A STUDY OF CONSUMER BUYING BEHAVIOUR IN RELIANCE FRESH

Chennai
A Project Report submitted to the SRM University in partial fulfilment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION Submitted by N.Syed Sulthan Ibrahim (Reg. No.3511020081) Under the guidance of Mr. Arulmozhi, MBA; M.PHIL (Internal Guide) Mr. Siraj, MBA (External Guide)

Department of Management Studies SRM University Ramapuram Campus, Chennai – 89. May 2012

Department of Management Studies SRM UNIVERSITY Ramapuram Campus Certificate This is to certify that the project Report entitled “A Study of Consumer Buying Behaviour in Reliance Fresh”, in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration is a record of original work undergone by N.Syed sulthan Ibrahim (3511020081) during the year 2010-2012 of his study in the Department of Management Studies, SRM University, Ramapuram Campus under my supervision and the report has not formed the basis for the award of any Degree/Fellowship or other similar title to any candidate of any University. Place: Chennai – 89 Date: Signature of Guide Mr.Arulmozhi ; MBA., M.PHIL Department of Management Studies SRM University Ramapuram Campus Chennai – 89.

Countersigned Head of the Department Dr. C. Sunder; M.B.A., M.Phil., Ph.D Professor & Head Submitted to the Department of Management Studies, SRM UNIVERSITY (Ramapuram Campus) for the examination held on_______________

INTERNAL EXAMINER

EXTERNAL EXAMINER

DECLARATION

I,N.Syed Sulthan Ibrahim, hereby declare that the project Report, entitled “A Study of Consumer buying behaviour in Reliance fresh” , submitted to the SRM University in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration is a record of original work undergone by me during the period 20.2.2012 to 20.4.2012 under the supervision and guidance of Mr.Arulmozhi; MBA; M.PHIL Department of Management Studies, SRM University, Ramapuram Campus and it has not formed the basis for the award of any Degree/Fellowship or other similar title to any candidate of any University.

Place: Chennai – 89

Signature of the Student

ACKNOWLEDGEMENT I am extremely thankful to our Chairman, SRM University, for his invaluable support. I wish to express my profound gratitude to my venerable Secretary and Pro Vice Chancellor, SRM University, for kind permission to undergo project work successfully. I express my heartfelt thanks to our Dean & Vice Principal, Faculty of Engineering and Technology, SRM University, Ramapuram Campus who provided all facilities for carrying out this project. I immensely thank to our Head of the department, Dr.C. Sundar, for his valuable suggestions and guidance for the completion of project work. I express my sincere thanks to my Project Guide Mr.Arulmozhi; MBA; M.PHIL for guiding me throughout the work.I thank God Almighty for showering his perennial blessing on me for giving me the courage to pursue this project work successfully.

Contents

S.N. Certificate

INDEX

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Declaration Acknowledgement CHAPTER- 1 1.1 1.2 1.3 1.4 1.5 1.6 CHAPTER-2 2.1 2.2 2.3 2.4 2.5 CHAPTER-3 INTRODUCTION &BACKGROUND Company Overview Popular Profile Supply Chain Model SWOT Analysis Corporate Social Responsibility Major Player RESEARCH METHODOLOGY &DESIGN Objective of Research Type of Research Source of data & Collection tool Sampling Sample size ANALYSIS & INTERPRETATION Meaning of consumer Buying Behaviour Interpretation of collect data RESEARCH FINDING LIMITATION OF RESEARCH SUGGESTION APPENDIX REFRENCES

CHAPTER-4 CHAPTER-5 CHAPTER-6

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however with the change of tastes and preferences of the consumers. especially over the last few years.000 crore by the year 2010. the industry is getting more popular these days and getting organized as well. The India retail industry is expected to grow from ` 35.branded items. The retail industry in India is of late often being hailed as one of the sunrise sectors in the economy. As such. Metro. Birla. the retail industry in India was mostly unorganized. at a margin of profit. . Reliance. food is the most dominating sector and is growing at a rate of 9% annually. Comprising of organized and unorganized sectors. With growing market demand. to win the mind share and increase the basket size of each shopping trip. India retail industry is one of the fastest growing industries in India. The Indian retail industry is the fifth largest in the world.INDUSTRY PROFILE Retailing is the interface between the producer and the individual consumer buying for personal consumption. The entry of foreign and Indian retail giants like Wal-Mart. Tata etc. the industry is expected to grow at a pace of 25-30% annually. So how retailers can reach to their end customers. A retailer is one who stocks the producer’s goods and is involved in the act of selling it to the individual consumer. Since at present 60% of the Indian grocery basket consists of non. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. Though initially. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. In the Indian retailing industry. made Indian market more competitive which is at cut throat level.000 crore in 2004-05 to ` 109.

