reliance fresh project study

A Project Study Report at RELIANCE Fresh Titled “A comparative Study on Consumer Satisfaction At Various Income Levels of Bikaner City With respect to Reliance Fresh Products” for the Award degree of Master of Business Administration Submitted By: Submitted To: Ishali harsh Mr.kamal modi MBA 4thSEM Submitted in partial fulfillment

r

Lecture

2008-2010 Marudhar Engineering college

Reliance fresh

PREFACE As without any digit, there is no meaning of zero’s; in the same way, without any practical experience there is absolutely no relevance of just the theoretical kn owledge. A management program remains incomplete without any practical training i.e. without the test of any real business and management problems. A person just cannot learn swimming by merely reading hundreds of books on it; h e practically swims in the water to learn swimming. Similarly, management traini ng remains incomplete without the taste of real business scenario and management problems. This practical training develops a feeling about the industrial management envir onment and gain much more fruitful insight.

Acknowledgement Gratitude is the language of heart, when the language is from the heart, emotion s prevails and when emotions prevails words fails.” I express my sincere thanks to my project guide, of Management and technology, for guiding me right form the inception till the succ essful completion of the project. I sincerely acknowledge her for extending thei r valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages o f this project. I would also like to thank the supporting staff Mr.Ramesh Arora (Head Product Li ne) for their help and cooperation throughout our project.

(Signature of Student) Ishali harsh

Executive Summary In the recent one-two years Bikaner city growing at a fast pace, in terms of inc ome level, life style, spending pattern of the consumers, If we go before 10 ye ars back Bikaner condition was not like current time so it’s very essential part t o have a deep knowledge about changing perception of customers. Now the situatio n has been change people prefer to do shopping from these convenience retail out lets. There would be various reasons for that as:More advancement and awareness among people from promotional activities. Prompt services provided by the retail outlets. Changing customer’s perception regarding purchasing from big retail outlet s. Changing Life style of Bikaner. Income of the people growing Day by Day. Influence of T.V & Society upon Child.

More Facilities provided by retail outs, they feel good to do shopping f rom big outlets. Increasing in number of working women. But the major reasons behind are:1) Increasing income level of Bikaner people especially due to implementati on of the 6th pay commission, this increase the disposable income of the people. 2) There is also raise in private jobs and adding to increase income level in Bikaner. The above reasons tend to manipulate the 3 situations. A) Consumption pattern of consumers. B) Spending power of people. C) And the way people purchase the products of their daily necessities. This study is completely based on customer satisfaction at various income levels with respect to Reliance fresh products in Bikaner. People here in Bikaner are moving towards convenience store because as the priva te employment is increasing in Bikaner. This tends to people has less time for s hopping. So they prefer to shop from convenience stores, discounting stores. Rel iance fresh is the brand which providing all the daily necessities products unde r the one roof with good ambience for shopping and atmosphere is also appreciabl e. Observation shows that behavior of line staff is really good and not biased d ue to the amount of spending for purchase. The given management research is based on income level and the customer satisfac tion, for the study the same two hypothesis are formulated, one hypothesis is st ate that “There is no significance difference between Income level and consumer satisfaction with respect to Reliance Fresh products” and the other one is “There is significance difference between Income level and consumer satisfaction with r espect to Reliance Fresh” for testing the hypothesis chi- square test is employed which will reach to the final results of the study. The inference from the study depicting that the location of Reli ance fresh outlets are basically in the area where people are having good income level and also consisting women from the age groups of 25- 30 and above and are more prone towards shopping from these convenience store outlets.

Today the entire firm engaged in a process of creating a life time value and rel ationship with customers. This report start with discussion on the diversity of consumer behaviour and the need for studying consumer buying behaviour and consu mer as a related field of marketing .this can be largely be attributed to the p revailing market situation .Today the company image is built and made known by i ts customers. Thus success of the firm determined how effective it has been in m eeting the diverse consumer need and wants by treating each customer as unique a nd offering products and services to suit has or her need. Consumer buying behaviour will be a primary force in determining how this transi tion will evolve. Getting closer to the customer in today’s highly competitive lan dscape 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 ente rprise, sensing and responding rapidly to consumer demand in a co-ordinated mann er. Detailed analysis of the changing patterns of consumer demand, shopping tre nds. This research report is based on to know the 1Major factors influencing consumer buying behaviour. 2Buying decision process. 3The stage in buying decision process 4Awareness of consumer towards organised retail sector

CHATER TOPIC CHAPTER- 1 INTRODUCTION &BACKGROUND Introduction to industry CHATER-2 Company Overview Popular Profile Supply Chain Model Major Player CHAPTER-3 RESEARCH METHODOLOGY &DESIGN Objective of Research Type of Research Source of data & Collection tool Sampling & Sample size CHAPTER -4 Facts &finding CHAPTER-5 ANALYSIS & INTERPRETATION Interpretation of collect data CHAPTER-6 SWOT analysis CHAPTER-7 Conclusion & limitation of research CHAPTER-8 Recommendation & suggestion CHAPTER-9 Appendix CHAPTER-10 Biblography

Contents

CHAPTER 1 INTRODUCTION &BACKGROUND

Introduction to the Industry What is Retail? Retailing is a business activity that involves selling products/ services to cus tomers for their non-commercial, individual or family use. Basically it is the l ast stage of the distribution process. A retail store may have limited area reac h in a locality or may have entire city or district depending on type of merchan dise and franchise, authorized dealership and availability of particular goods o r brands in the market. Retailing: An overview Retailing World’s largest private industry US$ 6.6 trillion sales annually Indian retailing Largest employer after agriculture - 8% of population Highest outlet density in world Around 12 mn outlets Organized retailing – Only 3% but growing at 30% Top 6 cities accounts for 66% of total organized retailing Long way to go Retail Industry in India:-

Indian retail industry is the largest and fastest growing industry in India, gen erating employment around 8% and contributing to 10% of the country’s GDP. With st rong income growth, changing life style and favorable demographic pattern it is expected to rise 25% yearly. It is also expected that by 2016 its worth will be US$ 175-200 billion. A further increase of 7-8% is expected in the industry of r etail by growth in consumerism in urban areas, rising income and steep rise in r ural consumption. Retailing in India is witness to the boom in terms of modern retailing formats, shopping malls etc. the future of retailing for any product across the country w ill definitely be in malls where the consumer can get variety, quality and ambie nce. The organized retailing sector in India is only 3% and expected to raise 25-30% by the year 2010. There are 325 departmental stores, 300 new malls and 1 500 supermarkets are under construction, and this shows that there is tremendous scope for growth in the organized Indian retail market. New generation have pr eference towards luxury products which have been due to strong growth in income, changing lifestyle and demographic pattern which are favorable. It shows that t his sector is having very vast scope for growth. The high growth in the retail sector in India is primarily driven by the impact of rising incomes, increasing urbanization, greater brand competition, changing lifestyles, and favorable demographic patterns is expected to grow annually at 2 5 percent. India s vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Many Indian companies are entering in the Indian retail market which giv ing boom to the Indian organized retail market. One such company is Reliance Ind ustry limited. Player (I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) for retail industry in India:Shoppers’ Stop Westside Pantaloon (Big Bazar) Lifestyle RPG retail (Food world, Music world) Crossword Wills lifestyle Globus Piramals (pyramid & Crossword) Ebony Retail Holdings Ltd.

