor"ing to their official this for%at is not final one the& are accepting the ne! changes !hich are re?#ire" to attract the large n#% er of c#sto%ers'
+pportunities
33
Reliance !ants to #il" a high-profita ilit& #siness an" foo" is+ perhaps+ the est $ent#re to start' That is eca#se the In"ian foo" s#ppl& chain is grossl& inefficient' There are se$eral inter%e"iaries+ each of !ho% a""s his o!n profit %argin to the cost' 0esi"es+ there is h#ge !astage in transit' This offers potential for sa$ings an" profits' To re"#ce the cost an" increase the profit it has een so#rcing o#t its re?#ire%ents fro% the far%ers' For e(a%ple+ the leaf& $egeta les+ rinjals+ to%atoes an" green chilies in the 0anjara Hills o#tlet !ere so#rce" "irectl& fro% far%ers in Eanti%a%"i+ Che$ella an" near & %an"als in Ranga Re""& "istrict of An"hra Pra"esh' The s#ppl& chain alrea"& has een ac)e" & fe! h#n"re" far%ers the n#% er is esti%ate" to to#ch %illion in ne(t fi$e &ears' The %ain ai% of the reliance is to eli%inate the inter%e"iaries in the sector an" re"#ce the cost' S%aller stores ha$e t!o a"$antages' The& ring "o!n the cost of real estate Can" increase profitsD' It is easier to fin" space for s%all con$enience stores in a ?#iet neigh o#rhoo" than for s#per%ar)ets in high streets'
%hreats1
This %o"el is engineere" to cloc) a faster t#rno$er of in$entor& L Reliance e(pects cons#%ers to $isit the store at least t!ice a !ee) for their top-#p groceries' Each store !ill ha$e an in$est%ent of Rs 95 la)h to Rs :5 la)h' ;nli)e glo al retailers !ho operate on thin %argins+ Reliance Retail is loo)ing at a fairl& high%argin #siness %o"el' 7eli eratel& stoppe" short of eing a f#ll-fle"ge" s#per%ar)et rather+ it has li%ite" itself to a foo" an" grocer& con$enience store' The& also ha$e a threat fro% the e(isting s#per%ar)ets !hich
34
pro$i"es all the ser$ices to its c#sto%ers' For E(a%ple Foo" !orl" an" Nilgiris also pro$i"es foo" an" e$erages !ith other personal care pro"#cts' These con$ince are not e(iste" in the present Reliance retail stores'
C+R(+RA%* S+CIA R*S(+/SI,I I%0 To"a& !hen %ost of the co%panies are #s& in %a)ing profits & an& %eans+ there are fe! Ones !ho are foc#se" to ret#rn this societ&+ a part of !hat the& ha$e earne" thro#gh this societ&' Reliance retail is one of the%' Follo!ing efforts of reliance retail are ai%e" at enefiting the societ& %a)ing reliance sociall& responsi leJ 4DReliance Retail ai%s at recruiting people from the underprivileged community in societ&' MHence+ !e are planning to train st#"ents fro% corporation schools an" schools r#n & NGOs' An"+ !e consi"er this as a part of o#r corporate social responsi ilit&+M he sai"' As)e" !hether the co%pan& !ill ta)e st#"ents on an e%plo&%ent asis an" pa& the% a stipen" "#ring the co#rse perio"+ he sai" that act#all&+ it is
35
planning to charge a Ms%all feeM fro% those !ho !ant to join the co#rse Mas !e !ant to ring in so%e "iscipline an" reg#larit& a%ong the st#"entsM+ an" !ill rei% #rse that once the& are in"#cte" into ser$ice' 8D Far%ing in In"ia is highl& frag%ente" an" s# ject to harsh cli%atic con"itionsJ once har$este"+ it is $er& "iffic#lt to )eep fr#its an" $egeta les fresh' To sec#re high ?