A project Report submitted to BHAVNAGAR UNIVERSITY, BHAVNAGAR. IN PARTIAL FULFILLMENT FOR THE DEGREE OF
SWAMI SAHAJANAND COLLEGE OF COMMERCE & Mgmt. BHAVNAGAR UNIVERSITY BHAVNAGAR. BATCH 2008-09
DECLARATION
I, Bhumika Rajubhai Rathod, here by declare that the project report entitled A Study on consumer buying behavior of RELIANCE MART IN BHAVNAGAR. Under the guidance of Prof. NIDHI DAVE submitted in the partial fulfillment of the degree of Bachelor of Business Administration to BHAVNAGAR UNIVERSITY,BHAVNAGAR. Signature BHUMIKA RATHOD, T.Y.B.B.A. Roll no: 02
Preface
In the world of business, competition directs the market. For becoming a successful businessman, the knowledge and experience of various business tactics and practices are prerequisite. In the same manner for becoming a successful market leader, field study is an important so as to go close to market situation. By keeping this objective in mind Ive undergone specialization training at RELIANCE MART IN BHAVNAGAR. The report contains market research on A study on Consumer Buying Behavior of Reliance mart in Bhavnagar city..
Acknowledgement
The success of any task lies in the root of effective input. The task can never be accomplished without cooperation from others. I heartly acknowledge those whose continuous guidance has lead my project to a successful one. I wish to express my deep sense of gratitude to my guide Prof. NIDHI DAVE , who provided me valuable comments & suggestion for making this project, indeed she has served me her knowledge to sharpen & refine my knowledge about the subject.
I am also intended to all respondents for providing me the necessary data and information.
Executive Summary
The company had assigned me the topic A STUDY ON
CONSUMER BUYING BEHAVIOUR OF RELIANCE MART IN BHAVNAGAR CITY. because the company has opened the new branch of its Super Market in the BHAVNAGAR CITY.
For that I have selected to go for the survey in this area to find out the buying behavior pattern of the customers. For that I had done the Pilot Study of 20 units of population and I came to the 100 units of the Sample size.
I have used the questionnaire and face to face talking as the primary data and the website of the Company and the other details as the secondary data. Then I had done the Survey in this area and collected the data by the questionnaire. I had analyzed it and from that I have conclude the findings and the suggestions to the Company. The report will help to know the strengths and the weakness of the Company.
Index
Chapter No. 1. 2. 3. Particular Introduction of the Company Consumer Buying Behavior Buying Decision Process Problem Definition Problem Identification Scope of the Study
Objectives of the Study
4.
11-17
5. 6. 7. 8.
Hypothesis Testing Data Analysis Findings Suggestions Reference Materials Bibliography Appendices
List of Tables
6
Table No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26.
Particular Age Vise Distribution Education vise Analysis Occupational Analysis Income Vise Analysis Basic Awareness of the Concept Visit Made By the Respondents to the ASM Purchase From Super Market Like to Purchase from Super Market Mode of Purchase Like to Purchase Offered Scheme Belief of the Respondents (for Rich or not) Price Structure of the Super Market Basic Home Requirement Quality of Super Market Comfortable for Purchase Reason for Selecting Super Market Wide Range of Products Preference to purchase Place Image consciousness of the Respondents Reason for Selecting particular Place Respondents purchase only for Scheme Preference to Scheme Response to Purchase from Seasonal Store Criteria while Purchasing Product Only for Scheme & not for Scheme Vs Preference to Scheme Income Vs Quality of Super Market
Page No. 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43
List of Charts
Chart No. 1. Particular Age vise Distribution
7
Page No. 18
2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23 24 25.
Education vise Analysis Occupational Analysis Income Vise Distribution Concept Analysis Visit Ratio to Adanis Super Market Purchase Ratio Like to Purchase from Super Market Mode of Purchase Like to Purchase Scheme Belief Review Price Structure Home Requirement Satisfaction Quality of Super Market Comfortable for Purchase Reason for Selecting Super Market Belief on Wide Range of Products Preference to Purchase Place Image Consciousness Preference to the Super Market Reason for Selecting Particular Place Only for Scheme Purchaser Preference to Scheme Like to Purchase from Seasonal Store Criteria for Purchasing Product
19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
List of Graphs
Graph No. Particular Page No.
1. 2. 3. 4. 5.
