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Toaz - Info Reliance Fresh Project Study PR
Toaz - Info Reliance Fresh Project Study PR
2008-2010
Marudhar Engineering college
Reliance fresh
PREFACE
As without any digit, there is no meaning of zero’s; in the same way, without any
practical experience there is absolutely no relevance of just the theoretical kn
owledge. A management program remains incomplete without any practical training
i.e. without the test of any real business and management problems.
A person just cannot learn swimming by merely reading hundreds of books on it; h
e practically swims in the water to learn swimming. Similarly, management traini
ng remains incomplete without the taste of real business scenario and management
problems.
This practical training develops a feeling about the industrial management envir
onment and gain much more fruitful insight.
Acknowledgement
Gratitude is the language of heart, when the language is from the heart, emotion
s prevails and when emotions prevails words fails.”
I express my sincere thanks to my project guide, of
Management and technology, for guiding me right form the inception till the succ
essful completion of the project. I sincerely acknowledge her for extending thei
r valuable guidance, support for literature, critical reviews of project and the
report and above all the moral support she had provided to me with all stages o
f this project.
I would also like to thank the supporting staff Mr.Ramesh Arora (Head Product Li
ne) for their help and cooperation throughout our project.
(Signature of Student)
Ishali harsh
Executive Summary
In the recent one-two years Bikaner city growing at a fast pace, in terms of inc
ome level, life style, spending pattern of the consumers, If we go before 10 ye
ars back Bikaner condition was not like current time so it’s very essential part t
o have a deep knowledge about changing perception of customers. Now the situatio
n has been change people prefer to do shopping from these convenience retail out
lets. There would be various reasons for that as:-
More advancement and awareness among people from promotional activities.
Prompt services provided by the retail outlets.
Changing customer’s perception regarding purchasing from big retail outlet
s.
Changing Life style of Bikaner.
Income of the people growing Day by Day.
Influence of T.V & Society upon Child.
More Facilities provided by retail outs, they feel good to do shopping f
rom big outlets.
Increasing in number of working women.
But the major reasons behind are:-
1) Increasing income level of Bikaner people especially due to implementati
on of the 6th pay commission, this increase the disposable income of the people.
2) There is also raise in private jobs and adding to increase income level
in Bikaner.
The above reasons tend to manipulate the 3 situations.
A) Consumption pattern of consumers.
B) Spending power of people.
C) And the way people purchase the products of their daily necessities.
This study is completely based on customer satisfaction at various income levels
with respect to Reliance fresh products in Bikaner.
People here in Bikaner are moving towards convenience store because as the priva
te employment is increasing in Bikaner. This tends to people has less time for s
hopping. So they prefer to shop from convenience stores, discounting stores. Rel
iance fresh is the brand which providing all the daily necessities products unde
r the one roof with good ambience for shopping and atmosphere is also appreciabl
e. Observation shows that behavior of line staff is really good and not biased d
ue to the amount of spending for purchase.
The given management research is based on income level and the customer satisfac
tion, for the study the same two hypothesis are formulated, one hypothesis is st
ate that “There is no significance difference between Income level and consumer
satisfaction with respect to Reliance Fresh products” and the other one is “There is
significance difference between Income level and consumer satisfaction with r
espect to Reliance Fresh” for testing the hypothesis chi- square test is employed
which will reach to the final results of the study.
The inference from the study depicting that the location of Reli
ance fresh outlets are basically in the area where people are having good income
level and also consisting women from the age groups of 25- 30 and above and are
more prone towards shopping from these convenience store outlets.
Today the entire firm engaged in a process of creating a life time value and rel
ationship with customers. This report start with discussion on the diversity of
consumer behaviour and the need for studying consumer buying behaviour and consu
mer as a related field of marketing .this can be largely be attributed to the p
revailing market situation .Today the company image is built and made known by i
ts customers. Thus success of the firm determined how effective it has been in m
eeting the diverse consumer need and wants by treating each customer as unique a
nd offering products and services to suit has or her need.
Consumer buying behaviour will be a primary force in determining how this transi
tion will evolve. Getting closer to the customer in today’s highly competitive lan
dscape 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 ente
rprise, sensing and responding rapidly to consumer demand in a co-ordinated mann
er. Detailed analysis of the changing patterns of consumer demand, shopping tre
nds.
