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A

Project Report
On
Comparative issues

Study of Consumer buying behaviour


in
Reliance Fresh
Reliance fresh

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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 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.

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

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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 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
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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.

This research report is based on to know the


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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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 Miss Shushi Singhal for
the constant and valuable guidance by him throughout my
course. She has taken pain to go through the project and make
necessary correction as and when needed.

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.

ANKITA AHUJA

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Contents

S.N. INDEX PAGE


NO
Executive Summary 5
Acknowledgement 11
CHAPTER- INTRODUCTION
1 &BACKGROUND
1.1 Company Overview 14
1.2 Popular Profile 21
1.3 Supply Chain Model 27
1.4 SWOT Analysis 30
1.5 Corporate Social Responsibility 33
1.6 Major Player 35
CHAPTER- RESEARCH
2 METHODOLOGY &DESIGN
2.1 Objective of Research 38
2.2 Type of Research 41
2.3 Source of data & Collection tool 41
2.4 Sampling 42
2.5 Sample size 42
CHAPTER- ANALYSIS &
3 INTERPRETATION
Meaning of consumer Buying 44
Behaviour
Interpretation of collect data 49
CHAPTER- RESEARCH FINDING 69
4
CHAPTER- LIMITATION OF 71
5 RESEARCH
CHAPTER- SUGGESTION 73
6
QUESTIONNAIRE 75
REFRENCES 77

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RELIANCE

10
"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.

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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.

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"

Subsidiaries of RIL

Reliance Petroleum
Ranger Farms Limited
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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

Reliance Retail Limited

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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.

A world class shopping environment, state of art technology, a seamless


supply chain infrastructure, a host of unique value-added services and
above all, unmatched customer experience, is what this initiative is all
about.

The retail initiative of Reliance will be without a parallel in size and


spread and make India proud. Ensuring better returns to Indian farmers
and manufacturers and greater value for the Indian consumer, both in
quality and quantity, will be an integral feature of this project. By
creating value at all levels, we will actively endeavour to contribute to
India's growth.

The project will boast of a seamless supply chain infrastructure,


unprecedented even by world standards. Through multiple formats and a
wide range of categories, Reliance is aiming to touch almost every
Indian customer and supplier.

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


vendor partners, small shopkeepers and consumers, Reliance Retail
Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Groups
foray into organized retail.

With a 27% share of world GDP, retail is a significant contributor to


overall economic activity across the world. Of this, organized retailing
contributes between 20% to 55% in various developing markets. The
Indian retail industry is pegged at $ 300 billion and growing at over
13% per year. Of this, presently, organized retailing is about 5%. This is
expected to grow to 10% by 2011. RRL has embarked upon an
implementation plan to build state-of-the-art retail infrastructure in
India, which includes a multi-format store strategy of opening
neighbourhood convenience stores, hypermarkets, and specialty and
wholesale stores across India.

RRL launched its first store in November 2006 through its convenience
store format Reliance Fresh. Since then RRL has rapidly grown to
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operate 590 stores across 13 states at the end of FY 2007-08. RRL
launched its first Reliance Digital store in April 2007 and its first and
Indias largest hypermarket Reliance Mart in Ahmadabad in August
2007. This year, RRL has also launched its first few specialty stores for
apparel (Reliance Trends), footwear (Reliance Footprints), jewellery
(Reliance Jewels), books, music and other lifestyle products (Reliance
Timeout), auto accessories and service format (Reliance AutoZone) and
also an initiative in the health and wellness business through Reliance
Wellness. In each of these store formats, RRL is offering a unique set of
products and services at a value price point that has not been available
so far to the Indian consumer. Overall, RRL is well positioned to rapidly
expand its existing network of 590 stores which operate in 57 cities.

During the year, RRL also focused on building strong relationships in


the agri-business value chain and has commenced marketing fruits,
vegetables and staples that the company sources directly to wholesalers
and institutional customers. RRL provides its customers with high
quality produce that has better shelf life and more consistent quality
than was available earlier. RRL has made significant progress in
establishing state-of-the-art staples processing centres and expects to
make them operational by May 2008.

Through the year, RRL also expanded its supply chain infrastructure.
The Company is fully geared to meet the requirements of its rapidly
growing store network in an efficient manner.

Recognizing that strategic alliances are going to be a key driver to its


retail business, in FY 2007-08, RRL established key joint ventures with
international partners in apparel, optical and office products
businesses. Further, RRL will continue to seek synergistic opportunities
with other international players as well. This year, RRL will continue its
focus on rapid expansion of the existing and other new formats across
India.

