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COMPANY PROFILE

"Growth has no limit at Reliance. I keep revising my vision

Only when you can dream it, you can do it."

- Dhirubhai H. Ambani

Founder Chairman Reliance Group

(December 28, 1932 - July 6, 2002)

INRODUCTION:

The Reliance Group, founded by Dhirubhai H. Ambani (19322002), 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$ 25 billion. The flagship company, Reliance Industries
Limited, is a Fortune Global 500 company and is the India‟s largest private sector company.
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 and retail.

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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$ 15 billion to more than
100 countries in the world. There are more than 25,000 employees on the rolls of Group
Companies. Major Group Companies are Reliance Industries Limited (including main
subsidiaries Reliance Petroleum Limited and Reliance Retail limited), Indian Petrochemicals
Corporation Limited and Reliance Industrial Infrastructure Limited.

COMPANY’s VISION, MISSION & VALUES:

Vision

• Through sustainable measures, create value for the nation,

• Enhance quality of life across the entire socio-economic

• Spectrum and help spearhead India as a global leader in

• The domains where we operate.

Mission

• Create value for all stakeholders

• Grow through innovation

• Lead in good governance practices

• Use sustainability to drive product development and enhance operational efficiencies

• Ensure energy security of the nation

• Foster rural prosperity


Values

• Our growth and success are based on the ten core values of Care, Citizenship,
Fairness, Honesty, Integrity, Purposefulness, Respect,
Responsibility, Safety and Trust.

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Reliance Retail Ltd

It is a subsidiary company of Reliance Industries. Founded in 2006 and based in


Mumbai, it is the second largest retailer in India. Its retail outlets offer foods, groceries,
apparel and footwear, lifestyle and home improvement products, electronic goods, and farm
implements and inputs. The company‟s outlets also provide vegetables, fruits, and flowers. It
focuses on consumer goods, consumer durables, travel services, energy, entertainment and
leisure, and health and well-being products, as well as on educational products and services.
Reliance introduced several formats in the marketplace to cater to needs of common
people, which includes Reliance Fresh, Reliance Super, Reliance Footprint, Reliance Timeout,
Reliance Jewels, Reliance wellness, Reliance Mart and Reliance Digital, to name a few.
In addition to this, the Reliance Retail also entered into a treaty with Apple, which is a leading
Information Technology company, to set up a series of Apple Specialty Outlets branded as I
Store, with its first ever store in Bangalore.

Subsidiaries and Division

There are various Subsidiaries & division under Reliance Retail.


Following is the list of all of them:

1. Reliance Fresh - Retail Outlets of fruits, Vegetables & Groceries.


2. Reliance Digital - Consumer Electronics retail Store
3. Reliance Jewels - Jewellery

4. Reliance Time Out - Lifestyle store of Books, Music, Movies, Toys,


Gaming etc
5. Reliance Trends - Apparel and Clothing

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Financial Position of Reliance Retail
Reliance had a turnover of Rs. 10,800 crores in the financial year 2012-13.
Approximately 56% of this revenue came from its ‘value and other’ segment that
operates grocery chains like the Reliance Fresh, Reliance Super and
Reliance Hyper.Reliance Retail has announced revenues of Rs. 3,474 crore for the
first quarter of 2013, showing 53% jump from 2012. The company also reported
operating profit of Rs. 70 crore for the same quarter.

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Reliance Fresh

Reliance Fresh, a convenience store, 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.
“The store is for everyone. Prices are affordable for everyone” Reliance Industries Ltd
president and chief executive (foods business) Bijou Kurien told reporters after unveiling the
Reliance Fresh brand. They choose Hyderabad to test waters, as the city offers real estate at
a price that does not quite pinch. They selected the cream crowd from pioneers in organized
retailers to head the organization. With such a strong foothold, they ventured and their cash
counters clicked Rs 3.5 to Rs 6.5 lakhs per day and some outlets at prime locations are
averaging Rs 5 lakhs per day. Today they are spread throughout the country, like, Bangalore,
Chennai, New Delhi, Gurgaon, Faridabad, Hyderabad, Jaipur, Mumbai, Madurai, Cochin,
Trichur, Calicut, Chandigarh, and Ludhiana. Reliance Fresh stores, ranging from 2,000 to 5,000
sq feet, provide customers with a variety of fresh fruits, vegetables, staple foods, fast moving
consumer goods and other products in a world-class Ambience. The stores are already selling
over 1,000 tones of fresh produce daily and also 250 categories of commodities. They
aggressively partnered farmers by following a farm-to-folk strategy to ensure fresh fruits and
vegetables at affordable prices. The company procures the produce directly from the
farmers, seeking to reduce the 40% wastage that occurs through the traditional supply chain.

Besidestores provide direct employment to 5 lakhs young Indians and indirect job
opportunities to a million people, according to the company. The company also has plans to
train students and housewives in customer care and quality services for part-time jobs.

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Reliance Fresh – Vision, Mission & Objectives Vision:

Vision to generate inclusive growth and prosperity for farmers, vendor partners, small
shopkeepers and consumers, Reliance Fresh, a subsidiary of RIL, was set up to lead Reliance
Groups foray into organized retail. Since its inception in 2006, Reliance Fresh has grown into
an organization that caters to millions of customers, thousands of farmers and vendors. Based
on its core growth strategy of backward integration, Reliance fresh has made rapid progress
towards building an entire value chain starting from the farmers to the end consumers.

Mission:

Its mission is to delight the customers every visit. Reliance fresh will continue to provide
unprecedented value to customers across all its formats and stores. Its mission is to grow
through value creation.

Objectives:

• To get a sense of how well the company is serving customers.

• Offer our customers the widest range of fruit and vegetables at the best prices in the
neighbourhood

• Offer consistent high quality, unbeatable freshness and great service so that our
Customers know that we can be trusted every day.

• To utilize customer feedback and provide the company with the tools That is customized
to measure and meet the specific customer perceptions And needs.

• The chief objective of Reliance Fresh stores is to provide customers first-rate household
products at affordable rates.

• At the same time, the company spares no effort to safeguard the interest of the farmers
and manufacturers.

• The producers get a chance to sell their products directly to the merchandiser, and that
too at the best price.

