1. SUMMER INTERNSHIP PROJECT
ON
AN ANALYSIS OF CUSTOMER LOYALTY AT RELIANCE
FRESH RETAIL FORMAT, SAHAKAR NAGAR.
PRESENTATION BY,
Shamanth R.
MBAL 3018
Sr.MBA(ABM)
1
2. 2
Flow of presentation
Introduction
Objectives of the study
Hypothesis of the study
Methodology
Major findings of the study
Conclusion
References
3. Introduction
With an idea to produce inclusive prosperity and growth for farmers, consumers, small
shopkeepers and vendor partners, Reliance Retail was set up in order to lead the foray
of Reliance Group into an organized retail.
Reliance is gearing up to revolutionize the retailing industry in India by ensuring better
returns to Indian farmers and manufacturers and greater value for the Indian
consumer, both in quality and quantity, is an integral feature of the company.
Marketer have regarded “Customer” as the king and evolved all activities to satisfy
him or her and so, this concept is gaining more momentum and importance today.
Today, the entire firm is engaged in a process of creating a lifetime value and
relationship with customers. The company image is built and made known by its
customers. Thus, the success of the firm is determined by how effective it has been in
meeting the diverse customer need and wants by treating each customer as unique and
offering products and services to suit his or her need.
3
4. Objectives of Reliance Retail Ltd:
To provide high quality products to its customers.
To reduce spoilage through its state of-the-art supply chain &
logistic networks.
To enrich customer’s shopping experience through customized
offer, private labels & ‘value for money’ merchandise.
To foster relationship with partners that will create new avenues
of value enhancement for customers.
To ensures fair & timely payments to farmers
4
5. Objectives of the study
To analyze loyalty of the customers towards Reliance Fresh.
To assess the awareness about Relianceone membership card among the
customers.
To study the sales promotion strategies followed in Reliance Fresh store
5
6. Hypothesis of the study
Customer loyalty towards reliance fresh will give the
advantage of decreased cost of advertising.
Reliance one membership card will enhance the amount of
purchase from reliance fresh.
Sales promotion strategies will increase the consumer
preference towards purchase of different categories of
products from reliance fresh.
6
7. Scope of the study
The study will provide the attributes influencing the customers in
purchasing at Reliance fresh store, Sahakar Nagar and their
awareness on Reliance one membership card has also been
studied.
Study on sales promotion strategies helps in bringing the new
business plans, improving the product range and introducing new
products in order to fascinate the customers towards the reliance
fresh from the competitive retail outlets.
7
8. Methodology
Data Sources: The study is been conducted by using the both primary and
secondary data.
The primary data: Data collection is from the responses obtained by
interacting and interviewing customers through questionnaire.
Secondary data: Information about the reliance fresh is collected through
various e-journals, magazines & also from various websites.
Sampling size: A sample of 50 customers were selected who visited reliance
fresh store.
Statistical tools: The simple tabular analysis has been used to analyze the
customer loyalty and awareness about loyalty card.
Data representation tools: Column chart and Pie chart are used for
representation of the data.
8
9. Results and discussions
This highlights the important research findings in the following headings
1.1 Loyalty of the customers towards Reliance Fresh
1.2 The awareness about Relianceone membership card among the customers.
1.3 Sales promotion strategies
9
10. 1.1 Loyalty of the customers towards Reliance Fresh
Loyalty:
The degree to which customers are predisposed to stay with one company and it is
“the willingness of an individual to make an investment or personal sacrifice in
order to strengthen a relationship”.
Attributes of customer Loyalty:
1.Service
2.Quality
3.Innovation
4.Diversification into similar product lines
5.Strong distribution chains
6.Reinforce the decisions
10
11. Table 1.1. Findings on customer loyalty towards Reliance fresh store, Sahakar Nagar
11
It is to determine how long each participant has been purchasing at Reliance Fresh
1. How long have you been a customer of Reliance Fresh?
Category Number
(N = 50)
Per cent
Less than a year 11 22
1-2 years 12 24
2-4 years 18 36
4 years or more 9 18
Total 50 100
40
35
30
25
20
15
10
5
0
Length of time that the customers
Less than a
year
patronising Reliance Fresh
1-2 years 2-4 years 4 years or
more
Per cent
12. 2. How often do you shop at this store ?
To determine the frequency of customers visiting Reliance Fresh
12
Category Number
(N) = 50
Per cent
Daily 8 16
Weekly 19 38
Fortnightly 9 18
40
35
30
25
20
15
10
5
Once a month 14 28 0
Frequency of visits to Reliance Fresh
Daily Weekly Fortnightly Once a
month
Per cent
13. 3.What do you mainly prefer for shopping at this store?
To determine the customer’s preference in buying at Reliance Fresh.