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
CHATER TOPIC
CHAPTER- 1 INTRODUCTION &BACKGROUND
Introduction to industry
CHATER-2 Company Overview
Popular Profile
Supply Chain Model
Major Player
CHAPTER-3 RESEARCH METHODOLOGY &DESIGN
Objective of Research
Type of Research
Source of data & Collection tool
Sampling & Sample size
CHAPTER -4 Facts &finding
CHAPTER-5 ANALYSIS & INTERPRETATION
Interpretation of collect data
CHAPTER-6 SWOT analysis
CHAPTER-7 Conclusion & limitation of research
CHAPTER-8 Recommendation & suggestion
CHAPTER-9 Appendix
CHAPTER-10 Biblography
Contents
CHAPTER 1
INTRODUCTION &BACKGROUND
Recent Trends :
Retailing in India is witnessing a huge revamping exercise as can be seen in the
graph
India is rated the fifth most attractive emerging retail market: a potential gol
dmine.
Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade
) makes up 3 percent or US$ 6.4 billion
As per a report by KPMG the annual growth of department stores is estimated at 2
4%
Ranked second in a Global Retail Development Index of 30 developing countries dr
awn up by AT Kearney.
(Chapter 2)
Introduction to the Organization
(Company overview)
RELIANCE
"Growth has no limit at Reliance. I keep revising my vision. Only when you can d
ream it, you can do it."
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 large
st 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 com
pany, Reliance Industries Limited, is a Fortune Global 500 company and is the la
rgest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and grow
th 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 pro
duction - 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, plastic
s 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 m
ore 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 Lim
ited.
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 o
f US$ 4.85 billion for the fiscal year ending in March 2008 making it one of Ind
ia 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 conv
ertible debentures to the Indian stock markets. Ambani was one of the first entr
epreneurs 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 i
s largely due to Dhirubhai s ability to manipulate the levers of a controlled ec
onomy to his advantage.
Though the company s oil-related operation forms the core of its business, it ha
s diversified its operations in recent years. After severe differences between t
he founder s two sons, Mukesh Ambani and Anil Ambani, the group was divided betw
een them in 2006. In September 2008, Reliance Industries was the only Indian fir
m featured in the Forbes s list of "world s 100 most respected companies"
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
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 i
n 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 p
artners in apparel, optical and office products businesses. Further, RRL will co
ntinue to seek synergistic opportunities with other international players as wel
l. This year, RRL will continue its focus on rapid expansion of the existing and
other new formats across India.
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
RELIANCE fRESH
APKA FRESH APKE PADAOS ME
Reliance fresh is the retail chain division of reliance industries of India whic
h 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. Rel
iance plans to invest rs 25000 crores in the next 4 years in their retail divisi
on and plans to begin retail stores in 784 cities across the country. The relian
ce fresh supermarket chain is ril’s rs 25,000 crore venture and it plans to add mo
re 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 an
d supply-chain for non-vegetarian products. Besides, the stores would provide di
rect employment to 5 lakh young Indians and indirect job opportunities to a mill
ion people, according to the company. The company also has plans to train studen
ts 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 ex
panding but
Reliance is quite different. Reliance has developed such huge amount of resource
s and capital over the years that whenever it steps into any segment it is not r
equired to wait for growing signal, that’s why it always thinks of expanding witho
ut 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 whic
h 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. Rel
iance plans to invest Rs 25000 crores in the next 4 years in their retail divisi
on and plans to begin retail stores in 784 cities across the country. The Relian
ce Fresh supermarket chain is RIL’s Rs 25,000 crore venture and it plans to add mo
re 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 supp
ly-chain for non-vegetarian products. Besides, the stores would provide direct e
mployment to 5 lakh young Indians and indirect job opportunities to a million pe
ople, 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, FM
CG 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 ha
ve 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 s
tocking. Reliance Retail has decided to minimize its exposure in the fruit and v
egetable business and position Reliance Fresh as a pure play super market focusi
ng 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 polit
ical reasons, and partly due to its inability to create a robust supply chain. T
his 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 ide
a the company spoke about was to source from farmers and sell directly to the co
nsumer removing middlemen out of the way.