By the same time. retail space located across the country. According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney. rising incomes. the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. by the year 2010. the organized sector will be 20% of the total market share. It has the following retail segments: • • • • • • • • Food & Grocery: Big Bazaar. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas. and a steep rise in rural consumption. ft. In 2007. Music & Gifts: Depot Health & Beauty Care: Star. It's growing at an enviable pace and is expected to reach 30 million sq.5 billion. It has further been predicted that the retailing industry in India will amount to US$ 21. the share of organized sector in 2007 was 7. the India retail industry is expected to grow to US$ 700 billion by 2010. Collection-i Consumer Electronics: e-zone Shoes: Shoe Factory Books. India retail industry is the most promising emerging market for investment.200 billion.Growth of Indian Retail It is expected that by 2016 modern retail industry in India will be worth US$ 175. Furniture Bazaar. it has more than 5 million sq. .com Entertainment: Bowling Co. Headquartered in Mumbai. Major Retailers in India Pantaloon: Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. ft. Pantaloon launched country's first hypermarket ‘Big Bazaar’. it rose to 12%. In 2009.5% of the total retail market.5 billion by 2010 from the current size of US$ 7. Sitara E-tailing: Futurebazaar. It can be mentioned here that. In 2001. Food Bazaar Home Solutions: Hometown. It is also expectedtoreach22%by2010 According to a report by North bride Capita.

Allen Solly. The brands like Louis Philippe. It will invest ` 8000-9000 crores by 2010. Mom-and-pop stores: they are family owned business catering to small sections.000 crores by 2010. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's also investing in other segments of retail. they are individually handled retail outlets and have a personal touch. malls offers customers a mix of all types of products and services including entertainment and food under a single roof. Established in 1998. • Departmental stores: are general retail merchandisers offering quality products and services. RPG Group RPG Group is one of the earlier entrants in the Indian retail market. Van Heusen. AV Birla Group AV Birla Group has a strong presence in Indian apparel retailing. Reliance Reliance is one of the biggest players in Indian retail industry. ft. retail space across the country. when it came into food & grocery retailing in 1996 with its retail Food world stores. • Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered. and Peter England are quite popular. It's expecting its sales to reach ` 90. • . • Shopping malls: the biggest form of retail in India. Later it also opened the pharmacy and beauty care outlets ‘Health & Glow’. Retail formats in India Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories. Trent owns over 4 lakh sq. it also acquired the largest book and music retailer in India ‘Landmark’ in 2005. which operates Westside and Star India Bazaar.Tata Group Tata group is another major player in Indian retail industry with its subsidiary Trent.

Mumbai's Crossword Book Store and RPG's Music World are a couple of examples. This is also known as Multi Brand Outlets or MBO's. They are known as category killers as they focus on specific categories. .3 trillion by the year 2018 at a CAGR of 10%. It is further expected to reach US$ 1. • Challenges facing Indian retail industry • • • • • • • • The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower Low retail management skill The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. As the country has got a high growth rates. such as electronics and sporting goods. • Specialty stores: are retail chains dealing in specific categories and provide deep assortment.E-trailers: are retailers providing online buying and selling of products and services. As a result. the consumer spending in India climbed up to 75%. the consumer spending has also gone up and is also expected to go up further in the future. • Vending: it is a relatively new entry. Here beverages. • Discount stores: these are factory outlets that give discount on the MRP. in the retail sector. the India retail industry is expected to grow further in the future. snacks and other small items can be bought via vending machine. • Category killers: small specialty stores that offer a variety of categories. In the last four year.

COMPANY PROFILE .

petroleum refining and oil and gas exploration and production . petrochemicals (polyester. you can do it. Starting with textiles in the late seventies. textiles and retail. fibre intermediates.in polyester. founded by Dhirubhai H. Reliance pursued a strategy of backward vertical integration . petroleum refining and marketing. Reliance Industries Limited. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum . 2002 RELIANCE GROUP The Reliance Group. is a Fortune Global 500 company and is the largest private sector company in India. The Group exports products in excess of USD 15 billion to more than 100 countries in the world." Dhirubhai H.000 employees on the rolls of Group Companies. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance.July 6. Ambani (1932-2002). Reliance enjoys global leadership in its businesses. petrochemicals.RELIANCE "Growth has no limit at Reliance. plastics.to be fully integrated along the materials and energy value chain. I keep revising my vision. There are more than 25. The Group's activities span exploration and production of oil and gas. fibre intermediates. Ambani Founder Chairman Reliance Group December 28. with businesses in the energy and materials value chain. is India's largest private sector enterprise. plastics and chemicals). The flagship company. 1932 . Only when you can dream it. Group's annual revenues are in excess of USD 27 billion.

