A Final Project

On

“A Comprehensive Study Of Customer Satisfaction At Reliance

Fresh”
Submitted to the

NAVSARI AGRICULTURAL UNIVERSITY

In Partial Fulfillment of the Requirements for the Award of Degree

of
Master of Business Administration (Agribusiness)
By
T.Poojitha
(04-1181-2012)

ASPEE Agribusiness Management Institute

Navsari Agricultural University
Navsari
 ASPEE AGRIBUSINESS MANAGEMENT INSTITUTE
Navsari Agricultural University,
Navsari

CERTIFICATE I

This is to certify that Miss. Turumalla Poojitha has

successfully completed the course work and examination as
required under the regulation for MBA (ABM).

(Dr. A. M. Bafna)
Place: Navsari Dean

Date: AABMI
 ASPEE AGRIBUSINESS MANAGEMENT INSTITUTE
Navsari Agricultural University,
Navsari

Certificate II
This is to certify that the project entitled “"A Comprehensive Study Of Customer
Satisfaction At Reliance Fresh” is the bonafide research work carried out by
Turumalla Poojitha (04-1181-2012) student of M.B.A. (Agribusiness) during the
year 2012 -2014, in partial fulfillment of requirement for the award of the Degree of
Master of Business Administration (Agribusiness) under my guidance and supervision
and that the project has not formed the basis for the award previously of any
degree, diploma, associate ship, fellowship or any other similar title.

Place: Navsari Dr. Mehul G Thakkar

Date: (Associate Professor)
 ASPEE AGRIBUSINESS MANAGEMENT INSTITUTE

Navsari Agricultural University, Navsari

CERTIFICATE III

This is to certify that the project entitled “A Comprehensive Study Of Customer Satisfaction At
Reliance Fresh” submitted by Turumalla Poojitha to the Navsari Agricultural University, Navsari in
partial fulfillment of the requirement for the degree of MBA (ABM) in the subject of Agribusiness
Management, after suggestions and recommendations by external examiner was discussed and defended
by the candidate before the following members of the Advisory Committee. The performance of the
candidate in the oral examination on this project has been found satisfactory. We therefore, recommend
that the project may be approved.

(Dr. Mehul. G. Thakkar)

Associate Professor, AABMI

Major Guide

(Dr. Ruchira Shukla)

Associate Professor, AABMI

Committee Member

(Mr.Ramesh Lakhana)

Assistant Professor, AABMI

Committee Member

(Dr. B. K. Bhatt)

Associate Professor, ACHF

Committee member
 ASPEE AGRIBUSINESS MANAGEMENT INSTITUTE

Navsari Agricultural University,

Navsari

CERTIFICATE IV

This is to certify that Miss Turumalla Poojitha of ASPEE Agribusiness Management Institute, Navsari
has made all corrections/ modifications in the project work entitled “A Comprehensive Study Of
Customer Satisfaction At Reliance Fresh” which was suggested by the External Examiner and the
Advisory Committee in the oral examination held on 26th June 2014. The final copies of the project duly
bound and corrected were submitted on _______________ are enclosed here with for approval

Place: Navsari Dr. Mehul.G. Thakkar

Date: Major Guide

Associate Professor
AABMI
ASPEE AGRIBUSINESS MANAGEMENT INSTITUTE
Navsari Agricultural University,
Navsari

Declaration by Student

I hear by declare that the project entitle "A Comprehensive Study Of

Customer Satisfaction At Reliance Fresh" submitted for the M.B.A.
(Agribusiness) Degree is my original work and the dissertation has not
formed the basis for the award of any degree, associate ship,
fellowship or any other similar titles.

Place: AABMI, Navsari Turumalla Poojitha

Date: Reg. No. 04-1181-2012
 ACKNOWLEDGEMENT

An individual cannot do project of this scale. I take this opportunity to express my

acknowledgement and deep sense of gratitude to the individuals for rendering valuable
assistance and gratitude to me. Their inputs have played a vital role in success of this project.
I would heartily acknowledge my guide Mr. Thimmappa Sura Chief Manager, Fruits and
Vegetables (Hyderabad), Mr. Sunil, Cluster Manager, who gave me the opportunity to have a closer
look at the working of Reliance Fresh pvt. ltd.
I express my sincere thanks to our Principal, Dr. AM Bafna and my project guide, Dr.
Mehul G Thakkar, Associate Professor (AABMI, NAU, Navsari) for his generous support,
constant direction and mentoring at all stages of the training.
The auther is gratified to record his sincere thanks to Dr. A.R.Pathak, honorable vice
chancellor for providing the necessary facilities during the course of investigation.

