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PROJECT REPORT

On

STUDY OF CONSUMER BUYING BEHAVIOR WITHSPECIAL REFERENCE TO RELIANCE FRESH

A Report Submitted In Partial Fulfilment of the Requirements

For The Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Collaborative program of M.S.Ramaiah Management Institute

with PRIST university

BY

SHILPA BOHARPI

REG.NO:- CM2091860126

Under the guidance of

Dr. ASIM BANDYOPADHYAY

PRIST UNIVERSITY


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Vallam, Thanjavur2010

STUDENTS DECLARATION

I hereby declare that the Project Report conducted atRELIANCE FRESH, BANGALORE

Under the guidance ofDr. ASIM BANDYOPADHYAY

Submitted in Partial fulfilment of the requirements for theDegree of

MASTER OF BUSINESS ADMINISTRATIONCollaborative program with PRIST University

TO

M.S.RAMAIAH MANAGEMENT INSTITUTE

It is my original work and the same has not been submitted for the award of anyother Degree/Diploma/Fellowship or other similar titles or prizes.

Place: Bangalore STUDENT NAME SHILPA BOHARPI

Date: Reg. No - CM2091860126


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Name: Dr. ASIM BANDYOPADHYAY

Qualifications:

ACKNOWLEDGEMENT

I extend my special gratitude to our beloved director Shri. ANANDARAM,

Our DEAN& ourCo-coordinator for inspiring me to take up this project.

I wish to acknowledge my sincere gratitude and indebtedness to my project

guide Dr. ASIM BANDYOPADHYAYofM.S. RAMAIAH

MANAGEMENT INSTITUTE Bangalore for his valuable guidance and

constructive suggestions in the preparation of project report.

STUDENT NAME -

SHILPA BOHARPI


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CONTENTS OF PART A

S. NO. TITLE PAGE NO.

I

Sectoral Analysis of Retail Industry

Retail Industry in India 8Scope of Retail sector in India 9Growth factors 10Employment generation 11Challenges facing 12

II About the CompanyCompany profile 14Reliance Fresh 16


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Aspects of the company 20Corporate Social Responsibility 27

III Organisational Hierarchy 28IV Customers of Reliance Fresh 29V Competitors

More 30Big Bazar 31Spencers 32

VI SWOT Analysis 33

CONTENTS OF PART B

S. NO. TITLE PAGE NO.I Research Design

Title of the research topic 37Statement of the problem 37Research Objective 37Research Methodology 38Sample Size 38Data Collection 38


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Statistical Tools used for analysis 39Sampling Technique 39Limitations of the study 39

II Analysis and Interpretation of the data 40III Findings and Conclusions 53IV Recommendations And Suggestions 54V Appendices 55VI Bibliography 58

PART -A


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ORGANISATIONAL STUDY

I. SECTORAL ANALYSIS OF RETAIL INDUSTRY

RETAIL INDUSTRY IN INDIA

Retailing is the interface between the producer and the individual consumer buying for personal

consumption. This excludes direct interface between the manufacturer and institutional buyers

such as the government and other bulk customers. A retailer is one who stocks the producers

goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As

such, retailing is the last link that connects the individual consumer with the manufacturing and

distribution chain. The retail industry in India is of late often being hailed as one of the sunrise

sectors in the economy. AT Kearney, the well-known international management consultancy,

recently identified India as the second most attractive retail destination globally from among

thirty emergent markets. It has made India the cause of a good deal of excitement and the

cynosure of many foreign eyes. With a contribution of 14% to the national GDP and employing

7% of the total workforce (only agriculture employs more) in the country, the retail industry is

definitely one of the pillars of the Indian economy.

An industry which has good representation in Fortune 500 companies list, an industry which is

the largest employer just after agriculture.

Indian retail industry is the largest industry in India, with an employment of around 8% and

contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%

yearly being driven by strong income growth, changing lifestyles, and favourable demographic


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patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200

billion. India retail industry is one of the fastest growing industries.

Key Players in this sector are as follows:

Future Group.

Vishal Retail Ltd.

Shoppers Stop Ltd

Big Bazar

Spencers

More

Scope of Retail Sector in India

The scope of the Indian retail market is immense for this sector is poised for the highest growth

in the next 5 years. The organized retailing sector in India is only 3% and is expected to rise to

30 - 35% by the year 2012. There are under construction at present around 325 departmental

stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for

growth in the Indian retail market. The growth of scope in the Indian retail market is mainly due

to the change in the consumers behaviour. For the new generation have preference towards

luxury commodities which have been due to the strong increase in income, changing lifestyle,

and demographic patterns which are favourable. The scope of the Indian retail market is very

vast. And for it to reach its full potential the government and the Indian retailers will have to

make a determined effort.

Retail market in the organized sector in India is growing can be seen from the fact that 1500

supermarkets, 325 departmental stores, and 300 new malls are being built. Many Indian

companies are entering the Indian retail market which is giving Indian organized retail market a

boost. One such company is the Reliance Industries Limited. It plans to invest US$ 6 billion in

the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets.