Ambani has been a pioneer in introducing financial instruments like fully convertible debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhai's ability to manipulate the levers of a controlled economy to his advantage.Limited and Reliance Retail limited) and Reliance Industrial Infrastructure Limited. After severe differences between the founder's two sons.9 billion and profit of US$ 4. Reliance Industries Limited is India's largest private sector conglomerate (and second largest overall) with an annual turnover of US$ 35. the group was divided between them in 2006. it has diversified its operations in recent years. being ranked at 206th position (2008). Mukesh Ambani and Anil Ambani. In September 2008. Though the company's oil-related operation forms the core of its business. [1] It was founded by the Indian industrialist Dhirubhai Ambani in 1966. Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most respected companies" Subsidiaries of RIL Reliance Petroleum  Ranger Farms Limited  Retail Concepts and Services (India) Private Limited  Reliance Retail  Reliance Global Management Services (P) Limited  Reliance Retail Limited .85 billion for the fiscal year ending in March 2008 making it one of India's private sector Fortune Global 500 companies.

a seamless supply chain infrastructure. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer. Reliance is aggressively working on introducing a pan-India network of retail outlets in multiple formats. vendor partners. RRL has also launched its first few specialty stores for apparel (Reliance Trends). and specialty and wholesale stores across India. RRL launched its first store in November 2006 through its convenience store format ‘Reliance Fresh’. By creating value at all levels. books. hypermarkets. jewellery (Reliance Jewels). presently. Of this. a subsidiary of RIL. which includes a multi-format store strategy of opening neighbourhood convenience stores. music and other lifestyle products (Reliance Timeout). Through multiple formats and a wide range of categories. auto accessories and service format (Reliance AutoZone) and also an initiative in the health and wellness business through ‘Reliance Wellness’. This year. small shopkeepers and consumers. . organized retailing contributes between 20% to 55% in various developing markets. The project will boast of a seamless supply chain infrastructure. The retail initiative of Reliance will be without a parallel in size and spread and make India proud. RRL launched its first ‘Reliance Digital’ store in April 2007 and its first and India’s largest hypermarket ‘Reliance Mart’ in Ahmadabad in August 2007. state of art technology. was set up to lead Reliance Group’s foray into organized retail. both in quality and quantity. organized retailing is about 5%. unprecedented even by world standards. is what this initiative is all about.Reliance is gearing up to revolutionize the retailing industry in India. will be an integral feature of this project. RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure in India. Of this. In each of these store formats. Towards this end. Overall. retail is a significant contributor to overall economic activity across the world. we will actively endeavour to contribute to India's growth. RRL is offering a unique set of products and services at a value price point that has not been available so far to the Indian consumer. footwear (Reliance Footprints). The Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Reliance Retail Limited (RRL). With a vision to generate inclusive growth and prosperity for farmers. a host of unique value-added services and above all. With a 27% share of world GDP. A world class shopping environment. Reliance is aiming to touch almost every Indian customer and supplier. unmatched customer experience. Since then RRL has rapidly grown to operate 590 stores across 13 states at the end of FY 2007-08. This is expected to grow to 10% by 2011.

RRL has made significant progress in establishing state-of-the-art staples processing centres and expects to make them operational by May 2008. RRL will continue to seek synergistic opportunities with other international players as well. RRL established key joint ventures with international partners in apparel. During the year. Recognizing that strategic alliances are going to be a key driver to its retail business. Popular Profiles at Reliance Retail . vegetables and staples that the company sources directly to wholesalers and institutional customers. Further. The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner. RRL provides its customers with high quality produce that has better shelf life and more consistent quality than was available earlier.RRL is well positioned to rapidly expand its existing network of 590 stores which operate in 57 cities. Through the year. optical and office products businesses. RRL also expanded its supply chain infrastructure. RRL also focused on building strong relationships in the agribusiness value chain and has commenced marketing fruits. RRL will continue its focus on rapid expansion of the existing and other new formats across India. in FY 2007-08. This year.

Management team Name Mr. Mangement Designation Chairman&Managing Director Executive Director Executive Director Deputy General Manager Area Manager-Operation &Sales and NSO Vice-President-Business Head. Merchandise Head State Head Category Formats of Reliance RETAIL • Reliance Fresh • Reliance Mart • Reliance Digital • Reliance Trends • Reliance Footprint • Reliance Wellness • Reliance Jewels • Reliance Super . Mukesh Ambani Nikhil R Meshwani Hital R Meshwani Madhumita Mohanti Akashay Lokhande Devandra Chawla Zubin Nowrojee.

The company also has plans to train students and housewives in customer care and quality services for part-time jobs BACK GROUND We can see many examples of businesses where. The super marts will sell fresh fruits and vegetables. Reliance retail is next Step by RIL which will be a pan India project. staples. Besides. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. that’s why it always thinks of expanding without any boundaries. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is RIL’s Rs 25.000 crore venture and it plans to add more stores across different g. first we grow and then think of expanding but reliance is quite different. fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain . according to the company.RELIANCE FRESH Reliance fresh is the retail chain division of reliance industries of India which is headed by Mukesh Ambani. the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people. groceries. The super marts will sell fresh fruits and vegetables. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. The reliance fresh supermarket chain is ril’s rs 25. groceries.000 crore venture and it plans to add more stores across different g. Reliance has developed such huge amount of resources and capital over the years that whenever it steps into any segment it is not required to wait for growing signal. and eventually have a pan-India footprint by year 2011. staples. Reliance plans to invest rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. and eventually have a pan-India footprint by year 2011.

