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Study-of-consumer-buying-behaviour-in-reliance-fresh

  1. 1. Study of Consumer buying behaviour In Reliance Fresh New Delhi Project Report Submitted To SCHOOL OF MANAGEMENT SCIENCES For The Award OfPost Graduate Diploma in Management Submitted By Amit Kumar Gupta (Roll No. : PG/08/05) SCHOOL OF MANAGEMENT SCIENCES LUCKNOW 1
  2. 2. Study of Consumer Buying Behaviour In Reliance Fresh Submitted By Amit Kumar Gupta (Roll No. : PG/08/05)SCHOOL OF MANAGEMENT SCIENCES LUCKNOW 2
  3. 3. Reliance fResh 3
  4. 4. Certificate 4
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  6. 6. Executive SummaryRetailing is the interface between the producer and the individualconsumer buying for personal consumption. This excludes directinterface between the manufacturer and institutional buyers such asthe government and other bulk customers. A retailer is one who stocksthe producer’s goods and is involved in the act of selling it to theindividual consumer, at a margin of profit. As such, retailing is the lastlink that connects the individual consumer with the manufacturing anddistribution chain. The retail industry in India is of late often beinghailed as one of the sunrise sectors in the economy. AT Kearney, thewell-known international management consultancy, recently identifiedIndia as the ‘first most attractive retail destination’ globally fromamong thirty emergent markets. It has made India the cause of a gooddeal of excitement and the cynosure of many foreign and domesticeyes. The entry of foreign and Indian retail giants like Wal-Mart, Metro,Reliance, Birla, Tata etc. made Indian market more competitive which isat cut throat level. So how retailers can reach to their end customers,to win the mind share and increase the basket size of each shoppingtrip.India retail industry is the largest industry in India, with an employmentof around 8% and contributing to over 10% of the countrys GDP. Retailindustry in India is expected to rise 25% yearly being driven by strongincome growth, changing lifestyles, and favourable demographicpatterns.It is expected that by 2016 modern retail industry in India will be worthUS$ 175- 200 billion. India retail industry is one of the fastest growingindustries with revenue expected in 2007 to amount US$ 320 billionand is increasing at a rate of 5% yearly. A further increase of 7-8% isexpected in the industry of retail in India by growth in consumerism inurban areas, rising incomes, and a steep rise in rural consumption. Ithas further been predicted that the retailing industry in India will 6
  7. 7. amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5billion.The growth of scope in the Indian retail market is mainly due to thechange in the consumer’s behaviour. For the new generation havepreference towards luxury commodities which have been due to thestrong increase in income, changing lifestyle, and demographicpatterns which are favourable.Reliance Retail is the retail chain division of reliance industries of Indiawhich is headed by Mukesh Ambani. Reliance has entered into thissegment by opening new retail stores into almost every metropolitanand regional area of India. Reliance plans to invest rs 25000 crores inthe next 4 years in their retail division and plans to begin retail stores in784 cities across the country. The reliance fresh supermarket chain isril’s rs 25,000 crore venture and it plans to add more stores acrossdifferent g, and eventually have a pan-India footprint by year 2011tothe company. .AS The twentieth century has come to and we have moved in to thirdmillennium , we can see many development and changes taking placearound us with all the industries and firms within each industry tryingto keep pace with all the industries and firm within each industriestrying to keep pace with the changes and diverse need of people .Marketer have regarded “customer” as the king and evolved allactivities to satisfy him or her, this concept gaining more momentumand importance today.More than a century ago, the father of our nation, Mahatma Gandhi,had made visionary and deep meaningful statement at Johannesburg,South Africa in 1980. A customer is the most important visitor of ourpremises. He is not dependent on us .We are dependent on him He isnot interruption on our work. He is the purpose of it and not an 7
  8. 8. outsider on our premises. He is a part of it. We are not doing himfavour by serving him.Today the entire firm engaged in a process of creating a life time valueand relationship with customers. This report start with discussion onthe diversity of consumer behaviour and the need for studyingconsumer buying behaviour and consumer as a related field ofmarketing .this can be largely be attributed to the prevailing marketsituation .Today the company image is built and made known by itscustomers. Thus success of the firm determined how effective it hasbeen in meeting the diverse consumer need and wants by treating eachcustomer as unique and offering products and services to suit has orher need.Consumer buying behaviour will be a primary force in determining howthis transition will evolve. Getting closer to the customer in today’shighly competitive landscape is essential for the entire industry and isno longer just a retail issue. It requires all organisations across thesupply chain to work as a single enterprise, sensing and respondingrapidly to consumer demand in a co-ordinated manner. Detailedanalysis of the changing patterns of consumer demand, shoppingtrends.This research report is based on to know the1- Major factors influencing consumer buying behaviour.2- Buying decision process.3- The stage in buying decision process4- Awareness of consumer towards organised retail sector 8
  9. 9. 9
  10. 10. DeclarationI hereby declare that this summer project report titled “BuyingBehaviour/consumer satisfaction of Reliance Fresh customer in “Delhi.”is the result of my own effort in the training which I did as a part of thecurriculum, for the fulfilments of POST GRADUATE DIPLOMA INMANAGEMENT (PGDM). It has not been duplicated from any otherearlier works and all information provided in this report is genuine.This report is submitted for the partial fulfilments of PGDM program. Ithas not been submitted to any other university or for any other degree.Date: AMIT KUMAR GUPTA PGDM (MARKETING) SMS LUCKNOW 10
