Study of Consumer buying behaviour

In
Reliance Fresh
New Delhi
Project Report
Submitted To
SCHOOL OF MANAGEMENT SCIENCES
For The Award Of
Post Graduate Diploma in Management
Submitted By
Amit Kumar Gupta
(Roll No. : PG/08/05)
SCHOOL OF MANAGEMENT SCIENCES
LUCN!"
1

Study of Consumer Buying Behaviour

In
Reliance Fresh
Submitted By
Amit Kumar Gupta
(Roll No. : PG/08/05)
SCHOOL OF MANAGEMENT SCIENCES
LUCN!"
2
Reliance fresh
3

Certificate
4


5
Executive Summary
Retailing is the interface between the producer and the individual
consumer buying for personal consumption. This excludes direct
interface between the manufacturer and institutional buyers such
as the government and other bulk customers. A retailer is one
who stocks the producers goods and is involved in the act of
selling it to the individual consumer, at a margin of profit. As
such, retailing is the last link that connects the individual
consumer with the manufacturing and distribution chain. The
retail industry in India is of late often being hailed as one of the
sunrise sectors in the economy. AT Kearney, the wellknown
international management consultancy, recently identified India
as the !first most attractive retail destination globally from among
thirty emergent markets. It has made India the cause of a good
deal of excitement and the cynosure of many foreign and
domestic eyes. The entry of foreign and Indian retail giants like
"al#art, #etro, $eliance, %irla, Tata etc. made Indian market
more competitive which is at cut throat level. &o how retailers
can reach to their end customers, to win the mind share and
increase the basket si'e of each shopping trip.
India retail industry is the largest industry in India, with an
employment of around () and contributing to over *+) of the
country,s -./. $etail industry in India is expected to rise 01)
yearly being driven by strong income growth, changing lifestyles,
and favourable demographic patterns.
It is expected that by 0+*2 modern retail industry in India will be
worth 3&4 *51 0++ billion. India retail industry is one of the
fastest growing industries with revenue expected in 0++5 to
amount 3&4 60+ billion and is increasing at a rate of 1) yearly.
A further increase of 5() is expected in the industry of retail in
India by growth in consumerism in urban areas, rising incomes,
6
and a steep rise in rural consumption. It has further been
predicted that the retailing industry in India will amount to 3&4
0*.1 billion by 0+*+ from the current si'e of 3&4 5.1 billion.
The growth of scope in the Indian retail market is mainly due to
the change in the consumers behaviour. 7or the new generation
have preference towards luxury commodities which have been
due to the strong increase in income, changing lifestyle, and
demographic patterns which are favourable.
Reliance Retail is the retail chain division of reliance industries of
India which is headed by Mukesh Ambani. Reliance has entered
into this segment by opening new retail stores into almost every
metropolitan and regional area of India. Reliance plans to invest
rs 25000 crores in the net ! years in their retail division and
plans to begin retail stores in "#! cities across the country. $he
reliance fresh supermarket chain is ril%s rs 25&000 crore venture
and it plans to add more stores across different g& and eventually
have a pan'India footprint by year 20((to the company. .
A) $he twentieth century has come to and we have moved in to
third millennium & we can see many development and changes
taking place around us with all the industries and firms within
each industry trying to keep pace with all the industries and firm
within each industries trying to keep pace with the changes and
diverse need of people . Marketer have regarded *customer+
as the king and evolved all activities to satisfy him or her& this
concept gaining more momentum and importance today.
More than a century ago& the father of our nation& Mahatma
,andhi& had made visionary and deep meaningful statement at
-ohannesburg& )outh Africa in (.#0. A customer is the most
important visitor of our premises. He is not dependent on us
.We are dependent on him He is not interruption on our
work. He is the purpose of it and not an outsider on our
7
premises. He is a part of it. We are not doing him favour by
serving him.
$oday the entire firm engaged in a process of creating a life time
value and relationship with customers. $his report start with
discussion on the diversity of consumer behaviour and the need
for studying consumer buying behaviour and consumer as a
related field of marketing .this can be largely be attributed to the
prevailing market situation .$oday the company image is built
and made known by its customers. $hus success of the firm
determined how effective it has been in meeting the diverse
consumer need and wants by treating each customer as uni/ue
and offering products and services to suit has or her need.
Consumer buying behaviour will be a primary force in
determining how this transition will evolve. -etting closer to the
customer in todays highly competitive landscape is essential for
the entire industry and is no longer 8ust a retail issue. It re9uires
all organisations across the supply chain to work as a single
enterprise, sensing and responding rapidly to consumer demand
in a coordinated manner. .etailed analysis of the changing
patterns of consumer demand, shopping trends.
This research report is based on to know the
* #a8or factors influencing consumer buying behaviour.
0 %uying decision process.
6 The stage in buying decision process
: Awareness of consumer towards organised retail sector
8


9
Declaration
I hereby declare that this summer pro8ect report titled ;%uying
%ehaviour<consumer satisfaction of $eliance 7resh customer in
;.elhi. is the result of my own effort in the training which I did as
a part of the curriculum, for the fulfilments of /=&T -$A.3AT>
.I/?=#A I@ #A@A->#>@T A/-.#B. It has not been
duplicated from any other earlier works and all information
provided in this report is genuine.
This report is submitted for the partial fulfilments of /-.#
program. It has not been submitted to any other university or for
any other degree.
Date: AMIT KUMAR GUPTA
PGDM
(MARKETING)
SMS LUCKNOW
10



11
ACKNOWLEDGEMENT
ACKNOWLEDGEMENT


I take this opportunity to express my sincere gratitude to the
following personalities without whose help and guidance the
successful completion of my pro8ect work would have been
remained a dream.
I extend my heartfelt thanks to our C$ #iss. &CIDA@-A?I
&I@-C for the constant and valuable guidance by him through
out my course.
I would like to take the pleasure of this opportunity to express my
heartful gratitude to my guide /rofessor #rs DA@.A@A
&C$IDA&TAD A7aculty #ember, &#&B who took personal
interest and gave valuable suggestions through out my field work
and completion of the pro8ect.
I thank all my faculty members of #%A department for their
valuable suggestions throughout my course.
The importance of the moral support and good wishes of my
parents and friends is external and I am very much indebted to
them.
12
7inally I thank all my friends who directly or indirectly helped me
a lot during my pro8ect.
AMIT KUMAR GUPTA
PGDM-MARKETING
SMS LUCKNOW