Scheme Preference Preference to Super Market Vs Criteria for Selection Income Vs Quality of Super Market Super Market Quality Vs Preference to Super Market Occupation Vs Preference to Super Market
43 44 45 46 47
10
country and will bring about enormous spin-off benefits to the Indian economy and its various constituents.
Reliance Mart offers some unique services to the shoppers like tailoring, shoe repair, watch repair, a photo shop, gift services and laundry services, all within the store. The store also houses its own fresh bakery, serving hot, off-the-oven bread and bread products throughout the day and local savouries, an ice-cream train for the kids, a chakki, ready-made batter and loose tea and pickle for the housewives. Reliance Mart will also sell fine jewellery and fashion jewellery as part of its lifestyle section. Reliance Mart will also house a health and wellness store providing pharmaceutical drugs and other wellness products. For the shoppers convenience, the store has a cafeteria providing quality food and beverages for ready consumption, an ATM machine and a consumer service / membership desk to provide the customer a truly international shopping experience. The hypermarket also launched a host of Reliances own brands in select categories with superior quality and affordable prices like First Class, Network, Netplay, Team Spirit and Sparsh in Mens and Womens Formal / Casual and Ethnic wear, DNM- X in the jeans category for men and women, Panda for kids clothing and Grip in the luggage section. The footwear category will carry Zig in formal wear. Hi Attitude for semi -formal, Tosco for party wear and Monza for the sports enthusiast. There are many products that will be exclusively available in Reliance Mart stores only. Reliance Mart, with 61 check-out counters has for the first time in India introduced the Mobile POS system for faster check outs. This is aimed
11
at reducing customer wait-time. The store planning, atmospherics and layout has been designed specifically to provide a complete solution to the customer. Reliance Mart will remain open from 10:00 a.m. to 10:00 p.m., seven days a week. The store has over 400 highly skilled and trained customer sales representatives. Reliance Mart will continue to offer all its customers RelianceOne, a common membership and loyalty program across all its formats, which follows the philosophy of Earn Anywhere, Spend Anywhere. Reliance Mart will also provide easy and attractive finance options, including 0% financing for your purchases on select products. Reliance Retail plans to have a pan-India presence by opening over 30 Reliance Mart hypermarkets this year and over 500 by the end of 2010.
12
A buying process starts when the buyers recognize a problem or need. The need can be triggered by the internal or external stimuli.2 Marketers need to identify these kinds of stimuli that spark the need in the consumer and try to gather the information regarding these stimuli. It will help to the marketers in preparing the marketing strategy that triggers the consumer interest.
Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post purchase Behavior
Information Search As the need arise in the mind of the consumer, he/she tries to find out the related source to gather the information regarding that product, use, features, side-effect, etc.
14
He/She might meet the friends, use the broachers, personal visit, advertisement, dealers, family, etc. from that he/she tries to gather all the information that he/she can collect. Evaluation of Alternatives As the consumer has gathered the information the problem comes into the mind of the customer is that to which company he should go or for which brand he should purchase and this is the basic criteria for the selection of the product. The company should try to reach up to the customers choice set that is enough for the company to reach at that stage and ultimately if the product is having those kinds of value as customer need the customer can go for that. Purchase Decision: The purchase decision is very important because if the company has reached up to this stages the consumers final preference, that can achieve or not it can be seen here. The company should try to form all its strategy in this way so that the final decision should on his part than others. Post Purchase Behavior The post purchase behavior of the consumer should be measured because it gives the information regarding the consumers post purchase satisfaction, post purchase action and post purchase use and disposals of the product and services.
15
Problem Definition
Problem Identification
Problem definition is must for carrying out any research problem. As it adhere the researcher because the problem is known, the researcher will stick to the problem to find out the well defined solution. If the problem itself is well defined then no other diversification can happen. I have worked on the topic A study on consumer buying behavior of Reliance mart in Bhavnagar. The study is done by keeping the problem in mind.
Bhvangar city because the Company has opened new branch in this area and for that the research was mainly carried. The scope of the report is limited and the area comes around this.
To find out the peoples preference to the Scheme, their education level, their mobility to change. To find out their purchase pattern and thinking towards the Super Market.
It will comment over the Scheme and the Price Structure which is prevailing in the Super Market. It will reveal the information on the preference of the customers towards the Super Market and General Store. It will also reveal the information on the competitors strength in this area. It will also provide the information on the criteria that plays an important role behind the selection of the Super Market for the purchasing. It will help in analyzing the pricing factor that helps in capturing the market. It will help in deciding the target customer for the Super Market in this area. It will also provide the strength and weakness of the organization. It will also help in knowing the buying pattern of the people in this area. It will also help to anticipate how people would like to purchase i.e. their mode of purchase, their criteria while selecting the product and so on.
