“CATCHMENT AREA ANALYSIS AND

STRATEGIES TO INCREASE
FOOTFALLS IN RELIANCE FRESH
STORES “.

IBS Students(Bhubaneswar)
6/4/2009
TABLE OF CONTENTS
 Acknowledgement

 Declaration

 Executive Summary

 Abstract

 Introduction

 Objective

 Methodology

 Introduction to RRL

 About founder of “Reliance Groups”

 Reliance Retail Limited [An Overview]

 Retail industries in India

 Emerging trends in consumer income and consumption pattern

 Study of near competitors

 Strategies to increase footfall

 Complete analysis on Reliance Fresh Stores in Bhubaneshwar

 Findings

 Recommendations

 Conclusion

 Reference

2
 ACKNOWLEDGEMENT

We are thankful to Dr. PRADEEPTA KUMAR SAMANTA,

FACULTY GUIDE, ICFAI BUSINESS SCHOOL-
Bhubaneswar, for his timely assistance and support throughout
the report work.

We are thankful to Mr. LALIT ROUTRAY, ASSISTANT

MANAGER- HR, RELIANCE RETAIL LIMITED for his
valuable guidance in ongoing the project successfully and also for
providing the necessary facilities.

We are thankful to all employees of RELIANCE RETAIL

LIMITED for providing necessary information related to our
study.

It was indeed a learning experience for me.

3
Declaration

We do here by declare that this project is submitted as a part of

our summer internship program for the MBA program from
ICFAI Business School, Bhubaneswar.
The project has been done under the able guidance of Mr.LALIT
ROUTRAY (Asst.HR MANAGER, Reliance retail
limited,ORISSA) and Dr. PRADEEPTA SAMANTA, faculty
member of ICFAI Business School, Bhubaneswar.
This project has not been submitted elsewhere for any award or
any degree.

4
EXECUTIVE SUMMARY
A retailer is a person who specializes in selling certain types of goods and services to
consumers for their personal use. In india retail industry is in its nascent stage with new
entrance into the mark, the industry is going to rise and the competition is going to
increase.

India has already proven its IT assets mettle as a superpower in the arena of
information technology. The retail industry offers to bloom to the same level if conducive
environment and support is provided to it.

In this report we have tried to analyse catchment area of reliance fresh stores in
Bhubaneswar . catchment area is the nearby area from where a store can draw its
maximum customer. Retailing is differentiated from its competitor by the augmented
benefits that it provides to its customer. It was the exigency to understand the needs
and wants of the customer . so that needs and wants of the customers can be catered
to for carrying out the survey . a questionnaire was prepared which could analyse the
needs, wants and expectation of the customers of reliance fresh stores.

Footfalls show the number of consumers entering into a store within a particular period
of time. Catchment area is basically the haven of customers of the respective reliance
fresh store.

When the income level of the consumers and the allocation of money for buying
groceries would be judged along with their needs and expectation would be catered to
then only footfalls of the respective reliance fresh store can be increased.

We have sorted out few strategies for increment of footfalls in reliance fresh stores of
Bhubaneswar. We have suggested some strategies like engaging various promotions to
increase the footfalls, moreover we can also give discounts and various attractive offers.

We have also done a comparative study of near competitors of reliance fresh. Its
nearest competitor in Bhubaneswar is Spencer’s.

After doing a comparative study and analysis of all the eight stores of Bhubaneswar
based on the questionnaire, we have given suggestions to highlight the positive traits of
reliance fresh store to that extent that it becomes unparallel and peerless . Alongwith it
we also aim to stitch the loopholes and diminish the lacuna of the store.

5
ABSTRACT
The Indian retail sector is going through a transformation and this emerging market is
witnessing a significant change in its growth and investment pattern. Both existing and
new players are experimenting with new retail formats. Currently two popular formats -
hypermarkets and supermarkets are growing very fast. Apart from that there are various
other types of formats like department stores, convenient stores, discount houses, chain
stores etc. Consumer dynamics in India is changing and the retailers need to take note
of this and formulate their strategies and tactics to deliver value to the consumer.
Competition is rising in retail sector in Bhubaneswar due to potential of becoming metro,
rising population and change in the mindset of consumers. Buying from retail stores has
become a status statement for the citizens of this city. Moreover people prefer shopping
from retail stores as it is a ‘one stop buying’ and saves time and energy. This report
“catchment area analysis and strategies to increase footfalls in Reliance Fresh stores in
Bhubaneswar” aims at trapping more and more crowd from the catchment area towards
its store which comes under the format of convenient store. In this project we also have
studied the different aspect of its competitors. This project will also analyze the
catchment area in and around the respective reliance fresh store so that it will be able to
know the preferences of its target customers which will help to cater to various needs of
the customers and thus it will increase the sales figures of Reliance fresh. Currently we
have been given a live project by the organization which aims at reducing under
stocking situations. We are required to take the physical stock of various categories
such as bakery, frozen items and others. This has also proved to be very fruitful and
includes immense learning. We are looking forward with a view that the project we have
taken up will definitely prove to be of immense help to the organization and also for us.

Reliance Retail Limited is currently operating in 8 stores in Bhubaneswar and 6 stores in

Cuttack. This project is focusing on increasing footfalls which are very much essential
for every outlet. As per this project, survey consists of 80% inside store and 20%
outside store. Based on survey, I have to find out the strategies to increase footfalls in
particular outlet. The total sample size of this survey is 100. Each questionnaire consists
of 10 questions.

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The questionnaire consists of questions related to BUYING BEHAVIOUR of an
individual, CUSTOMER TASTE & PREFERENCE and questions about SERVICE,
QUALITY AND PRICING PATTERN OF RELIANCE FRESH STORES. The final part of
the questionnaire focuses on getting some suggestions for the improvement of services
and operation activities of the particular RELIANCE FRESH STORES.

A GLANCE ON OPERATIONS OF RELIANCE RETAIL LIMITED:

Reliance fresh stores, one of the small formats consists of several departments namely
as follows:

1) HUMAN RESOURCES DEPARTMENT

2) SALES & MARKETING DEPARTMENT

3) OPERATIONS & SUPPLY CHAIN DEPARTMENT

4) FINANCE DEPARTMENT

5) IT DEPARTMENT

Each department is specially designed by top most advisors of RELIANCE RETAIL

LIMITED for smooth and efficient functioning of every outlet.

KEY OPERATORS OF RELIANCE FRESH STORES:

 ZONAL HEAD

 CLUSTER HEADS

 ASSISTANT MANAGERS

 OPERATIONS HEAD

 STORES MANAGERS

 ASSISTANT STORE MANAGERS

 SUPERVISORS (OR) SENIOR CSA’S

 CUSTOMER SERVICE ASSOCIATES

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A GLANCE ON BUSINESS ACTIVITIES OF RELIANCE FRESH STORES:

For briefing the business activities of reliance fresh stores, the most
important components are as follows:

INVENTORY MANAGEMENT:

As per the instructions of head of the departments, the zonal head passes
the order to his sub-ordinates. The daily procurement products include dairy products,
bakery products, fruits and vegetables. These products are supplied by local vendors
for all reliance fresh stores outlets.

The other products are procured directly from respected companies and after receiving
the goods from the companies, RELIANCE RETAIL LIMITED is operating the own
SUPPLY CHAIN MANAGEMENT for storing the goods in DC’S ( DISTRIBUTION
CHANNELS) and as per the requirements of the stores, logistics department delivers
the goods to respected reliance fresh stores.

CUSTOMER SERVICE ACTIVITIES:

As this retail sector is fully depending on footfalls, this department is very

much essential for the efficient accessibility with the customers. The CUSTOMER
SERVICE ASSOCIATES were undergone complete training from HR department.

HUMAN RESOURCE MANAGEMENT:

The main function of this department is training and recruitment activities.

The experts give training for STORE MANAGER(SM), ASSISTANT STORE MANAGER
(ASM), STORE SUPERVISOR and CUSTOMER SERVICE ASSOCIATES (CSA) for
the efficient functioning of each outlet.

Moreover this department is responsible for promotional and motivating activities. For
example, this department motivates and gives the titles like “STAR OF THE MONTH”
for the outstanding employees.

8
 INTRODUCTION
The PROJECT IS NAMED “CATCHMENT AREA ANALYSIS AND STRATEGIES TO
INCREASE FOOTFALLS IN RELIANCE FRESH STORES “.This project is all about studying
the various catchment areas in and around the respective reliance fresh stores in
Bhubaneswar. By ‘catchment area’ we mean those areas which are around our target
reliance fresh stores in Bhubaneswar. We need to study the catchment areas as because the
major aim of reliance fresh stores is to attract those customers who stay nearby to the
respective reliance fresh stores. Reliance fresh is a convenient
store format started With a vision to generate inclusive growth
and prosperity for farmers, vendor partners, small shopkeepers
and consumers, Reliance Retail Limited (RRL), a subsidiary of
RIL, was set up to lead Reliance Group’s foray into organized
retail

This project also focuses on the various strategies that will contribute in increasing the footfalls
in the various reliance fresh stores in Bhubaneswar. By the term ‘footfalls’ we mean the number
of people who visit a particular shop in a particular day or time. There are various ways to
increase the footfalls in the stores, some aspects by focusing on which we can increase the
footfalls are like customer loyalty, offers, customer preferences and services, customer
relationship management, enhancement of visibility, store operations etc. we can also check the
footfalls if we can keep a track of the competitors. In case of reliance fresh in Bhubaneswar its
near competitors are Spencer’s and big bazaar. There are many other key areas in retail by
focusing on which we can increase the footfalls. Increased footfalls will automatically increase
the revenues of the organization. There are altogether 8 stores of reliance fresh in
Bhubaneswar. These stores are situated in those areas which are thickly populated i.e.
containing at least 500 households in that area. The main focus of the store is to attract the
maximum number of people who stays near to the reliance fresh store. They basically want to
create loyal customer base. They not only deal with the staples but also with the bakery and
dairy products. They also cater to various other needs of household. Initially when reliance fresh
came into existence it thought of offering fresh vegetables and fruits but it could not carry this
successfully as there was a strong opposition from small vendors and farmers as they saw
reliance fresh as a threat to their business. But recently reliance fresh has started with its fresh
vegetables and fruits section and it is also doing comparatively better than its initial days. This
project will thus help the organization to know its customers and their preferences in a much
more refined way. This would also help the organization in analyzing the area and accordingly it
would help them to prepare a strategy that will reap heavy benefits for the organization. This
project will also help the organization to know where it should strengthen itself. The main
intention of this project thus is to increase revenues and to generate profits for the organization
by increasing the customer base and by converting the prospective buyers to actual buyers and
again by converting actual buyers to loyal customers. Therefore in order to retain these loyal
customers and to create a strong customer base this project will focus on various key issues.
Moreover this project by studying and analyzing the catchment area will give the preferences
of the people according to their culture and needs. It would be comparatively easier for the store
to cater to the needs of the customers if they know their taste and culture. Thus this is how the
project will be of immense help to every individual as well as to the organization.

9
 OBJECTIVE

1) A key objective of this study is to utilize the most recent and robust sources of
Data and estimate the need for additional retail footfalls, and to increase
revenues. The quantitative assessment has been undertaken for each of the
main category of retailing. I.e. convenience goods.

2) Although the assessment is necessarily detailed and relatively complex,

transparency will be sought in all the calculations. A traditional approach to
estimating quantitative retail need will be adopted and the very latest
published data, including a specially commissioned report by Experian on
consumer retail expenditure and a range of consumer surveys will be
Incorporated. This should ensure that the assessment is up to date,
Comprehensive and robust.

3) This project also sets out in more detail the methodology employed, summarises
the role of the survey and (for convenience) sets out in one place the main
assumptions and definitions which will be used and the principal sources of data.

4) The objective of this project is also to study and analyze the strategies that will
convert the prospect customers into actual customers and also to retain them as
loyal customers.

5) It will also study the catchment areas around the reliance fresh stores that will
help the organization to know the preferences of the customers and it would help
them to cater to their needs in a better way.

6) This project’s major objective is basically to promote reliance fresh stores in

Bhubaneswar and to cater to the needs of its customers in a more refined
manner.

A major aim of the survey is to generate quantitative data on consumer retail

expenditure flows between areas or zones (where people live) and retail centre’s
(where they spend their money).

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Methodology
In this project both primary and secondary research technique were used. Methods

that were used during various stages of the primary research are as follows:

Stage 1: Designing questionnaire:

The questionnaire was designed while keeping in mind the needs and results expected
from the project.

Stage 2: Data collection:

Primary data collection was done using the questionnaire.

Stage 3: Data entry:

Data entry was done by us.

Stage 4: Analysis:

The analysis of the data to be done that has been collected by us.

Stage 5: Findings:

After the analysis based on the data findings to be evaluated.

11
INTRODUCTION TO RELIANCE RETAIL
LIMITED

With a vision to generate inclusive growth and prosperity

for farmers, vendor partners, small shopkeepers and
consumers, Reliance Retail Limited (RRL), a subsidiary of
RIL, was set up to lead Reliance Group’s foray into organized
retail.

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
neighborhoods convenience stores, hypermarkets, 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 India’s 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 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.

12
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 centers 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. Further, RRL will continue to seek synergistic
opportunities.

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 US$ 34 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 in the late seventies, Reliance pursued a strategy of
backward vertical integration - in polyester, fiber intermediates, plastics, petrochemicals,
petroleum refining and oil and gas exploration and production - to be fully integrated
along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining
and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals),
textiles, retail and special economic zones.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and
fiber producer in the world and among the top five to ten producers in the world in major
petrochemical products.

The Group exports products in excess of US$ 20 billion to 108 countries in the world.
Major Group Companies are Reliance Industries Limited (including main subsidiaries
Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial
Infrastructure Limited.

13
About founder of reliance groups
The world, they say, steps aside for the man who
knows where he is going

Our respected Chairman, Shri Dhirubhai Ambani was

an exceptional human being and an outstanding leader.
A man far ahead of his times, he epitomized the
dauntless entrepreneurial spirit. He dared to dream on
a scale unimaginable before in Indian industry. His life
and achievements prove that backed by confidence,
courage and conviction, man can achieve the
impossible.

From a humble beginning, he went on to create an

enviable business empire within a span of just 25 years.
Dhirubhai H. Ambani
The Reliance Group is a living testimony to his
Founder Chairman Reliance indomitable will, single-minded dedication and an
Group unrelenting commitment to his goals.
December 28, 1932 - July 6,
2002

Under Shri Dhirubhai Ambani's visionary leadership, the Reliance Group emerged as
the largest business conglomerate in India, and carved out a distinct place for itself in
the global pantheon of corporate giants. The Group's track record of consistent growth
is unparalleled in Indian industry and perhaps internationally too. Today, the Group's
turnover represents nearly 3 percent of India's GDP. Shri Dhirubhai Ambani was not just
firmly rooted in traditional Indian values, but was also the quintessentially modern man,
the man of the new millennium. This was clearly reflected in his passion for mega-sized
projects, the most advanced technology and the highest level of productivity. The
corporate philosophy he followed was short, simple and succinct - "Think big. Think
differently. Think fast. Think ahead. Aim for the best”. He inspired the Reliance team to
do better than the best - not only in India but in the world.

Prestigious awards and titles were conferred on him by national and international
organisations. He was acclaimed as the top businessman of the twentieth century and
lauded for his dynamic, pioneering and innovative genius. His success story fired the
imagination of the younger generation of Indian entrepreneurs, business leaders and
progressive companies. He was an icon for them, a role model to be emulated.

14
The number of revolutionary precedents set by Shri Dhirubhai Ambani is legion. His
unique vision redefined the potential of the Indian corporate sector as he challenged
conventional wisdom in several areas.

He was probably the first Indian businessman to recognize the strategic significance of
investors and discover the vast untapped potential of the capital markets and
channelize it for the growth and development of industry. He was supremely confident
that finance would never be a constraint in executing his projects because, as he said
proudly, Indian investors would provide him with the necessary resources.

And the investors never let him down. Shri Dhirubhai Ambani succeeded in creating an
investor base of historic proportions for the Reliance Group. An unbreakable bond of
implicit trust existed between him and the shareholders. They placed their savings in his
care and he worked with unflinching sincerity to get them the best returns. He brought
happiness and prosperity into the homes of millions of investors.

For him, his people were his most important asset. He scouted around for the best and
most talented professionals, nurtured them and continuously propelled them to aim for
still higher goals. These highly motivated people comprise the core of what he named:
"The Reliance Family".

