Study-of-consumer-buying-behaviour-in-reliance-fresh

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)

LUCKNOW

1

Study of Consumer Buying Behaviour

In
Reliance Fresh

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

LUCKNOW

2

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 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

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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 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

7

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
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.

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.
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

12

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.

16

The Group's activities span exploration and production of oil and gas,
petroleum refining and marketing, petrochemicals (polyester, fibre
intermediates, plastics and chemicals), textiles and retail.

Reliance enjoys global leadership in its businesses; The Group exports
products in excess of USD 15 billion to more than 100 countries in the
world. There are more than 25,000 employees on the rolls of Group
Companies. Major Group Companies are Reliance Industries Limited
(including main subsidiaries Reliance Petroleum Limited and Reliance
Retail limited) and Reliance Industrial Infrastructure Limited.

Reliance Industries Limited is India's largest private sector
conglomerate (and second largest overall) with an annual turnover of
US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal year ending
in March 2008 making it one of India's private sector Fortune Global
500 companies, being ranked at 206th position (2008). [1] It was
founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani
has been a pioneer in introducing financial instruments like fully
convertible debentures to the Indian stock markets. Ambani was one of
the first entrepreneurs to draw retail investors to the stock markets.
Critics allege that the rise of Reliance Industries to the top slot in terms
of market capitalization is largely due to Dhirubhai's ability to
manipulate the levers of a controlled economy to his advantage.

Though the company's oil-related operation forms the core of its
business, it has diversified its operations in recent years. After severe
differences between the founder's two sons, Mukesh Ambani and Anil
Ambani, the group was divided between them in 2006. In September
2008, Reliance Industries was the only Indian firm featured in the
Forbes's list of "world's 100 most respected companies"

17

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 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

19

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 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

20

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.

21

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

22

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
and regional area of India. Reliance plans to invest rs 25000 crores 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 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

24

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
and regional area of India. Reliance plans to invest Rs 25000 crores 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 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

25

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 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”

27

sUPPlY chain MoDels of Reliance
Retail

Reliance started its retail operations of Reliance Fresh stores with
following supply chain model. Procuring directly from the farmers
and operating with moderate margin but mass selling was key to
Reliance fresh operation for first few months. The following figure
depicts the first Reliance fresh model

RELIANCE FRESH

FARMERS FARMERS FARMERS
CATEGORY CATEGORY CATEGORY
1 2 3

Fa
rm n
ers atio
Ow or t
n COLLECTION ns p
Tra
n POINT/UNIT n Tra
sp
o Ow
rta
t ers
ion rm
Fa
RELIANCE OWN
LOGISTICS

PROCESSING
UNIT/POINT
RF s Re
ti c lia RF
o gi s nc
w nL eo
wn
c eo Lo
an gi s
Rel i ti c
s

RELIANCE FRESH RELIANCE FRESH RELIANCE FRESH
OUTLETS OUTLETS OUTLETS

28

WHOLESALE TRADING (WST) :
Reliance formalized its second supply chain model to shift itself from
grocery retailer to grocery supplier by focusing and establishing itself
in 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

29

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 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

31

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 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.

32

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.

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coRPoRate social ResPonsiBilitY

Today when most of the companies are busy in making profits by any
means, there are few
Ones who are focused to return this society, a part of what they have
earned through this society. Reliance retail is one of them. Following
efforts of reliance retail are aimed at benefiting the society making
reliance socially responsible:

1) Reliance Retail aims at recruiting people from the underprivileged
community in society. "Hence, we are planning to train students
from corporation schools and schools run by NGOs. And, we
consider this as a part of our corporate social responsibility," he
said.
Asked whether the company will take students on an
employment basis and pay them a stipend during the course
period, he said that actually, it is planning to charge a "small fee"
from those who want to join the course "as we want to bring in
some discipline and regularity among the students", and will
reimburse that once they are inducted into service.

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

34

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.

35

Major players in retail sector

shoPPeRs stoP:

Shoppers’ Stop is the pioneer of pan-nation one-stop retail outlets.
Starting in 1991 with a single store in Mumbai, it has now developed
more than 20 stores (total retail space crossed the 1 m mark in the
second quarter of FY07). The company has added 1,568,479 sq ft of
area during the year taking its total store area to 1,170,548 as on
March 2007. The company has a wholly owned subsidiary – Crossword
– a specialty retail chain with over 32 stores spread across the country.
This store specialises in books, gift articles and stationery. During the
quarter, Crossword opened its first store and 2 ‘Stop & Go’ stores at
the Mumbai domestic airport. Further, it forayed into airport retailing
through a joint venture with The Nuance Group AG of Switzerland. The
company has also made an entry into the entertainment sector by
acquiring 45% stake in Time zone Entertainment Pvt. Ltd. The recent
moves by the company will widen the offering and de-risk its
dependence on the flagship Shoppers’ Stop stores.