staples. Reliance Retail is moving out stocking. IT. home. the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people. this is only the entry roll-out that the company has planned. Bangalore is said to have 40 stores in all by the end of the year. FMCG products and dairy products. and partly due to its inability to create a robust supply chain. Each store is said to be within a radius of 1-2 km of each other. with food accounting for the bulk of the business. .for non-vegetarian products. in relation to the concept of a neighbor store. The company is planning on opening new stores with store-size varying from 1. according to the company. but also spoke at length about its “farm-to-fork’’ theory. consumer durables. West Bengal and Orissa. Orissa being one of them. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way. The company may not stock fruit and vegetables in some states. Though Reliance Fresh is not exiting the fruit and vegetable business altogether. FMCG. which will stock fresh fruits and vegetables. it has decided not to compete with local vendors partly due to political reasons. not only did the company said the store’s main focus would be fresh produce like fruits and vegetables at a much lower price. Besides. Reliance Retail has decided to minimize its exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super market focusing on categories like food. When the first Reliance Fresh store opened in Hyderabad last October. wellness and auto accessories.000 sq ft. The company also has plans to train students and housewives in customer care and quality services for part-time jobs. In a dramatic change due circumstances prevailing in UP. It was mentioned recently in News Dailies that.500 sq ft to 3. This is quite different from what the firm had originally planned. However.

India Chennai. New Delhi. FMCG products and dairy products and non-vegetarian items. Nariman Point. starting with Bangalore. The company offers fresh fruits and vegetables.000 crores to expand the Reliance Fresh stores. Mumbai 400 021.) Reliance Industries Limited. Branches Overview . Reliance Industries has invested nearly Rs. Hyderabad. It is the first retail venture of the Group. Jaipur. Reliance Retail has signed a pact with Apple for the establishment of a chain of Apple Specialty Stores branded as iStore. Reliance Fresh directly buys stock from the farmers to cut down on the wastage. Maharashtra. 3.7 crores (April 11. groceries. fresh juice bars. 2008) (Reliance Industries Ltd.687. Orissa. staples. 370. Makers Chambers IV. Chandigarh. The stores work on The Ranger Format which means selling of fresh vegetables to the road sellers. UP and West Bengal Reliance Fresh falls under Reliance Industries. Ludhiana. Mumbai.Company overview : Reliance Fresh Date of Establishment Revenue Market Cap Address 2006 Not Available Rs.

So by using this strategy they are positioning themselves different from other players of the industries like Food world.000-5. Most of these outlets will need only 2. spices. Weakness: . or MTR’s masalas or Pepsi’s Lays chips.000 sq. Reason: private labels offer far better profit margin to the retailer than branded products of FMCG companies. and even a large counter for puja flowers. But over come the short comings of these specialized stores they are also introducing new Reliance full-fledged supermarket called Shakhari Bhandar which offers each and everything from the staple to soap. there is very little shelf space given to the big brand owners in the country. all under Reliance’s own brand. Reliance Fresh 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. Let’s do a SWOT analysis on the Reliance Fresh. According to them its intentions to have100% farm fresh foods in their new retail stores. over 60 per cent of the floor space has been dedicated to fresh fruits and vegetables.000-10. bakery. A supermarket may need as much as 8. They have started with new eleven stores in the last week and they are thinking to add 100 more stores to their feather by the end of this year. The indian retail market accounted for $ 200 billion. ft. a 500g urad dal pack for Rs 39. etc. Big Bazaar and Nilgiris. But reliance has decided not to add any bar soap or toothpaste and detergent in its shelves. There is a 500g channa dal pack priced at Rs 28.000 sq. ft.SWOT ANALYSIS Reliance industries which always looking for new business opportunities just started a new era with its introduction of new concept stores named Reliance Fresh with opening convince store in high streets of Banjara hills of Hyderabad. It is also adding shortly a juice bar. Strengths: Reliance is the first into enter into this unorganized sector of vegetables and fruits. Excepting a few packets of Nestle’s Maggi. In fact. Most of the staples are under its own private label brand — ‘Reliance Select’. the rest to other food products like staples.

