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Management Thesis
On
“A Study Of Consumer Attitude Towards
Organized Retail Outlet”
With
Special Reference
To
2008-10 BATCH
Page 1 of 66
CONTENTS
• I am grateful to our centre head Mr. Jagdish Patel, who if not directly but
indirectly have been involved in the back hand activities of my project
which proved out to be a back bone for the same.
• I would like to thank Mr. Mobin Sheikh and Mr. Ajay Patel for their
genuine guidance and help when ever required.
• Last but not the least I would also like to thank my friends and collogues
for their constant guidance and support.
• I would like to thank and appreciate all that support and help, who have
been directly or indirectly involved in making Management Thesis.
ABBREVIATION
Page 3 of 66
• GDP: Growth domestic product
Page 4 of 66
SUMMARY
• Retail trade at present accounts for 10 to 11 per cent of GDP and India ranks
first in the Annual Global Retail Development Index 2006. Organized retail
in India is virgin territory and the share of organized retailing in urban areas
is between 12 and 20 per cent and is growing at 30 per cent annually.
According to a McKinsey report on `Retailing in India,' the sector is set to
grow as large as US $ 500 billion by 2010.
• The Indian retail market, which is the fifth largest retail destination globally,
according to industry estimates it is estimated to grow from the US$ 330
billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015.
Simultaneously, modern retail is likely to increase its share in the total retail
market to 22 per cent by 2010.
• Reliance Fresh
The retail chain division of Reliance Industries of India which is headed by Mr.
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 croreS venture and it plans to add more
stores across different areas 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
Page 5 of 66
students and housewives in customer care and quality services for part-time
jobs.
RESEARCH OBJECTIVES
After the whole project I can conclude my work as per the following points.
• Indians are price sensitive they seek value for money so price also matter
for Indian customers
• The reason for which people prefer to buy from organized retail store is
variety of product available under one roof and customer has not to move
from one shop to another shop for his/her daily needs
Page 6 of 66
• Most of the people in Gujarat use to purchase their daily needs whenever
they require.
INTRODUCTION
The Indian retail market, which is the fifth largest retail destination globally,
according to industry estimates it is estimated to grow from the US$ 330
billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015.
Simultaneously, modern retail is likely to increase its share in the total retail
market to 22 per cent by 2010.
Chart 1.1 Graph showing Predicted Mall Distribution Space in India
Retail and Real Estate are the two booming sectors of India and if industry
experts are to be believed, the prospects of both the sectors are mutually
dependent on each other. Retail, India’s one of largest industry, has presently
Page 7 of 66
emerged as one of the most dynamic and fast growing industries with several
players entering in the market.
Page 8 of 66
• INTRODUCTION OF THE COMPANY
RELIANCE INDUSTRIES LIMITED
Page 10 of 66
• RELIANCE AT A GLANCE
Reliance Industries Limited
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, fiber 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, fiber
intermediates, plastics and chemicals), textiles and retail.
Reliance enjoys global leadership in its businesses, being the largest polyester
yarn and fiber producer in the world and among the top five to ten producers in
the world in major petrochemical products.
The Group exports products in excess of US$ 20 billion to 108 countries in the
world. Major Group Companies are Reliance Industries Limited (including
main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited )
and Reliance Industrial Infrastructure Limited.
RIL is the first and only private sector company from India to feature in the
Fortune Global 500 list of World’s Largest Corporations' and ranks amongst the
world's Top 200 companies in terms of profits. RIL is amongst the 25 fastest
climbers ranked by Fortune. RIL
Page 11 of 66
• RELIANCE PRODUCTS & BRANDS
The Company expanded into textiles in 1975. Since its initial public offering in
1977, the Company has expanded rapidly and integrated backwards into other
industry sectors, most notably the production of petrochemicals and the refining
of crude oil.
The Company now has operations that span from the exploration and
production of oil and gas to the manufacture of petroleum products, polyester
products, polyester intermediates, plastics, polymer intermediates, chemicals
and synthetic textiles and fabrics.
The Company from time to time seeks to further diversify into other industries.
In January 2006, the Company approved a plan to establish a retail business
through a subsidiary Reliance Retail Limited that will operate, among other
things, supermarkets, convenience stores and specialty stores across India. The
Company approved initial expenditure of US$ 750 million to fund the initial
stages of this plan.
