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UNIVERSITY OF MUMBAI

RAYAT SHIKSHAN SANSTHAS

KARMAVEER BHAURAO PATIL COLLEGE

VASHI, NAVI MUMBAI.

COLLEGE CODE 33

PROJECT REPORT

ON

CONSUMER BUYING BEHAVOUR OF

RELIANCE FRESH

SUBMITTED BY

AKASH KAMALAKAR KHANDARE

PROJECT GUIDE

PROF.ARCHANA SALUNKHE

IN PARTIAL FULFILLMENT FOR THE COURSE OF

BACHELOR OF MANAGEMENT STUDIES (B.M.S)

T.Y.B.M.S (SEMESTER - V)

2011 2012

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RAYAT SHIKSHAN SANSTHAS

KARMAVEER BHAURAO PATIL COLLEGE

VASHI, NAVI MUMBAI 400 703

CERTIFICATE

This is to certify that Mr. AKASH KAMALAKAR KHANDARE

student of B.M.S. Semester V has completed his project on

CONSUMER BUYING BEHAVOUR OF RELIANCE FRESH.

And has submitted a satisfactory report under the guidance of

PROF. ARCHANA SALUNKHE in a partial fulfillment of B.M.S.

course of University of Mumbai in the academic year 2011-2012

. ..Project guide Coordinator Principal

..University Examiner

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Executive Summary

Retailing is the interface between the producer and theindividual consumer buying for personal consumption.This excludes direct interface between the manufacturerand institutional buyers such as the government and otherbulk customers. A retailer is one who stocks theproducers goods and is involved in the act of selling it tothe individual consumer, at a margin of profit. As such,retailing is the last link that connects the individualconsumer with the manufacturing and distribution chain.The retail industry in India is of late often being hailed asone of the sunrise sectors in the economy. AT Kearney,the well-known international management consultancy,recently identified India as the first most attractive retaildestination globally from among thirty emergent markets.

It has made India the cause of a good deal of excitementand the cynosure of many foreign and domestic eyes. Theentry of foreign and Indian retail giants like Wal-Mart,Metro, Reliance, Birla, Tata etc. made Indian market morecompetitive which is at cut throat level. So how retailerscan reach to their end customers, to win the mind shareand increase the basket size of each shopping trip.India retail industry is the largest industry in India, with an

employment of around 8% and contributing to over 10% ofthe country's GDP. Retail industry in India is expected torise 25% yearly being driven by strong income growth,changing lifestyles, and favourable demographicpatterns.It is expected that by 2016 modern retail industry in Indiawill be worth US$ 175- 200 billion. India retail industry is

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one of the fastest growing industries with revenueexpected in 2007 to amount US$ 320 billion and isincreasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growthin consumerism in urban areas, rising incomes, and asteep rise in rural consumption. It has further beenpredicted that the retailing industry in India will amount toUS$ 21.5 billion by 2010 from the current size of US$ 7.5billion.

The growth of scope in the Indian retail market is mainlydue to the change in the consumers behaviour. For the

new generation have preference towards luxurycommodities which have been due to the strong increasein income, changing lifestyle, and demographic patternswhich are favourable.

Reliance Retail is the retail chain division of relianceindustries of India which is headed by Mukesh Ambani.Reliance has entered into this segment by opening new

retail stores into almost every metropolitan and regionalarea of India. Reliance plans to invest rs 25000 crores inthe next 4 years in their retail division and plans to beginretail stores in 784 cities across the country. The reliancefresh supermarket chain is rils rs 25,000 crore ventureand it plans to add more stores across different g, andeventually have a pan-India footprint by year 2011to thecompany. .

AS The twentieth century has come to and we havemoved in to third millennium , we can see manydevelopment and changes taking place around us with allthe industries and firms within each industry trying to keep

pace with all the industries and firm within each industriestrying to keep pace with the changes and diverse need of

people . Marketer have regarded customer as the

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king and evolved all activities to satisfy him or her, thisconcept gaining more momentum and importance today.

More than a century ago, the father of our nation,Mahatma Gandhi, had made visionary and deepmeaningful statement at Johannesburg, South Africa in1980. A customer is the most important visitor of our

premises. He is not dependent on us .We aredependent on him He is not interruption on our work.He is the purpose of it and not an outsider on our

premises. He is a part of it. We are not doing himfavour by serving him.

Today the entire firm engaged in a process of creating alife time value and relationship with customers. Thisreport start with discussion on the diversity of consumerbehaviour and the need for studying consumer buyingbehaviour and consumer as a related field of marketing.this can be largely be attributed to the prevailing marketsituation .Today the company image is built and made

known by its customers. Thus success of the firmdetermined how effective it has been in meeting thediverse consumer need and wants by treating eachcustomer as unique and offering products and services tosuit has or her need.

Consumer buying behaviour will be a primary force indetermining how this transition will evolve. Getting closerto the customer in todays highly competitive landscape isessential for the entire industry and is no longer just aretail issue. It requires all organisations across the supplychain to work as a single enterprise, sensing andresponding rapidly to consumer demand in a co-ordinatedmanner. Detailed analysis of the changing patterns ofconsumer demand, shopping trends.

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This research report is based on to know the1- Major factors influencing consumer buying behaviour.

2- Buying decision process.