as they would have to visit another store to pick up essentials. too. They bring down the cost of real estate (and increase profits). Opportunities Reliance wants to build a high-profitability business and food is. There are several intermediaries. It is easier to find space for small convenience stores in a quiet neighbourhood than for supermarkets in high streets. For example. Deliberately stopped short of being a full-fledged supermarket rather. perhaps. Each store will have an investment of Rs 50 lakh to Rs 60 lakh. each of whom adds his own profit margin to the cost. This offers potential for savings and profits. These convince are not existed in the present Reliance retail stores. . tomatoes and green chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi. Unlike global retailers who operate on thin margins. Reliance Retail is looking at a fairly high-margin business model. Besides. That is because the Indian food supply chain is grossly inefficient. For Example Food world and Nilgiris also provides food and beverages with other personal care products. there is huge wastage in transit. the best venture to start. To reduce the cost and increase the profit it has been sourcing out its requirements from the farmers. it has limited itself to a food and grocery convenience store. Threats: This model is engineered to clock a faster turnover of inventory Reliance expects consumers to visit the store at least twice a week for their top-up groceries.This is definitely an interesting business venture but it may miss out on the opportunity to capture a greater share of the customer’s wallet. Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh. this could be irksome. Smaller stores have two advantages. brinjals. They also have a threat from the existing supermarkets which provides all the services to its customers. The supply chain already has been backed by few hundred farmers the number is estimated to touch million in next five years. Reliance could easily fix this problem by adding a few small counters for some basic non-food products. According to their official this format is not final one they are accepting the new changes which are required to attract the large number of customers. For customers. The main aim of the reliance is to eliminate the intermediaries in the sector and reduce the cost. the leafy vegetables.

During the quarter.568.Major players in retail sector Shoppers Stop: Shoppers’ Stop is the pioneer of pan-nation one-stop retail outlets. The company has added 1. Crossword opened its first store and 2 ‘Stop & Go’ stores at the Mumbai domestic airport. Ltd. This store specialises in books. The company has a wholly owned subsidiary – Crossword – a specialty retail chain with over 32 stores spread across the country. The recent moves by the company will widen the offering and de-risk its dependence on the flagship Shoppers’ Stop stores. Starting in 1991 with a single store in Mumbai. it forayed into airport retailing through a joint venture with The Nuance Group AG of Switzerland. . it has now developed more than 20 stores (total retail space crossed the 1 m mark in the second quarter of FY07). The company has also made an entry into the entertainment sector by acquiring 45% stake in Time zone Entertainment Pvt. Further. gift articles and stationery.479 sq ft of area during the year taking its total store area to 1.170.548 as on March 2007.

On the general merchandise front it has Big Bazaar (51hypermarkets). On the apparels front it has Pantaloon (31 departmental stores). More: . Food Bazaar (77 supermarkets) and Fashion Station (5 fashion stores) and other delivery formats. These fall under ‘Value Retailing’. The company’s business is broadly divided into 2 segments. These stores can be classified under ‘Lifestyle Retailing’.Pantaloon: Incorporated in 1987. Lifestyle and Value retailing. Pantaloon Retail is among the pioneers in chain retailing. the company has stores across the cross-section of the society. Central Malls (4 seamless malls as well as its other concepts). It is the largest retailer in the country operating 350 stores across segments in over 40 cities across the country and constituting 5 m square feet of retail space. Starting out with dedicated apparel stores (Pantaloon).

Assures consumers the security of knowing that they are paying the best price in the market for good quality products. Tyres and Life Sciences. with an attractive and consistent range of products? More. Power.8 billion. The stores have been designed by Fitch. Since its inception in1979.The more. has been crafted after in-depth research of the needs and expectations of the Indian consumers. it established ‘Giant’ Hypermarket Objectives . the leading international retail design firm. The retail offering from the Aditya Birla Group. is the answer to the shopping needs of the Indian housewife who wants a modern and convenient option in her neighbourhood. RPG Enterprises has been one of the fastest growing groups in India with more than 20 companies operating successfully in 7 business sectors: Retail. IT & Communications. Entertainment.55 bn and assets worth US$ 1. More. RPG Group: RPG Enterprises is one of India’s largest business conglomerates. The product display is well organised and facilitates ease of choice. In 2001. Chain of supermarkets. 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. Transmission. are bright and clean stores. at convenient locations with layouts that allow ease of navigation. with a turnover of US$ 2.

To understand the major factors influencing consumer behavior To Know and recognize the types of buying decision behavior To understand the stages in the buying decision process.• • • • • To study consumer buying behaviour reliance fresh customer of Chennai. . To know about the consumer awareness towards Reliance fresh.

(2) social and cultural environment and norms. Buying Behaviour appears in the definitions of the following terms: marketing research.). Buying Behaviour appears in these other term: consumer buying behaviour. and is influenced by factors such as the consumer's (1) societal role (parent. etc. Buying Behaviour is in the Advertising. Marketing. advertisement (ad). interests. activities. Model of Buying Behaviour . worker. and (3) aspirations and inhibitions. spouse. opinions (AIO) and consumer research. & Sales and Purchasing & Procurement subjects. ACORN. economic environment.Understanding The Buying Behaviour Of Reliance Fresh Consumers Definition Purchase decision making pattern that is a complex amalgam of needs and desires.

Cultural Social Personal . other factor which influenced people is the technological advancement.Market ing Other Stimul i Stimuli Buyer’s Characte ristics Buyer’s Decision Process Buyer’s Decision Product Economic Technolog Price ical Place Promoti on Political Cultural Cultural Social Personal Psycholo gical Problem recognitio n Informatio n Search Evaluation Decision Post purchase Behaviour Product choice Brand choice Dealer choice Purchase timing Purchase amount When I have analysed the model of buying Behaviour finding that people of Chennai are influenced by the marketing stimuli (4 P’s) people are focused on price rather than product. place and promotion.

