aakash (repaired)111
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UNIVERSITY OF MUMBAI
RAYAT SHIKSHAN SANSTHAS
KARMAVEER BHAURAO PATIL COLLEGE
VASHI, NAVI MUMBAI.
COLLEGE CODE 33
PROJECT REPORT
ON
CONSUMER BUYING BEHAVOUR OF
RELIANCE FRESH
SUBMITTED BY
AKASH KAMALAKAR KHANDARE
PROJECT GUIDE
PROF.ARCHANA SALUNKHE
IN PARTIAL FULFILLMENT FOR THE COURSE OF
BACHELOR OF MANAGEMENT STUDIES (B.M.S)
T.Y.B.M.S (SEMESTER - V)
2011 2012
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RAYAT SHIKSHAN SANSTHAS
KARMAVEER BHAURAO PATIL COLLEGE
VASHI, NAVI MUMBAI 400 703
CERTIFICATE
This is to certify that Mr. AKASH KAMALAKAR KHANDARE
student of B.M.S. Semester V has completed his project on
CONSUMER BUYING BEHAVOUR OF RELIANCE FRESH.
And has submitted a satisfactory report under the guidance of
PROF. ARCHANA SALUNKHE in a partial fulfillment of B.M.S.
course of University of Mumbai in the academic year 2011-2012
. ..Project guide Coordinator Principal
..University Examiner
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Executive Summary
Retailing is the interface between the producer and theindividual consumer buying for personal consumption.This excludes direct interface between the manufacturerand institutional buyers such as the government and otherbulk customers. A retailer is one who stocks theproducers goods and is involved in the act of selling it tothe individual consumer, at a margin of profit. As such,retailing is the last link that connects the individualconsumer with the manufacturing and distribution chain.The retail industry in India is of late often being hailed asone of the sunrise sectors in the economy. AT Kearney,the well-known international management consultancy,recently identified India as the first most attractive retaildestination globally from among thirty emergent markets.
It has made India the cause of a good deal of excitementand the cynosure of many foreign and domestic eyes. Theentry of foreign and Indian retail giants like Wal-Mart,Metro, Reliance, Birla, Tata etc. made Indian market morecompetitive which is at cut throat level. So how retailerscan reach to their end customers, to win the mind shareand 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% ofthe country's GDP. Retail industry in India is expected torise 25% yearly being driven by strong income growth,changing lifestyles, and favourable demographicpatterns.It is expected that by 2016 modern retail industry in Indiawill be worth US$ 175- 200 billion. India retail industry is
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one of the fastest growing industries with revenueexpected in 2007 to amount US$ 320 billion and isincreasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growthin consumerism in urban areas, rising incomes, and asteep rise in rural consumption. It has further beenpredicted that the retailing industry in India will amount toUS$ 21.5 billion by 2010 from the current size of US$ 7.5billion.
The growth of scope in the Indian retail market is mainlydue to the change in the consumers behaviour. For the
new generation have preference towards luxurycommodities which have been due to the strong increasein income, changing lifestyle, and demographic patternswhich are favourable.
Reliance Retail is the retail chain division of relianceindustries of India which is headed by Mukesh Ambani.Reliance has entered into this segment by opening new
retail stores into almost every metropolitan and regionalarea of India. Reliance plans to invest rs 25000 crores inthe next 4 years in their retail division and plans to beginretail stores in 784 cities across the country. The reliancefresh supermarket chain is rils rs 25,000 crore ventureand it plans to add more stores across different g, andeventually have a pan-India footprint by year 2011to thecompany. .
AS The twentieth century has come to and we havemoved in to third millennium , we can see manydevelopment and changes taking place around us with allthe industries and firms within each industry trying to keep
pace with all the industries and firm within each industriestrying to keep pace with the changes and diverse need of
people . Marketer have regarded customer as the
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king and evolved all activities to satisfy him or her, thisconcept gaining more momentum and importance today.
More than a century ago, the father of our nation,Mahatma Gandhi, had made visionary and deepmeaningful statement at Johannesburg, South Africa in1980. A customer is the most important visitor of our
premises. He is not dependent on us .We aredependent 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 himfavour by serving him.