3- The stage in buying decision process4- Awareness of consumer towards organised retail

sector

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Declaration

I hereby declare that this summer project report titled

Buying Behaviour/consumer satisfaction of Reliance

Fresh customer in NAVI MUMBAI. is the result of my

own effort in the training which I did as a part of the

curriculum, for the fulfilments of BACHELOR IN

MANAGEMENT STUDIES (BMS). It has not been

duplicated from any other earlier works and all information

provided in this report is genuine.

This report is submitted for the fulfilments of B.M.S. It has

not been submitted to any other university or for any other

degree.

SIGN___________

Date:___________NAME_______________

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(NAME & SIGN OFSTUDENTS)

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ACKNOWLEDGEMENTACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude to

the following personalities without whose help and

guidance the successful completion of my project work

would have been remained a dream.

I extend my heartfelt thanks to College our for the

constant and valuable guidance by him through out my

course.

I would like to take the pleasure of this opportunity to

express my heartful gratitude to my guide Professor (whotook personal interest and gave valuable suggestions

through out my field work and completion of the project.

I thank all my faculty members of BMS department for

their valuable suggestions throughout my course.

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The importance of the moral support and good wishes of

my parents and friends is external and I am very much

indebted to them.

Finally I thank all my friends who directly or indirectly

helped me a lot during my project.

Contents

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14

S.N. INDEX PAGENO

Certificate 4Executive Summary 5Declaration 9Acknowledgement 11

CHAPTER- 1 INTRODUCTION&BACKGROUND

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1.1 Company Overview 151.2 Popular Profile 231.3 Supply Chain Model 301.4 SWOT Analysis 351.5 Major Player 40

CHAPTER-2 RESEARCH OBJECTIVE

2.1 Objective of Research 46CHAPTER-3 RESEARCH FINDING 48CHAPTER-4 RESEARCH LIMITATION 50CHAPTER-5 RESEARCH METHODOLOGY 51

5.1 Source of data & Collection tool 525.2 Sampling 535.3 Sample size 54

CHAPTER-6 ANALYSIS &INTERPRETATION 55

6.1 Meaning of consumer BuyingBehaviour

56

6.2 Interpretation of collect data 62CHAPTER-7 SUGESSION 79

APPENDIX 81REFERENCE 83


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CHAPTER 1

INTRODUCTION &BACKGROUND

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RELIANCE

"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, 1932 - July 6, 2002

RELIANCE GROUP

The Reliance Group, founded by Dhirubhai H. Ambani

(1932-2002), is India's largest private sector enterprise,

with businesses in the energy and materials value chain.

Group's annual revenues are in excess of USD 27 billion.

The flagship company, Reliance Industries Limited, is a

Fortune Global 500 company and is the largest private

sector company in India.

Backward vertical integration has been the cornerstone of

the evolution and growth of Reliance. Starting with textiles

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in the late seventies, Reliance pursued a strategy of

backward vertical integration - in polyester, fibre

intermediates, plastics, petrochemicals, petroleum refining

and oil and gas exploration and production - to be fully

integrated along the materials and energy value chain.

The Group's activities span exploration and production of

oil and gas, petroleum refining and marketing,

petrochemicals (polyester, fibre intermediates, plastics

and chemicals), textiles and retail.

Reliance enjoys global leadership in its businesses; The

Group exports products in excess of USD 15 billion to

more than 100 countries in the world. There are more

than 25,000 employees on the rolls of Group Companies.

Major Group Companies are Reliance Industries Limited

(including main subsidiaries Reliance Petroleum Limited

and Reliance Retail limited) and Reliance Industrial

Infrastructure Limited.

Reliance Industries Limited is India's largestprivate sectorconglomerate (and second largest overall) with an annual

turnover ofUS$35.9 billion and profit ofUS$4.85 billion

for the fiscal year ending in March 2008 making it one of

India's private sector Fortune Global 500 companies,

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being ranked at 206th position (2008). [1] It was founded

by the Indian industrialist Dhirubhai Ambani in 1966.

Ambani has been a pioneer in introducing financial

instruments like fully convertible debentures to the Indian

stock markets. Ambani was one of the first entrepreneurs

to draw retail investors to the stock markets. Critics allege

that the rise of Reliance Industries to the top slot in terms

of market capitalization is largely due to Dhirubhai's ability

to manipulate the levers of a controlled economy to his

advantage.

Though the company's oil-related operation forms the

core of its business, it has diversified its operations in

recent years. After severe differences between the

founder's two sons, Mukesh AmbaniandAnil Ambani, the

group was divided between them in 2006. In September

2008, Reliance Industries was the only Indian firm

featured in the Forbes's list of "world's 100 most

respected companies"

Subsidiaries of RIL

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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

Reliance Retail Limited

Reliance is gearing up to revolutionize the retailing

industry in India. Towards this end, Reliance is

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http://en.wikipedia.org/wiki/Reliance_Petroleumhttp://en.wikipedia.org/w/index.php?title=Ranger_Farms_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Retail_Concepts_and_Services_(India)_Private_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Retail_Concepts_and_Services_(India)_Private_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Retail&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Retail&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Global_Management_Services_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Global_Management_Services_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Biopharmaceuticals&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Ghatraj_Services&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Engineering_Associates_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Engineering_Associates_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Reliance_Petroleumhttp://en.wikipedia.org/w/index.php?title=Ranger_Farms_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Retail_Concepts_and_Services_(India)_Private_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Retail_Concepts_and_Services_(India)_Private_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Retail&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Global_Management_Services_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Global_Management_Services_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Biopharmaceuticals&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Ghatraj_Services&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Engineering_Associates_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Engineering_Associates_(P)_Limited&action=edit&redlink=1


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aggressively working on introducing a pan-India network

of retail outlets in multiple formats.