Research Methodology
Marketing Research as the systematic design, collection, analysis, and reporting of the data and findings relevant to a specific marketing situation facing the company.3 There are six steps involved in the Research process and are very significant for carrying out any research problem smoothly and efficiently. The process for the research which I have done is drawn as following.
Research Design
The research design is just related to the formulation of the problem or defining the problem that is very important task of the Marketing Management. They should be very careful that not to define problem too broadly and not too narrowly for the marketing researcher.4 In the nature, some research is exploratory while some is descriptive and the others are the casual research the first puts direct light for the solution and new ideas. Second, when the researcher is interested in knowing the characteristics of some group in terms of age, sex, educational level, occupation or income, a descriptive study may be necessary. and third, shows the cause and effect relation ship between these terms. Here, I have selected the descriptive study because of the nature of the problem is related to the descriptive study.
Research Plan
This is the stage where all the effort is placed for making the efficient plan to gather the needed information. The marketing manager should know the cost of the plan before approving to it. Designing the
20
research plan calls for the decision on the data sources, research approaches and research instruments. Data Source: There are two types of the data, primary data and secondary data. It is up to the research which data is available the secondary data is the data which is already exist which was gathered by the other person for their purpose.
I have collected the primary data for the purpose of the research on the problem. Research Approaches: The data can be collected with the different ways like observation, focus groups, survey, behavioral data, and experiments. I have selected the survey method for gathering the data because as stated earlier that I have selected the descriptive study for the research. And for that the survey is the best method for the descriptive study. Research Instrument: The instruments which can be used in research are questionnaire, psychological tools, mechanical tools etc. I have selected the questionnaire for that and it is well designed also for the collection of the data from the respondents.
21
Sampling Plan: After deciding for all the above points the researcher has to decide over the sampling plan. The points are as follows Sample unit must be defined by the researcher because it is the target population. As the sampling unit is defined the researcher should develop the sampling frame so that each unit can get chance for sampled. Large sample can give good and reliable data. Although the data collected from less than 1% of the population is also credible if collected properly.5
A researcher can use different contact method for the collection of data such as mail questionnaire, personal interviewing, online method and automated telephone survey.5 Among these the cheapest is the personal interview and I have selected it.
Sample Procedure
For the data collection I have used well designed and convenient questionnaire and the sample is collected randomly from the population so that there is no chance occur for the bios and the survey was made at the home to home and office to office for gathering the data.
22
Pilot Study
I had undertaken the pilot study for my null and alternate hypothesis are as following. H0 = Customers are Quality Conscious, H1 = Customers are not quality conscious. For this I had undertaken the pilot study of the 20 unit of the population and out of them 16 respondents i.e. 80% had responded positively to the null hypothesis and 4 respondents i.e.20% had replied negatively.
23
Data Analysis
Age Wise Distribution
Table 1
Response 24 54 18 4 100
24
Comment:-While looking at the graph it reveals that the most of the respondent is there in the survey comes under the age group of 21 to 35 years and has obtain the 53%.
36% 52%
9%
25
Comment:-As the chart reveals that more than 50% of the respondents have studies up to the graduation and about 36% have studied up to secondary education and in last comes the higher secondary is about 9% and only 3% of the respondents are illiterate.
Occupational Analysis
Table 3
No. of Respondent 26 38 36
Occupational Analysis
Diamond 26% Diamond Service Self Employed Service 38%
26
Comment:-Here, 38% of the respondents are doing service and 36% of the respondents are doing their personal business and 26% of the respondents working in the diamond factories.
27
17% 9% 9% 25%
33%
Comment:-About 33% of the respondents have an income between 500010000 and 25% respondents are having income between 1000015000 and about 17% respondents havent respond on their income.
Response 69 31 100
28
Concept Awareness
Right Wrong
Comment:-The chart shows that 69% people knows the right meaning of the Super Market or 69% respondent could gave the right view on the term Super Market.
29
Table-6
30
Comment:-As it shows that the 70% of the respondent have visited the Adanis Super Market.