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Pantaloons are another Indian company which plans to increase its retail space to 30 million

square feet with an investment of US$ 1 billion.

Bharti Telecoms an Indian company is in talks with Tesco a global giant for a 750 million joint

venture. A number of global retail giants such as Wal-Mart, Carrefour, and Metro AG are also

planning to set up shop in India. Indian organized retail market will definitely grow as a result of

all this investments.

The scope of the Indian retail market has been seen by many retail giants and that the reason that

many new players are entering the India retail industry. Judging the scope for growth in the

India retail industry many global retail giants are also entering the Indian retail market.

They are:

Tesco

Metro AG

Wal- Mart

The scope for growth in the Indian retail market is seen mainly in the following cities:

Mumbai

Delhi

Pune

Ahmedabad

Bangalore

Hyderabad

Kolkata

Growth Factors in Indian Organized Retail sector

Rise in the working population which is young, pay- packets which are hefty, more nuclear

families in urban areas, rise in the number of women working, more disposable income and


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customer aspiration, western influences and growth in expenditure for luxury items. All these are

the factors for the growth in Indian organized retail sector.

In fact, Indian retail industry is the fastest growing industry in India and it accounts for 10% of

the country's GDP. In 2009, the retail industry in India amounted to US$ 200 billion and out of

this the organized retail sector in India amounted to US$ 6.4 billion. By 2012, the Indian

organized retail sector is expected to rise to US$ 25 billion. In 2003, the Indian organized

retailing sector accounted for more than 4.5 million sq. ft of space absorption by

malls. Pantaloons have decided to increase its retail space to 30 million square feet with an

investment of US$ 1 billion. Reliance Industries Limited is targeting for annual sales of US$ 25

billion by 2011. It is planning to invest US$ 6 billion in order to open 1,500 supermarkets and

1000 hypermarkets. Bharti Telecoms is planning a joint venture with Telco a global retail giant

worth 750 million.

EMPLOYMENT GENERATION BY INDIAN ORGANIZED RETAIL SECTOR

India is going through a radical economic change. Though it is very infant stage, people can feel

the climate is changing. The unorganized retailers take the lion's share in the Indian retail sector,

but the organized retailers are growing at a good pace, and promises an increase of proportion of

9 - 10% by 2011. This is to be the largest sector after the agricultural sector.

The increase in the number of consumers twinned with the introduction of organized sector has

brought numerous corporate investments in retail sector. The entry of super markets, enormous

departmental stores, and shopping malls has encouraged the retailers to look at new business

plans of expansion. An economic growth on a monumental scale is offered by the Indian retail

sector, equally in the national and international market which in turn will generate a huge source

of employment and a variety of options for the consumers.

The present employment in the retail business is nearly 4 crores and around 20 crores depends on

this sector. There is a scope of better exposure to the international standards with the entry of


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transnational companies, which in turn is encouraging more & more retail management programs

to open up and help bridging the gap of supply & demand of talented professionals for

management.

An economic growth on a monumental scale is offered by the Indian retail sector, equally in the

national and international market which in turn will generate a huge source

of employment and a variety of options for the consumers. The Ernst & Young's report 'The

Great Indian Retail Story', anticipates that the Indian retail sector would come up with 2

million employment opportunities within the year 2010.

Benefits to the economic growth:-

Better quality products and services would lead to better competition.

More exports bring more foreign direct investments and foreign exchange.

Organized Indian retail sector would encourage tourism.

Along with the employment boom there would be a vast development in the

expertise of the human resource.

There would remain future scope for improvements in agriculture, small, and medium scaled

industry.

Challenges facing the Indian Organized Retail sector


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The challenges facing the Indian organized retail sector are various and these are stopping

the Indian retail industry from reaching its full potential. The behaviour pattern of the Indian

consumer has undergone a major change. This has happened for the Indian consumer is earning

more now, western influences, women working force is increasing, desire for luxury items and

better quality. He now wants to eat, shop, and get entertained under the same roof. All these have

lead the Indian organized retail sector to give more in order to satisfy the Indian customer.

The biggest challenge facing the Indian organized retail sector is the lack of retail space. With

real estate prices escalating due to increase in demand from the Indian organized retail sector, it

is posing a challenge to its growth. With Indian retailers having to shell out more for retail space

it is affecting their overall profitability in retail. Trained manpower shortage is a challenge

facing the organized retail sector in India. The Indian retailers have difficulty in finding trained

person and also have to pay more in order to retain them. This again brings down the Indian

retailers profit levels. The Indian government has allowed 51% foreign direct investment (FDI)

in the India retail sector to one brand shops only. This has made the entry of global retail giants

to organized retail sector in India difficult. This is a challenge being faced by the Indian

organized retail sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are

entering the organized retail sector in India indirectly through franchisee agreement and cash and

carry wholesale trading. Many Indian companies are also

entering the Indian organized retail sector like Reliance Industries Limited, Pantaloons, and

Bharti Telecoms. But they are facing stiff competition from these global retail giants. As a result

discounting is becoming an accepted practice. This too brings down the profit of the Indian

retailers.