A world class shopping environment, state of arttechnology, a seamless supply chain infrastructure, a host

of unique value-added services and above all, unmatched

customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in

size and spread and make India proud. Ensuring better

returns to Indian farmers and manufacturers and greater

value for the Indian consumer, both in quality and

quantity, will be an integral feature of this project. By

creating value at all levels, we will actively endeavour to

contribute to India's growth.

The project will boast of a seamless supply chain

infrastructure, unprecedented even by world standards.

Through multiple formats and a wide range of categories,

Reliance is aiming to touch almost every Indian customer

and supplier.

With a vision to generate inclusive growth and prosperityfor farmers, vendor partners, small shopkeepers and

consumers, Reliance Retail Limited (RRL), a subsidiary of

RIL, was set up to lead Reliance Groups foray into

organized retail.

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With a 27% share of world GDP, retail is a significant

contributor to overall economic activity across the world.

Of this, organized retailing contributes between 20% to

55% in various developing markets. The Indian retail

industry is pegged at $ 300 billion and growing at over

13% per year. Of this, presently, organized retailing is

about 5%. This is expected to grow to 10% by 2011. RRL

has embarked upon an implementation plan to build

state-of-the-art retail infrastructure in India, which includes

a multi-format store strategy of opening neighbourhood

convenience stores, hypermarkets, and specialty and

wholesale stores across India.

RRL launched its first store in November 2006 through its

convenience store format Reliance Fresh. Since then

RRL has rapidly grown to operate 590 stores across 13

states at the end of FY 2007-08. RRL launched its first

Reliance Digital store in April 2007 and its first and

Indias largest hypermarket Reliance Mart in Ahmadabad

in August 2007. This year, RRL has also launched its first

few specialty stores for apparel (Reliance Trends),

footwear (Reliance Footprints), jewellery (Reliance

Jewels), books, music and other lifestyle products

(Reliance Timeout), auto accessories and service format

(Reliance AutoZone) and also an initiative in the health

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and wellness business through Reliance Wellness. In

each of these store formats, RRL is offering a unique set

of products and services at a value price point that has

not been available so far to the Indian consumer. Overall,

RRL is well positioned to rapidly expand its existing

network of 590 stores which operate in 57 cities.

During the year, RRL also focused on building strong

relationships in the agri-business value chain and has

commenced marketing fruits, vegetables and staples that

the company sources directly to wholesalers and

institutional customers. RRL provides its customers with

high quality produce that has better shelf life and more

consistent quality than was available earlier. RRL has

made significant progress in establishing state-of-the-art

staples processing centres and expects to make them

operational by May 2008.

Through the year, RRL also expanded its supply chain

infrastructure.The Company is fully geared to meet the

requirements of its rapidly growing store network in an

efficient manner.

Recognizing that strategic alliances are going to be a key

driver to its retail business, in FY 2007-08, RRL

established key joint ventures with international partners

in apparel, optical and office products businesses.

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Further, RRL will continue to seek synergistic

opportunities with other international players as well. This

year, RRL will continue its focus on rapid expansion of the

existing and other new formats across India.

Popular Profiles at Reliance Retail

Management team

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Name Designation

Mr. Mukesh Ambani Chairman&Managing

Director

Nikhil R Meshwani Executive DirectorHital R Meshwani Executive DirectorMadhumita Mohanti Deputy General ManagerAkashay Lokhande Area Manager-Operation

&Sales and NSODevandra Chawla Vice-President-Business

Head, Merchandise Head

Zubin Nowrojee,

Mangement

State Head Category

Formats of Reliance RETAIL

RelianceFresh,Reliance Mart,

Reliance Digital,

Reliance Trendz,

Reliance Footprint,

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Reliance Wellness,

Reliance Jewels,

Reliance Timeout and Reliance Super,

RELIANCE fRESH

APKA FRESH APKE PADAOS ME

Reliance fresh is the retail chain division of relianceindustries of India which is headed by Mukesh Ambani.

Reliance has entered into this segment by opening new

retail stores into almost every metropolitan and regional

area of India. Reliance plans to invest rs 25000 crores in

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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 rils rs 25,000 crore venture

and it plans to add more stores across different g, and

eventually have a pan-India footprint by year 2011. The

super marts will sell fresh fruits and vegetables, staples,

groceries, fresh juice bars and dairy products and also will

sport a separate enclosure and supply-chain for non-

vegetarian products. Besides, the stores would provide

direct employment to 5 lakh young Indians and indirect

job opportunities to a million people, according to the

company. The company also has plans to train students

and housewives in customer care and quality services for

part-time jobs

BACK GROUND

We can see many examples of businesses where, first we

grow and then think of expanding but

Reliance is quite different. Reliance has developed such

huge amount of resources and capital over the years that

whenever it steps into any segment it is not required to

wait for growing signal, thats why it always thinks of

expanding without any boundaries. Reliance retail is next

Step by RIL which will be a pan India project.

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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 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 RILs Rs 25,000 crore venture

and it plans to add more stores across different g, andeventually have a pan-India footprint by year 2011.

