Professional Documents
Culture Documents
In
Reliance Fresh
New Delhi
Project Report
Submitted To
SCHOOL OF MANAGEMENT SCIENCES
For The Award Of
Post Graduate Diploma in Management
Submitted By
Amit Kumar Gupta
(Roll No. : PG/08/05)
Submitted By
Amit Kumar Gupta
(Roll No. : PG/08/05)
Reliance fresh
Certificate
Executive Summary
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 first 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 and
domestic eyes. The entry of foreign and Indian retail
giants like Wal-Mart, Metro, Reliance, Birla, Tata etc.
made Indian market more competitive which is at cut
throat level. So how retailers can reach to their end
customers, to win the mind share and increase the
basket size of each shopping trip.
India 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
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 with revenue
expected in 2007 to amount US$ 320 billion and is
6
increasing at a rate of 5% yearly. A further increase of 78% is expected in the industry of retail in India by growth
in consumerism in urban areas, rising incomes, and a
steep rise in rural consumption. It has further been
predicted that the retailing industry in India will amount
to US$ 21.5 billion by 2010 from the current size of US$
7.5 billion.
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.
Reliance Retail is the retail chain division of reliance
industries of India which is headed by Mukesh Ambani.
Reliance has entered into this segment by opening new
retail stores into almost every metropolitan and regional
area of India. Reliance plans to invest rs 25000 crores in
the 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 g, and
eventually have a pan-India footprint by year 2011to the
company. .
AS The twentieth century has come to and we have
moved in to third millennium , we can see many
development and changes taking place around us with all
the industries and firms within each industry trying to
keep pace with all the industries and firm within each
industries trying to keep pace with the changes and
diverse need of people . Marketer have regarded
customer as the king and evolved all activities to
7
towards organised
retail
Declaration
I hereby declare that this summer project report titled
Buying Behaviour/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 the curriculum, for
the
fulfilments
of
POST
GRADUATE
DIPLOMA
IN
Date:
11
ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude to
the following personalities without whose help and
guidance the successful completion of my project work
would have been remained a dream.
I extend my heartfelt thanks to our HR Miss. SHIVANGALI
SINGH for the constant and valuable guidance by him
through out my course.
12
Contents
13
S.N.
INDEX
Certificate
Executive Summary
Declaration
Acknowledgement
CHAPTER- 1
1.1
1.2
1.3
1.4
1.5
1.6
CHAPTER-2
2.1
2.2
2.3
2.4
2.5
CHAPTER-3
CHAPTER-4
CHAPTER-5
CHAPTER-6
INTRODUCTION &BACKGROUND
Company Overview
Popular Profile
Supply Chain Model
SWOT Analysis
Corporate Social Responsibility
Major Player
RESEARCH METHODOLOGY
&DESIGN
Objective of Research
Type of Research
Source of data & Collection tool
Sampling
Sample size
ANALYSIS & INTERPRETATION
Meaning of consumer Buying Behaviour
Interpretation of collect data
RESEARCH FINDING
LIMITATION OF RESEARCH
SUGGESTION
APPENDIX
REFRENCES
PAGE
NO
4
5
9
11
14
21
27
30
33
35
38
41
41
42
42
44
49
69
71
73
75
77
14
RELIANCE
"Growth has no limit at Reliance. I keep revising my vision. Only
when you can dream it, you can do it."
15
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
RELIANCE GROUP
The Reliance Group, founded by Dhirubhai H. Ambani
(1932-2002), is India's largest private sector enterprise,
with businesses in the energy and materials value chain.
Group's annual revenues are in excess of USD 27 billion.
The flagship company, Reliance Industries Limited, is a
Fortune Global 500 company and is the largest private
sector company in India.
Backward vertical integration has been the cornerstone
of the evolution and growth of Reliance. Starting with
textiles in the late seventies, Reliance pursued a strategy
of backward vertical integration - in polyester, fibre
intermediates,
plastics,
petrochemicals,
petroleum
refining and oil and gas exploration and production - to
be fully integrated along the materials and energy value
chain.
