SUMMER INTERNSHIP PROJECT

ON

AN ANALYSIS OF CUSTOMER LOYALTY AT RELIANCE

FRESH RETAIL FORMAT, SAHAKAR NAGAR.

1

PRESENTATION BY,

Shamanth R.

MBAL 3018

Sr.MBA(ABM)

2

Flow of presentation

Introduction

Objectives of the study

Hypothesis of the study

Methodology

Major findings of the study

Conclusion

References

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

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

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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

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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.

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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.

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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.

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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

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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

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Table 1.1. Findings on customer loyalty towards Reliance fresh store, Sahakar Nagar

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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 1000

5

10

15

20

25

30

35

40

Less than a

year

1-2 years 2-4 years 4 years or

more

Length of time that the customers

patronising Reliance Fresh

Per cent

2. How often do you shop at this store ?

To determine the frequency of customers visiting Reliance Fresh

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Category Number

(N) = 50

Per cent

Daily 8 16

Weekly 19 38

Fortnightly 9 18

Once a month 14 28 0

5

10

15

20

25

30

35

40

Daily Weekly Fortnightly Once a

month

Frequency of visits to Reliance Fresh

Per cent

3.What do you mainly prefer for shopping at this store?

To determine the customer’s preference in buying at Reliance Fresh.

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Category N=50 Per cent

Quality 23 46

Service 15 30

Price 7 14

One stop shop 5 10

0

5

10

15

20

25

30

35

40

45

50

Quality Service Price One stop

shop

Preference for shopping at Reliance fresh

Per cent

4.Reliance Fresh sets the standard for excellence in the retail industry.

To determine what customers think about Reliance Fresh on the whole.

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Category N=50 Per cent

Completely agree 9 18

Agree 28 56

Neutral 5 10

Disagree 8 16

0

10

20

30

40

50

60

Completely

agree

Agree Neutral Disagree

Level of agreement regarding setting the

standard for excellence

Per cent

5.What does the phrase ‘Customer Loyalty’ mean to you?

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Category N=50 Per cent

Repeated visits 21 42

Exceeded expectations 16 32

Word of mouth 5 10

My place of purchase 8 16 0

5

10

15

20

25

30

35

40

45

Repeated

visits

Exceeded

expectations

Word of

mouth

My place of

purchase

Customer interpretation of customer loyalty

Per cent

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

1.Customer’s Awareness and owning of Relianceone membership card.

17

0

10

20

30

40

50

60

70

80

Aware of Relianceone membership card own a loyalty membership card

Relianceone membership card

per cent

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

0

5

10

15

20

25

30

35

40

45

50

Not attracted by

the promotion

and sales

Already lost, no

need to

re-apply a new

one

Unwilling to

carry the card

Reasons for not using the loyalty card

Per cent

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

0

5

10

15

20

25

30

35

40

45

50

Yes, I would No, I don’t think

so

I am not

attracted by

cards

Purchase frequency due to loyalty card

Percent

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

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

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.

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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

BIBLIOGRAPHY

Data from Reliancefresh store, Sahakar Nagar .

Books Referred:

KOTLER PHILIP, 2006,” Marketing Management”, New Delhi, Pearson Education Inc,.

S.A. SHERLEKAR, “Marketing Management”.

DEEPAK CHAWLA, NEENA SONDHI ,”Business Research Methodology.”

Websites:

http://www.business-standard.com/

http://www.thehindubusinessline.in/

http://www.ril.com/html/business/business_retail.html

http://agmarknet.nic.in/research_studies.htm

http://www.bis.org.in/

http://www.reliancefresh.info/

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THANK YOU