Pantaloon:

36

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’.

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

37

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 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

38

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.

39

Research Objective

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

40

Research Methodology

Research Problem

To make a comprehensive study of Reliance Fresh &know the Buying
behaviour & of Reliance Fresh customers.

Type of research

Descriptive type research has used to complete the project. This
research is base on fact finding enquires and the variables are totally
independent and uncontrollable.

Data collection:

Primary Data
Primary data of research are collected from direct resources (customer
of Reliance fresh) through questionnaire.

Secondary Data

42

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

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.

43

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 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.
45

Model of Buying Behaviour

Marketi
ng Other Buyer’s Buyer’s Buyer’s
Character
Stimuli Stimuli istics Decision Decision
Process

Problem
recognitio Product
Product Economic Cultural n choice
Technolog Informatio
Price ical Social n Search Brand choice
Dealer
Place Political Personal Evaluation choice
Promoti Psycholo Purchase
on Cultural gical Decision timing
Post Purchase
purchase amount
Behaviour

46

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
Reference Psychologica
culture Groups l
Cycle Stage Motivation
Subculture Family Economic Perception
Circumstance
s Learning
Beliefs and
Life Style Attitudes
Roles and Personality
Statuses and BUYER

Social Class Self Concept

Reference groups can have potent influence on behaviour in general,
and they may also be very influential on consumer behaviour,
considering the ‘Consumer Goods Segment’. Family and friends in
specific are considered before making a decision about purchasing a
product. But their purchase decision depends completely on self-
opinion.
47

Where reference groups’ influence is operative, the advertiser should
stress not only the people who buy the product but also those who
influenced the purchasing decision.

The process may be viewed as starting when the consumer engages in
problem recognition. Problem recognition occurs when the consumer
is activated by awareness of a sufficient difference between his / her
concept of ideal situation. The action occurs only when the consumer
perceives a sufficiently large discrepancy between the actual and ideal
states.
Given that the consumer is aroused to action, the next state is internal
search for a quick and largely unconscious review of memory for stored
information and of an experience regarding the problem. This
information in the form of beliefs and attitude influence the
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 for

48

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

49

(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

51

(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-
customer are youth .in my observation I found that most new people
believe in convenience shopping It help the company to keep
management such type which understand the problem of customer
easily and rectify the problem effectively.

52

(3). How offer do you shop
Daily ( ) week ( ) fortnightly ( ) once in month ( )

Daily Week Fortnightly Once in
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.

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

53

fortnightly which are 20.9%, 90 likely to purchase once in a month
which are21.17% of total respondent

Interpretation-
customer are likely to purchase on weekend .in my observation I
found that more scheme should be provided on weekend.

54

(4).What do you mostly shop for at 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.

ANALYSIS—
which 200 customer are like to purchase all product which are47.00%

55

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-
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.

56

(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—
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.%.

57

Interpretation
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.

58

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

Local Reliance fresh Big apple Other
market
244 83 80 18

250

200

150

100

50

0
Reliance fresh Big apple Local market other

Data Collected-
the preference of the purchasing (comparison of store to other).

ANALYSIS—
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
59

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.

60

(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-
the effect of promotion scheme on purchasing.

ANALYSIS—
390 customer are like promotion scheme which are91.76% and 35 are
those people which say promotion scheme doesn’t effect on
purchasing.

61

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-
display of promotion scheme..

ANALYSIS—
218 customer say yes which are51.29% and 89 are those which say no
which are 20.94 and 118 say some time.

62

Interpretation- Company should try making promotion scheme easy
understandable, promotion scheme should be in both in English &
Hindi

63

(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-
the satisfaction level of customer.

ANALYSIS—
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

64

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.

65

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

Print TV Radio Telephone
74 119 56 176

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

Data Collected-
the better advertisement mode of promotion.

ANALYSIS—
which 119 customer say TV which are28% and 74 say print which are
17.4%, 56 say Radio which are 13.17% and 176 customer are say
telephone.

Interpretation -

66

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

67

(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-
about CSA performance.

ANALYSIS—
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%.

68

Interpretation-

According respondent customers are not fully satisfied company
should recruit new skilled employee for better performance.

69

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.

71

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.

73

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.

75

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 ( )

76

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 ( )

77

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

78

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