Today the entire firm engaged in a process of creating alife time value and relationship with customers. Thisreport start with discussion on the diversity of consumerbehaviour and the need for studying consumer buyingbehaviour and consumer as a related field of marketing.this can be largely be attributed to the prevailing marketsituation .Today the company image is built and made
known by its customers. Thus success of the firmdetermined how effective it has been in meeting thediverse consumer need and wants by treating eachcustomer as unique and offering products and services tosuit has or her need.
Consumer buying behaviour will be a primary force indetermining how this transition will evolve. Getting closerto the customer in todays highly competitive landscape isessential for the entire industry and is no longer just aretail issue. It requires all organisations across the supplychain to work as a single enterprise, sensing andresponding rapidly to consumer demand in a co-ordinatedmanner. Detailed analysis of the changing patterns ofconsumer demand, shopping trends.
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This research report is based on to know the1- Major factors influencing consumer buying behaviour.
2- Buying decision process.
3- The stage in buying decision process4- Awareness of consumer towards organised retail
sector
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Declaration
I hereby declare that this summer project report titled
Buying Behaviour/consumer satisfaction of Reliance
Fresh customer in NAVI MUMBAI. is the result of my
own effort in the training which I did as a part of the
curriculum, for the fulfilments of BACHELOR IN
MANAGEMENT STUDIES (BMS). It has not been
duplicated from any other earlier works and all information
provided in this report is genuine.
This report is submitted for the fulfilments of B.M.S. It has
not been submitted to any other university or for any other
degree.
SIGN___________
Date:___________NAME_______________
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(NAME & SIGN OFSTUDENTS)
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ACKNOWLEDGEMENTACKNOWLEDGEMENT
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 College our for the
constant and valuable guidance by him through out my
course.
I would like to take the pleasure of this opportunity to
express my heartful gratitude to my guide Professor (whotook personal interest and gave valuable suggestions
through out my field work and completion of the project.
I thank all my faculty members of BMS department for
their valuable suggestions throughout my course.
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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.
Contents
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14
S.N. INDEX PAGENO
Certificate 4Executive Summary 5Declaration 9Acknowledgement 11
CHAPTER- 1 INTRODUCTION&BACKGROUND
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1.1 Company Overview 151.2 Popular Profile 231.3 Supply Chain Model 301.4 SWOT Analysis 351.5 Major Player 40
CHAPTER-2 RESEARCH OBJECTIVE
2.1 Objective of Research 46CHAPTER-3 RESEARCH FINDING 48CHAPTER-4 RESEARCH LIMITATION 50CHAPTER-5 RESEARCH METHODOLOGY 51
5.1 Source of data & Collection tool 525.2 Sampling 535.3 Sample size 54
CHAPTER-6 ANALYSIS &INTERPRETATION 55
6.1 Meaning of consumer BuyingBehaviour
56
6.2 Interpretation of collect data 62CHAPTER-7 SUGESSION 79
APPENDIX 81REFERENCE 83
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CHAPTER 1
INTRODUCTION &BACKGROUND
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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."
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
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in the late seventies, Reliance pursued a strategy of
backward vertical integration - in polyester, fibre
intermediates, plastics, petrochemicals, petroleum refining
and oil and gas exploration and production - to be fully
integrated along the materials and energy value chain.
The Group's activities span exploration and production of
oil and gas, petroleum refining and marketing,
petrochemicals (polyester, fibre intermediates, plastics
and chemicals), textiles and retail.
Reliance enjoys global leadership in its businesses; The
Group exports products in excess of USD 15 billion to
more than 100 countries in the world. There are more
than 25,000 employees on the rolls of Group Companies.
Major Group Companies are Reliance Industries Limited
(including main subsidiaries Reliance Petroleum Limited
and Reliance Retail limited) and Reliance Industrial
Infrastructure Limited.
Reliance Industries Limited is India's largestprivate sectorconglomerate (and second largest overall) with an annual
turnover ofUS$35.9 billion and profit ofUS$4.85 billion
for the fiscal year ending in March 2008 making it one of
India's private sector Fortune Global 500 companies,
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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 AmbaniandAnil 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
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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
Reliance Retail Limited
Reliance is gearing up to revolutionize the retailing
industry in India. Towards this end, Reliance is
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aggressively working on introducing a pan-India network
of retail outlets in multiple formats.
