A MINI PROJECT ON

Customer perception on private labels in Reliance Fresh

Submitted to: Prof. Anitha K. Submitted by: Rana Sarkar. Regd No: 6091

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 patterns. demographic

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 increasing at a rate of 5% yearly. A further increase of 7-8% 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 geography, 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

satisfy him or her, this concept gaining more momentum and importance today.

More than a century ago, the father of our nation, Mahatma Gandhi, had made visionary and deep meaningful statement at Johannesburg, South Africa in 1980. A customer is the most important visitor of our premises. He is not dependent on us .We are dependent on him He is not interruption on our work. He is the purpose of it and not an outsider on our premises. He is a part of it. We are not doing him favour by serving him.

Today the entire firm engaged in a process of creating a life time value and relationship with customers. This report start with discussion on the diversity of consumer behaviour and the need for studying consumer buying behaviour and consumer as a related field of marketing .this can be largely be attributed to the prevailing market situation .Today the company image is built and made known by its customers. Thus success of the firm determined how effective it has been in meeting the diverse consumer need and wants by treating each customer as unique and offering products and services to suit has or her need.

Consumer buying behaviour will be a primary force in determining how this transition will evolve. Getting closer to the customer in todays highly competitive landscape is essential for the entire industry and is no longer just a retail issue. It requires all organisations across the supply chain to work as a single enterprise, sensing and responding rapidly to consumer demand in a co-ordinated manner. Detailed analysis of the changing patterns of consumer demand, shopping trends.

This research report is based on to know the: 1. Customer perception on private labels of Reliance fresh. 2. Future prospects of Private labels.

Research Objective

To study the consumer perception on private labels of reliance fresh customer. To know on what kind of product consumer prefer private brands.

Research Methodology

Research Limitations:

To make a comprehensive study of Reliance fresh & to know the customer perception on private labels of Reliance Fresh within a short span of time was a very big challenge.

Type of research

Descriptive type research has used to complete the project. This research is based 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 scope of Retail industry are collected from already available resources like net and other sources. Sampling technique

Random sampling is used for research project. I have given equal weightages to my all respondent and chose them randomly without any biased like gender, age, income culture.

Sample size

20 respondents has selected as sample size for research.

Data representation technique and tools

Columns chart & Pie chart has used for representation.

Scope of Study In order to be truly successful, retailers must advance from the generic or store brand mind-set of the past to a new private label paradigm. Many retailers have begun to describe their private label brands as own brands because there is recognition that these proprietary, exclusive offerings are tools that represent momentous power and potential for the retail store. Own brands are articulated and developed in a way that they not only fit with the brand promise of the retail store, but if effective, they also give consumer drivers a key point of departure to enhance and celebrate the overall retail brand proposition to keep consumers coming back for more. In the past, private label was a moniker for consumer products that were lower priced and lower value. Retailers fostered them as they represented a growth engine because of high returns in terms of margins and profitability on a relatively small investment. The study will definitely help to know the perception of the customer regarding private brands and also the future prospects of private brands in retailing. As most of the retail companies concentrate on private labels so there is enough scope to know the future prospects as well as customer perception of private labels.

RELIANCE

"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."

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.

The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail. Reliance enjoys global leadership in its businesses; The Group exports products in excess of USD 15 billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and Reliance Industrial Infrastructure Limited. Reliance Industries Limited is India's largest private sector conglomerate (and second largest overall) with an annual turnover of US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal year ending in March 2008 making it one of India's private sector Fortune Global 500 companies, being ranked at 206th position (2008).
[1]

It was founded by the Indian

industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing financial instruments like fully convertible debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhai's ability to manipulate the levers of a controlled economy to his advantage. Though the company's oil-related operation forms the core of its business, it has diversified its operations in recent years. After severe

differences between the founder's two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in 2006. In September 2008, Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most respected companies"

Formats of Reliance RETAIL

Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super,

RELIANCE FRESH

APKA FRESH APKE PADAOS ME

Reliance fresh is the retail chain division of reliance industries of India which is headed by Mr. 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 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 lakh 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

BACK GROUND 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 Mr. 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 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 lakh 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 neighbor store. However, this is only the entry roll-out that

the company has planned. Bangalore is said to have 40 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 and position Reliance Fresh as a pure play super market focusing on categories like food, FMCG, home, consumer durables, IT, wellness and auto accessories, with food accounting for the bulk of the business. The company may not stock fruit and vegetables in some states, 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 to create a robust supply chain. This is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in Hyderabad last October, 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.