The Company's major products and brands, from oil and gas to textiles are
tightly integrated and benefit from synergies across the Company. Central to the
Company's operations is its vertical backward integration strategy; raw
materials such as PTA, MEG, ethylene, propylene and normal paraffin that
were previously imported at a higher cost and subject to import duties are now
sourced from within the Company. This has had a positive effect on the
Company's operating margins and interest costs and decreased the Company's
exposure to the cyclicality of markets and raw material prices. The Company
believes that this strategy is also important in maintaining a domestic market
leadership position in its major product lines and in providing a competitive
advantage.
Page 12 of 66
• RELIANCE RETAIL VISION AND MISSION
VISION
“To be the most admired and successful organized Retail company in India that
materially enhances the quality of life of every Indian”
MISSION
Page 13 of 66
• INTRODUCTION TO RELIANCE FRESH
Reliance Fresh recently opened several "Fresh" outlets in Chennai, New Delhi,
Hyderabad, Jaipur, Mumbai, Chandigarh, Ludhiana and in Ahmedabad also.
There are 38 Reliance Fresh
stores in Ahmedabad and they
are also planning to open new 40
stores over there. Reliance is
still testing its retail concepts by
controlled entry beginning in the
southern states. Reliance 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
Page 14 of 66
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.
Location
Location of the stores and its format there are 38 Reliance Fresh store in
different locations in Ahmedabad city.
8 A.M – 9 P.M.
Store Size
There are store of different sizes and sizes vary from 2000 Sq. ft to 8500 Sq. ft.
Company Website
www. ril.com
Page 15 of 66
• COMPETITORS
More
More Quality
More Variety
More Convenience
More Value
These are the four delivery cornerstones of the more chain of supermarket
stores. There are nearly 14 stores of More in Ahmedabad City and giving
intense competition to Reliance Fresh Ltd and other organized Retailers in
Ahmedabad City.
Indiabulls mart
Page 16 of 66
Spencer
Spencer’s Retail is one of India’s fastest growing retail stores with multiple
formats and retailing food, apparel, fashion, electronics, lifestyle products,
music and books. Established in 1996,
• Spencer’s Hypermarkets
• Spencer’s Super
one of the largest supermarket chains in the food and grocery segment in India.
• Spencer’s Daily
small format stores conveniently located with a range of products to meet your
daily household needs.
• Spencer’s Express
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6Ten stores
Subhiksha
Page 18 of 66
Future Group
Future Group is one of the country’s leading business groups present in retail,
asset management, consumer finance, insurance, retail media, retail spaces and
logistics. The group’s flagship company, Pantaloon Retail (India) Limited
operates over 7 million square feet of retail space, has over 1000 stores across
53 cities in India and employs over 25,000 people. Some of its leading retail
formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town,
eZone, Depot, Future Money and online retail format, futurebazaar.com.
The group's subsidiary companies include, Home Solutions Retail India Ltd,
Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing.
The group also has joint venture companies with a number of partners including
French retailer Etam group, Lee Cooper, Manipal Healthcare, Talwalkar's, Gini
& Jony and Liberty Shoes. Planet Retail, a group company owns the franchisee
of international brands like Marks & Spencer, Debenhams, Next and Guess in
India. Future Group companies also includes, Future Capital Holdings, Future
Generali India Indus League Clothing and Galaxy Entertainment that manages
Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the group’s
financial arm, focuses on asset management and consumer credit. It manages
assets worth over $1 billion that are being invested in developing retail real
estate and consumer-related brands and hotels.
The group’s joint venture partners include Italian insurance major, Generali,
French retailer ETAM group, US-based stationary products retailer, Staples Inc
and UK-based Lee Cooper and India-based Talwalkar’s, Blue Foods and
Liberty Shoes.
Page 19 of 66
Partner Companies
Footmart Retail
GJ Future Fashions
Big Bazaar
Big Bazaar is the part of future group and pantaloon India ltd. Big Bazaar is the
hyper market kind of retail format. It offers many types of product in a wild
range of variety. Big Bazaar offers value. And not just to its customer. At
present 101 stores established of Big Bazaar across India. Value to those who
benefit when property prices shoot up around Big Bazaar location. Value to the
entrepreneurs Big Bazaar sources from. Value, to cottage industry in the
vicinity, Value, to more then 21,680 employees.