Popular Profiles at Reliance Retail

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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
Devandra Chawla Vice-President-Business
Head, Merchandise Head
Zubin Nowrojee, State Head Category
Mangement

Formats of Reliance RETAIL

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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

APKA FRESH APKE PADAOS


ME
Reliance fresh is the retail chain division of reliance industries of India
which is headed by Mukesh Ambani. Reliance has entered into this
segment by opening new retail stores into almost every metropolitan and
regional area of India. Reliance plans to invest rs 25000 crores in the
next 4 years in their retail division and plans to begin retail stores in
784 cities across the country. The 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 Mukesh Ambani. Reliance has entered into this
segment by opening new retail stores into almost every metropolitan and
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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.

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FARM TO FORK

The Reliance retail company sources say it is setting


aside Rs 50,000 crore to build its farm-to-fork
linkage. Reliance has drawn up plans for a presence
in 784 towns and 6,000 mandi (wholesale market)
towns with 1,600 rural business hubs to service
these. It has already rolled out 177 Reliance Fresh
stores across major towns in 11 states. According to
a company report, RIL is targeting a turnover of Rs
40,000 crore in the next few years.

TRADI

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TIONAL MODEL OF RETAIL RELIANCE FARM TO
FORK

SUPPLY CHAIN MODELS of Reliance Retail

Reliance started its retail operations of Reliance Fresh stores


with following supply chain model. Procuring directly from the
farmers and operating with moderate margin but mass selling was
key to Reliance fresh operation for first few months. The following
figure depicts the first Reliance fresh model

RELIANCE FRESH

FARMERS FARMERS FARMERS


CATEGORY CATEGORY CATEGORY
1 2 3

Fa
rm
ers on
Ow COLLECTIO o rtati
nT nsp
ran N Tra
sp POINT/UNI wn
ort
a ers O
tio T rm
n Fa

RELIANCE OWN
LOGISTICS

PROCESSIN
G
RF tics UNIT/POINT Re
is li an RF
Log ce
wn ow
eo nL
nc og
e lia ist
R ics

RELIANCE RELIANCE RELIANCE


FRESH FRESH FRESH
OUTLETS OUTLETS OUTLETS

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WHOLESALE TRADING (WST) :
Reliance formalized its second supply chain model to shift itself from
grocery retailer to grocery supplier by focusing and establishing itself
in Mandis.

STEPS IN WTS MODEL:

1) Reliance has owned farms on contract basis for production of


specific crop which is decided after extensive research depending on
SOIL CONDITIONS,
CLIMATE CONDITIONS,
RETURN OVER COSTS INCURRED.
So as to yield best possible results.

2) Different vegetables and fruits from such farms are collected


through reliance own
Logistics and brought to collection Processing centres where
quality check and other required processing is done.

In processing centres workers wearing balaclavas, woollen trousers


and bulky jackets work inside a room kept at a constant 3oC,
peeling and chopping vegetables, spinning them dry and then heaping
them in small plastic packets before placing them in plastic transport
crates. At the other end of the 5,000-sq-m warehouse, men unload
crates of fruits from a truck pulled up to a spotless loading dock. A
quality-control expert samples every tenth crate; if the fruits are good
a team will ready them for delivery within hours to Reliance fresh
stores around different places like U.P and as far away as Hyderabad
and even Mumbai (formerly Bombay). If they are not, workers will
inspect the entire shipment and discard anything below standard.

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3) Merchandise from these collection processing centers are collected
and loaded for Wholesale mandis. As this merchandise is to be made
available by 4 A.M in morning thus deliveries in trucks are sent at
time depending upon:

TRANSIT TIME. Time required reaching destination i.e. mandis.

MARGIN TIME. Time period between a truck reaching mandi and


then Unloads. Can be 2 to 3 hours.

LOADING AND UNLOADING TIME.

4) From mandis where the trucks have been unloaded, roadside


vendors and pull carters Buy fruits and vegetables to supply in
households.

5) In case still some vegetables and fruits are not sold reliance
logistics own
Transportation sends them to reliance fresh stores.