#alit&+ Reliance Retail is "irectl& so#rcing fresh agric#lt#ral pro"#ce fro% tho#san"s of far%ers fro% $illages thro#gh Collection Centers' /ith this concept+ Reliance has #ilt a #siness %o"el generating share" $al#e that lin)s the co%pan& s#ppl& chain %ore closel& to poor far%ers in In"ian $illages' Reliance is providing a guaranteed market for the farmers% produce& reducing transaction costs and training the farmers in better and sustainable farming practices. This initiati$e res#lts in higher inco%e an" #pgra"ing of s)ills for the far%ers+ an" re"#ce" spoilage of pro"#ce C#p to >9 percentD an" etter ?#alit& pro"#cts f or Reliance retail stores' >D Reliance retail has a"opte" Afar% to for)N theor& !hich %eans it is proc#ring "irectl& fro% the far%ers th#s offering the% ?#ite reasona le prices for their pro"#ce as no! no inter%e"iaries are in$ol$e"' In ret#rn Reliance is gi$ing far%ers infor%ation a o#t ho! can far%ers i%pro$e their pro"#cti$it&' The& ha$e centers in $illages !ho apart fro% pro$i"ing infor%ation %a)e far%ers a!are of %ar)et rates of "ifferent crops so that far%ers can choose crops the& !ant to so! to eco%e profita le' Far%ers are pro$i"e" technical help as !ell li)e infor%ation a o#t ?#alit& of see"s an" fertili1ers'
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Ma$or %layers in retail sector
S"o33ers Sto32
Shoppers* Stop is the pioneer of pan-nation one-stop retail o#tlets' Starting in 4FF4 !ith a single store in M#% ai+ it has no! "e$elope" %ore than 85 stores Ctotal retail space crosse" the 4 % %ar) in the secon" ?#arter
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of FI5=D' The co%pan& has a""e" 4+9:2+@=F s? ft of area "#ring the &ear ta)ing its total store area to 4+4=5+9@2 as on March 855=' The co%pan& has a !holl& o!ne" s# si"iar& K Cross!or" K a specialt& retail chain !ith o$er >8 stores sprea" across the co#ntr&' This store specialises in oo)s+ gift articles an" stationer&' 7#ring the ?#arter+ Cross!or" opene" its first store an" 8 .Stop H Go* stores at the M#% ai "o%estic airport' F#rther+ it fora&e" into airport retailing thro#gh a joint $ent#re !ith The N#ance Gro#p AG of S!it1erlan"' The co%pan& has also %a"e an entr& into the entertain%ent sector & ac?#iring @93 sta)e in Ti%e 1one Entertain%ent P$t' Lt"' The recent %o$es & the co%pan& !ill !i"en the offering an" "e-ris) its "epen"ence on the flagship Shoppers* Stop stores. (antaloon1
Incorporate" in 4F2=+ Pantaloon Retail is a%ong the pioneers in chain retailing' It is the largest retailer in the co#ntr& operating >95 stores across seg%ents in o$er @5 cities across the co#ntr& an" constit#ting 9 % s?#are feet of retail space' Starting o#t !ith "e"icate" apparel stores CPantaloonD+ the co%pan& has stores across the cross-section of the societ&' The co%pan&*s #siness is roa"l& "i$i"e" into 8 seg%ents+ Lifest&le an" Eal#e retailing' On the apparels front it has Pantaloon C>4 "epart%ental storesD+ Central Malls C@ sea%less %alls as !ell as its other conceptsD' These stores can e classifie" #n"er .Lifest&le Retailing*' On the general %erchan"ise front it has 0ig 0a1aar C94h&per%ar)etsD+ Foo" 0a1aar
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C== s#per%ar)etsD an" Fashion Station C9 fashion storesD an" other "eli$er& for%ats' These fall #n"er .Eal#e Retailing*'
more
The more. Chain of s#per%ar)ets+ are right an" clean stores+ at con$enient locations !ith la&o#ts that allo! ease of na$igation' The pro"#ct "ispla& is !ell organise" an" facilitates ease of choice' The stores ha$e een "esigne" & Fitch+ the lea"ing international retail "esign fir%' The stores pro%ise a range of enefits to cons#%ers an" are a sol#tion to the %an& pro le%s face" & ho#se!i$es !hile shopping for their "ail& nee"s' The retail offering fro% the A"it&a 0irla Gro#p+ has een crafte" after in-"epth research of the nee"s an" e(pectations of the In"ian cons#%ers' more. is the ans!er to the shopping nee"s of the In"ian ho#se!ife !ho !ants a %o"ern an" con$enient option in her neigh o#rhoo"+ !ith an attracti$e an" consistent range of pro"#ctsO more. ass#res cons#%ers the sec#rit& of )no!ing that the& are pa&ing the est price in the %ar)et for goo" ?#alit& pro"#cts'