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History of Reliance Fresh
The Reliance Retail had to face various difficulties before the launch of Reliance fresh,
because of the various circumstances prevailing in Orissa, West Bengal and UP, along with
the news focusing on the dearth of vegetables and fruits stocks. The retail business of
Reliance then minimized its exposure in vegetable and fruit business, as a result established
Reliance fresh positioning a pure super market play focusing on various categories like IT,
consumer durables, home, FMCG and food.

The retail company of Reliance may not supply the vegetables and fruits in a few states, the
Reliance Fresh decided to not to race with local wholesalers partly because of the political
reasons as well as its incapability to maintain a healthy supply chain.

The basic reasons for Reliance Industries Limited (RIL) choosing foods and vegetables for
entering into retailing.

Firstly, it wanted to go after the very core of the great Indian retail Opportunity. Food
accounted for over two-thirds of the $200 billion Indian Retail market and yet, it had
seen hardly any penetration by modern retail so far.
Second, its aim was to build a high-profitability business and food was perhaps the best
place to start.
Third, the grossly inefficient food supply chain provided a well resourced and well
managed organization like RIL with an opportunity to think of amending the flaws
which would also make business sense. In the traditional supply chain in India, there
were several intermediaries, who added their respective profit margin to the cost.
Besides, there was huge wastage in transit. This offered potential for savings and profit
sand Reliance Fresh was a Step in that direction. Reliance fresh was founded on 30th
October 2006 having its head quarter in Mumbai.

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Growth of Reliance Fresh
The first ever a Reliance Fresh store was established in Hyderabad, wherein the company,
mainly focused on the fresh produced vegetables and fruits at comparatively low price along
with an introduction of farm to fork theory.
This was the idea, which was anticipated by the company was to take the supply direct from
the farmers and then sell straightaway to the consumers removing the middle-men off the
beaten track.

With an idea to produce inclusive prosperity and growth for farmers, consumers, small
shopkeepers and vendor partners, Reliance Retail was set up in order to lead the foray of
Reliance Group into an organized retail.
Product Range:

• Vegetables and Fruits: This is the specialty of the store as they provide fresh fruits
and vegetables and a lower rate than the market price.

• Household items: In the store one will get all the household items required
sometimes they maybe of a slight higher price but reliance fresh assure quality of these
items.

• Food and Beverages: In this area of product line reliance fresh stocks all the
premium brand of food, and beverages it also sells its own brand of food and beverages
in their stores and also supplies their private label to other retail stores.

• Groceries: In this sector reliance fresh is promoting its private label as they are
promoting their own brand and they do the packaging of the product and then labels it
privately and then sells it at a premium as compared to the loose items.

• Dairy products: The dairy products in some location are procured from the farmers
themselves and at some places it is procured by the manufacturer. One can get variety
of dairy products in these stores.

• Refrigerated product :This Refrigerated line is dominated by the brands available in the
market and very less private labeling is done.

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• Non- Food items: Here we get many petty non food items at a premium than
market price.

CHAPTER- III

Title of the Project:

"Customer Satisfaction Study at Reliance Fresh".


Objectives:
➢ To analyze the socioeconomic profile of Organized retail customers purchasing
commodities from Reliance Fresh.
➢ To study the Factors influencing the preference of organized retail outlet.
➢ To analyze the overall performance of the Reliance Fresh on chosen
parameters.
➢ To make recommendations to improve the competitive position of the Reliance
Fresh in Hyderabad.

Scope of the study

The study is completely focused upon the objectives. The result obtained from the objectives
will be helpful to the organization in knowing the different opinions of the customers about
the company‟s products and services. The study will also be helpful for the company to take
steps for solving the issues related with problems in the service offered. In addition, this will
be useful in finding out the valid steps to trigger the sales. Lastly, the study will also be a
corner stone for improving ideas to bring up positive results in customer satisfaction. The
study was undertaken at the Reliance Fresh outlet located at Malkajgiri, Hyderabad by
surveying the visiting customers eliciting their opinions on various parameters affecting their
satisfaction level.

REVIEW OF LITERATURE
The studies on "A Study of the factors Influencing buying Behavior Of Organized Retail
Consumers At Reliance Fresh" are very few and scanty. The review of literature available
provides framework for analytical procedure to be followed and feasible solutions can be

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produced. Keeping in view the objectives of present study, the project work done
regarding the employees opinions reviewed and presented under the following heads.
➢ To analyze the socioeconomic profile of Organized retail customers purchasing
commodities from Reliance Fresh.

➢ To study the Factors influencing the preference of organized retail outlet.


➢ To analyze the overall performance of the Reliance Fresh
➢ To make recommendations to improve the competitive position of the Reliance
Fresh in Hyderabad.

Malati, Maheshwari & Jain, (2012) found that customer satisfaction has become
a major source of concern in retail business. The entry of foreign retail players into the Indian
market has made it tough for the Indian players. To keep pace with the demands of the new
age customers, the retail outlets have to devise new strategies and techniques in
understanding their needs and fulfilling their requirements. It was proposed that quality of
service is an important indicator of customer satisfaction. Measuring service quality involves
objective feedback from existing customers. The study is based on the five overall dimensions
of service quality and the extent to which the customers expect and perceive services
provided by two retail outlets Reliance Fresh and More. This paper aims to understand the
service quality gaps of these outlets with respect to the customer expectations and
perceptions. The study gives useful and innovative insights to boost customer satisfaction
towards Reliance Fresh and More.
Wani and Tariq Wani (2011) in their study entitled „A study of comparative
customer satisfaction with special reference to retail outlets of Big Bazaar and Reliance Mart
in Pune city‟; found that the competition among the retail outlets have greatly affected the
customer satisfaction.

Dinesh Kumar & Thirunavukkarasu (2012) conducted a study on the awareness


of Reliance fresh among the customers. The study mainly concentrated on general price
level, quality about products, overall satisfaction about Reliance fresh, general awareness,
and consumer preferences of Reliance fresh. The study analyzed the primary data collected
through a structured questionnaire with a sample size of 50 selected through Simple random
sampling method and concluded that customer awareness play dominant role in ensuring
their satisfaction.

