In
Reliance Fresh
New Delhi
Project Report
Submitted To
SCHOOL OF MANAGEMENT SCIENCES
Submitted By
Amit Kumar Gupta
(Roll No. : PG/08/05)
1
Study of Consumer Buying Behaviour
In
Reliance Fresh
Submitted By
Amit Kumar Gupta
(Roll No. : PG/08/05)
2
Reliance fresh
3
Certificate
4
5
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
producer’s 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.
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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.
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satisfy him or her, this concept gaining more momentum
and importance today.
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1- Major factors influencing consumer buying behaviour.
2- Buying decision process.
3- The stage in buying decision process
4- Awareness of consumer towards organised retail
sector
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Declaration
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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.
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I would like to take the pleasure of this opportunity to
express my heartful gratitude to my guide Professor Mrs
VANDANA SHRIVASTAV (Faculty Member, SMS) who took
personal interest and gave valuable suggestions through
out my field work and completion of the project.
I thank all my faculty members of MBA department for
their valuable suggestions throughout my course.
The importance of the moral support and good wishes of
my parents and friends is external and I am very much
indebted to them.
Finally I thank all my friends who directly or indirectly
helped me a lot during my project.
AMIT KUMAR
GUPTA
PGDM-MARKETING
SMS LUCKNOW
Contents
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S.N. INDEX PAGE
NO
Certificate 4
Executive Summary 5
Declaration 9
Acknowledgement 11
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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, 1932 - July 6, 2002
RELIANCE GROUP
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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.
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Subsidiaries of
RIL
• 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
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Reliance Retail Limited
Reliance is gearing up to revolutionize the retailing
industry in India. Towards this end, Reliance is
aggressively working on introducing a pan-India network
of retail outlets in multiple formats.
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RIL, was set up to lead Reliance Group’s foray into
organized retail.
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Popular Profiles at Reliance Retail
Management team
Name Designation
Mr. Mukesh Ambani Chairman&Managing
Director
Nikhil R Meshwani Executive Director
Hital R Meshwani Executive Director
Madhumita Mohanti Deputy General Manager
Akashay Lokhande Area Manager-Operation
&Sales and NSO
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Devandra Chawla Vice-President-Business
Head, Merchandise Head
Zubin Nowrojee, State Head Category
Mangement
Reliance Fresh,
Reliance Mart,
Reliance Digital,
Reliance Trendz,
Reliance Footprint,
Reliance Wellness,
Reliance Jewels,
Reliance Timeout and Reliance Super,
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RELIANCE fRESH
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fresh supermarket chain is ril’s 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
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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 store’s 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.
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FARM TO FORK
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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.
TRADI
TIONAL MODEL OF RETAIL RELIANCE “FARM TO
FORK”
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Procuring directly from the farmers and operating
with moderate margin but mass selling was key to
Reliance fresh operation for first few months. The
following figure depicts the first Reliance fresh model
RELIANCE FRESH
Fa
rm n
ers
Ow COLLECTIO r tatio
nT N n spo
ran POINT/UNI n Tra
s po Ow
r ta
tio T ers
rm
n Fa
RELIANCE OWN
LOGISTICS
PROCESSIN
G
RF s UNIT/POINT Re
is tic lia RF
og nc
w nL e ow
ceo n Lo
n gis
lia
Re tic
s
RELIANCE RELIANCE RELIANCE
FRESH FRESH FRESH
OUTLETS OUTLETS OUTLETS
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Reliance formalized its second supply chain model to
shift itself from grocery retailer to grocery supplier by
focusing and establishing itself in Mandi’s.
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3) Merchandise from these collection processing
centers are collected and loaded for Wholesale
mandi’s. As this merchandise is to be made available
by 4 A.M in morning thus deliveries in trucks are sent
at time depending upon:
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SWOT ANALYSIS
Strengths:
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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 Reliance’s own
brand. Excepting a few packets of Nestle’s Maggi, or
MTR’s masalas or Pepsi’s 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:
Opportunities
Threats:
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CORPORATE SOCIAL RESPONSIBILITY
35
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.
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Major players in retail sector
Shoppers Stop:
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specialises in books, gift articles and stationery. During
the quarter, Crossword opened its first store and 2 ‘Stop
& Go’ stores at the Mumbai domestic airport. Further, it
forayed into airport retailing through a joint venture with
The Nuance Group AG of Switzerland. The company has
also made an entry into the entertainment sector by
acquiring 45% stake in Time zone Entertainment Pvt. Ltd.
The recent moves by the company will widen the offering
and de-risk its dependence on the flagship Shoppers’
Stop stores.
Pantaloon:
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more
RPG Group:
40
Research Objective
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Research Methodology
Research Problem
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Type of research
Data collection:
Primary Data
Primary data of research are collected from direct
resources (customer of Reliance fresh) through
questionnaire.
Secondary Data
Universe
Sampling technique
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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
45
Understanding The Buying Behaviour Of Reliance Fresh
Consumers
Definition
Purchase decision making pattern that is a complex
amalgam of needs and desires, and is influenced by
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factors such as the consumer's (1) societal role (parent,
spouse, worker, etc.), (2) social and cultural environment
and norms, and (3) aspirations and inhibitions.