R(- -roup1
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RPG Enterprises is one of In"ia*s largest #siness conglo%erates+ !ith a t#rno$er of ;S< 8'99 n an" assets !orth ;S< 4'2 illion' Since its inception in4F=F+ RPG Enterprises has een one of the fastest gro!ing gro#ps in In"ia !ith %ore than 85 co%panies operating s#ccessf#ll& in = #siness sectorsJ Retail+ IT H Co%%#nications+ Entertain%ent+ Po!er+ Trans%ission+ T&res an" Life Sciences' In 8554+ it esta lishe" .Giant* H&per%ar)et
Pro$og#e CIn"iaD Lt"'+ CPILD for%erl& Ac%e Clothing P$t' Lt" !as incorporate" in No$e% er 4FF=+ con$erte" in to a p# lic li%ite" co%pan& in March 8559' It "eals !ith fa rics+ "&est#ffs+ che%icals an" te(tile %achiner&' PIL operates in t!o core in"#str& seg%ents' The first eing "esigning+ %an#fact#ring an" selling ran"e" rea"&%a"e gar%ents an" other accessories #n"er the ran" 6Pro$og#e6' The secon" #siness is e(port of finishe" fa rics+ "&est#ffs+ che%icals an" te(tile %achiner& to se$eral %ar)ets in African continent'
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41
Researc& O'$ective
• To st#"& cons#%er #&ing eha$io#r reliance fresh c#sto%er of 7elhi • To )no! a o#t the cons#%er a!areness to!ar"s Reliance fresh'
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Researc& Met&o olo(y
43
Resear4" Pro#$em
To %a)e a co%prehensi$e st#"& of Reliance Fresh H)no! the 0#&ing eha$io#r H of Reliance Fresh c#sto%ers'
T(3e o- resear4"
7escripti$e t&pe research has #se" to co%plete the project' This research is ase on fact fin"ing en?#ires an" the $aria les are totall& in"epen"ent an" #ncontrolla le'
Data 4o$$e4tion2
Primar( Data Pri%ar& "ata of research are collecte" fro% "irect reso#rces Cc#sto%er of Reliance freshD thro#gh ?#estionnaire' Se4on'ar( Data Secon"ar& 7ata !hich are #se" for research to )no! the histor& scop of Retail in"#str& are collecte" fro% alrea"& a$aila le reso#rces li)e net an" other so#rces
44
Uni)erse
;ni$erse of this research is reliance fresh c#sto%er of 7elhi'
Sam3$ing te4"ni5 e
Ran"o% sa%pling is #se" for research project' I ha$e gi$en e?#al !eightages to %& all respon"ent an" chose the% ran"o%l& !itho#t an& iase" li)e gen"er+ age+ inco%e c#lt#re'
Sam3$e si6e
@89 respon"ents has selecte" as sa%ple si1e for research'
Data re3resentation te4"ni5 e an' too$s Col#%ns chart H Pie chart has #se" for representation'
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46
)n erstan in( T&e *uyin( *e&aviour O" Reliance !res& Consumers
De"inition
P#rchase "ecision %a)ing pattern that is a co%ple( a%alga% of nee"s an" "esires+ an" is infl#ence" & factors s#ch as the cons#%er6s C4D societal role Cparent+ spo#se+ !or)er+ etc'D+ C8D social an" c#lt#ral en$iron%ent an" nor%s+ an" C>D aspirations an" inhi itions' 7 (ing 7e"a)io r is in the A"$ertising+ Mar)eting+ H Sales an" P#rchasing H Proc#re%ent s# jects' 7 (ing 7e"a)io r appears in the "efinitions of the follo!ing ter%sJ %ar)eting research+ a"$ertise%ent Ca"D+ ACORN+ econo%ic en$iron%ent+ acti$ities+ opinions CAIOD an" cons#%er research' 7 (ing 7e"a)io r appears in these other ter%J interests+