17
RIL
Subsidiaries of
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
21
Management team
Name
Mr. Mukesh Ambani
Nikhil R Meshwani
Hital R Meshwani
Madhumita Mohanti
Akashay Lokhande
Designation
Chairman&Managing
Director
Executive Director
Executive Director
Deputy General Manager
Area
Manager-Operation
&Sales and NSO
22
Devandra Chawla
Zubin
Mangement
Vice-President-Business
Head, Merchandise Head
Nowrojee, State Head Category
RELIANCE fRESH
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
27
TRADI
TIONAL MODEL OF RETAIL RELIANCE FARM TO
FORK
FARMERS
CATEGOR
Y1
Fa
rm
ers
FARMERS
CATEGOR
Y2
Ow
nT
ran
s
po
r ta
tio
n
COLLECTIO
N
POINT/UNI
T
FARMERS
CATEGOR
Y3
rm
Fa
ers
n
Tra
n
Ow
n
atio
t
r
spo
RELIANCE OWN
LOGISTICS
RF
Re
w
eo
c
n
lia
RELIANCE
FRESH
OUTLETS
s
tic
s
i
og
nL
PROCESSIN
G
UNIT/POINT
RELIANCE
FRESH
OUTLETS
Re
lia
nc
e
RF
ow
n
Lo
gis
tic
s
RELIANCE
FRESH
OUTLETS
29
30
31
SWOT ANALYSIS
The Indian retail market accounted for $ 200 billions.
Food accounts for over two-thirds of the $200-billion
Indian retail market. Yet, it has seen less than 1 per cent
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 concept stores named Reliance
Fresh with 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. They
have started with new eleven stores in the last week and
they are thinking to add 100 more stores to their feather
by
the
end
of
this
year.
Lets do a SWOT analysis on the Reliance Fresh.
Strengths:
Reliance is the first into enter into this unorganized
sector of vegetables and fruits. According to them its
intentions to have100% 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
32
like Food world, Big Bazaar and Nilgiris. But over come
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 brand Reliance
Select. There is a 500g channa dal pack priced at Rs 28,
a 500g urad dal pack for Rs 39, all under Reliances own
brand. Excepting a few packets of Nestles Maggi, or
MTRs masalas or Pepsis Lays chips, there is very little
shelf space given to the big brand owners in the country.
Reason: private labels offer far better profit margin to
the retailer than branded products of FMCG companies.
Most of these outlets will need only 2,000-5,000 sq. ft. A
supermarket may need as much as 8,000-10,000 sq. ft.
Weakness:
This is definitely an interesting business venture but it
may miss out on the opportunity to capture a greater
share of the customers wallet. For customers, too, this
could be irksome, as they would have to visit another
store to pick up essentials. Reliance could easily fix 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 are required to 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
33
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 lakh 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 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 other
personal care products. These convince are not existed
in the present Reliance retail stores.
34
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 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 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
centers in villages who apart from providing information
make farmers aware of market rates of different crops so
that 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.
36
38
more
RPG Group:
40
Research Objective
42
Research Methodology
Research Problem
To make a comprehensive study of Reliance Fresh &know
the Buying behaviour & of Reliance Fresh customers.
43
Type of research
Descriptive type research has used to complete the
project. This research is base on fact finding enquires
and the variables are totally independent and
uncontrollable.
Data collection:
Primary Data
Primary data of research are collected from direct
resources (customer of Reliance fresh) through
questionnaire.
Secondary Data
Secondary Data which are used for research to know the
history scop of Retail industry are collected from already
available resources like net and other sources
Universe
Universe of this research is reliance fresh customer of
Delhi.
Sampling technique
44
Sample size
425 respondents has selected as sample size for
research.
45
Definition
Purchase decision making pattern that is a complex
amalgam of needs and desires, and is influenced by
46
economic
environment,
activities,
interests,
Behaviour
appears
in
these
other
term:
Mark
eting Other
Stim Stimuli
Buyer
s
Charac
Buyers
Decisio
Buyers
Decision
47
teristic
s
uli
Produ Econom
ct
ic
Price
Technol
ogical
Place Political
Promo
tion
Cultural
Cultural
Social
Persona
l
Psychol
ogical
n
Process
Problem
recogniti
on
Informat
ion
Search
Evaluati
on
Decision
Post
purchas
e
Behavio
ur
Product
choice
Brand
choice
Dealer
choice
Purchase
timing
Purchase
amount
Cultural
Social
Personal
48
culture
Referen
ce
Groups
Psycholo
gical
Cycle
Stage
Subcultur
e
Social
Class
Reference
Family
Roles
and
Statuse
s
groups
Motivation
Economic
Circumstan
ces
Life Style
Perception
Learning
Beliefs
and
Attitudes
BUYE
R
Personality
and
Self
Concept
can
have
potent
influence
on
on
consumer
behaviour,
considering
the
product.
But
their
purchase
decision
49
that
alternative
that
received
the
most
favourable evaluation.
A purchase process follows strong purchasing intentions.
This involves a series of selection, including the type of
retail outlet as well the specific brand on service to use.
The
consumers
purchase
then
leads
to
various
51
52
(1).