Shri Dhirubhai Ambani visualized the growth of Reliance as an integral part of his grand
vision for India. He was convinced that India could become an economic superpower
within a short period of time and wanted Reliance to play an important role in realising
this goal.

The Bhagavad Gita states, "The actions of a great man are an inspiration for others.
Whatever he does, becomes a standard for others to follow." This certainly applies to
Shri Dhirubhai Ambani.

We are fortunate to have had a man of Shri Dhirubhai Ambani's stature in our midst. His
sterling leadership qualities, remarkable foresight, uncompromising pursuit of
excellence, humility, prodigious capacity to motivate and trust people will continue to
guide and inspire future generations at Reliance. We are proud and privileged to inherit
this invaluable legacy.

Truly, men like Shri Dhirubhai Ambani are rare. They come gifted with the power and
the vision to change the destiny of nations, to alter the course of corporate history. They
are the empire builders, the stuff that legends are made of. The legend called Shri
Dhirubhai Ambani will never die. His spirit will live on forever.

15
Reliance Retail Limited: An Overview

Reliance is gearing up to revolutionize the retailing

industry in India. Towards this end, Reliance is
aggressively working on introducing a pan-India
network of retail outlets in multiple formats.

A world class shopping environment, state of art

technology, 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 endeavor 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.

16
 Retail industry in india
The retail industry is continuously changing as the global and regional economies
are transforming worldwide. Our research team virtually traces every activity in
the retail industry and provides the latest update in retail industry blogs. Our
industry experts study these developments to give critical analysis along with
their personal opinion. Our blogs on retail industry encompasses retail industry
aspects as diverse as organized retailing, retail channels like supermarkets,
convenience store, and retail products (food and nonfood).

Retail Sector is the most booming sector in the Indian economy. Some of the
biggest players of the world are going to enter into the industry soon. It is on the
threshold of a big revolution after the IT sector. Although organized retail market
is not so strong as of now, but it is expected to grow manifolds by the year 2010.
The sector contributes 10% of the GDP, and is estimated to show 20% annual
growth rate by the end of the decade. The current growth rate is estimated to be
8.5%, but CRISIL report says that the retail market is most fragmented in the
world and only 2% of the entire retailing business is in the organized sector.
There are about 300 new malls, 1500 supermarkets and 325 departmental stores
being built in the cities very soon.

The retail boom will face a strong competition from the 12 million mom-and-pop
stores, which are easily accessible and approachable and provide services like
free home delivery and goods at credit. But buying from Malls, Supermarkets and
Department stores like Subhiksha, Marks & Spencer’s, etc gives a different
feeling and the
Environment of pick and choose from a variety of products. A number of retail
giants are also going to explore the market such as Reliance Retail Ltd and Wal-
mart. The revolution is driven by large expectations where both domestic and
international players will be channel through which other large stores in India are
spreading themselves acrossthe country.

17
Emerging Trends in Consumers’ Income & Consumption Pattern

NCAER study and some other data published by different research & consulting
sources indicate the following trend in Consumer income and put the following
projections about the Indian retailing:

1) GROWING PROSPERITY: Making Indian Consumers Great: As per India’s

Marketing White book (2006)3 by Business world, India has around 192 million
households. Of these, only a little over six million are ‘affluent’ – that is, with household
income in excess of INR215, 000. Another 75 million households are in the category of
‘well off’ immediately below the affluent, earning between INR45, 000 and INR 2,
15,000. This is a sizable proportion which offers excellent opportunity for organized
retailers to serve.

2) INCREASE IN THE SIZABLE DISPOSABLE INCOME: Business communities

believe that sizable disposable income in India is concentrated in the urban areas and
well off and affluent classes; income distribution in India is unequal compared to other
Asian economies. In fact, the 20 million middle class home in rural India equals the
number in urban India4 and thus have the same purchasing power.

Therefore, there is significant and considerable opportunity for organized retailers in the
rural areas as well. There is no denying that the rural market holds immense promise for
the organized retail but companies ponder over, how to serve that market profitably.
Unlike the urban market, it is less developed in terms of infrastructural facilities.

3) PLACE IS NO MORE IMPORTANT: The Major issue is to find out a suitable

business model and retail format to fit local taste and preferences. Of course, cost of
doing business in rural market would be lesser, as compared to urban market but
reaching out to the mass is a concern. For example the most successful and the
largest incorporation, Wal-Mart started in the rural market where as competition started
in the urban market. This retailer has proved that it is important to understand how do
you operate your business model rather than where you do it. Given the increasing
urban exposure of rural India, the urban and the rural upper-income groups can form
an interesting continuum market, giving it a scale of 23 million households, or 115
million consumers.

18
4) INCREASING POTENTIAL IN RURAL MARKETS: NCAER data shows that for
1998-99, for a basket of 22 FMCG products it tracks, a total of over Rs 91,500 crore
was spent. Of this, 37% was spent by the two lowest-income groups in rural India, and
only about 20% by the top two income groups in urban areas.

This is, perhaps, the best and only statement of the structure and potential of the Indian
market. Hence, marketers have to worry about purchasing power of consumers not
where do they reside. For example there are nearly 42,000 rural haats, average
number of sales outlets per haat is 300 and average sales per outlet is INR 900 and
average foot fall in a haat is about 4,500. In rural India there are 50 million Kisan Credit
Card (KCC) holders. These are some of the indicators how rural India is performing well
& coming up.

5) As per NCAER data no. of Household having income of < 90,000 per annum in
2005-06 was 1,32,249 ( 000) is projected to come down to 1,14,394 by 2009-10 which
indicates that middle class is growing and they are emerging as real customers.(
Annexure:1,2,3,4)

6) HIGHER PROPORTIONATE RURAL EXPENDITURE: While an average City-

dweller may be spending almost twice than his counter-part in rural areas but in terms
of allocation of his budget to key segments, the villager has sprung a few surprises.
According to the latest data on household Consumption expenditure, rural India is
allocating almost 10% of the monthly household Budget for fuel & Lighting while an
average urban household spends 9% under the same head. (Annexure: 11) .Still it
remains attractive because of intense competition in Urban India.

19
NCAER Research on Indian Consumers

In value terms, however there is a sharp difference with rural Indian households
earmarking Rs. 60 a month as consumption expenditure, compared to Rs.110 in cities
and towns. After all, at Rs.19 a day or Rs. 625 a month, the average consumption
spending too is low in rural areas, compared to Rs. 39 a day or Rs.1171 a month in
urban India.

The rapid rise in incomes will lead to an even faster increase in demand for consumer
durables and expendables. Result by; the ownership of goods will also go up
significantly by getting empowered through rise in the size of the great Indian middle
class. (Annexure-5, 6, 7)

7) YOUNG POPULATION: By 2010 almost half of our citizens will be in the working
age group of 20-24 years. A youthful, exuberant generation, bred on success will not
drive the productivity but also set a spiraling effect on consumption & generation of
income. Currently the country has a population of over one billion, 60% of which is
under 30 years of age. This means majority of the population is young and working
class with higher purchasing power. The low median age of population means a higher
current consumption rate which augurs well for the retail sector. Consumer spending in
India has grown at over 12 percent since mid-1990s and 64 per cent of Indian GDP is
accounted for by private consumption. Over the last decade, the average Indian
spending has gone up from INR 5,745 in 1992-93 to INR 16,457 in 2003-04 and is
expected to grow around its trend rate of 12 per cent per annum.

8) FUNDAMENTAL CHANGES IN INDIAN ECONOMY: There are fundamental but

significant changes underway in our economy. In January 2006, the government
announced that foreign companies can own up to 51 percent of a single brand retail
company, such as Nike or Adidas. This decision would certainly encourage retailers
such as Zara5 and Gap6 to enter this market. Tesco is planning to enter the market
through a partnership with Home Care Retail Mart Pvt Ltd and expects to open 50
stores by 2010.7

20
Study of the near competitors
SUBHIKSHA
Subhiksha is the retail venture of the Chennai-based, Vishwapriya Group. The
Vishwapriya Group, a financial services company, was formed in 1991, which initially
consolidated debentures for small holders for investment in mutual funds. In 1992, the
Vishwapriya Group diversified to Asset Securitization. In 1994, the company launched a
new product IPO financing company named, “Prime Advancing”, which did very good
business until the collapse of the stock market in 1996. In 1997, the Vishwapriya Group
allocated a corpus of Rs. 50 million of the profit earned in the retail business and
launched the Subhiksha Trading Services discount chain.

At first glance, Subhiksha is a larger version of the kirana store next door. The company
is distinctively positioned for its low prices, up to 10 per cent lower than the MRP prices.
Its business strategy optimizes on direct procurement from the suppliers as much as
possible. This approach allows the company to buy at cheaper rates by:

i. Paying upfront in cash as opposed to payment by credit;

ii. Securing a better pricing deal for bulk purchase; and
iii. Securing better purchasing terms for direct purchase from suppliers and
manufacturers.

With capital investment worth Rs. 4 billion, Subhiksha generated a sales turnover of Rs.
330 million and accounted directly for employment of 3,400 persons in 2006.
Additionally, the company sells less-known brand labels across a few product
categories, thus creating a market for small-scale domestic manufacturers.

As opposed to establishing 10,000 sq.ft. mega-sized outlets, Subhiksha started with 10

small 1,000 sq. ft. stores in Chennai. Currently, Subhiksha operates approximately 750
stores in a total area of 6, 00,000 sq. ft. In 2004, the company decided to expand across
the country. Tamil Nadu has the largest share of stores at 20 per cent. Maharashtra has
the second largest share of stores at 17 per cent. The states of Andhra Pradesh,
Karnataka, and Gujarat have a total of 28 percent stores. In the North, Delhi and the
NCR have 16 per cent stores and, the balance 19 per cent stores are split between
Punjab and Western Uttar Pradesh. In 2006, Subhiksha had 1.3 per cent market share
in the organized retail industry. The net sales turnover projects high sales revenue
growth from Rs. 8 billion to Rs. 70 billion by 2010. The estimated projection in the
number of stores from 750 in 2006 to 3,000 by 2010 partially explains the increase in
sales turnover. Sales per sq. ft. are estimated to grow from Rs. 13,333 per sq. ft. to Rs.
19,444 per sq. ft. in 2010, a jump of 46 per cent. In spite of the discount format store,
Subhiksha is gaining from increase in its sales volume. In addition to branded FMCG
products, Subhiksha also offers store space to domestic small manufacturers to sell

21
their brands in certain FMCG products (processed food, detergents, toiletries, and
consumer durables) under exclusive supply and quality level arrangements. The
manufacturers do their own labeling, packaging, and bar coding. Small manufacturers
also deliver goods to the Subhiksha collection centre located in the state.

Movement of goods is managed through third-party contracts (having flexibility of 30

days termination period) with various transport fleet firms. The management team at
Subhiksha controls the administration plan for outbound (from distribution centre to
outlets) and in-bound (from collection centre’s to distribution centre’s) truck movement
across the nation. Nearly 750 trucks run outbound and another 500 trucks run inbound
supporting the total employment for around 4,500 people.

The company leverages on information technology (IT) for automating certain tasks,
cutting its internal cost and gaining market efficiencies. Subhiksha has begun the
implementation of SAP Retail (software application provided by SAP for the retail
industry) for integrating the back end and front end for controlling inventories. It is
already using certain micro-level applications such as point of sale; and bar code based
billing (automates the billing system). So far, the company has invested nearly Rs. 100
million in IT. Between the hardware vendors and software vendors, Subhiksha IT
activities support the employment of nearly 80 IT people annually. In order to keep the
operative costs low at the retail front, Subhiksha maintains flexible staffing through
contract agencies. The contract agencies manage front-end staffing needs for home
delivery and during peak hours at the stores. In total, on an average approximately
14,000 persons support the regular staff annually. Thus, the multiplier effect of the
economic activities at Subhiksha Trading Services discount chain further adds
employment of around 18,580 people indirectly across the country.

Penetration in key markets

Subhiksha caters to the mass market. It operates its outlets only in commercial areas
around densely populated residential areas. Since the focus is on daily need products
for which people are unlikely to travel long distances, by rule of thumb each Subhiksha
store is located within half a kilometer or a kilometer radius having coverage of 10,000
household units. The firm has gained the first-mover advantage similar to its competitor
Pantaloon Retail India Limited by locking in lease for a 10- year period for the front-end
stores in commercial areas. Within the discount store retail format, Subhiksha operates
nearly 150 outlets in Chennai alone, Delhi and NCR consists of another 122 stores, and
Mumbai has 89 stores. Considering the high localization content in the retail model
success, the regional team selects locations by analyzing the population density of an
area. In addition to its 1,000 sq. ft. brick and mortar stores, Subhiksha has also
launched an online store, based on a click and mortar model, Subhiksha.biz. The online
store is so far live only in Chennai as the company has a network of 150 stores across
Chennai.

22
 Product mix
Subhiksha focuses on daily need products. The company’s retail products include
FMCG, staples, fruit and vegetables, pharmaceuticals, and mobile phones. Each
Subhiksha store operates more or less four separate business units: fresh fruit and
vegetables, grocery, pharmacy, and mobile phones. Owing to real estate constraints in
the commercial markets in large cities, in certain locations there may be only two of the
business units, such as fruit and vegetables, and grocery, the company’s core product
line.

Fruit and vegetables consist of 60 per cent of the product mix and the rest 40 per cent
split into FMCG products, pharmaceutical products, and mobile phones. The FMCG
category consists of a mix of branded and unbranded product labels. The
pharmaceutical stock consists of continuous therapy drugs (hypertension, cardio,
arthritis). There is also a stock of certain life-saving and cancer drugs. Subhiksha keeps
a minimum base quantity and then builds its inventory over a period of time based on
the demand pattern. Subhiksha also keeps private labels in certain grocery product
categories.
Product Procurement
Subhiksha has 12 distribution centre hubs for its clusters in nine states: Tamil Nadu(2),
Andhra Pradesh(2), Karnataka(1), Gujarat(1), Maharashtra(3), NCR Delhi(1) Western
UP (1), and Punjab (1). The large suppliers’ Clearing & Forwarding (C&F) agents
directly deliver to the company’s nearest distribution centre in the state. Subhiksha
maintains a collection centre around every major city which consists of weighing
machines, crates, and support staff to take care of cleaning, weighing, and packaging.
Collection centre’s do not hold transit stocks. The regional management team
coordinates with the collection centre as to how much is needed which in turn give
information to the farmers or a farmers’ group about the quantity and quality required
daily. Payments are done the next day following the procurement. In the case of FMCG
products, the company makes bulk purchases from the large suppliers on upfront cash
payments, thus saving around 6-7 per cent as opposed to buying at the distributor level.
However, in the mobile category, Subhiksha procures from the company’s national level
distributors, and in pharmaceuticals, it is typically proccured through the distribution
chain. In these categories, the company leverages by making cash payments on bulk
purchase.

Subhiksha follows a three-tier model of procurement in the food and grocery category:
(a) direct procurement from the supply source when volume requirements are large;
(b) through consolidators for small volumes in locations where the number of stores
does not justify bulk purchase; and (c) through mandis, predominantly via APMC
licensing and commission agents.

23
Staple food items, such as rice and wheat, pulses, dry fruit are purchased directly from
the mill processor. Subhiksha attempts direct procurement in spices: chilli, coriander
powder, tamarind, if the volumes are large. As for fruit, mangoes are directly procured
from the orchard growers. The company has its collection centre’s at specific mango
growing clusters. The company directly procures fresh produce such as greens,
coriander leaves, cabbage, bhindi, and spinach from nearly 120 farmers through a
consolidator or aggregator. In addition to branded FMCG products, Subhiksha also
offers store space to domestic small manufacturers to sell their brands in certain FMCG
products (processed food, detergents, toiletries, and consumer durables) under
exclusive supply and quality level arrangements. The manufacturers do their own
labeling, packaging, and bar coding. Small manufacturers also deliver goods to the
Subhiksha collection centre located in the state. Movement of goods is managed
through third-party contracts (having flexibility of 30 days termination period) with
various transport fleet firms. The management team at Subhiksha controls the
administration plan for outbound (from distribution centre to outlets) and in-bound (from
collection centre’s to distribution centre’s) truck movement across the nation. Nearly 750
trucks run outbound and another 500 trucks run inbound supporting the total
employment for around 4,500 people. The company leverages on information
technology (IT) for automating certain tasks, cutting its internal cost and gaining market
efficiencies. Subhiksha has begun the implementation of SAP Retail (software
application provided by SAP for the retail industry) for integrating the back end and front
end for controlling inventories. It is already using certain micro-level applications such
as point of sale; and bar code based billing (automates the billing system). So far, the
company has invested nearly Rs. 100 million in IT. Between the hardware vendors and
software vendors, Subhiksha IT activities support the employment of nearly 80 IT
people annually. In order to keep the operative costs low at the retail front, Subhiksha
maintains flexible staffing through contract agencies. The contract agencies manage
front-end staffing needs for home delivery and during peak hours at the stores. In total,
on an average approximately 14,000 persons support the regular staff annually. Thus,
the multiplier effect of the economic activities at Subhiksha Trading Services discount
chain further adds employment of around 18,580 people indirectly across the country.