Contents
13

14
S.N. INDEX PAGE
NO
Certificate 4
Executive Summary 5
Declaration 9
Acno!le"#ement 11
CHAPTER- 1 INTRODUCTION &BACKGROUND
1.1 Com$any %vervie! 14
1. &o$ular &rofile 21
1.! Su$$ly C'ain (o"el 27
1." S)%* Analy+i+ 30
1.# Cor$orate Social ,e+$on+i-ility 33
1.$ (a.or &layer 35
CHAPTER- RESEARCH METHODOLOG%
&DESIGN
.1 %-.ective of ,e+earc' 38
. *y$e of ,e+earc' 41
.! Source of "ata / Collection tool 41
." Sam$lin# 42
.# Sam$le +i0e 42
CHAPTER-! ANAL%SIS & INTERPRETATION
(eanin# of con+umer 1uyin# 1e'aviour 44
2nter$retation of collect "ata 49
CHAPTER-" RESEARCH &INDING 69
CHAPTER-# LIMITATION O& RESEARCH 71
CHAPTER-$ SUGGESTION 73
APPENDIX 75
RE&RENCES 77


RELIANCE
'G()*t+ +a, -) ./0/t at Re./a-1e. I 2ee3 (e4/,/-5 06 4/,/)-. O-.6
*+e- 6)7 1a- 8(ea0 /t9 6)7 1a- 8) /t.'
15
D+/(7:+a/ H. A0:a-/
3oun"er C'airman ,eliance 4rou$
Decem-er 285 1932 6 7uly 65 2002

RELIANCE GROUP
The $eliance -roup, founded by .hirubhai C. Ambani A*E60
0++0B, is India,s largest private sector enterprise, with businesses
in the energy and materials value chain. -roup,s annual
revenues are in excess of 3&. 05 billion. The flagship company,
$eliance Industries ?imited, is a 7ortune -lobal 1++ company
and is the largest private sector company in India.
%ackward vertical integration has been the cornerstone of the
evolution and growth of $eliance. &tarting with textiles in the late
seventies, $eliance pursued a strategy of backward vertical
integration in polyester, fibre intermediates, plastics,
petrochemicals, petroleum refining and oil and gas exploration
and production to be fully integrated along the materials and
energy value chain.
The -roup,s activities span exploration and production of oil and
gas, petroleum refining and marketing, petrochemicals
Apolyester, fibre intermediates, plastics and chemicalsB, textiles
and retail.
16
$eliance en8oys global leadership in its businessesF The -roup
exports products in excess of 3&. *1 billion to more than *++
countries in the world. There are more than 01,+++ employees
on the rolls of -roup Gompanies. #a8or -roup Gompanies are
$eliance Industries ?imited Aincluding main subsidiaries $eliance
/etroleum ?imited and $eliance $etail limitedB and $eliance
Industrial Infrastructure ?imited.
Reliance Industries 0imited is India1s largest private sector
conglomerate 2and second largest overall3 with an annual
turnover of 4)5 65.. billion and profit of 4)5 !.#5 billion for the
fiscal year ending in March 200# making it one of India1s private
sector 7ortune ,lobal 500 companies& being ranked at 208th
position 2200#3.
9(:
It was founded by the Indian industrialist
;hirubhai Ambani in (.88. Ambani has been a pioneer in
introducing financial instruments like fully convertible debentures
to the Indian stock markets. Ambani was one of the first
entrepreneurs to draw retail investors to the stock markets.
<ritics allege that the rise of Reliance Industries to the top slot in
terms of market capitali=ation is largely due to ;hirubhai1s ability
to manipulate the levers of a controlled economy to his
advantage.
$hough the company1s oil'related operation forms the core of its
business& it has diversified its operations in recent years. After
severe differences between the founder1s two sons& Mukesh
Ambani and Anil Ambani& the group was divided between them
in 2008. In )eptember 200#& Reliance Industries was the only
Indian firm featured in the 7orbes1s list of >world1s (00 most
respected companies>
Subsidiaries of RIL
17
$eliance /etroleum
$anger 7arms ?imited
$etail Goncepts and &ervices AIndiaB /rivate
?imited
$eliance $etail
$eliance -lobal #anagement &ervices A/B
?imited
$eliance %iopharmaceuticals
$eliance -hatra8 &ervices
$eliance >ngineering Associates A/B ?imited