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II ABOUT THE RELIANCE FRESH

COMPANY PROFILE

RELIANCE

Growth has no limit at Reliance. I keep revising my vision. Only when you can

dream it, you can do it.


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Dhirubhai H. Ambani

Founder Chairman Reliance Group

December 28,1932July 06, 2002

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest business

house. The Group's activities span exploration and production of oil and gas, refining and

marketing, petrochemicals, textiles, financial services and insurance, power, telecom and

infocom initiatives. The Group exports its products to more than 100 countries the world over.

Reliance Group revenue is equivalent to about 3.5% of India's GDP. The Group contributes

nearly 10% of the country's indirect tax revenues and over 6% of India's exports.

The Reliance Group Companies, acknowledged as one of the best-run companies in the world,

include: Reliance Industries Limited, Reliance Capital Limited, Reliance Industrial Infrastructure

Limited, Reliance Telecom Limited, Reliance Infocom Limited, Reliance General Insurance

Company Limited, Indian Petrochemicals Corporation Ltd. and Reliance Energy Limited. Thecompanys refinery at Jamnagar accounts for over 25% of India's total refining capacity and their

plant at Hazira is the biggest chemical complex in India.

The Reliance Group was founded by the legendary Dhirubhai H. Ambani. He has been one

among the select Forbes billionaires and has also figured in the Sunday Times list of top 50


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businessmen in Asia. In 1975, the company expanded into textiles. Dhirubhai Ambani

introduced equity cult in India when Reliance went public with IPO in 1977. Since the launch of

its IPO RIL has expanded rapidly and integrated backwards into other industry sectors, most

notably the production of petrochemicals and the refining of crude oil. Dhirubhai led the

evolution as a global leader in the materials and energy value chain businesses. Today, Reliance

Group's activities range from exploration and production of oil and gas, petroleum refining and

marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals) to textiles and

retail. Reliance enjoys global leadership in its businesses. It is the largest polyester yarn and fibre

producer in the world and among the top five to ten producers in the world in major

petrochemical products. Presently, Reliance Group has more than 25,000 employees on its rolls

and exports products in excess of US$ 15 billion to more than 100 countries in the world.

Reliance fresh

MUKESH AMBANI


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RELIANCE FRESH

AAPKA FRESH AAPKE PADOS MEIN

BACKGROUND

We can see many examples of businesses where, first we grow and then think of expanding but

Reliance is quite different. Reliance has developed such huge amount of resources and capital

over the years that whenever it steps into any segment it is not required to wait for growing

signal, thats why it always thinks of expanding without any boundaries. Reliance retail is next

Step by RIL which will be a pan India project. Reliance Fresh is the retail chain division of

Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this

segment by opening new retail stores into almost every metropolitan and regional area of India.

Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to

begin retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is

RILs Rs 25,000 crore venture and it plans to add more stores across different segments, and

eventually have a pan-India footprint by year 2011. The super marts will sell fresh fruits and

vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate

enclosure and supply-chain for non-vegetarian products. Besides, the stores would provide direct

employment to 5 lakhs young Indians and indirect job opportunities to a million people,

according to the company. The company also has plans to train students and housewives in

customer care and quality services for part-time jobs. The company is planning on opening new

stores with store-size varying from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and

vegetables, staples, FMCG products and dairy products. Each store is said to be within a radius

of 1-2 km of each other, in relation to the concept of a neighbour store. However, this is only the

entry roll-out that the company has planned. Bangalore is said to have 48 stores in all by the end

of the year.

In a dramatic change due circumstances prevailing in UP, West Bengal and Orissa, It was

mentioned recently in News Dailies that, Reliance Retail is moving out stocking. Reliance Retail

has decided to minimize its exposure in the fruit and vegetable business.


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The company may not stock fruit and vegetables in some states, Orissa being one of them.

Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided

not to compete with local vendors partly due to political reasons, and partly due to its inability tocreate a robust supply chain. This is quite different from what the firm had originally planned.

When the first Reliance Fresh store opened in Hyderabad, not only did the company said the

stores main focus would be fresh produce like fruits and vegetables at a much lower price, but

also spoke at length about its farm-to-fork theory. The idea the company spoke about was to

source from farmers and sell directly to the consumer removing middlemen out of the way.

A typical Reliance Fresh store is approximately 3000-4000 square Feet and caters to a catchment

area of 1-2 km.

With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small

shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to

lead Reliance Groups foray into organized retail.

RRL launched its first store in November 2006 through its convenience store format Reliance

Fresh.

During the year, RRL also focused on building strong relationships in the agri-business value

chain and has commenced marketing fruits, vegetables and staples that the company sources

directly to wholesalers and institutional customers. RRL provides its customers with high quality

produce that has better shelf life and more consistent quality than was available earlier.