24
 PRICING STRATEGY
Subhiksha works on discount pricing within the range of 10 per cent lower than the MRP
prices which the company manages through direct procurement and on spot cash
payment. While passing on a part of its margin share to the mass market, the company
maximizes its gains by selling high volumes.

Pricing of fresh produce is negotiated everyday based on prevailing mandi prices. By

directly going to the farmers, the company saves around 15-20 per cent of which a
portion is passed on to consumers in the form of a discount. Wastage is around 8-10
per cent every day which is then sold to hawkers. In the case of FMCG, unbranded
private labels are priced lower than the branded products. However, the company gains
higher margins on unbranded products. In the mobile phone category, where typically
90 per cent of walk-ins are only for price comparison and information gathering, there
are about 150-200 footfalls on weekends and 100-110 footfalls on weekdays. The
conversion rates are 50 per cent and 35 per cent on weekends and weekdays,
respectively.142 Since healthcare retailing is a growing market, pharmaceutical
products certainly carry higher margins between 16 per cent and 18 per cent. After
discounting, Subhiksha gains around 10 per cent margin. However, Subhiksha is facing
challenges in procurement of medicines because of cartelization of the entire supply
chain. Subhiksha is also among the few organized retailers that provides home delivery
to its customers. The company’s promotion schemes, “Subhiksha” card membership
and cash back, and home delivery facility also contribute to selling in high volumes.

FUTURE PLANS
Subhiksha plans to have 3,000 stores by 2010 at a capital investment of Rs. 6
billion.The company was planning an IPO by the end of 2007 which is now postponed.

CHALLENGES
Having to comply with multiple taxes (CST, VAT) has been one of the challenges in
keeping operational costs low because it forces the company to keep warehouses and
buying points in each state as opposed to having a centralized distribution centre.
Rising real estate prices and non-availability of land in commercial places is another
critical challenge the company is facing in its low-cost business model. Also, the APMC
laws and the regulatory environment in the retail industry pose hurdles to the Subhiksha
business model.

KEY TAKEAWAYS
Subhiksha leverages on a low-price, high-volume strategy by: (i) developing kirana like
stores at the front end; and (ii) procuring bulk purchases on cash payments directly from
the source of supply as much as feasible.

25
 ITC CHOUPAL AND FRESH
ITC Limited, the flagship company of ITC Group, comprises businesses in diverse
areas: cigarettes, hotels, paperboards and specialty papers, packaging, agri-business,
branded apparel, packaged foods and confectionery, greeting cards and other FMCG
products. In 1990, the ITC International Business Division was formed to export high
value agri-commodities. Soon after, ITC was among India’s top agricultural exporters.
However, ITC started facing intense competition in the global markets as a result of the
liberalization of the global agricultural markets under the WTO regime. Existing gross
inefficiencies29 in India’s agriculture market triggered high procurement costs which in
turn pushed ITC to launch the ICT-based e-Choupal business model. In 2004, ITC
entered into rural retailing through the Choupal Sagar retail format. Later in 2006-07,
ITC launched retailing in urban areas through its Choupal Fresh stores. ITC’s e-Choupal
is the largest initiative among all internet-based interventions in rural India. It began its
operation in 2000 in the state of Madhya Pradesh. Today there are nearly 6,500 e
Choupal kiosks connected with 36,000 surrounding villages in the nine states of Uttar
Pradesh, Madhya Pradesh, Andhra Pradesh, Maharashtra, Haryana, Karnataka,
Uttarakhand, Kerala, and Rajasthan. Choupal Sagar, the rural retail chain, was formed
to capture the rural markets by providing a retail outlet for reverse flow of goods and
services from markets to farmers. The e-Choupal-Choupal Sagar rural retail outlet has
contributed a sales turnover of Rs. 1,000 million in 2006. According to the ITC’s Annual
Report, the Agri Business Division30 reported a sales turnover of Rs. 17 billion31 in the
financial year ending March 2006 (also includes sales turnover earned from leaf
tobacco). ITC retailed its first Choupal Sagar store near Sehore in Madhya Pradesh. At
present, there are 24 such hypermarkets in Madhya Pradesh, Maharashtra and Uttar
Pradesh. ITC’s recent initiative, “Choupal Fresh” is presently operating in Hyderabad,
Pune, and Chandigarh covering a total area of 27,000 sq. ft. ITC plans to roll out 50 new
Choupal Fresh in the near future in these cities. Currently, ITC procures soybeans,
wheat, pulses, aqua products (Andhra Pradesh), and coffee beans (Karnataka and
Kerala) through its e-Choupal business platform.

RE-ENGINEERING OF THE SUPPLY CHAIN

ITC’s International Business Division developed a business model on IT based
infrastructure in order to build a direct relationship with the source of supply, that is the
farmers. The company’s strategy involved: (a) leveraging on IT enabled business
processing; (b) lowering its procurement cost by bypassing the middlemen and local
APMC markets; and (c) improving the commodity market efficiencies by providing direct
market feedback to the farmers. Typically, regardless of the type of product, the
procurement outflow from farmers to the processors’ supply chain in the traditional
format involved the following: In this proposition, ITC does a trade-off by incurring the
capital cost of installing the internet kiosk for outreach and exchange of information at
the farmers’ level. Currently, each of the 6,500 e-Choupals has a catchment area of 5-6
villages; next, each hub covers nearly 40 e-Choupal villages and there are 250 such
hubs.

26
The e-Choupal network is set up at an average cost of Rs. 1, 86,000 with Very Small
Aperture Terminals (VSAT) connectivity and Rs. 80,000 without the connectivity.
Between 2001and 2002, there were 996 e-Choupals without VSAT connectivity and 100
with VSAT connections. Additionally, 140 e-Choupals were taking modem connectivity
through the Rural Automatic Exchange in Madhya Pradesh at the cost of Rs. 7,500 per
e-Choupal. Another Rs. one million was expended on content development in the local
language for the web-site. The annual operating cost is nearly Rs. 5, 00,000 annually
per e-Choupal, which is incurred by ITC. ITC heavily invested in building a solid IT
platform to capture the basic transaction and information integration by implementing an
Enterprise Resource Planning (ERP) system.

ITC E-CHOUPAL-SAGAR MODEL

ITC’s e-Choupal platform is a three- by- three infrastructures:

E-CHOUPAL HUB CHOUPAL

SAGAR
INFRASTRUCTURE ICT KIOSK BRICK AND B2B(farmers to
MORTAR ITC)and
WAREHOUSE B2C(providers
of product and
services to
farmers)outlets
ENTITY SANCHALAK SAMYOJAK(formerly ITC
a commission agent Employees
in the traditional
format)
COVERAGE 5-6 VILLAGES 45 e-choupals(25 to
30 kms)

E-Choupal is the ICT platform for farmers to directly access: (i) real time information on
the farm produce prices in the surrounding markets; (ii) local weather forecast, video
streamed soil-testing services, best-farm practices, information on agri-inputs,
agricultural implements, and consumer durables. In order to maximize on operational
efficiencies, e-Choupal works on a two-tier level: First tier: At the village level,
sanchalak or the local village man is the physical entity selected by ITC. The e-Choupal
kiosk is located at the sanchalak’s house which eliminates the rental cost for ITC. He is
responsible for coordinating information on farmers’ queries, aggregating farmers’
purchase requirements, and making transaction slips. These transactions are then
undertaken at the hub, the procurement centres for agricultural produces in the e-
Choupal network value chain for ITC. Each hub is managed by a samyojak, the
erstwhile commission agent from the APMC markets, now working for ITC. He is in
charge of the distribution of goods, payment to farmers, managing large cash flows,
transportation arrangement, and management of the hub facility. In return, the samyojak
receives one per cent commission on every transaction taking place at his hub facility.

27
Second tier: At the village level, the sanchalak is also a delivery point for villagers’ on
demand goods as well as a stock supplier to the local village shopkeeper. The
sanchalak conveys indicated demands to the hub where a samyojak arranges delivery
to the village. The sanchalak then collects cash payments for the goods sold and remits
them to ITC. In return, the sanchalak is paid a commission of 0.5 per cent on every
rupee of produce sold. The e-Choupal model, benefits all three entities: (i) ITC by
penetration at the farmer level; (ii) farmers with an additional channel to sell produce;
and (iii) sanchalak/samyojak gets paid in proportion to the transaction and earns
additional income.

The Choupal Sagar retail centre is an expansion of hub operations into retail outlet. It is
a two-way flow of goods and produce like a hub as well as a retail shop for farmers. It
has a physical infrastructure for farmers to sell their goods and purchase their farm input
and consumer products. Each Choupal Sagar retail outlet covers a shopping area of
7,000 sq. ft. At the back of the outlet is a storage fitted with weighbridge which can store
nearly 10,000 tons of grain. Besides, a Choupal Sagar has a motor training centre,
cafeteria, fuel station, soil testing laboratories, medical facility, pharmacy, and even tele-
medical facility.

This kind of spread enables ITC to streamline the supply chain of surrounding e-
Choupal for distribution of goods and services in both the formats: (i) business to
business; and (ii) business to rural consumers. ITC aggregates demand across several
villages for bulk purchase from the producers in order to economize its distribution and
logistics cost. On the e-Choupal business platform, revenue is generated in the form of
trading profits of products and services sold through the system. Distribution and
promotion charges are imposed on generated revenue per choupal basis. In 2006, ITC
rural retail earned Rs. 1,000 million of revenue, incorporating commission earned from
selling 161

insurance policy, credit loans, agri-inputs, vehicles, and distribution of products of 45

companies. Further, the company is building a data warehouse of the soil properties
from the queries received across villages.

ITC CHOUPAL FRESH

Choupal Fresh is a retail outlet for fresh fruit and vegetables which also has a parallel
wholesale C&C. In this venture, ITC has partnered with Ingersoll Rand and Snowman.
Ingersoll Rand offers material handling and temperature control technologies and
Snowman provides the logistics support in the form of warehouse and transport. In this
collabouration, ITC leverages its expertise in backward linkages through collection
centres and agricultural extension services expertise gained from the e-Choupal
initiative. Through its extension services, ITC is managing the quality of the produce and
building an ITC brand in fresh fruit and vegetables.

28
 PENETRATION INTO KEY MARKETS
Choupal Fresh is a retail (B2C) and wholesale (B2B) outlet located in close proximity to
each other. Each Choupal Fresh consists of 2,200 sq. ft. of retail outlet and a wholesale
outlet including a cold storage area of 7,000 sq. ft. Launched in August 2006, ITC
Choupal Fresh so far has three such outlets in Hyderabad (Andhra Pradesh), Pune
(Maharashtra), and Chandigarh (Haryana). The wholesale outlet not only supplies to its
Choupal Fresh retail but also sells to organized retail companies, push-cart vendors,
and other traditional retailers who purchase their procurement at the wholesale price. In
some cases, ITC has been instrumental in extending credit facilities to the push-cart
vendors through another company “Basix” which specializes in micro-credit financing
through the Citi Bank. So far, around 25 push-cart vendors have secured a loan of the
amount of Rs. 10,000 to be repaid in 12 installments of Rs. 950.
PRODUCT MIX
Choupal Fresh primarily focuses on fresh fruit and vegetables. The product mix
incorporates fresh vegetables, bulk produce like tomatoes, potatoes, and onions and
fruit like oranges, mangoes, and grapes. Currently, the Choupal Fresh product mix
consists of 260 SKUs all sorted and graded in different basket sizes.
PRODUCT PROCUREMENT
The bulk of the produce for the Choupal Fresh stores are procured directly at the farm
level. ITC tries to get the best price and quality by: (a) assigning farmers for sorting,
grading at the farm level; (b) streamlining the product procurement process through a
hub and spoke model directly from farmers; and (c) providing timely agricultural
extension services to farmers for improving the crop quality and yield. The ITC staff
provides free inputs on agricultural practices, and latest trends in crop preparation to the
farmers. Thus, adapting best practices at an early stage ensures increase in the yield
for farmers and also enables ITC to meet quality parameters in a time efficient manner.
Again, the farmer is free to sell his produce either to ITC or the APMC markets. For
Hyderabad’s twin outlets (retail and wholesale) there are collection centers located in
and around Andhra Pradesh wherein the farmers, with the help of the lead farmer, bring
their produce. Since the focus is more on the small and marginal farmers, the collection
centre’s are typically located very close to the farms of small and marginal farmers.
From the collection centre, produce is transported in cold chain logistics to the
distribution centres. The lead farmer is one of the regular farmers, selected by the ITC
extension staff, who plays the role of an aggregator. At present the lead farmer is
analogous to the sanchalak in the e-Choupal format, but his role will evolve with time.
The ITC extension team demonstrates several benchmark practices at the lead farmer’s
farm. Nearly 70 per cent of the procurement is directly through farmers within the local
area of Hyderabad, Pune, and Chandigarh. The balance 30 per cent of the non-
localized food is supplemented through the APMC market route. In total, including the
local farmers and the APMC market agents, ITC procures from nearly 1,000 suppliers
for its supply to all the three locations at present. There are three collections centres
around three outlets.

29
All types of fruit have their own collection centers in the specialty cluster of that region.
Further, some of the collection centre’s which also operate for the ITC export
businesses are used during the season for Choupal Fresh outlets. Certain collections
centers are of makeshift nature during the harvesting season, for example the potato
collection centre in Hatharas. ITC procures national produce through the traditional
route via the APMC markets. The procurement for fruit and bulk produce to all the three
outlets are sourced from product-specific clusters, such as mangoes from Ratnagiri and
Vijaywada, apples
from Himachal Pradesh, potatoes from Hatharas in Uttar Pradesh, oranges from
Amravati in Nagpur, and, onions from Nashik. In this case, ITC makes a purchase like
any other wholesaler at the APMC market through the agent at a given commission
rate. In the APMC markets, fruit is sold through the auction system, whereas vegetables
are sold through negotiations. Fresh and seasonal produce, such as tomatoes, brinjal,
gourds, and fruit, such as papaya and palm are proccured from the farmers in the local
region around Hyderabad, Pune, and Chandigarh. There are around 150 farmers who
directly supply to Choupal Fresh through a lead farmer aggregator. Through direct
procurement, farmers save 10 per cent commission for the services34 formerly
undertaken by the commission agent. In return, farmers are required to do sorting,
grading, and maintaining a logbook of crop management practices followed by the
farmers.

PRICING STRATEGY
ITC leverages its market prices on a 10 per cent commission that it saves by directly
procuring from farmers. Besides, the company also benefits by offering quality product
and building its brand in the long term. The wholesale retail prices are around 15-20 per
cent lower than the twin retail outlet so far. In addition to competitive prices, fruit and
vegetable baskets are sorted for quality. Margins are generally low in bulk products,
such as potatoes, onions, and tomatoes at approximately 5 per cent. Fruit yield around
40 per cent margin excluding long distance transportation cost, and fresh greens secure
the highest margin at 30 per cent. The average sale in a retail outlet is about 5-6 tones
a day amounting to about Rs. 1,20,000 per day.35 ITC undertakes additional grading
and sorting by size, variety, number of SKU distribution based on requirement for each
location. ITC’s strategy to facilitate the push-cart vendors in securing credit at
competitive rates pushes their daily requirement volumes for fruit and vegetables.

CHALLENGES
There is a fair amount of learning and experimentation needed on the horticultural front,
namely: (i) at what temperature must food be preserved; (ii) should there be pre-cooling
immediately, post-harvest, or after some ripening; (iii) should there be natural ripening,
and which fruit or vegetables require what kind of management. Lastly, the APMC Act is
a big hurdle, particularly in the direct procurement format.