Page 20 of 66
REVIEW OF LITERATURE
Retail is India's largest industry. It accounts for over 10 per cent of the
India's GDP and around eight per cent of the employment. Retail sector is
one of India's fastest growing sectors with a 5 per cent compounded
annual growth rate. India's huge middle class base and its untapped retail
industry are key attractions for global retail giants planning to enter
newer markets. Driven by changing lifestyles, strong income growth and
favorable demographic patterns, Indian retail is expected to grow 25 per
cent annually. It is expected that retail in India could be worth US$ 175-
200 billion by 2016.
Theoretical concept are taken from the different books as mention in the
references. The other information is taken from the different web sites.
Other data are taken from the different sources are mention in references.
Page 21 of 66
The organized retail industry in India had not evolved till the early 1990s.
Until then, the industry was dominated by the un-organized sector. It was
a seller’s market, with a limited number of brands, and little choice
available to customers. Lack of trained manpower, tax laws and
government regulations all discouraged the growth of organized retailing
in India during that period. Lack of consumer awareness and restrictions
over entry of foreign players into the sector also contributed to the delay
in the growth of organized retailing. Foundation for organized retail in
India was laid by Kishore Biyani of Pantaloon Retails India Limited
(PRIL). Following Pantaloon's successful venture a host of Indian
business giants such as Reliance, Bharti, Birla and others are now
entering into retail sector.
But there is a flip side to the boom in the retail sector. It is feared that the
Page 22 of 66
in India is not hurdle free. The taxation system still favors small retail
business.
Trained human resource for retail is another big challenge. The talent
base is limited and with the entry of big giants there is a cat fight among
them to retain this talent. This has resulted in big salary hikes at the level
of upper and middle management and thereby eroding the profit margin
of the business.
But retail offers tremendous for the growth of Indian economy. If all the
above challenges are tackled prudently there is a great potential that retail
may offer employment opportunities to millions living in small town and
cities and in the process distributing the benefits of economic boom and
resulting in equitable growth.
Page 23 of 66
INTRODUCTION OF PROJECT REPORT
• PROJECT TITLE
Consumer Attitude
Demographics
Psychographics
Situation
The main aim of this Project to find out the reason what exactly prefer a Retail
outlet while purchasing this reason may be:
Location
Ambiance of the store
Pricing
Quality
Variety
Customer Services
Page 24 of 66
Or I can say that I came to know about the purchasing pattern of the customer
then I as a retailer can change ourselves according to customer purchasing
pattern.
• KEY RESPONSIBILITIES
There are 38 Reliance fresh store in Ahmedabad some of them are working
good means high sales and some of them are not working good means low
sales. So, I had been allotted 7 stores to do catchment study
Page 25 of 66
• WHAT IS CATCHMENT ANALYSIS…?
Catchment means to find out information of the customer, competitors etc. and
suitable location to open the store in a particular area means
Purchasing pattern
Number of super value ( Hindustan liver product sale is more that Rs.
1 lac monthly) stores in that store
From this data I come to know about our customer and I can analysis
the purchasing pattern of the customer
Catchment Analysis Format For The Stores Within 2 K.M Radius
Catchment Analysis
List of Residential List of Organized
Societies / Flats List of Organized Retailer( competitor) Retailer( Competitor)
Sr. No. of
Name Sr. No. Name Area in SFT Format Category
No. Households
1 1 Staples
2 2 PF & Beverages
3 3 Pharmacy
4 4 Dairy
5 5 Consumer Durables
6 6 Apparel
7 7 Stationary/Toys/Gifts/Books/
8 8 Apparel
9 9 GM ADU,HF&EH
10 10 Florist
11 List of Govt./ Pvt .Offices/Banks List of Restaurants/Eat Outs
12 Sr. No. Name Approx Employee Names
13 1
14 2
15 3
16 4
17 5
18 6
List of
Cinemas/Entertainmet
19 List of Education Institutes Centres
Sr.
20 No. Name Approx Students Names
21 1
22 2
23 3
Page 27 of 66
After catchment analysis I have to make a report on catchment and Observation
about
Store operation
Customer
Location
Pricing strategy of competitors
Research type
Exploratory research
Information sources
Primary data
Sample Size
200 People
Page 28 of 66
• FINALIZING RESEARCH INSTRUMENT / DATA
Personal interview are taken while doing catchment survey of Reliance Fresh
Stores.