The process may be viewed as starting when the consumer engages in problem recognition. Where reference groups’ influence is operative. . But their purchase decision depends completely on self-opinion. The action occurs only when the consumer perceives a sufficiently large discrepancy between the actual and ideal states. and they may also be very influential on consumer behaviour. considering the ‘Consumer Goods Segment’. the advertiser should stress not only the people who buy the product but also those who influenced the purchasing decision. Family and friends in specific are considered before making a decision about purchasing a product.culture Subculture Reference Groups Family Cycle Stage Economic Circumstance s Life Style Personality and Self-Concept Psychologic al Motivation Perception Learning Beliefs and Attitudes Roles and Statuses Social Class BUYE R Reference groups can have potent influence on behaviour in general. Problem recognition occurs when the consumer is activated by awareness of a sufficient difference between his / her concept of ideal situation.

This process involves allocating attention to available stimuli. This involves a series of selection. deriving meaning from these stimuli. The alternating evaluation phase involves comparing the information gained in the search process for alternative product and brands to the product judging criteria on standards the consumer has developed. Other outcome is dissatisfaction and post sale doubt. The consumer’s purchase then leads to various outcomes. including the type of retail outlet as well the specific brand on service to use. . When such a comparison leads to favourable evaluations. One such outcome is satisfaction as a result of direct experience in using the brands. Satisfaction will affect the consumer’s belief about the brand. A purchase process follows strong purchasing intentions.Any information stimuli are then subjected to information processing activities. the consumer is likely to develop a purchase intention towards that alternative that received the most favourable evaluation.

REVIEW OF LITERATURE .

This paper contributes to the literature by examining how consumer behavior in the buying process. 2001). 2001. 2006). consumers tend to purchase promoted items along with regular food and Non-food products when doing grocery shopping. Price et al. When studying consumer response to promotional actions. In the process of buying deals. Therefore. we explore Whether people who exhibit a certain type of behavior (for example planning vs. several authors have analyzed whether a consumer who is prone to purchase a certain promoted product will also respond to any other promotional action. search and Inventory costs.. MLP . Other authors maintain That deal-proneness is domain specific and that consumers may respond to a Certain type of promotional mechanism but not to others (Schneider and Currim. 1984. Some studies reveal that deal-proneness is a generalized construct. Ailawadi et al. EDLP products. including switching. Promotions are incentives offered by retailers that enables consumers to obtain savings and the access to higher quality brands Which could not be bought at their normal price? Consumers normaly weigh up? Costs and benefits along the buying process of promoted products. an individual who modifies his or her purchase behavior in certain promotions is likely to modify his or her behavior in any other promotion (Shimp and Kavas. in-store Promotion search and purchases of promoted items. In particular.. 1965. Costs are Related to the purchase of promoted products. in-store promotion and consumer purchase behavior. Produce different retail outcomes across product categories and promotion types (Cotton and Babb. They go through different stages including pre-purchase planning. the following five in-stores promotion categories are examined: in-store advertising. that is. search.. although the relationship is not so clear (Webster. not planning) differ in their deal-proneness. 1991. 1988). 2006).Review of literature This paper builds on the literature dealing with deal-proneness. Savings and quality (Ailawadi et al. while economic benefits are tied to the product’s attributes. As the model posits. 1978). such as promotion planning. Martinez and Montaner. The conceptual framework for this research is presented in Figure 1. The results of that research is not fully conclusive. Martinez and Montaner. Some studies suggest the link between deal-proneness and loyalty. deals purchases and action loyalty is related to in-store deal-proneness.

brand loyal consumers were less responsive to deals than non-loyal consumers (Schneider and Currim. 1991) since they attach more importance to the product than to the price. we might expect customers who are loyal to an establishment not to be so deal-prone. since if they were deal prone they would shop around for the best deals and would not necessarily favor one store over others . special island displays. 1971. 1978. as compared to deal-prone consumers who value the price more than quality. If we assume that store loyalty might follow similar pattern as brand loyalty.prone. 2003). According to umesh.products. As shown by Tate (1961). pettit and bozman (1989). Webster. The differences between promotion types will make some consumers respond to certain promotions but not to others. Walters and Jamil. customers who are loyal to a certain retail establishment tend to give one particular store the priority in grocery Shopping. 1965). and are likely to spend more money in the primary store than the less Loyal shoppers. and free samples. although promotional deal responses might vary across product categories and promotion types (Cotton and Babb. Deal-prone consumers purchased larger quantities of products on promotion than those who were not deal. 1965). There are several empirical studies suggesting this relationship. deal users have been found to be less loyal than non-users in terms of the proportion of purchases devoted to the favorite brand (Montgomery. Also. (Massy and Frank. Purchases on deal are also related to consumer deal-proneness. Drawing on research on another type of loyalty. Action loyalty can be defined as a consumer tendency to come to store again and spend there a large percentage of the grocery budget in a certain period of time (“share of wallet”).