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  12. 12. ACKNOWLEDGEMENTI take this opportunity to express my sincere gratitude to the followingpersonalities without whose help and guidance the successfulcompletion of my project work would have been remained a dream.I extend my heartfelt thanks to our HR Miss. SHIVANGALI SINGH for theconstant and valuable guidance by him through out my course.I would like to take the pleasure of this opportunity to express myheartful gratitude to my guide Professor Mrs VANDANA SHRIVASTAV(Faculty Member, SMS) who took personal interest and gave valuablesuggestions through out my field work and completion of the project.I thank all my faculty members of MBA department for their valuablesuggestions throughout my course.The importance of the moral support and good wishes of my parentsand friends is external and I am very much indebted to them.Finally I thank all my friends who directly or indirectly helped me a lotduring my project. AMIT KUMAR GUPTA PGDM-MARKETING 12
  13. 13. SMS LUCKNOWContents 13
  14. 14. S.N. INDEX PAGE NO Certificate 4 Executive Summary 5 Declaration 9 Acknowledgement 11CHAPTER- 1 INTRODUCTION &BACKGROUND 1.1 Company Overview 14 1.2 Popular Profile 21 1.3 Supply Chain Model 27 1.4 SWOT Analysis 30 1.5 Corporate Social Responsibility 33 1.6 Major Player 35CHAPTER-2 RESEARCH METHODOLOGY &DESIGN 2.1 Objective of Research 38 2.2 Type of Research 41 2.3 Source of data & Collection tool 41 2.4 Sampling 42 2.5 Sample size 42CHAPTER-3 ANALYSIS & INTERPRETATION Meaning of consumer Buying Behaviour 44 Interpretation of collect data 49CHAPTER-4 RESEARCH FINDING 69CHAPTER-5 LIMITATION OF RESEARCH 71CHAPTER-6 SUGGESTION 73 APPENDIX 75 REFRENCES 77 14
  15. 15. RELIANCE"Growth has no limit at Reliance. I keep revising my vision. Onlywhen you can dream it, you can do it." 15
  16. 16. Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002RELIANCE GROUPThe Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), isIndias largest private sector enterprise, with businesses in the energyand materials value chain. Groups annual revenues are in excess ofUSD 27 billion. The flagship company, Reliance Industries Limited, is aFortune Global 500 company and is the largest private sector companyin India.Backward vertical integration has been the cornerstone of theevolution and growth of Reliance. Starting with textiles in the lateseventies, Reliance pursued a strategy of backward vertical integration- in polyester, fibre intermediates, plastics, petrochemicals, petroleumrefining and oil and gas exploration and production - to be fullyintegrated along the materials and energy value chain. 16
  17. 17. The Groups activities span exploration and production of oil and gas,petroleum refining and marketing, petrochemicals (polyester, fibreintermediates, plastics and chemicals), textiles and retail.Reliance enjoys global leadership in its businesses; The Group exportsproducts in excess of USD 15 billion to more than 100 countries in theworld. There are more than 25,000 employees on the rolls of GroupCompanies. Major Group Companies are Reliance Industries Limited(including main subsidiaries Reliance Petroleum Limited and RelianceRetail limited) and Reliance Industrial Infrastructure Limited.Reliance Industries Limited is Indias largest private sectorconglomerate (and second largest overall) with an annual turnover ofUS$ 35.9 billion and profit of US$ 4.85 billion for the fiscal year endingin March 2008 making it one of Indias private sector Fortune Global500 companies, being ranked at 206th position (2008). [1] It wasfounded by the Indian industrialist Dhirubhai Ambani in 1966. Ambanihas been a pioneer in introducing financial instruments like fullyconvertible debentures to the Indian stock markets. Ambani was one ofthe first entrepreneurs to draw retail investors to the stock markets.Critics allege that the rise of Reliance Industries to the top slot in termsof market capitalization is largely due to Dhirubhais ability tomanipulate the levers of a controlled economy to his advantage.Though the companys oil-related operation forms the core of itsbusiness, it has diversified its operations in recent years. After severedifferences between the founders two sons, Mukesh Ambani and AnilAmbani, the group was divided between them in 2006. In September2008, Reliance Industries was the only Indian firm featured in theForbess list of "worlds 100 most respected companies" 17
  18. 18. Subsidiaries of RIL• Reliance Petroleum• Ranger Farms Limited• Retail Concepts and Services (India) Private Limited• Reliance Retail• Reliance Global Management Services (P) Limited• Reliance Biopharmaceuticals• Reliance Ghatraj Services• Reliance Engineering Associates (P) Limited 18
  19. 19. Reliance Retail LimitedReliance is gearing up to revolutionize the retailing industry in India.Towards this end, Reliance is aggressively working on introducing apan-India network of retail outlets in multiple formats.A world class shopping environment, state of art technology, aseamless supply chain infrastructure, a host of unique value-addedservices and above all, unmatched customer experience, is what thisinitiative is all about.The retail initiative of Reliance will be without a parallel in size andspread and make India proud. Ensuring better returns to Indian farmersand manufacturers and greater value for the Indian consumer, both inquality and quantity, will be an integral feature of this project. Bycreating value at all levels, we will actively endeavour to contribute toIndias growth.The project will boast of a seamless supply chain infrastructure,unprecedented even by world standards. Through multiple formats anda wide range of categories, Reliance is aiming to touch almost everyIndian customer and supplier.With a vision to generate inclusive growth and prosperity for farmers,vendor partners, small shopkeepers and consumers, Reliance RetailLimited (RRL), a subsidiary of RIL, was set up to lead Reliance Group’sforay into organized retail.With a 27% share of world GDP, retail is a significant contributor tooverall economic activity across the world. Of this, organized retailingcontributes between 20% to 55% in various developing markets. TheIndian retail industry is pegged at $ 300 billion and growing at over13% per year. Of this, presently, organized retailing is about 5%. This isexpected to grow to 10% by 2011. RRL has embarked upon animplementation plan to build state-of-the-art retail infrastructure in 19