Table-7
31
Purchase Ratio
No 14% Yes No
Yes 86%
Comment:-As the graph shows that the 86% of the respondent have purchased from the Super Market
Table-8
No 12%
Yes 88%
32
Comment:-As it shows that the 88% of the respondent would like to purchase from the Super Market.
Mode of Purchase
Table-9
33
Mode of Purchase
Chart-10
Response Yes No
No. of Respondent 66 34
34
Yes No
Comment:-It shows that the 66% respondent would like to purchase the scheme offered by the Super Market and 34% dont like to purchase the scheme offered by the Super Market.
35
Belief Review
Yes No
Comment:-Here, 37% people till believe that the Super Market is only for the rich person.
36
Table-12
Price Structure
Comment:-Here, 71% of the respondent believes that the price structure of the Super Market is as per the other shop, i.e. the same price charged by both. While 21% of the respondent believes that the price is higher than the prevailing one.
37
Yes, 218
100 0 Yes
No, 32 No
Comment:-The chart shows that round about 85% people are satisfied and believe that all the basic requirement of the home are available in the Super Market.
38
Table -14
Good 51%
Comment:-As the ratio of saying Good, Average and Excellent is round about 2:1:1. Which shows that most of the respondents consider that quality of Super Market is good.
Table-15
Comment:-It shows that 87% respondent believe that to purchase from the Super Market is comfortable & convenient one.
40
41
Comment:-The chart shows that most of the persons select Super Market for the Variety and Easy shopping and then comes to purchase the entire requirement and the discount.
Table -17
42
Yes No
85%
Comment:-It shows that 85% of the respondent believes that the Super Market provides the wide range of the selection while going to purchase.
Table 18
43
P re feren c e to P u rch as e P la c e
41% 59%
Comment:-As the chart shows that 59% respondent would prefer to purchase from the Super Market While 41% respondent prefer to purchase from the small shop comes around the resident area.
44
Image Consciousness
No 54%
Yes 46%
Yes No
Comment:-Here, 54% respondent believes that to purchase from the Super Market doesnt improve their image while 46% believes the so.
Table-20 Response Quality Economic Brand Image Service Less Purchase Total Chart-20
Less Purchase 5% Service 14% Brand Image 9% Economic 20% Quality 52%
Comment:-The chart shows that 50% of the respondents are quality conscious as they look first the quality. 20% of the respondent looks for economy and then 14% respondents see the service of the Super Market.
46
Table-21
Comment:-The chart shows that only 26% of the respondent purchase for the Scheme which is offered by the Super Market.
Preference to Scheme
47
Table-22 Response Buy 1 Get 1 Free Discount Free Gift Assured Gift Can not Say Total Chart-22 No. of Respondent 22 42 20 14 2 100
Preference to Schemes
Can not Say 2%
Discount Free Gift Free Gift 20% Discount 42% Assured Gift Can not Say
Comment:-The chart shows that 42% of the respondent would like to purchase the discounted product while 22% likes to purchase buy 1 get 1 free. 20% like to go for free gift and 14% likes to go for assured gift.
48
Table 23
25%
Yes No 75%
Comment:-The graph reveals that the 75% respondent as told by them they would like to purchase form the seasonal store of the Super Market.
49
Table 24
50
Criteria for purchasing the products No Quality 24% Quality No Quality Quality 76%
Comment:-Here, 69% of the respondents are price and quality conscious and remaining are quantity and scheme conscious.
Gift 3 11 14
Graph-1
No. of Respondent
Scheme Preference
100 80 60 40 20 0 80 39 17 24 Discount Buy 1 Get 1 37 25 12 11
Only Scheme
05
Preference to Scheme
Comment:-As the chart reveals that in both the customers would like to go for Discount then comes Buy 1 Get 1 Free and then comes Free gift and in last customer would like to go for Assured gift.
Income Vs Quality of SM
Table 27 Income Less than 5000 5000-10000 10000-15000 15000-20000 20000and more No Response Quality Response Good Average 3 3 16 9 13 6 5 2 5 0 9 0 Total 7 33 25 9 9 15
Excellent 1 8 6 2 4 6
52
Total Graph-3
No. of Respondent
50 40 30 20 10
29
51
20
100
Comment:-As the chart shows that the respondent whose income is in between 5000-10000 have given preference to good quality and the respondent having income 20000 and more have given highest percentage to the good quality and excellent.