Mark Buyer’
eting Other s Buyer’s Buyer’s
Stim Stimuli Charac Decisio Decision
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teristic
uli s n
Process
Problem
Produ Econom recogniti Product
ct ic Cultural on choice
Informat
Technol ion Brand
Price ogical Social Search choice
Persona Evaluati Dealer
Place Political l on choice
Promo Psychol Purchase
tion Cultural ogical Decision timing
Post
purchas Purchase
e amount
Behavio
ur
Cultural Social
Personal
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Referen
ce Psycholo
culture Groups gical
Cycle
Stage Motivation
Subcultur
e Family Economic Perception
Circumstan
ces Learning
Beliefs
and
Life Style Attitudes BUYE
Roles R
and
Statuse Personality
s and
Social Self
Class Concept
49
product but also those who influenced the purchasing
decision.
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for alternative product and brands to the product judging
criteria on standards the consumer has developed. When
such a comparison leads to favourable evaluations, the
consumer is likely to develop a purchase intention
towards that alternative that received the most
favourable evaluation.
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52
(1). Gender of the consumer
Male &
Female
150 275
Data Collected-
Data collected for this
questionnaire to know the gender of customer of reliance
fresh.
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
Interpretation-
In total respondent we analyses
that most of the customer in this store is female and
their demand always consider at the time of taking the
decision. Company should try to attract new male
customer by provide new scheme on their customer
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(2). Age of customer
Data Collected-
Data collected for this
questionnaire to know the age of customer of reliance
fresh.
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
Interpretation-
In total respondent we analyses
that most of the customer are youth .in my observation
I found that most new people believe in convenience
shopping It help the company to keep management
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such type which understand the problem of customer
easily and rectify the problem effectively.
250
200
150
100
50
0
Daily Week Fortnightly Once in month
Data Collected-
Data collected for this questionnaire to
know the shopping behaviour of customer of reliance
fresh.
55
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
Interpretation-
In total respondent we analyses
that most of the customer are likely to purchase on
weekend .in my observation I found that more scheme
should be provided on weekend.
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What do you mostly shop for at
(4).
mentioned store?
Vegetable
Grocery
Cosmetic product
All product
Data Collected-
Data collected for this
questionnaire to know the products which are like to
purchase by the customer.
57
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
Interpretation-
In total respondent we analyses
that most of the customer are like to purchase all product
in the store. Company should try to retain the customer.
And should increase the variety o cosmetic product&
grocery.
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(5). Preference of shopping?
Quality ( ) Brand ( ) Price ( ) one stop shop
quality
brand
price
One stop shop
Data Collected-
Data collected from this
questionnaire to know the preference the shopping
ANALYSIS—
59
Data collected for project from 425
responded in which 134 customer are believe in reliance
brand which are31.50% and130 are like to purchase in
one stop shop which are 30.54%and 102 are like to
purchase quality product which are 24.00%, only 59
respondent consider price which are 13.08.%.
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.
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(6). which store do you kept in
preference for purchasing
Reliance Fresh ( ) Big apple ( ) other ( ) Local market
250
200
150
100
50
0
Reliance fresh Big apple Local market other
Data Collected-
Data collected from this
questionnaire to know the preference of the purchasing
(comparison of store to other).
61
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 didn’t 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 No
390 35
400
350
300
250
200
150
100
50
0
yes No
Data Collected-
Data collected from this
questionnaire to know the effect of promotion scheme on
purchasing.
63
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 doesn’t effect on purchasing.
yes
no
Some time
Data Collected-
Data collected from this
questionnaire to know display of promotion scheme..
64
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.
65
(9).How likely are you to recommend
Reliance Fresh to a friend or
relative? Would you say the chances
are?
Excellent ( ) Good ( ) Fair ( ) Poor ( )
200
150
100
50
0
Excellent Good Fair Poor
Data Collected-
Data collected from this
questionnaire to know the satisfaction level of customer.
66
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
67
(10).Which form of advertisement do
you think is most effective?
Print ( ) TV ( ) Radio ( ) telephone ( )
180
160
140
120
100
80
60
40
20
0
print TV Radio Telephone
Data Collected-
Data collected from this
questionnaire to know the better advertisement mode of
promotion.
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
Interpretation -
69
(11). Did you get help from CSA
when asked?
Yes ( ) No ( ) some time ( ) Never ( )
200
150
100
50
0
yes NO Some time Never
Data Collected-
Data collected from this
questionnaire to know about CSA performance.
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
Interpretation-
71
72
Finding
73
74
Limitations
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
NAME-
GENDER-
AGE - Monthly income-
4- Preference of shopping
Yes ( ) No ( )
78
7- How likely are you to recommend Reliance Fresh to a friend
or relative? Would you say the chances are?
Excellent ( ) Good ( ) Fair ( ) Poor ( )
Print ( ) TV ( ) Radio ( )
79
References
Referred books-
Referred site-
www.ril.com
www.google.com
www.wickipedia.com
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