  20. 20. India, which includes a multi-format store strategy of openingneighbourhood convenience stores, hypermarkets, and specialty andwholesale stores across India.RRL launched its first store in November 2006 through its conveniencestore format ‘Reliance Fresh’. Since then RRL has rapidly grown tooperate 590 stores across 13 states at the end of FY 2007-08. RRLlaunched its first ‘Reliance Digital’ store in April 2007 and its first andIndia’s largest hypermarket ‘Reliance Mart’ in Ahmadabad in August2007. This year, RRL has also launched its first few specialty stores forapparel (Reliance Trends), footwear (Reliance Footprints), jewellery(Reliance Jewels), books, music and other lifestyle products (RelianceTimeout), auto accessories and service format (Reliance AutoZone) andalso an initiative in the health and wellness business through ‘RelianceWellness’. In each of these store formats, RRL is offering a unique set ofproducts and services at a value price point that has not been availableso far to the Indian consumer. Overall, RRL is well positioned to rapidlyexpand its existing network of 590 stores which operate in 57 cities.During the year, RRL also focused on building strong relationships in theagri-business value chain and has commenced marketing fruits,vegetables and staples that the company sources directly towholesalers and institutional customers. RRL provides its customerswith high quality produce that has better shelf life and more consistentquality than was available earlier. RRL has made significant progress inestablishing state-of-the-art staples processing centres and expects tomake them operational by May 2008.Through the year, RRL also expanded its supply chain infrastructure.The Company is fully geared to meet the requirements of its rapidlygrowing store network in an efficient manner.Recognizing that strategic alliances are going to be a key driver to itsretail business, in FY 2007-08, RRL established key joint ventures withinternational partners in apparel, optical and office productsbusinesses. Further, RRL will continue to seek synergistic opportunities 20
  21. 21. with other international players as well. This year, RRL will continue itsfocus on rapid expansion of the existing and other new formats acrossIndia. 21
  22. 22. Popular Profiles at Reliance Retail ManageMent teaMnaMe DesignationMr. Mukesh Ambani Chairman&Managing DirectorNikhil R Meshwani Executive Directorhital R Meshwani Executive DirectorMadhumita Mohanti Deputy General ManagerAkashay Lokhande Area Manager-Operation &Sales and NSODevandra Chawla Vice-President-Business Head, Merchandise HeadZubin Nowrojee, Mangement State Head Category 22
  23. 23. Formats of Reliance RETAILReliance Fresh,Reliance Mart,Reliance Digital,Reliance Trendz,Reliance Footprint,Reliance Wellness,Reliance Jewels,Reliance Timeout and Reliance Super, 23
  24. 24. RELIANCE fRESH APKA FRESH APKE PADAOS MEReliance fresh is the retail chain division of reliance industries of Indiawhich is headed by Mukesh Ambani. Reliance has entered into thissegment by opening new retail stores into almost every metropolitanand regional area of India. Reliance plans to invest rs 25000 crores inthe next 4 years in their retail division and plans to begin retail stores in784 cities across the country. The reliance fresh supermarket chain isril’s rs 25,000 crore venture and it plans to add more stores acrossdifferent g, and eventually have a pan-India footprint by year 2011. Thesuper marts will sell fresh fruits and vegetables, staples, groceries, freshjuice bars and dairy products and also will sport a separate enclosureand supply-chain for non-vegetarian products. Besides, the storeswould provide direct employment to 5 lakh young Indians and indirectjob opportunities to a million people, according to the company. Thecompany also has plans to train students and housewives in customercare and quality services for part-time jobsBACK GROUNDWe can see many examples of businesses where, first we grow andthen think of expanding butReliance is quite different. Reliance has developed such huge amountof resources and capital over the years that whenever it steps into anysegment it is not required to wait for growing signal, that’s why it 24
  25. 25. always thinks of expanding without any boundaries. Reliance retail isnext Step by RIL which will be a pan India project.Reliance Fresh is the retail chain division of Reliance Industries of Indiawhich is headed by Mukesh Ambani. Reliance has entered into thissegment by opening new retail stores into almost every metropolitanand regional area of India. Reliance plans to invest Rs 25000 crores inthe next 4 years in their retail division and plans to begin retail stores in784 cities across the country. The Reliance Fresh supermarket chain isRIL’s Rs 25,000 crore venture and it plans to add more stores acrossdifferent g, and eventually have a pan-India footprint by year 2011.The super marts will sell fresh fruits and vegetables, staples, groceries,fresh juice bars and dairy products and also will sport a separateenclosure and supply-chain for non-vegetarian products. Besides, thestores would provide direct employment to 5 lakh young Indians andindirect job opportunities to a million people, according to thecompany. The company also has plans to train students andhousewives in customer care and quality services for part-time jobs.The company is planning on opening new stores with store-size varyingfrom 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits andvegetables, staples, FMCG products and dairy products. Each store issaid to be within a radius of 1-2 km of each other, in relation to theconcept of a neighbor store. However, this is only the entry roll-outthat the company has planned. Bangalore is said to have 40 stores in allby the end of the year.In a dramatic change due circumstances prevailing in UP, West Bengaland Orissa, It was mentioned recently in News Dailies that, RelianceRetail is moving out stocking. Reliance Retail has decided to minimizeits exposure in the fruit and vegetable business and position RelianceFresh as a pure play super market focusing on categories like food,FMCG, home, consumer durables, IT, wellness and auto accessories,with food accounting for the bulk of the business. The company may not stock fruit and vegetables in some states, Orissabeing one of them. Though Reliance Fresh is not exiting the fruit andvegetable business altogether, it has decided not to compete with localvendors partly due to political reasons, and partly due to its inability to 25
