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Study of Consumer buying behaviour

In
Reliance Fresh
New Delhi

Project Report
Submitted To
SCHOOL OF MANAGEMENT SCIENCES

For The Award Of

Post Graduate Diploma in Management

Submitted By
Amit Kumar Gupta
(Roll No. : PG/08/05)

SCHOOL OF MANAGEMENT SCIENCES


LUCKNOW

1
Study of Consumer Buying Behaviour

In
Reliance Fresh

Submitted By
Amit Kumar Gupta
(Roll No. : PG/08/05)

SCHOOL OF MANAGEMENT SCIENCES


LUCKNOW

2
Reliance fresh

3
Certificate

4
5
Executive Summary
Retailing is the interface between the producer and the
individual consumer buying for personal consumption.
This excludes direct interface between the manufacturer
and institutional buyers such as the government and
other bulk customers. A retailer is one who stocks the
producer’s 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

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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 consumer’s 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 ril’s 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

7
satisfy him or her, this concept gaining more momentum
and importance today.

More than a century ago, the father of our nation,


Mahatma Gandhi, had made visionary and deep
meaningful statement at Johannesburg, South Africa in
1980. A customer is the most important visitor of
our premises. He is not dependent on us .We are
dependent on him He is not interruption on our
work. He is the purpose of it and not an outsider
on our premises. He is a part of it. We are not
doing him favour by serving him.

Today the entire firm engaged in a process of creating a


life time value and relationship with customers. This
report start with discussion on the diversity of consumer
behaviour and the need for studying consumer buying
behaviour and consumer as a related field of marketing
.this can be largely be attributed to the prevailing
market situation .Today the company image is built and
made known by its customers. Thus success 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 today’s 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

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1- Major factors influencing consumer buying behaviour.
2- Buying decision process.
3- The stage in buying decision process
4- Awareness of consumer towards organised retail
sector

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Declaration

I hereby declare that this summer project report titled


“Buying Behaviour/consumer satisfaction of Reliance
Fresh customer in “Delhi.” is the result of my own effort
in the training which I did as a part of the curriculum, for
the fulfilments of POST GRADUATE DIPLOMA IN
MANAGEMENT (PGDM). It has not been duplicated from
any other earlier works and all information provided in
this report is genuine.
This report is submitted for the partial fulfilments of
PGDM program. It has not been submitted to any other
university or for any other degree.
10
Date: AMIT KUMAR GUPTA
PGDM (MARKETING)
SMS LUCKNOW

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ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude to
the following personalities without whose help and
guidance the successful completion of my project work
would have been remained a dream.
I extend my heartfelt thanks to our HR Miss. SHIVANGALI
SINGH for the constant and valuable guidance by him
through out my course.

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I would like to take the pleasure of this opportunity to
express my heartful gratitude to my guide Professor Mrs
VANDANA SHRIVASTAV (Faculty Member, SMS) who took
personal interest and gave valuable suggestions through
out my field work and completion of the project.
I thank all my faculty members of MBA department for
their valuable suggestions throughout my course.
The importance of the moral support and good wishes of
my parents and friends is external and I am very much
indebted to them.
Finally I thank all my friends who directly or indirectly
helped me a lot during my project.

AMIT KUMAR
GUPTA
PGDM-MARKETING
SMS LUCKNOW

Contents

13
S.N. INDEX PAGE
NO
Certificate 4
Executive Summary 5
Declaration 9
Acknowledgement 11

CHAPTER- 1 INTRODUCTION &BACKGROUND


1.1 Company Overview 14
1.2 Popular Profile 21
1.3 Supply Chain Model 27
1.4 SWOT Analysis 30
1.5 Corporate Social Responsibility 33
1.6 Major Player 35
CHAPTER-2 RESEARCH METHODOLOGY
&DESIGN
2.1 Objective of Research 38
2.2 Type of Research 41
2.3 Source of data & Collection tool 41
2.4 Sampling 42
2.5 Sample size 42
CHAPTER-3 ANALYSIS & INTERPRETATION
Meaning of consumer Buying Behaviour 44
Interpretation of collect data 49
CHAPTER-4 RESEARCH FINDING 69
CHAPTER-5 LIMITATION OF RESEARCH 71
CHAPTER-6 SUGGESTION 73
APPENDIX 75
REFRENCES 77

14
RELIANCE
"Growth has no limit at Reliance. I keep revising my vision. Only
when you can dream it, you can do it."

15
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002

RELIANCE GROUP

The Reliance Group, founded by Dhirubhai H. Ambani


(1932-2002), is India's largest private sector enterprise,
with businesses in the energy and materials value chain.
Group's annual revenues are in excess of USD 27 billion.
The flagship company, Reliance Industries Limited, is a
Fortune Global 500 company and is the largest private
sector company in India.