A world class shopping environment, state of arttechnology, 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 prosperityfor 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.
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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 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
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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.
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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
Management team
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Name Designation
Mr. Mukesh Ambani Chairman&Managing
Director
Nikhil R Meshwani Executive DirectorHital R Meshwani Executive DirectorMadhumita Mohanti Deputy General ManagerAkashay Lokhande Area Manager-Operation
&Sales and NSODevandra Chawla Vice-President-Business
Head, Merchandise Head
Zubin Nowrojee,
Mangement
State Head Category
Formats of Reliance RETAIL
RelianceFresh,Reliance Mart,
Reliance Digital,
Reliance Trendz,
Reliance Footprint,
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Reliance Wellness,
Reliance Jewels,
Reliance Timeout and Reliance Super,
RELIANCE fRESH
APKA FRESH APKE PADAOS ME
Reliance fresh is the retail chain division of relianceindustries 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
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the next 4 years in their retail division and plans to begin
retail stores in 784 cities across the country. The reliance
fresh supermarket chain is rils rs 25,000 crore venture
and it plans to add more stores across different g, and
eventually have a pan-India footprint by year 2011. The
super marts will sell fresh fruits and vegetables, staples,
groceries, fresh juice bars and dairy products and also will
sport a separate enclosure and supply-chain for non-
vegetarian products. Besides, the stores would provide
direct employment to 5 lakh young Indians and indirect
job opportunities to a million people, according to the
company. The company also has plans to train students
and housewives in customer care and quality services for
part-time jobs
BACK GROUND
We can see many examples of businesses where, first we
grow and then think of expanding but
Reliance is quite different. Reliance has developed such
huge amount of resources and capital over the years that
whenever it steps into any segment it is not required to
wait for growing signal, thats why it always thinks of
expanding without any boundaries. Reliance retail is next
Step by RIL which will be a pan India project.
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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 Reliance
Fresh supermarket chain is RILs Rs 25,000 crore venture
and it plans to add more stores across different g, andeventually 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 withstore-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
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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 categorieslike 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 thecompany 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
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farmers and sell directly to the consumer removing
middlemen out of the way.
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
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a company report, RIL is targeting a turnover of Rs
40,000 crore in the next few years.
TRADITIONAL MODEL OF RETAIL RELIANCE
FARM TO FORKSUPPLY CHAIN MODELS of Reliance Retail
Reliance started its retail operations of RelianceFresh stores with following supply chain model.Procuring directly from the farmers and operatingwith moderate margin but mass selling was key to
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Reliance fresh operation for first few months. Thefollowing figure depicts the first Reliance fresh model
RELIANCE FRESH
31
FARMERS
CATEGORY 1
FARMERS
CATEGORY 2
FARMERS
CATEGORY
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RELIANCE FRESH
OUTLETS
RELIANCE FRESH
OUTLETS
RELIANCE FRESH
OUTLETS
PROCESSING
UNIT/POINT
COLLECTION
POINT/UNIT
32
RELIANCE OWNLOGISTICS
Farme
rsOwnTransportation
Relian
ceownLogistics
Relian
ceownLogistics
Farme
rsOwnTransportation
RFRF
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WHOLESALE TRADING (WST) :
Reliance formalized its second supply chain model toshift 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.
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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 gooda 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.
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 sentat time depending upon:
TRANSIT TIME. Time required reaching destination
i.e. mandis.
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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
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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 have 100% 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 specialized stores they
are also introducing new Reliance full-fledged
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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 farbetter 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
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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 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
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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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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
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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, itforayed 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:
Incorporated in 1987, Pantaloon Retail is among the
pioneers in chain retailing. It is the largest retailer in the
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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 underLifestyle 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.
M ore
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
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designed by Fitch, the leading international retail design
firm.
The stores promise a range of benefits to consumers andare 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.