Data Collection
Page 29 of 66
ANALYSIS AND RESULTS
I have divided my question in to three parts general information like
respondents age, sex, name etc. warm up questions family size, education
qualification, business types. And lastly main purpose questions. (all questions
were put in annexure - i)
Results shows out of 200, 80 respondents were female and 120 were male. Out
of 200 130 respondents are under the age of 25-35.
Most of the respondents having family size of four members, 3members and
five and above. Around 10 percent people having family size of two member.
Family having less than five members having high disposable income. “Newly
wed” group also having high disposable income.
Page 30 of 66
Que.2: What is your Educational Qualification?
EDUCATIONAL QUALIFICATION AHEMDABAD
th
10 Pass 08
th
12 Pass 18
Graduate 72
Post Graduate 80
Result reveled that most of the respondents are educated generally graduate and
post graduate.
Page 31 of 66
Result reveled that most of the respondents are doing privet job. People doing
privet job having varied income and they are more sensitive towards safety
need. They are generally investing their money for future.
There are significant amount of people who visit the retail store as a leisure
time activity and children’s demand. Significant amount of people come for
purchasing general merchandise from the retail store.
Page 32 of 66
• Main purpose questions
Ans.
Mom and Pop store Big Bazaar
Analysis:-
39, 20% 4, 2%
35, 18%
Page 33 of 66
• As per survey conducted
48% of People are purchasing their daily needs from Mom and Pop
store because of convenience is the main factors for them. Some of
the Customers always prefer to buy their daily needs from Mom &
Pop store because they are situated very near to them.
12% of People are purchasing their daily needs from More, Well
More (Aditya Birla Group) is not so much Popular among the People
because they are lacking in awareness
2% of People are purchasing their daily needs from other Stores like
Spencer’s, Subhiksha, India Bulls Mart and Vishal Mega Mart etc.
It shows that people still like to purchase from Mom and Pop store and
Street Vendors because they are situated very near to them.
Page 34 of 66
• Q 2. From where do you come to know about the above store?
Ans.
Family Print media
Analysis:-
180
156
160
140
120
No. of People
100
80
60
40
22
20 14
6 2
0
Family Friends Print Media Radio & TV Others
Series1 14 22 156 6 2
Page 35 of 66
• As per survey conducted
Others like Radio & TV, Friends and informed by family are
following nearly 9 to 10 %
So, from the above data we can conclude that still print media is catching the
eyes of consumer.
• Q 3. According to you what are important factors for you when you go
for shopping?
(Rank 1 to 5)
Ans.
Location Customer Services
Quality
Analysis:-
Page 36 of 66
Graph showing customers preference for selection retail outlet
6 12
100% 26 40 24
90% 22 60
80% 30 56 116 Rank 5
56
70% Rank 4
60% 46 50
50% 66 Rank 3
No. of % people 50
38
40% 42 Rank 2
30% 76 30 14 Rank 1
20% 48 36 16
24 16
10%
0% Quality
Location Pricing & Variety Customer
Discount Services
Nearly 40% of people prefer location as their first priority to buy their
daily needs because everybody in Ahmedabad is looking for
convenience
33% of people prefer quality of the product as their second priority for
the daily needs, quality means freshness of vegetable, cleanliness of
stores
25% of people prefer Pricing & Discount of the product as their third
priority for the daily needs because in Ahmedabad city People are
price sensitive
30% of people prefer Variety of the product as their forth priority for
the daily needs
More than 50% of people look after customer service as their least
priority for the daily needs.
We can conclude that people look after nearest location and quality of product
while purchasing daily needs.
Page 37 of 66
• Q 4. When do you purchase more?
Ans.
First week of month Mid of the month
Analysis:-
Frist
Month,of week of
46, 23%
When Required,
104, 52% Mid of the Month,
38, 19%
Page 38 of 66
• As per survey conducted
More than 50% of people purchase when they require means there is no
fix time to buy their daily needs but, When they feel the need of product
they immediately buy it
23% of people purchase their daily needs within the first week of the
month. Some of the survey people prefer to buy their daily needs in first
week of the month because service class people get their salary in the
first week of the starting month
So, we can conclude that people like to buy when they feel need of that
particular product.