I am also indebted to Dr. Alpesh Leua, Associate Professor (AABMI, NAU, Navsari),
Mrs. Swati Sharma Assistant Professor (AABMI, NAU, Navsari,) who were real source of help
and assistance to me during the course of the project. I take this opportunity to thank all staff
members of AABMI who spared their precious time to provide me with valuable inputs for
project without which it would have not been possible.
I express my special thanks to my friends and colleagues Ms Keerthi Chandak, Ms.
Snehal, Ms. Ankita, Ms. Swati Yadhav, Ms. Swarna latha, Ms. Suhasini, Mr. Mukesh, Mr.
Geet and who have been a constant source of help and encouragement. I firmly believe that
there is always a scope of improvement. I welcome any suggestions for further enriching the
quality of this report.
Most humble, I bow my head with reverence to my parents, T. Leela Kumar, T.sailaja,
my sweet brother T. Kalyan and my Family members, Mrs. Asha, Mr. Ashok Chandak, Raghav
kabra, Jyothi, Pranathi, Lakshmi, Nikki, Rukmini, Keerthan, Junnu anna, Srinivas anna,
Teja Mrs. Madhavi & Geetha, whose incessant love, blessing and inspiration made me
competent enough to fight the battle of life and to achieve the goal.
Place: Navsari

Date: / /2011 (Turumalla Poojitha)

 Sr. No. Particulars Page No.

Executive Summary 1

Chapter 1. Profile of Retail Industry 4

Chapter 2. Company Profile 22

Chapter 3. Project 33

3.1& 3.2 Title and Objective 33

3.4 Review of literature 34

Chapter 4. Research Methodology 40

4.1 Location of Study 40

4.3 Sample Technique 41

4.3 Sources of data 42

4.4 Method of Data Collection 36

Chapter 5. Data Analysis and Interpretation 45

Chapter 6. Findings 67

Chapter 7. Managerial Implication 71

Chapter 8. Conclusion 75

74
Questionnaire for Consumers 77

Bibliography 79
 List of tables
Sr. No. Particulars Page Number

1.1 Share of top 250 retail 6

outlets by Region

1.2 Indian Market Share 7

Organized vs.
Unorganized
1.3 Indian Market 9
Segments
5.1.1 Gender of target 46
Customer
5.1.2 Age group of 47
Customers
5.1.3 Table Income level of 48
Respondents
5.1.4 Table Family cycle of 49
Respondents
5.1.5 Table Occupation of 50
respondents
5.1.6 Table Visit to Reliance 51
Fresh
5.1.7 Table Purchase Plan of 52
Target Customers
5.1.8 Table Section preferred 53
by Target Customer
5.1.9 Table Spending Pattern 54
of the Target
Customers
5.2.1 Table Respondents 56
Preference for
shopping in Organized
Retail Store
5.3.1 Table Respondents 59
rating reliance Fresh
on following Factors
5.3.2 Table Preferred 60
shopping mall by
Customers
5.3.3 Table Awareness of 61
Reliance Private
Brands by Customers
5.3.4 Table Brand Preferred 62
by Customers
5.3.5 Table Awareness of 63
Customers regarding
Promotional Offers at
Store
5.3.6 Table Aids that are 64
encountered by
Customers
5.3.7 Table Respondents 65
opinion regarding
Offers
5.3.8 Table Expected 66
services by the
respondents
 List of Figures

Sr. No. Particulars Page Number

5.1.1 Gender of target Customer 46

5.1.2 Age group of Customers 47

5.1.3 Figure Income level of Respondents 48

5.1.4 Figure Family cycle of Respondents 49

5.1.5 Figure Occupation of respondents 50

5.1.6 Figure Visit to Reliance Fresh 51

5.1.7 Figure Purchase Plan of Target 52

Customers
5.1.8 Figure Section preferred by Target 53
Customer
5.1.9 Figure Spending Pattern of the Target 54
Customers
5.2.1 Figure Respondents Preference for 56
shopping in Organized Retail Store
5.3.1 Figure Respondents rating reliance 59
Fresh on following Factors
5.3.2 Figure Preferred shopping mall by 60
Customers
5.3.3 Figure Awareness of Reliance Private 61
Brands by Customers
5.3.4 Figure Brand Preferred by Customers 62