The super marts will sell fresh fruits and vegetables,

staples, groceries, fresh juice bars and dairy products and

also will sport a separate enclosure and supply-chain for

non-vegetarian products. Besides, the stores would

provide direct employment to 5 lakh young Indians and

indirect job opportunities to a million people, according to

the company. The company also has plans to train

students and housewives in customer care and quality

services for part-time jobs.

The company is planning on opening new stores withstore-size varying from 1,500 sq ft to 3,000 sq ft, which

will stock fresh fruits and vegetables, staples, FMCG

products and dairy products. Each store is said to be

within a radius of 1-2 km of each other, in relation to the

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concept of a neighbor store. However, this is only the

entry roll-out that the company has planned. Bangalore is

said to have 40 stores in all by the end of the year.

In a dramatic change due circumstances prevailing in UP,

West Bengal and Orissa, It was mentioned recently in

News Dailies that, Reliance Retail is moving out stocking.

Reliance Retail has decided to minimize its exposure in

the fruit and vegetable business and position Reliance

Fresh as a pure play super market focusing on categorieslike 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 thecompany said the stores 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

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farmers and sell directly to the consumer removing

middlemen out of the way.

FARM TO FORK

The Reliance retail company sources say it is setting

aside Rs 50,000 crore to build its farm-to-fork

linkage. Reliance has drawn up plans for a presence

in 784 towns and 6,000 mandi (wholesale market)

towns with 1,600 rural business hubs to service

these. It has already rolled out 177 Reliance Fresh

stores across major towns in 11 states. According to

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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 FORKSUPPLY CHAIN MODELS of Reliance Retail

Reliance started its retail operations of RelianceFresh stores with following supply chain model.Procuring directly from the farmers and operatingwith moderate margin but mass selling was key to

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Reliance fresh operation for first few months. Thefollowing figure depicts the first Reliance fresh model

RELIANCE FRESH

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FARMERS

CATEGORY 1

FARMERS

CATEGORY 2

FARMERS

CATEGORY


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RELIANCE FRESH

OUTLETS

RELIANCE FRESH

OUTLETS

RELIANCE FRESH

OUTLETS

PROCESSING

UNIT/POINT

COLLECTION

POINT/UNIT

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RELIANCE OWNLOGISTICS

Farme

rsOwnTransportation

Relian

ceownLogistics

Relian

ceownLogistics

Farme

rsOwnTransportation

RFRF


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WHOLESALE TRADING (WST) :

Reliance formalized its second supply chain model toshift itself from grocery retailer to grocery supplier by

focusing and establishing itself in Mandis.

STEPS IN WTS MODEL:

1) Reliance has owned farms on contract basis for

production of specific crop which is decided after

extensive research depending on

SOIL CONDITIONS, CLIMATE CONDITIONS,

RETURN OVER COSTS INCURRED.

So as to yield best possible results.

2) Different vegetables and fruits from such farms are

collected through reliance own

Logistics and brought to collection Processing

centres where quality check and other required

processing is done.

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In processing centres workers wearing balaclavas,

woollen trousers and bulky jackets work inside a room

kept at a constant 3oC, peeling and chopping

vegetables, spinning them dry and then heaping them

in small plastic packets before placing them in plastic

transport crates. At the other end of the 5,000-sq-m

warehouse, men unload crates of fruits from a truck

pulled up to a spotless loading dock. A quality-control

expert samples every tenth crate; if the fruits are gooda team will ready them for delivery within hours to

Reliance fresh stores around different places like U.P

and as far away as Hyderabad and even Mumbai

(formerly Bombay). If they are not, workers will inspect

the entire shipment and discard anything below

standard.

3) Merchandise from these collection processing

centers are collected and loaded for Wholesale

mandis. As this merchandise is to be made available

by 4 A.M in morning thus deliveries in trucks are sentat time depending upon:

TRANSIT TIME. Time required reaching destination

i.e. mandis.

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MARGIN TIME. Time period between a truck reaching

mandi and then Unloads. Can be 2 to 3 hours.

LOADING AND UNLOADING TIME.

4) From mandis where the trucks have been unloaded,

roadside vendors and pull carters Buy fruits and

vegetables to supply in households.

5) In case still some vegetables and fruits are not sold

reliance logistics own

Transportation sends them to reliance fresh stores.

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SWOT ANALYSIS

The Indian retail market accounted for $ 200 billions.

Food accounts for over two-thirds of the $200-billion

Indian retail market. Yet, it has seen less than 1 per cent

penetration by modern retail so far.

Reliance industries which always looking for new

business opportunities just started a new era with its

introduction of new concept stores named Reliance

Fresh with opening convince store in high streets of

Banjara hills of Hyderabad. Reliance Fresh is very

different from what modern retail has offered in India so

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far and with this reliance is planning to establish strong

retail network in India in food and farm sector. They have

started with new eleven stores in the last week and they

are thinking to add 100 more stores to their feather

by the end of this year.

Lets do a SWOT analysis on the Reliance Fresh.