cons#%er #&ing eha$io#r'
47
Mo el o" *uyin( *e&aviour
Mar! eting
Ot"er
Stim $i Stim $i
7 (er8 s C"ara4 teristi4 s
7 (er8s De4isio n Pro4ess
7 (er8s De4ision
Pro"# Econo% ct ic Price Technol ogical
C#lt#ral Social Persona l Ps&chol ogical
Place Political Pro%o tion C#lt#ral
Pro le% recogniti on Infor%at ion Search E$al#ati on 7ecision Post p#rchas e 0eha$io #r
Pro"#ct choice 0ran" choice 7ealer choice P#rchase ti%ing P#rchase a%o#nt
/hen I ha$e anal&se" the %o"el of #&ing 0eha$io#r fin"ing that people of 7ELHI are infl#ence" & the
48
%ar)eting sti%#li C@ P*sD people are foc#se" on price rather than pro"#ct+ place an" pro%otion+ other factor !hich infl#ence" people is the technological a"$ance%ent'
C $t ra$
So4ia$ Persona$ Referen ce Gro#ps C&cle Stage Fa%il& Econo%ic Circ#%stan ces Life St&le Roles an" Stat#se s Personalit& an" Self Concept Ps(4"o$o gi4a$ Moti$ation Perception Learning 0eliefs an" Attit#"es
c#lt#re S# c#lt#r e
0;IE R
Social Class
Reference infl#ential
gro#ps
can
ha$e
potent
infl#ence
on the
eha$io#r in general+ an" the& %a& also on cons#%er eha$io#r+
e $er&
consi"ering
.Cons#%er Goo"s Seg%ent*' Fa%il& an" frien"s in
49
specific are consi"ere"
efore %a)ing a "ecision a o#t
p#rchasing a pro"#ct' 0#t their p#rchase "ecision "epen"s co%pletel& on self-opinion' /here reference gro#ps* infl#ence is operati$e+ the a"$ertiser sho#l" stress not onl& the people !ho #& the pro"#ct "ecision' The process %a& e $ie!e" as starting !hen the & #t also those !ho infl#ence" the p#rchasing
cons#%er engages in pro le% recognition' Pro le% recognition occ#rs !hen the cons#%er is acti$ate" a!areness of a s#fficient "ifference et!een his B her
concept of i"eal sit#ation' The action occ#rs onl& !hen the cons#%er percei$es a s#fficientl& large "iscrepanc& et!een the act#al an" i"eal states' Gi$en that the cons#%er is aro#se" to action+ the ne(t state is internal search for a ?#ic) an" largel& #nconscio#s re$ie! of %e%or& for store" infor%ation an" of an e(perience regar"ing the pro le%' This infor%ation in the for% of eliefs an" attit#"e infl#ence the cons#%er*s preference to!ar"s an"' If an internal search "oes not pro$i"e s#fficient infor%ation a o#t Pro"#cts+ or ho! to e$al#ate the%+ the cons#%er contin#es !ith a %ore in$ol$e" e(ternal search for infor%ation'
50
An& infor%ation sti%#li are then s# jecte" to infor%ation processing acti$ities' This process in$ol$es allocating attention to a$aila le sti%#li+ "eri$ing %eaning fro% these sti%#li' The alternating e$al#ation phase in$ol$es co%paring the infor%ation gaine" in the search process for alternati$e pro"#ct an" ran"s to the pro"#ct j#"ging criteria on stan"ar"s the cons#%er has "e$elope"' /hen s#ch a co%parison lea"s to fa$o#ra le e$al#ations+ the cons#%er is li)el& to "e$elop a p#rchase intention to!ar"s that alternati$e that recei$e" the %ost fa$o#ra le e$al#ation' A p#rchase process follo!s strong p#rchasing intentions' This in$ol$es a series of selection+ incl#"ing the t&pe of retail o#tlet as !ell the specific The cons#%er*s p#rchase ran" on ser$ice to #se' lea"s to $ario#s then
o#tco%es' One s#ch o#tco%e is satisfaction as a res#lt of "irect e(perience in #sing the affect the cons#%er*s ran"s' Satisfaction !ill ran"' Other elief a o#t the
o#tco%e is "issatisfaction an" post sale "o# t' Man& a" agencies con"#cte" an in-"epth st#"& of cons#%er #&ing eha$io#r an" fo#n" that the& all cra$e for peer acceptance an" parental non-infl#ence' 0e&on" this the& are an enig%a
51
52
234.