5.3.5 Figure Awareness of Customers 63

regarding Promotional Offers at Store
5.3.6 Figure Aids that are encountered by 64
Customers
5.3.7 Figure Respondents opinion regarding 65
Offers
5.3.8 Figure Expected services by the 66
respondents
EXECUTIVE SUMMARY

Retail Sector is the most booming sector in the Indian economy and it is
presently the largest employer after agriculture. Some economists say
that Retailing is one of the pillars of the economy in India. Some of the
biggest players of the world are going to enter into the industry soon. It is
on the threshold of a big revolution after the IT sector. Although
organized retail market is not as strong as of now, but it is expected to
grow manifolds by the year 2015. Indian Retail Industry was valued to
427 b in 2010 and is expected to grow $ 637 b in 2015. The retail market
is most fragmented in the world and only 5% of the entire retailing
business is in the organized sector. There are about 300 new malls, 1500
supermarkets and 325 departmental stores being built in the cities very
soon. Consumers now want the cheapest, biggest and the quickest
products/services from their retailers. The project depict the main
drivers of the retail revolution and how this revolution changes the
buying behavior of the customer, increase in disposable income of the
middle class, infrastructure development and changing customer choice.
Organized Retailing was introduced in the last decade and has emerged
as one of the sunrise industries in India. The survey intends to analyze
the factors influencing consumer behavior towards organized retailing,
their source of purchasing and the factors which influences their habit of
purchasing from malls and high end retailing sections in Hyderabad.
Research considered the Reliance Fresh Hyderabad for studying the
consumer expectations, and what are the factors that influence to
customer to walk-in, in Reliance Fresh Hyderabad. As we are now in the
era of booming retailing, lot of organizations are entering into the retail
market. My study was done under the title of “A Study of the Factors

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Influencing Buying Behaviour Of Organized Retail Consumers of
Food Section of Reliance Fresh Hyderabad
The present study has been undertaken with the prime objective to
determine the factors influencing customer‟s buying behavior while
purchasing food commodities from Reliance Fresh. It also focuses on
finding out the current status of Reliance Fresh and determine where it
stands in the current market. People mostly come to organized retail as
they get quality products at affordable prices at more discounts/ offer
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 good service and ambience to its customers which encourage
them to visit and shop more and more times. The project involves main
aspects namely industry profile, company profile, project topic overview,
research methodology and analysis part. In the methodology part,
detailed discussion is made on objectives, research design, data
collection method and sampling design. Herein, the primary data have
been collected through structured questionnaires. Based on the analysis
of the collected data, findings, recommendations, limitations and
conclusion have been derived.
This market field survey is a sure shot help in knowing the present
customers tastes and preferences. And also to know what are the
factors which customers think before visiting Reliance Fresh. It
helped me in estimating the customer’s future needs, wants &
demands. (To improve customer walk-in at Reliance Fresh). It also
gives an idea how company can enhance its business or increase its
sales by working on these things - provide better customer service than
its competitors, increase the variety of merchandise with deep
assortment, arrangement of product in a proper way that creates good

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store image and provide membership card to the customers. The study
also reveals that consumers also want the company to include more
categories in the food section of the store, provide parking space and
employ knowledgeable sales staff. Suggestions/recommendation of this
report will certainly help the company to improve its performance and
business.

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Chapter1 : RETAILING – THE SUNRISE INDUSTRY

1.1 Introduction to the Project Report :

The word „retail‟ means to sell or be sold directly to individuals. Retail is
India‟s largest industry, and arguably the one with the most impact on
the population. It is the country‟s largest source of employment after
agriculture, has the deepest penetration to rural India, and contributes
8% to total employment, generates 20% percent of India‟s GDP (Rajesh
Thambala, 2013)

India has some 13 million retail outlets, but many of these act merely as
subsistence providers for their owners and survive on a cost structure
where labor and land is assumed to be free and taxes nil. Compare this
with the global retail industry, which is one of the world‟s largest
organized employers, is at the cutting edge of technology, and which
leverages scale and scope to offer value-added services to its customers.

However, only recently has there been an awakening in this sector, with
more organized retailers starting to make an impact. The liberalization of
the consumer goods industry, initiated in the mid-80s and accelerated
through the 90s has begun to impact the structure and conduct of the
retail industry. Backed by changing consumer trends and metrics,
liberalization in mindsets driven by media, new opportunities and
increasing wealth, retailing in India, presents a vast opportunity for a
variety of businesses - real estate, store design & operations, visual
merchandising logistics and communications, B2C service providers, and
FMCG companies who can add to their offers by partnering this
revolution. The Indian Retailing Industry stands poised to take off into
the 21st century. It is one of the fastest growing sectors in the nation

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that caters to the world's second largest consumer market. Retail boom
is un abating. India has business volume of $470 billion growing at 11
per cent a year. The middle class drives retailing anywhere in the world
and this segment should have reasonable income. The next driver is
availability of variety of goods, products and brands. The third one is
“sense of awareness”.