Strengths:

Reliance is the first into enter into this unorganized

sector of vegetables and fruits. According to them its

intentions to have 100% farm fresh foods in their new

retail stores. It is also adding shortly a juice bar, and

even a large counter for puja flowers. In fact, over 60

per cent of the floor space has been dedicated to

fresh fruits and vegetables, the rest to other food

products like staples, spices, bakery, etc. But

reliance has decided not to add any bar soap or

toothpaste and detergent in its shelves. So by using

this strategy they are positioning themselves

different from other players of the industries like

Food world, Big Bazaar and Nilgiris. But over come

the short comings of these specialized stores they

are also introducing new Reliance full-fledged

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supermarket called Shakhari Bhandar which offers

each and everything from the staple to soap. Most of

the staples are under its own private label brand

Reliance Select. There is a 500g channa dal pack

priced at Rs 28, a 500g urad dal pack for Rs 39, all under

Reliances own brand. Excepting a few packets of

Nestles Maggi, or MTRs masalas or Pepsis Lays chips,

there is very little shelf space given to the big brand

owners in the country. Reason: private labels offer farbetter profit margin to the retailer than branded products

of FMCG companies. Most of these outlets will need only

2,000-5,000 sq. ft. A supermarket may need as much as

8,000-10,000 sq. ft.

Weakness:

This is definitely an interesting business venture but it

may miss out on the opportunity to capture a greater

share of the customers wallet. For customers, too, this

could be irksome, as they would have to visit another

store to pick up essentials. Reliance could easily fix this

problem by adding a few small counters for some basic

non-food products. According to their official this format

is not final one they are accepting the new changes

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which are required to attract the large number of

customers.

Opportunities

Reliance wants to build a high-profitability business and

food is, perhaps, the best venture to start. That is

because the Indian food supply chain is grossly

inefficient. There are several intermediaries, each of

whom adds his own profit margin to the cost. Besides,

there is huge wastage in transit. This offers potential for

savings and profits. To reduce the cost and increase the

profit it has been sourcing out its requirements from the

farmers. For example, the leafy vegetables, brinjals,

tomatoes and green chilies in the Banjara Hills outlet

were sourced directly from farmers in Vantimamdi,

Chevella and nearby mandals in Ranga Reddy district of

Andhra Pradesh. The supply chain already has been

backed by few hundred farmers the number is estimated

to touch million in next five years. The main aim of the

reliance is to eliminate the intermediaries in the sector

and reduce the cost. Smaller stores have two

advantages. They bring down the cost of real estate (and

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increase profits). It is easier to find space for small

convenience stores in a quiet neighbourhood than for

supermarkets in high streets.

Threats:

This model is engineered to clock a faster turnover of

inventory Reliance expects consumers to visit the

store at least twice a week for their top-up groceries.

Each store will have an investment of Rs 50 lakh to Rs

60 lakh. Unlike global retailers who operate on thin

margins, Reliance Retail is looking at a fairly high-margin

business model. Deliberately stopped short of being a

full-fledged supermarket rather, it has limited itself to a

food and grocery convenience store. They also have a

threat from the existing supermarkets which provides all

the services to its customers. For Example Food world

and Nilgiris also provides food and beverages with other

personal care products. These convince are not existed

in the present Reliance retail stores.

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Major players in retail sector

Shoppers Stop:

Shoppers Stop is the pioneer of pan-nation one-stop

retail outlets. Starting in 1991 with a single store in

Mumbai, it has now developed more than 20 stores (total

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retail space crossed the 1 m mark in the second quarter of

FY07). The company has added 1,568,479 sq ft of area

during the year taking its total store area to 1,170,548 as

on March 2007. The company has a wholly owned

subsidiary Crossword a specialty retail chain with over

32 stores spread across the country. This store

specialises in books, gift articles and stationery. During

the quarter, Crossword opened its first store and 2 Stop &

Go stores at the Mumbai domestic airport. Further, itforayed into airport retailing through a joint venture with

The Nuance Group AG of Switzerland. The company has

also made an entry into the entertainment sector by

acquiring 45% stake in Time zone Entertainment Pvt. Ltd.

The recent moves by the company will widen the offering

and de-risk its dependence on the flagship Shoppers

Stop stores.

Pantaloon:

Incorporated in 1987, Pantaloon Retail is among the

pioneers in chain retailing. It is the largest retailer in the

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country operating 350 stores across segments in over 40

cities across the country and constituting 5 m square feet

of retail space. Starting out with dedicated apparel stores

(Pantaloon), the company has stores across the cross-

section of the society. The companys business is broadly

divided into 2 segments, Lifestyle and Value retailing. On

the apparels front it has Pantaloon (31 departmental

stores), Central Malls (4 seamless malls as well as its

other concepts). These stores can be classified underLifestyle Retailing. On the general merchandise front it

has Big Bazaar (51hypermarkets), Food Bazaar (77

supermarkets) and Fashion Station (5 fashion stores) and

other delivery formats. These fall under Value Retailing.

M ore

The more. Chain of supermarkets, are bright and clean

stores, at convenient locations with layouts that allow

ease of navigation. The product display is well organised

and facilitates ease of choice. The stores have been

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designed by Fitch, the leading international retail design

firm.

The stores promise a range of benefits to consumers andare a solution to the many 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 the shopping

needs of the Indian housewife who wants a modern and

convenient option in her neighbourhood, with an attractive

and consistent range of products? more. assures

consumers the security of knowing that they are paying

the best price in the market for good quality products.

RPG Group:

RPG Enterprises is one of Indias largest business

conglomerates, with a turnover of US$ 2.55 bn and assets

worth US$ 1.8 billion. Since its inception in1979, RPG

Enterprises has been one of the fastest growing groups in

India with more than 20 companies operating successfully

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in 7 business sectors: Retail, IT & Communications,

Entertainment, Power, Transmission, Tyres and Life

Sciences. In 2001, it established Giant Hypermarket

Provogue (India) Ltd :

Provogue (India) Ltd., (PIL) formerly Acme Clothing Pvt.