Through the year, RRL also expanded its supply chain infrastructure. The Company is fully

geared to meet the requirements of its rapidly growing store network in an efficient manner.

Recognizing that strategic alliances are going to be a key driver to its retail business, RRL

established key joint ventures with international partners in apparel, optical and office products

businesses. Further, RRL will continue to seek synergistic opportunities with other international

players as well.

When the store was launched it had some initial problems Post launch, in a dramatic shift in its

positioning and mainly due to the circumstances prevailing in UP, West Bengal and Orissa, it

was mentioned recently in news Dailies that, Reliance Retail is moving out of stocking fruits and


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vegetables. Reliance Retail has decided to minimize its exposure in the fruit and vegetable

business and position Reliance Fresh as a pure play super market focusing on categories like

food, FMCG, home, consumer durables, IT and wellness, with food accounting for the bulk of

the business.

When the first Reliance Fresh store opened in Hyderabad in 2006, not only did the company said

the stores main focus would be fresh produce like fruits and vegetables at a much lower price,

but also spoke at length about its farm-to-fork theory. The idea the company spoke about was

to source from farmers and sell directly to the consumer removing middlemen out of the way.

Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance

Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various formats that

Reliance has rolled out.

In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of

Apple Specialty Stores branded as iStore, starting with Bangalore.


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ASPECTS OF THE COMPANY

FARM TO FORK

The Reliance retail company sources say it is setting aside Rs 50,000 crore to build its farm-to-

fork linkage. Reliance has drawn up plans for a presence in 784 towns and 6,000 mandi

(wholesale market) towns with 1,600 rural business hubs to service these. It has already rolled

out 177 Reliance Fresh stores across major towns in 11 states. According to a company report,

RIL is targeting a turnover of Rs 40,000 crore in the next few years.


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After Future Group, Reliance Retail plans to

introduce private label sale to kirana stores

Reliance Retail is understood to be exploring ways to supply its private labels in food and

groceries to kirana stores and small retailers in the country. A separate entity, most likely to be

named Reliance Foods, will carry out the private label business. Reliance Fresh head Gunender

Kapur was made head of private labels business in the company. Once, they entirely cater to the


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demands of their stores, and then they can certainly look at supplying them to other retailers

since they have required infrastructure, process and systems in place.

It is said that after launching private labels in food and groceries, Reliance Retail is also

expected to launch soaps, detergents, cosmetics and non-FMCG products under its private labels

segment with a new brand name. The companys flagship chain Reliance Fresh sells staples and

food items under Reliance Select and Reliance Value brands, dairy products under Dairy Pure

brand.

Kishore Biyani Future Group, too, also have plans to sell its private labels to stores outside the

group and it has already carried out pilot studies for this venture and is expected to start the

business soon. Future Logistics, the logistics arm of the group, also has plans to foray into

wholesale distribution of products such as food, apparel, grocery to organized retail chains in the

country, which is expected to start from this month.

Nearly 2 years ago, Reliance Industries announced an ambitious plan to invest Rs 25,000 crore to

expand its stores in the country to take the advantage of organized retail in the country. Initially,

the company was planning to open 2,000 stores by 2008, and 5,000 stores by 2010, but due to a

delay in delivery of properties, economic downturn and demand slump the company had to scale

back its expansion plans.

Reliance Retail runs over 850 stores, which include stores for food and grocery, consumer

durables, beauty and wellness, jewelry, footwear, among others. Its formats such as apparel chain

Reliance Trends, beauty and wellness format Reliance Wellness, consumer durable chain

Reliance Digital have private labels or are in the process of launching private labels.

The whole idea of private labels is based on pricing and retailers get enough volumes on their

shelf at marginal costing. Retailers have an opportunity to sell their private labels to kirana

stores. But it depends on their strategy on pricing and marketing right products is said by

Naimish Dave, director with OC & C Strategy Consultants.

Business consultancy Techno Park Purnendu Kumar says retailers can sell their products to

mom-and-pop stores only through their cash and carry ventures as reaching out to individual

stores would be tough preposition. Supplying to kiranawalas is a tedious job as you need to have

different points of sale, enough manpower and transport and delivery systems. But selling

products through cash and carry stores is a viable preposition, said Purnendu Kumar.


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Supply chain model of reliance fresh

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 operations for first few months.

The following figure depicts the reliance fresh model

MODEL 1


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MODEL 2

Whole Sale Trading (WST) Reliance formalized its second supply chain model to shift itself

from grocery retailer to grocery supplier by focusing and establishing itself in Mandis.

STEPS IN WST MODEL


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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.

