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Desertation Reliance Abhishek
Desertation Reliance Abhishek
Desertation Reliance Abhishek
1
DECLARATION
Abhishek Chuahan
65/PGDMB/KJ/2018
2
CONTENTS
S.no. Description Page
no.
1 Acknowledgement 4
2 Executive Summary 5
9 Appendices
58
Bibliography
58
Questionnaire
59-67
3
Acknowledgement
For the completion of this project report, various people have put in
their efforts. I would like to thank and appreciate all the employees of
Reliance Trends, Fresh, Digital, Smart, Petro and Jio for their
supportive attitude and for answering my queries which helped me in
better understanding of the different aspects of the Reliance Retail
outlets.
Abhishek Chauhan
65/PGDMB/KJ/2018
4
EXECUTIVE SUMMARY
Reliance Retail is one of the major players and now it’s already a
big player after becoming the first one to be present in 6600 cities
with a total of 10,000 stores all over India.
The valuation of the Reliance Retail has reached about 2.5 lakh
crore in the unofficial market which is 75% more than its all
listed competitors put together.
5
CHAPTER-1
INTRODUCTION TO TOPIC
6
Understanding Retail
What is Retail?
Retail involves the sale of goods from a single point (malls, markets,
department stores etc) directly to the consumer in small quantities for
his end use. In a layman’s language, retailing is nothing but
transaction of goods between the seller and the end user as a single
unit (piece) or in small quantities to satisfy the needs of the individual
and for his direct consumption.
7
The store from where Tim purchased the handset must have shown
him several options for him to select one according to his budget and
need.
From where do you think the store owner (also called the retailer)
purchased all the handsets?
Here the manufacturers and the wholesalers come into the picture.
8
go for shopping but return home empty handed. Such a shopping is
merely for fun and is called window shopping. In window shopping,
individuals generally go to the market, check out various options and
their prices but do not buy anything. This kind of shopping helps to
break the monotony.
9
experience to the customers. Eventually hypermarkets and
supermarkets emerged. The evolution of the sector includes the
continuous improvement in the supply chain management,
distribution channels, technology, back-end operations, etc. this
would finally lead to more of consolidation, mergers and acquisitions
and huge investments.
10
Total consumption expenditure is expected to reach nearly US$
3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for
over 10 per cent of the country’s Gross Domestic Product (GDP) and
around 8 per cent of the employment. India is the world’s fifth-largest
global destination in the retail space.
Market Size
Retail market in India is projected to grow from an estimated US$
672 billion in 2017 to US$ 1,200 billion in 2021F. Online retail sales
are forecasted to grow at the rate of 31 per cent year-on-year to
reach US$ 32.70 billion in 2018.
India is expected to become the world’s fastest growing e-commerce
market, driven by robust investment in the sector and rapid increase
in the number of internet users. Various agencies have high
expectations about growth of Indian e-commerce markets.
Luxury market of India is expected to grow to US$ 30 billion by the
end of 2018 from US$ 23.8 billion 2017 supported by growing
exposure of international brands amongst Indian youth and higher
purchasing power of the upper class in tier 2 and 3 cities, according
to Assocham.
Investment Scenario
The Indian retail trading has received Foreign Direct Investment (FDI)
equity inflows totaling US$ 1.66 billion during April 2000–March 2019,
according to the Department of Industrial Policies and Promotion
(DIPP).
With the rising need for consumer goods in different sectors including
consumer electronics and home appliances, many companies have
invested in the Indian retail space in the past few months.
India’s retail sector investments doubled to reach Rs 1,300 crore
(US$ 180.18 million) in 2018.
Walmart Investments Cooperative U.A has invested Rs 2.75 billion
(US$ 37.68 million) in Wal-Mart India Pvt Ltd.
11
Government Initiatives
The Government of India has taken various initiatives to improve the
retail industry in India. Some of them are listed below:
The Government of India may change the Foreign Direct Investment
(FDI) rules in food processing, in a bid to permit e-commerce
12
companies and foreign retailers to sell Made in India consumer
products.