30
 FUTURE PLANS
ITC plans to open 140 Choupal Fresh across 54 cities at an investment of Rs. 8
billion.

KEY TAKEAWAYS
Leveraged on IT, ITC enabled a unique business platform to directly integrate
backwards with the source of supply that is the farmers. The company not only
optimized efficiencies in the procurement chain for export markets but also created a
market place for rural retailing in the domestic market. Choupal Fresh is a fresh produce
cash-and-carry format catering to organized retailers, push-cart vendors, traditional
retailers and regular customers in the domestic markets. ITC leverages in backward
linkages through agricultural extension services and strategic partnerships for handling
temperature control technologies and logistics support.

SPENCER’S RETAIL
RPG Enterprise was established in 1979 by Mr. R P Goenka. The company’s business
interests span seven business sectors: auto-tyre, power, telecommunication,
technology, entertainment, construction and maintenance, and retail. In 1989, RPG
ventured into retailing by acquiring Spencer’s & Co, a specialty store chain offering
high-priced imported items, predominantly to the expatriate community in India since
1863. In 1996, RPG’s Spencer’s & Co launched the FoodWorld division. Later, in 1999
the FoodWorld division spun off as FoodWorld Supermarkets Ltd. under 49 per cent
joint venture share from Dairy Farm International (DFI) of the Jardine Matheson Group.
Eventually, in 2005, RPG Spencer’s and DFI decided to go separate ways. Spencer’s
inherited 49 of the 93 FoodWorld stores. Additionally, in 2001, RPG independently
forayed into the retail business by floating the “Great Wholesale Company” and
launched the Giant hypermarket. Today, RPG Retail consists of Music World, RPG
Cellucom, Books and Beyond, and Spencer’s as its subsidiaries. Initially, Spencer’s
business model followed the acquisition route to take advantage of Spencer’s & Co’s
elite brand name and front-end property in Chennai and Bangalore. Later, it went in for
international joint venture to leverage on the technical know-how of retail operations.
Now, the company is independently building a pyramidal retail chain for cost benefits in
back-end procurement. With a capital investment of Rs. 3,000 million across multiple
formats in 2006, RPG Spencer’s generated direct sales turnover of Rs. 5,400 million
and accounted for direct employment of nearly 7,700 people. Additionally, the company
indirectly creates employment through 24manufacturers producing its private label and
around 300 concessionaire unit tieupsworking on a contractual basis.In 1996, Spencer’s
Retail reopened its first store in Chennai consisting of an area of 20,000 sq. ft, offering a
complete gamut of food products and household durables. By 2000, RPG Spencer’s
and DFI joint venture consisted of 93 FoodWorld stores and 9 Spencer’s & Co retail
chain in Chennai and Bangalore and one hyper store.

31
Later in 2005, the 49 FoodWorld stores where rechristened as Spencer’s Daily and
Giant was renamed as Spencer’s Hyper. Today, the company consists of 125 stores
covering a total area of 700,000 sq. ft. spreading across 25 cities, including Hyderabad,
Vishakapatanam, Bangalore, Mumbai, Aurangabad, Pune, Ghaziabad, Delhi,
Faridabad, Kochi, and Thiruvananthapuram. In 2006-07, Spencer’s retail division
reported a sales turnover of Rs. 5,400 million. Although, the company’s net sales
increased between 2005 and 2006, however, the per sq. ft. sales declined from Rs.
10,370 to Rs 7,714 indicating an expansion in total sq. ft. area and number of stores.
Spencer’s represented 0.9 per cent of market share of the total organized retail in
2006.In the one-stop shopping model,Spencer’s differentiates itself on: quality,
assortment of imported food products, and shopping experience. Leveraging on the
high- quality imported goods perception that was attached to the old Spencer’s & Co.
brand name, Spencer’s business strategy focuses on an array of food products and
activities spanning intercontinental and domestic culinary, beverages,and chef
demonstrations on specialty food. To meet the different time-bound needs of its
customers, Spencer’s follows the “duck and duckling” (pyramidal) strategy for its retail
expansion: a small set of destination stores, Spencer’s Hyper, followed by the
supermarket format, Spencer’s Daily, and a larger set of convenience store format,
Spencer’s Express and Fresh, are located close to residential neighbourhoods. The
convenient store format also caters for home delivery services to its customers.

END-TO-END VALUE CHAIN

The company incorporates the cluster approach in its “hub-and-spoke” business model
to gain economies of scale in sourcing, logistics, and promotional activities around its
multiple retail formats. Each state is more or less regarded as a clusterconsisting of a
small set of hyper, in between supermarket format stores, and a larger set of express
stores. The spread of stores serves as spokes to a single distribution centre, the hub.
Each hub also functions as a central point to a number of repackaging centres, and
collection centres in the cluster region.

PENETRATION IN KEY MARKETS

Spencer’s expansion model is based on the pyramid approach, where Spencer’s Hyper
is the backbone store. At the next stage is Spencer’s Daily, which is a mix of the
supermarket and convenience store format. And, finally at the bottom are the Spencer’s
Express and Fresh stores of the convenience format, located in the residential
neighborhood. The hypermarkets are a few destination stores located in the suburban
areas of cities.

32
 PRODUCT MIX
Based on the perception of high-quality imported goods that was attached to the old
Spencer’s & Co brand name, Spencer’s differentiates on high-quality food assortment.
Overall, across all formats, 30 per cent of the food is specialty food, other 30 per cent is
imported food products, and the rest is regular domestic food. In the hypermarket
segment, 45 per cent of the merchandize is equally distributed across garments,
electronic goods, and other white goods. The rest 55 per cent consist of FMCG, staples,
and fruit and vegetables. On the other hand, an average Spencer’s Daily store contains
a higher share of FMCG products, staples, fruit and vegetables, and some general
merchandize. An Express store consists of fruit and vegetables, bakery and chilled and
dairy products. However, the Spencer’s Express product mix differentiates from the
regular kirana stores because it is a mixture of imported, intercontinental, and domestic
food products. In order to expand on the assortment of food products under the
Spencer’s banner in hyper and superstore formats, the Spencer’s strategy includes
concessionaire contracts with food chains known in their respective region, such as
Flurys (the Swiss Confectionary) and Ganguram sweets in Kolkata, Nirula’s in Delhi,
Rajasthani chat concessionaire in Mumbai, and meat and fish and coffee
concessionaires in Kerala. On an average, a hypermarket would consist of around 10-
15 concessionaires, while a super or daily consist of two concessionaires. Spencer’s
has also tied up with “Life Skill” to roll out pharmaceutical products across Spencer’s
hyper stores in the south. Although Spencer’s has a separate subsidiary Cellucom for
mobile phone retailing, however, the hypermarket format contains around 5 per cent
mobile phones. Spencer’s keeps a mix of private and branded labels in the FMCG,
staples, and clothing in its hypermarket.

PRODUCT PROCUREMENT
Spencer’s works on a “hub-and-spoke” model for its procurement and distribution of
goods in its respective cluster. There are around 13 hub distribution centres across
states and nearly an equal number of collection centres across the country. The
repackaging centres are around 5-6 considering that Spencer’s does not carry a large
number of private labels. The suppliers deliver the goods to either the collection centre/
consolidation centre or distribution centre depending upon the product category. The
procurement of goods is directly from the manufacturers if the volume is large; however,
if the volume is not big in a given cluster, the distributor’s channel is used. For fruit and
vegetables, it is generally a mix of direct procurement from farmers and the APMC
markets. Fruit and vegetables are supplied to the collection centre in the region where
they are sorted, cleaned, and graded. The following day by early morning at 6.00 am,
fruit and vegetables are transported to the stores from the collection centre. Fruit-
specific collection centres may feed into multiple clusters.

33
For example, the Hoskote consolidation centre distributes to Kerala, Tamil Nadu,
Bangalore, Vishakapatanam and Hyderabad. All bakery, chilled and frozen food
products are supplied directly by suppliers to the respective outlets in the region. FMCG
products are proccured from branded large suppliers in direct contract terms. Large
suppliers supply the goods from there depots directly to the hub distribution centre in
the respective cluster. However, for small volume orders in certain clusters, it is the
local distributor who provides branded goods. In the case of staple food, Spencer’s
primarily keeps private label products, thereby the miller or food processor directly
supplies the goods to the re-packaging centre in gunny bags. At the repackaging centre,
it is re-packed in Spencer’s packing and sent to the distribution centre in th region. In
branded packaged food products, Spencer’s has a direct procurement contract with the
large manufacturers or suppliers. All imported food products are procured in bulk from
the consolidators, who in return take the responsibility of procuring directly from
manufacturers abroad, customs handling, and, delivering to the distribution centre.
Mobiles are generally procured via distributors. The procurement office at the hub
distribution centre manages the inventory through auto-replenishment tools. Based on
the sales pattern at the store level, stock depletion occurs at the store and the
distribution hub automatically generates the stock order. The corporate office controls
vendor selection, rates, and contracts. However, day-today purchase orders are made
at the regional hub level. Spencer’s is half way through in implementation of SAP retail
for integrating the back end and front end for inventory control. It is already using certain
micro-level applications, such as point of sale, and bar code based billing (automates
the billing system). So far, the company has invested nearly Rs. 300 million in IT. For
operation and maintenance of its IT systems, Spencer’s employs approximately 5-6 IT
engineers. Spencer’s manages its own logistics across all the stores through 19
dedicated third party contracts. All procured fruit and vegetables reach the collection
centres in trucks and from there they are transported to the stores by tempos.

PRICING STRATEGY
Considering its focus on food products, where margins are low, Spencer’s pricing
across multiple food products is similar to the price available in the market. But,
Spencer’s attempts to capitalize on the purchase of the balance 10 per cent of
differentiated imported and specialty food products of its customer basket. Additionally,
the company is also building its positioning to maximize its margin on differentiated
general merchandize products in the electronics, plastic goods, and ceramic product
categories. In the case of fresh food and vegetables, pricing is standardized daily based
on the APMC market pricing. Spencer’s gains around 10-15 per cent margin on fruit and
vegetables. In FMCG products, the gain is generally between 18 per cent and 20 per
cent. In the hypermarket format, branded FMCG products are sold at 15-18 per cent
margin because FMCG products are discounted nearly 2-3 per cent lower than the MRP
price. In staples, private labels are priced between 5 per cent and 10 per cent cheaper

34
than the branded labels. In the case of private label clothing, the maximum gain is
around 50-60 per cent, but private labels are priced around 20-30 per cent lower than
the branded labels which have an overall 30 per cent margin. Separate spaces are sold
to external brands and products are placed on shelves by keeping their popularity and
publicity in mind. Competing brands are kept side by side. SKUs that are bought on a
regular basis are kept on the right hand side, the reason being that most people are
right handed and the eye movement goes from right to left. Fruit and vegetables are
kept in the first part of the store because of its volume and to attract customers.
Spencer’s retail has tied up with TAG Media Network Inc. for in-store advertisement on
its products and sales promotions across all Spencer’s stores. Globally, in-store
television is believed to have contributed to a 10-20 per cent lift in sales. Additionally,
the company leverages on commission based revenue and customer footfalls by
leasing the store space to concessionaires.

FUTURE PLANS
RPG Group plans to invest around Rs. 25 billion in its retail venture between now and
2011 in two phases. In the first phase of its expansion up to 2009, the company plans to
expand nearly 1,000 stores across formats with an investment of Rs. 11 billion. Also,
RPG Spencer’s is planning a public issue in the next 12 months and expects to create
around 10,000 jobs.

CHALLENGES
The transport infrastructure, interstate movement of goods, real estate, and central
sales taxation are the hurdles in creating a centralized distribution structure for
maximum operational efficiencies. Octroi duty payments further delay timely movement
of goods from one city to another city.

KEY TAKEAWAYS

The company differentiates itself through its specialty food assortment across domestic
and imported food products, thus targeting the socio-economic class A and B
customers’ needs.

35
 AN EXCLUSIVE SWOT ANALYSIS
STRENGTH
 GOOD QUALITY OF PRODUCTS AND SERVICES.
 STORE ENVIRONMENT IS CLEAN AND HYGENIC
AND AMICABLE.
 ADEQUATE CUSTOMER BASE.
 STRONG SUPPLY CHAIN MANAGEMENT.
 CUSTOMER RELATIONSHIP MANAGEMENT AND
GIVING VALUE ADDED TO CUSTOMERS.
OPPORTUNITIES
 STRONG EMERGING MARKET.
 IMPROVEMENT OF PRODUCT LENGTH &
BREADTH.
 HIGHER BUYING POTENTIAL OF PEOPLE IN
ORISSA.
36
WEAKNESS
 LACK OF PROPER RANGE OF PRODUCTS AND
LESS SKU.
 IT CANNOT CATER TO THE NEED OF
CATCHMENT AREA ACCORDING TO THE
DEMOGRAPHIC.
 POINT OF SALE CONSUMES LOTS OF TIME.
 IMPROPER UTILISATION OF HUMAN
RESOURCE.
 TRAINING OF CSA’S DEMANDS FLAWLESS
EXECUTION.
THREATS
 IMPULSE ITEMS LIKE ACCESSORIES GIVEN BY
COMPETITORS LIKE SPENCER’S FOR LADY
CUSTOMERS.
 EMPLOYEE TURNOVER.
 ENTRY OF NEW COMPETITORS.
Increasing footfalls by analyzing
consumer buying behavior and other
strategies
Reading consumer’s mind
Now when it is essential to bolster confidence in the working of the market, more than
ever, is the time to have a peck into the customer ‘s mind .It is near- impossilble to
figure out even in the best of times of the rationale of his choice of one product, service
or vendor over another . sometimes he behaves as if he is moved by the herd instincts;
sometimes he acts the contrarian, swimming against the current. He may patronize a
shop others pass by, and vice-versa. Sometimes he is an individualist , at other times
he is a conformist. He will be what he has always been- a mystery.

No psychologist or sociologist and no market survey, however diligently carried out ,

can assert with certitude what weighs on a consumer’s mind when he sets out to make
a purchase . Is it price, quality after -sales service , brand name, packaging , design ,
freebies ,keeping up with the Joneses , backing by favourite film star and cricketer
,familiarity , habit, trust, friendly welcome, distance, prompt attention to complaints,
ambience, or what? If only the advertisers could put a finger on it , they would mind
millions!

Difficult to typecast
A high-end product ,say a blackberry , a camera or a flat TV may be entirely out of his
reckoning for years, but suddenly , he takes off to bring one back home , even though
his family , career or financial circumstances may have been the same or similar all that
time.

Cultural characteristics to determine the consumer’s responses. A product named after

,say , Ravan or Judas , is sure to be shunned. Often , the puzzlement of others over
consumer behavior is matched by consumer’s own inability to decipher with precision
his motivations and impulses . In short, inscrutability and unpredictability of the
consumer’s mind stymie all attempts to typecast it.

37
Notwithstanding all these mystifying features, even the closest approximation to
knowing how the consumer’s mind works is of vital importance to business because the
bottom line hinges on it. Researchers are hard at work refining their methodologies and
fashioning models to get as near the truth as possible.

Choice modeling method

One such technique that has shown great promise is known as consumer choice
modeling developed by Daniel McFadden , who won the 2000 Nobel Prize in economics
.By pressing into service all the tools and facilities of information technology and
advances in statistical analysis and interpretation , users of the technique have been
able to make a reasonable prediction of consumer behavior in the matter of mobile
phones ,automobiles and hybrid electric vehicles.

From what one is able to gather from an article published in the strategy+business of
November 11, the model holds great possibilities. The claim made for it is alluring:”……

Consumer choice modeling is ideally suited for analysis of the most complex consumer
decision processes and that it yields valuable insights for demand-driven strategy
development by providing customer value segmentation maps, measuring market share
impact of new product-service combinations, and assessing overall brand equity.

Perhaps most important, choice modeling can reveal salient differences between
manager’s beliefs about customer’s needs and preferences and customer’s actual
needs and preferences. For managers seeking reliable feedback on how customers
view their products and services, consumer choice modeling provides a rigorous way to
turn customer –driven feedback into profitable and sustainable for retaining or capturing
market share.

In any event, the time is not far off when business decision and market strategies will no
longer be a matter of playing blind man’s bluff with the customer. Consumer mind
mapping would have widely come into vogue, helping producers and providers of goods
and services to ascertain his preferences and requirements, and direct their
investments and operations accordingly.