Growth factors in Indian organized retail sector:Rise in working population which is young, heavy pay-packets, increasing nuclear families in urban areas, rise in working women, more disposable income and consumer aspiration, western culture influence, growth in expenditure for lu xury items, lack of time, these all are the factors for growth in Indian organiz ed retail sector

Classifying Indian retail: Modern Format retailers Supermarkets (Foodworld) Hypermarkets (Big Bazaar)

 

Department Stores (S Stop) Company Owned Company Operated Traditional Format Retailers Kiranas: Traditional Mom and Pop Stores Kiosks Street Markets

Recent Trends : Retailing in India is witnessing a huge revamping exercise as can be seen in the graph India is rated the fifth most attractive emerging retail market: a potential gol dmine. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade ) makes up 3 percent or US$ 6.4 billion As per a report by KPMG the annual growth of department stores is estimated at 2 4% Ranked second in a Global Retail Development Index of 30 developing countries dr awn up by AT Kearney.

(Chapter 2) Introduction to the Organization (Company overview)

RELIANCE "Growth has no limit at Reliance. I keep revising my vision. Only when you can d ream 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 large st 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 com pany, Reliance Industries Limited, is a Fortune Global 500 company and is the la rgest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and grow th 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 pro duction - 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, plastic s 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 m ore 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 Lim ited. 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 o f US$ 4.85 billion for the fiscal year ending in March 2008 making it one of Ind ia 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 conv ertible debentures to the Indian stock markets. Ambani was one of the first entr epreneurs 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 i s largely due to Dhirubhai s ability to manipulate the levers of a controlled ec onomy to his advantage. Though the company s oil-related operation forms the core of its business, it ha s diversified its operations in recent years. After severe differences between t he founder s two sons, Mukesh Ambani and Anil Ambani, the group was divided betw een them in 2006. In September 2008, Reliance Industries was the only Indian fir m featured in the Forbes s list of "world s 100 most respected companies"

 

 

 

 

 

 

 

 

 

 

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 Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, Reliance is aggressively working on introducing a pan-India network o f retail outlets in multiple formats. A world class shopping environment, state of art technology, a seamless supply c hain infrastructure, a host of unique value-added services and above all, unmatc hed 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 manufacturer s 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 pa rtners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsid

 

iary of RIL, was set up to lead Reliance Group’s foray into organized retail. With a 27% share of world GDP, retail is a significant contributor to overall ec onomic activity across the world. Of this, organized retailing contributes betwe en 20% to 55% in various developing markets. The Indian retail industry is pegge d at $ 300 billion and growing at over 13% per year. Of this, presently, organiz ed retailing is about 5%. This is expected to grow to 10% by 2011. RRL has embar ked 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 Indi a. RRL launched its first store in November 2006 through its convenience store form at ‘Reliance Fresh’. Since then RRL has rapidly grown to operate 590 stores across 1 3 states at the end of FY 2007-08. RRL launched its first ‘Reliance Digital’ store i n April 2007 and its first and India’s largest hypermarket ‘Reliance Mart’ in Ahmadaba d in August 2007. This year, RRL has also launched its first few specialty store s for apparel (Reliance Trends), footwear (Reliance Footprints), jewellery (Reli ance Jewels), books, music and other lifestyle products (Reliance Timeout), auto accessories and service format (Reliance AutoZone) and also an initiative in th e health and wellness business through ‘Reliance Wellness’. In each of these store f ormats, RRL is offering a unique set of products and services at a value price p oint 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 opera te in 57 cities. During the year, RRL also focused on building strong relationships in the agri-b usiness value chain and has commenced marketing fruits, vegetables and staples t hat 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 pr ogress in establishing state-of-the-art staples processing centres and expects t o 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 i n 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 p artners in apparel, optical and office products businesses. Further, RRL will co ntinue to seek synergistic opportunities with other international players as wel l. 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 Name Designation Mr. Mukesh Ambani Chairman&Managing Director

Nikhil R Meshwani Executive Director Hital R Meshwani Executive Director Madhumita Mohanti Deputy General Manager Akashay Lokhande Area Manager-Operation &Sales and NSO Devandra Chawla Vice-President-Business Head, Merchandise Head Zubin Nowrojee, Mangement State Head Category

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

RELIANCE fRESH APKA FRESH APKE PADAOS ME Reliance fresh is the retail chain division of reliance industries of India whic h 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. Rel iance plans to invest rs 25000 crores in the next 4 years in their retail divisi on and plans to begin retail stores in 784 cities across the country. The relian ce fresh supermarket chain is ril’s rs 25,000 crore venture and it plans to add mo re 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 an d supply-chain for non-vegetarian products. Besides, the stores would provide di

rect employment to 5 lakh young Indians and indirect job opportunities to a mill ion people, according to the company. The company also has plans to train studen ts 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 ex panding but Reliance is quite different. Reliance has developed such huge amount of resource s and capital over the years that whenever it steps into any segment it is not r equired to wait for growing signal, that’s why it always thinks of expanding witho ut 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 whic h 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. Rel iance plans to invest Rs 25000 crores in the next 4 years in their retail divisi on and plans to begin retail stores in 784 cities across the country. The Relian ce Fresh supermarket chain is RIL’s Rs 25,000 crore venture and it plans to add mo re 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 supp ly-chain for non-vegetarian products. Besides, the stores would provide direct e mployment to 5 lakh young Indians and indirect job opportunities to a million pe ople, 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, FM CG 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 ha ve 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 s tocking. Reliance Retail has decided to minimize its exposure in the fruit and v egetable business and position Reliance Fresh as a pure play super market focusi ng 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 polit ical reasons, and partly due to its inability to create a robust supply chain. T his is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in Hyderabad last October, not only did the company said the store’s main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its “farm-to-fork’’ theory. The ide a the company spoke about was to source from farmers and sell directly to the co nsumer removing middlemen out of the way.