18
Reliance Retail Limite
$eliance is gearing up to revolutioni'e the retailing industry in
India. Towards this end, $eliance is aggressively working on
introducing a panIndia network of retail outlets in multiple
formats.
A world class shopping environment, state of art technology, a
seamless supply chain infrastructure, a host of uni9ue value
added services and above all, unmatched customer experience,
is what this initiative is all about.
The retail initiative of $eliance will be without a parallel in si'e
and spread and make India proud. >nsuring better returns to
Indian farmers and manufacturers and greater value for the
Indian consumer, both in 9uality and 9uantity, will be an integral
feature of this pro8ect. %y creating value at all levels, we will
actively endeavour to contribute to India,s growth.
The pro8ect will boast of a seamless supply chain infrastructure,
unprecedented even by world standards. Through multiple
formats and a wide range of categories, $eliance is aiming to
touch almost every Indian customer and supplier.
?ith a vision to generate inclusive growth and prosperity for
farmers& vendor partners& small shopkeepers and consumers&
Reliance Retail 0imited 2RR03& a subsidiary of RI0& was set up to
lead Reliance ,roup%s foray into organi=ed retail.
?ith a 2"@ share of world ,;A& retail is a significant contributor
to overall economic activity across the world. Bf this& organi=ed
retailing contributes between 20@ to 55@ in various developing
markets. $he Indian retail industry is pegged at 5 600 billion and
growing at over (6@ per year. Bf this& presently& organi=ed
retailing is about 5@. $his is epected to grow to (0@ by 20((.
RR0 has embarked upon an implementation plan to build state'
of'the'art retail infrastructure in India& which includes a multi'
format store strategy of opening neighbourhood convenience
19
stores& hypermarkets& and specialty and wholesale stores across
India.
RR0 launched its first store in Covember 2008 through its
convenience store format DReliance 7resh%. )ince then RR0 has
rapidly grown to operate 5.0 stores across (6 states at the end
of 7E 200"'0#. RR0 launched its first DReliance ;igital% store in
April 200" and its first and India%s largest hypermarket DReliance
Mart% in Ahmadabad in August 200". $his year& RR0 has also
launched its first few specialty stores for apparel 2Reliance
$rends3& footwear 2Reliance 7ootprints3& Fewellery 2Reliance
-ewels3& books& music and other lifestyle products 2Reliance
$imeout3& auto accessories and service format 2Reliance
AutoGone3 and also an initiative in the health and wellness
business through DReliance ?ellness%. In each of these store
formats& RR0 is offering a uni/ue set of products and services at
a value price point that has not been available so far to the
Indian consumer. Bverall& RR0 is well positioned to rapidly
epand its eisting network of 5.0 stores which operate in 5"
cities.
;uring the year& RR0 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. RR0 provides its customers with high /uality produce
that has better shelf life and more consistent /uality than was
available earlier. RR0 has made significant progress in
establishing state'of'the'art staples processing centres and
epects to make them operational by May 200#.
$hrough the year& RR0 also epanded its supply chain
infrastructure. $he <ompany is fully geared to meet the
re/uirements of its rapidly growing store network in an efficient
manner.
Recogni=ing that strategic alliances are going to be a key driver
to its retail business& in 7E 200"'0#& RR0 established key Foint
20
ventures with international partners in apparel& optical and office
products businesses. 7urther& RR0 will continue to seek
synergistic opportunities with other international players as well.
$his year& RR0 will continue its focus on rapid epansion of the
eisting and other new formats across India.
21
P)37.a( P();/.e, at Re./a-1e Reta/.
Management team
Name Designation
Mr. Mukesh Amban GhairmanH#anaging .irector
Nkh! R Mesh"an >xecutive .irector
H#a! R Mesh"an
>xecutive .irector
Ma$hum#a M%han#
.eputy -eneral #anager
Akasha& L%khan$e Area #anager=peration
H&ales and @&=
De'an$ra Cha"!a Dice/resident%usiness Cead,
#erchandise Cead
(ubn N%"r%)ee* Man+emen# &tate Cead Gategory
22
!ormats o" Reliance RETAIL
Reliance Fresh,
Reliance art,
Reliance !igital,
Reliance "rend#,
Reliance Footprint,
Reliance Wellness,
Reliance $ewels,
Reliance "imeout and Reliance %uper,
23

RELIANCE ;RESH

A&'A FR(%H A&'( &A!A)% (
Reliance fresh is the retail chain division of reliance industries of
India which is headed by Mukesh Ambani. Reliance has entered
into this segment by opening new retail stores into almost every
metropolitan and regional area of India. Reliance plans to invest
rs 25000 crores in the net ! years in their retail division and
plans to begin retail stores in "#! cities across the country. $he
reliance fresh supermarket chain is ril%s rs 25&000 crore venture
and it plans to add more stores across different g& and eventually
have a pan'India footprint by year 20((. $he super marts will sell
fresh fruits and vegetables& staples& groceries& fresh Fuice bars
and dairy products and also will sport a separate enclosure and
supply'chain for non'vegetarian products. Hesides& the stores
would provide direct employment to 5 lakh young Indians and
indirect Fob opportunities to a million people& according to the
company. $he company also has plans to train students and
housewives in customer care and /uality services for part'time
Fobs
*AC' +R),-!
24
"e can see many examples of businesses where, first we grow
and then think of expanding but
$eliance is 9uite different. $eliance has developed such huge
amount of resources and capital over the years that whenever it
steps into any segment it is not re9uired to wait for growing
signal, thats why it always thinks of expanding without any
boundaries. $eliance retail is next &tep by $I? which will be a
pan India pro8ect.
$eliance 7resh is the retail chain division of $eliance Industries
of India which is headed by #ukesh Ambani. $eliance has
entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India. $eliance
plans to invest $s 01+++ crores in the next : years in their retail
division and plans to begin retail stores in 5(: cities across the
country. The $eliance 7resh supermarket chain is $I?s $s
01,+++ crore venture and it plans to add more stores across
different g, and eventually have a panIndia footprint by year
0+**.
The super marts will sell fresh fruits and vegetables, staples,
groceries, fresh 8uice bars and dairy products and also will sport
a separate enclosure and supplychain for nonvegetarian
products. %esides, the stores would provide direct employment to
1 lakh young Indians and indirect 8ob opportunities to a million
people, according to the company. The company also has plans
to train students and housewives in customer care and 9uality
services for parttime 8obs.
The company is planning on opening new stores with storesi'e
varying from *,1++ s9 ft to 6,+++ s9 ft, which will stock fresh fruits
and vegetables, staples, 7#G- products and dairy products.
>ach store is said to be within a radius of *0 km of each other,
in relation to the concept of a neighbor store. Cowever, this is
only the entry rollout that the company has planned. %angalore
is said to have :+ stores in all by the end of the year.
In a dramatic change due circumstances prevailing in 3/, "est
%engal and =rissa, It was mentioned recently in @ews .ailies
that, $eliance $etail is moving out stocking. $eliance $etail has
decided to minimi'e its exposure in the fruit and vegetable
25
business and position $eliance 7resh as a pure play super
market focusing on categories like food, 7#G-, home, consumer
durables, IT, wellness and auto accessories, with food
accounting for the bulk of the business.
The company may not stock fruit and vegetables in some states,
=rissa being one of them. Though $eliance 7resh is not exiting
the fruit and vegetable business altogether, it has decided not to
compete with local vendors partly due to political reasons, and
partly due to its inability to create a robust supply chain. This is
9uite different from what the firm had originally planned. "hen
the first $eliance 7resh store opened in Cyderabad last =ctober,
not only did the company said the stores main focus would be
fresh produce like fruits and vegetables at a much lower price,
but also spoke at length about its ;farmtofork theory. The idea
the company spoke about was to source from farmers and sell
directly to the consumer removing middlemen out of the way.
26
FARM TO FORK
The $eliance retail company sources say it is setting aside
$s 1+,+++ crore to build its farmtofork linkage. $eliance
has drawn up plans for a presence in 5(: towns and 2,+++
mandi Awholesale marketB towns with *,2++ rural business
hubs to service these. It has already rolled out *55 $eliance
7resh stores across ma8or towns in ** states. According to
a company report, $I? is targeting a turnover of $s :+,+++
crore in the next few years.
27
TRADI
TIONAL MODEL O& RETAIL RELIANCE <&ARM TO
&ORK=
SUPPLY CHAIN MODELS of Reliance Retail
$eliance started its retail operations of $eliance 7resh
stores with following supply chain model. /rocuring directly
from the farmers and operating with moderate margin but
mass selling was key to $eliance fresh operation for first
28
few months. The following figure depicts the first $eliance
fresh model