In today’s evolving marketplace, retailer face a “world of extremes” characterized by

unprecedented complexity, intense competition and market polarization. Customers are
increasingly demanding relevant value propositions that meet their individual needs and
preferences and will seek out those retailers able to provide them.

38
Driving innovation through deeper insight
To succeed in this world, retailers need to craft and execute upon a truly customer
centric value proposition that addresses the needs of their target customers. The first
step is to embrace and understand today’s shoppers and how their needs are evolving.

Recalling our first megatrend, customer’s value drivers are inherently multidimensional
and getting more complex all the time. Traditional classifications (largely based on
demographic characteristics) are increasingly inadequate to accurately predict whether
and to what degree new retail initiatives will succeed in generating the desired customer
response. Retailers need to develop deeper customer insights through more
sophisticated approaches to segmentation and innovative analytical models.

There are various other ways by which we can increase footfalls at our stores. We can
engage various customer loyalty programs in order to attract customers. As we have
already introduced reliance one card to our loyal customers where they get redemption
points.

Encourage customer frequency

Multiple points awarded for repetitive visits to encourage customer frequency during the
promotion period.

Increase customers spend

Reward customers based on the minimum purchase amount or total spend.

Drive customer activity

Encourage high customer activity at specific stores during special campaign periods.

Reduce customer update costs

Inform customers of multiplied points earned directly on their receipts.


Understand customer activity

Summary reports help you understand customer level, spend and location activity.

Moreover in order to attract customers and to make customers to enter the store it is
important to get the store ready in terms of :

39
Interior design

a) The use of colors for walls, panels etc- its important to study what color denotes
what, and effects they create.

b) The ambience that it creates

C) the “ambassador” for the store. As we are dealing with a convenient format we may
not focus on hiring an ambassador but according to me it may help to create an effect
as there is emerging competition in this format sector

d) Location of the store- high street, neighborhoods.

e) Quality of service in the store- salesperson etc.

Based on the strategies we can analyze certain things in regular intervals like

 Where is our store now in terms of footfalls?

 Where do we want to reach in terms of footfalls in x period of time?

Now we need to set up a clear cut objective, e.g. My store would increase the footfalls
from 20 per day to 30 per day in two months. Analyze the parameters given above to
find out where the weaknesses are and correcting what would enable you to reach the
objective eg

 Is the store is low on awareness, we can try some marketing promotions like
events, freebies etc.
 If repeat purchase is low, we can try some kind of a loyalty programs.
 If service quality is low, we can beef it up.

PROMOTIONS
these are yet another way to increase footfalls at the stores.
First of all, we need to plan to find out what our competitor's prices are on same or
similar popular items and the current promotions they are running and BEAT them.
Even if it means taking a hit on the mark-up. We can advertise something attractive
offer. Also, the utilization of a frequent customer card, such as a punch hole or stamp
that will reward the customer with an exclusive item for free is a good incentive for
customer retention. SOME business is better than No business.

40
Whatever tactics we choose to adopt, we will have to measure our progress by tracking
the following on a daily basis

1. No. of walkins daily

2. No. of conversions
3. Average value of bills
4. Total sales on a daily basis

Increasing trend of walkins is a sure sign of success. Increased conversion % and

increased bill value over a period of time indicates that more repeat purchase is
happening because consumers are happy with what our store offers. This is a sure shot
remedy to increase walkins .

41
COMPLETE ANALYSIS OF RELIANCE
FRESH STORE
SAHEED NAGAR
1)How would you describe your family?

a) Nuclear Family b) Joint Family

NATURE OF CUSTOMERS FAMILY AT RELIANCE

FRESH
NUCLEAR FAMILY JOINT FAMILY

40%

60%

As the statiscs shows 60% of customers belongs to nuclear family and 40% from joint
family. Since nuclear family is dominating in this case the buying behaviour of these
customers differs from the ones who belongs to joint family. So, the store should take
into their consideration and should cater the needs of those customers. We can say that
those staying in joint families will be more interested in buying staples and fruits and
vegetables and they will also buy in bulk whereas those belonging to nuclear families
may not buy in bulk.

42
 2) What is the average income of your family?
a) 1 lakhs b) 1-3 lakhs c) 3-5 lakhs d) 5 lakhs & above

AVERAGE ANNUAL INCOME OF CUSTOMERS AT

RELIANCE FRESH
1 LAKHS 1-3 LAKHS 3-5 LAKHS 5 LAKHS & ABOVE

0%
10%

50%
40%

The statistics in the above diagram suggests that about 80% of our customers
belongs to middle-class and upper middle class families whose average annual
income ranges from 1-3 lacs to 3- 5 lacs. This act as a deciding factor for their
purchasing power. Moreover 10% of customers belong to upper class families.
Keeping this in mind, the store can ensure to make more revenue through selling
luxurious products along with other regular products that we offer to our customers
as these customers will have a higher purchasing power which we need to trap. We
need to keep products which will meet their needs and wants.

43
 3) How much do you keep aside for groceries every month?
a) 1000-2000 b) 2000-3000 c) 3000-4000 d) 4000 & above

BUDGET FOR GROCERIES

1000-2000 2000-3000 3000-4000 4000 & ABOVE
1000-2000 -0%

20%

50%

30%

As the graph rightly displays that groceries provides a major share of revenue to
this store as 80% of our customers keep aside budget of 2000 and above for
groceries taking this as a oppurtunity, we can focus on this category to enhance
the sale. But at the same time we should not neglect the fact that this area has also
got inhabitants belonging to upper middle class families from them the store can
also expect cross selling.We need to provide our customers with a wide range of
products in terms with groceries.We need to give them a wide range to choose from
so that they also enjoy their shopping in our store.

44
 4) How often do you visit RELIANCE FRESH STORE?

a) Once a week b) once in 15 days c) once a month d) any other

FREQUENCY OF VISIT TO STORES AT

RELIANCE FRESH
ONCE A WEEK ONCE IN 15 DAYS ONCE A MONTH ANY OTHER

ANY OTHER -0%

20% 30%

50%

since this store is located in the heart of the city, the customers staying over here
can frequently visit the store for their daily requirements. but as per the result of
this survey, 50% of customers visits the store once in 15 days. this clearly shows
that this store lacks visibility and awareness among the customers. so, the store
needs to have proper landmarks and signboards directing the way to the store, for
it to gain proper recognition .this would also increase the footfalls as because
proper promotions will attract more and more customers.moreover we can use
mediums like radio and local channels to advertise about our special weekend offers
and other discounts and programs in order to attract customers.

45
5) What kind of products do you prefer to buy at RELIANCE FRESH STORE?

a) Fruits& vegetables b) FMCGs c) Dairy products d) Staples e) Any other

CUSTOMER PREFERENCE AT RELIANCE FRESH

FRUITS & VEGETABLES FMCGs DAIRY PRODUCTS STAPLES OTHER
OTHER -0%

15%
30%

5%
50%

The statistics gives us a record that the sales of fmcgs is higher than that of other
products and offerings as we see that 50% of buyers prefers fmcgs followed by 30% of
buyers prefering staples. This ensures that the store has already well positioned the
fmcgs and staples in the customer mind. This survey picturises that only 15%
customers prefers to buy fruits & vegetables for which reliance fresh was initially known.
So, the store needs to concentrate on improving the quality of fruits & vegetables
inorder to boost its sales in future.we also need to keep a strong assortment of other
products that we generally offer to our customers so that we can meet withtheir needs
and demands.

46
6) How would you rate service provided to you in RELIANCE FRESH STORE?

a) Excellent b) Good c) Average d) Poor

SERVICE RATING AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

POOR -0%

20% 10%

70%

As according to the displayed graph 70% of customers rated our store’s srevice as
“good”. But still the store needs to give more emphasis on eradicating the loopholes in it
s system so that we can convert the “good” to “excellent”. For this we need to engage
various kinds of activities in side the stores with respect to many things.we need to keep
training and updating our csa’s with changing buying behavior of our customers with
time .we need to understand the needs and wants of our customers in a more magnified
manner so that we can serve them in the best way we can.we also need to conduct a
survey in regular intervals to know whether our customers are satisfied with the way we
serve them.this will make them feel that they are a part of our business and operation
and that their opinions are vital for our success.

47
7) Please rate RELIANCE FRESH STORES on the below mentioned parameters:

PRODUCT RANGE: a) Excellent b) Good c) Average d) poor

PRODUCT RANGE AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

5% 10%

35%
50%

Product range or no. Of skus determines the success of the store. As in accordance to
the result of this survey, 50% of customers rated us “ average “ with respect to our
product range. Moreover there are 35% of our customers who have rated us “good”for
our product range.this point may have great impact on no. Of footfalls.therefore the
store needs to focus on increasing the no. Of sku’s in order to meet the ever- rising
demands of the customers.we need to keep a diversified range of products,we need to
provide customers with a broad section to choose from.we need to keep ourself up –to-
date with the products.we need to keep a wider assortments of products inorder to offer
to our customers.this would give our customers a positive impression about our stores.

48
STORE ENVIRONMENT: a) Excellent b) Good c) Average d) poor

STORE ENVIRONMENT AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

POOR -0% AVERAGE -0%

20%

80%

Again looking at the statistics we see that the store environment is been rated “good” by
most of the customers. This shows that we are yet to achieve the rest 20% for reaching
absolute success.we can change the look and interiors of our store to make it more
attractive.we need to train our csa’s to behave in a more refined manner with our
customers.we also need to check the “pos” area that is we need to make fast the billing
works so that we don’t consume a major time of our customers.we also need to make
sure that the music that is being played inside the store is soothing to the customers
rather than causing them irritation.all these things will ensure that our customers will
enjoy their visit to our store.

49
STORE ACCESIBILITY: a) Excellent b) Good c) Average d) poor

STORE ACCESIBILITY AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

POOR -0%

10% 20%

70%

Looking at the statistics in the above graph we see that about 70% of our customers
have rated us “good” in relation to the store’s accesibility.we may deduce from the
above graph that most of our customers find it convenient to access our store whenever
they require with much comfort and ease.this is one of the major strength.we also see
that there are 20% who have rated us”excellent” in this regard.but still we need to keep
pace with time and we also need to emphasis on the factors and ways by which we can
increase our customers base.

50
PRICING PATTERN: a) Excellent b) Good c) Average d) poor

PRICING PATTERN AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

POOR -0%

20%
30%

50%

Pricing pattern, is one of the tools for promoting the store and to differentiate it from its
competitors . As per the statistics given by this survey, 50% of customers rated us “
good” in terms with our pricing pattern. But at the same time, the store needs to realise
that some of the customers are not satisfied with the pricing pattern of the store which
may harms the store in future and will give an upper edge to our competitors.therefore
we need to keep a track of the prices and the pricing pattern of our competitors and
accordingly we need to decide on our pricing pattern for our products, we need to try
our best to serve our customers in the best possible way we can.

51
8) Do you think discounts and offers can attract customers?

a) Yes b) No

OFFERS & DISCOUNTS TO ATTRACT CUSTOMERS AT

RELIANCE FRESH
YES NO

NO -0%

100%

It is quite clear from the graph that all our customers like discounts and promotions and
want them everytime.we can take this point and we can use it inorder to increase our
footfalls and to attract more customers.we need to engage in more and more activities
where we can offer our customers with similar kinds of discounts and offerings.this
activities are also needed to be informed to the customers through correct medium in
correct time so that they can take the maximum advantage from it.

52
9) What kind of promotions & offers do you like most?

a) Price discount b) volume discount c) Buy 1 Get 1 free d) Others

PREFERABLE PROMOTIONS & OFFERS AT RELINACE

FRESH
PRICE DISCOUNT VOLUME DISCOUNT BUY 1 GET 1 FREE OTHERS

OTHERS -0%

40%
50%

10%

As the statistics shows, we see that 50% of our customers prefer price discounts we
need to increase this promotion and should also concentrate on similar other kinds of
promotions that will attract the customers on regular basis.we see that there are again
40%of customers who also prefer buy 1 and get 1 free.this is supposed to be the next
favourite of our customers.therefore we need to try and introduce similar kinds of
promotions and offerings to our customers.

53
 KAPLANA STORE

1) How would you describe your family?

b) Nuclear Family b) Joint Family

NATURE OF CUSTOMERS FAMILY AT RELIANCE

FRESH
NUCLEAR FAMILY JOINT FAMILY

45%
55%

As we see that there are 45% of customers who belongs to joint family and
55% of customers belongs to nuclear family ,we can say that the store
needs to give emphasis on the buying needs of the customers belonging to
both nuclear family and joint family. We need to analyse their buying
behavior individually in order to meet their needs perfectly. We can say that
those staying in joint families will be more interested in buying staples and
fruits and vegetables and they will also buy in bulk whereas those belonging
of nuclear families those may not buy in bulk.

54
 2) What is the average income of your family?
b) 1 lakhs b) 1-3 lakhs c) 3-5 lakhs d) 5 lakhs & above

AVERAGE ANNUAL INCOME

A B C D

5%
15% 25%

55%

As the statistics speaks ,it is evident that most of our customers in this area
belongs to middle class or lower middle class families as 55% of our
customers have an annual income of about 3 lacs whereas other 25% have
an annual income of about 1 lac. There are only 20% customers in total who
have an income of more than 3lac and above 5lac.therefore we need to keep
the products in our store according to this data.we cannot keep luxurious
products or costly products. Rather our range of products needs to be such
that it meets the requirements of our customers in this area.

55
 3) How much do you keep aside for groceries every month?
b) 1000-2000 b) 2000-3000 c) 3000-4000 d) 4000 & above

BUDGET FOR GROCERIES

A B C D

10% 15%

40%
35%

As the statistics shows a response,where we see that the budget kept aside
for groceries ranges from rs 2000-4000,we can say that, this is a
considerable amount.we need to emphasis on the offerings of our store with
regards to grocery items.we need to attract more and more customers to
buy from our stores by providing various promotions and discounts on these
items and also by keeping a diverse range of products to meet all their
demands.

56
 4) How often do you visit RELIANCE FRESH STORE?

b) Once a week b) once in 15 days c) once a month d) any other

FREQUENCY OF VISIT TO RELIANCE FRESH STORE

A B C D

10%
25%

25%

40%

We see here that there are 40% of customers who visit our stores once in 15
days and there are 25% of customers who visit our store once in a month
.this may be due to various reasons. We need to analyze the problems faced
by our customers and we also need to engage in various creative activities in
order to increase our footfalls and to retain it.

5) What kind of products do you prefer to buy at RELIANCE FRESH STORE?

57
 a) Fruits & vegetables b) FMCGs c) Daily Products d) Staples e) Any other.

CUSTOMER PREFERENCES AT RELIANCE FRESH

A B C D E

0%

10%

40%
25%

25%

As the statistics suggests that there are about 65%of our customers who
prefers to buy daily products and staples from our store, therefore we need
to keep up to date with the availability of these products. We also need to
improve the quality of our fruits and vegetables and we need to display them
more creatively in order to increase their sales along with that of FMCG
products.

58
6) How would you rate service provided to you in RELIANCE FRESH STORE?

a) Excellent b) Good c) Average d) Poor

SERVICE RATING AT RELIANCE FRESH

A B C D

20% 10%

35%

35%

Statistics suggests in this case that we need to improve our services towards
the customers as about 35% of our customers have rated as “good” whereas
other 35% have rated us as “average”. To provide the excellent service we
need to focus on certain points like training our csa’s in particular intervals
and we also need to fast the service at the pos.

59
 7) Please rate RELIANCE FRESH on the below mentioned parameters?

I. Product Range: a. Excellent b. Good c. Average d. Poor

PRODUCT RANGE AT RELIANCE FRESH

5%
20%

35%
A
B
C
40%
D

The statistics clearly shows that there are 40% of customers who have rated
us “average”as far as our products range is concerned.this states that we
need to keep a large assortment of products for our customers inorder to
meet their demands.we need to keep up pace with ever-changing buying
behavior of our customers.

60
STORE ENVIRONMENT: a) Excellent b) Good c) Average d) poor

STORE ENVIRONMENT AT RELIANCE FRESH

A B C D

10%
20%

20%

50%

We see here as the statistics suggests that there are 20% of customers who
are highly satisfied with our store environment and ambience as they have
rated us as “excellent”. And there are about 50% of our customers who have
rated us “good” shows that they are considerably satisfied with our store’s
environment. But still there are about 30% of our customers who have rated
us “average” or “poor”. As we grow with time we need to find out our
loopholes in order to satisfy our customers to the fullest. There are certain
dissatisfactions showed by the customers with to relation to the “POS”
counters which is needed to be checked as this is emerging as one of the
major problem and also affecting our sales.