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Michael Conklin, Ken Powaga and Stan Lipovetsky, (2004) A problem of
identifying key drivers in customer satisfaction analysis is considered in relation to Kano
theory on the relationship between product quality and customer satisfaction using tools
from Cooperative Game Theory and Risk Analysis. We use Shapley Value and Attributable
Risk techniques to identify priorities of key drivers of customer satisfaction, or key dissatisfies
and key enhancers. We demonstrate the theoretical and practical advantages of Shapley
Value and Attributable Risk concepts in elaborating optimal marketing strategy.
RAMACHANDRAN & GOKILA (2013) reported that Retailing is the largest
private industry in India and second largest employer after agriculture. The sector contributes
to around 10 per cent of GDP and 6-7 per cent of employment. With over 15 million retail
outlets, India has the highest retail outlet density in the world. This sector witnessed
significant development in the past 10 years – from small unorganized family-owned retail
formats to organized retailing. Liberalization of the economy, rise in per capita income and
growing consumerism have encourage larger business houses and manufactures to set up
retail formats; real estate companies and venture capitalist are investing in retail
infrastructure. Many foreign retailers have also entered the market through different routes
such as wholesale cash-and-carry, local manufacturing, franchising, test marketing, etc. With
the growth in organized retailing, unorganized retailers are fast changing their business
models and implementing new technologies and modern accounting practices to face
competition. Productivity and efficiency in retail operations lowers price level and reduce
distortions in the price structure. Through backward and forward linkage, performance of
retailing services affects the performance of interlinked sectors such as tourism, recreational
and cultural services, manufacturing of consumers goods agro-good producing industries etc.
The present study is undertaken to understand the customer preference and satisfaction
towards retail stores in Coimbatore city. Descriptive study was carried out by using a
questionnaire and the collected data were analyzed by using Average rank, ANOVA and Chi
square test.

U. Dineshkumar and P.Vikkraman, (2012) analyzed in their study that Customer


satisfaction is widely recognized as a key pressure in the formation of consumers' future
purchase intentions. Satisfied customers are also likely to tell others of their favorable
experiences and thus engage in positive word of mouth advertising. The present study aims
to investigate customer satisfaction in the organized retail outlets in Erode city of Tamil Nadu

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state in India. The objectives are to identify the determinants of customer satisfaction in the
organized retail outlets in Erode city, to identify the attitude and behavior of the customers
those who are purchasing in organized retail outlets, and to study about the future prospects
of organized retail outlets in the city. Customer satisfaction is a significant subject for most
marketers. A total of 200 questionnaires have been randomly distributed to retail customers.
Using descriptive statistics method, cross table analysis, chi-square test and correlation
method (to compare between different means) the data collected is analyzed. The result of
this analysis suggests the degree of customer satisfaction in terms of services provided by
organized retail outlets in Erode.

UBEJA, ( 2013) studied that the retailing sector in India has undergone significant
transformation in the past ten years. The organized retail industry in India is to grow 40 per
cent annually and would triple or four times in size by 2013-2014. Retailing is gradually
inching its way towards becoming the next boom industry. The customer satisfaction process
is a complex phenomenon. The purchase of goods or services includes a number of factors
that could affect each decision. Customer satisfaction is more complex and even more
important for retailers today than in past. The objectives of this study were to investigate the
effects of sales promotion mix customer satisfaction in shopping malls of Jabalpur city and to
study the variations in these factors across gender wise. Mall intercept survey was conducted
to study of sales promotion mix and group of factors on customer satisfaction in shopping
malls of Jabalpur city. The sample included 200 active mall shoppers. The sales promotion
mix on customer satisfaction were identified by a structure questionnaire and captured in 5
factors of sales promotion mix. The study will help the managers of shopping malls to
understand the underlying sales promotion factors on customer satisfaction of the shoppers
in the malls and help them to craft their marketing strategies, also study will help to
understand the factor. Profiling customers by their choice of sales promotion mix provide
more meaningful ways to identify and understand various customer segments and to target
each segment with more focused marketing strategies.

Gobiraja & Nimalathasanb, (2012) says that Every organization is ready to pay any
means to identify and understand the customers and their needs. It is an effective reaction of
the consumers when their desires and expectations have been either met or exceeded in the
course of experiencing the service. In the context of a retail supermarket, satisfaction could
be interpreted as just meeting the expectations of the customers, not any sort of exceeding
of failing short of the expectations. Most of the retailers try to achieve competitive

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advantage by taking the responses of the customers beyond the level of „just satisfied‟
towards „exceeding their expectations‟. Therefore, this study attempts to fill this gap by
examining the relationship between customer satisfaction and customer loyalty in leading
super markets in United Kingdom (UK). Operational hypotheses were formulated. The first
hypothesis (H1) is supported by the results, as a positive correlation was found between the
two variables; customer satisfaction and customer loyalty. In addition, the second hypothesis
(H2) is sustained by the results, as a regression was originated between the two variables; the
result reveals that customer satisfaction has great impact on customer loyalty. The
contribution of this study to the literature is that of customer satisfaction and loyalty
outcome not only other sectors but in retail super markets in UK.

DR. RAJKUMAR & MISS PRIYANKA, (2012) Nowadays all the companies have
realized the significance of customer-cantered philosophies. One of the key challenges for
them is how they manage service quality, which holds a great importance to customer
satisfaction. Therefore the role of the service quality in the success of organized retail
businesses cannot be denied. It is vital for the retailer managers to have a good
understanding on what exactly the customer wants. Expectations are well known to service
marketers as most definitions of service quality revolve around “meeting or exceeding
customer expectations”. Customers‟ evaluation of the service quality that they receive is
conceptualized as being influenced by their prior expectations. This section describes
importance of service quality in those companies involved in organized retail , relationship
b/w customer satisfaction and behavioral intention.

