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A STUDY ON

CONSUMER BUYING BEHAVIOUR


WITH REFERENCE TO RELIANCE FRESH

Reliance Fresh
Supermarket
Address: Gachibowli Village, Cyber Residency,
Old Mumbai Highway, Indira Nagar,
Serilingampally, Hyderabad, Telangana 500032
Phone:040 6463 7502

TABLE OF CONTENTS
CHAPTER
1
2

TITLE
INTRODUCTION
INDUSTRY PROFILE & COMPANY

PROFILE
RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
LIMITATIONS OF THE STUDY

RESEARCH DESIGN
DATA ANALYSIS &

5
6

INTERPRETATIOIN
FINDINGS & SUGGESTIONS
BIBLIOGRAPHY & ANNUXURE

CHAPTER-I
INTRODUCTION

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
3

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. It has further been predicted that the retailing
industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5
billion.
The growth of scope in the Indian retail market is mainly due to the change in the consumers
behaviour. For the new generation have preference towards luxury commodities which have
been due to the strong increase in income, changing lifestyle, and demographic patterns which
are favourable.
Reliance Retail is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost
every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores in the
next 4 years in their retail division and plans to begin retail stores in 784 cities across the
country. The reliance fresh supermarket chain is rils rs 25,000 crore venture and it plans to add
more stores across different 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.
4

Today the entire firm engaged in a process of creating a life time value and relationship with
customers. This report start with discussion on the diversity of consumer behaviour and the need
for studying consumer buying behaviour and consumer as a related field of marketing .this can
be largely be attributed to the prevailing market situation .Today the company image is built
and made known by its customers. Thus success of the firm determined how effective it has been
in meeting the diverse consumer need and wants by treating each customer as unique and
offering products and services to suit has or her need.
Consumer buying behaviour will be a primary force in determining how this transition will
evolve. Getting closer to the customer in todays highly competitive landscape is essential for the
entire industry and is no longer just a retail issue. It requires all organisations across the supply
chain to work as a single enterprise, sensing and responding rapidly to consumer demand in a
co-ordinated manner. Detailed analysis of the changing patterns of consumer demand, shopping
trends.
This research report is based on to know the
1- Major factors influencing consumer buying behaviour.
2- Buying decision process.
3- The stage in buying decision process

CHAPTER 2
INDUSTRY PROFILE
&
COMPANY PROFILE

INDUSTRY PROFILE:
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the
entry of several new players. It accounts for over 10 per cent of the countrys Gross Domestic Product
(GDP) and around 8 per cent of the employment. India is the worlds fifth-largest global destination in
the retail space.

Market Size
The Boston Consulting Group and Retailers Association of India published a report titled, Retail 2020:
Retrospect, Reinvent, Rewrite, highlighting that Indias retail market is expected to nearly double to US$
1 trillion by 2020 from US$ 600 billion in 2015, driven by income growth, urbanisation and attitudinal
shifts.
The report adds that while the overall retail market is expected to grow at 12 per cent per annum, modern
trade would expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent.
Retail spending in the top seven Indian cities amounted to Rs 3.58 trillion (US$ 53.7 billion), with
organised retail penetration at 19 per cent as of 2014. Online retail is expected to be at par with the
physical stores in the next five years.
India is expected to become the worlds fastest growing e-commerce market, driven by robust investment
in the sector and rapid increase in the number of internet users. Various agencies have high expectations
about growth of Indian e-commerce markets. Indian e-commerce sales are expected to reach US$ 55
billion! by FY2018 from US$ 14 billion in FY2015. Further, India's e-commerce market is expected to
reach US$ 220 billion in terms of gross merchandise value (GMV) and 530 million shoppers by 2025, led
by faster speeds on reliable telecom networks, faster adoption of online services and better variety as well
as convenience@.
Indias direct selling industry increased 6.5 per cent in FY2014-15 to Rs 7,958 crore (US$ 1.19 billion)
and is expected to reach a size of Rs 23,654 crore (US$ 3.55 billion) by FY2019-20, as per a joint report
by India Direct Selling Association (IDSA) and PHD.