Product Mix of Reliance fresh

PRODUCT MIX OF RELIANCE FRESH

FRUITS &VEGETABLES

STAPLE STAPLE PF, BEVERAGE, F&V NON-FOOD FMCG

Reliance fresh deals with a variety of products which range from Fruits, vegetables to staple foods and they also deals in Non-food items like Shampoo, soaps and many more.

Pic: Private label Available at Reliance Fresh.

Pic : private label Rice available at Reliance Fresh.

INDUSTRY PROFILE

The Indian Retail market is worth a whopping Rs 1500000 crores. If one has to divide between the organized and unorganized sectors the major contribution comes from the unorganized sector, which contributes close to 98% of the total retail market. The balance of 2% amounts anywhere between 18-2000 crores. The difference between organized and unorganized sectors in the US & some of the Far East Asian countries are pretty low unlike in India. With the advent of seasoned players in the field of retail in India, the gap is likely to be abridged in the coming years. The difference between them is 85:15 in favour of organized sector in the US and 81:19 in the favour of the organized sector in Taiwan. The employment opportunities in retail are pretty high. But again the ratio of organized and unorganized is skewed towards the unorganized sector. While the organized retail sectors deploys 500000 people & the unorganized sector deploys close to 80 times the workforce. Factors that influence the growth in retail The DINK/HINK families, working women, working parents and the rising disposable income has contributed to the growth of Retail across. The middle-income group is the fastest growing segment in the country today. Further the electronic media is also aiding the growth of the Retail industry. To summarize the top 6 factors that drive the growth of the retail industry in India would be as follows: The Demographics Lifestyles Needs and Desires Shopping Attitudes and Behaviour

 Retailers action Environmental Factors

These six factors clubbed with a co-coordinated logistics make the sale happen. As in any industry there is a social commitment also to be fulfilled. These can be recapitulated as under: Quality products Competitive prices Wide range to choose from Employment opportunities that are created The economy would experience sea of change and Would mean a WIN WIN situation to everyone

Retail types There are three major types of retailing. The first is the market, a physical location where buyers and sellers converge. Usually this is done on town squares, sidewalks or designated streets and may involve the construction of temporary structures (market stalls). The second form is shop or store trading. Some shops use counter-service, where goods are out of reach of buyers, and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. Self-service, where goods may be handled and examined prior to purchase, has become more common since the Twentieth Century. A third form of retail is virtual retail, where products are ordered via mail, telephone or online without having been examined physically but instead in a catalog, on television or on a website. Sometimes this kind of retailing replicates existing retail types such as online shops or virtual marketplaces such as eBay or Amazon.

Top Retailer Worldwide

Rank 1 2 3 4 5

Retailer Wal-Mart Stores, Inc. Carrefour Group The Kroger Co. The Home Depot, Inc. Metro

Home Country U.S.A. France U.S.A. U.S.A. Germany

(Source: Stores/Deloitte Touche Tomahatsu)

RETAIL SECTOR IN INDIA As the corporate the Piramals, the Tatas, the Rahejas, ITC Ltd, S.Kumars, RPG Enterprises, Shoppers Stop, Pantaloons, Reliance Retail, Vishal Mega Mart, Aditya Birla Group, Subhiksha, Landmark Group, True Mart race to revolutionize the retailing sector, retail as an industry in India is coming alive. Across the country, retail sales in real termss are predicted to rise more rapidly than consumer expenditure during 2003-08. The forecast growth in real retail sales during 2003- 2008 is 8.3% per year, compared with 7.1% for consumer expenditure. Modernization of the Indian retail sector will be reflected in rapid growth in sales of supermarkets, departmental stores and hyper marts. Sales from these large-format stores are to expand at growth rates ranging from 24% to 49% per year during 20032008, according to a latest report by Euro monitor International, a leading provider of global consumer-market intelligence.

A. T. Kearney Inc. places India 6th on a global retail development index. The country has the highest per capita outlets in the world - 5.5 outlets per 1000 population. Around 7% of the population in India is engaged in retailing, as compared to 20% in the USA.

The factors responsible for the development of the retail sector in India can be broadly summarized as follows: Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Looking at income classification, the National Council of Applied Economic Research (NCAER) classified approximately 50% of the Indian population as low income in 1994-95; this has declined to 17.8% in 2006-07. Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogg, Unilever, Nestle, etc. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. The internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in creating awareness about global products for local markets. About 47% of Indias population is under the age of 25; and this will increase to 55% by 2015. This young population, which is technology-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country. As India continues to get

strongly integrated with the world economy riding the waves of globalization, the retail sector is bound to take big leaps in the years to come.