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 30 Celsius, peeling and chopping


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vegetables, spinning them dry and then heaping them in small plastic packets before placing

them in plastic transport crates. At the other end of the 5,000-sq-m warehouse, men unload

crates of fruits from a truck pulled up to a spotless loading dock. A quality-control expert

samples every tenth crate; if the fruits are good a team will ready them for delivery within

hours to Reliance fresh stores around different places like U.P and as far away as Hyderabad

and even Mumbai (formerly Bombay). If they are not, workers will inspect the entire

shipment and discard anything below standard.

Merchandise from these collection processing centres are collected and loaded for Wholesale

mandis. 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 mandis.

MARGIN TIME. Time period between a truck reaching mandi and then Unloads.

Can be 2 to 3 hours.

From mandis where the trucks have been unloaded, roadside vendors and pull carters buyfruits and vegetables to supply in households.

In case still some vegetables and fruits are not sold reliance logistics own Transportation

send them to reliance fresh stores.


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Product range of reliance fresh

Vegetables and fruits: This is the specialty of the store as they provide fresh

fruits and vegetables at a rate lower than the market price.

Households Items: In the stores we can get items which are at slight premium

rate than market price, but usually of high quality.

Food and Beverages: This area of the product line they stock all the premier

brands and also their private label.

Groceries: In this sector reliance is promoting its private label as they are

promoting their own brands and they do the packaging of the product and then

label it privately and then sell it at premium as compared it to the loose items.

Dairy Products: The dairy products in some locations are procured from the

farmers themselves and some places they procure it from the manufacturers.

Refrigerated products: This product line is dominated by the brands available in

market and very less private labelling is done.

Non food items: Here we get many petty non food items at a premium than

market price.


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CORPORATE SOCIAL RESPONSIBILITY

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

who are focused to return this society, a part of what they have earned through this society.

Reliance retail is one of them. Following efforts of reliance retail are aimed at benefiting the

society making reliance socially responsible.

Reliance Retail aims at recruiting people from the underprivileged community in society.

Hence, they are planning to train students from corporation schools and schools run by

NGOs. And, they consider this as a part of the corporate social responsibility. The

company is planning to charge a "small fee" from those who want to join the course as

they want to bring in some discipline and regularity among the students, and will

reimburse that once they are inducted into service.

Farming in India is highly fragmented and subject to harsh climatic conditions once

harvested, it is very difficult to keep fruits and vegetables fresh. To secure high quality,

Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers

from villages through Collection Centers. With this concept, Reliance has built a business

model generating shared value that links the company supply chain more closely to poor

farmers in Indian villages. Reliance is providing a guaranteed market for the farmers

produce, reducing transaction costs and training the farmers in better and sustainable

farming practices. This initiative results in higher income and upgrading of skills for the

farmers, and reduced spoilage of produce (up to 35 percent) and better quality products f

or Reliance retail stores.

Reliance retail has adopted farm to fork theory which means it is procuring directly

from the farmers thus offering them quite reasonable prices for their produce as now no

intermediaries are involved. In return Reliance is giving farmers information about how

can farmers improve their productivity. They have centres in villages who apart from

providing information make farmers aware of market rates of different crops so that


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farmers can choose crops they want to sow to become profitable. Farmers are provided

technical help as well like information about quality of seeds and fertilizers.

III ORGANIZATIONAL HIERARCHY

IV CUSTOMERS

The target customers of Reliance Fresh is Middle and Lower Level income

group.

Higher level income group also come for fresh merchandise.


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Some customers prefer good quality of products and some prefer low price

of products.

Some foreign customers also visit Reliance Fresh.

Customers are aware about the products and their prices.

V COMPETITORS

MORE


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The MORE chain of supermarkets are bright and clean stores at convenient locations with

layouts that allow ease of navigation. The product display is well organised and it facilitates the

customer to choose the product easily. The stores have been designed by Fitch, the leading

international retail design firm.

The stores promise a range of benefits to consumers and are a solution to the many problems

faced by housewives while shopping for their daily needs. The retail offering from the Aditya

Birla Group, has been crafted after in-depth research of the needs and expectations of the Indian

consumers. MORE is the answer to the shopping needs of the Indian housewives who wants a

modern and convenient option in her neighbourhood with an attractive and consistent range of

products ,more assures consumers the security of knowing that they are paying the best price in

the market for good quality products.

BIG BAZAAR


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Big Bazar , is the chain of retail stores of the big banner Pantaloon Retail (India) Ltd., which in

turn is a segment of Kishore Biyani, regulated Future Group of Companies. Moreover the

customer friendly ambiance and the organized retailing of products also makes Big Bazar one of

the successful retail companies in India.

Big Bazar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of

good quality for all at affordable prices. Big Bazar with over 50 outlets in different parts of India,

is present in both the metro cities as well as in the small towns.

The significant features of Big Bazar: Shopping in the Big Bazar is a great experience as one can

find almost everything under the same roof.

The following are few of the sections at Big Bazar: 1. Books 2. Cameras 3. Computers &

Peripherals 4. Electronics 5. Gift Vouchers 6. Health and Fitness 7. Home & Kitchen 8.