4.Chapter Research Methodology

Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation. Research is an academic activity and as such
the term should be use in technical sense. According to Clifford Woody research comprises
defining and redefining problems. Formulating hypothesis and suggested solutions,
collecting, organizing and evaluating data, making deduction and reaching conclusion, and at
last carefully testing the conclusions to determine whether they fit the formulating
hypothesis.
4.1 Location and study area

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Location- Malkajgiri

District- Hyderabad

The survey was carried on at Malkajgiri store of Hyderabad. They offer wide ranges of Fruits
and Vegetables including Green Vegetables. They are: Brinjal (Brinjal round, Brinjal long Brinjal
Nagpur), Chilli (Green Chilli, Bhajji Chilli, Red Chilli), Coccinia, Cluster Beans, French Beans,
Local Beans, Drum Stick, Tomato, Potato, Cauliflower, Cabbage, Ridge gourd, Bitter gourd,
Bottle Gourd, Onion, Lady finger, Carrot raw Banana etc..,,,, Depending upon the seasonal
availabilities.
Fruits : Banana, Water melon( Green and ) Muskmelon, Orange, Mosambi, Grapes(Black,
Green), Mango, Sapota Exotic: Sweet Tamarind,
Oranges, Kiwi, Pear, Baby corn, Mushrooms etc..,,,,

4.2 Year and Time of Project

The project work was carried out on 01-03 to 10-03-2019.

4.3 Sampling Technique

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As there was huge footfalls at Reliance fresh, due to the time constraint, most of the
respondents couldn't respond hence the sampling technique, Non Probability- Convenience
Sampling method is adopted to progress the study.

Sample Unit:

Retail Consumer.

Sampling Size:

150 Retail Consumer

Sampling Method:

Non Probability- Convenience Sampling method Sample Design:


Type of Consumer No. of Consumer

Retail 150

Total 150

Data Analysis Technique:

Simple tools of analysis like mean, Percentage, Frequency and Analysis have been used to
analyse data.

No. of Respondents

Percentage = x 100

Total Respondents

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4.4 Sources of Information:- Primary

Information:

Data was collected using survey method by conducting personal interviews through
structured questionnaire with organized retail consumer visiting Reliance Fresh.

Secondary Information:

The secondary source of data provided insight to understand and define the nature of the
problem. secondary data was collected through various sources like Company Website,
Magazines, Internet source, Store leaflet Government Publication Reports. Various reports
and articles from the internet provided the information regarding the behaviour of retail
consumers and about area, factors which influencing consumers in Hyderabad.

Instrument of Data Collection:

Structured Questionnaire was used for the collection of primary data. Both open ended
question and multiple choice questions should be involved in questionnaire. In open ended
questions consumers was free to answer and in multiple choice questions respondents were
offered various options to choose from.
4.5 Statistical Analysis

4. 5.1Tabular and graphical analysis

Simple Statistical Tools like tabular analysis and graphical method (through bar graph,
pie graph, and line graph by using MS
Excel).

4.6 Limitations of the study:

Certain Limitations do creep in a research study due to constraints of the time,


money and human efforts, the present study is also not free from certain limitation, which
were unavoidable.

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Although all effort were taken to make the result of the work as accurate as possible as
survey, but the survey has following constraints.

➢ The research was conducted only in one outlet of Reliance Fresh in Hyderabad city.
So, the findings and suggestions may not be applicable to other cities.

➢ Due to very large size of the population, only a selected sample of customers could be
contacted; and hence they may not be the true representatives of the population.

➢ Due to fast pace of life, some customers were not able to do justification to the
questionnaire.

➢ The data was collected solely on the basis of information given by consumers selected
in the sample.

➢ Personal biases of the consumers might have come while answering the questionnaire

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Chapter- 5
5.1 Data Analysis and Interpretation:

Research in retail is very important, as customer preferences and choices are dynamic and
change frequently, the retail company needs to understand these before redesigning its
processes for enhancing business and many more. Since customer interaction takes place at
the store and nearby store, there is a big opportunity to gather first-hand information and
feedback from customers through research and survey.

I have done a market field survey on Reliance Fresh. I have surveyed around 150 respondents
of Hyderabad who came to visit Reliance Fresh. A specific questionnaire is prepared for the
customers and data is obtained from them by moving around big bazaar and personally
interacting with them. The customers gave me valuable information regarding their
preference to retail outlet, factors consider on purchasing Groceries, Fruit & Vegetables and
their consumption pattern in Reliance Fresh. I collected all the information that is required
for the study and proper analysis is done.

All the analysis and its interpretation are discussed below. Each of the analysis is done as per
the information obtained from the customers and a serious interpretation has been done to
best of my effort.

The major objectives of analysis of the data are:

✓ To evaluate and enhance data quality.


✓ Describe the study population and its relationship.
✓ Examine effects of other relevant factors.
✓ Seek further insight into the relationship observed or not observed.
✓ Evaluate factors impact and importance.

1- Objective
To analyze the Socioeconomic Profile of Organized Retail Consumers
Purchasing Commodities From Reliance Fresh

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5.1.1 Target Customers- Gender Wise:-

Table No. 51.1 Gender of target Customer n= 150


Gender of Respondents

Gender No. of Respondents % of Respondents

Male 44 29.3

Female 106 70.7

Total 150 100

Figure. No. 51.1 Gender of target Customer n= 150

Gender
70.6

29.3

Female Male

Interpretation:

From the above chart, out of 150 respondents who visit Reliance Fresh the larger column is
occupied by the respondents who are Male that is 70.6% while 29.3% are Female. By this
we can say that due to dual incomes, even the male are participating in the household work.

5.1.2 Target Consumers - Age Wise:-

Table No. 5.1.2 Age group of Customers: (n=150)

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Age group of Respondents

Age group No. of Respondents % of Respondents

18-25 9 6

26-40 48 32

41-50 53 35.5

Above 50 40 26.7

Total 150 100

Figure. No. 5.1.2 Age group of Customers: (n=150)

Age Group
35.3
32
26.6

18-25 26-40 41-50 Above 50

From the above graph, we can clearly see that out of 150 respondents,
35.3% respondents are under 41-50 age group, 32% are under 26-40

age group, 26.6% above 50 age and rest, that is 6% are under age of 1825. As it is
already observed that the customers at Reliance Fresh are mostly male and are aged, we can

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say that people tend to act matured to help female by participating in household work like
shopping vegetables and groceries.

5.1.3 Target customers -Income level

5.1.3 Table Income level of Respondents (n=150)


Income level of Respondents

Income Level No. of Respondents Percentage

Less than 10,000 rupees/ 16 10.7


month
10000-20000 45 30
rupees/ month
20,000- 30,000 rupees/ 38 25.3
month
30,000-40,000 45 30
rupees/ month
Above 40,000 6 4
rupees/month
Total 150 100

5.1.3 Figure Income level of Target Customers (n=150)

Income
30 30
25.3

10.6
4

Less than 10,000 10000-20000 20,000- 30,000 30,000-40,000 Above 40,000


rupees/ month rupees/ month rupees/ month rupees/ month rupees/month

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From the above Table, we can say that out of 150 respondents, 30% respondents are under income
group of 10000-20000rupees/month and 30% under 30000-40000rupees/month, 25.3%
comes under the income group of 20000-30000, 10.6% of respondents comes under income
group less than 10000 rupees/month and the remaining 4% accounts for Above 40000
rupees/month income group.