61
STORE ACCESIBILITY: a) Excellent b) Good c) Average d) poor

STORE ACCESSIBILITY AT RELIANCE FRESH

A B C D

10% 20%

25%

45%

Statistics says that there are 45% of our customers who have rated us
“good” in terms with store accessibility. Though we have an average number
showing that we are accessible we still need to emphasis more on promoting
our reliance fresh stores as there are about 35% of our customers who are
not satisfied by our store we can check this by displaying our signboards and
by providing proper signboards for the convenience of our customers. By
doing this we may also expect positively to increase our footfalls.

62
PRICING PATTERN: a) Excellent b) Good c) Average d) poor

PRICING PATTERN AT RELIANCE FRESH

A B C D

10% 10%

25%

55%

We see here that there are 55% of our customers who says that we have a
fairly good pattern for pricing our products and they are satisfied. We have
again 10% of our customers who highly support us in this regard as they
have rated us “excellent”. But we need to concentrate on the rest 35% of
our customers and we need to find out about their concerns regarding our
pricing pattern and we need to satisfy them.

63
8) Do you think discounts and offers can attract customers?

a) Yes b) No

OFFERS & DISCOUNTS TO ATTRACT CUSTOMERS

A B

0%
0%

100%

It is quite clear from the graph that all our customers like discounts and
promotions and wants them every time. We can take this point and we can
use it in order to increase our footfalls and to attract more customers.

64
9) What kind of promotions & offers do you like most?

a) Price discount b) volume discount c) Buy 1 Get 1 free d) Others

PREFEREBLE PROMOTION & OFFERS AT RELINCE

FRESH
A B C D

0%

25%

10%
65%

The graph here suggests that most of our customers prefers discounts in
price in comparison to other promotions and offers like volume discounts or
buy 1 get 1 free offers though they are wanted by 35% of our customers but
about 65% of our customers prefers price discounts and agrees that this
offer attract them the most. Therefore we need to introduce similar offers
that would attract our customers.

UNIT- IV

65
 1) How would you describe your family?
c) Nuclear Family b) Joint Family

NATURE OF CUSTOMERS FAMILY

NUCLEAR FAMILY JOINT FAMILY

35%

65%

RELIANCE FRESH STORE, UNIT- IV holds 65% of customers are from joint
family and 35% of customers are from nuclear family. As per the survey
analysis, joint family is comparitively dominating with the nuclear family.
Moreover the purchasing power of customers who are from joint family is
high. This ensures that the store can make more revenue from tose
customers. So, the store needs to give more focus on those customers by
giving special offers but at the same time the store needs to ensure that the
customers are from nuclear family also important. From this, the store can
expect more sale.

66
 2) What is the average income of your family?
c) 1 lakhs b) 1-3 lakhs c) 3-5 lakhs d) 5 lakhs & above

AVERAGE ANNUAL INCOME

1 LAKHS 1-3 LAKHS 3-5 LAKHS 5 LAKHS & ABOVE

10%
20%
15%

55%

Since 55% of customers are from middle- class family whose income level
ranges from 1-3 lakhs. Moreover, this store holds all class of customers
whose income level ranges from different levels. So, the store should take
into consideration of the customers need and demand.

67
 3) How much do you keep aside for groceries every month?
c) 1000-2000 b) 2000-3000 c) 3000-4000 d) 4000 & above

BUDGET FOR GROCERIES

1000-2000 2000-3000 3000-4000 4000 & ABOVE

15% 10%

25%

50%

As we already said that this store holds all kind of customers whose income
level falls in all categories. It reflects on this chart also, 50% of customers
are spending 2000-3000 every month for groceries. But at the same time,
we can see that the chart evenly scatters on all categories. So, the store
should keenly involve in imrpoving the sale by satisfying the need of the
customers.

68
 4) How often do you visit RELIANCE FRESH STORE?

c) Once a week b) once in 15 days c) once a month d) any other

FREQUENCY VISIT TO STORE

ONCE A WEEK ONCE IN 15 DAYS ONCE A MONTH ANY OTHER

10%
35%
25%

30%

Generally every customer behaviour differs from others. This clearly reflects
on this store. As per this survey, 35% of customers are visiting the store
once a week followed by 30% of customers visiting this store once in 15
days. This ensures that the store holds their regular footfall from different
categories of customers. So, the store should give a proper service to the
customers inorder to maintain the same level of visiting frequency from the
customers.

69
5) What kind of products do you prefer to buy at RELIANCE FRESH STORE?

a) Fruits& vegetables b) FMCGs c) Dairy products d) Staples e) Any other

CUSTOMER PREFERENCE AT RELIANCE FRESH

FRUITS & VEGETABLES FMCGs DAIRY PRODUCTS STAPLES ANY OTHER
ANY OTHER -0%

25%
40%

15%

20%

Very interestingly, this stores gains more customers whose preference falls
on the category of FRUITS & VEGETABLES. This survey shows that 40% of
customers whose prefer F&V from this store. Moreover, the preference of
customers varies from all the customers evenly. So, the store should give
equal importance for all the categories of products and there is a vast
chance for improving CROSS-SELLING because of even distribution.

70
6) How would you rate service provided to you in RELIANCE FRESH STORE?

a) Excellent b) Good c) Average d) Poor

SERVICE RATING AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

POOR -0%

15% 20%

65%

As per this survey, 65% of customers rated the service of the store as “
GOOD” and 20% of customers rated the service of this store as “
EXCELLENT” and 15% of customers rated as “POOR”. This shows that this
stores lagging behind to provide excellent service to the customers. So, the
store needs to put more focus on giving better service to the customers.

71
7) Please rate RELIANCE FRESH STORES on the below mentioned parameters:

PRODUCT RANGE: a) Excellent b) Good c) Average d) poor

PRODUCT RANGE AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

10% 15%

30%
45%

As per the survey, 45% of customers rated the product range of this store
as “AVERAGE”, 30% of customers rated as “GOOD”, 15% of customers rated
as”EXCELLENT” and 10% of customers rated as “POOR”. This shows that this
store is lagging behind in maintaing product range. So,, the stores needs to
give more concentration on the improvement of product range by adding
more products on same categories or by adding different categories of
products.

72
STORE ENVIRONMENT: a) Excellent b) Good c) Average d) poor

STORE ENVIRONMENT AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

POOR -0%

20% 25%

55%

STORE ENVIRONMENT plays a vital role in satisfying the customer

completely. Since if the customer is not comfortable at the time of purchase
due to store environment. It may affect his purchase also.

As per this survey, 55% of customers rated store environment as “GOOD”,

25% of customers rated as “EXCELLENT” and 20% of customers rated as
“AVERAGE”. So, the store needs to maintain the environment to get more
satisfactory grades from the customers. This will boost up the revenue of the
store.

73
STORE ACCESIBILITY: a) Excellent b) Good c) Average d) poor

STORE ACCESSIBILITY AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR
POOR -0%

20%
30%

50%

STORE ACCESSIBILITY refers to simplicity in choosing the products inside

the store. As per the survey, 50% of customers rated the store accessibility
as “GOOD”, 30% of customers rated as “EXCELLENT” and 20% of customers
rated as “AVERAGE”. So, the store needs to work out in the planogram in
better way to gain more support from the customers.

74
PRICING PATTERN: a) Excellent b) Good c) Average d) poor

PRICING PATTERN AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

5%
25%
25%

45%

PRICING PATTERN is one of the best tools to differentiate the store from
other competitors. Since now the customers are very much aware about the
pricing of the products. As per this survey, 45% of customers rated the
pricing pattern of this store as “GOOD”, 25% of customers rated as
“AVERAGE” as well as “EXCELLENT” and 5% of customers rated as “POOR”
So, the store needs to give more attention on the proper pricing pattern.

75
8) Do you think discounts and offers can attract customers?

a) Yes b) No

OFFERS & DISCOUNTS TO ATTRACT CUSTOMERS

YES NO

NO -0%

100%

The survey clearly proves that all the customers are attracted by the
promotions and offers. Moreover, this kind of promotions and offers act as
pillar to differntiate with the near competitors as well as it will leads to the
better performance of the store. So, the store neeeds to give more focus on
giving different promotions and ofers frequently in order to postion
themselves in the mind of customers.

76
9) What kind of promotions & offers do you like most?

a) Price discount b) volume discount c) Buy 1 Get 1 free d) Others

PREFERABLE PROMOTIONS & OFFERS AT

RELIANCE FRESH
PRICE DISCOUNT VOLUME DISCOUNT BUY 1 GET 1 FREE OTHERS

OTHERS -0%

25%

15% 60%

There can be different kinds of promotions and offers available to the

customers. But the right kind of promotion and offer should be provide to
the right customers at right time.

This survey data clearly shows that 60% of customers prefer PRICING
DISCOUNT, 25% of customers prefers BUY 1 GET 1 FREE and 15% of
customers prefers VOLUME DISCOUNT. So the store needs to provide pricing
discount to most of the customers as it is clearly visible from the survey
analysis.

77
 LEWIS ROAD

1) How would you describe your family?

d) Nuclear Family b) Joint Family

NATURE OF CUSTOMERS FAMILY

NUCLEAR FAMILY JOINT FAMILY

30%

70%

LEWIS ROAD, one of the well known area in Bhubaneswar where 70%
customers of reliance fresh are from nuclear family and 30% of customers
are from joint family. The buying behavior of the customer from nuclear
family varies from the customers from joint family. So, the store needs to
know the need of customers from different categories. The store can provide
different kind of products as per the need of the customers. For example, a
customer from joint family demands bulk amount of products whereas a
customer from nuclear family demands small amount of products.

78
 2) What is the average income of your family?
d) 1 lakhs b) 1-3 lakhs c) 3-5 lakhs d) 5 lakhs & above

AVERAGE ANNUAL INCOME

A B C D

10% 15%
15%

60%

The data collected from the survey clearly shows that 60% of customers
whose average annual income ranges from 1-3 lakhs followed by 15%, 10%
and 15% of customers whose income level varies from 3-5 lakhs, above 5
lakhs and 1 lakhs respectively. Here most of the customers are from middle
class family. So, the store need to provide products and offers which can
easily reach those middle class customer. In this case, the store can avoid
giving more focus on luxurious products and offers on those products.

79
 3) How much do you keep aside for groceries every month?
d) 1000-2000 b) 2000-3000 c) 3000-4000 d) 4000 & above

BUDGET FOR GROCERIES

A B C D

15% 5%

25%
55%

As we already discussed that this store holds more customers from nuclear
family as well as middle-class families. This shows the reflection on the
buying behavior of the customers. This chart shows that 55% of customers
spend 2000-3000 and 25% of customers spend 3000-4000 every month for
groceries. So, the store needs to focus on improving the sale of groceries
through giving some offers and advertisement.

80
 4) How often do you visit RELIANCE FRESH STORE?

d) Once a week b) once in 15 days c) once a month d) any other

FREQUENCIES OF VISIT TO STORE

A B C D

10%
10%

50%

30%

Since all the reliance fresh stores are perfectly placed in selected areas, the
customers can easily visit to the store and they can purchase their preferred
products easily. This reflects in the survey which shows that 50% of
customers are visiting the stores once a week and 30% of customers visiting
the store once in 15 days. This ensures that this store have footfalls at
constant rate. So, the store needs to focus on customers visiting the stores
once in a month. The store needs to put an effort to convert them to visit
the store once a week. So the store can expect more revenues.

81
5) What kind of products do you prefer to buy at RELIANCE FRESH STORE?

a) Fruits& vegetables b) FMCGs c) Dairy products d) Staples e) Any other

CUSTOMER PREFERENCES AT RELIANCE FRESH

A B C D E

ANY OTHER -0%

24% 18%

29%
29%

The survey shows that 29% of customers prefer FMCGs and Dairy products
followed by 24% of customers prefer staples and 18% of customers prefer
fruits& vegetables. This shows that this store holds customers for all the
products. In other words, the customers prefer all the products evenly. So,
the store got an opportunity to enhance the sale of all categories of
products. The store may go for giving weekly offers for different categories
of products. From this, the store can expect more sale which leads to hike in
number of footfalls of the store also.

82
6) How would you rate service provided to you in RELIANCE FRESH STORE?

a) Excellent b) Good c) Average d) Poor

SERVICE RATING AT RELIANCE FRESH

A B C D

5% 5%

40%
50%

As per this survey, 50% of customers rated the service of the store as “
AVERAGE” and 40% of customers rated the service of this store as “ GOOD”.
This shows that this stores lagging behind to provide better service to the
customers comparatively to the other stores. So, the store needs to put
more focus on giving better service to the customers.

83
7) Please rate RELIANCE FRESH STORES on the below mentioned parameters:

PRODUCT RANGE: a) Excellent b) Good c) Average d) poor

PRODUCT RANGE AT RELIANCE FRESH

0%

10%

30% A
60% B
C
D

PRODUCT RANGE or No. of. Stock keeping units (SKUs) determines the
success of the store. As per this survey, 60% of customers rated the product
range of this store as “GOOD” followed by 30% of customers rated as
“AVERAGE” and 10% of customers rated as “POOR”

So, the store needs to put more focus on improving the product range by
adding more products or SKUs. This will definitely leads to the success of the
store.

84
STORE ENVIRONMENT: a) Excellent b) Good c) Average d) poor

STORE ENVIRONMENT AT RELIANCE FRESH

A B C D

0%
10%

50%
40%

STORE ENVIRONMENT, one of the main tool to attract customers. The

continuous improvement of store environment will surely make the store in
high position in the market. As per this survey, 50% of customers rated
store environment as “GOOD” and 40% of customers rated as “AVERAGE”
and 10% of customers rated as “POOR” moreover if customers are not
comfortable with the environment of the store. There may be a chance for
the competitors to enter in the market. So, this clearly shows that the store
needs to put more focus on improving the environment of the store.

85
STORE ACCESIBILITY: a) Excellent b) Good c) Average d) poor

STORE ACCESSIBILITY AT RELIANCE FRESH

A B C D

5% 5%

40%

50%

STORE ACCESSIBILITY refers to simplicity in choosing the products inside

the store. As per the survey, 50% of customers rated store accessibility as
“AVERAGE”, 40% of customers rated as “GOOD” and 5% of customers rated
as “EXCELLLENT” and “POOR”

In this chart, most of the customers rated as “AVERAGE”. So, the store may
concentrate on the improvement of the store accessibility by giving proper
guidance through installing signboards. This can eliminate the customers’
dissatisfaction on store accessibility.

86
PRICING PATTERN: a) Excellent b) Good c) Average d) poor

PRICING PATTERN AT RELIANCE FRESH

A B C D

0%

10%

40%

50%

PRICING PATTERN is one of the best tools to differentiate the store from
other competitors. Since now the customers are very much aware about the
pricing of the products. In this survey, 50% of customers rated the pricing
pattern of the store as “AVERAGE”, 40% of customers rated as “GOOD” and
10% of customers rated as “POOR” So, the store needs to give more
attention on the proper pricing pattern.

87
8) Do you think discounts and offers can attract customers?

a) Yes b) No

OFFERS & DISCOUNTS TO ATTRACT CUSTOMERS

YES NO

NO -0%

100%

The survey clearly proves that all the customers are attracted by the
promotions and offers. Moreover, this kind of promotions and offers act as
pillar to differntiate with the near competitors as well as it will leads to the
better performance of the store. So, the store neeeds to give more focus on
giving different promotions and ofers frequently in order to postion
themselves in the mind of customers.

88
9) What kind of promotions & offers do you like most?

a) Price discount b) volume discount c) Buy 1 Get 1 free d) Others

PREFEREBLE PROMOTION & OFFERS

A B C D

5% 10% 5%

80%

There can be different kinds of promotions and offers available to the

customers. But the right kind of promotion and offer should be provide to
the right customers at right time.

This survey data clearly shows that 80% of customers prefer PRICING
DISCOUNT and 10% of customers prefers BUY 1 GET 1 FREE. So the store
needs to provide pricing discount to most of the customers as it is clearly
visible from the survey analysis.