Government of India has allowed 100 per cent Foreign Direct
Investment (FDI) in online retail of goods and services through the
automatic route, thereby providing clarity on the existing businesses of
e-commerce companies operating in India.
Road Ahead
E-commerce is expanding steadily in the country. Customers have
the ever increasing choice of products at the lowest rates. E-
commerce is probably creating the biggest revolution in the retail
industry, and this trend would continue in the years to come. India's
e-commerce industry is forecasted to reach US$ 53 billion by 2018.
Retailers should leverage the digital retail channels (e-commerce),
which would enable them to spend less money on real estate while
reaching out to more customers in tier-2 and tier-3 cities.
It is projected that by 2021 traditional retail will hold a major share of
75 per cent, organized retail share will reach 18 per cent and e-
commerce retail share will reach 7 per cent of the total retail market.
Nevertheless, the long-term outlook for the industry is positive,
supported by rising incomes, favorable demographics, entry of
foreign players, and increasing urbanization.
Exchange Rate Used: INR 1 = US$ 0.0159 in FY19.
13
retail in top markets viz Delhi, Tamil Nadu, Gujarat, Haryana,
Maharashtra and Kerala remains largely untouched but has a
tremendous possibility, the report said citing Retail Potential Index of
National Council of Applied Economic Research (NCAER).
India is the fourth-largest consumer market in the world after the US,
China and Japan and is expected to take on Japan by 2030 to
emerge as the third biggest consumer market. The industry is riding
high on the back of a gamut of factors such as increasing disposable
levels, growing aspirations, favorable demographics, brand
awareness, improved standard of living and easy credit availability.
Also, the disruption brought by e-commerce has also played a vital
role even when only 12% of the Indian retail falls under the organized
segment. Out of the total organized retail segment, e-commerce’s
contribution is about one-fourth, according to the CARE Ratings
report.
14
CHAPTER-2
COMPANY PROFILE
15
COMPANY PROFILE
Textiles
Petrochemicals
Retail
Jio
Reliance Retail:
Reliance Retail is not just the largest retail chain in India, but also have
committed to “bettering the lives” by making difference on socio-
economic issues pertaining in India. The retail revolution by Reliance
Retail has provided millions of small producers & farmers a partnership
16
for their growth.
Consumer Electronics Business Reliance Digital, Reliance Express Mini, and Reliance JIO
stores
Fashion & Lifestyle Business Reliance Trends, Trends Women, Project Eve, Reliance
Footprint,
17
Reliance Jewels
In addition to this, it also has large number of partner brand stores all
over the country.
Reliance Trends:
18
Reliance Digital operates as the largest consumer electronics store
chain in India through a network of over 5,700 Digital and Jio stores.
They offer the widest variety of products including but not limiting to
Air Conditioners, Refrigerators, Washing Machines, Kitchen and
Home Appliances, and a wide range of accessories of new age
gadgets across all major product categories.
Reliance Smart:
Reliance Footprint:
Reliance Market:
AJIO:
19
Reliance Jewels:
Reliance Jewels was started in 2007, and today it has grown up to 68
stores. It is known for its high quality, competitive pricing and superior
customer service. It ensures peace of mind with its products such as
BI Shallmark gold, internationally certified diamonds and free jewelry
insurance.
Project Eve:
Project Eve is a women centric concept targeting independent and
rich women specially in the age of 25-40. It was started in Mumbai
and today it has expanded in 4 more cities namely Pune, Delhi,
Bengaluru and Chennai. It deals in a premium segment providing
almost everything that a woman requires to look and feel good. They
include brands like Kraus, Levi, Gucci, Elizabeth Arden and many
more.
20
4.It has strong distribution network- 1600
channels in villages
21
2.Operationg cost are too high
- Its wide footprint of stores across the country helps attract industry-
leading footfalls. As on June 30, 2019, RR’s 10,650-odd outlets, with
an aggregate retail space of 23 million square feet, were spread
across 6,700 cities and towns. In FY19, over 500 million customers
visited RR’s stores.