5.1.4 Target customer- Family cycle: (n=150)

5.1.4 Table - Family cycle of Respondents:


Family Cycle No. of respondents Percentage

Bachelor 3 2

Newly Married without 39 26


Children
Married with dependent 70 46.7
Children

Married with Independent 38 25.3


Children

Total 150 100

Figure 5.1.4. - Family cycle of Respondents: (n=150)

Family Cycle
46.6

26 25.3

Bachelor Newly Married without Married with Married with


Children dependent Children Independent Children

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From the above table and graph, we can clearly see that, out of 150 respondents, 46.6%
come under family cycle with Married With Dependent Children, 26% comes under family
cycle of Newly married without Children, 25.3% comes under Married with independent
Children and 2% accounts for Bachelors.

5.1.5 Target customers - Occupation (n=150)

5.1.5 Table Occupation of respondents (n=150):


Occupation No. Of Respondents Percentage
Business 29 19.3

Employee 61 40.7

Professional 29 19.3

House Wife 17 11.3

Student 2 1.3

Total 150 100

Figure 5.1.5 customers - Occupation (n=150)

Occupation
49.3

26.7

11.3 8
1.3 1.3

Business Employee Professional House wife Student Others

Figure 5.1.5 depicts that among 150 respondents, 49.3% are Employees who belong to both
Government and non government Organizations, 26.7% of the respondents are Entrepreneurs,

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11.3% of them are House wife's, 8% comes in other occupation like Retired Employees, 1.3%
accounts for Professional Occupation like Doctors, Lawyers etc..,, and

1.3% comes under students i.e.,, Bachelors.

5.1.6 Target Customers- Visit to Reliance Fresh:

5.1.6 Table Visit to Reliance Fresh( n=150) :


Visit to Reliance Fresh No. of Customers Percentage

First Time 3 2

Once a week 53 35.3

Twice a week 78 52

Weekends 14 9.3

Once a Month 2 1.3

Total 150 100

Figure 5.1.6 Visit to Reliance Fresh( n=150) :

Visit to Reliance fresh


52

35.3

9.3
2 1.3

First time Once a Week Twice a Week Weekends once a Month

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The Figure 5.1.6 shows that 52% of the respondents visit the Reliance Fresh stores Twice A
Week, while 35.3% visit Once A Week, 9.3% visit in the Weekends, 2% visited for the First
Time and only 1.3% visit Once A Month.

.1.7 Target customers Purchase Plan: ( n= 150)

5.1.7 Purchase Plan of Target Customers (n=150):


Purchase Plan No. Respondents Percentage

To Purchase 120 80

If good offer found then, 30 20


Purchase

Total 150 100

Figure 5.1.7 Purchase Plan of Target Customers: (n=150)

Purchase Plan of Respondents

80.0

20

0.0 0.0 0

To Purchase Just for Visit To know about To know the new If good offer then
the new offer products to purchase

The Above Figure 5.1.7, the larger pie is occupied by the respondents who come to Reliance
Fresh to Purchase 80%, followed by the 20% with the respondents who come to Purchase If
The Offer Is Good.

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5.1.8 Target customers- Sections preferred for Purchasing (n=150)

5.1.8 Table Section preferred by Target Customer(n=150):


Sections Preferred No. of Customers Percentage

Fruits and Vegetables 11 7

Groceries 69 46

Both 70 47

Total 150 100

Figure 5.1.8 Section preferred by Target Customer:( n=150)

Sections Preferred
Groceries Fruits and Vegetables Both

7.3

46.6

46%

From the Figure 4.1.8, we can clearly see that Larger share of the Doughnut is occupied by the
respondents who visit Reliance Fresh for purchasing Fruits And Vegetables that is 46%,
followed by 47% of the respondents visit Reliance Fresh for purchasing Both and 7% of the
respondents visit the store for purchasing Groceries.

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5.1.9 Target Customers Spending Pattern

5.1.9 Table Spending Pattern of the Target Customers (n=150):


Spending Pattern No. of Customers Percentage

Below 500 69 46

500 - 1000 62 41.3

1000 - 1500 19 12.7

Total 150 100

Figure 5.1.9 Spending Pattern of the respondents (n=150):

Spending Pattern

1000-1500
13%

Below 500
46%

500-1000
41%

The Figure 5.1.9 shows that maximum share that is 46% of the respondents spend Below 500
rupees each time they visit Reliance Fresh, followed by 41% respondents who spend 500-10000
Rupees when they visit store and the rest 13% of the respondents spend 10001500 rupees,
each time they visit the store.

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2) Objective: To study the factors
Influencing the Preference of organized
Retail Outlet.

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5.2.1. Target Customer Factors preferred for Shopping in Organized retail store:

5.2.1. Table Respondents Preference for shopping in Organized Retail Store (n= 150):

Note:-1= Never, 2= Rarely, 3= Often, 4= Mostly, 5= Always

Factors Always Mostly Often Rarely Never Cumulative Score


Rank

Good Quality 250(50) 148(37) 90(30) 50(25) 8(8) 546 5


More Variety 325(65) 92(23) 90(30) 52(26) 6(6) 565 4
Product 3(3) 528 6
Availability
Parking Facility 325(65) 88(22) 162(54) 4(2) 4(4) 583 3
Near to 450(90) 168(42) 30(10) 8(4) 4(4) 660 1
Residency
Value Added 350(70) 160(40) 30(10) 40(20) 10(10) 590 2
Service

Figure 5.2.1. Respondents Preference for shopping in Organized Retail Store:

Factors preferred for Shopping


Value Added Service 590

Near to Residency 660

Parking Facility 583

Product Availability 528

More Variety 565

Good Quality 546

Factors 0

Here, from the fig.5.2.1, we get the clear picture of the factors which influences the customers
to shop from a Organized Retail Store. we can see that Near to residency is one such factor,
whose cumulative score is

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highest that is 660 which means that it is the most dominating factor, the second dominating
factor is the Value Added Service, which accounts for 590, followed by the score 583 for the
factor, parking facility, next stands the factor More Variety with score 565, then stands the
factors Good Quality which accounts for 546 and finally comes the factor Product Availability
with least score that is 528.
From the above analysis it interpret that People mostly come to organized retail as they get
quality products on affordable prices at more discounts/ offers under one roof. It is also clearly
known that organized retail stores sells their goods at a discounted price as compared to the
market. Even it provides a good service and ambience to its customers who encourage them to
visit and shops more and more times.