&
275
Male
&
Fem ale
ANALYSIS
Data collected for project from 425
responded
in which 275 are female which are 64.7% and 150 are
male which are 35.29% of total respondent
Age of customer
(2).
10-20
123
21-50
230
51&
above
72
250
200
150
100
50
0
10-20
21-50
51& above
ANALYSIS
Data collected for project from 425
responded in which 123 are the age between 10-20
which are28.9% and230are between age of 21-50 which
are54.29%and 72 are between age of 51 & above which
are 16.9 % of total respondent
(3).
Daily
Week
22
224
Fortnightl Once in
y
month
89
90
250
200
150
100
50
0
Daily
Week
Fortnightly
Once in month
ANALYSIS
Data collected for project from 425
responded in which 22 are like to purchase daily which
are5.1% and224arelike to purchase weekly which
are52.27%and 89 are likely to purchase fortnightly which
are 20.9%, 90 likely to purchase once in a month which
are21.17% of total respondent
56
Vegetable
Grocery
Cosmetic product
All product
ANALYSIS
Data collected for project from 425
responded in which 200 customer are like to purchase all
product which are47.00% and108 are like to purchase
vegetables
which are25.41%and 96 are likely to
purchase grocery 22.5 which are 22.58.%, 21 likely to
purchase cosmetic product which are4.9% of total
respondent
58
(5).
Preference of shopping?
brand
Price
102
134
59
One stop
shop
130
quality
brand
price
One stop shop
ANALYSIS
59
Interpretation
In total respondent we analyses
that most of the customer are believe in reliance brand
like to purchase qualitative product in stop shop. Here I
observed that people want to purchase fresh and original
product and want better service.
60
Reliance
fresh
83
Big apple
Other
80
18
250
200
150
100
50
0
Reliance fresh
Big apple
Local market
other
ANALYSIS
Data collected for project from 425
responded in which 244 customer are like to purchase
from local market which are57.74% and 83 are like to
purchase from reliance fresh which are19.51%and 83
are likely to purchase from Big apple which are 18.82.%,
18 likely to purchase other which are4.2% of total
respondent
Interpretation
In my observation I 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.
62
(7).
Do
advertisement
and
promotion
influence your shopping decision?
Yes ( )
No ( )
Yes
390
No
35
400
350
300
250
200
150
100
50
0
yes
No
ANALYSIS
Data collected for project from 425
responded in which 390 customer are like promotion
scheme which are91.76% and 35 are those people which
say promotion scheme doesnt effect on purchasing.
Interpretation
In my observation I found
promotion scheme is must to sustain customer attract
customer & influence the purchasing.
no
89
Some time
118
yes
no
Some time
ANALYSIS
Data collected for project from 425
responded in which 218 customer say yes
which
are51.29% and 89 are those which say no which are
20.94 and 118 say some time.
Interpretation-
65
Good
Fair
Poor
29
198
190
200
150
100
50
0
Excellent
Good
Fair
Poor
ANALYSIS
Data collected for project from 425
responded in which 29 customer say excellent which
are6.8% and19 8 say good which are 46.6%, 190 say fair
which are 44.7% and 8 customer are those say poor
Interpretation
In my observation I found that only 46.6% customer are
fully satisfied from the store company should try satisfy
the customer by providing better service and rectify their
problem immediately.
67
Print ( )
TV ( ) Radio ( ) telephone ( )
TV
Radio
74
119
56
180
160
140
120
100
80
60
40
20
0
TV
Radio
Telephon
e
176
Telephone
ANALYSIS
Data collected for project from 425
responded in which 119 customer say TV which are28%
and 74 say print which are 17.4%, 56 say Radio which
are 13.17% and 176 customer are say telephone.
68
69
(11).
when asked?
Yes ( ) No ( )
Yes
192
NO
95
Never
14
200
150
100
50
0
yes
NO
Some time
Never
ANALYSIS
Data collected for project from 425
responded in which 192 customer say yes which are
45.1% and 95 say no which are 22.35%, 124 say some
time which are 29.17% and 14customer are say never
which are 3.25%.
70
71
72
Finding
1-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.
73
74
Limitations
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.
75
76
Suggestion
1- 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.
77
Appendix
Reliance Fresh
Questionnaire
NAMEGENDERAGE
-
1-
Monthly income-
No ( )
TV ( ) Radio ( )
79
References
Referred booksMarketing Research Paneerselvam
Research Methodology C.R Kothari
Principles of Marketing Philip Kotler
Referred site
www.ril.com
www.google.com
www.wickipedia.com
80