Analysis:-
Page 39 of 66
Graph showing purchasing pattern of different categories
6
100%
10 4 34 32 40 30
90%
80%
70% 86 48 66
60% 100
M o re tha n M o nth
N o .o f % p e o p le 5 0 % 138 22
46 M o nthly
40%
F o rtnig hlty
30% 94 30 62
20% 54 W e e k ly
32 22 D a ily
10% 12 20
4 6 2
0%
F& V G ro ce ry C o sm e tic sB e ve ra g e s Re a d y to
& S na ck s e a t fo o d
C a ta g o rie s
It has been observed that people mostly prefer to buy fruits and
vegetables daily or weekly as they are perishable product and they are too
difficult to store without refrigerator and most of the surveyed people
come under monthly family income slab of Rs. 5,000-15,0000
While grocery and staples product are purchased at least once in a month,
because they are not perishable like Fruits & Vegetable and this is people
tendency to preserve grocery and staples once in week
Some of the people prefer to preserve grocery and staples only once in a
year
While cosmetics and ready to eat food are meant to be bought at least
once in a month because it has been clearly observed in the survey that
people from Ahmedabad city especially women are not very fond of
cosmetics product any how.
Page 40 of 66
• Q 6. Have you ever visited Reliance Fresh store? (If yes than only
go ahead)
Ans.
Yes No
Analysis:-
64, 32%
Yes
No
136, 68%
68% of people have at least once visited any of the Reliance Fresh stores,
because there are nearly 40 Reliance Fresh stores across the Ahmedabad
so people visit Reliance fresh stores
From the survey people only 32% of People refused to visit the Reliance
Fresh store
Page 41 of 66
So there is good response for Reliance fresh as compared to its competitors.
Ans.
Analysis:-
6 6 5 7
100% 7 9
18 8 25
90% 17 28
80% 63
70%
60% 93
85 84
N o . o f % P e o p l5e 0 % 93 74 P oor
40% A ve ra g e
30% 57
20% G ood
27 28 26 27 E x c e lle n t
10% 10 13
0%
C o n ve n ie n cAem b ia n c e P ric e Q u a lit y S e rvic e P ro d u c t
A va ila b ilit y
F a c to r s
Page 42 of 66
More than 70% of people satisfied with the convenience of the Reliance
Fresh store because now it is situated in every area of Ahmedabad city
with Prime Location
80% of people like the ambiance of the Reliance Fresh store like
assortments of Fruits and Vegetables, Chillers are used for Dairy
Products and Beverages
Nearly 50% of people think that price of Reliance Fresh product are
Average because they don’t find much difference between Prices of
Reliance Fresh stores and other stores located in the city like Spencer’s,
More, 6Ten etc,
70% of people feel good about Quality, Service and Product Availability
are offered by Reliance fresh Ltd in Ahmedabad city
So, we can conclude that people are not very satisfied with the pricing of
Reliance Fresh product
Ans.
Less than 3 K.M 3 K.M -6 K.M
Analysis:-
Page 43 of 66
Particular No. of People
Less than 3 KM 88
3 KM to 6 KM 33
7 KM to 10 KM 9
More than 10 KM 6
3 KM to 6 KM,
33, 24% Less than 3
KM, 88, 65%
It has been observed that People always prefer to buy their daily needs
from the nearest store which is less than 3 K.M
While some people who don’t have Reliance fresh store within their
locality they still prefer to go beyond 3 K.M to purchase their daily needs
So, we can conclude that majority of people always prefer to purchase from
nearest place.
Page 44 of 66
• Q 9. How do you find employees attitude in the Reliance Fresh store?
Ans.
Co-Operative Rude
Analysis:-
Co-Operative,
86, 63%
Rude, 18, 13%
Page 45 of 66
• As per survey conducted
63% of consumers who visited Reliance fresh stores they always find
CSAs and other staff behavior very co-operative because they think that
CSAs approach them from their front and always willing to help them
any how
Whereas 24% of People think that they have to always call CSAs to help
them anyhow also Customers think that they are demotivated towards
their works
While only 13% of People think that CSAs and other staff behave very
rudely with them.
So, we can conclude Consumers are much satisfied with service level of CSAs
and other staff of Reliance Fresh Ltd.
• Q 10. How do you find customer service in the Reliance Fresh store?
Ans.
Excellent Good
Average Poor
Analysis:-
Excellent, 47,
35%
Page 46 of 66
While 48% of surveyed people find it good means they don’t have to
wait for their turn
So, we can conclude that customer service level is very good by Reliance fresh
towards its potential customers.
• Q 11. Do you find the pricing of Reliance Fresh store is less than other
store?
Ans.