  26. 26. create a robust supply chain. This is quite different from what the firmhad originally planned. When the first Reliance Fresh store opened inHyderabad last October, not only did the company said the store’smain focus would be fresh produce like fruits and vegetables at a muchlower price, but also spoke at length about its “farm-to-fork’’ theory.The idea the company spoke about was to source from farmers and selldirectly to the consumer removing middlemen out of the way. 26
  27. 27. faRM to foRKThe Reliance retail company sources say it is setting aside Rs50,000 crore to build its farm-to-fork linkage. Reliance has drawnup plans for a presence in 784 towns and 6,000 mandi (wholesalemarket) towns with 1,600 rural business hubs to service these. Ithas already rolled out 177 Reliance Fresh stores across majortowns in 11 states. According to a company report, RIL istargeting a turnover of Rs 40,000 crore in the next few years. TRADITIONAL MODEL OF RETAIL RELIANCE “FARM TOFORK” 27
  28. 28. sUPPlY chain MoDels of RelianceRetail Reliance started its retail operations of Reliance Fresh stores with following supply chain model. Procuring directly from the farmers and operating with moderate margin but mass selling was key to Reliance fresh operation for first few months. The following figure depicts the first Reliance fresh model RELIANCE FRESH FARMERS FARMERS FARMERS CATEGORY CATEGORY CATEGORY 1 2 3 Fa rm n ers atio Ow or t n COLLECTION ns p Tra n POINT/UNIT n Tra sp o Ow rta t ers ion rm Fa RELIANCE OWN LOGISTICS PROCESSING UNIT/POINT RF s Re ti c lia RF o gi s nc w nL eo wn c eo Lo an gi s Rel i ti c s RELIANCE FRESH RELIANCE FRESH RELIANCE FRESH OUTLETS OUTLETS OUTLETS 28
  29. 29. WHOLESALE TRADING (WST) : Reliance formalized its second supply chain model to shift itself from grocery retailer to grocery supplier by focusing and establishing itself in Mandi’s. STEPS IN WTS MODEL: 1) Reliance has owned farms on contract basis for production of specific crop which is decided after extensive research depending on• SOIL CONDITIONS,• CLIMATE CONDITIONS,• RETURN OVER COSTS INCURRED. So as to yield best possible results. 2) Different vegetables and fruits from such farms are collected through reliance own Logistics and brought to collection Processing centres where quality check and other required processing is done. In processing centres workers wearing balaclavas, woollen trousers and bulky jackets work inside a room kept at a constant 3oC, peeling and chopping vegetables, spinning them dry and then heaping them in small plastic packets before placing them in plastic transport crates. At the other end of the 5,000-sq-m warehouse, men unload crates of fruits from a truck pulled up to a spotless loading dock. A quality-control expert samples every tenth crate; if the fruits are good a team will ready them for delivery within hours to Reliance fresh stores around different places like U.P and as far away as Hyderabad and even Mumbai (formerly Bombay). If they 29
  30. 30. are not, workers will inspect the entire shipment and discard anything below standard. 3) Merchandise from these collection processing centers are collected and loaded for Wholesale mandi’s. As this merchandise is to be made available by 4 A.M in morning thus deliveries in trucks are sent at time depending upon: TRANSIT TIME. – Time required reaching destination i.e. mandi’s.MARGIN TIME. – Time period between a truck reaching mandi andthen Unloads. Can be 2 to 3 hours.LOADING AND UNLOADING TIME. 4) From mandi’s where the trucks have been unloaded, roadside vendors and pull carters Buy fruits and vegetables to supply in households. 5) In case still some vegetables and fruits are not sold reliance logistics own Transportation sends them to reliance fresh stores. 30
  31. 31. SWOT ANALYSISThe Indian retail market accounted for $ 200 billions. Food accountsfor over two-thirds of the $200-billion Indian retail market. Yet, it hasseen less than 1 per cent penetration by modern retail so far.Reliance industries which always looking for new businessopportunities just started a new era with its introduction of newconcept stores named Reliance Fresh with opening convince store inhigh streets of Banjara hills of Hyderabad. Reliance Fresh is verydifferent from what modern retail has offered in India so far and withthis reliance is planning to establish strong retail network in India infood and farm sector. They have started with new eleven stores in thelast week and they are thinking to add 100 more stores to theirfeather by the end of this year.Let’s do a SWOT analysis on the Reliance Fresh.Strengths:Reliance is the first into enter into this unorganized sector ofvegetables and fruits. According to them its intentions to have100%farm fresh foods in their new retail stores. It is also adding shortly ajuice bar, and even a large counter for puja flowers. In fact, over 60per cent of the floor space has been dedicated to fresh fruits andvegetables, the rest to other food products like staples, spices, bakery,etc. But reliance has decided not to add any bar soap or toothpasteand detergent in its shelves. So by using this strategy they arepositioning themselves different from other players of the industries 31