RPG Group:
RPG Enterprises is one of Indias largest business
conglomerates, with a turnover of US$ 2.55 bn and assets
worth US$ 1.8 billion. Since its inception in1979, RPG
Enterprises has been one of the fastest growing groups in
India with more than 20 companies operating successfully
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in 7 business sectors: Retail, IT & Communications,
Entertainment, Power, Transmission, Tyres and Life
Sciences. In 2001, it established Giant Hypermarket
Provogue (India) Ltd :
Provogue (India) Ltd., (PIL) formerly Acme Clothing Pvt.
Ltd was incorporated in November 1997, converted in to a
public limited company in March 2005. It deals with
fabrics, dyestuffs, chemicals and textile machinery. PIL
operates in two core industry segments. The first beingdesigning, manufacturing and selling branded ready-made
garments and other accessories under the brand
'Provogue'. The second business is export of finished
fabrics, dyestuffs, chemicals and textile machinery to
several markets in African continent.
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CHAPTER 2
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Re se arch O bjective
To study consumer buying behaviour reliance fresh customer of
Delhi
To know about the consumer awareness towards Reliance fresh.
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CHAPTER 3
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Finding
1-Majority of customers here are female.
2- Majority of customers are young.
3- Customers like one stops shopping.
4-Local market till today is the first choice of customer.
5-Advertisement is the biggest way to attracting the customer.
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6-Promotion scheme not so easy to under stand for customer.
7-Most of customer is not fully satisfied with store.
8-Shortages of skilled workers.
CHAPTER 4
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Limitations
The project has some limitations because it is totally based on efforts
of individuals. Peoples may be careless and may not give correct answer to
the questions, because of so many reasons.
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It is totally based on personal efforts of individuals.
Some of the consumers are unable to understand the
questionnaire.
Language is one of the problem, some of the consumers are
unable to understand English.
Some consumers are not interested in filling questionnaire.
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CHAPTER 5
Re se arch M ethodology
Research Problem
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To make a comprehensive study of Reliance Fresh
&know the Buying behaviour & of Reliance Fresh
customers.
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.
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Secondary Data
Secondary Data which are used for research to know the history scop of
Retail industry are collected from already available resources like net and
other sources
Universe
Universe of this research is reliance fresh customer of Navi Mumbai.
Sampling technique
Random sampling is used for research project. I have given equal
weightages to my all respondent and chose them randomly without any
biased like gender, age, income culture.
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Sample size
425 respondents has selected as sample size for research.
Data rep resentation technique and tools
Columns chart & Pie chart has used for representation.
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CHAPTER 6
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Understanding The Buying Behavio u r Of
Reliance Fresh Consumers
Definition
Purchasedecision makingpattern that is a complex amalgam ofneeds 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 Behaviourappears in these other term: consumer buying behaviour.
Model of Buying Behaviour
58
http://www.businessdictionary.com/definition/purchase.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/pattern.htmlhttp://www.businessdictionary.com/definition/complex.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/factor.htmlhttp://www.businessdictionary.com/definition/role.htmlhttp://www.businessdictionary.com/definition/worker.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/norm.htmlhttp://www.businessdictionary.com/definition/aspiration.htmlhttp://www.businessdictionary.com/terms-by-subject.php?subject=2http://www.businessdictionary.com/terms-by-subject.php?subject=34http://www.businessdictionary.com/terms-by-subject.php?subject=34http://www.businessdictionary.com/definition/marketing-research.htmlhttp://www.businessdictionary.com/definition/advertisement-ad.htmlhttp://www.businessdictionary.com/definition/ACORN.htmlhttp://www.businessdictionary.com/definition/economic-environment.htmlhttp://www.businessdictionary.com/definition/activities-interests-opinions-AIO.htmlhttp://www.businessdictionary.com/definition/consumer-research.htmlhttp://www.businessdictionary.com/definition/consumer-buying-behavior.htmlhttp://www.businessdictionary.com/definition/purchase.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/pattern.htmlhttp://www.businessdictionary.com/definition/complex.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/factor.htmlhttp://www.businessdictionary.com/definition/role.htmlhttp://www.businessdictionary.com/definition/worker.