During the last few years, the Indian retail market has seen considerable
growth in the organized segment. Major domestic players have entered
the retail arena and have ambitious plans to expand in the future years
across verticals, formats, and cities. For example, companies like
Reliance, Tata, Bharti, Adani Enterprise, have been investing
considerably in the booming Indian retail sector. Besides, a number of
transnational corporations have also set up retail chains in collaboration
with big Indian companies. However, going forward, the organized
sector‟s growth potential will increase due to globalization, high economic
growth, and changing lifestyle. Moreover, high consumer spending over
the years by the young population (more than 31% of the country is
below 14 years) and sharp rise in disposable income are driving the
Indian organised retail sector‟s growth. Even small towns and cities are
witnessing a major shift in consumer lifestyle and preferences, and have
thus emerged as attractive markets for retailers to expand their presence.

1.2 Global Powers of Retailing

Emerging markets see continued high growth in retail demand. Despite

the economic slowdown in 2011, composite retail revenue soared for
companies based in Africa/Middle East, Latin America and Asia/Pacific
(excluding Japan). Growth continued to be fueled by burgeoning middle
classes, youthful populations and sizable foreign direct investment.

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Somewhat greater pricing flexibility in these markets also resulted in
above-average profitability for retailers in these regions. On the other
hand, Japanese retailers suffered a composite revenue decline in 2011. As
previously noted, the revenue drop for many of these retailers was due to
the earthquake disaster and resulting impact on the country‟s economic
environment. Nevertheless, Japan‟s share of Top 250 companies and
revenue increased owing to the exchange rate effect of a stronger yen
relative to the U.S. dollar in 2011.The performance of North American
retailers improved in 2011, with above-average revenue growth and
profitability. Productivity, as measured by return on assets, was also well
above average, outperforming all other regions. This group‟s strong results
are a bit surprising given the various negative influences faced by U.S.
consumers in 2011. Unemployment remained uncomfortably high and real
disposable incomes continued to decline. However, there was considerable
pent-up demand, and even though consumers remained price sensitive,
their willingness to take on new debt increased. As a result, consumption
regained much of the vigor lost during the recession.

Figure No. 1.1

Share of top 250 retail outlets by

Region
4% Africa
7% Japan
16% Other Asia
30%
7% France
Germany
5%
17% U.K
5% 3%
6% Other Europe

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RETAIL SCENE IN INDIA

Retailing is one of the oldest businesses that human civilization has

known. It acts as an interface between the producer and consumer,
improves the flow of goods and services and raises the efficiency of
distribution in an economy. For a strong, stable and consistently
growing economy, a well organized and efficient retail sector is a must.
Most of the developed and even emerging economies had adopted the
organized retail long ago and percentage share of organized retail in
total retailing has increased over the years. However, India, traditionally
a land of self sufficient villages, has continued to rely primarily on
small, close to home shops. It is only off-late with pick-up in pace of
urbanization and rising disposable incomes that the country started to
take a few steps towards the organized retailing. A good progress has
been made in last few years, and the retail industry is off late being
hailed as one of the sunrise sectors in the economy.

Fig 1.2 Market Share(Indiabulls)

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With India emerging as an important economic power and per-capita
income crossing the $1000 mark, the country has come to be regarded
as the „most attractive retail destination‟ globally. This has resulted in
many foreign companies eyeing India to continue their growth stories.
Although the foreign direct investment (FDI) in the sector has not been
completely liberal, foreign firms have entered in partnership with local
companies and the retail industry is ready to take off.

Industry Structure:

In India the retail sector is the second largest employer after agriculture,
although it is highly fragmented and predominantly consists of small
independent, owner – managed shops. Retail trade in the country has
burgeoned in the past decade, mainly on account of a gradual increase in
the disposable incomes of the middle and upper-middle class
households. More and more corporate houses including large real estate
companies are coming into the retail business, directly or indirectly, in
the form of mall and shopping center builders and managers. New
formats like super markets and large discount and department stores
have started influencing the traditional looks of bookstores, furnishing
stores and chemist shops. The retail revolution, apart from bringing in
sweeping, positive changes in the quality of life in the metros and bigger
towns, is also bringing in slow changes in lifestyle in the smaller towns of
India. Increase in literacy, exposure to media, greater availability and
penetration of a variety of consumer goods into the interiors of the
country, have all resulted in narrowing down the spending differences
between the consumers of larger metros and those of smaller towns.