Jewellery 9. Memory & Storage 10. Mobiles & Phones 11. Movies & Videos 12. Watches 13.

Womens wear 14. Mens wear 15. Childrens wear 16. Others.

SPENCERS


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Spencers Retail is Indias largest chain of supermarkets, offering food, apparel, appliances,

electronics, digital gadgets, home decor and accessories, books, and music. Established in 1996,

the retail chain has become a popular destination for shoppers in India with hypermarkets,

supermarkets, and groceries spread all over India.


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VI SWOT ANALYSIS

The Indian retail market accounted for $ 200 billions. Food accounts for over two-thirds of the

$200 billions Indian retail market. Yet it has seen less than 1% penetration by modern retail so

far. Reliance industries which always looking for new business opportunities just started a new

era with its introduction of new concepts stores named Reliance Fresh with the opening convince

store in high streets of Banjara Hills of Hyderabad. Reliance Fresh is very different from what

modern retail has offered in India so far and with this Reliance is planning to establish strong

retail network in India in food and Farm sector.

Lets do SWOT Analysis on the Reliance Fresh

STRENGTHS

Reliance is the first enter into this unorganized sector of vegetables and fruits. According to them

its intentions to have 100% farm fresh foods in their new retail stores. It is also adding shortly a

juice bar, and even a large counter for Puja flowers. In fact, over 60 per cent of the floor space

has been dedicated to fresh fruits and vegetables, the rest to other food products like staples,

spices, bakery etc. But reliance has decided not to add any bar soap or toothpaste and detergent

in its shelves. So by using this strategy they are positioning themselves different from other

players of the industries like Food world, Big Bazaar and Nilgiris. But overcome the short

comings of these specialized stores they are also introducing new Reliance full-fledged

supermarket called Shakhari Bhandar which offers each and everything from the staple to soap.

Most of the staples are under its own private label brandReliance Select.

Reason: private labels offer far better profit margin to the retailer than branded products of

FMCG companies.


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WEAKNESS

This is definitely an interesting business venture but it may miss out the opportunity to capture a

greater share of the customers wallet. For the customers also this could be hectic as they would

have to visit another store to pick up essentials. Reliance could easily overcome this problem by

adding a few small counters for some basic non-food products. According to their official this

format is not final one they are accepting the new changes which will attract the large number of

customers.

OPPORTUNITIES

Reliance wants to build a high-profitability business and food is perhaps the best venture to start.

That is because the Indian food supply chain is grossly inefficient. There are several

intermediaries, each of whom adds his own profit margin to the cost. Besides, there is huge

amount spent in transit. This offers potential for savings and profits. To reduce the cost and

increase the profit it has been sourcing out its requirements from the farmers. For example, the

leafy vegetables, brinjals, tomatoes and green chillies in the Banjara Hills outlet were sourced

directly from farmers in Vantimamdi, Chevella and nearby Mandals in Ranga Reddy district of

Andhra Pradesh. The supply chain already has been backed by few hundred farmers the number

is estimated to touch million in next five years. The main aim of the reliance is to eliminate the

intermediaries in the sector and reduce the cost. Smaller stores have two advantages- they bring

down the cost of real estate and increase profits- it is easier to find space for small convenience

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


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THREATS

This model is engineered to clock a faster turnover of inventory Reliance expects consumers

to visit the store at least twice a week for their top-up groceries. Each store will have an

investment of Rs 50 lakhs to Rs 60 lakhs. Unlike global retailers who operate on less margins,

Reliance Retail is looking at a fairly high-margin business model. Deliberately stopped short of

being a full-fledged supermarket rather, it has limited itself to a food and grocery convenience

store. They also have a threat from the existing supermarkets which provides all the services to

its customers. For Example, Food world and Nilgiris also provides food and beverages with otherpersonal care products. These convince are not existed in the present Reliance retail stores.


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PART B

Project report

I RESEARCH DESIGN


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TITLE OF THE RESEARCH TOPIC

Study of Consumer Buying Behaviour with special reference to Reliance Fresh,

Bangalore.

STATEMENT OF THE PROBLEM

Consumer behaviour has occupied a prominent place in todays business. It is very important to

study how the consumers behave in a particular situation and what might be the responsible

factors etc. In this context it is better to study the consumer behaviour towards retail industry

with special reference to reliance fresh industry.

RESEARCH OBJECTIVE

.

To know about the consumer awareness towards Reliance Fresh.

To study consumer buying behaviour of customers in Reliance Fresh Bangalore.


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RESEARCH METHODOLOGY

Research Problem

To make a comprehensive study of Reliance Fresh & know the buying behavior of

Reliance Fresh customers.

Type of Research

Descriptive type research has been used to complete the project. This research is

based on fact finding enquires and the variables are totally independent and

uncontrollable.

SAMPLE SIZE

100 respondents have been selected as sample size for research.

DATA COLLECTION

Primary Data

Primary data of research are collected from direct resources i.e customer of

Reliance fresh through a questionnaire.