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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 like Food world, Big
Bazaar and Nilgiris. But over come the short comings of these

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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 inefficient. There are several intermediaries,
each of whom adds his own profit margin to the cost. Besides, there is
huge wastage in transit. This offers potential for savings and profits. To
reduce the cost and increase the profit it has been sourcing out its
requirements from the farmers. For example, the leafy vegetables,
brinjals, tomatoes and green chilies in the Banjara Hills outlet were
sourced directly from farmers in Vantimamdi, Chevella and nearby
mandals in Ranga Reddy district of Andhra Pradesh. The supply chain
already has been backed by few hundred farmers the number is

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estimated to touch million in next five years. The main aim of the
reliance is to eliminate the intermediaries in the sector and reduce the
cost. Smaller stores have two advantages. They bring down the cost of
real estate (and increase profits). It is easier to find space for small
convenience stores in a quiet neighbourhood than for supermarkets in
high streets.

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.

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CORPORATE SOCIAL RESPONSIBILITY

Today when most of the companies are busy in making profits by any
means, there are few
Ones who are focused to return this society, a part of what they have
earned through this society. Reliance retail is one of them. Following
efforts of reliance retail are aimed at benefiting the society making
reliance socially responsible:

1) Reliance Retail aims at recruiting people from the underprivileged


community in society. "Hence, we are planning to train students
from corporation schools and schools run by NGOs. And, we
consider this as a part of our corporate social responsibility," he
said.
Asked whether the company will take students on an employment
basis and pay them a stipend during the course period, he said
that actually, it is planning to charge a "small fee" from those who
want to join the course "as we want to bring in some discipline and
regularity among the students", and will reimburse that once they
are inducted into service.

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

27
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.

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Major players in retail sector

Shoppers Stop:

Shoppers Stop is the pioneer of pan-nation one-stop retail outlets.


Starting in 1991 with a single store in Mumbai, it has now developed
more than 20 stores (total retail space crossed the 1 m mark in the
second quarter of FY07). The company has added 1,568,479 sq ft of
area during the year taking its total store area to 1,170,548 as on March
2007. The company has a wholly owned subsidiary Crossword a
specialty retail chain with over 32 stores spread across the country. This
store 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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Incorporated in 1987, Pantaloon Retail is among the pioneers in chain
retailing. It is the largest retailer in the country operating 350 stores
across segments in over 40 cities across the country and constituting 5
m square feet of retail space. Starting out with dedicated apparel stores
(Pantaloon), the company has stores across the cross-section of the
society. The companys business is broadly divided into 2 segments,
Lifestyle and Value retailing. On the apparels front it has Pantaloon (31
departmental stores), Central Malls (4 seamless malls as well as its other
concepts). These stores can be classified under Lifestyle Retailing. On
the general merchandise front it has Big Bazaar (51hypermarkets), Food
Bazaar (77 supermarkets) and Fashion Station (5 fashion stores) and
other delivery formats. These fall under Value Retailing.

more

The more. Chain of supermarkets, are bright and clean stores, at


convenient locations with layouts that allow ease of navigation. The
product display is well organised and facilitates ease of choice. The
stores have been designed by Fitch, the leading international retail
design firm.

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


to the many problems faced by housewives while shopping for their
daily needs. The retail offering from the Aditya Birla Group, has been
crafted after in-depth research of the needs and expectations of the
Indian consumers. more. is the answer to the shopping needs of the
Indian housewife who wants a modern and convenient option in her
neighbourhood, with an attractive and consistent range of products?
more. assures consumers the security of knowing that they are paying
the best price in the market for good quality products.

30
31
Research Objective

To study consumer buying behaviour of reliance fresh


To know about the consumer awareness towards Reliance
fresh.

32
Research Methodology

33
Research Problem

To make a comprehensive study of Reliance fresh & know the Buying


behaviour of customers in Reliance fresh.

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

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

50 respondents has selected as sample size for research.

Data representation technique and tools

Columns chart & Pie chart has used for representation.

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Understanding The Buying Behaviour Of Reliance Fresh
Consumers

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Definition
Purchase decision making pattern that is a complex amalgam of needs
and desires, and is influenced by 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.

Buying Behaviour is in the Advertising, Marketing, & Sales and


Purchasing & Procurement subjects.

Buying Behaviour appears in the definitions of the following terms:


marketing research, advertisement (ad), ACORN, economic
environment, activities, interests, opinions (AIO) and consumer
research.

Buying Behaviour appears in these other term: consumer buying


behaviour.

Model of Buying Behaviour

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Mark Buyer
eting Other s Buyers Buyers
Charac
Stim teristic Decisio
uli Stimuli s n Decision
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

When I have analysed the model of buying Behaviour finding that


people of JAIPUR are influenced by the marketing stimuli (4 Ps)
people are focused on price rather than product, place and promotion,
other factor which influenced people is the technological advancement.