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3) Objective: To Study the overall performance of the
Reliance Fresh

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5.3.1 Target Customers Rating Reliance Fresh on the basis of the following Factors:

5.3.1 Table Respondents rating reliance Fresh on following Factors(n=150):

Note:-1= Very Poor, 2= Poor, 3= Average , 4= Good, 5= Very Good

Rating Scale Very Good Average Poor Very Cumulative Rank


Good Poor Score
New Products 375(75) 136(34) 60(20) 26(13) 7(7) 604 1

Bulk Purchase 215(43) 148(37) 126(42) 50(25) 3(3) 542 5

Location 230(46) 192(48) 159(53) 4(2) 1(1) 586 2

Good Will 270(54) 136(34) 69(23) 74(37) 2(2) 551 4

Discount 210(42) 168(42) 126(42) 22(11) 13(13) 539 6


schemes
Shopping 215(43) 204(51) 102(34) 38(19) 3(3) 562 3
Experience

Figure 5.3.1 Respondents rating reliance Fresh on following Factors(n=150)

Rating Scale
Shoping
Shoping Experience
Experience, 562
Discount
Discount schemes
schemes, 539
Good Will Good Will, 551

Location Location, 586


Bulk
Bulk Purchase
Purchase, 542
New
New Products
Products, 604

500 520 540 560 580 600 620

From the above fig. 5.3.1, we can see that the highest cumulative score is scored by the factor
New Products that is 604, second comes the parameter Location with 586 score, Shopping

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Experience with 562 then comes Good Will with 551, Bulk Purchase with 542 and Discount
Schemes comes last with score 539

5.3.2 Target Customers- Preferred Shopping mall

5.3.2 Table Preferred shopping mall by Customers (n=150)


Preferred Store No. of Customers Percentage

Reliance Fresh 96 64

Big Bazaar 46 30.7

Heritage Fresh 2 1.3

Grocery store 6 4.0

Total 150 100

Figure 5.3.2 Preferred shopping Store by Customers (n=150)

Preferred shopping Store


Reliance Fresh Big Bazaar Heritage Fresh Grocery (Kirana shop)

1%
4%

31%

64%

From the above Figure 5.3.2, we can clearly see that larger part of the
Figure is occupied by the respondents who choose Reliance Fresh that

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is 64%, 31% of the respondents choose Big Bazaar, 1% of the respondents choose Heritage
Fresh and 4% of the respondents choose Grocery Store i.e..,, Kirana store for purchasing daily
needs.

5.3.3 Target Customers- Awareness of Reliance Private Brands

5.3.3 Table Awareness of Reliance Private Brands by Customers (n=150)


Awareness Of Reliance Brands No. Of Customers Percentage

Yes 92 61.3

No 58 38.7

Total 150 100

Figure 5.3.3 Awareness of Reliance Private Brands by Customers (n=150)

Awareness of Reliance Private Brands


by Customers

No
39%

Yes
61%

From the Fig 5.3.3, we can clearly see that the larger bar is occupied by the respondents who
are aware of the Reliance Private brand that is 61.3% and 38.6% of the respondents accounts
for the smaller bar in the Figure that is they are not aware of the Private brands of Reliance.

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5.3.4 Target Customers- Brand Preferred

5.3.4 Table Brand Preferred by Customers (n=150)


Brand Preferred No. of Customers Percentage

Reliance Select 30 20

Others 120 80

Total 150 100

Figure 5.3.4 Brand Preferred by Customers (n=150)

Brand Preferred
Reliance Select
20%

Others
80%

In the Fig. 5.3.4, 80% of the respondents prefer to buy Other Brand Products, while 20%
of the respondents prefer to purchase Reliance Private brand Products.

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5.3.1 Target Customers Rating Reliance Fresh on the basis of the following Factors:

5.3.1 Table Respondents rating reliance Fresh on following Factors(n=150):

Note:-1= Very Poor, 2= Poor, 3= Average , 4= Good, 5= Very Good

Rating Scale Very Good Average Poor Very Cumulative Rank


Good Poor Score
New Products 375(75) 136(34) 60(20) 26(13) 7(7) 604 1

Bulk Purchase 215(43) 148(37) 126(42) 50(25) 3(3) 542 5

Location 230(46) 192(48) 159(53) 4(2) 1(1) 586 2

Good Will 270(54) 136(34) 69(23) 74(37) 2(2) 551 4

Discount 210(42) 168(42) 126(42) 22(11) 13(13) 539 6


schemes
Shopping 215(43) 204(51) 102(34) 38(19) 3(3) 562 3
Experience

Figure 5.3.1 Respondents rating reliance Fresh on following Factors(n=150)

Rating Scale
Shoping
Shoping Experience
Experience, 562
Discount
Discount schemes
schemes, 539
Good Will Good Will, 551

Location Location, 586


Bulk
Bulk Purchase
Purchase, 542
New
New Products
Products, 604

500 520 540 560 580 600 620

37 Page
From the above fig. 5.3.1, we can see that the highest cumulative score is scored by the factor
New Products that is 604, second comes the parameter Location with 586 score, Shopping
Experience with 562 then comes Good Will with 551, Bulk Purchase with 542 and Discount
Schemes comes last with score 539

5.3.2 Target Customers- Preferred Shopping mall

5.3.2 Table Preferred shopping mall by Customers (n=150)


Preferred Store No. of Customers Percentage

Reliance Fresh 96 64

Big Bazaar 46 30.7

Heritage Fresh 2 1.3

Grocery store 6 4.0

Total 150 100

Figure 5.3.2 Preferred shopping Store by Customers (n=150)

Preferred shopping Store


Reliance Fresh Big Bazaar Heritage Fresh Grocery (Kirana shop)

1%
4%

31%

64%

From the above Figure 5.3.2, we can clearly see that larger part of the
Figure is occupied by the respondents who choose Reliance Fresh that

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is 64%, 31% of the respondents choose Big Bazaar, 1% of the respondents choose Heritage
Fresh and 4% of the respondents choose Grocery Store i.e..,, Kirana store for purchasing daily
needs.