FARM TO FORK
The Reliance retail company sources say it is setting aside Rs 50,000 crore to b
uild 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 t
o service these. It has already rolled out 177 Reliance Fresh stores across majo
r towns in 11 states. According to a company report, RIL is targeting a turnover
of Rs 40,000 crore in the next few years. TRADITIONAL MODEL OF RETAIL RELIANCE
“FARM TO FORK”
Reliance started its retail operations of Reliance Fresh stores with follo
wing supply chain model. Procuring directly from the farmers and operating with
moderate margin but mass selling was key to Reliance fresh operation for first f
ew months. The following figure depicts the first Reliance fresh model
RELIANCE FRESH
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. Ca
n be 2 to 3 hours.
more
The more. Chain of supermarkets, are bright and clean stores, at convenient lo
cations 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 ma
ny problems faced by housewives while shopping for their daily needs. The retail
offering from the Aditya Birla Group, has been crafted after in-depth research
of the needs and expectations of the Indian consumers. more. is the answer to th
e shopping needs of the Indian housewife who wants a modern and convenient optio
n in her neighbourhood, with an attractive and consistent range of products? mor
e. assures consumers the security of knowing that they are paying the best price
in the market for good quality products.
RPG Group:
Provogue (India) Ltd., (PIL) formerly Acme Clothing Pvt. Ltd was incorporated i
n November 1997, converted in to a public limited company in March 2005. It deal
s with fabrics, dyestuffs, chemicals and textile machinery. PIL operates in two
core industry segments. The first being designing, manufacturing and selling bra
nded ready-made garments and other accessories under the brand Provogue . The s
econd business is export of finished fabrics, dyestuffs, chemicals and textile m
achinery to several markets in African continent.
CHAPTER 3
Research Methodology
TITLE OF STUDY
The title of the whole study is “Consumer satisfaction at various income
level of Bikaner city with respect to RELIANCE FRESH PRODUCTS”.
OBJECTIVE OF STUDY
Under this topic we need to identify first about need of a cu
stomer and divide them in to different segments like various income levels and t
heir preference regarding purchasing from mom n pop stores and retail outlets, t
hen to know that they really satisfied with to do shopping from these outlets
with respect to their various income levels.
So the objective of this study to get insights in:
To get the details of consumers satisfaction in context of the local Mom
& pop stores.
To know the scope of different retail stores in reference to the existin
g Mom & Pop stores.
The study will give an insight into the private label and consumer satis
faction with the same.
The effect of income level on the buying behavior of consumer satisfacti
on.
Understanding the consumer’s attitudes, involvement and motivation levels
with various products/ brands in the market.
Understanding the urban life that affect purchasing pattern.
Understanding the behavioral changes of consumer spending habits and to
know what, when, why, where, how consumers influence to purchase the products.
To know about which factors influence the buying behavior of consumers.
To study the consumer perception about the big retail outlets in Bikaner
city.
To know that Reliance fresh’s membership scheme is valuable to increase th
e sale.
To know which segment is most profitable or generate high sales.
Hypothesis:-
Hypothesis can be defined as “making assumptions”. These are the con
jectural statements of the relationship between two or more variables that carry
clear implications for testing the stated relations and also classify research
problem into statement which can be tested. These can be considered as probable
answers to the research problem.
Testing of Hypothesis:-
Most of the times decisions are based on the inferences drawn fr
om a sample and hence the researcher is uncertain about the validity of the samp
le in representing the actual population.
We can test the validity of the hypothetical parameter by the us
e of hypothesis testing. Hypothesis test, also known as test of significance, en
able us to decide on the basis of the sample result if the deviation between the
observed sample statistic and the hypothetical parameter value (or) statistic i
s significant (or) might be attributed to chance (or) the fluctuations of sampli
ng.
These types of questions can be evaluated using the statistical techniques calle
d Hypothesis – Testing. It enables the researcher to determine the validity of his
hypothesis concerned with a particular issue. It also enables the researcher to
decide whether data from a sample will provide support to a particular hypothes
is; based on which it can be generalized to the overall population.
In this case hypothesis used are as follows
Null Hypothesis
The null hypothesis asserts that there is no (si
gnificant) difference between the statistic and the population parameter and wha
tever observed difference is there, it is merely due to chance (fluctuations in
sampling from the same population). Null hypothesis is usually denotes by the sy
mbol “ Ho”
R.A. Fisher defined null hypothesis as “The hypothesis which is te
sted for possible rejection under the assumption that it is true”
In the case of Reliance fresh, the null-hypothesis assumed is “The
re is no significance difference between Income level and consumer satisfactio
n with respect to Reliance Fresh”
Alternative Hypothesis
Any hypothesis which contradicts the null hypothesis H0 is called an alternativ
e hypothesis and is denoted by the symbol “H1”.