The Indian retail sector is estimated to have a market size of about $ 180 billion; but the organized sector represents only 3% share of this market. Most of the organized retailing in the country has just started recently, and has been concentrated mainly in the metro cities. India is the last large Asian economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold through the super markets and departmental stores. A similar phenomenon has swept through all other Asian countries. Organized retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services. A study conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially through increased levels of penetration in larger towns and metros and also as it begins to spread to smaller cities and B class towns. Fuelling this growth is the growth in development of the retail-specific properties and malls. According to the estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed and will be available for occupation over the next 36-48 months. Fitch expects organized retail to capture 15%-20% market share by 2010. A McKinsey report on India says organized retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. At 6%, the share of employment of retail in India is low, even when compared to Brazil (14%), and Poland (12%).

Total Private Consumption Expenditure in India 375 Billion USD Retail Sale 205 Billion USD Organized Retail 6.2 Billion USD (3%) Retailing 35% of GDP

RETAILING FORMATS IN INDIA

Malls:The largest form of organized retailing today, Located mainly in metro cities, in proximity to urban outskirts ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment; all under a common roof.Examples include Shoppers Stop, Piramyd, Pantaloon.

Specialty Stores:Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

Discount Stores:As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non-perishable goods.

Department Stores:Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc.

Department Stores:

Departmental Stores are expected to take over

the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!.

Hypermarts/Supermarkets: Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

Convenience Stores:These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of highturnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. MBOs:Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.

Review of Literature Indias retail growth was largely driven by increasing disposable incomes, favourable demographics, changing lifestyles, growth of middle class segment and a high for penetration into urban and rural markets. However, with the onset of global financial crisis, Indian retailers have been suffering from the effects of rapid credit squeeze high operating costs and lower customer confidence. In the past few years Indian retail journey seemed picture perfect with the most attractive stops this is still unexploited and under penetrated. Favourable demographics, steady economic growth, easy availability of credit, and large scale real estate development were fuelling the growth of Indias approximately USD 25 billion organized retail market. The opportunity was there for all to see and India was the destination of choice for top global retailers. In this environment, Indias own blue chip companies like Reliance, Bharti and RPG diversified to add retail to their sector profile. All things considered, it was a good time for Indian retail. The definition of private label branding has evolved significantly over time. Some would argue the term private label is a misnomer of great proportions. There is no question that the words private label acknowledges the birth, history and existence of generic and store brands. Yet, the term does not adequately capture the extent to which private label has progressed. Today's retail marketers are managing their proprietary brands with the same combination of care and innovation as manufacturers of national brands. Private label brands were traditionally defined as generic product offerings that competed with their national brand counterparts by means of a price-value proposition. Often the lower priced alternative to the real thing, private label or store brands carried the stigma of inferior quality and therefore

inspired less trust and confidence. Yet, they still grew and prospered by providing consumers lower priced options for what was often a low involvement purchase decision. Retailers continued to push more and more private label products into different categories of the marketplace because they represented high margins and the promise of profitability with little to no marketing effort. Private label brands have clearly become a more instrumental priority for todays retailers. They are starting to diversify their offering beyond the expected, enabling them to compete more effectively in existing product categories and foray into new and different product categories that have traditionally been dominated by national brand players. In many instances, private labels have surpassed a national brands capacity to deliver on visibility, consumer interest, involvement and appeal. Proprietary brand decision makers are often able to command close to parity or parity pricing for their products, without articulating cost as the differentiating factor. This represents a point of departure from the past: there is an acknowledgement that todays proprietary brands have the ability to transcend the negative baggage and problems of traditional store brands, creating unique, resonant benefit propositions for consumers. In order to be truly successful, retailers must advance from the generic or store brand mind-set of the past to a new private label paradigm. Many retailers have begun to describe their private label brands as own brands because there is recognition that these proprietary, exclusive offerings are tools that represent momentous power and potential for the retail store. Today in the present scenario retail store offer different kinds of brand under one roof they are termed as Store, umbrella and Individual brands