Yes No Equal
Analysis:-
Equal, 28,
21% Yes, 47,
35%
Page 47 of 66
44% of People think that the prices of daily needs are higher than outside
means Local vendors and street vendors or other organized retail format
While 35% of People find it lower than outside and other organized store
Ans.
Analysis:-
Graph showing monthly family income of the customer who visit Reliance
fresh Stores
140 120
No. of People
120
100
80
48 Series1
60
40 26
20 6
0
5000- 15000- 25000- More than
15000 25000 50000 50000
Income Level
Page 48 of 66
• As per survey conducted
We can conclude that here in Reliance fresh store is having every kind of
Customers like Higher Class, Middle Class and Lower Class of People
Page 49 of 66
INTERPRETATION OF RESULTS
• Most of the people prefer to purchase their daily needs products from Mom
and Pop stores and street vendors because of convenience location
• 80% of people come to know about organized stores through print media
and other printing advertisement
Location
Quality
Variety
Customer Service
• It has been clearly observed that in Ahmedabad city there no fix time of
purchasing daily needs products but, whenever they feel need of the product
they immediately purchase it
• Ready to food like Maggie, Biscuits and Kharkharas are bought on weekly
basis
Page 50 of 66
• In Ahmedabad city People don’t prefer to eat Frozen foods and readymade
food like frozen vegetables, Frozen meat much
• Increase the number of female in purchasing the products because of the
demographic changes.
• The response for Reliance Fresh from the surveyed people is quite good
about 70% of surveyed people have at least once visited any of the Reliance
fresh stores
• Customer find the Convenience, Quality ,Service ,Product availability are
good of the Reliance Fresh store and pricing of the products are average as
per survey
• Most of the People always like to visit nearest Reliance fresh stores in their
locality
• In any of the Reliance Fresh stores most of the consumers find employees
behavior very co-operative towards them
• About 1/5 of the customer find that CSA staff behavior is rude toward
customer
• Most of the people found that customer services are good in Reliance Fresh
store
• Most of the people found that pricing of the Reliance Fresh store is higher
than outside
• In survey we find most of the people are from lower income group
Page 51 of 66
• According to w size of four members, 3members and five and above.
Around 10 percent people having family size of two member.
• Family having less than five members having high disposable income.
“Newly wed” group also having high disposable income.
• Result reveled that most of the respondents are educated generally graduate
and post graduate. Result reveled that most of the respondents are doing
privet job. arm up questions it is seen that Most of the respondents having
family
• People doing privet job having varied income and they are more sensitive
towards safety need. They are generally investing their money for future.
• There are significant amount of people who visit the retail store as a leisure
time activity and children’s demand. Significant amount of people come for
purchasing general merchandise from the retail store.
Page 52 of 66
RECOMMENDATION FOR RELIANCE FRESH
• As per survey conducted most of the people came to know about organized
store because of print media so Reliance must put more emphasis on this
channel of communication and promotion means print media
Page 53 of 66
• People don’t prefer to buy frozen food and prefer to eat homemade food so
Reliance fresh must not put frozen food in Reliance fresh store to save
inventory cost
• As about 33 % customer found that CSA does not approach customer from
the front the CSA only help when they are asked to help, so CSA staff must
approach to customer from the front and help the customer and try to sell
more and more items to increase the sale of Reliance Fresh store
• As some the customer found the CSA behavior is rude toward the customer
so CSA must change their attitude toward customer and feel the customer
proud because customer is King and a satisfied customer can bring 10 new
customer by word of mouth it just like a chain
• As most of the customer found that pricing of the items in Reliance fresh
store is higher than outside and as Indians are price sensitive so must keep
pricing of our products less than outside
• As our most of the customer are from lower income group so we must keep
merchandise according to their needs.
• Most of the people visit the retail store as a leisure time activity so retail
store should use some strategy to generate some income from such people
like retail store should charge for vehicle parking. Store also put some items
to increase “impulse buying”
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• As the increase of woman in purchasing and visiting the retail store, store
should carry such items which can increase the attention of the woman.
We have asked some of the customer in Reliance Fresh store to give suggestion
to make Reliance Fresh store to make it more better some of the valuable
suggestions are as follows:-
• Most of the customer suggested that Fruits and vegetables must be fresh in
store because of brand name Reliance Fresh ( Reliance Fresh)
• Credit facility must be provide to the customer just like local Mom and Pop
( Kirana wala) provides
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• CSA’s service must be good
• There must be enough number of POS and all must be in working condition
during peak hours because customer has to wait in queue
• All items should be in enough quantity some time customer find some items
out of stock (butter milk, curd etc.)