Secondary Data

Secondary Data which are used for research to know the history and scope of

Retail industry are collected from already available resources like the net and other

sources.


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STATISTICAL TOOLS USED FOR ANALYSIS

Through Graphs, Pie-Charts, Tables etc.

SAMPLING TECHNIQUE

Random sampling is used for research project. I have given equal weightages to my all

respondent and chose them randomly without any bias like gender, age, income culture.

LIMITATIONS OF THE STUDY

The project has some limitations because it is totally based on efforts of individuals.

Peoples may be careless and may not give correct answer to the questions, because of so

many reasons.

It is totally based on personal efforts of individuals. Some of the consumers are unable to

understand the questionnaire.

Some consumers are not interested in filling the Questionnaire.


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II ANALYSIS AND INTERPRETATION OF DATA

ANALYSIS

Understanding the consumer buying behaviour in reliance fresh

DEFINITION

Purchase decision making pattern that is a complex amalgam of needs and desires and is

influenced by factors such as the consumers

Societal role (parent, spouse, worker etc.)

Social and cultural environment and norms.

Aspirations and inhibitions.

Buying Behaviour is in the advertising, marketing, sales and purchasing and Procurement

subjects.


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INTERPRETATION

Gender of the Consumer -

MALE FEMALE43 57

DATA COLLECTED

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

ANALYSIS

Data collected for project from 100 responded in which 57 are female and 43 are male of

total respondents.

INTERPRETATION

From the total respondent it analyses that most of the customers in this store is femaleand their demand always consider at the time of taking the decision. Company should try

to attract new male customer by provide new scheme to their customer.

Which age group do you belong?


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10-30 31-50 51 & above37 49 14

DATA COLLECTED

Data collected for this questionnaire to know the age of customer of Reliance Fresh.

ANALYSIS

Data collected for project from 100 responded in which 37 are the age between 10 30

and 49 are between age of 3150 and 14 are the age of 51 & above of total respondents.

INTERPRETATION

From the total respondents it analyses that most of the customers are youth. In my

observation it was found that mostly people believe in convenience shopping.

It helps the organisation to keep employees in such a way to understand the problem of

customer easily and rectify the problem effectively.

How do you come to know about Reliance Fresh?

Advertisement Friends Relatives Others45 35 15 5

DATA COLLECTED -


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Data collected for this questionnaire to know that how people come to know about

Reliance Fresh.

ANALYSIS

Data collected for project from 100 responded in which 45 customers said through

advertisement, 35 through friends and 15 and 5 through relatives and others respectively

of total respondents.

INTERPRETATION

It analyses that many customers came to know about Reliance Fresh through

advertisement (newspaper) because it is the best medium to reach the maximum

customers.

What is your perception about Reliance in general?

Excellent Good Fair Poor35 45 15 5

DATA COLLECTED

Data collected for this questionnaire to know the perception about Reliance in general.

ANALYSIS

Data collected for project from 100 responded in which 35 customers said that their

perception towards Reliance Fresh is excellent, 45 customers said that it is good and 15

and 5 said that it is fair and poor respectively of total respondents.

INTERPRETATION


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From my research it was analysed that most of the customers perception towards

Reliance Fresh is good and some said that it is excellent so they should bring some

innovative ideas and provide better services and products to the customers so that their

perception towards Reliance Fresh would be excellent.

How often do you shop in Reliance Fresh?

Daily Weekly Fortnightly Once in a Month10 45 20 25

DATA COLLECTED

Data collected for this questionnaire to know the shopping behaviour of customer of

Reliance Fresh.

ANALYSIS

Data collected for project from 100 responded in which 10 are like to purchase daily and

45 are purchase weekly and 20 are purchase fortnightly and 25 are like to purchase once

in a month of total respondent.

INTERPRETATION

From the total respondent it analysed that most of the customer are likely to purchase on

weekend. In my observation it was found that more scheme should be provided on

weekend.

What do you mostly shop at mentioned store?


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Fruits & Vegetables Grocery Food Items Non-Food Items48 25 17 10

DATA COLLECTED

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

the customer.

ANALYSIS

Data collected for project from 100 responded in which 48 customers are like to purchase

Fruits & Vegetables and 25 are like to purchase Grocery and 17 and 10 are like to

purchase Food Items and NonFood Items respectively.

INTERPRETATION

From the total respondent it was analysed that most of the customer are like to purchase

Fruits & Vegetables from the store. Company should try to retain the customer and

should increase the variety of nonfood items.

Preference of shopping?

Quality Brand Price One Stop Shop25 35 10 30


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DATA COLLECTED

Data collected from this questionnaire is to know the preference of shopping.

ANALYSIS

Data collected for project from 100 responded in which 30 customers are like to prefer

One Stop Shop, 25 customers are like to purchase quality product and 35 customers

believe in reliance brand and only 10 like to prefer price of the product.