In the case of Reliance fresh, the alternative hypothesis assume
d is “There is significance difference between Income level and consumer satisfa
ction with respect to Reliance Fresh”
TYPE OF RESEARCH AND SAMPLE SIZE
Secondary data collection sources or exploratory research
The information which can be collected from available source of
information’s, called exploratory research or secondary data collection. These sou
rces are internet, magazines, periodicals, books, journals etc.
Non-participative
It means observes the research subject from a distance without inferring.
In this case, while standing in the Reliance fresh outlet and pl
aying the role of the customer, observe the customer’s product chosen behavior and
making purchase decision.
Survey method
This is the most common method of data collection and applied by
almost all kind research, because this method is able to provide valuable infor
mation on people’s opinion and perception about various issues which are related t
o research problem.Survey generally involves interviewing a chosen sample for ge
tting the required information. Survey can be conducted through a wide variety o
f channels like mail, face to face, internet, telephone etc.
In the case of Reliance fresh outlet survey method is being chos
en:-
Face to face interview
In this survey method interviewer directly approaches
the subject and after seeking the permission takes an interview. This kind of pe
rsonal interview generally conducted at the retail outlets.
In the case of Reliance fresh outlet face to face interview meth
od was chosen, hence the customers are interviewed at the retail outlet on the s
pot.
Mail survey
This is also widely used channel of survey and it involves a que
stionnaire (a set of questions) to be mailed / posted to the sample or responden
ts, who return the filled questionnaire.
In the case of Reliance fresh outlet questionnaire sent via mail
to friends to get the responses.
RESEARCH METHODOLOGY
Research Methodology includes the overall description the process adopted for th
e survey of the project. It includes the research design, sample design, samplin
g procedure, data collection method etc.
Research methodology is a way to systematically solve the research problem. It m
ay be understood as science of studying how research is done scientifically.
Research Design
The research design is the arrangement of conditions for collection and analysi
s of data in a manner than aims to combine relevance to the research purpose
with economy in procedure. The research carried out in this project was Explora
tory in nature.
Research Design Exploratory
Data Source Primary & Secondary data
Research Instrument Questionnaire
Sample Plan Reliance Retail Office and Store
s
Sample Size 50 AND 29
Sampling Procedure Randomized Sampling
CHAPTER 3
Data Collected-
Data collected for this questionnaire to
know the gender of customer of reliance fresh.
ANALYSIS—
Data collected for project from 150 responded
in which 100 are female.which are 66.6% and 50 are male which are 33.33% of tota
l respondent
Interpretation-
In total respondent we analyses that most o
f 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
Data Collected-
Data collected for this questionnaire to
know the age group of customer of reliance fresh.
ANALYSIS—
Data collected for project from 150 responded in whic
h highest age groups comes in 25-30 range (36%) and lowest are in above 40 range
(8.66%).
Interpretation-
In total respondent we analyses that most o
f the customer in this store are 25-30 age group and their demand always conside
r at the time of taking the decision. Company should try to attract new custo
mer by provide new scheme on their customer
Data Collected-
Data collected for this questionnaire to
know the customer occupation.
ANALYSIS—
Data collected for project from 150 responded in whic
h highest family occupation 65 are private employe and lowest 38 are government
employe.
Interpretation-
In total respondent we analyses that most o
f the customer comes in this store are engaged in private sector and some have
own business and government occupation.
Data Collected-
Data collected for this questionnaire to
know the customer’s monthly income
ANALYSIS—
Data collected for project from 150 responded in whic
h coustomer’s montly income is above 20000 are 58. and below 10000 are 12 customer’s
comes in reliance fresh.
Interpretation-
In total respondent we analyses that most o
f the customer’s montly income is above 20000 those mostly comes in this store an
d lowest customer’s montly income is below 10000 they rarely comes in this store b
ecause for higher price of the products.
Data Collected-
Data collected for this questionnaire to
know the customer prefer Sunday for shoping.
ANALYSIS—
Data collected for project from 150 responded in whic
h 33 (22%) customers prefer Sunday for shoping.
Interpretation-
In total respondent we analyses that most o
f the customer comes in Sunday. Because the customer comes in reliance fresh th
ey belong to private sector and Sunday is free day in private sector.
Data Collected-
Data collected for this questionnaire to
know the customer spend on one time shoping
ANALYSIS—
Data collected for project from 150 responded in whic
h 64 (42.66%) customer spend 200-500 in one time shoping.