Investment Scenario
The Indian retail industry in the single-brand segment has received Foreign Direct Investment (FDI)
equity inflows totalling US$ 344.9 million during April 2000September 2015, according to the
Department of Industrial Policies and Promotion (DIPP).
With the rising need for consumer goods in different sectors including consumer electronics and home
appliances, many companies have invested in the Indian retail space in the past few months.

Amazon India expanded its logistics footprint three times to more than 2,100 cities and towns in
2015, as Amazon.com invested more than US$ 700 million in its India operations since July
2014.

Adidas AG, reknowned for its Adidas and Reebok sports brands, has become the first foreign
sports company to get government approval to open 100 per cent foreign-owned stores in India.

Walmart India plans to add 50 more cash-and-carry stores in India over the next four to five
years.

>Aeropostale, an American teen fashion retailer, has chosen to enter India over China, and
expects India to be among its top three markets over the next four years with revenue target of Rs
500 crore (US$ 75 million).

Opinio, a hyperlocal delivery start-up, has raised US$ 7 million in a Series-A funding from
Gurgaon-based e-commerce fulfilment service firm Delhivery along with investment from Sands
Capital and Accel Partners.

Textile major Arvind Limited has announced a partnership with Sephora, owned by LVMH Moet
Hennessy Louis Vuitton, a French luxury conglomerate, in order to enter into the beauty and
cosmetics segment.

Mobile wallet company MobiKwik has partnered with Jabong.com to provide mobile payment
services to Jabongs customers.

DataWind partnered with HomeShop18 to expand its retail footprint in the country. Under the
partnership, HomeShop18 and DataWind would jointly launch special sales programmes across
broadcast, mobile and internet media to provide greater access to the latters tablet range.

FashionAndYou has opened three distribution hubs in Surat, Mumbai and Bengaluru to
accelerate deliveries.

Abu Dhabi-based Lulu Group plans to invest Rs 2,500 crore (US$ 375 million) in a fruit and
vegetable processing unit, an integrated meat processing unit, and a modern shopping mall in
Hyderabad, Telangana.

Aditya Birla Retail, a part of the US$ 40 billion Aditya Birla Group and the fourth-largest
supermarket retailer in the country, acquired Total hypermarkets owned by Jubilant Retail.

With an aim to strengthen its advertising segment, Flipkart acquired mobile ad network AdiQuity,
which has a history of mobile innovations and valuable experience in the ad space.

US-based Pizza chain Sbarro plans an almost threefold increase in its store count from the current
17 to 50 over the next two years through multiple business models.

Government Initiatives
The Government of India has taken various initiatives to improve the retail industry in India.

The Ministry of Urban Development has come out with a Smart National Common Mobility
Card (NCMC) model to enable seamless travel by metros and other transport systems across the
country, as well as retail purchases.

IKEA, the worlds largest furniture retailer, bought its first piece of land in India in Hyderabad,
the joint capital of Telangana and Andhra Pradesh, for building a retail store. IKEAs retail outlets
have a standard design and each location entails an investment of around Rs 500600 crore (US$
7590 million).

The Government of India has accepted the changes proposed by Rajya Sabha select committee to
the bill introducing Goods and Services Tax (GST). Implementation of GST is expected to enable

easier movement of goods across the country, thereby improving retail operations for pan-India
retailers.

The Government has approved a proposal to scrap the distinctions among different types of
overseas investments by shifting to a single composite limit, which means portfolio investment
up to 49 per cent will not require government approval nor will it have to comply with sectoral
conditions as long as it does not result in a transfer of ownership and/or control of Indian entities
to foreigners. As a result, foreign investments are expected to be increase, especially in the
attractive retail sector.