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/norm.htmlhttp://www.businessdictionary.com/definition/aspiration.htmlhttp://www.businessdictionary.com/terms-by-subject.php?subject=2http://www.businessdictionary.com/terms-by-subject.php?subject=34http://www.businessdictionary.com/terms-by-subject.php?subject=34http://www.businessdictionary.com/definition/marketing-research.htmlhttp://www.businessdictionary.com/definition/advertisement-ad.htmlhttp://www.businessdictionary.com/definition/ACORN.htmlhttp://www.businessdictionary.com/definition/economic-environment.htmlhttp://www.businessdictionary.com/definition/activities-interests-opinions-AIO.htmlhttp://www.businessdictionary.com/definition/consumer-research.htmlhttp://www.businessdictionary.com/definition/consumer-buying-behavior.html -
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Market
ing Other Buyers Buyers BuyersStimu
li Stimuli
Charact
eristics Decision DecisionProcess
Produc
t
Economi
c Cultural
Problem
recognitio
n
Product
choice
Price
Technolo
gical Social
Informatio
n Search
Brand
choice
Place Political Personal
Evaluatio
n
Dealer
choicePromot
ion Cultural
Psycholo
gical Decision
Purchase
timing
Post
purchase
Purchase
amount
Behaviou
r
When I have analysed the model of buying Behaviour finding that people of
DELHI 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 SocialPersonal
culture
Referenc
e Groups
Psychologica
lCycle Stage Motivation
Subculture Family Economic PerceptionCircumstance
s Learning
Life Style
Beliefs and
Attitudes BU
RRoles and
Statuses
Personality
andSocial Class Self 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
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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 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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Many ad agencies conducted an in-depth study of consumer buying
behaviour and found that they all crave for peer acceptance and parental
non-influence. Beyond this they are an enigma.
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(1).
Gender of
the
consumer
Collected- Data
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
65
Male Female
150 275
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(2). Age of customer
10-20 21-50 51& above
123 230 72
Data Collected-
Data collected for this questionnaire to know theage of customer of reliance fresh.
ANALYSIS
Data collected for project from 425 responded in which 123
are the age between 10-20 which are 28.9% and230 are between age of 21-
50 which are 54.29% and 72 are between age of 51 & above which are 16.9
% of total respondent
nterpretation -
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 such
type which understand the problem of customer easily and rectify the problem
effectively.
(3). How offer do you shop
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Daily ( ) week ( ) fortnightly ( ) once in month ( )
Data Collected-Data collected for this
questionnaire to know the shopping behaviour of
customer of reliance fresh.
ANALYSIS
Data collected for project from
425 responded in which 22 are like to purchase daily
which are 5.1% and 224 are like to purchase weekly
67
Daily Week Fortnightly Once in
month
22 224 89 90
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which are 52.27% and 89 are likely to purchase fortnightly
which are 20.9%, 90 likely to purchase once in a month
which are 21.17% 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.
(4). What do you mostly shop for at
mentioned store?
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Vegetables ( ) Grocery ( ) cosmetic product ( ) all
product ( )
Vegetable Grocery Cosmetic
product
All product
108 96 21 200
Data Collected-
Data collected for this
questionnaire to know the products which are like to
purchase by the customer.
ANALYSIS
Data collected for project from
425 responded in which 200 customer are like to
purchase all product which are 47.00% and 108 are like to
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purchase vegetables which are 25.41% and 96 are likely
to purchase grocery 22.5 which are 22.58.%, 21 likely to
purchase cosmetic product which are 4.9% 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.
(5). Preference of shopping?
Quality ( ) Brand ( ) Price ( ) one stop shop ( )
Quality brand Price One stop
shop
102 134 59 130
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Data Collected-
Data collected from this questionnaire to know the
preference the shopping.
ANALYSIS
Data collected for project from 425 responded in which
134 customer are believe in reliance brand which are 31.50% 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
(6). Which store do you kept in preference for
purchasing
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Reliance Fresh ( ) Big apple ( ) other ( ) Local market ( )
Localmarket
Reliancefresh
Big apple Other
244 83 80 18
Data Collected-
Data collected from this questionnaire to know the preference of the
purchasing (comparison of store to other).
ANALYSIS
Data collected for project from 425 responded in which 244
customer are like to purchase from local market which are 57.74% 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 are 4.2% of total respondent.