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Cultural Social
Personal
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

Reference groups can have potent influence on behaviour in general,


and they may also be very influential on consumer behaviour,
considering the Consumer Goods Segment. Family and friends in
specific are considered before making a decision about purchasing a
product. But their purchase decision depends completely on self-
opinion.

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Where reference groups influence is operative, the advertiser should
stress not only the people who buy the product but also those who
influenced the purchasing decision.

The process may be viewed as starting when the consumer engages in


problem recognition. Problem recognition occurs when the consumer is
activated by awareness of a sufficient difference between his / her
concept of ideal situation. The action occurs only when the consumer
perceives a sufficiently large discrepancy between the actual and ideal
states.
Given that the consumer is aroused to action, the next state is internal
search for a quick and largely unconscious review of memory for stored
information and of an experience regarding the problem. This
information in the form of beliefs and attitude influence the consumers
preference towards band. If an internal search does not provide
sufficient information about

Products, or how to evaluate them, the consumer continues with a more


involved external search for information.

Any information stimuli are then subjected to information processing


activities. This process involves allocating attention to available stimuli,
deriving meaning from these stimuli. The alternating evaluation phase
involves comparing the information gained in the search process 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
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intention towards 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
outcomes. One such outcome is satisfaction as a result of direct
experience in using the brands. Satisfaction will affect the consumers
belief about the brand. Other outcome is dissatisfaction and post sale
doubt.

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(1). Gender of the consumer
Male & Female

14 36

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

ANALYSIS
Data collected for project from 50 responded
in which 36 are female which are 72% and 14 are male which are28% of the total respondent.

Interpretation-
In total respondent we analyse that most of the customer in this store are
female, and their demand is always considered at the time of taking the decision. Company
should try to attract new male customers by providing new schemes for them.

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(2). Age of customer
25&
15-20 21-25
above
18 20 12

Data Collected-
Data collected for this questionnaire is to know the maximum
age category of customers visiting Reliance fresh.

ANALYSIS
Data collected for project from 50 responded in which 18 are the age between
15-20 which are 36% and 20 are between age of 21-25 which 40% and 12 are between age of 25
& above which are 24 % of total respondent.

Interpretation-
In total respondent we analyse that most of the customers are
youth. I found that present generation believes in convenience shopping. It help the company to
employ young people to solve doubts of customers effectively.

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(3). How frequently do you visit Reliance
Fresh?
Daily Week Monthly Sometimes
4 28 15 3

Data Collected-
Data collected for this questionnaire is to know the shopping behaviour of
customer of reliance fresh.

ANALYSIS
Data collected for project from 50 responded amongst which 4 people that
is 0.08% people visit daily at reliance fresh and 28 customers i.e.56% visit weekly for shopping.
Out of these respondents 15 people i.e. 30% people visit monthly and out of these respondents 3
people i.e. 06% people visit fortnightly or sometimes.

Interpretation-
In total respondent we analyse that most of the customers are likely
to purchase on weekend. Therefore more schemes should be provided on weekends.

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(4). What is your main purpose of visiting
Reliance Fresh?
Purchase of Purchase of
Leisure time
Household other
activity
items products
5 25 20

Data Collected-
Data collected for this questionnaire to know the purpose of customers
to visit the store.

ANALYSIS
Data collected for project from 50 responded in which 10% customers visit
just for passing time, and 40% people visit for purchasing other products and 50% people visit
for purchasing household items.

Interpretation-
In total respondent we analyses that 50% people visit store to purchase
household items. Therefore more emphasis should be given for household and other products in
the store.

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(5) Is the store entrance welcoming?
Yes No

48 2

Data Collected-
Data collected from this questionnaire to know the cleanliness maintained
in store.

ANALYSIS
Data collected for project from 50 responded in which 48 i.e. 96%
customers feel that entrance is welcoming whereas 4% people feel the floor does not remain
clean.

Interpretation
In total respondent we analyses that most of the customer are satisfied
with the cleanliness in the store. Therefore I feel the store should remain clean.

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(6). who is the decision maker in your family?
Myself Parents Kids Spouse
10 40 0 0

Data Collected-
Data collected from this questionnaire to know the decision maker in family.

ANALYSIS
Data collected for project from 50 responded in which 20% people make decision for
purchase on their own whereas 40% people leave the decision for parents. Kids and other family
members are not involved in decision making.