  32. 32. like Food world, Big Bazaar and Nilgiris. But over come the shortcomings of these specialized stores they are also introducing newReliance full-fledged supermarket called Shakhari Bhandar whichoffers each and everything from the staple to soap. Most of thestaples are under its own private label brand — ‘Reliance Select’.There is a 500g channa dal pack priced at Rs 28, a 500g urad dal packfor Rs 39, all under Reliance’s own brand. Excepting a few packets ofNestle’s Maggi, or MTR’s masalas or Pepsi’s Lays chips, there is verylittle shelf space given to the big brand owners in the country. Reason:private labels offer far better profit margin to the retailer thanbranded products of FMCG companies. Most of these outlets will needonly 2,000-5,000 sq. ft. A supermarket may need as much as8,000-10,000 sq. ft. Weakness:This is definitely an interesting business venture but it may miss outon the opportunity to capture a greater share of the customer’swallet. For customers, too, this could be irksome, as they would haveto visit another store to pick up essentials. Reliance could easily fix thisproblem by adding a few small counters for some basic non-foodproducts. According to their official this format is not final one theyare accepting the new changes which are required to attract the largenumber of customers.OpportunitiesReliance wants to build a high-profitability business and food is,perhaps, the best venture to start. That is because the Indian foodsupply chain is grossly inefficient. There are several intermediaries,each of whom adds his own profit margin to the cost. Besides, there ishuge wastage in transit. This offers potential for savings and profits. 32
  33. 33. To reduce the cost and increase the profit it has been sourcing out itsrequirements from the farmers. For example, the leafy vegetables,brinjals, tomatoes and green chilies in the Banjara Hills outlet weresourced directly from farmers in Vantimamdi, Chevella and nearbymandals in Ranga Reddy district of Andhra Pradesh. The supply chainalready has been backed by few hundred farmers the number isestimated to touch million in next five years. The main aim of thereliance is to eliminate the intermediaries in the sector and reduce thecost. Smaller stores have two advantages. They bring down the cost ofreal estate (and increase profits). It is easier to find space for smallconvenience stores in a quiet neighbourhood than for supermarkets inhigh streets.Threats:This model is engineered to clock a faster turnover of inventory —Reliance expects consumers to visit the store at least twice a week fortheir top-up groceries. Each store will have an investment of Rs 50lakh to Rs 60 lakh. Unlike global retailers who operate on thin margins,Reliance Retail is looking at a fairly high-margin business model.Deliberately stopped short of being a full-fledged supermarket rather,it has limited itself to a food and grocery convenience store. They alsohave a threat from the existing supermarkets which provides all theservices to its customers. For Example Food world and Nilgiris alsoprovides food and beverages with other personal care products. Theseconvince are not existed in the present Reliance retail stores. 33
  34. 34. coRPoRate social ResPonsiBilitYToday when most of the companies are busy in making profits by anymeans, there are fewOnes who are focused to return this society, a part of what they haveearned through this society. Reliance retail is one of them. Followingefforts of reliance retail are aimed at benefiting the society makingreliance socially responsible: 1) Reliance Retail aims at recruiting people from the underprivileged community in society. "Hence, we are planning to train students from corporation schools and schools run by NGOs. And, we consider this as a part of our corporate social responsibility," he said. Asked whether the company will take students on an employment basis and pay them a stipend during the course period, he said that actually, it is planning to charge a "small fee" from those who want to join the course "as we want to bring in some discipline and regularity among the students", and will reimburse that once they are inducted into service. 2) Farming in India is highly fragmented and subject to harsh climatic conditions: once harvested, it is very difficult to keep fruits and vegetables fresh. To secure high quality, Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers from villages through Collection Centers. With this concept, Reliance has built a business model generating shared value that links the company supply chain 34
  35. 35. more closely to poor farmers in Indian villages. Reliance is providing a guaranteed market for the farmers’ produce, reducing transaction costs and training the farmers in better and sustainable farming practices. This initiative results in higher income and upgrading of skills for the farmers, and reduced spoilage of produce (up to 35 percent) and better quality products f or Reliance retail stores. 3) Reliance retail has adopted “farm to fork” theory which means itis procuring directly from the farmers thus offering them quitereasonable prices for their produce as now no intermediaries areinvolved. In return Reliance is giving farmers information about howcan farmers improve their productivity. They have centers in villageswho apart from providing information make farmers aware of marketrates of different crops so that farmers can choose crops they want tosow to become profitable. Farmers are provided technical help as welllike information about quality of seeds and fertilizers. 35
  36. 36. Major players in retail sector shoPPeRs stoP:Shoppers’ Stop is the pioneer of pan-nation one-stop retail outlets.Starting in 1991 with a single store in Mumbai, it has now developedmore than 20 stores (total retail space crossed the 1 m mark in thesecond quarter of FY07). The company has added 1,568,479 sq ft ofarea during the year taking its total store area to 1,170,548 as onMarch 2007. The company has a wholly owned subsidiary – Crossword– a specialty retail chain with over 32 stores spread across the country.This store specialises in books, gift articles and stationery. During thequarter, Crossword opened its first store and 2 ‘Stop & Go’ stores atthe Mumbai domestic airport. Further, it forayed into airport retailingthrough a joint venture with The Nuance Group AG of Switzerland. Thecompany has also made an entry into the entertainment sector byacquiring 45% stake in Time zone Entertainment Pvt. Ltd. The recentmoves by the company will widen the offering and de-risk itsdependence on the flagship Shoppers’ Stop stores. Pantaloon: 36