Interpretation-
In total respondent we analyses that most o
f the customer comes in Sunday and they do one week shoping so they spend 200-5
00 in one time shoping
7..In reliance fresh which segment you prefer most for shopping?
A. Household products (70)
B. Electronics (10)
C. Vegetables and fruit (55)
D. Stationary (15)
Data Collected-
Data collected for this questionnaire to
know the customer prefer which segment in reliance fresh.
ANALYSIS—
Data collected for project from 150 responded in whic
h 70 (47%) customer prefer household products and 10(7%) prefer electronics prod
ucts.
Interpretation-
In total respondent we analyses that most o
f the customer prefers household products .because mostly females comes in relia
nce fresh.
8. which of the following factor which encourage most you to change your ma
in shopping place?
A. Wide choice of products (51)
B. Lower prices (46)
C. Nice store environment (31)
D. Membership (22)
Data Collected-
Data collected for this questionnaire to
know the why customer change your shoping place.
ANALYSIS—
Data collected for project from 150 responded in whic
h 51 (34%) customer told that wide choice of products change her shoping place.
Interpretation-
9. What are the top 5 factors do you consider most important for buying products
?
(Please rank them from the most proffered (1) to least preferred (5).
Attributes (1) (2) (3) (4) (5)
Price
53 32 23 13 0
Packaging
21 5 12 13 25
Social aspect 2 0 4 4 13
Friend’s suggestion 7 6 9 17 58
Quality
23 49 32 18 7
Freshness
48 41 32 13 8
Brand name 10 11 22 55 28
10. which store do you kept in mostly preference for purchasing
(A) Reliance fresh ( 50)
(B) Vishal mega mart (20)
(c) Local market (60)
(D) other (30)
Data Collected-
Data collected for this questionnaire to
know the which store customer mostly preference for purchasing.
ANALYSIS—
Data collected for project from 150 responded in whic
h 60 (38%) customer prefer local market and 50(34%) prefer reliance fresh for pu
rchasing.
Interpretation-
In total respondent we analyses that most o
f the customer prefers local market for purchasing because reliance fresh produc
ts price are higher than local market.
Data Collected-
Data collected for this questionnaire to
know the quality of fruits and vegetable in reliance fresh according to custome
rs.
ANALYSIS—
Data collected for project from 150 responded in whic
h 60 (40%) customer say good quality and 10 (7%) say poor quality
Interpretation-
12. Which form of advertisement do you think is most effective?
(A) T .v (65)
(B) Radio (30)
(C) Print media (35)
(D) Telephone (20)
Data Collected-
Data collected for this questionnaire to
know the most effective form of advertising for increase selling.
ANALYSIS—
Data collected for project from 150 responded in whic
h 65 (43%) customer say t.v is most effective way and lowest 20 (13%) say telep
hone is most effective advertising way for increasing selling.
Interpretation-
CHAPTER 5
Quantitative Analysis
Quantitative research is a structured approach to data- collection method. It
uses different techniques of measurement, in which questionnaire is most widely
used method.
Quantitative technique is the best possible method to get the ac
curate results. In this study quantitative approach is used so as to get the ide
as and perceptions of the respondents in numerical form along with getting accur
acy. As by adopting this very kind of approach to study, we can well get the tru
e picture that what the customer really thinks about the topic. What is the pict
ure which is present in his or her mind? And hence we can get accurate ideas abo
ut their perceptions and can derive results with utmost accuracy. For this very
purpose we can take good amount of respondents from the representative populatio
n. Hence for making the result and the research study a perfect picture of the t
rue customer ideas, quantitative approach can be used.
Reason for choosing this approach
In the case of Reliance fresh outlet, this approach is u
sed to get the perception and ideas of each and every kind of customer whether f
rom middle income group to higher income group can be taken or whether male or f
emale. Filling up of the questionnaire by various customer group makes the resea
rch study more and more specific and deep as it gives out different kinds of res
ponses, ideas, perception and attitude which helps in making the correct evalu
ation of the study. Meeting with various kinds of customer and understanding the
ir way of thinking also makes the study detailed and gives good feedback.
Data collection:- Questionnaire method is used. So the main source of the pr
imary data – collection is the questionnaire.
Questionnaire method
Questionnaire in simply can be defined as a set of questions, to
be asked from the respondents in an interview. It is widely used tool to get th
e desired information directly from the customers.