The Road Ahead


E-commerce is expanding steadily in the country. Customers have the ever increasing choice of products
at the lowest rates. E-commerce is probably creating the biggest revolution in the retail industry, and this
trend would continue in the years to come. Retailers should leverage the digital retail channels (ecommerce), which would enable them to spend less money on real estate while reaching out to more
customers in tier-2 and tier-3 cities.
Both organised and unorganised retail companies have to work together to ensure better prospects for the
overall retail industry, while generating new benefits for their customers.
Nevertheless, the long-term outlook for the industry is positive, supported by rising incomes, favourable
demographics, entry of foreign players, and increasing urbanisation.

COMPANY PROFILE:

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

Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002

RELIANCE GROUP
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private
sector enterprise, with businesses in the energy and materials value chain. Group's annual
revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited, is
a Fortune Global 500 company and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of Reliance.
Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical
integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil
and gas exploration and production - to be fully integrated along the materials and energy value
chain.

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The Group's activities span exploration and production of oil and gas, petroleum refining and
marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and
retail.
Reliance enjoys global leadership in its businesses; The Group exports products in excess of
USD 15 billion to more than 100 countries in the world. There are more than 25,000 employees
on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited
(including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and
Reliance Industrial Infrastructure Limited.
Reliance Industries Limited is India's largest private sector conglomerate (and second largest
overall) with an annual turnover of US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal
year ending in March 2008 making it one of India's private sector Fortune Global 500
companies, being ranked at 206th position (2008). [1] It was founded by the Indian industrialist
Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing financial instruments like
fully convertible debentures to the Indian stock markets. Ambani was one of the first
entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of
Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhai's
ability to manipulate the levers of a controlled economy to his advantage.
Though the company's oil-related operation forms the core of its business, it has diversified its
operations in recent years. After severe differences between the founder's two sons, Mukesh
Ambani and Anil Ambani, the group was divided between them in 2006. In September 2008,
Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most
respected companies"

11

Subsidiaries of RIL

Reliance Petroleum
Ranger Farms Limited
Retail Concepts and Services (India) Private Limited
Reliance Retail
Reliance Global Management Services (P) Limited
Reliance Biopharmaceuticals
Reliance Ghatraj Services
Reliance Engineering Associates (P) Limited

Reliance Retail Limited


12

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 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.

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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.

14

Popular Profiles at Reliance Retail

Management team
Name
Mr. Mukesh Ambani
Nikhil R Meshwani
Hital R Meshwani
Madhumita Mohanti
Akashay Lokhande
Devandra Chawla
Zubin Nowrojee, Mangement

Designation
Chairman&Managing Director
Executive Director
Executive Director
Deputy General Manager
Area Manager-Operation &Sales
and NSO
Vice-President-Business
Head,
Merchandise Head
State Head Category

Formats of Reliance RETAIL


15

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

16

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 reliance fresh supermarket chain is rils rs 25,000 crore venture and it plans to add
more stores across different g, and eventually have a pan-India footprint by year 2011. The
super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-vegetarian products.
Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job
opportunities to a million people, according to the company. The company also has plans to
train students and housewives in customer care and quality services for part-time jobs

BACK GROUND
We can see many examples of businesses where, first we grow and then think of expanding but
Reliance is quite different. Reliance has developed such huge amount of resources and capital
over the years that whenever it steps into any segment it is not required to wait for growing
signal, thats why it always thinks of expanding without any boundaries. Reliance retail is next
Step by RIL which will be a pan India project.
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by
Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost
every metropolitan and regional area of India. Reliance plans to invest Rs 25000 crores in the
next 4 years in their retail division and plans to begin retail stores in 784 cities across the
country. The Reliance Fresh supermarket chain is RILs Rs 25,000 crore venture and it plans to
add more stores across different g, and eventually have a pan-India footprint by year 2011.
The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-vegetarian products.
Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job
opportunities to a million people, according to the company. The company also has plans to train
students and housewives in customer care and quality services for part-time jobs.
The company is planning on opening new stores with store-size varying from 1,500 sq ft to
3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products and dairy
products. Each store is said to be within a radius of 1-2 km of each other, in relation to the
concept of a neighbor store. However, this is only the entry roll-out that the company has
planned. Bangalore is said to have 40 stores in all by the end of the year.
17

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.