Store brands are a line of products sold by a retailer under a single marketing identity. They bear a similarity to the concept of House brands, Private label brands (PLBs) in the United States, own brands in the UK, and home brands in Australia and generic brands. An umbrella brand is an overarching brand used across multiple related products. Umbrella branding is also known as family branding. A good example is AMUL - Amul Butter, Amul Cheese, Amul Milk, Amul Icecream, Amul Chocolates etc. Individual branding, also called individual product branding or multibranding, is the marketing strategy of giving

each product in a portfolio its own unique brand name. Examples of individual product branding include Procter & Gamble, which markets multiple brands such as Pampers, and Unilever, individual brands such as Dove. which markets

In India, the growth of private labels has been phenomenal and is slowly gaining more store space. Aditya Birla Retail, which operates the More for you food and grocery chain, is reportedly pursuing strategies to increase its private label sales from the current 3% to 10-15% of total sales in the next two to three years. During the course of this story, DARE visited several such retail outlets. Here is a pen picture of what we found.

Private labels are slowly becoming the protagonist in the big Indian retail growth story. Taking cue from the West, Indian retailers are also churning out newer ways to increase their profit marginsone such initiative is the introduction of in-house brands. With Indian customers increasingly accepting these private label brands, they would soon be major contributors to the profits of Indian retailers.

DATA INTERPRETATION (1). Gender of the consumer

Male 15

& 5

Female

Gender of respondents
Male Female

25%

75%

Data CollectedData collected for this questionnaire to know the gender of customer of reliance fresh. ANALYSIS Data collected for project from 20 responded in which 5 are female which are 25% and 15 are male which are 75% of total respondent InterpretationIn total respondent we analyses that most of the customer in this store is male and their demand always consider at the time of taking the decision. Company should try to attract female customer by provide new scheme to their customer

(2).

Age of customer

10-20 2

21-35 18

36& above 0

20 15 10 5 0 10-20 21-35 36& above

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

ANALYSIS Data collected for project from 20 responded in which 2 are the age between 10-20 which are 10% and 18 are between age of 21-35 which are 90%and 0 are between age of 36 & above InterpretationIn total respondent we found that most of the customers are youth. In my observation I found that most new people believe in convenience shopping and it help the company to keep management in such way, which understand the problem of customer easily and rectify the problem effectively.

(3). How often do you shop in Reliance fresh ?

Daily

Week

Fortnightly

Once month

in

10

Daily

Weekly

Forthnightly 10% 15%

Once in a month

25% 50%

Data CollectedData collected for this questionnaire to know the shopping behaviour of customer of reliance fresh.

ANALYSIS Data is collected from 20 responded in which 2 are like to purchase daily which is 10% and 10 are likely to purchase weekly which is 50% and 5 are likely to purchase fortnightly which is 15% and at last 3 of them prefer to do purchase once in a month which is 25% of total respondent InterpretationOut of the total respondent i analysed that most of the customer are likely to purchase on weekend. In my observation I found that more schemes should be provided on weekend to epitomize the sales.

(4). what do you mostly shop for at mentioned store?

Vegetable

Grocery

Cosmetic product

All product

Vegetables

Grocery 10%

Cosmetic products

All products

15% 25% 50%

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

ANALYSIS Out of 20 respondent 2 customer purchase all product which is 10% and 3 purchase vegetables which is 15% and 9 purchase grocery which is 45%, out of the total respondents 5 respondents purchase cosmetic product which account for 25% of total respondent InterpretationOf the total respondent analysed most of the customer like to purchase grocery product in the store. Company should try to retain the customer and should increase the variety of grocery product at lower price compared to other convenience stores.

(5). what attribute of product do you prefer while purchasing

a product? Quality 6 brand 4 Price 7 Looks 3

Quality

Brand

Price

Looks

15%

30%

35% 20%

Data CollectedData collected from this questionnaire to know the attribute of the product which is most preferred while making a purchase.

ANALYSIS
Out of 20 respondent 4 customer believe in reliance brand which is 20% and 3 prefer looks while make a purchasing decision which is 15% and 6 prefer quality product which is 30%, 7 respondent consider price which are 35% of the total respondents.

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. Here it can be said that customer of Alwal are price sensitive and they take their purchasing decision majorly based on price factor.

(6). which store do you keep in preference for purchasing? Local market 6 Reliance fresh 7 Food baazar 4 More 3

Chart Title
10 5 0 Local Market Reliance Fresh Big bazaar Series1 More

Data CollectedData collected from this questionnaire to know the preference of the purchasing (comparison of store to other). ANALYSIS Out of the Data collected 6 respondents prefer local market for making their purchase which is 30% and 7 are like to purchase from reliance fresh which is 35% and 4 are likely to purchase from Big bazaar which is 20.%, 3 are likely to purchase from More

which accounts for 15% 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, good service as well as low price to customer to penetrate into the market. Initial it may be costlier, but it will give long term benefit.