22
Reliance New Commerce
Continued investments
Market leadership
23
modern retail ecosystem), totaling 6.4 lakh tones, were sold by RR
alone. Reliance Trends’ and Reliance Digital’s sales have also been
ahead of its competitors. RR will continue to capitalize on this
advantage to generate higher asset turns, the benefits of which
should translate into better operating leverage.
Margin accretion
New categories
24
the premium toys, games and gifts segment. Hamleys operates in 18
countries globally. This acquisition could well be the starting point for
RR in terms of selling such products in more countries.
25
At a time when the erstwhile flagship segments (petrochemicals, oil
and gas, refining) have been facing growth challenges and Jio’s
investment cycle is now complete, most of Reliance Industries’ future
cash flows would be prioritized to expand RR. In conclusion, quite
clearly, RR will be the driving force for one of India’s largest
conglomerates.
26
CHAPTER-3
RESEARCH METHODOLOGY
27
Research Methodology
Research Design
The research design used in the study is descriptive research. The
project aimed to collect primary data by interacting with customers
visiting the store and observing them closely.
Data collection:
Primary Data
Secondary Data which are used for research to know the history
scope of Retail industry are collected from already available resources
like net and other sources.
28
o Survey Method- According to this method, information gathered
directly from individual respondents, either through personal
interviews or through mail questionnaires or telephone interviews.
For my project I gathered information from customers with a help of a
structured questionnaire.
o Observation Method- The research data is gathered through
observing and recording actions in a marketing situation. This
technique is highly accurate. It is an expensive technique. In this
dissertation project I observed the behavior and actions of customers
visited the store.
Objectives
29
recommend the store.
To get an information on demographics profile (age, gender,
occupation) of the shopper, how often they visit, who all
accompanied them in shopping.
30
CHAPTER-4
31
ANALYSIS AND INTERPRETATION
Quantitative Analysis
Gender
Male 69.30%
Female 30.70%
Age Group
46 - 60 years 4.39%
36 - 45 years 16.67%
26 - 35 years 24.56%
16 - 25 years 44.74%
32
The above table shows the occupation of the customers visiting the
stores. Most of the customers visiting the store falls under the
category of ‘Student’ and ‘Govt. employee/Armed forces (Officer
cadre), Corporate executive (Senior/Middle level), School Principal,
College Lecturer, University Professor, Doctor/Nurse/Compounder
employed with hospital/clinic’. It means that the majority chunk of the
customers was from middle class or upper middle class family.
Students are being the decision maker for themselves and their
family in this era of technology.
33
First Time/Repeaters
67%
The above figure shows that 66.67% of the total sample visiting to the
stores were the ones who have shopped earlier as well and 33.33%
were the one who visit the store for the very first time. It means that
through various promotional techniques and quality products, we can
attract new customers and can maintain the old ones too.
Frequency of Visit
Once in 1-2 weeks 21.05%
Once every 6 months1.32%
Once every 3 months 3.95%
Once every 1-2 month2.63%
Once a Month 48.68%
Once a week 17.11%
Every 2-3 days 3.95%
Daily1.32%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
Figure shows that out of those 66.67% customers who have visited
the store earlier, 48.68% of those were the regular shoppers or
visited the store every month, 21.05% were the one who shopped/
visit the store once in every 1-2 weeks and some of them also visit
the store every week. This shows that the some of the customers visit
the store very frequently for purchase of smaller products like
accessories. Most were also visiting frequently to check the latest
34
products, enquiring about the specific products they need and many
were just doing window shopping.
Accompainment
Alone
44% In a Group
56%
This figure shows that 56.14% of the customers visiting the store
were the ones who came alone and 43.86% were the one who came
in group or have someone to accompany them.
The objective of this chart is to know who all have accompanied with
the customer. This figure is in relation with the above figure which
shows that out of 43.86% customer who came in a group, 42% were
accompanied by their friends/ neighbors, 23% came in with their
spouse, 19% came in with their kids, 9% came in with their relatives
and some of them came in with their relatives & parents. Friends/
35
neighbors and family came all together to shop during the time of
discounts in order to maximize the benefits.