  37. 37. Incorporated in 1987, Pantaloon Retail is among the pioneers in chainretailing. It is the largest retailer in the country operating 350 storesacross segments in over 40 cities across the country and constituting 5m square feet of retail space. Starting out with dedicated apparelstores (Pantaloon), the company has stores across the cross-section ofthe society. The company’s business is broadly divided into 2 segments,Lifestyle and Value retailing. On the apparels front it has Pantaloon (31departmental stores), Central Malls (4 seamless malls as well as itsother concepts). These stores can be classified under ‘LifestyleRetailing’. On the general merchandise front it has Big Bazaar(51hypermarkets), Food Bazaar (77 supermarkets) and Fashion Station(5 fashion stores) and other delivery formats. These fall under ‘ValueRetailing’. moreThe more. Chain of supermarkets, are bright and clean stores, atconvenient locations with layouts that allow ease of navigation. Theproduct display is well organised and facilitates ease of choice. Thestores have been designed by Fitch, the leading international retaildesign firm.The stores promise a range of benefits to consumers and are a solutionto the many problems faced by housewives while shopping for their 37
  38. 38. daily needs. The retail offering from the Aditya Birla Group, has beencrafted after in-depth research of the needs and expectations of theIndian consumers. more. is the answer to the shopping needs of theIndian housewife who wants a modern and convenient option in herneighbourhood, with an attractive and consistent range of products?more. assures consumers the security of knowing that they are payingthe best price in the market for good quality products. RPg gRoUP:RPG Enterprises is one of India’s largest business conglomerates, with aturnover of US$ 2.55 bn and assets worth US$ 1.8 billion. Since itsinception in1979, RPG Enterprises has been one of the fastest growinggroups in India with more than 20 companies operating successfully in7 business sectors: Retail, IT & Communications, Entertainment, Power,Transmission, Tyres and Life Sciences. In 2001, it established ‘Giant’Hypermarket Provogue (India) Ltd., (PIL) formerly Acme Clothing Pvt. Ltd wasincorporated in November 1997, converted in to a public limitedcompany in March 2005. It deals with fabrics, dyestuffs, chemicals andtextile machinery. PIL operates in two core industry segments. The firstbeing designing, manufacturing and selling branded ready-made 38
  39. 39. garments and other accessories under the brand Provogue. Thesecond business is export of finished fabrics, dyestuffs, chemicals andtextile machinery to several markets in African continent. 39
  40. 40. Research Objective• To study consumer buying behaviour reliance fresh customer of Delhi• To know about the consumer awareness towards Reliance fresh. 40
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  42. 42. Research MethodologyResearch ProblemTo make a comprehensive study of Reliance Fresh &know the Buyingbehaviour & of Reliance Fresh customers.Type of research Descriptive type research has used to complete the project. Thisresearch is base on fact finding enquires and the variables are totallyindependent and uncontrollable.Data collection:Primary DataPrimary data of research are collected from direct resources (customerof Reliance fresh) through questionnaire.Secondary Data 42
  43. 43. Secondary Data which are used for research to know the history scopof Retail industry are collected from already available resources like netand other sourcesUniverseUniverse of this research is reliance fresh customer of Delhi.Sampling technique Random sampling is used for research project. I have given equalweightages to my all respondent and chose them randomly withoutany biased like gender, age, income culture.Sample size425 respondents has selected as sample size for research.Data representation technique and toolsColumns chart & Pie chart has used for representation. 43
  44. 44. 44
  45. 45. Understanding The Buying Behaviour Of Reliance FreshConsumersDefinitionPurchase decision making pattern that is a complex amalgam of needsand desires, and is influenced by factors such as the consumers (1)societal role (parent, spouse, worker, etc.), (2) social and culturalenvironment and norms, and (3) aspirations and inhibitions.Buying Behaviour is in the Advertising, Marketing, & Sales andPurchasing & Procurement subjects.Buying Behaviour appears in the definitions of the following terms:marketing research, advertisement (ad), ACORN, economicenvironment, activities, interests, opinions (AIO) and consumerresearch.Buying Behaviour appears in these other term: consumer buyingbehaviour. 45
  46. 46. Model of Buying BehaviourMarketing Other Buyer’s Buyer’s Buyer’s CharacterStimuli Stimuli istics Decision Decision Process Problem recognitio ProductProduct Economic Cultural n choice Technolog Informatio Price ical Social n Search Brand choice Dealer Place Political Personal Evaluation choicePromoti Psycholo Purchase on Cultural gical Decision timing Post Purchase purchase amount Behaviour 46
  47. 47. When I have analysed the model of buying Behaviour finding thatpeople of DELHI are influenced by the marketing stimuli (4 P’s) peopleare focused on price rather than product, place and promotion, otherfactor which influenced people is the technological advancement.Cultural Social Personal Reference Psychologicaculture Groups l Cycle Stage MotivationSubculture Family Economic Perception Circumstance s Learning Beliefs and Life Style Attitudes Roles and Personality Statuses and BUYERSocial Class Self ConceptReference groups can have potent influence on behaviour in general,and they may also be very influential on consumer behaviour,considering the ‘Consumer Goods Segment’. Family and friends inspecific are considered before making a decision about purchasing aproduct. But their purchase decision depends completely on self-opinion. 47