89
 GOPANBANDHU

1) How would you describe your family?

e) Nuclear Family b) Joint Family

NATURE OF CUSTOMERS FAMILY

NUCLEAR FAMILY JOINT FAMILY

40%

60%

Here the joint family is the lion share of the market. It is of 60% of the
market. Nuclear family is only of 40%. Thus the need of the product
would be different for joint families. It would also dominate the buying
behavior of the customer.

90
 2) What is the average income of your family?
a) 1 lakhs b) 1-3 lakhs c) 3-5 lakhs d) 5 lakhs & above

AVERAGE ANNUAL INCOME

1 LAKHS 1-3 LAKHS 3-5 LAKHS 5 LAKHS & ABOVE

10%
30%
20%

40%

1 lakh of income consists of 30%. 1 lakh to 3 lakh income consist of 40%. 5

lakh of income consist of 10% and 3 lakh to 5 lakh of income consist of
20%.This scenario proves that middle class family is the majority. Thus the
range of the product would be sorted out accordingly. They involve low
involvement to the regular buying products and prefers buying frequently.

91
 3) How much do you keep aside for groceries every month?
a) 1000-2000 b) 2000-3000 c) 3000-4000 d) 4000 & above

BUDGET FOR GROCERIES

1000-2000 2000-3000 3000-4000 4000 & ABOVE

10% 10%

35%

45%

Rs.3000 to Rs.4000 budget had been allocated for groceries for the 45% of
the customers. And 35% of the people allocates Rs. 2000 to Rs. 30000 for
groceries. Only 10% allocates for Rs.4000 and another 10% of people for
Rs.1000 to Rs.2000.Here also the marority of the people is of middle class
and of upper middle class. Thus the product range would be sorted out so
that it caters to the needas of the customers.

92
 4) How often do you visit RELIANCE FRESH STORE?

e) Once a week b) once in 15 days c) once a month d) any other

FREQUEBCY VISIT TO STORE

ONCE A WEEK ONCE IN 15 DAYS ONCE A MONTH ANY OTHER

15%
25%

20%

40%

Those customers who visit the store once in a month are of 20%. Those who
consist of 40% visit once in 15 days. Those customers who visit once in a
week are of 25%. And the group who satisfies the any other category are of
15%. Thus it clarifies that customers prefer to visit the store often and
frequently. The supply of the product therefore should satisfy the need of
the product accordingly.

93
5) What kind of products do you prefer to buy at RELIANCE FRESH STORE?

a) Fruits& vegetables b) FMCGs c) Dairy products d) Staples e) Any other

CUSTOMER PREFERENCE AT RELIANCE FRESH

FRUITS & VEGETABLES FMCGs DAIRY PRODUCTS STAPLES ANY OTHER
ANY OTHER-0%

25% 20%

20%
35%

Fruits and vegetables consist of 20%. Staples hold 25 % of the customer

preference. But FMCG is dominating the scenario by holding 35%. Therefore
it is quite obvious that customers prefer FMCG products.

94
6) How would you rate service provided to you in RELIANCE FRESH STORE?

a) Excellent b) Good c) Average d) Poor

SERVICE RATING AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

POOR -0%

20% 15%

65%

Majority of the customers rate the service of Reliance Fresh store as 65%.
Only a minority of the rate the service as good or as average. It reveals that
customers are quite satisfied with the service being provided to them.

95
7) Please rate RELIANCE FRESH STORES on the below mentioned parameters:

PRODUCT RANGE: a) Excellent b) Good c) Average d) poor

PRODUCT RANGE AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

5% 10%

35%
50%

Product Range is average one and thus enlargement of the product is an

immediate requirement. It reveals that customers are not satisfied with the
product range being offered to them.

96
STORE ENVIRONMENT: a) Excellent b) Good c) Average d) poor

STORE ENVIRONMENT AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

POOR -0% AVERAGE -0%

20%

80%

Customers are indeed satiusfied with the enviornment being provided to

them. The atmosphere is quite conducive and ammenities are being
provided to them.

97
STORE ACCESIBILITY: a) Excellent b) Good c) Average d) poor

STORE ACCESIBILITY AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

10% 15%

20%

55%

The store assessibility is good. Customers can reach to the

98
PRICING PATTERN: a) Excellent b) Good c) Average d) poor

PRICING PATTERN AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR
POOR -0%

20% 25%

55%

99
8) Do you think discounts and offers can attract customers?

a) Yes b) No

OFFERS & DISCOUNTS TO ATTRACT CUSTOMERS

YES NO

NO -0%

100%

100
9) What kind of promotions & offers do you like most?

a) Price discount b) volume discount c) Buy 1 Get 1 free d) Others

PREFEREBLE PROMOTIONS & OFFERS AT RELIANCE

FRESH
PRICE DISCOUNT VOLUME DISCOUNT BUY 1 GET 1 FREE OTHERS

OTHERS -0%

20%

55%
25%

101
 BARAMUNDA

1) How would you describe your family?

f) Nuclear Family b) Joint Family

NATURE OF CUSTOMERS FAMILY

NUCLEAR FAMILY JOINT FAMILY

40%

60%

Our survey shows that only 40% customers of Baramunda store belongs to “Nuclear family”
where as 60% belongs to “joint family”. So this store must develop strategies in such a way so
that the joint families get the focus concentration. Even at the time of selecting promotional
offers, this need to be kept in mind. Promotional offers like “Buy one Get one free” or “volume
discount” will work good to increase footfall over here. Because in the joint family goods are
needed in high volume. So, people will prefer volume than price over here.

102
 2) What is the average income of your family?
e) 1 lakhs b) 1-3 lakhs c) 3-5 lakhs d) 5 lakhs & above

AVERAGE ANNUAL INCOME

1 LAKHS 1-3 LAKHS 3-5 LAKHS 5 LAKHS & ABOVE

2%
3%
21%

74%

Here, our survey shows that the financial profile of most of the customers are middle class. Or Higher
middle class. 74% of the family’s income are within 1to 3 lakh and 21% family’s income is between 3 to 5
lakh. As above we have seen that most of the people belong to joint family here, so it’s easily
understandable that a joint family with a earning of 1 to 3 lakh is merely belonging to a middle class
family. As, they have high expense. So, they are concerned about price too. So, unless until a affordable
pricing technique is adopted the shop will not work out properly.

Here, our survey shows that the financial profile of most of the customers are middle class. Or Higher
middle class. 74% of the family’s income are within 1to 3 lakh and 21% family’s income is between 3 to 5
lakh. As above we have seen that most of the people belong to joint family here, so it’s easily
understandable that a joint family with a earning of 1 to 3 lakh is merely belonging to a middle class
family. As, they have high expense. So, they are concerned about price too. So, unless until a affordable
pricing technique is adopted the shop will not work out properly.

103
 3) How much do you keep aside for groceries every month?
e) 1000-2000 b) 2000-3000 c) 3000-4000 d) 4000 & above

BUDGET FOR GROCERIES

1000-2000 2000-3000 3000-5000 5000 & ABOVE

12%
22%

23%

43%

Again our data proves the same thing that, as the customers over there are middle class familyso, most
of the family’s[43%] monthly expense for grocery product is 2000-3000. also, a large number of
people[23%]are having 3000 to 5000 expense for grocery. That means quite one fourth people are
having 3000 to 5000 expense monthly for grocery. The reason may be because of that, they belong to a
joint family. Whatever the reason is, the main thing is that reliance Fresh over Baramua is having a good
no of potential buyer families.

104
 4) How often do you visit RELIANCE FRESH STORE?

f) Once a week b) once in 15 days c) once a month d) any other

FREQUENCY VISIT TO STORE

ONCE A WEEK ONCE IN 15 DAYS ONCE A MONTH ANY OTHER

1% 1%

15%

83%

The statistics shows that 83% customers visit Reliance Fresh once a week. As reliance Fresh is a
convinient store, so it requires high number of footfalls everyday. Reliance Fresh targets on “daily
customers”. And here we can see that the customers at the nereby

catchment area are visiting the stores very often.That means they are satisfied with the store.As, only
15% customers are visiting it once in 15 days.

105
5) What kind of products do you prefer to buy at RELIANCE FRESH STORE?

a) Fruits& vegetables b) FMCGs c) Dairy products d) Staples e) Any other

CUSTOMER PREFERENCE AT RELIANCE FRESH

FRUITS&VEGETABLES FMCGs DAIRY PRODUCTS STAPLES ANY OTHER

10% 20%
16%

22% 32%

Although,here or data show that 20% of the customers are preffering fruits and vegetables,32%
customers are liking to buy FMCGs, 22% are willng to buy dairy product, 16% are preffering staples and
10% others, but at the time of collecting the data we didn’t get any particular answer of this question.
Most of the answers were overlapping. No one is saying that he comes to Reliance Fresh only to buy
dairy products or only to fruits and vegetables. Most of the people said ‘staples and dairy product’ or
‘dairy products and consumer goods’……like this. From this we came to the conclusion that customers
want to see reliance fresh as their “Everything store”

But, beside to that, it was also clear from their response that they still prefer to buy fruits and
vegetables from local vendors. There perception is, as Reliance is an organised retail outlet, they have
big coller and cold warehouse where they store these fruits and vegetables for a long time and supply
accordingly. But as the local vendors can not afford those, so they bring the fruits and vegetables daily
or otherwise it would have been perished.

So, good strategy is needed to be develop to increase customers loyalty on fruits and vegetable section.

106
6) How would you rate service provided to you in RELIANCE FRESH STORE?

a) Excellent b) Good c) Average d) Poor

SERVICE RATING AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

4%
19% 26%

51%

In this question comes the point where the store strength lies and for which we
have a lot of customers driving in regularly to our store. In this graph we find that
26% of customers rated excellent & 51% of customers rated as good to the service
provided by RELIANCE FRESH. And one of the important things is that we don’t
have any negatives in this area. So the store must try to drive on stronger on its
strength and try to keep up to this expectation of the customer of getting good
services and always be ready to help the customer whenever they need. But still the
store staff should try and be more courteous and helpful to the customer. This is
strength of the store and it should keep up to it. From this data we are able to find
out that the customer always looks for services for which they come to the store.
So such strength should be improved and maintained in the long run.

107
7) Please rate RELIANCE FRESH STORES on the below mentioned parameters:

PRODUCT RANGE: a) Excellent b) Good c) Average d) poor

PRODUCT RANGE AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

3% 16%
24%

57%

This question gives us an idea to know how effective we are in providing the
customer the various range of product they want at the right time and at the right
place i.e. the store. In this study I found out that there are different views about
this. As we can see around 16% of the sample size is always able to get whatever
they look for, so they rated they rated excellent product range, whereas at the same
time 57% of the customer rated the product range as good. And around 24% rated
it as average and 3% of customer rated it as poor. As we know requirement differs
from person to person, so we are getting here a type of finding. So here we must
look forward to satisfy the needs of all the customers, so that we are able to cater to
the requirements of all the lot and need. To find out that we should also look
through to make available all the products and need to see when we again go for a
study all are able to get the products whenever they require at the right time.

108
STORE ENVIRONMENT: a) Excellent b) Good c) Average d) poor

STORE ENVIRONMENT AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

1%

8%
23%

68%

Store’s environment plays an important role in increasing footfalls in a store.

According to the data collected and depicted in the graph it shows that all the
customers are quite happy with the hygienic conditions of the store. As 68% of
customers rated the store’s environment as good and 23% of the customers rated it
as excellent, so we can analyze the store’s environment as good. And the
customers are happy with the store’s environment. But still we need to work on it a
bit more in order to make all the customers to be strongly agreed to this statement.

109
STORE ACCESIBILITY: a) Excellent b) Good c) Average d) poor

STORE ACCESIBILITY AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

3% 18%

43%

36%

The response of this question is mixed enough.when 18% customers are stating store accessibility as
excellent and 35% as food, 43% are stating it as average and 3% as poor!!

Overall when minutely asked there is no such problem in accessing. The products are available at the
right place in a organised way.

Probably the reason behind the mix response is that, most of the competitor stores in Bhubaneshwar
are also very well oraganised and easily accessible. So, the customers are preoccupied or habituated
with this.

110
PRICING PATTERN: a) Excellent b) Good c) Average d) poor

PRICING PATTERN AT RELIANCE FRESH

Excellent Good Average Poor

15% 5%

45%
35%

In this question my objective was to find out what does the customer think about
the pricing of the store in comparison to the market pricing? So this was satisfied
lot of customer as most of them said that it is same to the price of the market and
most of the rest said it’s cheaper than the market. So as the customer get good
services with equal price to the market it is good for them. But we should also not
be satisfied with this finding because market has one rate and one says it is equal
and another say it to be cheaper, so we can’t come to a stance but we can also find
it out easily with the help of price benchmarking.

111
8) Do you think discounts and offers can attract customers?

a) Yes b) No

OFFERS & DISCOUNTS TO ATTRACT CUSTOMERS

YES NO
NO-0%

100%

Discounts and offers can attract customershighly. While talking to the customers, it is easily
understandable that every single one likes discount or other promotional offer. Our data shows that
100% customers prefer discount.

But discount must be ocassional and not avilable always or else customers will become habituated with
this and this will no more stimulate them to buy at the discounted period.

While talking to the people we found that there is slight perception in the mind of the people that
discounted products are not that much good.

112
9) What kind of promotions & offers do you like most?

a) Price discount b) volume discount c) Buy 1 Get 1 free d) Others

PREFERABLE PROMOTIONS & OFFERS AT RELIANCE

FRESH
PRICE DISCOUNT VOLUME DISCOUNT BUY 1 GET 1 FREE OTHERS

20%
38%

26%

16%

In this graph we can analyze that 38% of customer like PRICE DISCOUNTS offer,
16% like VOLUME DISCOUNT offer, 26% like BUY 1 GET 1 FREE and 20% of
customer who like some OTHER PROMOTION AND OFFERS. So the store has
to provide various promotional offers time to time to increase footfalls in the store.

113
 IRC VILLAGE
1) How would you describe your family?

a)Nuclear Family b) Joint Family

NATURE OF CUSTOMERS FAMILY

NUCLEAR FAMILY JOINT FAMILY

44%

56%

Joint families hold the lion share as 56% of the families belonging to the
catchment area of RELIANCE FRESH STORE are joint families. Thus the need
and demand of the joint families would be different. The variation of age
groups are more in joint families than in nuclear families thus the products
of the store has to be assorted in such a way that it caters to the need and
demand of various age group. Nulear families also hold prominence as it
clusters around 44%. But if compared between the two the need and
demand of the consumers belonging to the joint family had to be addressed
by the IRC store with adeptness.

114
 2) What is the average income of your family?
a) 1 lakhs b) 1-3 lakhs c) 3-5 lakhs d) 5 lakhs & above

AVERAGE ANNUAL INCOME

A B C D

15%
45%
15%

25%

The income of the customer above 5 lakh and more holds the lion share of
the customer base that is 45%. And 3 lakh – 5 lakh of income constitutes
only 25% of the customer base. It can be concluded that upper middle and
upper class people are the residents of the catchment area. They dominate
the middle class and the lower middle. Product range has to be assorted in
such a way so that it can cater to the need and demand of the customers.

115
 3) How much do you keep aside for groceries every month?
a) 1000-2000 b) 2000-3000 c) 3000-4000 d) 4000 & above

BUDGET FOR GROCERIES

A B C D

15%
30%

10%
45%

Income allocation for the purchase of groceries which ranges from Rs. 2000
to Rs.3000 holds 45% of the market scenario. The

116
 4) How often do you visit RELIANCE FRESH STORE?
a) Once a week b) once in 15 days c) once a month d) any other

FREQUENCY VISIT TO STORE

A B C D

20%

50%
15%

15%

Customers prefer short distance travelling and frequent buying with regard
to the convenient stores. Therefore, most of the customers visit the stores
once in a week. These customers constitute of 50 % of the customer base.
Regular buying behavior involves low involvement of the customers in their
decision making process. Therefore, they prefer frequent buying. Those
customers who visit once in a month or once in 15 days constitute only the
15% of the customer base. Therefore, it is quite obvious that frequent visit
to the stores are comparatively more than the other parameters of the
questionnaire.

117
5) What kind of products do you prefer to buy at RELIANCE FRESH STORE?

a) Fruits& vegetables b) FMCGs c) Dairy products d) Staples e) Any other

CUSTOMER PREFERENCES AT RELIANCE FRESH

A B C D E

0%

10%
28%
21%

41%

Most customers prefer to buy the FMCG products. They constitute the 41%.
Therefore, it is quite obvious that the purchases of FMCG products are
comparatively more than other products.