Planned Visit
40%
No
Yes
60%
This above pie chart represents the percentage of sample who have
planned their visit while going out of their houses or have came
especially to the stores to shopped. 60% of the customers were the
one who planned their visit. 40% were the one who came out of their
houses to shopped and visited the store looking for the collection or a
particular kind of product which will meet their requirements.
Mission Accomplished
Yes I bought some of the things which I wanted to buy3.51%
Bar graph above shows that 20.18% of the total customers were the
one bought everything which they wanted to buy. 76.32% were the
ones who didn’t buy anything as the store was not able to meet their
requirements and a few of them were there for window shopping and
a few bought some of the things they wanted to buy.
36
Other Formats Visited
No
42%
Yes
58%
Formats Visited
Jio Stores 15%
Reliance Petrol Pump 2%
Reliance Jewels 4%
Reliance Trends 44%
Reliance Footprints 0%
Reliance Digital 6%
Reliance Market 0%
Reliance Smart 0%
Reliance Fresh 30%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
The above pie chart and Bar graph shows that how many of the total
customers have visited the other formats. Out of all the customers,
58% of them have visited other Reliance stores, whereas 42% of the
customers have never visited at other Stores of Reliance Retail.
Among the 58% customers who visit other stores, 44% visit the
Reliance Trends, 30% of them visit Reliance fresh, 15% of them visit
the Jio Stores, 6% visit Reliance Digital, verfew visit reliance jewels
and petrol pump. It shows that for many of the stores promotions
should be done to create the awareness among the customers.
37
Distance from Store
Within 1 km 37.72%
Mode of Transport
Car 23%
2 Wheeler 40%
Cycle Rickshaw 2%
Local Train/Metro 7%
Bus 4%
Walk 21%
0% 5% 10% 15% 20% 25% 30% 35% 40%
The above chart shows the Mode of Transport used by the customers
for coming to the store. It helps the company to allot space for
parking accordingly and improve the experience of customers visiting
the store. From the above chart it is very clear that most of the
customers use 2 wheeler and car for coming to the store while many
where on foot too. Hence, most of the parking spaces needs to be
allotted for the cars and for 2-wheelers.
Shop Again
Yes 92.11%
No 0.88%
Maybe 7.02%
39
The above chart shows how many customers will visit the store again
on the basis of their overall shopping experience. Majority of the
customers who visited the store will again visit the store as the
experience they had in the store was worthwhile as per the study.
Recommend Store
Yes 87.72%
No 1.75%
Maybe 10.53%
The above chart shows how many of the customers will recommend
the store to their family, friends/neighbors and relatives. 87.72% of
the customers were the one who will definitely recommend the store
to their family, friends and relatives. Many of these customers visited
the store or start shopping from here because of the
recommendations given by their known ones on the basis of their
experience they had in the store.
Overall Satisfaction
Very dissatisfied: 1 0%
Somewhat dissatisfied: 2 0%
40
The above chart shows how satisfied were the customers with their
current visit. The scale on which overall experience of the customers
were measured is a satisfaction scale going from very satisfied to
very dissatisfied. 54% of the customers were very satisfied from the
shopping experience and 41% of the customers were somewhat
satisfied from the shopping experience which indicates that
improvements were required to make them fully satisfied. 5% of the
customers were neither satisfied nor dissatisfied which means that a
few of the indicators require the utmost care in order to make
customers visit satisfactory.