5.3.3 Target Customers- Awareness of Reliance Private Brands

5.3.3 Table Awareness of Reliance Private Brands by Customers (n=150)


Awareness Of Reliance Brands No. Of Customers Percentage

Yes 92 61.3

No 58 38.7

Total 150 100

Figure 5.3.3 Awareness of Reliance Private Brands by Customers (n=150)

Awareness of Reliance Private Brands


by Customers

No
39%

Yes
61%

From the Fig 5.3.3, we can clearly see that the larger bar is occupied by the respondents who
are aware of the Reliance Private brand that is 61.3% and 38.6% of the respondents accounts
for the smaller bar in the Figure that is they are not aware of the Private brands of Reliance.

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5.3.4 Target Customers- Brand Preferred

5.3.4 Table Brand Preferred by Customers (n=150)


Brand Preferred No. of Customers Percentage

Reliance Select 30 20

Others 120 80

Total 150 100

Figure 5.3.4 Brand Preferred by Customers (n=150)

Brand Preferred
Reliance Select
20%

Others
80%

In the Fig. 5.3.4, 80% of the respondents prefer to buy Other Brand Products, while 20%
of the respondents prefer to purchase Reliance Private brand Products.

5.3.7 Target Customers opinion regarding Attractive Offers (n=150):

5.3.7 Table Respondents opinion regarding Offers (n=150):

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Attractive Offers No. of respondents Percentage
Strongly Agree 58 39
Agree 45 30
Neither Agree/ Nor 41 27.3
Disagree

Strongly Disagree 6 4

Total 150 100

Fig. 5.3.7 Respondents opinion regarding Offers (n=150)

Attractive Offers
Strongly Agree Agree Neither Agree/ Nor Disagree Strongly Disagree

4%

27.3 39%

30%

In the Fig. 5.3.7, 39% of the respondents Strongly Agree that the offers offered at Reliance
Fresh are attractive, 30% of the respondents Agree that they are attractive, while 27.3% of
the respondents Neither Agree/ Nor Disagree with the same and the remaining 4% of the
respondents Strongly Disagree.

5.3.8 Target Customers - Expected Service (n=150):

5.3.8 Table Expected services by the respondents (n=150):


Services Expected No. Of Customers Percentage

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Fast Billing 69 46

Customer Service 24 16

Provision of Polythene 30 20

Maintenance of Hygiene 27 18

Total 150 100

Fig. 5.3.8 Expected services by the respondents (n=150):

Service Expected

Maintanance
of Hygiene
18%
Fast Billing
Provision of 46%
Polythene
20%
Customer
Service
16%

From the fig. 5.3.8, 46% of the respondents expect improvements in Fast Billing, 20% of the
respondents expect the Provision of Polythene
Covers rather than net bags, 18% of the respondents expect
Maintenance of Hygiene and 16% of the respondents expect Value Added Customer
Service

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6) Chapter-Findings:

After completing the survey and analyzing the responses of the persons contacted, the
following findings can be availed.

Consumer life styles and spending pattern are changing, more and more customers are
visiting Organized Retail Store.
So we can conclude that, Reliance Fresh is the hub of shopping for middle class income group. as
the store offers reasonable prices on each and every product.
Most of the people around 52% of the respondents visit the Reliance Fresh stores twice a
week, while 35.3% visit once a week this shows that majority of the respondents visit store
at least once.
Reliance Fresh is purely a shopping store most of the respondents visit Reliance Fresh for
purchasing which accounts for 80% and 20% of the respondents visit the store to purchase
if good offer is found.
Most of the respondents prefer to purchase both the groceries and Fruits and Vegetables that
is 47% and 46% of the respondents prefer to buy Fruits and Vegetables.
The spending pattern of the customers at Reliance Fresh is dominated by 46% of the
respondents, who spend below 500 rupees each time they visit Reliance Fresh, followed by
41% respondents who spend 500-10000 rupees.
we can see that Near to residency is one such factor, whose cumulative score is highest that
is 660 which means that it is the most dominating factor, the second dominating factor is
the Value Added Service, which accounts for 590, followed by the score 583 for the factor,
parking facility, next stands the factor More Variety with score 565, then stands the factors
Good Quality which accounts for 546 and finally comes the factor Product Availability with
least score that is 528.
The rating of the customers shows that the highest cumulative score is scored by the factor
New Products that is 604, second comes the parameter Location with 586 score, Shopping
Experience with 562 the comes Good Will with 551, Bulk Purchase with 542 and Discount
Schemes comes last with score 539
Most of the respondents visit Reliance Fresh that is 64%, 31% of the respondents choose
Big Bazaar, 1% of the respondents choose Heritage Fresh.
The customers who visit the store are aware of the Reliance Private brand that is 61.3% and
38.6% of the respondents are not aware of the Private brands that Reliance Fresh offers.
The respondents here at Reliance Fresh that is 80% of the respondents prefer to buy other
brand products, while 20% of the respondents prefer to purchase Reliance Private brand
Products.
At Reliance Fresh, 74.6% of the respondents say that they are aware of the Promotional
Scheme that are offered by the store and 25.3% of the respondents are not aware.

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respondents get through while 23% of the respondents get to know by Boarding's &
Hoardings
At Reliance Fresh, 39% of the respondents Strongly Agree that the offers offered at Reliance
Fresh are attractive and 30% of the respondents Agree.
The Services that Reliance Fresh offers have to be improvised as 46% of the respondents
expect improvements in Fast Billing, 20% of the respondents expect the Provision of
Polythene Covers rather than net bags, 18% of the respondents expect Maintenance of
Hygiene and 16% of the respondents expect Value Added Customer Service.
Most of the customers complained:-
In Reliance Fresh, the customers want that their time should not waste after shopping,
number of cashiers should be increased, and waiting process management should be made
good.

Product assortment is not good.