Interpretation-
In total respondent we analyse that in many families parents take decisions for
purchasing a product. Thus, the store should offer more schemes and offers to increase the sales.

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(7).what is the priority of your shopping?
Quality Price Brand One stop shop
16 7 12 15

Data Collected-
Data collected from this questionnaire to know the priority adopted by people for
shopping.

ANALYSIS
Data collected for project from 50 responded in which 32% customers prefer quality for
purchasing and 14% people prefer price with discounts whereas 24% people prefer Branded
shopping and 30% people prefer one stop shop

Interpretation-
In total respondent we analyse that in many families parents take decisions for
purchasing a product. Thus, the store should offer more schemes and offers to increase the sales.

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(8). Are you satisfied with the variety of products at
Reliance Fresh?
YES NO
50 0

Data Collected-
Data collected from this questionnaire to know the priority satisfaction level of customers
with respect to variety of products at Reliance Fresh.

ANALYSIS
Data collected for project from 50 responded in which all people were satisfied with the
variety of products in reliance fresh. Therefore feedback was 100% from customers.

Interpretation-
In total respondent we analyse that customers are satisfied with the variety of products in
reliance fresh. Therefore, store should maintain the same variety or may improve it for satisfying
customers.

50
(9). Are you satisfied with the pricing strategy
followed by reliance fresh for its products?
YES NO
45 5

Data Collected-
Data collected from this questionnaire to know the priority satisfaction level of customers
with respect to variety of products at Reliance Fresh.

ANALYSIS
Data collected for project from 50 responded amongst them, 90% people are satisfied
with the pricing strategy whereas 10% people do not like the pricing strategy followed by store.

Interpretation-
In total respondent we analyse that the store should try to improve its pricing strategy by
providing discounts and offers for its customers.

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(10). what do you like the most at Reliance Fresh?
Display of
Price offers Variety of products
Merchandise
12 4 34

Data Collected-
Data collected from this questionnaire to know the liking of customers towards various
factors.

ANALYSIS
Data collected for project from 50 responded in which 68% of people like the variety of
products available in store. 24% people like the price offers and schemes and 8% people like
display of merchandise in store.

Interpretation-
In total respondent we analyse that customers are satisfied with the variety of products in
reliance fresh. But store should also improve the display of merchandise.

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(11). what factors are preferred while shopping at
Reliance fresh as compared to unorganised
market?
Price factor Quality Availability of products Customer service
4 5 32 4

Data Collected-
Data collected from this questionnaire to know the the preference of reliance fresh as in
compared to unorganised market.

ANALYSIS
Data collected for project from 50 responded in which 71% of people like the variety of
products available in store. 9% people like the price offered, 9% people like the customer service
in store and 11% people like Quality of store.

Interpretation-
In total respondent we analyse that customers are satisfied with the fresh availability of
products in reliance fresh. But store should also improve the customer service and quality.

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(11). Do you feel easy to search out the product
categories at Reliance?

Yes No
47 3

Data Collected-
Data collected from this questionnaire to know the placing of products in reliance fresh.

ANALYSIS
Data collected for project from 50 responded in which 94% of people are able to find
the products easily whereas 6% people cannot find the products.

Interpretation-
In total respondent we analyse that customers are satisfied with the placing of products
but proper directions and boards should be put up so that customer can easily find out the
product.

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(12). How do you feel about the customer service
of Reliance Fresh?
Excellent Average Poor
15 34 1

Data Collected-
Data collected from this questionnaire to know about customer service in store.

ANALYSIS
Data collected for project from 50 responded in which 68% people rate the service on
an average whereas 30% rate as excellent and 2% are dissatisfied with the service.

Interpretation-
In total respondent we analyse that majority of customers are satisfied with the customer
service. But it should be improved to gain maximum satisfaction from customers.

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(13).Does promotion schemes influence your
shopping decision?

Yes No
41 9

Data Collected-
Data collected from this questionnaire is to know that the promotion schemes influence
shopping decision of buyers.

ANALYSIS
Data collected for project from 50 responded. According to research 82% people
promotional schemes influence the buying decision whereas 18% people are not affected by
promotional schemes.

Interpretation-
In total respondent we analyse that majority of customers are affected by promotional
schemes. Thus there should be more of promotional schemes.

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(14).Are Promotion schemes easy to understand?

Yes No Sometimes
27 1 22

Data Collected-
Data collected from this questionnaire is to know that the promotion schemes are easy to
understand.

ANALYSIS
Data collected for project from 50 responded. According to research 54%people find
easy to understand the schemes whereas 44%people sometime do not understand the schemes.