  48. 48. Where reference groups’ influence is operative, the advertiser shouldstress not only the people who buy the product but also those whoinfluenced the purchasing decision.The process may be viewed as starting when the consumer engages inproblem recognition. Problem recognition occurs when the consumeris activated by awareness of a sufficient difference between his / herconcept of ideal situation. The action occurs only when the consumerperceives a sufficiently large discrepancy between the actual and idealstates.Given that the consumer is aroused to action, the next state is internalsearch for a quick and largely unconscious review of memory for storedinformation and of an experience regarding the problem. Thisinformation in the form of beliefs and attitude influence theconsumer’s preference towards band. If an internal search does notprovide sufficient information aboutProducts, or how to evaluate them, the consumer continues with amore involved external search for information.Any information stimuli are then subjected to information processingactivities. This process involves allocating attention to available stimuli,deriving meaning from these stimuli. The alternating evaluation phaseinvolves comparing the information gained in the search process for 48
  49. 49. alternative product and brands to the product judging criteria onstandards the consumer has developed. When such a comparison leadsto favourable evaluations, the consumer is likely to develop a purchaseintention towards that alternative that received the most favourableevaluation.A purchase process follows strong purchasing intentions. This involvesa series of selection, including the type of retail outlet as well thespecific brand on service to use. The consumer’s purchase then leads tovarious outcomes. One such outcome is satisfaction as a result of directexperience in using the brands. Satisfaction will affect the consumer’sbelief about the brand. Other outcome is dissatisfaction and post saledoubt.Many ad agencies conducted an in-depth study of consumer buyingbehaviour and found that they all crave for peer acceptance andparental non-influence. Beyond this they are an enigma 49
  50. 50. 50
  51. 51. (1). Gender of the consumer Male & Female 150 275 Male & Fem aleData Collected- Data collected for this questionnaire to know thegender of customer of reliance fresh.ANALYSIS— Data collected for project from 425 respondedin which 275 are female which are 64.7% and 150 are male which are35.29% of total respondentInterpretation- In total respondent we analyses that most of thecustomer in this store is female and their demand always consider atthe time of taking the decision. Company should try to attract newmale customer by provide new scheme on their customer 51
  52. 52. (2). Age of customer 10-20 21-50 51& above 123 230 72 250 200 150 100 50 0 10-20 21-50 51& aboveData Collected- Data collected for this questionnaire to knowthe age of customer of reliance fresh.ANALYSIS— Data collected for project from 425 responded in which123 are the age between 10-20 which are28.9% and230are betweenage of 21-50 which are54.29%and 72 are between age of 51 & abovewhich are 16.9 % of total respondentInterpretation- In total respondent we analyses that most of thecustomer are youth .in my observation I found that most new peoplebelieve in convenience shopping It help the company to keepmanagement such type which understand the problem of customereasily and rectify the problem effectively. 52
  53. 53. (3). How offer do you shop Daily ( ) week ( ) fortnightly ( ) once in month ( ) Daily Week Fortnightly Once in month 22 224 89 90 250 200 150 100 50 0 Daily Week Fortnightly Once in monthData Collected- Data collected for this questionnaire to know theshopping behaviour of customer of reliance fresh.ANALYSIS— Data collected for project from 425 responded inwhich 22 are like to purchase daily which are5.1% and224arelike topurchase weekly which are52.27%and 89 are likely to purchase 53
  54. 54. fortnightly which are 20.9%, 90 likely to purchase once in a monthwhich are21.17% of total respondentInterpretation- In total respondent we analyses that most of thecustomer are likely to purchase on weekend .in my observation Ifound that more scheme should be provided on weekend. 54
  55. 55. (4).What do you mostly shop for at mentionedstore? Vegetables ( ) Grocery ( ) cosmetic product ( ) all product ( )Vegetable Grocery Cosmetic All product product108 96 21 200 Vegetable Grocery Cosmetic product All productData Collected- Data collected for this questionnaire to knowthe products which are like to purchase by the customer.ANALYSIS— Data collected for project from 425 responded inwhich 200 customer are like to purchase all product which are47.00% 55
  56. 56. and108 are like to purchase vegetables which are25.41%and 96 arelikely to purchase grocery 22.5 which are 22.58.%, 21 likely to purchasecosmetic product which are4.9% of total respondentInterpretation- In total respondent we analyses that most of thecustomer are like to purchase all product in the store. Company shouldtry to retain the customer. And should increase the variety o cosmeticproduct& grocery. 56
  57. 57. (5). Preference of shopping? Quality ( ) Brand ( ) Price ( ) one stop shopQuality brand Price One stop shop102 134 59 130 quality brand price One stop shopData Collected- Data collected from this questionnaire to knowthe preference the shoppingANALYSIS— Data collected for project from 425 responded inwhich 134 customer are believe in reliance brand which are31.50%and130 are like to purchase in one stop shop which are 30.54%and102 are like to purchase quality product which are 24.00%, only 59respondent consider price which are 13.08.%. 57
  58. 58. Interpretation In total respondent we analyses that most of thecustomer are believe in reliance brand like to purchase qualitativeproduct in stop shop. Here I observed that people want to purchasefresh and original product and want better service. 58
  59. 59. (6). which store do you kept in preference forpurchasing Reliance Fresh ( ) Big apple ( ) other ( ) Local marketLocal Reliance fresh Big apple Othermarket244 83 80 18 250 200 150 100 50 0 Reliance fresh Big apple Local market otherData Collected- Data collected from this questionnaire to knowthe preference of the purchasing (comparison of store to other).ANALYSIS— Data collected for project from 425 responded inwhich 244 customer are like to purchase from local market whichare57.74% and 83 are like to purchase from reliance fresh whichare19.51%and 83 are likely to purchase from Big apple which are 59