Arrangement of products is systematic but, unavailability of the product in shelf, that‟s we


face problem many times for selection of products.
Most of the groceries products are not available in sufficient amount.
Most of the time fresh fruits & vegetables products are not available in the store on Daily
basis.
Most of the customers were not too happy with level of service.

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Suggestions

✓ Store Atmospherics can be improved like Music; there was no music in the store, which plays
an important part in setting up the mood of the customer. Music can control the pace of
store traffic, create an image, and attract or direct consumers‟ attention. Odour, A smell
from fresh fruits and vegetables and bakery stimulate the customer to make purchase.

✓ The 80 – 20 rules explains that 80 % of profits or sales comes from 20% of customers. Thus
the company can group their customers like platinum segment, gold segment, silver segment
etc on the basis of their spending and accordingly they should be given importance like giving
them special offers / promotions, special attention could be given to the most profitable
customers. This would help them in retaining most profitable customers.

✓ Billing should be fast because customers don‟t want to stay in the store after purchasing the
products.

✓ There should be different cash counters for different customers. Cash counter and credit card
payment counter should be placed differently in order to reduce the rush and save the
customer‟s time.

✓ People generally search for the product on offer so the high margin product should be up
fronted that mean those item should be in the eye height so that it easily catches the
customers‟ attention and generates impulse purchase.

✓ The Reliance Fresh should provide entertainment and amusement programmed to delight
the customers within store, especially for consumer with kids. This can be increase the
amount of time the consumers spend at the store, and might become a reason for the
increase in sales.

✓ The reliance Fresh should properly train the shop keeping crew and back office staff to
maintain a good rapport with customers. The store personnel should intimate the shoppers
about the new arrivals of merchandise.

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✓ The store is offering net bags instead of the polythene covers this is making most of the
customers dissatisfied as it is consuming time for filling net bags.

✓ There should be a separate cash counter for the senior citizens as it is a burden for them to
stand in the queue.

✓ More emphasis has to be given to increase the sale of the Reliance Fresh own private brands
so that the sale would trigger.

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Recommendations

To make recommendations to improve the competitive position of Reliance Fresh with


other organized retail competitors in Hyderabad.

Adopting customer-oriented thinking:-

My first recommendation is to adopt customer-oriented thinking which requires the store to


define customer needs from the customer’s point of view because “a customer is a person
who brings us his wants. It is our job to handle them profitably to him and to ourselves”.
Reliance Fresh should try to adopt some strategies like- Focus on target market, customer
needs, integrated marketing.
Focus on Target market- we know that we cannot satisfy every need or demand but we
can define our target market and try to fill all the requirements of that market.

Customer needs- Big Bazaar should take customer oriented thinking which requires giving
chance to customer to think and state about his or her need. Store can respond to
customer’s requests by giving customers what they want, or what they need. Store should
try to convert somewhat satisfied customer into very satisfied customers.

Reliance Fresh can do this thing if:

Store able to identify the customer’s need and requirements.

Any product or service should match customer’s expectations.

Store must stay in touch with customers after the sale to ensure that they are satisfied and
remain satisfied.

▪ Store must gather customer ideas for product and service improvements and convey
them to the appropriate store departments.
Integrated marketing- The Stores success depends not only on how well each department
performs its work but also on how well the various departmental activities are

47 Page
coordinated. For instance- HR department should hire good and educated sales persons
and training department should train them perfectly time to time.

More Emphasize on Sales assistance:-

Reliance Fresh should give more emphasize on the training of sales force available at the
stores with the information of new products and schemes, so that they are fully equipped
with the information and schemes related to the product, hence they can improve in their
working skills.

The need for customer retention:-

Losing profitable customers can dramatically impact stores profits. The cost of attracting a
new customer is estimated to be five times of the cost of keeping a current customer happy.
Adding Financial Benefits:-

Store should offer some financial benefits to the customer.

They are: Through “frequency marketing programs (FMPs), we can provide rewards to
customers who buy frequently and/or in substantial amounts.

Store can offer “price club cards” to its customers that provide member customers with
unadvertised discounts on particular items.

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CONCLUSION.

Undoubtedly, the retail sector is one of the key sectors in the Indian economy. The major
contributive part of retailing in the Indian economy would ensure the prosperity of the
nation in terms of employment creation and deployment of resource. However, the spread
of organized retailing among various countries varies depending upon the socioeconomic
factors related to the country. With the changing demographic features and improvement in
quality of life of urban India, the Indian retail sector is witnessing a tremendous growth.
This study is mainly focused on the factors which generally influence the consumer whilst
their purchase at the organized retail sector. Apparently, the retail consumer attitudinal
dimension forces them to have diversified patterns at various buying spots. The situation
makes the Reliance Fresh more vigilant about adopting consumer-friendly marketing
strategies in terms of selling the best quality products and services continuously to the
consumers.
It seemed from the study that the customers are quite satisfied with Reliance Fresh. Reliance
Fresh is a major shopping mall for todays customers. It is a place where customers find
variety of products at a reasonable price. Reliance Fresh has a good reputation of itself in the
market. It has positioned itself in the market as a discounted store. It holds a huge customer
base. The majority of customers belong to middle class family. The youth generation also
likes shopping and moving around Reliance Fresh. Volume sales always take place in Reliance
Fresh. Impulse buying behavior of customers comes in to play most of the times at store.

So that Company can enhance its business or increase its sales by doing these things; provide
better customer service than its competitors, increase the variety of merchandise with deep
assortment, arrangement of product should be in proper way that creates good store image,
provide membership card to the customers. Company should also include more categories in
the food section of the store, provide parking space and employ knowledgeable sales staff.

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BIBLIOGRAPHY

Internet Web Page:-

A brief report on Retail Sector in India August 2012.

A T Kearney (2010). Global Retail Development Index (GRDI) 2010.

Equtitymaster.com
http://www.dnb.co.in/IndianRetailIndustry/overview.asp
http://www.equestindia.com/eq/article_3.asp
http://www.imap.com/imap/media/article_documents/IMAP_Global_Re
tail_Industry_Report__BEDF5F30C7201.pdf

http://www.integraluniversity.ac.in/12052010/Kalyansundaram.pdf
http://www.plunkettresearch.com/retailing-stores-marketresearch/industry-and-business-data

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