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Operation Namaste: "A Study On Consumer Satisfaction Toward'S Reliance Fresh Stores in New Delhi "
Operation Namaste: "A Study On Consumer Satisfaction Toward'S Reliance Fresh Stores in New Delhi "
OPERATION NAMASTE
Submitted To:
Submitted by:
The field of Retail Industries has taken a giant leap at the threshold of
man all over the globe. The proverb ‘Need is the mother of invention’ is
the automation of various activities done in Retail Industries like how the
Retail Industries company doing there business and what is the Market
I am h e a rty gra te ful to Mr. Sud hir Sha ra n sir ( Dire c tor) . He
h as alw a y s be e n an inva lua ble s ourc e of ins pira tion.
proje c t work .
them.
DECLARATION
Place:
Date:
Signature of
project Guide:-
CONTENTS
Appendices
Questionnaire
References
Books
Web sources
Chapter 1
INTRODUCTION
&
BACKGROUND
COMPANY PROFILE
FOUNDER
"Growth has no limit at Reliance. I keep revising my vision.
Only when you can dream it, you can do it."
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1922 - July 6, 2002
Mukesh D. Ambani
Chairman & managing director
First, when experts and giants like future group Wal-Mart and Reliance they
are ready to start operations in retail what kind of strategies and structure
they would be having to get the competitive edge over each other and
established small and unorganized retailers.
Second, what kind of impact has been on other retailers including
unorganized ones with the opening of Reliance Fresh stores?
In the following case findings about Reliance Fresh were quite awakening
and exemplary.
Even after recent shutdown of Reliance fresh stores from UP and
unwelcoming vibes from states like Kerala, West Bengal, Orissa and
Jharkhand for its retail format (which was allegedly capturing the
unorganized sector and leaving thousands of self employed people jobless)
Reliance was not in any mood to hamper its 24000 crore plan. Reliance
responded with superb strategy in which it shifted its focus from retailer to
being a supplier i.e. targeting hawkers, vendors, Push cart wheelers instead
of customers.
Big retailers like Reliance have huge resources and network which directly
impacted many of the retailers some of whom are planning to quit. In our
sample size of 74 retailers more than 20 agreed to have lost as much as 40%
of their sales.
This case also discusses pros and cons of contract farming which on one part
assures farmers of price for their crop and knowledge about
fertilizers and seed but on other side has some obvious drawbacks like
monopoly of big retailers.
As a big market in which organized sector is poised to grow with 24% - 20%
annually our government must come with appropriate regulations to save
small retailers and our agricultural sector.
BACKGROUND OF RETAIL
Retail in India has started with the concept of weekly markets, where all the
traders gather at one
big place to sell their products every week. The people come to these weekly
markets to buy the
household items for the next one week. Village fairs and melas were also
common as it had more of an entertainment value. Once the people started
getting busy with their lives and when they turned entrepreneurial, there
emerged the mom and pop shops and the kiranas in the neighborhood. After
independence, came into existence the system of Public distribution of foods
through the ration shops, where food grains, sugar and oil for the daily
consumption were distributed at subsidized rates through the government
ration shops. The modern corporate retail formats are of the exclusive brand
outlets, hypermarkets and supermarkets, departmental stores and shopping
malls. But still the Indian consumer depends on the self-organized retail
shops for their daily needs.
This is largely due to the excellent food retailing system that was established
by the kirana (mom and-pop) stores that continue meet with all the
requirements of retail requirements albeit without
the convenience of the shopping as provided by the retail chains. The
Hawkers/lari galla vendors
and the local kiranas are the two main forms of unorganized retail in the
country, which almost
account for 97% of the total retail trade.
Giant corporations like Wal-Mart and Reliance have started to try and take
over the Indian retail
sector. Currently the value of the retail market is estimated at around $ 270
billion with a growth
rate of 4.7 per cent per annum according to the Indian retail report. The size
of small retail is big, the size of big retail is small, a mere Rs. 240 billion in
2003 or 2% and Rs. 384 billion or 3.7% per cent of the retail market in 2006.
However, the large scale corporate retail is projected to grow at the rate of
28% to 20% per annum, reaching Rs. 1000 billion or $ 70 billion by 2010
from the current size of US $ 8.7 billion. The tenfold increase in corporate
retail will be at the cost of small scale retail, which employs nearly 10% of
India’s population.
Reliance being the all encompassing company has entered into all
the sectors, retail being their latest.
Polymers Polypropylene
Repol High Density
Relene Polyethylene
Suitings
V2 Fabrics
COMPANY BACKGROUND
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 bounderies. 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 24000 crores in the next 3 years in their
retail division and plans to begin retail stores in 783 cities across the
country. The Reliance Fresh supermarket chain is RIL’s Rs 24,000 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 4 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
1,400 sq ft to 2,000 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 neighbour
store. However, this is only the entry roll-out that the company has planned.
Bangalore is said to have 30 stores in all by the end of the year.
In a dramatic change due circumstances prevaling 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 minimise 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. Reliance may exit some businesses if the
business does not increases by March 2008.
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, fibre
intermediates, plastics and chemicals), textiles, retail and special economic
zones.
MAJOR COMPETITOR
Big apple
264
More
Apna Bazar
Sabka Bazar
NEED FOR STUDY
The objective of the survey project report is to find out various things .Some
of them are mentioned below---
RESEARCH
METHODOLOGY
&
DESIGN
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
TYPE OF RESEARCH-
To Study the two stores of Reliance Fresh”. I have gone through various
news papers, magazines, websites and collected information and data. And
collected primary data to customer of reliance fresh. And my study based on
exploratory research.
DATA COLLECTION:-
(Primary Data)
Collect information through the customer of Reliance Fresh
(Secondary data)
In data collection method we shall collect the secondary data from the
following sources.