FARM TO FORK The Reliance retail company sources say it is setting aside Rs 50,000 crore to b uild 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 t o service these. It has already rolled out 177 Reliance Fresh stores across majo r towns in 11 states. According to 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 FORK”

SUPPLY CHAIN MODELS of Reliance Retail Reliance started its retail operations of Reliance Fresh stores with follo wing supply chain model. Procuring directly from the farmers and operating with moderate margin but mass selling was key to Reliance fresh operation for first f ew months. The following figure depicts the first Reliance fresh model RELIANCE FRESH

WHOLESALE TRADING (WST) :

Reliance formalized its second supply chain model to shift itself from grocery r etailer to grocery supplier by focusing and establishing itself in Mandi’s. STEPS IN WTS MODEL: 1) Reliance has owned farms on contract basis for production of specific crop wh ich 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 relianc e 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 vegeta bles, spinning them dry and then heaping them in small plastic packets before pl acing them in plastic transport crates. At the other end of the 5,000-sq-m wareh ouse, men unload crates of fruits from a truck pulled up to a spotless loading d ock. 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 (formerl y 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 mandi’s. As this merchandise is to be made available by 4 A.M in morning thus deliveries in trucks are sent at time depending upon: TRANSIT TIME. – Time required reaching destination i.e. mandi’s. MARGIN TIME. – Time period between a truck reaching n be 2 to 3 hours. LOADING AND UNLOADING TIME. 4) From mandi’s where the trucks have been unloaded, roadside vendors and carters Buy fruits and vegetables to supply in households. pull mandi and then Unloads. Ca

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

Product segments offered by Reliance fresh in Bikaner:-

Pricing strategy:Discount pricing, Credit card acceptance, Competitive pricing, Price marketing i n paisa, Distribution strategy:Target urban cities, Up to mark inventory, Intermidiatory profit margin Promotion strategy:Advertising, Sales promotion, Festive season special offer, Live announcement an d spot discounts, Reliance membership scheme, Promotes new products, Organizing events, Providing gifts free goods (All these are the common strategies adopted by all Reliance outlets)

Private label products offered by Reliance fresh:Private label products are those products of the company that they don’t h ave to outsource from someone else. The Reliance fresh in its outlets has been s elling private labels in various categories ranging from daily necessities like grocery, vegetables and fruits to home care products, apparels, consumer durable s, and even automotive accessories. The products introduced in home products such as wheat flour, pulses, ed ible oil, noodles, ketchup, detergent, snack items etc. mango drink, orange drin k under good life brand, dairy products under dairy pure brand and gain good amo unt of profits from out of it. LIFE AT REILIANCE: Growth through Challenges Life at Reliance is challenging, fulfilling and exciting! Reliance offers access to world-class resources for personal and professional gr owth. At Reliance, you ll have the chance to take on challenging responsibilities, wor king with top-notch, world-class professionals from around the globe. You will b e part of a culture of excellence. You would not be just working for a living; Y ou will be part of a global team that s focused on making a difference in the ev eryday lives of people. People are central to Reliance s growth strategy. A large in-house pool of intel lectual capital is the driving force behind Reliance s rapid growth, and is one of its competitive advantages. Reliance is a young company, with an average age of 37 years. Talent is drawn from diverse academic and professional backgrounds. World-class exposure, growth opportunities and competitive compensation packages offered by Reliance enables it to attract and retain excellent talent. Reliance targets the world market for talent, provides global perspectives and h as a large number of expatriates on its rolls. Reliance endeavours to create a w orkplace where every person can reach his or her full potential

 

 

 

 

Major players in retail sector Shoppers Stop: Shoppers’ Stop is the pioneer of pan-nation one-stop retail outlets. Starting in 1 991 with a single store in Mumbai, it has now developed more than 20 stores (tot al 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 t o 1,170,548 as on March 2007. The company has a wholly owned subsidiary – Crosswor d – a specialty retail chain with over 32 stores spread across the country. This s tore specialises in books, gift articles and stationery. During the quarter, Cro ssword opened its first store and 2 ‘Stop & Go’ stores at the Mumbai domestic airpor t. Further, it forayed into airport retailing through a joint venture with The N uance Group AG of Switzerland. The company has also made an entry into the enter tainment 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 o n 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 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 company’s 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 Bazaa r (77 supermarkets) and Fashion Station (5 fashion stores) and other delivery fo rmats. These fall under ‘Value Retailing’. more The more. Chain of supermarkets, are bright and clean stores, at convenient lo cations 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 ma ny 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 th e shopping needs of the Indian housewife who wants a modern and convenient optio n in her neighbourhood, with an attractive and consistent range of products? mor e. 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 India’s 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 & Communic ations, Entertainment, Power, Transmission, Tyres and Life Sciences. In 2001, it established ‘Giant’ Hypermarket

Provogue (India) Ltd., (PIL) formerly Acme Clothing Pvt. Ltd was incorporated i n November 1997, converted in to a public limited company in March 2005. It deal s with fabrics, dyestuffs, chemicals and textile machinery. PIL operates in two core industry segments. The first being designing, manufacturing and selling bra nded ready-made garments and other accessories under the brand Provogue . The s econd business is export of finished fabrics, dyestuffs, chemicals and textile m achinery to several markets in African continent.

CHAPTER 3 Research Methodology

 

 

TITLE OF STUDY The title of the whole study is “Consumer satisfaction at various income level of Bikaner city with respect to RELIANCE FRESH PRODUCTS”. OBJECTIVE OF STUDY Under this topic we need to identify first about need of a cu stomer and divide them in to different segments like various income levels and t heir preference regarding purchasing from mom n pop stores and retail outlets, t hen to know that they really satisfied with to do shopping from these outlets with respect to their various income levels. So the objective of this study to get insights in: To get the details of consumers satisfaction in context of the local Mom & pop stores. To know the scope of different retail stores in reference to the existin g Mom & Pop stores. The study will give an insight into the private label and consumer satis faction with the same. The effect of income level on the buying behavior of consumer satisfacti on. Understanding the consumer’s attitudes, involvement and motivation levels with various products/ brands in the market. Understanding the urban life that affect purchasing pattern. Understanding the behavioral changes of consumer spending habits and to know what, when, why, where, how consumers influence to purchase the products. To know about which factors influence the buying behavior of consumers. To study the consumer perception about the big retail outlets in Bikaner city. To know that Reliance fresh’s membership scheme is valuable to increase th e sale. To know which segment is most profitable or generate high sales.