Ltd was incorporated in November 1997, converted in to a

public limited company in March 2005. It deals with

fabrics, dyestuffs, chemicals and textile machinery. PIL

operates in two core industry segments. The first beingdesigning, manufacturing and selling branded ready-made

garments and other accessories under the brand

'Provogue'. The second business is export of finished

fabrics, dyestuffs, chemicals and textile machinery to

several markets in African continent.

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CHAPTER 2

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Re se arch O bjective

To study consumer buying behaviour reliance fresh customer of

Delhi

To know about the consumer awareness towards Reliance fresh.

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CHAPTER 3

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Finding

1-Majority of customers here are female.

2- Majority of customers are young.

3- Customers like one stops shopping.

4-Local market till today is the first choice of customer.

5-Advertisement is the biggest way to attracting the customer.

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6-Promotion scheme not so easy to under stand for customer.

7-Most of customer is not fully satisfied with store.

8-Shortages of skilled workers.

CHAPTER 4

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Limitations

The project has some limitations because it is totally based on efforts

of individuals. Peoples may be careless and may not give correct answer to

the questions, because of so many reasons.

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It is totally based on personal efforts of individuals.

Some of the consumers are unable to understand the

questionnaire.

Language is one of the problem, some of the consumers are

unable to understand English.

Some consumers are not interested in filling questionnaire.

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CHAPTER 5

Re se arch M ethodology

Research Problem

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To make a comprehensive study of Reliance Fresh

&know the Buying behaviour & of Reliance Fresh

customers.

Type of research

Descriptive type research has used to complete the

project. This research is base on fact finding enquires

and the variables are totally independent and

uncontrollable.

Data collection:

Primary Data

Primary data of research are collected from direct resources (customer of

Reliance fresh) through questionnaire.

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Secondary Data

Secondary Data which are used for research to know the history scop of

Retail industry are collected from already available resources like net and

other sources

Universe

Universe of this research is reliance fresh customer of Navi Mumbai.

Sampling technique

Random sampling is used for research project. I have given equal

weightages to my all respondent and chose them randomly without any

biased like gender, age, income culture.

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Sample size

425 respondents has selected as sample size for research.

Data rep resentation technique and tools

Columns chart & Pie chart has used for representation.

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CHAPTER 6

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Understanding The Buying Behavio u r Of

Reliance Fresh Consumers

Definition

Purchasedecision makingpattern that is a complex amalgam ofneeds and

desires, and is influenced by factors such as the consumer's (1) societal role

(parent, spouse, worker, etc.), (2) social and cultural environment and norms,

and (3) aspirations and inhibitions.

Buying Behaviour is in the Advertising, Marketing, & Sales and Purchasing

& Procurement subjects.

Buying Behaviour appears in the definitions of the following terms:

marketing research, advertisement (ad), ACORN, economic environment,

activities, interests, opinions (AIO) and consumer research.

Buying Behaviourappears in these other term: consumer buying behaviour.

Model of Buying Behaviour

58
http://www.businessdictionary.com/definition/purchase.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/pattern.htmlhttp://www.businessdictionary.com/definition/complex.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/factor.htmlhttp://www.businessdictionary.com/definition/role.htmlhttp://www.businessdictionary.com/definition/worker.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/norm.htmlhttp://www.businessdictionary.com/definition/aspiration.htmlhttp://www.businessdictionary.com/terms-by-subject.php?subject=2http://www.businessdictionary.com/terms-by-subject.php?subject=34http://www.businessdictionary.com/terms-by-subject.php?subject=34http://www.businessdictionary.com/definition/marketing-research.htmlhttp://www.businessdictionary.com/definition/advertisement-ad.htmlhttp://www.businessdictionary.com/definition/ACORN.htmlhttp://www.businessdictionary.com/definition/economic-environment.htmlhttp://www.businessdictionary.com/definition/activities-interests-opinions-AIO.htmlhttp://www.businessdictionary.com/definition/consumer-research.htmlhttp://www.businessdictionary.com/definition/consumer-buying-behavior.htmlhttp://www.businessdictionary.com/definition/purchase.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/pattern.htmlhttp://www.businessdictionary.com/definition/complex.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/factor.htmlhttp://www.businessdictionary.com/definition/role.htmlhttp://www.businessdictionary.com/definition/worker.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/norm.htmlhttp://www.businessdictionary.com/definition/aspiration.htmlhttp://www.businessdictionary.com/terms-by-subject.php?subject=2http://www.businessdictionary.com/terms-by-subject.php?subject=34http://www.businessdictionary.com/terms-by-subject.php?subject=34http://www.businessdictionary.com/definition/marketing-research.htmlhttp://www.businessdictionary.com/definition/advertisement-ad.htmlhttp://www.businessdictionary.com/definition/ACORN.htmlhttp://www.businessdictionary.com/definition/economic-environment.htmlhttp://www.businessdictionary.com/definition/activities-interests-opinions-AIO.htmlhttp://www.businessdictionary.com/definition/consumer-research.htmlhttp://www.businessdictionary.com/definition/consumer-buying-behavior.html


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Market

ing Other Buyers Buyers BuyersStimu

li Stimuli

Charact

eristics Decision DecisionProcess

Produc

t

Economi

c Cultural

Problem

recognitio

n

Product

choice

Price

Technolo

gical Social

Informatio

n Search

Brand

choice

Place Political Personal

Evaluatio

n

Dealer

choicePromot

ion Cultural

Psycholo

gical Decision

Purchase

timing

Post

purchase

Purchase

amount

Behaviou

r

When I have analysed the model of buying Behaviour finding that people of

DELHI are influenced by the marketing stimuli (4 Ps) people are focused on

price rather than product, place and promotion, other factor which influenced

people is the technological advancement.