It is a form of series of questions, which can be classified int
o:-
Open ended questions
A type of question that requires participants to respond in his/
her own words without being restricted to pre-defined response choices is calle
d open ended questions and also known as infinite response or unsaturated- type
questions.
Close ended questions
Questions, which restrict the interviewee’s answer to pre-defined response options
, are called close ended questions.
Further Ranking questions, Checklist questions and Likert scale are bei
ng used in some questions.
Ranking questions
These questions require the participants
to rank the responses options listed on a continuum basis in order to their pre
ference.
In the given management thesis of Reliance fresh, questionnaire
method is being used to get the responses from the respondents. The question in
which ranking method is used as follows:-
Question 1: Due to most preferable shopping place, what are the top 4 reasons t
hat you shop from there?
(Please rank them from the most preferred (1) to the least preferred (4).
A). Value for money ( ) E). Advertisement ( )
B).Friend’s suggestion ( ) F).Convenience ( )
C). Fresh products ( ) G). If any other, specify_______
D). Good store image ( )
Checklist questions
These are questions where the participant has the freedom to cho
ose one or more of the response options available. This is the different form of
multiple choice questions.
Question 1: In reliance fresh which segments you prefer most for shopping?
A. Grocery D. Electronics
B. Apparels E. Vegetables and Fruits
C. Household products F. Stationary
Likert scale
Likert scales consist of a series of statements where th
e respondent provides answer in the form of degree of agreement or disagreement.
The respondent selects a numerical score for each statement to indicate the deg
ree of agreement.
Likert scale is widely used for measure the attitudes of the customers.
Question 1: What do think about the Reliance fresh’s store:-
(Please indicate your response on the scale of 1 to 5, 1 for not very good and 5
for very good)
a) Store interior (1) (2) (3) (4)
(5)
b) Easy visibility of products (1) (2) (3)
(4) (5)
c) Range of products (1) (2) (3)
(4) (5)
d) Sales person in store (1) (2) (3) (4)
(5)
e) Parking facility (1) (2) (3)
(4) (5)
In the given management topic which statistical technique we are using called ch
i-square test. This is also known as test of goodness and test of independence.
The events taken into consideration can be mutually – exclusives and should have p
robability in it. It is used for actual values rather than percentages. It is us
ed to find if difference between the observed distribution of data among categor
ies and expected distribution is significant. From the observed frequency, by su
btracting it from the expected frequency and finally squaring them followed by d
ividing.
Where:-
χ2 = the test statistic that asymptotically approaches a χ2 distribution.
Oi = an observed frequency;
Ei = an expected (theoretical) frequency, asserted by the null hypothesis;
n = the number of possible outcomes of each event
As in real life situations when a manager has to take some important decisions,
they need to know the differences between the observed and the expected frequenc
y. This really affects and shows a picture of the present situation. This is ver
y important as it has a great bearing with respect to the company.
With respect to Reliance fresh outlet, they can perfectly calculate their profit
s from various categories of the customers of various income capabilities and th
eir satisfaction level as well.
Pearson s chi-square is used to assess two types of comparison: tests of goodnes
s of fit and tests of independence.
The goodness of fit test is a part of chi-square test
It is basically a kind of tool to verify whether there is any significant diffe
rence between the observed frequencies and the expected frequencies.
In such cases the chi-square is used to test whether the fit between observed di
stribution and the expected distribution is good.
The procedure for this test is as follows:-
A) Formulate the null and alternative hypothesis and compute the observed f
requency.
B) Calculating the expected value using the formula
ROW TOTAL X COLUMN TOTAL
OVERALL TOTAL
C) Calculate the χ2 using the formula
D) Decide upon the level of significance & degrees of freedom.
E) Determine the critical value & compare with calculated χ2 value that’s chi-s
quare statistics.
F) Now comes the acceptance or rejection of the null hypothesis. That’s to de
termine that it falls in the accepted region or not and accordingly accepting or
rejecting it.
G) Deduce the business-research conclusion.
Income level
Attributes
Below Rs.10000
Rs.10000-15000
Rs.15000-20000
Above Rs.20000
Total
Lower prices
3 10 23 15 51
Wide choice of products/product availability 6 10 11 19
46
Nice store interior/easy visibility of products 1 4 12 14
31
Membership scheme
2 3 7 10 22
Total
12 27 53 58 150
= 16.8485
υ = (r-1) (c-1)
= (4-1) (4-1)
= (3) X (3) = 9
[υ = degree of freedom, r = no. of rows, c= no. of columns]
CHAPTER 6
SWOT
Analysis
Strength
• Easily available products
• Reasonable price
• Prompt service
• Hygienic products
• Local farmers are highly benefited.