  60. 60. 18.82.%, 18 likely to purchase other which are4.2% of totalrespondentInterpretation In my observation I found till today organisedretail sector didn’t penetrate the market. Company should try to opennew convenience store and provide more scheme and good service tocustomer to penetrate the market. Initial it may be costlier, but it willgive long term benefit. 60
  61. 61. (7). Do advertisement and promotion influence your shoppingdecision? Yes ( ) No ( )Yes No390 35 400 350 300 250 200 150 100 50 0 yes NoData Collected- Data collected from this questionnaire to knowthe effect of promotion scheme on purchasing.ANALYSIS— Data collected for project from 425 responded in which390 customer are like promotion scheme which are91.76% and 35 arethose people which say promotion scheme doesn’t effect onpurchasing. 61
  62. 62. Interpretation In my observation I found promotion scheme ismust to sustain customer attract customer & influence the purchasing.(8). Are Promotion scheme easy to understand Yes ( ) NO ( ) some time ( )Yes no Some time218 89 118 yes no Some timeData Collected- Data collected from this questionnaire to knowdisplay of promotion scheme..ANALYSIS— Data collected for project from 425 responded in which218 customer say yes which are51.29% and 89 are those which say nowhich are 20.94 and 118 say some time. 62
  63. 63. Interpretation- Company should try making promotion scheme easyunderstandable, promotion scheme should be in both in English &Hindi 63
  64. 64. (9).How likely are you to recommend RelianceFresh to a friend or relative? Would you say thechances are? Excellent ( ) Good ( ) Fair ( ) Poor ( )Excellent Good Fair Poor29 198 190 8 200 150 100 50 0 Excellent Good Fair PoorData Collected- Data collected from this questionnaire to knowthe satisfaction level of customer.ANALYSIS— Data collected for project from 425 responded inwhich 29 customer say excellent which are6.8% and19 8 say goodwhich are 46.6%, 190 say fair which are 44.7% and 8 customer arethose say poor 64
  65. 65. Interpretation In my observation I found that only 46.6% customer are fully satisfiedfrom the store company should try satisfy the customer by providingbetter service and rectify their problem immediately. 65
  66. 66. Which form of advertisement do you think is(10).most effective? Print ( ) TV ( ) Radio ( ) telephone ( )Print TV Radio Telephone74 119 56 176 180 160 140 120 100 80 60 40 20 0 print TV Radio TelephoneData Collected- Data collected from this questionnaire to knowthe better advertisement mode of promotion.ANALYSIS— Data collected for project from 425 responded inwhich 119 customer say TV which are28% and 74 say print which are17.4%, 56 say Radio which are 13.17% and 176 customer are saytelephone.Interpretation - 66
  67. 67. According responded result company can choose telephone as best foradvertisement and call indusial for attracting the customer 67
  68. 68. (11). Did you get help from CSA when asked? Yes ( ) No ( ) some time ( ) Never ( )Yes NO Some time Never192 95 124 14 200 150 100 50 0 yes NO Some time NeverData Collected- Data collected from this questionnaire to knowabout CSA performance.ANALYSIS— Data collected for project from 425 responded inwhich 192 customer say yes which are 45.1% and 95 say no which are22.35%, 124 say some time which are 29.17% and 14customer are saynever which are 3.25%. 68
  69. 69. Interpretation- According respondent customers are not fully satisfied companyshould recruit new skilled employee for better performance. 69
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  71. 71. Finding1-Mazority of customers here is female.2- Majority of customers are young.3-Majority customers like to purchase all goods from Reliance fresh.4- Customers like one stops shopping.5-Local market till today is the first choice of customer.6-Advertisement is the biggest way to attracting the customer.7-Promotion scheme not so easy to under stand for customer.8-Most of customer is not fully satisfied with store.9-Tele phone is the best way for attracting the customer.10 Shortages of skilled workers. 71
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  73. 73. Limitations The project has some limitations because it is totally basedon efforts of individuals. Peoples may be careless and may notgive correct answer to the questions, because of so many reasons.  It is totally based on personal efforts of individuals.  Some of the consumers are unable to understand the questionnaire.  Language is one of the worst problem, some of the consumers are unable to understand English.  Some consumers are not interested in filling questionnaire. 73
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  75. 75. Suggestion1- More promotion scheme should be used to penetrate the market.2- Skilled employees should be higher because mostly customers are young.3- Promotion scheme should in such way that customer can understand easily.4- Service of store should be providing in such way which full the need of the customer. 75
  76. 76. Appendix Reliance Fresh QuestionnaireNAME-GENDER-AGE - Monthly income-1- How offer do you shop Daily ( ) week ( ) fortnightly ( ) once in month ( )2- What do you mostly shop for at mentioned store Vegetables ( ) Grocery ( ) cosmetic product ( )3- Which store do you shop? Reliance Fresh ( ) Big apple ( ) other ( ) Local market4- Preference of shopping Quality ( ) Brand ( ) Price ( ) one stop shop5- Do advertisement and promotion influence your shopping decision Yes ( ) No ( )6- Are Promotion scheme easy to understand Yes ( ) NO ( ) some time ( ) 76
  77. 77. 7- How likely are you to recommend Reliance Fresh to a friend orrelative? Would you say the chances are? Excellent ( ) Good ( ) Fair ( ) Poor ( )8- Are the Price of Reliance fresh is lower than the other competitor Yes ( ) No ( ) Equal ( ) no idea ( )9- Which form of advertisement do you think is most effective? Print ( ) TV ( ) Radio ( )10- Did you get help from CSA when asked? Yes ( ) No ( ) some time ( ) Never ( ) 77
  78. 78. ReferencesReferred books-Marketing Research – PaneerselvamResearch Methodology – C.R KothariPrinciples of Marketing – Philip KotlerReferred site-  www.ril.com  www.google.com  www.wickipedia.com 78

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