Hypothesis:-

Hypothesis can be defined as “making assumptions”. These are the con jectural statements of the relationship between two or more variables that carry clear implications for testing the stated relations and also classify research problem into statement which can be tested. These can be considered as probable answers to the research problem. Testing of Hypothesis:Most of the times decisions are based on the inferences drawn fr om a sample and hence the researcher is uncertain about the validity of the samp le in representing the actual population. We can test the validity of the hypothetical parameter by the us e of hypothesis testing. Hypothesis test, also known as test of significance, en able us to decide on the basis of the sample result if the deviation between the observed sample statistic and the hypothetical parameter value (or) statistic i s significant (or) might be attributed to chance (or) the fluctuations of sampli ng. These types of questions can be evaluated using the statistical techniques calle d Hypothesis – Testing. It enables the researcher to determine the validity of his hypothesis concerned with a particular issue. It also enables the researcher to decide whether data from a sample will provide support to a particular hypothes is; based on which it can be generalized to the overall population.

In this case hypothesis used are as follows Null Hypothesis The null hypothesis asserts that there is no (si gnificant) difference between the statistic and the population parameter and wha tever observed difference is there, it is merely due to chance (fluctuations in sampling from the same population). Null hypothesis is usually denotes by the sy mbol “ Ho” R.A. Fisher defined null hypothesis as “The hypothesis which is te sted for possible rejection under the assumption that it is true” In the case of Reliance fresh, the null-hypothesis assumed is “The re is no significance difference between Income level and consumer satisfactio n with respect to Reliance Fresh”

Alternative Hypothesis Any hypothesis which contradicts the null hypothesis H0 is called an alternativ e hypothesis and is denoted by the symbol “H1”. In the case of Reliance fresh, the alternative hypothesis assume d is “There is significance difference between Income level and consumer satisfa ction with respect to Reliance Fresh” TYPE OF RESEARCH AND SAMPLE SIZE Secondary data collection sources or exploratory research The information which can be collected from available source of information’s, called exploratory research or secondary data collection. These sou rces are internet, magazines, periodicals, books, journals etc.

Primary data collection or conclusive research This data collection methods involves collecting data or require d information is from primary sources i.e. customers, retailers, and from compet itors. It requires field work and further analysis of data’s to arrive at a conclu sion. These data’s directly collected from respondents with using differ ent data techniques like survey interview, observation, questionnaire etc. These data’s are unreported and unpublished and directly collected by the researcher fr om primary sources. Methods used Primary data collected from:Observation:Partially participative It means indulge in limited role - playing. In this case required information was extracted from sales peopl e about sales, by brands, products usually chosen by the customers of Bikaner in Reliance fresh outlet by playing the role of customer itself.

Non-participative It means observes the research subject from a distance without inferring. In this case, while standing in the Reliance fresh outlet and pl aying the role of the customer, observe the customer’s product chosen behavior and making purchase decision.

Survey method

This is the most common method of data collection and applied by almost all kind research, because this method is able to provide valuable infor mation on people’s opinion and perception about various issues which are related t o research problem.Survey generally involves interviewing a chosen sample for ge tting the required information. Survey can be conducted through a wide variety o f channels like mail, face to face, internet, telephone etc. In the case of Reliance fresh outlet survey method is being chos en:Face to face interview In this survey method interviewer directly approaches the subject and after seeking the permission takes an interview. This kind of pe rsonal interview generally conducted at the retail outlets. In the case of Reliance fresh outlet face to face interview meth od was chosen, hence the customers are interviewed at the retail outlet on the s pot. Mail survey This is also widely used channel of survey and it involves a que stionnaire (a set of questions) to be mailed / posted to the sample or responden ts, who return the filled questionnaire. In the case of Reliance fresh outlet questionnaire sent via mail to friends to get the responses.

Selection of the sample and sampling techniques Sample A sample is a part of total population, it can be an individual or group se lected from the population. In the case of reliance fresh outlet Sample size is 150 and the target people are the reliance fresh’s customers whether they are visited once or more than once. Sampling techniques Sampling is basically a kind of selection or technique in which few are selected as a sample which/ who represents the whole part of population. Selection of the sample Sample selection can be done by two methods which are probabilit y sampling and non probability sampling. One part of it this isProbability sampling A type of sampling in which everyone from the whole amount of po pulation has an equal chance to be selected as sample and being part of a calcul able and non- zero probability of being a part of the process, which is performi ng, is known as probability sampling. Simple random sampling A method of sampling where each and every element of the target population has an equal chance or probability of inclusion in the sample is know n as simple random sampling. In the case of Reliance fresh outlet, questionnaire was requeste d to be filled by the customers whom so ever met in the outlet. Whether a lady o

r a college going student or a young executive. RESEARCH METHODOLOGY Research Methodology includes the overall description the process adopted for th e survey of the project. It includes the research design, sample design, samplin g procedure, data collection method etc. Research methodology is a way to systematically solve the research problem. It m ay be understood as science of studying how research is done scientifically.

Research Design The research design is the arrangement of conditions for collection and analysi of data in a manner than aims to combine relevance to the research purpose with economy in procedure. The research carried out in this project was Explora tory in nature. s Research Design Data Source Research Instrument Sample Plan Sample Size Sampling Procedure Exploratory Primary & Secondary data Questionnaire Reliance Retail Office and Store 50 AND 29 Randomized Sampling

s

SCOPE OF THE STUDY The Research was conducted in RELIANCE FRESH (Bikaner).From 18th May onwards f or 45 days. So the scope of whole study was the Consumer Satisfaction at various income level of Bikaner city with respect to RELIANCE FRESH Products.

LIMITATIONS OF THE STUDY Time constraints: As there are three outlets of Reliance fresh, but due to def iciency of time survey is conducted only at 1 outlet which was within my reach That’s its really a tough job to visit all three of Reliance fresh outlet from our busy schedule of studies at college Poor feed back of the customers : As the mainly customers rush time was in eveni ng and they prefer to get in and get out as soon as possible, it may be that the y shows lack of interest towards filling up the forms or they simply avoid talki ng. They start giving vague answers and fill the forms incorrectly. They make us feel that we are disturbing them. Time Consuming Contacting each and every customer and wait for them is very time consuming. Wrong information’s sometimes the forms given to the customers are filled by the m completely incorrect. We don’t come to know about that and it makes our data- ba se faulty. Customers don’t want to spare time sometimes some customers feel that its complet e wastage of time . they don’t want to understand the key point, which makes the t ask of data- collection difficult. Weather conditions As we know that the climatic condition of the Bikaner city is

too hot now a days. Hence soaking out in the sun and then getting in at Vishal megamart can create severe cough and cold as its air- conditioned.