Backward vertical integration has been the cornerstone


of the evolution and growth of Reliance. Starting with
textiles in the late seventies, Reliance pursued a strategy
of backward vertical integration - in polyester, fibre
intermediates, plastics, petrochemicals, petroleum
refining and oil and gas exploration and production - to
be fully integrated along the materials and energy value
chain.

The Group's activities span exploration and production of


oil and gas, petroleum refining and marketing,
petrochemicals (polyester, fibre intermediates, plastics
and chemicals), textiles and retail.

16
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"

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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

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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
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

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

Through the year, RRL also expanded its supply chain


infrastructure. The Company is fully geared to meet the
requirements of its rapidly growing store network in an
efficient manner.

Recognizing that strategic alliances are going to be a key


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

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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

22
Devandra Chawla Vice-President-Business
Head, Merchandise Head
Zubin Nowrojee, State Head Category
Mangement

Formats of Reliance RETAIL

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

23
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

24
fresh supermarket chain is ril’s 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, that’s 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 RIL’s 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

25
provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people, according to
the company. The company also has plans to train
students and housewives in customer care and quality
services for part-time jobs.
The company is planning on opening new stores with
store-size varying from 1,500 sq ft to 3,000 sq ft, which
will stock fresh fruits and vegetables, staples, FMCG
products and dairy products. Each store is said to be
within a radius of 1-2 km of each other, in relation to the
concept of a neighbor store. However, this is only the
entry roll-out that the company has planned. Bangalore is
said to have 40 stores in all by the end of the year.
In a dramatic change due circumstances prevailing in UP,
West Bengal and Orissa, It was mentioned recently in
News Dailies that, Reliance Retail is moving out stocking.
Reliance Retail has decided to minimize its exposure in
the fruit and vegetable business and position Reliance
Fresh as a pure play super market focusing on categories
like food, FMCG, home, consumer durables, IT, wellness
and auto accessories, with food accounting for the bulk of
the business.
The company may not stock fruit and vegetables in
some states, Orissa being one of them. Though Reliance
Fresh is not exiting the fruit and vegetable business
altogether, it has decided not to compete with local
vendors partly due to political reasons, and partly due to
its inability to create a robust supply chain. This is quite
different from what the firm had originally planned. When
the first Reliance Fresh store opened in Hyderabad last
October, not only did the company said the 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 idea the company spoke about
was to source from farmers and sell directly to the
consumer removing middlemen out of the way.

26
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

27
stores across major towns in 11 states. According to
a company report, RIL is targeting a turnover of Rs
40,000 crore in the next few years.

TRADI
TIONAL MODEL OF RETAIL RELIANCE “FARM TO
FORK”

SUPPLY CHAIN MODELS of Reliance Retail

Reliance started its retail operations of Reliance


Fresh stores with following supply chain model.

28
Procuring directly from the farmers and operating
with moderate margin but mass selling was key to
Reliance fresh operation for first few months. The
following figure depicts the first Reliance fresh model

RELIANCE FRESH

FARMERS FARMERS FARMERS


CATEGOR CATEGOR CATEGOR
Y1 Y2 Y3

Fa
rm n
ers
Ow COLLECTIO r tatio
nT N n spo
ran POINT/UNI n Tra
s po Ow
r ta
tio T ers
rm
n Fa
RELIANCE OWN
LOGISTICS

PROCESSIN
G
RF s UNIT/POINT Re
is tic lia RF
og nc
w nL e ow
ceo n Lo
n gis
lia
Re tic
s
RELIANCE RELIANCE RELIANCE
FRESH FRESH FRESH
OUTLETS OUTLETS OUTLETS

WHOLESALE TRADING (WST) :

29
Reliance formalized its second supply chain model to
shift itself from grocery retailer 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 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.

30
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


mandi and then Unloads. Can be 2 to 3 hours.

LOADING AND UNLOADING TIME.

4) From mandi’s 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.