V S N S V
e o e o e
r m i m r
y e t e y
w h w
s h e h d
a a r a i
t t s t s
i a d s
s s t i a
f a i s t
i t s s i
e i f a s
d s i t f
: f e i i
i d s e
e f d
5
d n i :
: o e 1
r d
d :
4
i 2
s
s
a
t
i
s
f
i
e
41
d
:
3
Availability of 5 3 - - -
products 5 0 9 3 4
% % % % %
Variety and range of 5 3 - - -
products 8 4 5 2 1
% % % % %
Prices of products 4 3 - - -
in the store 4 2 1 4 4
% % 5 % %
%
Store Staff 7 2 - - -
Interaction 6 0 2 1 1
% % % % %
Time taken for 6 1 - 0 -
billing 7 9 8 % 1
% % % %
Cleanliness inside 9 6 - 0 0
the store 3 % 1 % %
% %
Space for movement 9 7 - 0 0
inside the store 2 % 1 % %
% %
Lighting / 8 9 - 0 0
illumination inside 9 % 2 % %
the store % %
Promotions, Offers 3 3 - - -
and Discount 8 3 2 2 3
Schemes % % 3 % %
%
Overall Checkout 7 1 - 0 0
Experience 3 9 8 % %
% % %
RelianceOne mobile 5 1 - - -
linked loyalty 5 3 1 4 4
programme % % 1 % %
%
Parking facility for 8 1 - 0 -
the store 1 1 4 % 1
% % % %
Signboards and 9 1 0 0 0
directions to easily 0 0 % % %
locate sections and % %
products
Air Conditioning 9 6 0 0 0
inside the store 4 % % % %
%
42
Product quality 8 1 - 0 0
8 1 1 % %
% % %
Toilet / Washroom 7 6 - - -
facilities 8 % 4 3 9
% % % %
Availability of latest 7 1 - 0 0
products/ models 9 9 2 % %
% % %
Assistance, 7 2 - 0 0
Information & 7 1 1 % %
Demonstration % % %
provided by sales
staff
Options for 7 2 - - -
extended warranty/ 1 3 2 2 1
AMC/ After Sales % % % % %
Service/ Installation
The table shows about the various attributes that were used to
evaluate the customer overall shopping experience on the basis of
satisfaction scale which were as follows:
43
somewhat dissatisfied and 4% were highly dissatisfied. This shows
that customers were somewhat satisfied with the prices.
Store Staff Interaction: The customers were in direct touch with the
staff and the efficiency in their dialogue determines the sales and
experience of the customers. In Reliance Digital, 76% were very
satisfied with the store staff experience, 20% were somewhat satisfied
and only 4% combined were neutral, somewhat dissatisfied and highly
dissatisfied. This shows that Reliance Retail format reliance trends has
been efficient enough in hiring their sales force as they never failed to
help out their customers and make them feel comfortable while
shopping.
Time taken for billing: Customer can spend a lot of time while
shopping but when it comes to stand in a queue for more than 10
minutes, nobody likes it. In Reliance Digital, 67% were very satisfied
with the time taken for billing, 19% were somewhat satisfied and 8%
were neutral about their decision.
Space for movement inside the store: No one likes to visit a store
where they feel congested and can’t freely move. 92% of the
customers were highly satisfied with the space provided to move in the
store whereas 7% were somewhat satisfied about this.
44
Promotions, offers and discounts scheme: This is one of the
important attributes which affects the buying behavior of customers
and the sales directly. For Reliance Digital, 38% were very satisfied
with the discount schemes and coupons, 33% were somewhat
satisfied, 23% were neutral about their decision. This indicates that
Reliance Digital is lacking in providing the discount and offers facility.
Parking Facility for the store: Customers expect to have a safe and
free parking space facility. 81% of the sample were very satisfied, 11%
were somewhat satisfied due to less availability of parking space
during weekends.
45
Signboards and directions to easily locate sections and product:
90% of the customers were very satisfied with this attribute and 10%
were somewhat satisfied which means that there is no issue in it as the
products in Reliance Digital are easily spot able.
Air conditioning inside the stores: Almost all of the customers were
very satisfied with the AC as 94% of the customers were very satisfied
with it.
46
Brand Level Satisfaction
Reliance stores are meant for people like me
I have faith that I will get the best service at a Reliance store
The above chart represents the brand level agreement for the whole
Reliance Retail Ltd. on various statements among the customers. It
shows various attributes which determines how much the customers
are happy with the brand. We can clearly have observed from the chart
area that majority of the customers agreed with all the statements
except with the one that states that customers get the best prices on
products at a reliance store and I shop at this store because it's a
Reliance store. It indicates that customers are not happy with the
prices of the products and also the same products are available in the
market with less price than what reliance offers and it's not necessary
for the store be a Reliance store then only customers will shop from
there.