CHAPTER 3 Facts and Findings

Male 50

(1). 100

Gender of the consumer & Female

Data Collected-

Data collected for this questionnaire to know the gender of customer of reliance fresh. Data collected for project from 150 responded

ANALYSIS—

in which 100 are female.which are 66.6% and 50 are male which are 33.33% of tota l respondent Interpretation-

In total respondent we analyses that most o f 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.In which age group do you come? A. Below 25 (25) B. 25 – 30 (54) C. 30 – 35 (34) D. 35 – 40 (24) E. 40 and above (13)

Data Collected-

Data collected for this questionnaire to know the age group of customer of reliance fresh.

ANALYSIS—

Data collected for project from 150 responded in whic h highest age groups comes in 25-30 range (36%) and lowest are in above 40 range (8.66%). Interpretation-

In total respondent we analyses that most o f the customer in this store are 25-30 age group and their demand always conside r at the time of taking the decision. Company should try to attract new custo mer by provide new scheme on their customer

3.Which A. B. C.

type of occupation you/ your family engaged in? Private (65) Government (38) Own business (47)

Data Collectedknow the customer occupation. ANALYSIS—

Data collected for this questionnaire to

Data collected for project from 150 responded in whic

h highest family occupation 65 are private employe and lowest 38 are government employe. Interpretation-

In total respondent we analyses that most o f the customer comes in this store are engaged in private sector and some have own business and government occupation.

4. Your monthly income:A. Below 10000 (12) B. 10000 – 15000 (27) C. 15000 – 20000 (53) D. Above 20000 (58)

Data Collectedknow the customer’s monthly income ANALYSIS—

Data collected for this questionnaire to

Data collected for project from 150 responded in whic h coustomer’s montly income is above 20000 are 58. and below 10000 are 12 customer’s comes in reliance fresh. Interpretation-

In total respondent we analyses that most o f the customer’s montly income is above 20000 those mostly comes in this store an d lowest customer’s montly income is below 10000 they rarely comes in this store b ecause for higher price of the products.

5. Which day you prefer to go for shopping? A. Monday (8) B. Tuesday (27) C. Wednesday (14) D. Thursday (3) E. Friday (9) F. Saturday (26) G. Sunday (33) H. Any day (8)

Data Collected-

Data collected for this questionnaire to know the customer prefer Sunday for shoping.

ANALYSIS—

Data collected for project from 150 responded in whic h 33 (22%) customers prefer Sunday for shoping. InterpretationIn total respondent we analyses that most o f the customer comes in Sunday. Because the customer comes in reliance fresh th ey belong to private sector and Sunday is free day in private sector.

A. B. C. D.

6.

How much you spend on one time shopping? Less than Rs. 100 (11) 100 – 200 (20) 200 – 500 (64) 500 and above (55)

Data Collected-

Data collected for this questionnaire to know the customer spend on one time shoping

ANALYSIS—

Data collected for project from 150 responded in whic h 64 (42.66%) customer spend 200-500 in one time shoping. Interpretation-

In total respondent we analyses that most o f the customer comes in Sunday and they do one week shoping so they spend 200-5 00 in one time shoping

A. B. C. D.

7..In reliance fresh which segment you prefer most for shopping? Household products (70) Electronics (10) Vegetables and fruit (55) Stationary (15)

Data Collected-

Data collected for this questionnaire to know the customer prefer which segment in reliance fresh.

ANALYSIS—

Data collected for project from 150 responded in whic h 70 (47%) customer prefer household products and 10(7%) prefer electronics prod ucts. Interpretation-

In total respondent we analyses that most o f the customer prefers household products .because mostly females comes in relia nce fresh.

8. which of the following factor which encourage most you to change your ma in shopping place? A. Wide choice of products (51) B. Lower prices (46) C. Nice store environment (31) D. Membership (22)

Data Collected-

Data collected for this questionnaire to know the why customer change your shoping place.

ANALYSIS—

Data collected for project from 150 responded in whic h 51 (34%) customer told that wide choice of products change her shoping place. Interpretation-

9. What are the top 5 factors do you consider most important for buying products ? (Please rank them from the most proffered (1) to least preferred (5). Attributes (1) Price 53 32 Packaging 21 5 Social aspect 2 Friend’s suggestion Quality 23 49 Freshness 48 41 Brand name 10 (2) 23 12 0 7 32 32 11 (3) 13 13 4 6 18 13 22 (4) 0 25 4 9 7 8 55 28 13 17 (5)

58

10. which store do you kept in mostly preference for purchasing (A) Reliance fresh (B) Vishal mega mart (c) Local market (D) other (20) ( 50) (60) (30)

Data Collected-

Data collected for this questionnaire to know the which store customer mostly preference for purchasing. ANALYSIS— Data collected for project from 150 responded in whic h 60 (38%) customer prefer local market and 50(34%) prefer reliance fresh for pu rchasing. InterpretationIn total respondent we analyses that most o f the customer prefers local market for purchasing because reliance fresh produc ts price are higher than local market.

11. Quality of fruits and vegetable in Reliance fresh ? (A) Excellent (B) Good (c) Average (D) poor (50) (60) (30) (10)

Data Collected-

Data collected for this questionnaire to know the quality of fruits and vegetable in reliance fresh according to custome rs. ANALYSIS— Data collected for project from 150 responded in whic h 60 (40%) customer say good quality and 10 (7%) say poor quality Interpretation-

12. Which form of advertisement do you think is most effective? (A) T .v (65) (B) Radio (30) (C) Print media (35) (D) Telephone (20)

Data Collected-

Data collected for this questionnaire to know the most effective form of advertising for increase selling.

ANALYSIS—

Data collected for project from 150 responded in whic h 65 (43%) customer say t.v is most effective way and lowest 20 (13%) say telep hone is most effective advertising way for increasing selling. Interpretation-

CHAPTER 5 Analysis and Interpretation

Quantitative Analysis Quantitative research is a structured approach to data- collection method. It uses different techniques of measurement, in which questionnaire is most widely used method. Quantitative technique is the best possible method to get the ac curate results. In this study quantitative approach is used so as to get the ide as and perceptions of the respondents in numerical form along with getting accur acy. As by adopting this very kind of approach to study, we can well get the tru e picture that what the customer really thinks about the topic. What is the pict ure which is present in his or her mind? And hence we can get accurate ideas abo ut their perceptions and can derive results with utmost accuracy. For this very purpose we can take good amount of respondents from the representative populatio n. Hence for making the result and the research study a perfect picture of the t rue customer ideas, quantitative approach can be used.