RELIANCE ,RES-



W-OLESALE TRADING .WST/ I
$eliance formali'ed its second supply chain model to shift
itself from grocery retailer to grocery supplier by focusing and
establishing itself in #andis.
29
RELIANCE OWN
LOGISTICS
RELIANCE
FRESH
OUTLETS
RELIANCE
FRESH
OUTLETS
RELIANCE
FRESH
OUTLETS
PROCESSIN
G
UNIT/POINT
COLLECTIO
N
POINT/UNIT
F
a
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m
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r
s

O
w
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RF
RF
FARMERS
CATEGOR
Y 1
FARMERS
CATEGOR
Y 2
FARMERS
CATEGOR
Y 3
STEPS IN WTS MODEL0
*B $eliance has owned farms on contract basis for production
of specific crop which is decided after extensive research
depending on
&=I? G=@.ITI=@&,
G?I#AT> G=@.ITI=@&,
$>T3$@ =D>$ G=&T& I@G3$$>..
&o as to yield best possible results.
0B .ifferent vegetables and fruits from such farms are
collected through reliance own
?ogistics and brought to collection /rocessing centres
where 9uality check and other re9uired processing is done.

In processing centres workers wearing balaclavas, woollen
trousers and bulky 8ackets work inside a room kept at a
constant 6oG, peeling and chopping vegetables, spinning
them dry and then heaping them in small plastic packets
before placing them in plastic transport crates. At the other
end of the 1,+++s9m warehouse, men unload crates of fruits
from a truck pulled up to a spotless loading dock. A 9uality
control expert samples every tenth crateF if the fruits are good
a team will ready them for delivery within hours to $eliance
fresh stores around different places like 3./ and as far away
as Cyderabad and even #umbai Aformerly %ombayB. If they
are not, workers will inspect the entire shipment and discard
anything below standard.
6B #erchandise from these collection processing centers are
collected and loaded for "holesale mandis. As this
merchandise is to be made available by : A.# in morning
thus deliveries in trucks are sent at time depending uponI
30
T$A@&IT TI#>. J Time re9uired reaching destination i.e.
mandis.
#A$-I@ TI#>. J Time period between a truck reaching mandi
and then 3nloads. Gan be 0 to 6 hours.
LOADING AND UNLOADING TIME.
:B 7rom mandis where the trucks have been unloaded,
roadside vendors and pull carters %uy fruits and
vegetables to supply in households.
1B In case still some vegetables and fruits are not sold reliance
logistics own
Transportation sends them to reliance fresh stores.