INTERPRETATION

From the total respondents it was analysed that most of the customers are believe in

reliance brand like to purchase qualitative product in one stop shop. Here it was observed

that people want to purchase fresh and original product and want better service.

Which store do you keep in preference for purchasing?

Reliance Fresh Spencer Big Bazar More Super Market Others30 20 25 15 10

DATA COLLECTED

Data collected from this questionnaire to know the preference of the purchasing

(comparison of store to other).

ANALYSIS

Data collected for project from 100 responded in which 20 customers like to purchase

from Spencer, 25 prefer Big-Bazaar, 30 customers give preference to Reliance Fresh and

15 and 10 are like to purchase from More Super Market and Others respectively of total

respondent.


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INTERPRETATION

In my observation it was found till today organised retail sector didnt penetrate the

market. Company should try to open new convenience store and provide more scheme

and good service to customer to penetrate the market. Initial it may be costlier, but it will

give long term benefit.

9. Do advertisement and promotion influence your shopping decision?

Yes No65 35

DATA COLLECTED

Data collected from this questionnaire to know the effect of promotion scheme on

purchasing.

ANALYSIS

Data collected for project from 100 responded in which 65 customers are like promotion

scheme and 35 are those people which say promotion scheme doesnt effect on

purchasing.

INTERPRETATION

In my observation it was found that promotion scheme is must to sustain customer attract

customer and influence the purchasing.


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Which form of advertisement do you think is most effective?

Print / Newspaper Television Radio Telephone35

20

10

35

DATA COLLECTED

Data collected from this questionnaire to know the better advertisement mode of

promotion.

ANALYSIS

Data collected for project from 100 responded in which 20 customer say TV and 35 say

print or newspaper, 10 say radio and 35 customer are say telephone.

INTERPRETATION

According to respondents result company can choose either telephone or print or

newspaper as best for advertisement.

11.Did you get help from CSA (Customer Service Associates) / Staff when Asked?

Yes No Sometimes Never45 20 30 5


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DATA COLLECTED

Data collected from this questionnaire to know about CSA performance.

ANALYSIS

Data collected for project from 100 respondent in which 45 customer say yes and 20 say

no, 30 say sometimes and 5 say never.

INTERPRETATION

According to the respondent customers are not fully satisfied with the CSAs

performance, company should recruit some new skilled employee for better performance.

12. Any suggestions?

Maintain the hygiene.

More air conditioners should be there.

Rent outlet should be spacious.

Maintain the manpower for the better service to the customers.

Ambience should be more customers friendly.


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III FINDINGS AND CONCLUSIONS

Majority of customers here is female.

Majority of customers are young.

Majority of customers like to purchase Fruits and Vegetables from Reliance fresh.

Customers like Brands and one stop shopping.


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Reliance Fresh and Big Bazar are the first choices of customer.

Advertisement is the biggest way to attract the customer.

Promotion scheme is not so easy to understand for customer but advertisement is easy for

them to understand.

Most of customer is not fully satisfied with store.

Issuing Pamphlets is the best way for attracting the customer.

More and more skilled workers should be appointing for the better work.

IV RECOMMENDATIONS & SUGGESTIONS

More promotion scheme should be used to penetrate the market.

Skilled employees should be hired because mostly customers are young.


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

Service of store should be provided in such a way that to fulfil the needs of the customer.

V APPENDICES

QUESTIONNAIRE


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Name - .

Contact No. -

Gender of the Consumer?

Male ( )

Female ( )

Which age group do you belong?

1030 ( )

3140 ( )

4150 ( )

50 above ( )

How do you come to know about Reliance Fresh?

Advertisement ( )

Friends ( )

Relatives ( )

Others ( )

What is your perception about Reliance in general?

Excellent ( )

Good ( )


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Fair ( )

Poor ( )

How often do you shop in Reliance Fresh?

Daily ( )

Weekly ( )

Fortnightly ( )

Once in a Month ( )

What do you mostly shop at mentioned store? (You can tick more than one)

Fruits & Vegetables ( )

Grocery ( )

Food Items ( )

Non-Food Items ( )

Preference of shopping?

Quality ( )

Brand ( )

Price ( )

One Stop Shop ( )

Which store do you kept in preference for purchasing?

Reliance Fresh ( )

Spencer ( )

Big Bazaar ( )

More Super market ( )

Others ( )


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Do advertisement and promotion influence your shopping decision?

Yes ( )

No ( )

Which form of advertisement do you think is most effective?

Print / Newspaper ( )

Television ( )

Radio ( )

Telephone ( )

Did you get help from CSA (Customer Service Associates) / Staff when asked?

Yes ( )

No ( )

Sometimes ( )

Never ( )

Any Suggestions ?

.

.

Thanks for giving your precious time


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VI BIBLIOGRAPHY

www.google.com

www.reliancefresh.com
http://www.google.com/http://www.reliancefresh.com/http://www.reliancefresh.com/http://www.google.com/


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56157295 reliance fresh

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