Reason for choosing this approach In the case of Reliance fresh outlet, this approach is u sed to get the perception and ideas of each and every kind of customer whether f rom middle income group to higher income group can be taken or whether male or f emale. Filling up of the questionnaire by various customer group makes the resea rch study more and more specific and deep as it gives out different kinds of res ponses, ideas, perception and attitude which helps in making the correct evalu ation of the study. Meeting with various kinds of customer and understanding the ir way of thinking also makes the study detailed and gives good feedback. Data collection:Questionnaire method is used. So the main source of the pr imary data – collection is the questionnaire. Questionnaire method Questionnaire in simply can be defined as a set of questions, to be asked from the respondents in an interview. It is widely used tool to get th e desired information directly from the customers. It is a form of series of questions, which can be classified int o:Open ended questions A type of question that requires participants to respond in his/ her own words without being restricted to pre-defined response choices is calle d open ended questions and also known as infinite response or unsaturated- type questions. Close ended questions Questions, which restrict the interviewee’s answer to pre-defined response options , are called close ended questions. Further Ranking questions, Checklist questions and Likert scale are bei ng used in some questions. Ranking questions These questions require the participants to rank the responses options listed on a continuum basis in order to their pre ference. In the given management thesis of Reliance fresh, questionnaire method is being used to get the responses from the respondents. The question in which ranking method is used as follows:-

Question 1: Due to most preferable shopping place, what are the top 4 reasons t hat you shop from there? (Please rank them from the most preferred (1) to the least preferred (4). A). Value for money ( ) B).Friend’s suggestion ( ) C). Fresh products ( ) D). Good store image ( ) E). Advertisement ( ) F).Convenience ( ) G). If any other, specify_______

Checklist questions These are questions where the participant has the freedom to cho ose one or more of the response options available. This is the different form of multiple choice questions. Question 1: In reliance fresh which segments you prefer most for shopping? A. Grocery D. Electronics

B. Apparels C. Household products

E. Vegetables and Fruits F. Stationary

Likert scale

Likert scales consist of a series of statements where th e respondent provides answer in the form of degree of agreement or disagreement. The respondent selects a numerical score for each statement to indicate the deg ree of agreement. Likert scale is widely used for measure the attitudes of the customers. Question 1: What do think about the Reliance fresh’s store:(Please indicate your response on the scale of 1 to 5, 1 for not very good and 5 for very good) a) Store interior (1) (2) (3) (4) (5) b) Easy visibility of products (1) (2) (3) (4) (5) c) Range of products (1) (2) (3) (4) (5) d) Sales person in store (1) (2) (3) (4) (5) e) Parking facility (1) (2) (3) (4) (5) The test used for the study purpose is In the given management topic which statistical technique we are using called ch i-square test. This is also known as test of goodness and test of independence. The events taken into consideration can be mutually – exclusives and should have p robability in it. It is used for actual values rather than percentages. It is us ed to find if difference between the observed distribution of data among categor ies and expected distribution is significant. From the observed frequency, by su btracting it from the expected frequency and finally squaring them followed by d ividing. Where:χ2 = the test statistic that asymptotically approaches a χ2 distribution. Oi = an observed frequency; Ei = an expected (theoretical) frequency, asserted by the null hypothesis; n = the number of possible outcomes of each event As in real life situations when a manager has to take some important decisions, they need to know the differences between the observed and the expected frequenc y. This really affects and shows a picture of the present situation. This is ver y important as it has a great bearing with respect to the company. With respect to Reliance fresh outlet, they can perfectly calculate their profit s from various categories of the customers of various income capabilities and th eir satisfaction level as well. Pearson s chi-square is used to assess two types of comparison: tests of goodnes s of fit and tests of independence. The goodness of fit test is a part of chi-square test It is basically a kind of tool to verify whether there is any significant diffe rence between the observed frequencies and the expected frequencies. In such cases the chi-square is used to test whether the fit between observed di stribution and the expected distribution is good. The procedure for this test is as follows:-

 

A) Formulate the null and alternative hypothesis and compute the observed f requency. B) Calculating the expected value using the formula ROW TOTAL X COLUMN TOTAL OVERALL TOTAL C) Calculate the χ2 using the formula D) Decide upon the level of significance & degrees of freedom. E) Determine the critical value & compare with calculated χ2 value that’s chi-s quare statistics. F) Now comes the acceptance or rejection of the null hypothesis. That’s to de termine that it falls in the accepted region or not and accordingly accepting or rejecting it. G) Deduce the business-research conclusion.

Reason for selection of this test This test is quite appropriately used when sample size is more than 100, hence t o get accurate results. Income level Attributes Below Rs.10000 Rs.10000-15000 Rs.15000-20000 Above Rs.20000 Total Lower prices 3 10 23 15 51 Wide choice of products/product availability 6 46 Nice store interior/easy visibility of products 1 31 Membership scheme 2 3 7 10 22 Total 12 27 53 58 150 10 4 11 12 19 14

The expected frequency for each Ei for the particular cell: TOTAL CELL X COLUMN TOTAL OVERALL TOTAL

Oi 3 10 23 15 6 10 11 19 1 4 12 14 2 3 7 10 Total

Ei 4.08 9.18 18.02 19.72 3.68 8.28 16.28 17.78 2.48 5.58 10.95 11.98 1.76 3.96 7.77 4.10

(Oi – Ei) -1.08 1.166 .82 .672 4.98 24.80 -4.72 22.27 2.32 5.38 1.72 2.958 -5.28 27.878 1.22 1.488 -1.48 2.19 -1.58 2.496 1.05 1.10 2.02 4.08 .24 0.057 -.96 .9216 -.77 .593 5.90 34.81

(Oi – Ei)2 .289 .0732 1.376 1.129 1.46 .357 1.712 .0836 .883 .447 .1004 .340 .032 .2327 .0763 8.490 16.8485

(Oi – Ei)2/ Ei

= 16.8485 (r-1) (c-1) = (4-1) (4-1) = (3) X (3) = 9 [υ = degree of freedom, r = no. of rows, c= no. of columns] υ =

CHAPTER 6 SWOT Analysis

Strength • Easily available products • Reasonable price • Prompt service • Hygienic products • Local farmers are highly benefited. • Provides clean and convenient environment. • Prime location • Large floor space allowing for better visual merchandising • Large area also allows to stock a large variety of products under one roof • Experienced and competent management • Highly trained and motivated sales force • Brand equity • Large scale operations in various cities throughout the country allows them to r eap the benefits of “economies of scale” • Over next two years India will see several Indian retail businesses attaining a critical mass as growth in the industry picks up momentum driven by two key fact ors: Availability of quality real estate and mall management practices Consumer preference for shopping in new environments Weakness • More skilled staff required • Emphasis on farmer training • Not successful in rural areas although goods can be purchased and sold at low co st. • Large scale of operations sometimes acts as a barrier to personalized customer r elations • Large scale operations lead to reduced flexibility by increasing the amount of o verheads and a huge commitment in terms of fixed costs • A large organization structure leads to delayed decisions. This can prove fatal for a business in the dynamic fashion industry.