-ender of the consumer
Male 7emale (50 I 2"5
#ale
$
Fem ale
$ata Collected5
7ata collecte" for this ?#estionnaire to )no! the gen"er of c#sto%er of reliance fresh'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 8=9 are fe%ale !hich are
'=3 an" 495 are %ale !hich are >9'8F3 of total respon"ent53
Interpretation5
In total respon"ent !e anal&ses that %ost of the c#sto%er in this store is fe%ale an" their "e%an" al!a&s consi"er at the ti%e of ta)ing the "ecision' Co%pan& sho#l" tr& to attract ne! %ale c#sto%er & pro$i"e ne! sche%e on their c#sto%er
091. 45-85 48>
(&% (%% '&% '%% &% % '%)(%
Age of customer
84-95 8>5 94H a o$e =8
(')&%
&'$ above
$ata Collected5
7ata collecte" for this ?#estionnaire to )no! the age of c#sto%er of reliance fresh'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 48> are the age et!een 45-85 !hich are82'F3 an"8>5are et!een age of 84-95 !hich
54
are9@'8F3an" =8 are et!een age of 94 H a o$e !hich are 4:'F 3 of total respon"ent
Interpretation5
In total respon"ent !e anal&ses that %ost of the c#sto%er are &o#th 'in %& o ser$ation I fo#n" that %ost ne! people elie$e in con$enience shopping It help the co%pan& to )eep %anage%ent s#ch t&pe !hich #n"erstan" the pro le% of c#sto%er easil& an" rectif& the pro le% effecti$el&'
0:1.
&o% o--er 'o (o
s"o3
7ail& C D !ee) C D fortnightl& C D once in %onth C D
7ail& 88
/ee) 88@
Fortnightl Once in & %onth 2F F5
55
9<; 9;; =<; =;; <; ; D a i$( Wee! . ortnig "t$( On4 e in mont"
$ata Collected5
7ata collecte" for this ?#estionnaire to )no! the shopping eha$io#r of c#sto%er of reliance fresh'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 88 are li)e to p#rchase "ail& !hich are9'43 an"88@areli)e to p#rchase !ee)l& !hich are98'8=3an" 2F are li)el& to p#rchase fortnightl& !hich are 85'F3+ F5 li)el& to p#rchase once in a %onth !hich are84'4=3 of total respon"ent
Interpretation5
In total respon"ent !e anal&ses that %ost of the c#sto%er are li)el& to p#rchase on
56
!ee)en" 'in %& o ser$ation I fo#n" that %ore sche%e sho#l" e pro$i"e" on !ee)en"'
W"at 'o (o most$( s"o3 -or at mentione' store?
0>1.
57
8e#eta-le+ 9 : 4rocery 9 : co+metic $ro"uct 9 : all $ro"uct 9 :
Vegetable Grocery Co metic All pro!uct pro!uct "08 #$ %" %00
*egetable +rocery Cosmetic ,roduct -ll ,roduct
$ata Collected5
7ata collecte" for this ?#estionnaire to )no! the pro"#cts !hich are li)e to p#rchase & the c#sto%er'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 855 c#sto%er are li)e to p#rchase all pro"#ct !hich are@='553 an"452 are li)e to p#rchase $egeta les !hich are89'@43an" F: are li)el& to p#rchase grocer& 88'9 !hich are 88'92'3+ 84 li)el& to p#rchase cos%etic pro"#ct !hich are@'F3 of total respon"ent
Interpretation5
58
In total respon"ent !e anal&ses that %ost of the c#sto%er are li)e to p#rchase all pro"#ct in the store' Co%pan& sho#l" tr& to retain the c#sto%er' An" sho#l" increase the $ariet& o cos%etic pro"#ctH grocer&'
59
0<1.
Pre-eren4e o- s"o33ing?