(7) How likely are you to recommend Reliance Fresh to a friend or relative? Would you say the chances are?

Excellent 4

Good 6

Fair 8

Poor 2

Excellent 10%

Good

Fair

Poor

20%

40%

30%

Data CollectedData collected from this questionnaire to know how likely they would recommend reliance fresh to a friend or relative.

ANALYSIS
The Data is collected from 20 respondent in which 4 customer say that the probability of recommending reliance fresh to their friends for shopping is excellent which is 20% and 6 say good which is 30%, 8 say fair which is 40% and 2 customer are those who say their probability of recommending Reliance fresh to their friends for shopping is poor and which accounts for only 10%.

Interpretation
In my observation I found that only 20% customer are fully satisfied from the store company so the number is low and the organization should take certain steps which will delight the customer and make them satisfied in the due course of time and transform them into loyal bunch of customers.

(8) Do you prefer private labels in retail store? Yes 12 & 8 No

No 40% Yes 60%

Data CollectedData collected from this questionnaire to know whether customer prefer private labels in Retail stores or not.

ANALYSIS
Here the data is collected from 20 respondents to know their preference for private labels offered in Retail chains where it is found that 13 respondents say that they prefer private labels which accounts for 60% of the total respondents and the rest 8 respondents does not prefer private labels which accounts for 40% of total respondents.

Interpretation
In my observation retail store should communicate the benefits of private brands and should also offer various discount on the purchase of private labels which will definitely motivate customer to buy private labels.

(9) Why do you prefer private labels?

Price 7

Quality 5
Valu for money 20%

Quantity 4

Value money 4

for

Price 35% Quantity 20% Quality 25%

Data CollectedData collected from this questionnaire to know why customer prefers private labels in Retail stores or not.

ANALYSIS
Here the data is collected from 20 respondents to know why they prefer private labels offered in Retail chains where it is found that 7respondents say that they prefer private labels because of low price which accounts for 35% of the total respondents and 5 respondents prefer private labels because of quality factor which accounts for 25% of total respondents.4 respondents prefer private labels because of the quantity they get drives them to purchase private labels which is 20% and the rest 4 respondents feel that they pay for they get which accounts for 20%

Interpretation
In my observation retail store should communicate the benefits of private brands and should also offer various discount on the purchase of private labels again it is evident that customers of Alwal area are price conscious.

(10) On what kind of product do you prefer private labels?

FMCG 4

Grocery 10
Accessories 25% FMCD 5%

FMCD 1
FMCG 20% Grocery 50%

Accessories 5

Data CollectedData collected from this questionnaire to know on what kind of product customer prefer private labels in Retail stores.

ANALYSIS
Here the data is collected from 20 respondents to know on what kind of product customer prefer for private labels offered in Retail chains where it is found that 4 respondents say that they prefer private labels for FMCG products which accounts for 20% of the total respondents and 10 of the respondents does prefer private labels when they purchase Grocery items which accounts for 50% of total respondents only 1 respondent said that he preferred private labels for purchasing of FMCD products which is just 5% of total respondents and the rest 5 respondents say that they prefer private labels when they purchase Accessories.

Interpretation
In my observation retail store should concentrate more on offering private labels in grocery items as most of the customers prefer private labels in grocery items and retailer should also focus on Accessories as many customers do prefer private labels when they go for accessories.

11.

purchasing of Private labels give you same kind of

satisfaction?

Yes 6

No 4
Never 15%

Sometime 7
Yes 30%

Never 3

Sometime 35%

No 20%

Data CollectedData collected from this questionnaire to know whether customers are satisfied or not on the purchase of private labels in Retail stores.

ANALYSIS
The data is collected from 20 respondents where it is found that 6 respondents are satisfied with private labels which is 30% whereas 4 respondents said that they are not satisfied which is 20% and 7 of them said that they are sometimes satisfied which accounts for 35% and at last 3 respondents say that are never satisfied with private labels products which accounts for 15% of total respondents.

Interpretation
It is observed that all customers who use private labels 30% are satisfied whereas 35% are sometimes satisfied and sometimes not so Reliance fresh should take steps to improve the quality as well as offer the product at lower price compared to competitor and at the same time should promote those private label products efficiently.