Interpretation-
In total respondent we analyse that majority of customers are affected by promotional
schemes. Therefore offers and schemes should be well displayed.

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(15). Do you think shopping at Reliance fresh
saves time??

Agree Strongly agree Disagree


42 8 0

Data Collected-
Data collected from this questionnaire is to know about the time saving of customers
while shopping in reliance fresh.

ANALYSIS
Data collected for project from 50 responded. According to research 16% people
strongly agree whereas 84% people agree that shopping at reliance fresh saves their time.

Interpretation-
In total respondent we analyse that many people believe that shopping at reliance fresh
saves their time as all products are available under one roof.

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(16). what word of mouth would you extend
forward to your friends or relatives about Reliance
fresh?
Excellent Fair Poor
10 40 0

Data Collected-
Data collected from this questionnaire to know the satisfaction level of customer.

ANALYSIS
Data collected for project from 50 responded in which 80% say excellent 20% say fair.

Interpretation
In total respondent we analyse that many people are satisfied with the services provided
in reliance fresh.

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Finding
60
Majority of customers here is female.
Majority of customers are young.
Majority customers like to purchase all goods from
Reliance fresh.
The store entrance is welcoming.
Majority of customers visit on weekends.
The main purpose of visiting Reliance fresh is to purchase
the products.
Majority of customers prefer quality in shopping.
Customers like one stops shopping.
Customers are satisfied with the variety of products
available at store.
Majority of customers are satisfied with the Display of
products.
Services provided to customers are average.
Promotion schemes are not so easy to understand for
customer.
Majority of customers feel that shopping at Reliance fresh
saves their time
Majority of customers recommend Reliance fresh for
shopping.

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Limitations

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The project has some limitations because it is totally based on
efforts of individuals. Peoples may be careless and may not give correct
answer to the questions, because of so many reasons.

It is totally based on personal efforts of individuals.


Due to time constrains more time could not be devoted to
individual respondent.
Some of the consumers are unable to understand the
questionnaire.
Language is one of the worst problem, some of the consumers
are unable to understand English.
Some consumers are not interested in filling questionnaire.

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Suggestion

More promotion scheme should be used to penetrate the


market.
More emphasis should be given for household and other
products in the store.
The store should try to improve its pricing strategy by
providing discounts and offers for its customers.
Skilled employees should be higher because mostly
customers are young.
Promotion scheme should in such way that customer can
understand easily.
Improve the display of merchandise.
Service of store should be providing in such way which full
the need of the customer.

QUESTIONNAIRE
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Dear respondent, your valuable time and effort for filling this
questionnaire is highly appreciated. The information gathered
through this questionnaire will be used for academic purpose
only.
Name:-
Age:-
Sex: - M/F

(PLEASE TICK THE APPROPRIATE OPTION)


1. How frequently do you visit Reliance Fresh?
Daily
Weekly
Monthly
Sometimes

2. What is your main purpose of visiting Reliance Fresh?

Leisure time activity


Purchase of Household items
Purchase of other products

3. Is the store entrance welcoming? (Free of dust, not and if visit is after 6PM,
lights working.)
Yes no

4. Who is the decision maker in your family?


Myself Kids
Parents Spouse

5. What is the priority of your shopping?

Quality Brand

Price One stop shop

6. Are you satisfied with the variety of products at Reliance Fresh?


Yes No

7. Are you satisfied with the pricing strategy followed by reliance fresh for its
products?
Yes No

8. What do you like the most at Reliance Fresh?


Price offers Display of merchandise
Variety of products available to choose

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9. What factors are preferred while shopping at Reliance fresh as compared to
unorganised market?
Price factor Quality
Availability of products Customer service

10. Do you feel easy to search out the product categories at Reliance?
Yes No

11. How do you feel about the customer service of Reliance Fresh?
Excellent 5 4 3 2 1 poor
Average

12. Does promotion schemes influence your shopping decision?

Yes No

13. Are Promotion schemes easy to understand?


Yes No Some times

14. Do you think shopping at Reliance fresh saves time?


Strongly agree 5 4 3 2 1 Disagree
Agree

15. What word of mouth would you extend forward to your friends or relatives
about Reliance fresh?
Excellent 5 4 3 2 1 poor
Fair

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References

Referred books-

Marketing Management- Philip Kotler


Research Methodology C.R Kothari

Referred site-

www.ril.com
www.google.com
www.wickipedia.com

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