Opportunities • Potential market. • Huge profit available. • Apart from the metros, cities like Ahmedabad, Pune, Lucknow, Indore and Coimbato re have shown substantial retail presence. Most sport modern retail formats like supermarkets, department stores and specialty chains. These markets are expecte d to show exponential growth in the next few years. Thus Reliance Retail has th e opportunity to explore new markets. • Lack of differentiation among the malls that are coming up. One option may be to look at specialization. • According to the Consumer Outlook study, consumers are generally satisfied with the service that organized retailers extend to them. More importantly, they are increasingly regarding these organized retailers as providing value-for-money’. These findings indicate that large retailers will capture most of the higher con sumer spending • Increasing penetration of the internet into Indian homes has provided to break t he geographical barriers and to increase their customer base. The entry into onl ine retailing, would, in fact, expand the product categories available to the co nsumer. • The pool of highly skilled and specialized human resources to facilitate greate r productivity and improved quality

Threats • Competition from the other companies • Threatening from farmers • Threatening from local sellers • Fear of unsuitable environment for certain products • The time when retailers had to worry about competition only from their peers dow n the street has come to an end. Reliance Retail is now facing increased compet ition in the form of international retail chains that are making a beeline towar ds the highly potential Indian markets. Moreover many big Indian business houses are also vying a space in the Indian retail scene. • Lack of industry status • Inadequate transport infrastructure • Absence of adequate storage infrastructure • Constructions/Infrastructure • Supply chain analysis • Legal restrictions • Land and space restrictions • Natural calamities and disasters like earthquake and floods • Civil war, war with another country, terrorist attack. Uncertain global business environment impacting business sentiment and growth • Attrition of key management personnel

¡

Chapter 7 Conclusion

Conclusion From the survey done about Reliance fresh outlet and buying behavior of customers of various income level and satisfaction derived by them it is found t hat : Mazority of customers here is female. Mostly private sector customer’s prefers reliance fresh Local market till today is the first choice of customer. The products segments which are maximum sold at reliance fresh are as follows:Household items Vegetables and fruits Stationary Electronics Maximum customers who prefer to shop from there are fall in age ranging from:25- 30 years and above And those monthly income is in range of:Rs.20000 monthly and above Private label products offered by Reliance fresh are less preferred in B ikaner because customers are still glued with manufacturer’s brand. They don’t ha ve confidence in private label products. To gain the customer’s confidence they ha ve to come out with brands with good quality and distribute the free samples. As the survey done at Reliance fresh outlet it infer that mostly people who visit the outlet are private employee customers as they get time only on Sat urday and Sunday, so mostly they prefer these two days for shopping and as on Tu esday there are various schemes available on various product segments so this da y is also preferred by them. Locality in which Reliance fresh outlets are located is residential area of private employees. Due to lack of awareness and time people who are far from the outlets generally prefer to shop from mom and pop stores. So they have to c reate awareness among people that they provide products at cheaper rate from mar ket with good shopping ambiance. Buying behavior of customer in Bikaner:The consumers of Bikaner are price, quality and freshness sensitive .The ir are less concerned with social aspect, packaging and brand names of the produ cts, and they shop from places where they get the products at right price, right quality and are fresh. Retail condition in Bikaner:Though retail is in the embryonic stage in Bikaner as the city h as only two retail giants i.e Vishal and Reliance fresh. But from the study it c an be seen that the convience, fresh products and value for money. This shows th at the retail formats are accepted in Bikaner and people go to these outlets as they are convenient and provide them with value for their money. When they shop they also take into consideration the store interior, easy availability of produ cts, store staff and parking facility at the store. Reliance fresh is ranked mod

erate on all these factors and there is room of opportunities for the retail pla yers to attract the customers. The study also showed that the people of Bikaner don’t have an inclination towards the brand names on the contra they give importan ce to price, quality and freshness. This is one area where reliance fresh can re ap profits by focusing on the private label brands and providing the customers w ith good quality of products. Few success mantra’s by following them they can fulfill the need’s of the customers :Come out with varieties in the apparel-section:Giving personal attention to the needs of a customer. Pay attention towards “Relationship-marketing”. Introduce more & more products of private label in the sections like -

biscuits, wafers, snacks, pulses, fruit-drinks with better quality and gain confidence in the customers etc. Store quality & tested products in the electronics section. After sales service: following up the original purchase with after sales support such as maintenance and up gradation in the case of electronic items. Taking continuous feedback and improving the lacking areas. Billing service should be prompt, because it was observed that mostly in evening time customers who came for the vegetables and fruits have to wait for long tim e in queues for billing.

A customer’s wish:o Let me find a parking place near the store o Have the sales staff pretends that they care o Get me in and out as fast as possible o Do note make me have to wait in line to make my purchase o Do not make me have to deal with other obnoxious shoppers Key words which are used in the study Convenience stores Basically these are the stores where one can find out the daily necessities thin gs under one roof. Reliance fresh outlets are form of convenience stores.