CONCLUSION
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• The reason for which people prefer to buy from organized retail store is
variety of product available under one roof and customer has not to move
from one shop to another shop for his/her daily needs
• Most of the people in Gujarat use to purchase their daily needs whenever
they require.
TERMINOLOGY
• Chain store
Stores that have two or more retail out lets that are commonly owned and
monitored. These stores are have a centralized buying, and merchandise system
and sell similar lines of merchandise.
• Combination store
A blend of super market and a general merchandise contributes more
than 40 percent of the sales.
• Consumer markets
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It consist of the individuals, households, which are ultimate users of
goods and services.
• Consumer buying behavior
The response and reaction of the ultimate consumer to various situations
involved in purchasing and using various goods and services.
• Convenience goods
Products that customers buy frequently, such as fruits, vegetables,
groceries.
• Convenience store
Small stores that are located near residential areas. It caters to customers
who prefer convenience buying or shopping to the price of the products.
• Conventional supermarket
Stores that focus on food and household maintenance products. These
stores earn very limited revenues from the sale of non food or general
merchandise goods.
• Hyper market
A large retail store that offers products at a low price. It is a
combination of discount store and a food based supermarket.
• Isolated store
A freestanding retail outlet situated either on a street or a highway.
Stores of this kind do not have any retailers in their vicinity with whom they
have to share consumers.
• Market area analysis
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Analyzing regional and local markets to determine the area that seems to
offer the highest market potential. Such an assessment is called market area
analysis.
• Merchandise Mix
The total range of products that a store offers to its customers.
• Primary trade area
The trade area that consist of fifty to eighty percent of the store’s
customers. This area is nearest to the store, has a highest density of customers
to population, and contributes the highest per capita sales.
• Regional shopping centre
A planned shopping centre catering to a geographically dispersed market.
It consist of at least one big department store and 50 or more small retailer.
• Retail entrepreneur
A person who has the ability to organize, manage and take on the
responsibility of running a retailing activity/ business.
• Retail market
A group of customers who have common or similar needs which can be
collectively addressed by retailer who choose to cater to the same group or
customer segment.
• Retailer
The last entity of the distribution channel.
• Retailing
A set of business activity that adds value to the products and services sold
to the final customers for their personal, family or house hold use.
• Trade area Analysis
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Trade areas refer to the places from which most of the customers are
drawn. The process of selecting trade areas is known as trade area analysis.
• Trade area
A geographical area containing the customers of particular firm or group of
firms for specific goods or services.
• Warehouse store
The store are discount food retailers with the size of 100,000 square feet.
They cater to customers who look for low price deals.
BIBLIOGRAPHY
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• Marketing Management by Kotler, Kelly, Kozy and Jha
• www.Google.com
• www.rai.com
• www.ril.com
• www.reliancefresh.info
ANNEXURE I
• QUESTIONNAIRE
General questions:
Name :
_______________________________________________________________
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City : _______________________
Gender: Age:
18-20 21-24
Male Female 25-29 30-34
35-45 46-54
55 or
Warm up questions: Above
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Purchase of general product
• Main purpose questions:
Ans.
Mom and Pop store Big Bazaar
Q2. From where do you come to know about the above store?
Ans.
Family Print media
Radio and TV
Q3. According to you what is important thing for you when you go
for shopping? (Rank 1 to 5)
Ans.
Location Pricing & Discounts
Variety
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Q4. When do you purchase more?
Ans.
First week of month Mid of the month
Ans.
F&V
Grocery
Cosmetics
Beverages
& Snacks
Ready to
eat food
Q6. Have you ever visited Reliance Fresh store? (If yes than only go
ahead)
Ans.
Yes No
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Q7. Rate the following on the basis of your experience?
Ans.
1. Excellent 2. Good 3. Average 4.Poor
Q8. How far you have to travel to go for purchasing from Reliance
Fresh?
Ans.
Less than 3 K.M 3K.M -6 K.M
Q9. How do you find employees attitude in the Reliance Fresh store?
Ans.
Co-Operative Rude
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Q10. How do you find customer service in the Reliance Fresh store?
Ans.
Excellent Good
Average Poor
Q11. Do you find the pricing of Reliance Fresh store is less than
other store?
Ans.
Yes No
Equal
Name ……………………………………………………………………
5000-15000 15000-25000
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