118
6) How would you rate service provided to you in RELIANCE FRESH STORE?

a) Excellent b) Good c) Average d) Poor

SERVICE RATING AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

POOR -0%

20% 10%

70%

As this survey shows that 70% of customers rated store srevice as GOOD. But the
store should give more focus on eradicating the loopholes in it. And the store
should try to convert this GOOD as EXCELLENT.

119
7) Please rate RELIANCE FRESH STORES on the below mentioned parameters:

PRODUCT RANGE: a) Excellent b) Good c) Average d) poor

PRODUCT RANGE AT RELIANCE FRESH

EXCELLENT GOOD AVERAGE POOR

5% 10%

35%
50%

PRODUCT RANGE or no. of SKUs determines the success of the store. In this
survey, 50% of customers rated “ AVERAGE “ on product range. This may show
great impact on no. of footfalls. So the store should focus on increasing the no. of
Sku’s in order to meet the ever- rising demands of the customers.

120
STORE ENVIRONMENT: a) Excellent b) Good c) Average d) poor

STORE ENVIRONMENT AT RELIANCE FRESH

A B C D
POOR -0% AVERAGE -0%

30%

70%

The store environment had been stated by the customers as conducive as well as all amenities being
provided to the customers. Majority of the customers feel it to be excellent where as the rest have
stated it to be good. But none of the customers have felt it to be poor.

121
STORE ACCESIBILITY: a) Excellent b) Good c) Average d) poor

STORE ACCESSEIBILITY AT RELIANCE FRESH STORE

A B C D

5% 15%

30%

50%

Maximum number of customer can reach the RELIANCE FRESH store with a short span of time from the
catchment area. The location of the store is such that the store is prominently visible

122
PRICING PATTERN: a) Excellent b) Good c) Average d) poor

PRICING PATTERN
EXCELLENT GOOD AVERAGE POOR

POOR -0%

20%
30%

50%

PRICING PATTERN, one of the tool for promoting the store as different from other
competitors. As per this survey, 50% of customers rated “ good “ for pricing
pattern. But at the same time, the store should realise that some of the customers
are not satisfied with the pricing pattern of the store which may harms the store in
future and will give an upper edge to our competitors.

123
8) Do you think discounts and offers can attract customers?

a) Yes b) No

OFFERS & DISCOUNTS TO ATTRACT CUSTOMERS

YES NO

NO -0%

100%

Discounts and offers can attract customershighly. While talking to the customers, it is easily
understandable that every single one likes discount or other promotional offer. Our data shows that
100% customers prefer discount.

But discount must be ocassional and not avilable always or else customers will become habituated with
this and this will no more stimulate them to buy at the discounted period.

While talking to the people we found that there is slight perception in the mind of the people that
discounted products are not that much good

124
9) What kind of promotion and offers do you like most?

a) Price discounts b) Volume discounts c) Buy 1 get 1 free d) others.

PREFEREBLE PROMOTION & OFFERS AT RELIANCE

FRESH
A B C D

0%

25%

55%
20%

From the above data, we can figure out that customers prefer price
discounts more than volume discounts. Price discounts are also preferred of
Buy 1 Get 1 free scheme.

125
 BOMIKHAL

1) How would you describe your family?

a) Nuclear Family b) Joint Family

NATURE OF CUSTOMERS FAMILY

NUCLEAR FAMILY JOINT FAMILY

44%

56%

Here the data shows us, that 44% are nuclear family in Bomikhal where as
56% are joint family. So, the focus must be on that joint family. And various
schemes should be developed to stimulate the buying behavior of the joint
family consumers. As, joint family members need more bulky products, so,
the stock of those bulky products should be more. On the other hand the
various strategies to increase the footfall in the needed to be developed in
such a way so that the it can mostly attract the joint family members. On
the other hand there are 44% of single family members also. So, this store
needs to focus on that too. In nuclear family mostly in todays time both of
the male and female partner are working now a days. So, time is very
precious for them and they need the right thing at the right time. So, to
increase the footfall product assortment also need to be kept in mind.

126
 2) What is the average income of your family?
a) 1 lakhs b) 1-3 lakhs c) 3-5 lakhs d) 5 lakhs & above

AVERAGE ANNUAL INCOME

A B C D

0%
12%

50%

38%

Here our statistics show that most of the people are are with above middle
class financial background. Here, 50% of the people are earning between 1to
3 lakh. And 38% are earning between 3 to 5 lakh. And also 12% are earning
more than 5 lakh and not a single family is there who earns less than 1 lakh.
These data shows that most the familys in the catchment area of Bomikhal
are potential buyer. This is a very good sign for the shop. On the other hand
as the customers are financially sound enough, so buy one get one free or
volume discount, these promotional offers will work good than price
discount.

127
 3) How much do you keep aside for groceries every month?
a) 1000-2000 b) 2000-3000 c) 3000-4000 d) 4000 & above

BUDGET FOR GROCERIES

A B C D

0%

19%
31%

50%

Again our data proves the same thing that, as the customers over there are
upper middle class family so, most of the family’s [50%] monthly expense
for grocery product is 3000 to 4000. Also, a large number of
people[31%]are having more than 4000 expense for grocery. That means
more than one fourth people are having 3000 to more than 4000 expense
monthly for grocery. The reason may be because of that, they belong to a
joint family. Whatever the reason is, the main thing is that reliance Fresh
over Bomikhal is having a good no of potential buyer families.

128
 4) How often do you visit RELIANCE FRESH STORE?

a) Once a week b) once in 15 days c) once a month d) any other

FREQUENCY OF VISIT TO STORE

A B C D

0%

10%

40%

50%

Here our statistics is showing that quite a large no. of people that is 40% are
visiting the store once a week. 50% are visiting it once in 15 days. 10% are
visiting it once a month. Now, the fact is reliance fresh is convenient stores
which mainly concentrate on the nearby catchment area customers. And also
its focus is on daily customers. So, it will be good if the customers visit the
store on daily basis. Visiting once a week is good but once in 15 days or
once in one month is not so good for the store. So, more strategies need to
be developed to increase the footfalls in the store regularly.

129
5) What kind of products do you prefer to buy at RELIANCE FRESH STORE?

a) Fruits& vegetables b) FMCGs c) Dairy products d) Staples e) Any other

CUSTOMER PREFERENCES AT RELIANCE FRESH

A B C D E

0%

15% 23%

30%

32%

The data shows that most of the people that is near about 32% of the
people are preferring FMCG products, 30% are liking dairy products 23% are
for fruits and vegetables and 15% for staples.

The favour for the staples are bit lower here than the other stores. So, it
needs to be supervising whether there is any problem in ‘Facing’ of the
products or in the pricing or packaging of the products.

130
6) How would you rate service provided to you in RELIANCE FRESH STORE?

a) Excellent b) Good c) Average d) Poor

SERVICE RATING AT RELIANCE FRESH

A B C D

0%

8% 20%

72%

Our data is showing that 72% of the customers are rating the store as good.
20% as excellent. And only 8% as average. That means that the customers
are happy with their store. The internal environment is also suitable
according to the customers. The customer service associates are helpful
enough. The customers are also happy with the home delivery service. They
are happy with the store environment and assortment also. Parking place is
not enough.

131
 7) Please rate RELIANCE FRESH on the below mentioned parameters?
I) Product Range: a. Excellent b. Good c. Average d. Poor

PRODUCT RANGE AT RELIANCE FRESH

6% 6%

A
B
C
D
88%

Most of the customers are satisfied with the product range. Our statistics is
showing that 6% customers are stating product range as excellent, 88% as
good.But 6% are stating it as an average one . When they are asked for the
reason behind it, they state that they are not really unsatisfied with the
product range itself. Rather their complain is that, most of the products are
not available always. So, their problem lies on unavalability of the products
at the time of demand.

132
STORE ENVIRONMENT: a) Excellent b) Good c) Average d) poor

STORE ENVIRONMENT AT RELIANCE FRESH

A B C D

0%

13% 6%

81%

Customers are satisfied with the store enviornment. 81%customers state the
store enviornment as good and 6% as excellent. Which proves that the store
enviornment is satisfactory enough.only 13 % is stating it as average and
0% as poor.No such complain as internal store enviornment is stated. The
CSA’s are good enough and helping. But, complain about low parking place
is heard [specially for four wheelers]. They have also another complain that
sometimes the billing counters do not work properly. And it becomes
problematic specially on the weekends and other crowded days.

133
STORE ACCESIBILITY: a) Excellent b) Good c) Average d) poor

STORE ACCESSEIBILITY AT RELIANCE FRESH

A B C D

6% 6% 13%

75%

The response of this question is satisfactory enough.when 13% customers

are stating store accessibility as excellent and 75% as good, 6% are stating
it as average and 6% as poor!!

Overall when minutely asked there is no such problem in accessing. The

products are available at the right place in a organised way.

Probably the reason behind the mix response is that, most of the competitor
stores in Bhubaneshwar are also very well oraganised and easily accessible.
So, the customers are preoccupied or habituated with this.

134
PRICING PATTERN: a) Excellent b) Good c) Average d) poor

PRICING PATTERN AT RELIANCE FRESH

A B C D

0%
6%

34%

60%

Regarding the question of price, our statistics shows that 0% is stating it as

excellent, 60% as good whereas 34% as average and 6% as poor.

It clearly states that customers are not highly satisfied with the price. As, in
the previous data we have seen that people over this place is mostly of
middle class background, so it’s a matter of concern.

These middle class people prefer loose staples than packaged one. Because
they are comparatively of lower price. So, stock of high range of loose
staples will work good in this store.

135
8) Do you think discounts and offers can attract customers?

a) Yes b) No

OFFERS & DISCOUNTS TO ATTRACT CUSTOMERS

A B

0%
0%
3%

97%

Discounts and offers can attract customershighly. While talking to the

customers, it is easily understandable that every single one likes discount or
other promotional offer. Our data shows that 97% customers prefer discount
while 3% don’t.

But discount must be ocassional and not avilable always or else customers
will become habituated with this and this will no more stimulate them to buy
at the discounted period.

While talking to the people we found that there is slight perception in the
mind of the people that discounted products are not that much good.

136
9) What kind of promotions & offers do you like most?

a) Price discount b) volume discount c) Buy 1 Get 1 free d) Others

PREFEREBLE PROMOTION & OFFERS AT

RELIANCE FRESH
A B C D

0%

25%

6%

69%

Here our data shows that most of the customers that is 69% are preferring
price discount. Then 25% as buy one get one free. 6% for volume discount
and 0% for others. It clearly states that most of the customers prefer price
discount. AS we discussed previously that most of the customers are middle
class here probably for that reason they are preferring price discount than
other discount offers. Also our data previously showed that there are some
people who are having very high income. Probably they Re the customers
who prefer the buy one gat one offer or volume discount offer. Joint family
people prefer volume discount more than price discount.

137
 RECOMMENDATIONS
On the basis of the statistics given and analysis done by us ,we can deduce this conclusion that
joint families constitutes the lion share of the customer base. The product range has to be
enlarged to cater to the variations in the needs and want of the customers. we need to keep a
wider assortment of products to satisfy the customers. On the other hand nuclear families have
comparatively less no. of members than joint families and thus the buying behavior of both of
the families differ from each other to major extent. Joint families in order to cater to the need
and want of all the members in the family requires bulk buying ,thus sufficient stock of products
are required all the time to suffice the need and expectation of the customers.

Enlargement of the product range is required in order to meet the ever-changing and ever-rising
demands of our customers. Along with it the extension of the product length and deepening of
the product depth are required so that our customers enjoy their shopping experience in our
store and get a wider options to choose from among our varied offerings.

Senior citizens staying in the catchment area prefers to buy from the nearby convenient store
and Reliance fresh store is not an exception in this regard. Therefore special care and adequate
concern shall embrace them always to make their shopping experience unforgettable and
soothing. The hand of help can be extended to them even if not being asked. Thus the major
responsibility lies on the shoulders of CSA. Therefore they have to be adequately trained so that
they can deliver their sincere service towards our esteemed customers.

Loyal customers are the apple’s eye of Reliance fresh store thus, special offers and lucrative
discounts are required to be introduced to arrest their attention. It is very well known that it is
much difficult to retain an old customer than to win a new one. The need of the hour is to have
an upper edge over the competitors. To leave a striking mark in the mind of the customers in
this cut throat competitive scenario Reliance fresh stores can have attractive plans to make their
loyal customers feel elated and to instill a sense of belongingness towards our stores.

Accumulation of grievances in the mind of the customer leaves a negative impact on the fame of
the store. “Word of mouth” has become the ‘elan-vital’ for Reliance fresh store . The customers
themselves act as best advertisement and their word of mouth is the best publicity for the store.
Thus a special unit is needed to always be on their tip of the toes to deliver the best possible
sincere service to eradicate the grievances from their roots forever.

138
Point of sale(POS) is a major cause of discomfort for customers. Time and tide waits for none .
Therefore in due respect of time and to satisfy the customer appropriate measures we need to

Extensive home delivery service could increase the catchment area without
direct footfall.

Parking place is not sufficient in front of most of the stores. For customers
convenience a good arrangement of parking will help. Especially on the
weekend days.

Various mode of advertisement can be used to make people aware about

Reliance Fresh and its happenigs. We can use mediums like radio and local
channels to advertise and to inform our customers about our weekend offers.

139
 FINDINGS
Reliance Fresh visitors are mainly from modern middle class families who
emphasize equally on the quality and price of products of everyday
requirements.

Most of the probable consumers find the shop being consumer-friendly,

equipped with vast stock and adorable environment .

Parking place is not sufficient in most of the “Reliance Fresh” stores.

Customers need high range of products.

FMCG is the highest sold product in “Reliance Fresh”.

Promotional schemes and offers attracts customers.

In weekend the footfall is much high and so supply needs to be much more on
Saturday and Sunday.

Shopping pleasure depends to high extent on customer service associates

[CSA]. Most of the people agree that if the CSAs help them to find out the
product they want, is of great help.

Average billing value is Rs-350.

People who are having Reliance membership card ie: “Reliance one”, are more
loyal to buy from reliance fresh stores.

140
CONCLUSION

Looking at the current market emergence and scenario a bright future awaits to give RELIANCE RETAIL
sector a warm hug. Amelioration of Reliance fresh stores would help the Reliance Retail to bask in the
glory of success. When great strategic personality like Raghu Pillai wraps his constant stream of wisdom
in a child like candour , competitors of Reliance Retail are bowled over by the brilliance of the flawless
execution of the strategies of Reliance Retail. Zenith of achievement has always been the permanent
resort of Reliance Retail. There are very few loopholes which only can be perceived with a magnifying
glass. But then also they demand immediate attention. Think tank of Reliance Retail plan to play on the
heart string of the customers like a genuine virtuoso. Customers are the hearts blood of prospects and
growth . The exigency is not only to satisfy the customers but also to make them delighted. Delightment
will only be able to reign supreme in the mind of the customer only when the actual service of the
product would surpass the expectation of the customer from the product. Loyal customers satisfaction
and ‘word of mouth’ have always been the source of sustenance and the pillar of success for Reliance
Retail. The nurture and nourishment of this strong bond of relationship would help Reliance Retail to
earn immense fame and reputation. Thus RELIANCE RETAIL would stand as an unparallel, peerless and
immaculate stalwart in the domain of retail and its competitors would like to follow its footsteps as its
identity would be the hallmark of the wondrous appreciation of its customers.

141
 REFERENCES

Website:
www.ril.com

www.wikipedia.org.

info.dsn@if.com

http://www.ril.com/html/business/business_retail.html

https://www.retail.com/

www.indiaretailling.com

www.retailreporting.com

http://en.wikipedia.org/wiki/Reliance_Fresh

http://www.reliancefresh.info/

http://www.dancewithshadows.com/business/reliance-fresh.asp

www.indiadaily.org/entry/ril-goes-in-retail-with-reliance-fresh/

http://in.search.yahoo.com/search?fr=yfp-t-in&type=ds&p=reliance+fresh

www.retailindia.typepad.com/retailindia/2008/05/retail-india-ma.html

www. indiaretailnews.com/about

www.news.bbc.co.uk/1/hi/business/6112578.stm

Books:
1.Marketing managent by kotler and keller.

2.The art of retailing by A J LAMB

3.Managing retailing by Piyush KR. Sinha and Dwarika Prasad Uniyal.

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