15 00 15 0 00 020 20 00 00 0 0a nd m o N re o R es po ns e
50 00 n
50 00 -1
10 00 0-
ss
th a
00 00
Incom e
Le
53
Findings
Around 69% respondents could conclude the term Super Market rightly while the other were failed to conclude the term Super Market. Among the respondent who had concluded the term Super Market rightly are under graduate, graduate or post graduate and remaining had passed S.S.C. or H.S.C. or having a that kinds of business. Around 58% of the respondents said that they would like to purchase from the Super Market and among them 44% of the respondents purchase only for the scheme offered by the Super Market. Till around 37% people believes that the Super Market is only for rich person and till they are not good enough satisfied from the Super Market. Around 71% of the respondents have visited the Adanis Super Market and all are satisfied except some cases. On the price structure of the Super Market 71% had commented that the price is as like as in other shop and 21% had noted it is higher and around 8% believe it is lower than the other.
54
Around 50% respondent had said that quality is good and 23% had said it is on the average and 27% said it is excellent one. Around 87% respondent said that they could found all the basic requirement of the home in the Super Market. When the Customer selects the Super Market on the basis of the quality Adani has got the highest percentage of the response than other. Around 25% of the respondent go to the Super Market for Variety, 24% for Easy Shopping, 16% for discount, 10% for Bulk Buying, and 25% visit it for purchasing all the requirements. Around 85% of people agree that Super Market offers wide range of the product or selection. Till 41% of the respondent prefers to purchase from the General Store only because of nearness. Around 46% respondents believe that to purchase from Super Market improves their image. Around 47% of the respondents have given preference for purchasing from Adani, while in this category second highest preference goes to the Dhiraj & Sons.
55
Around 75% of the respondents had told that they would like to purchase from the seasonal store of the Super Market.
Around 42% of the respondents like to scheme having discount and 23% of the respondent likes to go for the scheme like buy 1 get 1 free. And 20% would like to go for free gift and 14% would like to go for assured gift while 2% can not comment over it.
56
Suggestion
The company should professionalize its staff. Somehow the customers have occasionally suggested this. The company should try to maintain the stock properly because the customers have to go without the product when they arrive at the store. Customers are both price and quality conscious they need moderate price and moderate quality. The company should try to maintain the fresh stock of the product because sometimes the product is not expired but till it became the worse one. Some customers have suggested that the company should provide a scheme in which the score card is there and on the basis of that score card they should get the benefit in the purchase.
57
Reference Material
Bibliography Marketing Management:- Philip Kotler Research Methodology:- C.R.Kothari.
www.tanishq.co
58
Questionnaire
Buying Behavior of theRELIANCE MART.
Name:___________________________________________________ Address:_________________________________________________ Occupation: - ____________ Phone No:- _______________ Age:-_______Literacy Level:-________Income :-(Monthly) _______
No [ ] No [ ] No [ ] BY Credit Card [ ] No [ ]
3. Have you ever purchased from any Super Market? 4. Would you like to purchase from Super market? 5. How would you like to purchase? 6. Would you like to go for purchasing scheme offered by the Super market? 7. Do you think that the Super market is only for the rich person?
59
Yes [ ]
No [ ] High [ ] Low [ ]
8. What do you think about the price structure of the supermarket? As like other Shop [ ] Yes [ ] No [ ] 9. Do you get your whole basic requirement from the Super market? 10. What do you think about the quality offered by the Super market? Excellent [ ] Good [ ] Average [ ] 11. Do you think that to purchase from the Super market is convenient? Yes [ ] No [ ] 12. Why you prefer Super market for shopping? Easy Shopping [ ] Discount [ ] Bulk Buying [ ] Purchase all the requirements Yes [ ] Shop [ ] Yes [ ] No [ ] Super Market [ ] No [ ] [ ] Variety [ ] 13. Do you think that the Super market offers the wide range of the selections? 14. From where you purchase? 15. Do you think that to purchase from Super market improves your image? 16. Why do you prefer to purchase from a particular place? Quality [ ] Economic [ ] Brand Image [ ] Service [ ] Small Quantity [ ] 17. Do you just purchase only for the scheme? Yes [ ] No [ ] Free Gift [ ] Assured Gift [ ] 18. Which kinds of scheme do you prefer? Buy 1 Get 1 Free [ ] Discount [ ] Yes [ ] Price [ ] No [ ] Quality [ ] 19. Would you like to purchase seasonal product of the Super market? 20. What do you think first while purchasing products? 21. Complains & Suggestions:60
61