Data collection: Primary Data Primary data of research are collected from direct resources (customer of Reliance fresh) through questionnaire. This research is based on fact finding enquires and the variables are totally independent and uncontrollable.Research Methodology Research Problem To make a comprehensive study of Reliance Fresh &know the Buying behaviour & of Reliance Fresh customers. Type of research Descriptive type research has used to complete the project. Secondary Data Secondary Data which are used for research to know the history scope of Retail industry are collected from already available resources like net and other sources .

Data representation technique and tools Columns chart & Pie chart has used for representation. income culture. . I have given equal weightages to my all respondent and chose them randomly without any biased like gender. age.Sampling technique Random sampling is used for research project. Sample size 425 respondents has selected as sample size for research.

ANALYSIS AND INTERPRETATION .

Interpretation In total respondent we analyses that most of the customer in this store is female and their demand always consider at the time of taking the decision. Age of customer 10-20 21-50 51& above .(1).7% and 150 are male which 35. (2).29% of total respondent. Gender of the consumer Male 150 & Female 275 Male & Fem ale Analysis Data collected for project from 425 respondents in which 275 are female which are 64. Company should try to attract new male customer by provide new scheme on their customer.

29%and 72 are between age of 51 & above which are 16.123 250 200 150 100 50 0 10-20 230 72 21-50 51& above Analysis Data collected for project from 425 responded in which 123 are the ages between 10-20 which are 28.29% and 230 are between age of 21-50 which are 54. (3). In my observation I found that most new people believe in convenience shopping. How often do you shop Daily ( ) week ( ) fortnightly ( ) once in month ( ) Daily 22 Week 224 Fortnightly 89 Once month 90 in . It helps the company to keep management such type which understand the problem of customer easily and rectify the problem effectively.9 % of total respondent Interpretation In total respondent we analyses that most of the customer are youth.

What do you mostly shop for at mentioned store? Vegetables ( ) Grocery ( ) cosmetic product ( ) All products ( ) . InterpretationIn total respondent we analyses that most of the customer are likely to purchase on weekend . (4).In my observation I found that more scheme should be provided on weekend.1% and 224 are like to purchase weekly which are 52.17% of total respondent.250 200 150 100 50 0 D ily a Week F ortnig htly Onc in m e onth Analysis Data collected for project from 425 responded in which 22 are like to purchase daily which are5. 90 likely to purchase once in a month which are 21.9%.27%and 89 are likely to purchase fortnightly which are 20.

Vegetable 108 Grocery 96 Cosmetic product 21 All product 200 Vegetable Grocery Cosmetic product All product Analysis Data collected for project from 425 responded in which 200 customer are like to purchase all product which are 47.41%and 96 are likely to purchase grocery 22. 21 likely to purchase cosmetic product which are 4.5 which are 22. Interpretation In total respondent we analyses that most of the customer are like to purchase all product in the store.%. (5).58. Preference of Shopping? Quality ( ) Brand ( ) Price ( ) one stop shop . And should increase the variety of cosmetic product& grocery.00% and 108 are like to purchase vegetables which are25. Company should try to retain the customer.9% of total respondent.

only 59 respondent consider price which are 13.Quality 102 brand 134 Price 59 One shop 130 stop quality brand price One stop shop ANALYSIS Data collected for project from 425 responded in which 34 customer are believe in reliance brand which are31. Interpretation In total respondent we analyses that most of the customer are believe in reliance brand like to purchase qualitative product in stop shop.%. which store do you kept in preference for purchasing Reliance Fresh ( ) More ( ) other ( ) Local market Local Reliance fresh More Other .50% and 30 are like to purchase in one stop shop which are 30.00%.08. Here I observed that people want to purchase fresh and original product and want better service.54%and 102 are like to purchase quality product which are 24. (6).

74% and 83 are like to purchase from reliance fresh which are19.2% of total respondent Interpretation In my observation I found till today organised retail sector didn’t penetrate the market. Initial it may be costlier.82. Do advertisement and promotion influence your shopping Yes ( ) Yes No ( ) No decision? .51%and 83 are likely to purchase from Big apple which are 18. Company should try to open new convenience store and provide more scheme and good service to customer to penetrate the market. ANALYSIS Data collected for project from 425 responded in which 244 customer are like to purchase from local market which are57.market 244 250 200 150 100 50 0 83 80 18 Reliance fresh More Local market other Data Collected Data collected from this questionnaire to know the preference of the purchasing (comparison of store to other).%. 18 likely to purchase other which are4. (7). but it will give long term benefit.