P#alit& C D 0ran" C D Price C D one stop shop @ a$it( =;9 #ran' =:> Pri4e <A One sto3 s"o3 =:;
.uality brand ,rice !ne sto, sho,
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! the preference the shopping
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 4>@ c#sto%er are elie$e in reliance ran" !hich are>4'953 an"4>5 are li)e to p#rchase in one stop shop !hich are >5'9@3an" 458 are li)e to p#rchase ?#alit& pro"#ct !hich are 8@'553+ onl& 9F respon"ent consi"er price !hich are 4>'52'3'
Interpretation
In total respon"ent !e anal&ses that %ost of the c#sto%er are elie$e in reliance ran" li)e to p#rchase ?#alitati$e pro"#ct in stop shop' Here I
60
o ser$e" that people !ant to p#rchase fresh an" original pro"#ct an" !ant etter ser$ice'
61
0B1. %"i4" store 'o (o 3re-eren4e -or 3 r4"asing
!e3t in
Reliance Fresh C D 0ig apple C D other C D Local %ar)et Lo4a$ mar!et 9>>
(&% (%% '&% '%% &% % Reliance fresh Big a,,le Local mar/et other
Re$ian4e -res" C:
7ig a33$e C;
Ot"er =C
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! the preference of the p#rchasing Cco%parison of store to otherD'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 8@@ c#sto%er are li)e to p#rchase fro% local %ar)et !hich are9='=@3 an" 2> are li)e to p#rchase fro% reliance fresh !hich are4F'943an" 2> are li)el& to p#rchase fro% 0ig apple !hich are 42'28'3+ 42 li)el& to p#rchase other !hich are@'83 of total respon"ent
62
Interpretation
In %& o ser$ation I fo#n" till to"a& organise" retail sector "i"n*t penetrate the %ar)et' Co%pan& sho#l" tr& to open ne! con$enience store an" pro$i"e %ore sche%e an" goo" ser$ice to c#sto%er to penetrate the %ar)et' Initial it %a& e costlier+ #t it !ill gi$e long ter% enefit'
63
0D1. Do a')ertisement an' 3romotion in-$ en4e (o r s"o33ing 'e4ision?
Ies C D Ees :A;
1%% 0&% 0%% (&% (%% '&% '%% &% %
No C D No :<
yes
No
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! the effect of pro%otion sche%e on p#rchasing'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich >F5 c#sto%er are li)e pro%otion sche%e !hich areF4'=:3 an" >9 are those people !hich sa& pro%otion sche%e "oesn*t effect on p#rchasing'
64
Interpretation
In %& o ser$ation I fo#n" pro%otion sche%e is %#st to s#stain c#sto%er attract c#sto%er H infl#ence the p#rchasing'
0C1.
Are Promotion s4"eme eas( to n'erstan'
Ies C D NO C D so%e ti%e C D
Ees 9=C
no CA
Some time ==C
yes no Some time
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! "ispla& of pro%otion sche%e''
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 842 c#sto%er sa& &es !hich
65
are94'8F3 an" 2F are those !hich sa& no !hich are 85'F@ an" 442 sa& so%e ti%e'
Interpretation5
Co%pan& sho#l" tr& %a)ing pro%otion sche%e eas& #n"erstan"a le+ pro%otion sche%e sho#l" e in oth in English H Hin"i
66
&o% $i!e$( are (o to re4ommen' Re$ian4e .res" to a -rien' or re$ati)e? Wo $' (o sa( t"e 4"an4es areO
0A1.
E(cellent C D Goo" C D Fair C D Poor C D E(cellent 8F Goo" 4F2 Fair 4F5 Poor 2
(%% '&% '%% &% % 23cellent +ood Fair 4oor
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! the satisfaction le$el of c#sto%er'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 8F c#sto%er sa& e(cellent !hich are:'23 an"4F 2 sa& goo" !hich are @:':3+ 4F5 sa& fair !hich are @@'=3 an" 2 c#sto%er are those sa& poor
67
Interpretation
In %& o ser$ation I fo#n" that onl& @:':3 c#sto%er are f#ll& satisfie" fro% the store co%pan& sho#l" tr& satisf& the c#sto%er & pro$i"ing etter ser$ice an" rectif& their pro le% i%%e"iatel&'
68
0=;1.
(o
W"i4" -orm o- a')ertisement 'o t"in! is most e--e4ti)e?
TE C D Ra"io C D telephone C D TE 44F Ra"io 9: Telephon e 4=:
Print C D Print =@
'6% '5% '1% '(% '%% 6% 5% 1% (% %
,rint
7*
Radio
7ele,hone
$ata Collected5
?#estionnaire to )no! the pro%otion' 7ata collecte" fro% this etter a"$ertise%ent %o"e of
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 44F c#sto%er sa& TE !hich are823 an" =@ sa& print !hich are 4='@3+ 9: sa& Ra"io !hich are 4>'4=3 an" 4=: c#sto%er are sa& telephone'
Interpretation 5
69
Accor"ing respon"e" res#lt co%pan& can choose telephone as est for a"$ertise%ent an" call in"#sial for attracting the c#sto%er
70
0==1.