13
Category N=50 Per cent
Quality 23 46
Service 15 30
Price 7 14
One stop shop 5 10
50
45
40
35
30
25
20
15
10
5
0
Preference for shopping at Reliance fresh
Quality Service Price One stop
shop
Per cent
14. 4.Reliance Fresh sets the standard for excellence in the retail industry.
To determine what customers think about Reliance Fresh on the whole.
14
Category N=50 Per cent
Completely agree 9 18
Agree 28 56
Neutral 5 10
Disagree 8 16
60
50
40
30
20
10
0
Level of agreement regarding setting the
Completely
agree
standard for excellence
Agree Neutral Disagree
Per cent
15. 5.What does the phrase ‘Customer Loyalty’ mean to you?
15
Category N=50 Per cent
Repeated visits 21 42
Exceeded expectations 16 32
Word of mouth 5 10
45
40
35
30
25
20
15
10
5
My place of purchase 8 16 0
Customer interpretation of customer loyalty
Repeated
visits
Exceeded
expectations
Word of
mouth
My place of
purchase
Per cent
16. 1.2 The awareness about Relianceone membership card among the customers.
Loyalty Membership is a program devised by Reliance Industries Limited for
Reliance Fresh to retain the customers visiting their stores
It is a program by which Reliance Fresh store issues a Loyalty Membership Card
to its customers to encourage them to shop at the store regularly.
Each time they buy something they collect points which will allow them to redeem
cash vouchers to shop at store in future.
On an average every Reliance Fresh is issuing 80-120 loyalty cards per day.
The ratio of customers using this card floats between 50 to 60 per cent.
16
17. 1.Customer’s Awareness and owning of Relianceone membership card.
17
80
70
60
50
40
30
20
10
0
Relianceone membership card
Aware of Relianceone membership card own a loyalty membership card
per cent
18. 2. Reasons for not using the card
Category N=50 Per cent
Not attracted by the
promotion and sales
23 46
Already lost, no need
to re-apply a new one
17 34
Unwilling to carry
the card
10 20
18
50
45
40
35
30
25
20
15
10
5
0
Reasons for not using the loyalty card
Not attracted by
the promotion
and sales
Already lost, no
need to
re-apply a new
one
Unwilling to
carry the card
Per cent
19. 3.If you have the loyalty card, is there any chance to increase your purchase frequency?
Category N=50 Per cent
Yes, I would 11 22
No, I don’t think
so
23 46
I am not
attracted by
cards
16 32
19
50
45
40
35
30
25
20
15
10
5
0
Purchase frequency due to loyalty card
Yes, I would No, I don’t think
so
I am not
attracted by
cards
Percent
20. 1.3 Sales promotions
Sales promotion is an important concept from the point of product
disbursement and attracting the consumers.
The major sales promotions adopted by reliancefresh are as follows :
Rebate:
It is one of the important sales promotion activity used to clear the
excess stock in the store where the products has been sold at reduced
prices. For example, giving a rebate on purchase of 3 kgs of tomato to
the tune of Rs 15/- for a limited period of time.
Discount:
In this method, the customers are offered products on less than the listed
price.
Refunds:
Under this method, some part of the price of an article is refunded to the
customer on showing proof of purchase. 20
21. Product Combination:
Along with the main product some other product is offered to the customer as a
gift.
Quantity Gift:
Some extra quantity of the main product is passed on as a gift to the customers.
For example, 25% extra toothpaste in a packet of 200 gm tooth paste.
Usable Benefits:
Coupons are distributed among the customers on behalf of the producer.
Coupon is a kind of certificate telling that the product mentioned therein can be
obtained at special discount. Thereby, if customers have a coupon of some
product they will get the discount mentioned therein whenever they buy it.
Possession of a coupon motivates them to buy the product, even when they
have no need of it.
21
22. Major findings of the study
Reliancefresh at Sahakara Nagar is attracting its customers by providing diversified
products with reasonable price and high quality and it is also rendering good customer
services which in turn is contributing to enhance customer’s loyalty towards the store.
Recommendations :
More promotion schemes should be used in order to retain in the market.
Promotion schemes should be in such a way that it is easily understood by customers.
Services that are provided should be in such a way that it fulfills the needs of the
customer appropriately.
22
23. Conclusion:
The Reliancefresh at Sahakar Nagar is located at strategic place
and attracts the consumers of all class groups.
Sales promotion and marketing strategies are always being
introduced and revised in order to meet the change in purchasing
pattern of its customers.
Attributes such as quality, price, wide product range, display of
product etc., have created the added advantage towards enhancing
loyalty among customers towards reliancefresh.
However there is still further scope for reliancefresh to gain
major market share in the retail business when compared to other
competing retail outlets. 23