19

TRADITIONAL 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
CATEGORY
1
Fa
rm
ers

FARMERS
CATEGORY
2

Ow
nT
ran

sp
ort
a

tio
n

COLLECTIO
N
POINT/UNI
T

FARMERS
CATEGORY
3

ers
rm
a
F

s
ran
T
n
Ow

n
atio
t
r
po

RELIANCE OWN
LOGISTICS

nc
lia
e
R

RELIANCE
FRESH
OUTLETS

RF tics
is
og
L
wn
eo

PROCESSIN
G
UNIT/POINT

RELIANCE
FRESH
OUTLETS

Re
li

an
ce

RF
ow
nL
o

gis

tic

RELIANCE
FRESH
OUTLETS

20

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.

3) Merchandise from these collection processing centers are collected


and loaded for Wholesale mandis. As this merchandise is to be made
21

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
then Unloads. Can be 2 to 3 hours.

mandi and

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
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
23

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
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
24

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.

25

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
26

guaranteed market for the farmers produce, reducing transaction


costs and training the farmers in better and sustainable farming
practices. This initiative results in higher income and upgrading of
skills for the farmers, and reduced spoilage of produce (up to 35
percent) and better quality products f or Reliance retail stores.
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.

27

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:

Incorporated in 1987, Pantaloon Retail is among the pioneers in chain


retailing. It is the largest retailer in the country operating 350 stores
28

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.

29

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 in 7
business sectors: Retail, IT & Communications, Entertainment, Power,
Transmission, Tyres and Life Sciences. In 2001, it established Giant
Hypermarket

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
being designing, 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.

30

CHAPTER 3
RESEARCH METHODOLOGY

31

Research Objective
To study consumer buying behaviour reliance fresh customer of
Delhi
To know about the consumer awareness towards Reliance fresh.

32

Limitations of the study


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.

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.

33

Research design
Research Problem
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.
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 Delhi.

34

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

Sample size
425 respondents has selected as sample size for research.

Data representation technique and tools


Columns chart & Pie chart has used for representation.

35

CHAPTER-4
DATA ANALYSIS
&
INTERPRETATION

36

(1).

Gender of the consumer


Male
150

&

Female
275

Data CollectedData 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

InterpretationIn 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

(2).
10-20

Age of customer
21-50

51& above
37

123

230

72

Data CollectedData collected for this questionnaire to know


the age of customer of reliance fresh.

ANALYSIS
Data collected for project from 425 responded in which
123 are the age between 10-20 which are28.9% and230are between age
of 21-50 which are54.29%and 72 are between age of 51 & above which
are 16.9 % of total respondent

InterpretationIn 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

Daily ( ) week ( ) fortnightly ( ) once in month ( )

38

Daily

Week

Fortnightly

22

224

89

Once
month
90

in

Data CollectedData 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 are5.1% and224arelike to
purchase weekly which are52.27%and 89 are likely to purchase
fortnightly which are 20.9%, 90 likely to purchase once in a month
which are21.17% of total respondent

Interpretation-

39

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.

What do you mostly shop for at mentioned


store?
(4).

40

Vegetables ( ) Grocery ( ) cosmetic product ( ) all product ( )

Vegetable

Grocery

108

96

Cosmetic
product
21

All product
200

Data CollectedData 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 are47.00%
and108 are like to purchase vegetables which are25.41%and 96 are
likely to purchase grocery 22.5 which are 22.58.%, 21 likely to purchase
cosmetic product which are4.9% of total respondent

InterpretationIn 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.
41

(5).

Preference of shopping?
42

Quality ( ) Brand ( ) Price ( ) one stop shop


Quality

brand

Price

102

134

59

One
shop
130

stop

Data CollectedData 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 are31.50%
and130 are like to purchase in one stop shop which are 30.54%and 102
are like to purchase quality product which are 24.00%, only 59
respondent consider price which are 13.08.%.