SWOT ANAL#SIS
The Indian retail market accounted for 4 0++ billions. 7ood
accounts for over twothirds of the 40++billion Indian retail
market. Ket, it has seen less than * per cent penetration by
31
modern retail so far.
$eliance industries which always looking for new business
opportunities 8ust started a new era with its introduction of new
concept stores named $eliance 7resh with opening convince
store in high streets of %an8ara hills of Cyderabad. $eliance
7resh is very different from what modern retail has offered in
India so far and with this reliance is planning to establish strong
retail network in India in food and farm sector. They have started
with new eleven stores in the last week and they are thinking to
add *++ more stores to their feather by the end of this year.
?ets do a &"=T analysis on the $eliance 7resh.
%trengths.
$eliance is the first into enter into this unorgani'ed sector of
vegetables and fruits. According to them its intentions to
have*++) farm fresh foods in their new retail stores. It is also
adding shortly a 8uice bar, and even a large counter for pu8a
flowers. In fact, over 2+ per cent of the floor space has been
dedicated to fresh fruits and vegetables, the rest to other food
products like staples, spices, bakery, etc. %ut reliance has
decided not to add any bar soap or toothpaste and detergent in
its shelves. &o by using this strategy they are positioning
themselves different from other players of the industries like
7ood world, %ig %a'aar and @ilgiris. %ut over come the short
comings of these speciali'ed stores they are also introducing
new $eliance fullfledged supermarket called &hakhari %handar
which offers each and everything from the staple to soap. #ost
of the staples are under its own private label brand L !$eliance
&elect. There is a 1++g channa dal pack priced at $s 0(, a
1++g urad dal pack for $s 6E, all under $eliances own brand.
>xcepting a few packets of @estles #aggi, or #T$s masalas or
/epsis ?ays chips, there is very little shelf space given to the
big brand owners in the country. $easonI private labels offer far
better profit margin to the retailer than branded products of
32
7#G- companies. #ost of these outlets will need only 0,+++
1,+++ s9. ft. A supermarket may need as much as (,+++*+,+++
s9. ft.
Weakness.
This is definitely an interesting business venture but it may miss
out on the opportunity to capture a greater share of the
customers wallet. 7or customers, too, this could be irksome, as
they would have to visit another store to pick up essentials.
$eliance could easily fix this problem by adding a few small
counters for some basic nonfood products. According to their
official this format is not final one they are accepting the new
changes which are re9uired to attract the large number of
customers.
)pportunities
$eliance wants to build a highprofitability business and food is,
perhaps, the best venture to start. That is because the Indian
food supply chain is grossly inefficient. There are several
intermediaries, each of whom adds his own profit margin to the
cost. %esides, there is huge wastage in transit. This offers
potential for savings and profits. To reduce the cost and
increase the profit it has been sourcing out its re9uirements from
the farmers. 7or example, the leafy vegetables, brin8als,
tomatoes and green chilies in the %an8ara Cills outlet were
sourced directly from farmers in Dantimamdi, Ghevella and
nearby mandals in $anga $eddy district of Andhra /radesh.
The supply chain already has been backed by few hundred
farmers the number is estimated to touch million in next five
years. The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost. &maller stores
have two advantages. They bring down the cost of real estate
33
Aand increase profitsB. It is easier to find space for small
convenience stores in a 9uiet neighbourhood than for
supermarkets in high streets.
"hreats.
This model is engineered to clock a faster turnover of inventory
L $eliance expects consumers to visit the store at least twice a
week for their topup groceries. >ach store will have an
investment of $s 1+ lakh to $s 2+ lakh. 3nlike global retailers
who operate on thin margins, $eliance $etail is looking at a
fairly highmargin business model. .eliberately stopped short of
being a fullfledged supermarket rather, it has limited itself to a
food and grocery convenience store. They also have a threat
from the existing supermarkets which provides all the services to
its customers. 7or >xample 7ood world and @ilgiris also
provides food and beverages with other personal care products.
These convince are not existed in the present $eliance retail
stores.
CORPORATE SOCIAL RESPONSIBILITY
34
Today when most of the companies are busy in making profits by
any means, there are few
=nes who are focused to return this society, a part of what they
have earned through this society. $eliance retail is one of them.
7ollowing efforts of reliance retail are aimed at benefiting the
society making reliance socially responsibleI
*B $eliance $etail aims at recruiting people from the
underprivileged community in society. MCence, we are
planning to train students from corporation schools and
schools run by @-=s. And, we consider this as a part of our
corporate social responsibility,M he said.
Asked whether the company will take students on an
employment basis and pay them a stipend during the
course period, he said that actually, it is planning to charge
a Msmall feeM from those who want to 8oin the course Mas we
want to bring in some discipline and regularity among the
studentsM, and will reimburse that once they are inducted
into service.

0B 7arming in India is highly fragmented and sub8ect to
harsh climatic conditionsI once harvested, it is very difficult
to keep fruits and vegetables fresh. To secure high 9uality,
$eliance $etail is directly sourcing fresh agricultural
produce from thousands of farmers from villages through
Gollection Genters.
"ith this concept, $eliance has built a business model
generating shared value that links the company supply
chain more closely to poor farmers in Indian villages.
Reliance is providing a guaranteed market for the farmers%
produce& reducing transaction costs and training the
farmers in better and sustainable farming practices. This
initiative results in higher income and upgrading of skills for
the farmers, and reduced spoilage of produce Aup to 61
percentB and better 9uality products f or $eliance retail
stores.
35
6B $eliance retail has adopted ;farm to forkN theory which
means it is procuring directly from the farmers thus offering them
9uite reasonable prices for their produce as now no
intermediaries are involved. In return $eliance is giving farmers
information about how can farmers improve their productivity.
They have centers in villages who apart from providing
information make farmers aware of market rates of different
crops so that farmers can choose crops they want to sow to
become profitable. 7armers are provided technical help as well
like information about 9uality of seeds and fertili'ers.
Ma$or %layers in retail sector
36
Shoppers Stop:

&hoppers &top is the pioneer of pannation onestop retail
outlets. &tarting in *EE* with a single store in #umbai, it has now
developed more than 0+ stores Atotal retail space crossed the *
m mark in the second 9uarter of 7K+5B. The company has added
*,12(,:5E s9 ft of area during the year taking its total store area
to *,*5+,1:( as on #arch 0++5. The company has a wholly
owned subsidiary J Grossword J a specialty retail chain with over
60 stores spread across the country. This store specialises in
books, gift articles and stationery. .uring the 9uarter, Grossword
opened its first store and 0 !&top H -o stores at the #umbai
domestic airport. 7urther, it forayed into airport retailing through a
8oint venture with The @uance -roup A- of &wit'erland. The
company has also made an entry into the entertainment sector
by ac9uiring :1) stake in Time 'one >ntertainment /vt. ?td. The
recent moves by the company will widen the offering and derisk
its dependence on the flagship &hoppers &top stores.
Pantaloon:


Incorporated in *E(5, /antaloon $etail is among the pioneers in
chain retailing. It is the largest retailer in the country operating
61+ stores across segments in over :+ cities across the country
and constituting 1 m s9uare feet of retail space. &tarting out with
dedicated apparel stores A/antaloonB, the company has stores
37
across the crosssection of the society. The companys business
is broadly divided into 0 segments, ?ifestyle and Dalue retailing.
=n the apparels front it has /antaloon A6* departmental storesB,
Gentral #alls A: seamless malls as well as its other conceptsB.
These stores can be classified under !?ifestyle $etailing. =n the
general merchandise front it has %ig %a'aar A1*hypermarketsB,
7ood %a'aar A55 supermarketsB and 7ashion &tation A1 fashion
storesB and other delivery formats. These fall under !Dalue
$etailing.
more

The m%re. Ghain of supermarkets, are bright and clean stores,
at convenient locations with layouts that allow ease of navigation.
The product display is well organised and facilitates ease of
choice. The stores have been designed by 7itch, the leading
international retail design firm.
The stores promise a range of benefits to consumers and are a
solution to the many problems faced by housewives while
shopping for their daily needs. The retail offering from the Aditya
%irla -roup, has been crafted after indepth research of the
needs and expectations of the Indian consumers. m%re. is the
answer to the shopping needs of the Indian housewife who wants
a modern and convenient option in her neighbourhood, with an
attractive and consistent range of productsO m%re. assures
consumers the security of knowing that they are paying the best
price in the market for good 9uality products.
38
RPG Group:

$/- >nterprises is one of Indias largest business
conglomerates, with a turnover of 3&4 0.11 bn and assets worth
3&4 *.( billion. &ince its inception in*E5E, $/- >nterprises has
been one of the fastest growing groups in India with more than
0+ companies operating successfully in 5 business sectorsI
$etail, IT H Gommunications, >ntertainment, /ower,
Transmission, Tyres and ?ife &ciences. In 0++*, it established
!-iant Cypermarket


/rovogue AIndiaB ?td., A/I?B formerly Acme Glothing /vt. ?td was
incorporated in @ovember *EE5, converted in to a public limited
company in #arch 0++1. It deals with fabrics, dyestuffs,
chemicals and textile machinery. /I? operates in two core
industry segments. The first being designing, manufacturing and
selling branded readymade garments and other accessories
under the brand ,/rovogue,. The second business is export of
finished fabrics, dyestuffs, chemicals and textile machinery to
several markets in African continent.
39


Researc& O'$ective
40
To study consumer buying behaviour reliance fresh
customer of .elhi
To know about the consumer awareness towards $eliance
fresh.
41

Researc& Met&oolo(y
42
Resear1h Pr%b!em
To make a comprehensive study of $eliance 7resh Hknow the
%uying behaviour H of $eliance 7resh customers.
T&2e %3 resear1h
.escriptive type research has used to complete the pro8ect.
This research is base on fact finding en9uires and the variables
are totally independent and uncontrollable.
Da#a 1%!!e1#%n0
Prmar& Da#a
/rimary data of research are collected from direct resources
Acustomer of $eliance freshB through 9uestionnaire.
Se1%n$ar& Da#a
&econdary .ata which are used for research to know the history
scop of $etail industry are collected from already available
resources like net and other sources
Un'erse
3niverse of this research is reliance fresh customer of .elhi.
43
Sam2!n+ #e1hn4ue
$andom sampling is used for research pro8ect. I have given
e9ual weightages to my all respondent and chose them randomly
without any biased like gender, age, income culture.
Sam2!e s5e
:01 respondents has selected as sample si'e for research.
Da#a re2resen#a#%n #e1hn4ue an$ #%%!s

Golumns chart H /ie chart has used for representation.
44

)nerstanin( T&e *uyin( *e&aviour O" Reliance !res&
Consumers

45
De"inition
/urchase decision making pattern that is a complex amalgam of
needs and desires, and is influenced by factors such as the
consumer,s A*B societal role Aparent, spouse, worker, etc.B, A0B
social and cultural environment and norms, and A6B aspirations
and inhibitions.
6u&n+ 6eha'%ur is in the Advertising, #arketing, H &ales and
/urchasing H /rocurement sub8ects.
6u&n+ 6eha'%ur appears in the definitions of the following
termsI marketing research, advertisement AadB, AG=$@,
economic environment, activities, interests, opinions AAI=B and
consumer research.
6u&n+ 6eha'%ur appears in these other termI consumer
buying behaviour.
Moel o" *uyin( *e&aviour
46
Marke#
n+ O#her 6u&er7s 6u&er7s 6u&er7s
S#mu
! S#mu!
Chara1#
ers#1s De1s%n De1s%n
Pr%1ess

/roduc
t
>conomi
c Gultural
/roblem
recognitio
n
/roduct
choice
/rice
Technolo
gical &ocial
Informatio
n &earch
%rand
choice
/lace /olitical /ersonal
>valuatio
n
.ealer
choice
/romot
ion Gultural
/sycholo
gical .ecision
/urchase
timing

/ost
purchase
/urchase
amount

%ehaviou
r

"hen I have analysed the model of buying %ehaviour finding that
people of .>?CI are influenced by the marketing stimuli A: /sB
people are focused on price rather than product, place and
promotion, other factor which influenced people is the
technological advancement.
Cu!#ura! S%1a!
47
Pers%na!
culture
$eferenc
e -roups
Ps&1h%!%+
1a!
Gycle &tage #otivation
&ubculture 7amily >conomic /erception
Gircumstanc
es ?earning
?ife &tyle
%eliefs and
Attitudes
%3K>
$
$oles
and
&tatuses
/ersonality
and
&ocial
Glass &elf Goncept
$eference groups can have potent influence on behaviour in
general, and they may also be very influential on consumer
behaviour, considering the !Gonsumer -oods &egment. 7amily
and friends in specific are considered before making a decision
about purchasing a product. %ut their purchase decision depends
completely on selfopinion.
"here reference groups influence is operative, the advertiser
should stress not only the people who buy the product but also
those who influenced the purchasing decision.
The process may be viewed as starting when the consumer
engages in problem recognition. /roblem recognition occurs
when the consumer is activated by awareness of a sufficient
48
difference between his < her concept of ideal situation. The action
occurs only when the consumer perceives a sufficiently large
discrepancy between the actual and ideal states.
-iven that the consumer is aroused to action, the next state is
internal search for a 9uick and largely unconscious review of
memory for stored information and of an experience regarding
the problem. This information in the form of beliefs and attitude
influence the consumers preference towards band. If an internal
search does not provide sufficient information about
/roducts, or how to evaluate them, the consumer continues with
a more involved external search for information.
Any information stimuli are then sub8ected to information
processing activities. This process involves allocating attention to
available stimuli, deriving meaning from these stimuli. The
alternating evaluation phase involves comparing the information
gained in the search process for alternative product and brands
to the product 8udging criteria on standards the consumer has
developed. "hen such a comparison leads to favourable
evaluations, the consumer is likely to develop a purchase
intention towards that alternative that received the most
favourable evaluation.
A purchase process follows strong purchasing intentions. This
involves a series of selection, including the type of retail outlet as
well the specific brand on service to use. The consumers
49
purchase then leads to various outcomes. =ne such outcome is
satisfaction as a result of direct experience in using the brands.
&atisfaction will affect the consumers belief about the brand.
=ther outcome is dissatisfaction and post sale doubt.
#any ad agencies conducted an indepth study of consumer
buying behaviour and found that they all crave for peer
acceptance and parental noninfluence. %eyond this they are an
enigma