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Retail sector in India is primarily categorized by the type of products
retailed, as opposed to the different retail formats in operation. The Food
and Grocery vertical is the largest segment and accounts for close to 60%
of the total value addition. This category has the highest consumer
demand across all income levels and various retail formats. The Indian
consumer behavior of preferring proximity to retail formats is highly
pronounced in this sector, with food, grocery and allied products largely
sourced from the local stores or push-cart vendors.

Fig 1.2 Indian Market Segment(Indiabulls)

Apparels and consumer durables are the fastest growing verticals in the
retail sector. Mobile phone as a product category has witnessed the
highest growth in consumer demand amongst all retail product offerings,
with increasing penetration of telecommunications in towns and villages.
Many other product categories are also gaining traction predominantly in
the urban areas and emerging cities, with increasing average income and
spending power of young urban India. Also, this segment has the fastest
pace of adoption towards organized retail as consumers are getting
increasingly willing to try new and innovative products.

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The Retail Revolution :

India is the 5th largest retail market in the world. The country ranks
fourth among the surveyed 30 countries in terms of global retail
development. The current market size of Indian retail industry is about
US$ 500 bn (IBEF, India Brand Equity Foundation) and is expected to
grow at the rate of 15-20% p.a. The retail industry is expected to increase
to US$ 750-850 bn by 2015 (according to a report by Deloitte). Retailing
has played a major role the world over in increasing productivity across a
wide range of consumer goods and services. In the developed countries,
the organised retail industry accounts for almost 80% of the total retail
trade. In contrast, in India organised retail trade accounts for merely 8-
10% of the total retail trade. This highlights a lot of scope for further
penetration of organized retail in India.

The sector can be broadly divided into two segments: Value retailing,
which is typically a low margin-high volume business (primarily food and
groceries) and Lifestyle retailing, a high margin-low volume business
(apparel, footwear, etc). The sector is further divided into various
categories, depending on the types of products offered. Food dominates
market consumption with 60% share followed by fashion. The relatively
low contribution of other categories indicates opportunity for organised
retail growth in these segments, especially with India being one of the
world's youngest markets.

Transition from traditional retail to organised retail is taking place due to

changing consumer expectations, growing middle class, higher
disposable income, preference for luxury goods, and change in the
demographic mix, etc. The convenience of shopping with multiplicity of

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choice under one roof (Shop-in-Shop), and the increase of mall culture
etc. are factors appreciated by the new generation. These factors are
expected to drive organized retail growth in India over the long run.

Retail in India - The Past, Present and Future

Before the decade of eighties, India with hundreds of towns and cities
was a nation striving for development. The evolution was being witnessed
at various levels and the people of India were learning to play different
roles as businessmen and consumers.

Retail-which literally means to put on the market, is a very important

aspect of every city. Without a well organized retail industry we would
not have our necessities and luxuries fulfilled. Be it our daily groceries or
fashion accessories and everything in between, retail industry brings us
the blissful experience of shopping. Though organized retailing industry
began much earlier in the developed nations, India had not actively
participated. However with its vast expanse and young population, India
in the 21st century emerges as a highly potential retail market. The
journey of retailing in India has been riveting and the future promises
further growth. Here is a complete picture deciphering the past, present
and future trends of Indian Retail Market.

Retail in India-Past

Before the decade of eighties, India with hundreds of towns and cities
was a nation striving for development. The evolution was being witnessed
at various levels and the people of the nation were learning to play
different roles as businessmen and consumers. The foundation for a

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strong economy were being laid, youth were beckoning new awareness in
all spheres. And this brought in an opportunity for retail industry to
flourish. First in the metros and major cities later to impact sub urban
and rural market as well.

Retailing in India at this stage was completely unorganized and it thrived

as separate entities operated by small and medium entrepreneurs in
their own territories. There was lack of international exposure and only a
few Indian companies explored the retail platform on a larger scale. From
overseas only companies like Levi's, Pepe, Marks and Spencer etc. had
entered targeting upper middle and rich classes of Indians. However as
more than 50 % population was formed by lower and lower middle class
people, the market was not completely captured. This was later realized
by brands like Big Bazaar and Pantaloons who made their products and
services accessible to all classes of people and today the success of these
brands proves the potential of Indian retail market.