Interpretation
In my observation I found till today organised retailsector didnt penetrate the market. Company should try to open new
convenience store and provide more scheme and good service to customer
to penetrate the market. Initial it may be costlier, but it will give long term
benefit.
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(7). Do advertisement and promotion influence
your shopping decision?
Yes ( ) No ( )
Yes No
390 35
Data Collected-
Data collected from this questionnaire to know the
effect of promotion scheme on purchasing.
ANALYSIS
Data collected for project from 425 responded in which 390
customer are like promotion scheme which are 91.76% and 35 are those
people which say promotion scheme doesnt effect on purchasing.
Interpretation In my observation I found promotion scheme is must to
sustain customer attract customer & influence the purchasing.
(8). Are Promotion scheme easy to understand?
Yes ( ) NO ( ) some time ( )
Yes no Some time
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218 89 118
Data Collected-
Data collected from this questionnaire to know
display of promotion scheme..
ANALYSIS
Data collected for project from 425 responded in which 218
customer say yes which are 51.29% and 89 are those which say no which
are 20.94 and 118 say some time.
Interpretation - Company should try making promotion scheme easy
understandable, promotion scheme should be in both in English &
(9).How likely are you to recommend Reliance Fresh
to a friend or relative? Would you say the chances
are?
Excellent ( ) Good ( ) Fair ( ) Poor ( )
Excellent Good Fair Poor
29 198 190 8
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Data Collected-
Data collected from this questionnaire to know the
satisfaction level of customer.
ANALYSIS
Data collected for project from 425 responded in
which 29 customer say excellent which are 6.8% and 198 say good which are
46.6%, 190 say fair which are 44.7% and 8 customer are those say poor.
Interpretation
In my observation I found that only 46.6%
customer are fully satisfied from the store company should try satisfy the
customer by providing better service and rectify their problem immediately.
(10). Which form of advertisement do you think is
most effective?
Print ( ) TV ( ) Radio ( ) telephone ( )
Print TV Radio Telephone
74 119 56 176
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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 are 28% and 74
say print which are 17.4%, 56 say Radio which are 13.17% and
176 customer are say telephone.
Interpretation -
According responded result company
can choose telephone as best for advertisement and call indusial
for attracting the customer.
(11). Did you get help from CSA when asked?
Yes ( ) No ( ) some time ( ) Never ( )
Yes NO Some time Never 192 95 124 14
Data Collected-
Data collected from this questionnaire to know about CSA performance.
ANALYSIS
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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 14 customer are say never which are 3.25%.
Interpretation-
According respondent customers are not fully satisfied company should
recruit new skilled employee for better performance.
CHAPTER 7
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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.
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Appendix
Reliance Fresh
NAME-
GENDER-
AGE - Monthly income-
1- How often do you visit shop?
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Daily ( ) Week ( ) Fortnightly ( ) Once in month ( )
2- What do you mostly shop for at mentioned store?
Vegetables ( ) Grocery ( ) Cosmetic product ( )
3- Which store do you shop?
Reliance Fresh ( ) Big apple ( ) Other ( ) Local market ( )
4- Preference of shopping?
Quality ( ) Brand ( ) Price ( ) One stop shop ( )
5- Do advertisement and promotion influence your shopping decision?
Yes ( ) No ( )
6- Are Promotion scheme easy to understand?
Yes ( ) NO ( ) Some time ( )
7- How likely are you to recommend Reliance Fresh to a friend or
relative? Would you say the chances are?
Excellent ( ) Good ( ) Fair ( ) Poor ( )
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8- Are the Price of Reliance fresh is lower than the other competitor?
Yes ( ) No ( ) Equal ( ) No idea ( )
9- Which form of advertisement do you think is most effective?
Print ( ) TV ( ) Radio ( )
10- Did you get help from CSA when asked?
Yes ( ) No ( ) Some time ( ) Never ( )
References
Referred books-
Marketing Research Paneerselvam
Research Methodology C.R Kothari
Principles of Marketing Philip Kotler
Referred site-
www.ril.com
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www.google.com
www.wickipedia.com
http://www.google.com/http://www.wickipedia.com/http://www.google.com/http://www.wickipedia.com/