50


/01. +ender of the consumer
51
Male I 7emale
(50 2"5
#ale $ Female
!ata Collected2
.ata collected for this 9uestionnaire to
know the gender of customer of reliance fresh.
A-A34%5%6
.ata collected for pro8ect from :01 responded
in which 051 are female which are 2:.5) and *1+ are male
which are 61.0E) of total respondent
5nterpretation2
In total respondent we analyses that most
of the customer in this store is female and their demand always
consider at the time of taking the decision. Gompany should try
to attract new male customer by provide new scheme on their
customer
(). Age of customer
*+0+ 0*1+ 1*H
above
*06 06+ 50
52
%
&%
'%%
'&%
(%%
(&%
'%)(% (')&% &'$ above
!ata Collected2
.ata collected for this 9uestionnaire to
know the age of customer of reliance fresh.
A-A34%5%6
.ata collected for pro8ect from :01 responded in
which *06 are the age between *+0+ which are0(.E)
and06+are between age of 0*1+ which are1:.0E)and 50 are
between age of 1* H above which are *2.E ) of total
respondent
5nterpretation2
In total respondent we analyses that most
of the customer are youth .in my observation I found that most
new people believe in convenience shopping It help the
company to keep management such type which understand the
problem of customer easily and rectify the problem effectively.

(!). -%" %33er $% &%u sh%2
.aily A B week A B fortnightly A B once in month A B
53
8
98
:88
:98
;88
;98
Da!& Week ,%r#n+h#!& On1e n m%n#h

!ata Collected2
.ata collected for this 9uestionnaire to know the
shopping behaviour of customer of reliance fresh.
A-A34%5%6
.ata collected for pro8ect from :01 responded
in which 00 are like to purchase daily which are1.*)
and00:arelike to purchase weekly which are10.05)and (E are
likely to purchase fortnightly which are 0+.E), E+ likely to
purchase once in a month which are0*.*5) of total respondent
5nterpretation2
In total respondent we analyses that most
of the customer are likely to purchase on weekend .in my
54
.aily "eek 7ortnightly =nce in
month
00 00: (E E+
observation I found that more scheme should be provided on
weekend.



("). Wha# $% &%u m%s#!& sh%2 3%r a#
men#%ne$ s#%re<
55
8e#eta-le+ 9 : 4rocery 9 : co+metic $ro"uct 9 : all $ro"uct 9 :
Vegetable Grocery Cometic
pro!uct
All
pro!uct
"08 #$ %" %00
*egetable
+rocery
Cosmetic ,roduct
-ll ,roduct
!ata Collected2
.ata collected for this 9uestionnaire to
know the products which are like to purchase by the customer.
A-A34%5%6
.ata collected for pro8ect from :01 responded in
which 0++ customer are like to purchase all product which
are:5.++) and*+( are like to purchase vegetables which
are01.:*)and E2 are likely to purchase grocery 00.1 which are
00.1(.), 0* likely to purchase cosmetic product which are:.E)
of total respondent
5nterpretation2
In total respondent we analyses that most
of the customer are like to purchase all product in the store.
56
Gompany should try to retain the customer. And should increase
the variety o cosmetic productH grocery.

.9/. Pre3eren1e %3 sh%22n+<
Puality A B %rand A B /rice A B one stop shop
57
=ua!#& bran$ Pr1e One s#%2
sh%2
:8; :>? 9@ :>8
.uality
brand
,rice
!ne sto, sho,
!ata Collected2
.ata collected from this 9uestionnaire
to know the preference the shopping
A-A34%5%6
.ata collected for pro8ect from :01 responded
in which *6: customer are believe in reliance brand which
are6*.1+) and*6+ are like to purchase in one stop shop which
are 6+.1:)and *+0 are like to purchase 9uality product which
are 0:.++), only 1E respondent consider price which are
*6.+(.).
5nterpretation
In total respondent we analyses that most
of the customer are believe in reliance brand like to purchase
9ualitative product in stop shop. Cere I observed that people
want to purchase fresh and original product and want better
service.
58


.A/. "h1h s#%re $% &%u ke2# n 2re3eren1e
3%r 2ur1hasn+
59
$eliance 7resh A B %ig apple A B other A B ?ocal market
L%1a!
marke#
Re!an1e
3resh
6+ a22!e O#her
;?? B> B8 :B
%
&%
'%%
'&%
(%%
(&%
Reliance fresh Big a,,le Local mar/et other
!ata Collected2
.ata collected from this 9uestionnaire
to know the preference of the purchasing Acomparison of store to
otherB.
A-A34%5%6
.ata collected for pro8ect from :01 responded
in which 0:: customer are like to purchase from local market
which are15.5:) and (6 are like to purchase from reliance fresh
which are*E.1*)and (6 are likely to purchase from %ig apple
which are *(.(0.), *( likely to purchase other which are:.0)
of total respondent
5nterpretation
In my observation I found till today
organised retail sector didnt penetrate the market. Gompany
should try to open new convenience store and provide more
60
scheme and good service to customer to penetrate the market.
Initial it may be costlier, but it will give long term benefit.
.C/. D% a$'er#semen# an$ 2r%m%#%n n3!uen1e &%ur
sh%22n+ $e1s%n<
Kes A B @o A B
61
Des N%
>@8 >9
%
&%
'%%
'&%
(%%
(&%
0%%
0&%
1%%
yes No
!ata Collected2
.ata collected from this 9uestionnaire
to know the effect of promotion scheme on purchasing.
A-A34%5%6
.ata collected for pro8ect from :01 responded
in which 6E+ customer are like promotion scheme which
areE*.52) and 61 are those people which say promotion
scheme doesnt effect on purchasing.
5nterpretation In my observation I found promotion
scheme is must to sustain customer attract customer H influence
the purchasing.
.B/. Are Pr%m%#%n s1heme eas& #%
un$ers#an$
Kes A B @= A B some time A B
62
Des n% S%me #me
;:B B@ ::B
yes
no
Some time
!ata Collected2
.ata collected from this 9uestionnaire
to know display of promotion scheme..
A-A34%5%6
.ata collected for pro8ect from :01 responded
in which 0*( customer say yes which are1*.0E) and (E are
those which say no which are 0+.E: and **( say some time.
5nterpretation2 Gompany should try making promotion
scheme easy understandable, promotion scheme should be in
both in >nglish H Cindi
63
.@/. -%" !ke!& are &%u #% re1%mmen$
Re!an1e ,resh #% a 3ren$ %r re!a#'e<
W%u!$ &%u sa& #he 1han1es areO
>xcellent A B -ood A B 7air A B /oor A B
>xcellent -ood 7air /oor
0E *E( *E+ (
64
%
&%
'%%
'&%
(%%
23cellent +ood Fair 4oor
!ata Collected2
.ata collected from this 9uestionnaire
to know the satisfaction level of customer.
A-A34%5%6
.ata collected for pro8ect from :01 responded
in which 0E customer say excellent which are2.() and*E ( say
good which are :2.2), *E+ say fair which are ::.5) and (
customer are those say poor
5nterpretation