• Provides clean and convenient environment.
• Prime location
• Large floor space allowing for better visual merchandising
• Large area also allows to stock a large variety of products under one roof
• Experienced and competent management
• Highly trained and motivated sales force
• Brand equity
• Large scale operations in various cities throughout the country allows them to r
eap the benefits of “economies of scale”
• Over next two years India will see several Indian retail businesses attaining a
critical mass as growth in the industry picks up momentum driven by two key fact
ors:
Availability of quality real estate and mall management
practices
Consumer preference for shopping in new environments
Weakness
• More skilled staff required
• Emphasis on farmer training
• Not successful in rural areas although goods can be purchased and sold at low co
st.
• Large scale of operations sometimes acts as a barrier to personalized customer r
elations
• Large scale operations lead to reduced flexibility by increasing the amount of o
verheads and a huge commitment in terms of fixed costs
• A large organization structure leads to delayed decisions. This can prove fatal
for a business in the dynamic fashion industry.
Opportunities
• Potential market.
• Huge profit available.
• Apart from the metros, cities like Ahmedabad, Pune, Lucknow, Indore and Coimbato
re have shown substantial retail presence. Most sport modern retail formats like
supermarkets, department stores and specialty chains. These markets are expecte
d to show exponential growth in the next few years. Thus Reliance Retail has th
e opportunity to explore new markets.
• Lack of differentiation among the malls that are coming up. One option may be to
look at specialization.
• According to the Consumer Outlook study, consumers are generally satisfied with
the service that organized retailers extend to them. More importantly, they are
increasingly regarding these organized retailers as providing value-for-money’.
These findings indicate that large retailers will capture most of the higher con
sumer spending
• Increasing penetration of the internet into Indian homes has provided to break t
he geographical barriers and to increase their customer base. The entry into onl
ine retailing, would, in fact, expand the product categories available to the co
nsumer.
• The pool of highly skilled and specialized human resources to facilitate greate
r productivity and improved quality
Threats
• Competition from the other companies
• Threatening from farmers
• Threatening from local sellers
• Fear of unsuitable environment for certain products
• The time when retailers had to worry about competition only from their peers dow
n the street has come to an end. Reliance Retail is now facing increased compet
ition in the form of international retail chains that are making a beeline towar
ds the highly potential Indian markets. Moreover many big Indian business houses
are also vying a space in the Indian retail scene.
• Lack of industry status
• Inadequate transport infrastructure
• Absence of adequate storage infrastructure
• Constructions/Infrastructure
• Supply chain analysis
• Legal restrictions
• Land and space restrictions
• Natural calamities and disasters like earthquake and floods
• Civil war, war with another country, terrorist attack. Uncertain global business
environment impacting business sentiment and growth
• Attrition of key management personnel
Chapter 7
Conclusion
Conclusion
From the survey done about Reliance fresh outlet and buying behavior of
customers of various income level and satisfaction derived by them it is found t
hat :
Mazority of customers here is female.
Mostly private sector customer’s prefers reliance fresh
Local market till today is the first choice of customer.
The products segments which are maximum sold at reliance fresh are as follows:-
Household items
Vegetables and fruits
Stationary
Electronics
Maximum customers who prefer to shop from there are fall in age ranging from:-
25- 30 years and above And those monthly income is in range of:-
Rs.20000 monthly and above
Private label products offered by Reliance fresh are less preferred in B
ikaner because customers are still glued with manufacturer’s brand. They don’t ha
ve confidence in private label products. To gain the customer’s confidence they ha
ve to come out with brands with good quality and distribute the free samples.
As the survey done at Reliance fresh outlet it infer that mostly people
who visit the outlet are private employee customers as they get time only on Sat
urday and Sunday, so mostly they prefer these two days for shopping and as on Tu
esday there are various schemes available on various product segments so this da
y is also preferred by them.
Locality in which Reliance fresh outlets are located is residential area
of private employees. Due to lack of awareness and time people who are far from
the outlets generally prefer to shop from mom and pop stores. So they have to c
reate awareness among people that they provide products at cheaper rate from mar
ket with good shopping ambiance.