No 30.70% No 57.89%
47
Shopped at AJIO.com
Yes 14.58%
No 85.42%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
48
AC didn’t work properly during my visit specially in the evening,
customers used to complain very much but AC was either not
working or was not that much effective.
There was no parking facility available for customers. Anyone who is
visiting the store for any purpose and having any vehicles, they have
to face the problem of parking their vehicles somewhere.
49
Customers were not getting any awareness about Mobile Linked
Loyalty program just like in digital.
The store is on two floors and there’s escalator within the store that
was not working which created a bad impression on the customers.
Customers complained there were many different product which they
checked on AJIO was not available in the store.
Staff was really helpful in this store out of all three stores I visited until
then including this one. They were very quick in helping customers,
solving their problems and giving them suggestion whenever required.
Manager and DMs were very good at their work. They were constantly
checking, keeping an eye on their staff and if needed being helpful
hand.
Staff room was not clean at all. There is very less space available for
staff to have lunch just like in Digital.
50
Reliance Petrol Pump (Najafgarh, Delhi)
The main issue customers were facing at the petrol pump was the non-
availability of the fuel. A large number of customers were coming from
very far leaving many Petrol Pumps behind because they wanted to get
petrol only from Reliance petrol pump because they have belief that
they will get right quality and quantity of the fuel here.
Though customers were not using toilet/washroom facility but the
condition of toilet/washroom was very poor. Maybe they had never
used but I have seen the condition is worse.
Staff was very helpful and genuine.
51
CHAPTER-5
52
FINDINGS AND INFERENCES
Customers falling under the age group of 16-25 years and 26-35
years constitute 44.74% and 24.76% of footfall in Reliance
Digital respectively. Facilities need to be installed and promoted
to attract other age groups as well, 46-60 years, and 60 years.
As Reliance Retail is not just only for the youth generation but
for every age group.
53
23.68% and junior level executives constitutes 7.02% of the
footfall. Housewife and student constitute 7.89% and 30.70% of
the footfall respectively. New discount offers, and plans needs
to be launched to attract footfall from the target customer falling
in other categories like business class family, self-employed
professionals, Retired, Small Shop Owner and others as well.
Majority of the customers are those who have visited the store
earlier and only 33% of the customers visited the store for very
first time. From those 33% majority of them would like to shop
again from the store and also recommend the store to their
known ones. New strategies should be adopted to make their
stay in the store worthwhile.
92.11% of the total customers are willing to shop again and out
of them 87.72% are willing to recommend their known ones to
shop here as well. During the interaction, I find out many of the
customers are recommended by their connections.
54
Reliance Loyalty program is not very popular among customers
as no one from the sale staff aware them about the program
and who knew about it were not happy with it because of the
low awarding scheme.
55
56
CHAPTER-6
CONCLUSION:
57
can provide a better shopping experience to the customers and
attract new ones as well. It also needs to promote and create
awareness about other stores to make them equally successful.
Recommendations
58
know about the Reliance petrol pumps but a few of them have
visited because petrol outlets are established outside Delhi.
Reliance Retail should establish one or two outlets inside the
city to create more awareness and to establish themselves
here.
Reliance Petrol Pumps falls short of fuel every other day. They
should work on their constant supply of fuel in order to
increase availability, customer retention and repeat purchase.
APPENDICES
Bibliography
http://www.naukrihub.com/india/retail/industry-evolution.html
https://en.wikipedia.org/wiki/Retailing_in_India
https://www.managementstudyguide.com/evolution-of-retail.htm
https://www.ibef.org/industry/retail-india.aspx
https://www.ril.com/
59
https://relianceretail.com/key-facts.html
https://relianceretail.com/our-business.html
https://www.financialexpress.com/industry/indian-retail-to-cross-1-trillion-
mark-by-2020-these-six-markets-will-drive-growth/1671085/
https://www.moneycontrol.com/news/business/economy/rbi-allows-fintech-
cos-financial-institutions-to-set-up-regulatory-sandbox-4333241.html
Questionnaire
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