In my observation I found that only :2.2) customer are fully
satisfied from the store company should try satisfy the customer
by providing better service and rectify their problem immediately.
65
.:8/. Wh1h 3%rm %3 a$'er#semen# $% &%u
#hnk s m%s# e33e1#'e<
/rint A B TD A B $adio A B telephone A B
/rint TD $adio Telephone
5: **E 12 *52
66
%
(%
1%
5%
6%
'%%
'(%
'1%
'5%
'6%
,rint 7* Radio 7ele,hone
!ata Collected2
.ata collected from this 9uestionnaire
to know the better advertisement mode of promotion.
A-A34%5%6
.ata collected for pro8ect from :01 responded
in which **E customer say TD which are0() and 5: say print
which are *5.:), 12 say $adio which are *6.*5) and *52
customer are say telephone.
5nterpretation 2

According responded result company can choose telephone as
best for advertisement and call indusial for attracting the
customer

67
.::/. .id you get help from G&A when
askedO
Kes A B @o A B some time A B @ever A B
Kes @= &ome time @ever
*E0 E1 *0: *:
68
%
&%
'%%
'&%
(%%
yes N! Some time Never
!ata Collected2
.ata collected from this 9uestionnaire to
know about G&A performance.
A-A34%5%6
.ata collected for pro8ect from :01 responded
in which *E0 customer say yes which are :1.*) and E1 say no
which are 00.61), *0: say some time which are 0E.*5) and
*:customer are say never which are 6.01).
5nterpretation2

According respondent customers are not fully satisfied company
should recruit new skilled employee for better performance.
69


70


!inin(
*#a'ority of customers here is female.
0 #a8ority of customers are young.
6#a8ority customers like to purchase all goods from $eliance
fresh.
: Gustomers like one stops shopping.
1?ocal market till today is the first choice of customer.
71
2Advertisement is the biggest way to attracting the customer.
5/romotion scheme not so easy to under stand for customer.
(#ost of customer is not fully satisfied with store.
ETele phone is the best way for attracting the customer.
*+ &hortages of skilled workers.

72


L/0/tat/)-,
*'e $ro.ect 'a+ +ome limitation+ -ecau+e it i+ totally -a+e" on
effort+ of in"ivi"ual+; &eo$le+ may -e carele++ an" may not #ive correct
an+!er to t'e <ue+tion+5 -ecau+e of +o many rea+on+;
73
2t i+ totally -a+e" on $er+onal effort+ of in"ivi"ual+;
Some of t'e con+umer+ are una-le to un"er+tan" t'e
<ue+tionnaire;
=an#ua#e i+ one of t'e !or+t $ro-lem5 +ome of t'e con+umer+
are una-le to un"er+tan" En#li+';
Some con+umer+ are not intere+te" in fillin# <ue+tionnaire;
74


Su((estion
* #ore promotion scheme should be used to penetrate the
market.
0 &killed employees should be higher because mostly
customers are young.
6 /romotion scheme should in such way that customer can
understand easily.
: &ervice of store should be providing in such way which
full the need of the customer.
75

A%%enix
Reliance !res&
>ue+tionnaire
?A(E6
4E?DE,6
A4E 6 (ont'ly income6
16 @o! offer "o you +'o$
76
Daily 9 : !ee 9 : fortni#'tly 9 : once in mont' 9 :
26 )'at "o you mo+tly +'o$ for at mentione" +tore
8e#eta-le+ 9 : 4rocery 9 : co+metic $ro"uct 9 :
36 )'ic' +tore "o you +'o$A
,eliance 3re+' 9 : 1i# a$$le 9 : ot'er 9 : =ocal maret
46 &reference of +'o$$in#
>uality 9 : 1ran" 9 : &rice 9 : one +to$ +'o$
56 Do a"verti+ement an" $romotion influence your +'o$$in# "eci+ion
Be+ 9 : ?o 9 :
66 Are &romotion +c'eme ea+y to un"er+tan"
Be+ 9 : ?% 9 : +ome time 9 :
76 @o! liely are you to recommen" ,eliance 3re+' to a frien" or relativeA
)oul" you +ay t'e c'ance+ areA
Excellent 9 : 4oo" 9 : 3air 9 : &oor 9 :
86 Are t'e &rice of ,eliance fre+' i+ lo!er t'an t'e ot'er com$etitor

Be+ 9 : ?o 9 : E<ual 9 : no i"ea 9 :
96 )'ic' form of a"verti+ement "o you t'in i+ mo+t effectiveA
&rint 9 : *8 9 : ,a"io 9 :
106 Di" you #et 'el$ from CSA !'en a+e"A
Be+ 9 : ?o 9 : +ome time 9 : ?ever 9 :
77
Re"erences

,eferre" -oo+6
(aretin# ,e+earc' C &aneer+elvam
,e+earc' (et'o"olo#y C C;, Dot'ari
&rinci$le+ of (aretin# C &'ili$ Dotler
Re;e((e8 ,/te-
!!!;ril;com
!!!;#oo#le;com
!!!;!ici$e"ia;com
78


79