7i" &o# get help fro% CSA
so%e ti%e C D Ne$er C D So%e ti%e 48@ Ne$er 4@
!hen as)e"O
Ies C D No C D Ies 4F8
(%% '&% '%% &% % yes N! Some time Never
NO F9
$ata Collected5
7ata collecte" fro% this ?#estionnaire to )no! a o#t CSA perfor%ance'
A/A 0SIS6
7ata collecte" for project fro% @89 respon"e" in !hich 4F8 c#sto%er sa& &es !hich are @9'43 an" F9 sa& no !hich are 88'>93+ 48@ sa& so%e ti%e !hich are 8F'4=3 an" 4@c#sto%er are sa& ne$er !hich are >'893'
71
Interpretation5
Accor"ing respon"ent c#sto%ers are not f#ll& satisfie" co%pan& sho#l" recr#it ne! s)ille" e%plo&ee for etter perfor%ance'
72
73
!in in(
4-Ma1orit& of c#sto%ers here is fe%ale' 8- Majorit& of c#sto%ers are &o#ng' >-Majorit& c#sto%ers li)e to p#rchase all goo"s fro% Reliance fresh' @- C#sto%ers li)e one stops shopping' 9-Local %ar)et till to"a& is the first choice of c#sto%er' :-A"$ertise%ent is the iggest !a& to attracting the c#sto%er' =-Pro%otion sche%e not so eas& to #n"er stan" for c#sto%er' 2-Most of c#sto%er is not f#ll& satisfie" !ith store' F-Tele phone is the est !a& for attracting the c#sto%er' 45 Shortages of s)ille" !or)ers'
74
75
L/0/tat/)-,
The project has so%e li%itations eca#se it is totall& ase" on efforts of in"i$i"#als' Peoples %a& eca#se of so %an& reasons' It is totall& ase" on personal efforts of e careless an" %a& not gi$e correct ans!er to the ?#estions+
?
in"i$i"#als'
?
So%e of the cons#%ers are #na le to #n"erstan" the ?#estionnaire' Lang#age is one of the !orst pro le%+ so%e of the cons#%ers are #na le to #n"erstan" English' So%e cons#%ers are not intereste" in filling ?#estionnaire'
?
?
76
77
Su((estion
4- More pro%otion sche%e sho#l" e #se" to penetrate the %ar)et' 8- S)ille" e%plo&ees sho#l" e higher eca#se %ostl& c#sto%ers are &o#ng' >- Pro%otion sche%e sho#l" in s#ch !a& that c#sto%er can #n"erstan" easil&' @- Ser$ice of store sho#l" e pro$i"ing in s#ch !a& !hich f#ll the nee" of the c#sto%er'
78
A%%en ix
Reliance !res&
;ue+tionnaire
NAMEGEN7ERAGE Monthl& inco%e-
4-
Ho! offer "o &o# shop 7ail& C D !ee) C D fortnightl& C D once in %onth C D
8- /hat "o &o# %ostl& shop for at %entione" store Eegeta les C D Grocer& C D cos%etic pro"#ct C D >- /hich store "o &o# shopO Reliance Fresh C D 0ig apple C D other C D Local %ar)et @- Preference of shopping P#alit& C D 0ran" C D Price C D one stop shop 9- 7o a"$ertise%ent an" pro%otion infl#ence &o#r shopping "ecision Ies C D No C D
79
:- Are Pro%otion sche%e eas& to #n"erstan" Ies C D NO C D so%e ti%e C D =- Ho! li)el& are &o# to reco%%en" Reliance Fresh to a frien" or relati$eO /o#l" &o# sa& the chances areO E(cellent C D Goo" C D Fair C D Poor C D 2- Are the Price of Reliance fresh is lo!er than the other co%petitor Ies C D No C D E?#al C D no i"ea C D F- /hich for% of a"$ertise%ent "o &o# thin) is %ost effecti$eO Print C D 45TE C D Ra"io C D
7i" &o# get help fro% CSA !hen as)e"O Ies C D No C D so%e ti%e C D Ne$er C D
80
Re"erences
Referre" oo)sMar)eting Research K Paneersel$a% Research Metho"olog& K C'R ,othari Principles of Mar)eting K Philip ,otler Re-erre' site? !!!'ril'co% ? !!!'google'co% ? !!!'!ic)ipe"ia'co%
81
doc_117770063.doc