Conclusions followed by recommendations form the basis of the report more solid. The conclusion proves the analysis that is carried out in the report and on the basis of these conclusions, recommendations are given. During the course of the study it was found that though Reliance fresh is gaining popularity but due to the less concentration on the management of customer data base it is posing problem to Reliance fresh to tap the opportunity that is available in the present market scenario. In the survey and analysis it was found that the preference of customers of the for private labels depends on variety of factors like Need, Cost, Quality, Durability, Product range and some other factors. Few of the factors that can be put into consideration in order to make the private labels of Reliance fresh successful among people.

Advertisements The organization should also concentrate upon the Advertisement strategies and should come up with the innovative ads. Name recall amongst the Consumer Categories is low because of less frequency of the TV advertisements. The organization should have customer data base so that information about offers can be conveyed to the customer and customer segregation can also be done. The Retailing industry is booming. In order to tap the potential market, the Company can advertise in a magazine named like

Daily news record. This will help in showcasing the products of the magazine. This can add an extra spice to sales In store display and the use of the colors full display of the product should be increase especially of private labels that the retailer offers. Reliance fresh have a very good plus point regarding the place that the store contains compare to the other stores in the city the effective use of the store should be done effectively showcasing their private label products so that more and more people can have access to the private labels offered by them. Example Kiosks should be placed displaying the private labels product which will have psychological effect on the consumers. Giving free samples of the product to the customer for testing and if it is successful then it will help to boost the sales of private labels product.

PLACE Reliance fresh have very good coverage geographically where it is operating and it can utilize this advantage to tap the market. The display of the own brand must be in proper place to be get notice by the customers .In place of the entrance in crowded place to get the proper view by the customers The back side of the bill should be used for the purpose of the promotion of the own brand promotion The plastic carry bag of the big bazar should also be used for the promotional activity of the home product

 Effective use of the csd for announcement of the name of the product to get notice by the customers Separate card in the name of (MAGIC CARD) for the purchase of own brand product only

PRODUCT Though the products of the Reliance fresh is relatively good compare to the leading product players in the market people when private label product is concerned and it will definitely help them to elevate the sales of their offerings with proper backing of advertisement and promotional activities.

PRICE Company should focus on their Price. It should know the competitors price and according to that there should be a proper action to decide the price and discount offers. Though the prize of the product is relatively less compare to the other brand but people are not willing to buy because of the lack of knowledge by the customer

CUSTOMER SERVICES On the weekends mostly, there is long queue for the billing which takes a huge time so there should be an increment in the number of cash counters. As it was found that Reliance fresh stores are having its operation in residential areas so home delivery can also be done in order to delight the customer and enhance their experience.

So all in all Reliance fresh should take effective action to promote their private labels by efficiently communicating the benefits in using their private label products in various segments of their offering and this could be done by proper utilization of information technology, advertisement tools and so on. They should also provide discount to customers so that customers get motivated to buy private label products.

Bibliography

Referred booksMarketing Research Paneerselvam Research Methodology C.R Kothari

Philip Kotler (2009), Principles of Marketing, 13th Edition, Pearson

Referred site www.ril.com www.google.com www.wickipedia.com

Appendix
Reliance Fresh

Questionnaire
NAMEGENDERAGE -

Monthly income-

1-

How often do you shop at reliance fresh? Daily ( ) week ( ) fortnightly ( ) once in month ( )

2- What do you mostly shop for at mentioned store? Vegetables ( ) Grocery ( ) cosmetic product ( ) 3- Preference of shopping Quality ( ) Brand ( ) Price ( ) Private labels 4- What attribute of product do you prefer while purchasing a product? ( ) Quality ( ) price ( ) Quantity ( ) Looks

5- Which store do you keep in preference for purchasing? Reliance Fresh ( ) Food bazaar ( ) More ( ) Local market

6- How likely are you to recommend Reliance Fresh to a friend or relative? Would you say the chances are? Excellent ( ) Good ( ) Fair ( ) Poor ( )

7- Do you prefer private labels in retail store? ( ) Yes ( ) No

8- Why do you prefer private labels? ( ) price ( ) quality ( ) quantity ( ) value for money

Yes ( ) No ( ) Equal ( ) no idea ( ) 9 On what kind of product do you prefer private labels? Apparels ( ) FMCD ( ) FMCG ( ) Grocery ( )

10-

Purchasing of Private labels give you same kind of satisfaction. Yes ( ) No ( ) some time ( ) Never ( )