Interpretation
In total respondent we analyses that most of the
customer are believe in reliance brand like to purchase qualitative
product in stop shop. Here I observed that people want to purchase
fresh and original product and want better service.

43

(6). which store do you kept in preference for


purchasing
Reliance Fresh ( ) Big apple ( ) other ( ) Local market
44

Local
market
244

Reliance fresh

Big apple

Other

83

80

18

Data CollectedData 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
are57.74% and 83 are like to purchase from reliance fresh which
are19.51%and 83 are likely to purchase from Big apple which are
18.82.%, 18 likely to purchase other which are4.2% of total
respondent

Interpretation
In my observation I found till today organised
retail sector 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.

45

(7). Do advertisement and promotion influence your


shopping decision?
Yes ( )

No ( )
46

Yes
390

No
35

Data CollectedData 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 are91.76% 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
218

no
89

Some time
118
47

Data CollectedData 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 are51.29% 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 & Hindi

How likely are you to recommend Reliance


Fresh to a friend or relative? Would you say the
chances are?
(9).

Excellent ( ) Good ( ) Fair ( ) Poor ( )


48

Excellent

Good

Fair

Poor

29

198

190

Data CollectedData 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 are6.8% and19 8 say good
which are 46.6%, 190 say fair which are 44.7% and 8 customer are those
say poor

Interpretation
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.

49

Which form of advertisement do you think is


most effective?
(10).

Print ( ) TV ( ) Radio ( ) telephone ( )


Print
74

TV
119

Radio
56

Telephone
176

50

Data CollectedData collected from this questionnaire to know


the better advertisement mode of promotion.

ANALYSIS
Data collected for project from 425 responded in
which 119 customer say TV which are28% and 74 say print which are
17.4%, 56 say Radio which are 13.17% and 176 customer are say
telephone.

Interpretation According responded result company can choose telephone as best for
advertisement and call indusial for attracting the customer

(11).

Yes
192

Did you get help from CSA when asked?

Yes ( ) No ( )

some time ( ) Never ( )

NO
95

Some time
124

Never
14

51

Data CollectedData collected from this questionnaire to know


about CSA performance.

ANALYSIS
Data collected for project from 425 responded in
which 192 customer say yes which are 45.1% and 95 say no which are
22.35%, 124 say some time which are 29.17% and 14customer are say
never which are 3.25%.

InterpretationAccording respondent customers are not fully satisfied company should


recruit new skilled employee for better performance.

52

CHAPTER-5
FINDINGS & SUGGESTIONS

53

Finding
1-Mazority of customers here is female.
2- Majority of customers are young.
3-Majority customers like to purchase all goods from
Reliance fresh.
4- Customers like one stops shopping.
5-Local market till today is the first choice of customer.
6-Advertisement is the biggest way to attracting the
customer.
7-Promotion scheme not so easy to under stand for
customer.
8-Most of customer is not fully satisfied with store.
9-Tele phone is the best way for attracting the customer.
10 Shortages of skilled workers.

54

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.

55

CHAPTER-6
BIBLIOGRAPHY & ANNUXURE

56

BIBLIOGRAPHY
Referred booksMarketing Research Paneerselvam
Research Methodology C.R Kothari
Principles of Marketing Philip Kotler
Referred site www.ril.com
www.google.com
www.wickipedia.com

QUESTIONNAIRE

Reliance Fresh
57

NAMEGENDERAGE
-

1-

Monthly income-

How offer do you shop


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 ( )
8- Are the Price of Reliance fresh is lower than the other
competitor
58

Yes ( ) No ( ) Equal ( ) no idea ( )


9- Which form of advertisement do you think is most effective?
Print ( )
10-

TV ( ) Radio ( )

Did you get help from CSA when asked?


Yes ( ) No ( )

some time ( ) Never ( )

59