Let’s 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

32
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 Reliance’s own
brand. Excepting a few packets of Nestle’s Maggi, or
MTR’s masalas or Pepsi’s 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 customer’s 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
33
inefficient. There are several intermediaries, each of
whom adds his own profit margin to the cost. Besides,
there is huge wastage in transit. This offers potential for
savings and profits. To reduce the cost and increase the
profit it has been sourcing out its requirements from the
farmers. For example, the leafy vegetables, brinjals,
tomatoes and green chilies in the Banjara Hills outlet
were sourced directly from farmers in Vantimamdi,
Chevella and nearby mandals in Ranga Reddy district of
Andhra Pradesh. The supply chain already has been
backed by few hundred farmers the number is estimated
to touch million in next five years. The main aim of the
reliance is to eliminate the intermediaries in the sector
and reduce the cost. Smaller stores have two
advantages. They bring down the cost of real estate
(and 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.

34
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.

35
2) Farming in India is highly fragmented and
subject to harsh climatic conditions: once harvested,
it is very difficult to keep fruits and vegetables fresh.
To secure high quality, Reliance Retail is directly
sourcing fresh agricultural produce from thousands
of farmers from villages through Collection Centers.
With this concept, Reliance has built a business
model generating shared value that links the
company supply chain more closely to poor farmers
in Indian villages. Reliance is providing a guaranteed
market for the farmers’ produce, reducing
transaction 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.

36
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

37
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 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 Bazaar (77
supermarkets) and Fashion Station (5 fashion stores) and
other delivery formats. These fall under ‘Value Retailing’.

38
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.

RPG Group:

RPG Enterprises is one of India’s largest business


conglomerates, with a turnover of US$ 2.55 bn and
39
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.

40
Research Objective

• To study consumer buying behaviour reliance fresh


customer of Delhi
41
• To know about the consumer awareness towards
Reliance fresh.

42
Research Methodology

Research Problem

To make a comprehensive study of Reliance Fresh &know


the Buying behaviour & of Reliance Fresh customers.

43
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.

Sampling technique

44
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.

45
Understanding The Buying Behaviour Of Reliance Fresh
Consumers

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

46
factors such as the consumer's (1) societal role (parent,
spouse, worker, etc.), (2) social and cultural environment
and norms, and (3) aspirations and inhibitions.

Buying Behaviour is in the Advertising, Marketing, &


Sales and Purchasing & Procurement subjects.

Buying Behaviour appears in the definitions of the


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

Buying Behaviour appears in these other term:


consumer buying behaviour.

Model of Buying Behaviour

Mark Buyer’
eting Other s Buyer’s Buyer’s
Stim Stimuli Charac Decisio Decision

47
teristic
uli s n
Process

Problem
Produ Econom recogniti Product
ct ic Cultural on choice
Informat
Technol ion Brand
Price ogical Social Search choice
Persona Evaluati Dealer
Place Political l on choice
Promo Psychol Purchase
tion Cultural ogical Decision timing
Post
purchas Purchase
e amount
Behavio
ur

When I have analysed the model of buying Behaviour


finding that people of DELHI are influenced by the
marketing stimuli (4 P’s) people are focused on price
rather than product, place and promotion, other factor
which influenced people is the technological
advancement.

Cultural Social
Personal

48
Referen
ce Psycholo
culture Groups gical
Cycle
Stage Motivation
Subcultur
e Family Economic Perception
Circumstan
ces Learning
Beliefs
and
Life Style Attitudes BUYE
Roles R
and
Statuse Personality
s and
Social Self
Class Concept

Reference groups can have potent influence on


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

Where reference groups’ influence is operative, the


advertiser should stress not only the people who buy the

49
product but also those who influenced the purchasing
decision.

The process may be viewed as starting when the


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

Products, or how to evaluate them, the consumer


continues with a more involved external search for
information.

Any information stimuli are then subjected to information


processing activities. This process involves allocating
attention to available stimuli, deriving meaning from
these stimuli. The alternating evaluation phase involves
comparing the information gained in the search process

50
for alternative product and brands to the product judging
criteria on standards the consumer has developed. When
such a comparison leads to favourable evaluations, the
consumer is likely to develop a purchase intention
towards that alternative that received the most
favourable evaluation.

A purchase process follows strong purchasing intentions.


This involves a series of selection, including the type of
retail outlet as well the specific brand on service to use.
The consumer’s purchase then leads to various
outcomes. One such outcome is satisfaction as a result of
direct experience in using the brands. Satisfaction will
affect the consumer’s belief about the brand. Other
outcome is dissatisfaction and post sale doubt.