(8).76% and 35 are those people which say promotion scheme doesn’t effect on purchasing.390 400 350 300 250 200 150 100 50 0 35 yes No ANALYSIS Data collected for project from 425 responded in which 390 customer are like promotion scheme which are 91. Are Promotion scheme easy to understand Yes ( ) NO ( ) some time ( ) Yes 218 no 89 Some time 118 . Interpretation In my observation I found promotion scheme is must to sustain customer attract customer & influence the purchasing.

promotion scheme should be in both in English & Hindi.29% and 89 are those which say no which are 20.yes no Some time Analysis Data collected for project from 425 responded in which 218 customer say yes which are 51. How likely are you to recommend Reliance Fresh to a friend or relative? Would you say the chances are? Excellent ( ) Good ( ) Fair ( ) Poor ( ) Excellent Good Fair Poor . Interpretation Company should try making promotion scheme easy understandable.94 and 118 say some time. (9).

6% customer are fully satisfied from the store company should try satisfy the customer by providing better service and rectify their problem immediately.7% and 8 customer are those say poor Interpretation In my observation. Which form of advertisement do you think is most effective? Print ( ) TV ( ) Radio ( ) telephone ( ) Print 74 TV 119 Radio 56 Telephone 176 . (10).6%. 190 say fair which are 44.I found that only 46.29 198 190 8 200 150 100 50 0 Excellent Good Fair Poor ANALYSIS Data collected for project from 425 responded in which 29 customer say excellent which are6.8% and198 say good which are 46.

Did you get help from CSA when asked? Yes ( ) No ( ) some time ( ) Never ( ) Yes 192 NO 95 Some time 124 Never 14 . 56 say Radio which are 13. Interpretation According to the responded result.180 160 140 120 100 80 60 40 20 0 print TV Radio Telephone ANALYSIS Data collected for project from 425 responded in which 119 customer say TV which are28% and 74 say print which are 17.4%.17% and 176 customer are say telephone. company can choose telephone as best for advertisement and call indusial for attracting the customer (11).

25%. Majority of customers are young. Customers like one stops shopping. .17% and 14customer are say never which are 3. Interpretation According respondent customers are not fully satisfied company should recruit new skilled employee for better performance.1% and 95 say no which are 22.35%. 124 say some time which are 29. Majority customers like to purchase all goods from Reliance fresh.200 150 100 50 0 yes NO Some time Never Analysis Data collected for project from 425 responded in which 192 customer say yes which are 45. FINDINGS • • • • Majority of customers here is female.

Tele phone is the best way for attracting the customer.• • • • • • Local market till today is the first choice of customer. Promotion scheme not so easy to under stand for customer. Limitations . Shortages of skilled workers. Most of the customers are not fully satisfied with the store. Advertisement is the biggest way to attracting the customer.

The project has some limitations because it is totally based on efforts of individuals. Peoples may be careless and may not give correct answer to the questions.    Language is one of the worst problem. because of so many reasons. Some of the consumers are unable to understand the questionnaire. .  Suggestions • More promotion scheme should be used to penetrate the market. It is totally based on personal efforts of individuals. some of the consumers are unable to understand English. Some consumers are not interested in filling questionnaire.

as it involves not only the economic factors. • Promotion scheme should in such way that customer can understand easily. • Service of store should be providing in such way which full the need of the customer.• Skilled employees should be higher because mostly customers are young. However. but also the emotional factors. . as it helps them for better positioning of their products and develop effective marketing strategies. CONCLUSION The study of consumer behaviour is a very complex process. marketers need to study the consumer behaviour.

Appendix RELIANCE FRESH . convenience and storing capacity. reliance fresh consumers prefer different brands because of its freshness.The study of the overall objectives poses the clear picture regarding consumer’s awareness and buying behaviour regarding reliance fresh through different brands. From the study it has been observed that.

Do advertisement and promotion influence your shopping decision? Yes ( ) No ( ) 6.Questionnaire NAME GENDER AGE Monthly income - 1.What do you mostly shop for at mentioned store? Vegetables ( ) Grocery ( ) cosmetic product ( ) 3.Are Promotion scheme easy to understand Yes ( ) No ( ) some time ( ) 7.Preference of shopping Quality ( ) Brand ( ) Price ( ) one stop shop 5.How likely are you to recommend Reliance Fresh to a friend or relative? Would you say the chances are? Excellent ( ) Good ( ) Fair ( ) Poor ( ) .Which store do you shop? Reliance Fresh ( ) More ( ) other ( ) Local market 4.How often do you shop? Daily ( ) week ( ) fortnightly ( ) once in month ( ) 2.

8.Are the Price of Reliance fresh is lower than the other competitor Yes ( ) No ( ) Equal ( ) no idea ( ) 9.Which form of advertisement do you think is most effective? Print ( ) TV ( ) Radio ( ) 10.R Kothari .Did you get help from CSA when asked? Yes ( ) No ( ) some time ( ) Never ( ) References Referred books Research Methodology – C.

wikipedia.Principles of Marketing – Philip Kotler Referred site www.com  www.com  www.ril.google.com  .

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