Customer satisfaction:-

 

Visual merchandising:Visual merchandise in simple words “promoting the sale of goods, especially by th eir assortment pattern in the retail outlet”. Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that underpin the store’s image. Visual merchandising is t he way one displays goods for sale in the most attractive manner with the enp purpose of making a sale. Especially in today’s challenging economy, people may avoid designers/ visual merc handisers because they fear unmanageable costs. But in reality, visual merchandi sers can help economize by avoiding costly mistakes. Visual merchandising is the art of implementing effective design ideas to increa se store traffic and sales volume. A close sister to visual merchandising is "retail experience". "Customer experie nce" looks at the same issues around product presentation but from the customer perspective, rather than the retailer perspective. Many elements can be used in creating display including color, lighting, space, product information, sensory inputs such smell, touch, sound and as well as their display. Relationship marketing Today relationship marketing is very popular and very much fami liarized among marketers and increasing craze about this. Because in today’s marke t scenario instead of making new customer its quite cheaper to retain the custom ers who’s already connected with the company. As making new customers is quite exp ensive, Keeping the data base of the customers and following them, by informing them about various schemes and events organized by the organization so that they can maintain the bonding and mutual relationship with the customers and they fe el privileged. Customer centric retailing Everything is designed keep in mind to the customer. Basically in retail it is important to know that what customers want then to make it possible to ta ilor everything according to the customer to please them. Providing goods they w ant in retail outlets which are convenient to use and placed.

 

 

Customer centric retailing

Chain stores:-Stores which having more than one outlet are considered as chain stores. These stores have a centralized buying pattern and dealing in similar kind of s egments. Like Reliance fresh having approx. 590 outlets across the country and d ealing in same product segments.

CHAPTER 8 Recommendation and Suggestions

Recommendation and Suggestions • To attract the age group of 40 and above by introducing various schemes. • To Induce Govt. Employees by Providing special package on shopping upto certain amount . • To attract lower income group people by providing retail product upto their r each. • To make the people acquainted about the Reliance fresh s membership scheme, by which more people can attracted towards Reliance fresh stores. • Suggest the customers at the time of shopping which creates friendly environment and better salesman – customers Relationship . • Provide after sales service in the sales of Electronic items. • Store must provide sufficient space for parking . • Gives personal attention to need identification of the customers. • Prompt billing services after purchase. • Avoid giving wrong information to the customers, it reflects ineffectiveness o f the store. • Special Emphasis on Rural & uneducated customers. • Introduces festival schemes on various festivals. • Consistency is good quality be maintain.

 

CHAPTER 9 Appendix

Appendix Questionnaire Date : _____________________________________________________ Name : _____________________________________________________ Address: _____________________________________________________ Contact no_________________________ Gender : Male ( ) Female ( ) 1. Are you?

A. Single C. Other B. Married ( ) 2. In which age group do you come? A. Below 25 D. 35 - 40 B. 25 – 30 E. 40 and above C. 30 - 35 ( ) 3. A. B. ( 4. Qualification Undergraduate Graduate C. Post Graduate D. Ph.d.

Which type of occupation you/ your family engaged in? A. Private C. Own Business B. Government D. Nothing ( ) 5. Your monthly income? A. Below 10000 C. 15000 - 20000 B.10000 – 15000 D. Above 20000 ( ) 6. Is there any source of dual income in your family? A. Yes B. No 7. How much time you usually spend on shopping? A. Less than 20 minutes C. 45 – 60 minutes B. 20 – 45 minutes D. 60 and above

)

(

)

(

)

8. How often you go for shopping? A. Everyday C. Fortnightly B. Twice in a week D. Once in a month 9. ( 10. ) How much you spend on one time shopping? A. Less than Rs. 100 B. Rs.100 – 200 Which day you prefer to go for shopping? A. Monday B. Tuesday C. Wednesday D. Thursday Your shopping pattern is:A. Planned shopping B. Unplanned shopping

(

)

C. Rs.200 – 500 D.Rs. 500 and above

E. Friday F. Saturday G. Sunday

( ) 11.

C. Both kind of

( ) 12. In reliance fresh which segment you prefer most for shopping?( Ques. 12 to Ques. 15 you can choose more than 1 option) A. Grocery D. Electronics B. Apparels E. Vegetables and Fruits C. Household products F. Stationary ( ) 13. ost:If your shopping pattern is planned then which segment you prefer the m A. Grocery B. Apparels C. Household products D. Electronics E. Vegetables and Fruits F. Stationary

(

)

14. If your shopping pattern is unplanned then which segment you prefer the most for shopping:A. Grocery D. Electronics B. Apparels E. Vegetables and Fruits C. Household products F. Stationary ( ) 15. Where do you feel the prices of reliance fresh products are lower or che aper in which categories? A. Grocery D. Electronics B. Apparels E. Vegetables and Fruits C. Household products F. Stationary ( ) 16. Have you ever used the Reliance’s private label products e.g. Reliance sug ar, Reliance noodles? A. Yes B. No ( ) 17. If you use the Reliance’s private label products then what you feel about the products? A. Satisfied B. Unsatisfied ( ) 18. Have you ever availed the Reliance fresh’s membership scheme, if yes what do you feel about this scheme? A. Satisfied ( ) B. Unsatisfied

19. What do you feel about price at reliance fresh store? A. Lower from other stores C. Higher from other stores B. Similar to other stores D. Never checked ( ) 20. Which of the following promotions do you prefer most? A. Buy 1 get 1 free B. Larger pack with so much extra C. Linked promotion, where you buy 1 product and get different product D. Discount scheme ( ) 21. What do you feel about price promotion? A. Encourage me to try out new products B. I buy things which I don’t need C. I can stock when prices are low D. Make shopping more exciting ( ) 22. Which of the following which most encourage you to change your main shop ping place? A. Wide choice of products B. Lower prices C. Nice store environment D. Membership ( ) 23. Compared to other shopping outlets that are available, what would you sa y reliance fresh is_________? A. Much better C. Some what worse B. About the same D. Don’t know ( )

24. What do think about the Reliance fresh’s store:(Please rate on the scale of 1 to 5, 1 for not very good and 5 for very good) a) b) c) Store interior ( ) Range of products ( ) Sales person in store ( ) ( ) ( ) what are the top 4 reasons that y e). Advertisement f). Convenience g). If any other, specif ( ) d) Easy visibility of products e) Parking facility

25. Due to most preferable shopping place, ou shop from there and Rank them 1 to 4? a). Value for money ( ) ( ) b).Friend’s suggestion ( ) ( ) c). Fresh products ( ) y_______ d). Good store image

26. What are the top 5 factors do you consider most important for buying pro ducts and rank them 1 to 5? a). Price ( ) e). Quality ( ) b). Packaging ( ) f). Freshness ( ) c). Social aspect ( ) g). Brand name ( ) d). Friend’s suggestion ( ) If any other suggestion please specify…… ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

“Thank you for giving your precious time.”

CHAPTER 10 Bibliography

References Referred booksMarketing Research – Paneerselvam Research Methodology – C.R Kothari Principles of Marketing – Philip Kotler Referred sitewww.ril.com www.google.com www.wickipedia.com