Many ad agencies conducted an in-depth study of


consumer buying behaviour and found that they all crave
for peer acceptance and parental non-influence. Beyond
this they are an enigma

51
52
(1). Gender of the consumer
Male &
Female
150 275

Male & Fem ale

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

ANALYSIS—
Data collected for project from 425
responded
in which 275 are female which are 64.7% and 150 are
male which are 35.29% of total respondent

Interpretation-
In total respondent we analyses
that most of the customer in this store is female and
their demand always consider at the time of taking the
decision. Company should try to attract new male
customer by provide new scheme on their customer

53
(2). Age of customer

10-20 21-50 51&


above
123 230 72
250
200
150
100
50
0
10-20 21-50 51& above

Data Collected-
Data 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

Interpretation-
In total respondent we analyses
that most of the customer are youth .in my observation
I found that most new people believe in convenience
shopping It help the company to keep management

54
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 ( )

Daily Week Fortnightl Once in


y month
22 224 89 90

250

200

150

100

50

0
Daily Week Fortnightly Once in month

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

55
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-
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.

56
What do you mostly shop for at
(4).
mentioned store?

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

Vegetable Grocery Cosmetic All


product product
108 96 21 200

Vegetable
Grocery
Cosmetic product
All product

Data Collected-
Data collected for this
questionnaire to know the products which are like to
purchase by the customer.
57
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
Interpretation-
In total respondent we analyses
that most of the customer are like to purchase all product
in the store. Company should try to retain the customer.
And should increase the variety o cosmetic product&
grocery.

58
(5). Preference of shopping?
Quality ( ) Brand ( ) Price ( ) one stop shop

Quality brand Price One stop


shop
102 134 59 130

quality
brand
price
One stop shop

Data Collected-
Data collected from this
questionnaire to know the preference the shopping

ANALYSIS—

59
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.

60
(6). which store do you kept in
preference for purchasing
Reliance Fresh ( ) Big apple ( ) other ( ) Local market

Local Reliance Big apple Other


market fresh
244 83 80 18

250

200

150

100

50

0
Reliance fresh Big apple Local market other

Data Collected-
Data collected from this
questionnaire to know the preference of the purchasing
(comparison of store to other).

61
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 didn’t 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.

62
(7). Do advertisement and promotion
influence your shopping decision?

Yes ( ) No ( )

Yes No
390 35

400
350
300
250
200
150
100
50
0
yes No

Data Collected-
Data collected from this
questionnaire to know the effect of promotion scheme on
purchasing.

63
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 doesn’t effect on purchasing.

Interpretation In my observation I found


promotion scheme is must to sustain customer attract
customer & influence the purchasing.

(8). Are Promotion scheme easy to


understand
Yes ( ) NO ( ) some time ( )

Yes no Some time


218 89 118

yes
no
Some time

Data Collected-
Data collected from this
questionnaire to know display of promotion scheme..
64
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

65
(9).How likely are you to recommend
Reliance Fresh to a friend or
relative? Would you say the chances
are?
Excellent ( ) Good ( ) Fair ( ) Poor ( )

Excellent Good Fair Poor


29 198 190 8

200

150

100

50

0
Excellent Good Fair Poor

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

66
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.

67
(10).Which form of advertisement do
you think is most effective?
Print ( ) TV ( ) Radio ( ) telephone ( )

Print TV Radio Telephon


e
74 119 56 176

180
160
140
120
100
80
60
40
20
0
print TV Radio Telephone

Data Collected-
Data collected from this
questionnaire to know the better advertisement mode of
promotion.

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

68
Interpretation -

According responded result company can choose


telephone as best for advertisement and call indusial for
attracting the customer

69
(11). Did you get help from CSA
when asked?
Yes ( ) No ( ) some time ( ) Never ( )

Yes NO Some time Never


192 95 124 14

200

150

100

50

0
yes NO Some time Never

Data Collected-
Data 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%.

70
Interpretation-

According respondent customers are not fully satisfied


company should recruit new skilled employee for better
performance.

71
72
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.

73
74
Limitations

The project has some limitations because it is totally


based on efforts of individuals. Peoples may be careless
and may not give correct answer to the questions,
because of so many reasons.

 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.

75
76
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.

77
Appendix

Reliance Fresh
Questionnaire
NAME-

GENDER-
AGE - Monthly income-

1- 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 ( )

78
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

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


9- Which form of advertisement do you think is most effective?

Print ( ) TV ( ) Radio ( )

10- Did you get help from CSA when asked?

Yes ( ) No ( ) some time ( ) Never ( )

79
References

Referred books-

Marketing Research – Paneerselvam


Research Methodology – C.R Kothari
Principles of Marketing – Philip Kotler

Referred site-

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

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