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Cultural SocialPersonal

culture

Referenc

e Groups

Psychologica

lCycle Stage Motivation

Subculture Family Economic PerceptionCircumstance

s Learning

Life Style

Beliefs and

Attitudes BU

RRoles and

Statuses

Personality

andSocial Class Self Concept

Reference groups can have potent influence on behaviour in general, and

they may also be very influential on consumer behaviour, considering the

Consumer Goods Segment. Family and friends in specific are considered

before making a decision about purchasing a product. But their purchase

decision depends completely on self-opinion.

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Where reference groups influence is operative, the advertiser should stress

not only the people who buy the product but also those who influenced the

purchasing decision.

The process may be viewed as starting when the consumer engages in

problem recognition. Problem recognition occurs when the consumer is

activated by awareness of a sufficient difference between his / her concept of

ideal situation. The action occurs only when the consumer perceives a

sufficiently large discrepancy between the actual and ideal states.

Given that the consumer is aroused to action, the next state is internal search

for a quick and largely unconscious review of memory for stored information

and of an experience regarding the problem

. This information in the form of beliefs and attitude influence the consumers

preference towards band. If an internal search does not provide sufficient

information about

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Products, or how to evaluate them, the consumer continues with a more

involved external search for information.

Any information stimuli are then subjected to information processing

activities. This process involves allocating attention to available stimuli,

deriving meaning from these stimuli. The alternating evaluation phase

involves comparing the information gained in the search process for

alternative product and brands to the product judging criteria on standards

the consumer has developed. When such a comparison leads to favourable

evaluations, the consumer is likely to develop a purchase intention towards

that alternative that received the most favourable evaluation.

A purchase process follows strong purchasing intentions. This involves a

series of selection, including the type of retail outlet as well the specific brand

on service to use.

The consumers purchase then leads to various outcomes. One such

outcome is satisfaction as a result of direct experience in using the brands.

Satisfaction will affect the consumers belief about the brand. Other outcome

is dissatisfaction and post sale doubt.

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Many ad agencies conducted an in-depth study of consumer buying

behaviour and found that they all crave for peer acceptance and parental

non-influence. Beyond this they are an enigma.

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(1).

Gender of

the

consumer

Collected- Data

Data collected for this questionnaire to know the

gender of customer of reliance fresh.

ANALYSIS

Data collected for project from 425 responded

in which 275 are female which are 64.7% and 150 are male which are

35.29% of total respondent

Interpretation -

In total respondent we analyses that most of the

customer in this store is female and their demand always consider at the

time of taking the decision. Company should try to attract new male

customer by provide new scheme on their customer

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Male Female

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(2). Age of customer

10-20 21-50 51& above

123 230 72

Data Collected-

Data collected for this questionnaire to know theage of customer of reliance fresh.

ANALYSIS

Data collected for project from 425 responded in which 123

are the age between 10-20 which are 28.9% and230 are between age of 21-

50 which are 54.29% and 72 are between age of 51 & above which are 16.9

% of total respondent

nterpretation -

In total respondent we analyses that most of the

customer are youth. In my observation I found that most new people believe

in convenience shopping. It help the company to keep management such

type which understand the problem of customer easily and rectify the problem

effectively.

(3). How offer do you shop

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Daily ( ) week ( ) fortnightly ( ) once in month ( )

Data Collected-Data collected for this

questionnaire to know the shopping behaviour of

customer of reliance fresh.

ANALYSIS

Data collected for project from

425 responded in which 22 are like to purchase daily

which are 5.1% and 224 are like to purchase weekly

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Daily Week Fortnightly Once in

month

22 224 89 90


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which are 52.27% and 89 are likely to purchase fortnightly

which are 20.9%, 90 likely to purchase once in a month

which are 21.17% of total respondent

Interpretation -

In total respondent we analyses

that most of the customer are likely to purchase on

weekend. In my observation I found that more scheme

should be provided on weekend.

(4). What do you mostly shop for at

mentioned store?

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Vegetables ( ) Grocery ( ) cosmetic product ( ) all

product ( )

Vegetable Grocery Cosmetic

product

All product

108 96 21 200

Data Collected-

Data collected for this

questionnaire to know the products which are like to

purchase by the customer.

ANALYSIS

Data collected for project from

425 responded in which 200 customer are like to

purchase all product which are 47.00% and 108 are like to

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purchase vegetables which are 25.41% and 96 are likely

to purchase grocery 22.5 which are 22.58.%, 21 likely to

purchase cosmetic product which are 4.9% of total

respondent

Interpretation -


that most of the customer are like to purchase all product

in the store. Company should try to retain the customer.

And should increase the variety o cosmetic product&

grocery.

(5). Preference of shopping?

Quality ( ) Brand ( ) Price ( ) one stop shop ( )

Quality brand Price One stop

shop

102 134 59 130

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Data Collected-

Data collected from this questionnaire to know the

preference the shopping.