News paper
Magazine
Internet
PARAMETERS OF RESEARCH
Offer’s
Service
Satisfaction
Quality of Product
SURVEY DESIGN:
The study is a cross sectional study because the data were collected at a
single point of time. For the purpose of present study a related sample of
292
RESEARCH PERIOD:
The duration of Research work was of 2 months.
RESEARCH INSTRUMENT:
This work was carried out through self-administered questionnaires. The
questions included were open ended, dichotomous and offered multiple
choices.
DATA ANALYSIS:
The data was analyzed on the basis of suitable tables by using mathematical
techniques. The technique that I have used is bar graphs.
MS Excel
MS word
Chapter 3
DATACOLLECTIO
N
ANALYSIS
&
INTERPRETATION
Data Collected-
Data collected for this survey know the
demography ( gender) of reliance fresh customer
ANALYSIS—
The total number of respondent is 415 . 123 are
male and their contribution are 70.19 and 292 are females and
their contribution are29.8%.
Interpretation
In whole survey we found that most of
the customer in these store is female . this data is very helpful for
management at the time of decision . by this survey company
always consider female demand.
200
150
100
50
0
Reliance more Big apple 365
fresh
Data Collected-
Data collected for this survey to know
the consumer preference to shopping.
ANALYSIS—
The total number of respondent is 415 . 202
prefer Reliance fresh and their contribution are 38.79 %122 like
Big apple &their contribution is 29.22 %, 72 like more &
contribute 17.20% . 19 people like 264 store and their
contribution are2.80%.
Interpretation
According this questionnaire I observed
that I observed that most of the people like reliance fresh or big
apple according to this analysis we should try to attract new other
store customer and try to detail our customer various promotion
scheme.
Data Collected-
Data collected for this survey to know the
consumer choice for there shopping.
ANALYSIS—
The total number of respondent is 415. 127 prefer Retail
store and their contribution are 20.40 % 288 like to shop from local shop
keeper.
Interpretation
According this questionnaire I observed that
unorganized retail sector the first choice of the customer which tells us
company should try to penetrate many tact and technique to attract the new
customer.
ANALYSIS—
The total number of respondent is 415 . 196 responded
satisfied with the price of the store 32 responded said price is lower than
other competitors price,129 responded not satisfied with the price and said
price is higher than the competitor. 12 responded said price is much higher
than local market and 35 said they have no idea of other competitors.
Interpretation
According this questionnaire I observed that
,price play significant role in purchasing most of the people are satisfied
with the price and company should try to again keep the price lower than
competitor to retain the customer.
ANALYSIS—
The total number of respondent is 415. ,120 responded
like better services and 122 like offers and 93 customers are those customer
which prefer qualitative product and 80 responded like low price.
Interpretation
According this questionnaire I observed that most of
the customer like better service and better offers , company should try to
provide better services full fill the need of customers and provide the offer
like voucher scheme and weekend offer to retain old customer and attract
new customer.
200
150
100
50
0
Excellent Good Average Bad
Data Collected-
Data collected for this survey to know the
satisfaction level of the customer.
ANALYSIS—
The total number of respondent is 415 . 229 responded
said good 126 said average 34 said bad 26 said excellent about store.
Interpretation
According this questionnaire I observed that
most of the customer are satisfied but the non satisfied customer also in big
quantity company should try to rectify the problem of the customer
immediately and full fill there need providing better services .
200
150
100
50
0
Very good Good Don’t Bad Very bad
know
Data Collected-
Data collected for this survey to know the which
product customer demand.
ANALYSIS—
The total number of respondent is 415 . 229 responded
are satisfied with verity of goods 42 are more satisfied 122 responded are
not satisfied 9 customer are fully disappointed with the product range and 13
responded has no idea
Interpretation
According this questionnaire I observed that
most of the customer are satisfied with product range and product line store
should try to maintain this product range and try to add some other products
in there range .
Chapter 4
RESEARCH
FINDING’S
FINDING’S
Few years back shopping were not common among the customers. But with
the organized Retail revolution now we can find almost customer shopping
on organized Retail store.
Most of the customer prefers shopping in local market than Retail store.
Most preferred Reliance Retail stores , because in Reliance fresh store they
purchase is convenient and at fixed price.
ANALYSIS
OF
FINDINGS
&
CONCLUSION
CONCLUSION
LIMITATIONS
OF
THE PROJECT
LIMITATIONS
All the findings and analysis are based only on the responses of
the repondent..
Chapter 7
SUGGESTION
&
RECOMMENDATIONS
SUGGESTION
Price was higher than market price, so reduce the price of the products
customer like to purchase From store.
Many times fresh fruits, vegetable were not available in the store
because store manger not care these products they shown bad quality
product in next morning.
Dump ratio was very high in the Stores, because store manager was
not reducing price in the evening.
Payment counters were not work properly, customer were wait -24-20
min for billing., So customers was irritated to purchase. start all
payment counter for billing
Provide separate A/C section
Government banned poly bags. So any other option not started by
reliance fresh.
Provide paper carry bags to customers
Reliance one card not give to daily coming customer they have only
temporary card, so provide hard card to good customers.
CSA was not very active with customer and they have no knowledge
about sale.
Quality of the vegetable s was not good in the stores because DC not
send good quality vegetables.
RECOMMENDATIONS
PRICING
IMPROVEMENT IN TECHNOLOGY
Quality standard of product was very poor in the stores, many times good
quality vegetables not found by customer.
PROMOTIONAL SCHEMES
Yes No
BIBLIOGRAPHY
BOOKS:
WEB RESOURCES:
www.ril.com
www.google.com
MAGAZINE:
Outlook Express
Business today
Money Outlook
NEWS PAPER:
Business standard
Times of India
Economic times