Buying behavior of customer in Bikaner:-
The consumers of Bikaner are price, quality and freshness sensitive .The
ir are less concerned with social aspect, packaging and brand names of the produ
cts, and they shop from places where they get the products at right price, right
quality and are fresh.
Retail condition in Bikaner:-
Though retail is in the embryonic stage in Bikaner as the city h
as only two retail giants i.e Vishal and Reliance fresh. But from the study it c
an be seen that the convience, fresh products and value for money. This shows th
at the retail formats are accepted in Bikaner and people go to these outlets as
they are convenient and provide them with value for their money. When they shop
they also take into consideration the store interior, easy availability of produ
cts, store staff and parking facility at the store. Reliance fresh is ranked mod
erate on all these factors and there is room of opportunities for the retail pla
yers to attract the customers. The study also showed that the people of Bikaner
don’t have an inclination towards the brand names on the contra they give importan
ce to price, quality and freshness. This is one area where reliance fresh can re
ap profits by focusing on the private label brands and providing the customers w
ith good quality of products.
Few success mantra’s by following them they can fulfill the need’s of the customers
:-
Come out with varieties in the apparel-section:-
Giving personal attention to the needs of a customer.
Pay attention towards “Relationship-marketing”.
Introduce more & more products of private label in the sections like -
A customer’s wish:-
o Let me find a parking place near the store
o Have the sales staff pretends that they care
o Get me in and out as fast as possible
o Do note make me have to wait in line to make my purchase
o Do not make me have to deal with other obnoxious shoppers
Key words which are used in the study
Convenience stores
Basically these are the stores where one can find out the daily necessities thin
gs under one roof. Reliance fresh outlets are form of convenience stores.
Customer satisfaction:-
Visual merchandising:-
Visual merchandise in simple words “promoting the sale of goods, especially by th
eir assortment pattern in the retail outlet”.
Visual merchandising is one of the final stages in trying to set out a store in
a way that customers will find attractive and appealing and it should follow and
reflect the principles that underpin the store’s image. Visual merchandising is t
he way one displays goods for sale in the most attractive manner with the enp
purpose of making a sale.
Especially in today’s challenging economy, people may avoid designers/ visual merc
handisers because they fear unmanageable costs. But in reality, visual merchandi
sers can help economize by avoiding costly mistakes.
Visual merchandising is the art of implementing effective design ideas to increa
se store traffic and sales volume.
A close sister to visual merchandising is "retail experience". "Customer experie
nce" looks at the same issues around product presentation but from the customer
perspective, rather than the retailer perspective.
Many elements can be used in creating display including color, lighting,
space, product information, sensory inputs such smell, touch, sound and as well
as their display.
Relationship marketing
Today relationship marketing is very popular and very much fami
liarized among marketers and increasing craze about this. Because in today’s marke
t scenario instead of making new customer its quite cheaper to retain the custom
ers who’s already connected with the company. As making new customers is quite exp
ensive, Keeping the data base of the customers and following them, by informing
them about various schemes and events organized by the organization so that they
can maintain the bonding and mutual relationship with the customers and they fe
el privileged.
Customer centric retailing
Everything is designed keep in mind to the customer. Basically in retail
it is important to know that what customers want then to make it possible to ta
ilor everything according to the customer to please them. Providing goods they w
ant in retail outlets which are convenient to use and placed.
CHAPTER 8
Recommendation and Suggestions
Appendix
Questionnaire
Date : _____________________________________________________
Name : _____________________________________________________
Address: _____________________________________________________
Contact no_________________________ Gender : Male ( ) Female ( )
1. Are you?
A. Single C. Other
B. Married
( )
2. In which age group do you come?
A. Below 25 D. 35 - 40
B. 25 – 30 E. 40 and above
C. 30 - 35
( )
3. Qualification
A. Undergraduate C. Post Graduate
B. Graduate D. Ph.d.
( )
4. Which type of occupation you/ your family engaged in?
A. Private C. Own Business
B. Government D. Nothing
( )
5. Your monthly income?
A. Below 10000 C. 15000 - 20000
B.10000 – 15000 D. Above 20000 ( )
6. Is there any source of dual income in your family?
A. Yes B. No ( )
7. How much time you usually spend on shopping?
A. Less than 20 minutes C. 45 – 60 minutes
B. 20 – 45 minutes D. 60 and above ( )
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