ANALYSIS

Data collected for project from 425 responded in which

134 customer are believe in reliance brand which are 31.50% and130 are

like to purchase in one stop shop which are 30.54% and 102 are like to

purchase quality product which are 24.00%, only 59 respondent consider

price which are 13.08.%.

Interpretation


that most of the customer are believe in reliance brand

like to purchase qualitative product in stop shop. Here I

observed that people want to purchase fresh and original

product and want better service

(6). Which store do you kept in preference for

purchasing

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Reliance Fresh ( ) Big apple ( ) other ( ) Local market ( )

Localmarket

Reliancefresh

Big apple Other

244 83 80 18

Data Collected-

Data collected from this questionnaire to know the preference of the

purchasing (comparison of store to other).

ANALYSIS


customer are like to purchase from local market which are 57.74% and 83 are

like to purchase from reliance fresh which are19.51% and 83 are likely to

purchase from Big apple which are 18.82.%,18 likely to purchase other

which are 4.2% of total respondent.

Interpretation

In my observation I found till today organised retailsector didnt penetrate the market. Company should try to open new

convenience store and provide more scheme and good service to customer

to penetrate the market. Initial it may be costlier, but it will give long term

benefit.

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(7). Do advertisement and promotion influence

your shopping decision?

Yes ( ) No ( )

Yes No

390 35

Data Collected-


effect of promotion scheme on purchasing.

ANALYSIS


customer are like promotion scheme which are 91.76% and 35 are those

people which say promotion scheme doesnt effect on purchasing.

Interpretation In my observation I found promotion scheme is must to

sustain customer attract customer & influence the purchasing.

(8). Are Promotion scheme easy to understand?

Yes ( ) NO ( ) some time ( )

Yes no Some time

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218 89 118

Data Collected-

Data collected from this questionnaire to know

display of promotion scheme..

ANALYSIS


customer say yes which are 51.29% and 89 are those which say no which

are 20.94 and 118 say some time.

Interpretation - Company should try making promotion scheme easy

understandable, promotion scheme should be in both in English &

(9).How likely are you to recommend Reliance Fresh

to a friend or relative? Would you say the chances

are?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

Excellent Good Fair Poor

29 198 190 8

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Data Collected-


satisfaction level of customer.

ANALYSIS

Data collected for project from 425 responded in

which 29 customer say excellent which are 6.8% and 198 say good which are

46.6%, 190 say fair which are 44.7% and 8 customer are those say poor.

Interpretation

In my observation I found that only 46.6%

customer are fully satisfied from the store company should try satisfy the

customer by providing better service and rectify their problem immediately.

(10). Which form of advertisement do you think is

most effective?

Print ( ) TV ( ) Radio ( ) telephone ( )

Print TV Radio Telephone

74 119 56 176

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Data Collected-

Data collected from this questionnaire to

know the better advertisement mode of promotion.

ANALYSIS

Data collected for project from 425

responded in which 119 customer say TV which are 28% and 74

say print which are 17.4%, 56 say Radio which are 13.17% and

176 customer are say telephone.

Interpretation -

According responded result company

can choose telephone as best for advertisement and call indusial

for attracting the customer.

(11). Did you get help from CSA when asked?

Yes ( ) No ( ) some time ( ) Never ( )

Yes NO Some time Never 192 95 124 14

Data Collected-

Data collected from this questionnaire to know about CSA performance.

ANALYSIS

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Data collected for project from 425 responded in which 192 customer say

yes which are 45.1% and 95 say no which are 22.35%, 124 say some time

which are 29.17% and 14 customer are say never which are 3.25%.

Interpretation-

According respondent customers are not fully satisfied company should

recruit new skilled employee for better performance.

CHAPTER 7

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Suggestion

1- More promotion scheme should be used to penetrate the market.

2- Skilled employees should be higher because mostly customers are

young.

3- Promotion scheme should in such way that customer can

understand easily.

4- Service of store should be providing in such way which full the

need of the customer.

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Appendix

Reliance Fresh

NAME-

GENDER-

AGE - Monthly income-

1- How often do you visit shop?

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Daily ( ) Week ( ) Fortnightly ( ) Once in month ( )

2- What do you mostly shop for at mentioned store?

Vegetables ( ) Grocery ( ) Cosmetic product ( )

3- Which store do you shop?

Reliance Fresh ( ) Big apple ( ) Other ( ) Local market ( )

4- Preference of shopping?

Quality ( ) Brand ( ) Price ( ) One stop shop ( )

5- Do advertisement and promotion influence your shopping decision?

Yes ( ) No ( )

6- Are Promotion scheme easy to understand?

Yes ( ) NO ( ) Some time ( )

7- How likely are you to recommend Reliance Fresh to a friend or

relative? Would you say the chances are?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

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8- Are the Price of Reliance fresh is lower than the other competitor?

Yes ( ) No ( ) Equal ( ) No idea ( )

9- Which form of advertisement do you think is most effective?

Print ( ) TV ( ) Radio ( )

10- Did you get help from CSA when asked?

Yes ( ) No ( ) Some time ( ) Never ( )

References

Referred books-

Marketing Research Paneerselvam

Research Methodology C.R Kothari

Principles of Marketing Philip Kotler

Referred site-

www.ril.com

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www.google.com

www.wickipedia.com
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