A great shift that ushered in the Indian Retail Revolution was the
eruption of Malls across all regional markets. Now at its peak, the mall
culture actually brought in the organized format for Retailing in India
which was absent earlier. Though malls were also initially planned for
the higher strata, they successfully adapted to cater to the larger
population of India. And it no wonder, today Malls are changing the way
common Indians have their shopping experience. However there is still
great scope for enhancing Indian mall culture as other than ambience
and branding many other aspects of Retail Service remains to be
developed on international standards.

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To your surprise there was not a single mall in India a decade before and
just a few years ago only a handful of them were striving, today there are
more than 50 malls across different cities and 2 years from now around
500 malls are predicted to come up.

Indeed this shows a very promising trend ahead, however before taking a
leap into the future of Retail in India, let's see what the Indian retail
Industry is currently occupied with.

Retail in India - Present

At present the Retail industry in India is accelerating. Though India is

still not at an equal pace with other Asian counterparts, Indian is geared
to become a major player in the Retail Market. The fact that most of the
developed nations are saturated and the developing ones still not
prepared, India secures a great position in the international market. Also
with a highly diverse demography, India provides immense scope for
companies bringing in different products targeting different consumers.

According to the Global Retail Development Index, India is positioned as

the foremost destination for Retail investment and business
development. The factor that is presently playing a significant role here is
the fact that a large section of Indian population is in the age group of
20-34 with a considerably high purchasing power; this has caused the
increase in the demand in the urban market resulting in consistent
growth in the Retail business.

And though the metros and other tier 1 cities continue to sustain Retail
growth, the buzz has now shifted from these great cities to lesser known
ones. As the spending power is no longer limited to metros, every tier 2

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city in the country has good market for almost every product or service.
Due to this, tier 2 cities like Chandigarh, Coimbatore, Pune, Kolkatta,
Ahmedabad, Baroda, Hyderabad, Cochin, Nagpur, Indore, Trivandrum
etc. provide a good platform for a brand to enter Indian market.

However there are a few precautions for every brand that explores Indian
market. As Indian consumers are very curious and have a broad
perspective, they respond well to a new product or concept and there are
very fair chances of a brand surviving well, but every Indian consumer be
it an urbanite or a small town dweller needs a feeling of value for money.
Although labeled as tight fisted, Indian consumers are great spenders
once they realize that they are getting value for their money. Also new
product /service concepts from the western world are better adopted first
by the urban Indians, the smaller markets respond well to the need
based retailing rather than luxury concepts.

As the Indian retailing is getting more and more organized various retail
formats are emerging to capture the potential of the market.

 Mega Malls
 Multiplexes
 Large and small supermarkets
 Hypermarkets
 Departmental stores are a few formats which flourishing in the
both big and small regional markets

As the major cities have made the present retail scenario pleasant, the
future of the Indian Retailing industry lies in the rural regions. Catering
to these consumers will bring tremendous business to brands from every
sector. However as the market expands companies entering India will

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have to be more cautious with their strategic plans. To tap into the
psyche of consumers with different likes and dislikes and differing
budgets a company has to be well prepared and highly flexible with their
product and services. In this regard focusing on developing each market
separately can save a brand from many troubles.

Retail in India - The Future

The size of the Indian Retail market is currently estimated at Rs. 704
crores which accounts for a meager 3 % of the total retail market. As the
market becomes more and more organized the Indian retail industry will
gain greater worth. The Retail sector in the small towns and cities will
increase by 50 to 60 % pertaining to easy and inexpensive availability of
land and demand among consumers.

Growth in India Real estate sector is also complementing the Retail

sector and thus it becomes a strong feature for the future trend. Over a
period of next 4 years there will be a retail space demand of 40 million
sq. ft. However with growing real estate sector space constraint will not
be there to meet this demand. The growth in the retail sector is also
caused by the development of retail specific properties like malls and
multiplexes.

Factors that are playing a role in fuelling the bright future of the Indian
Retail are as follows:

 The income of an average Indian is increasing and thus there is a

proportional increase in the purchasing power.
 The infrastructure is improving greatly in all regions is benefiting
the market.

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  Indian economy and its policies are also becoming more and more
liberal making way for a wide range of companies to enter Indian
market.
 Indian population has learnt to become a good consumer and all
national and international brands are benefiting with this new
awareness.
 Another great factor is the internet revolution, which is allowing
foreign brands to understand Indian consumers and influence
them before entering the market. Due to the reach of media in the
remotest of the markets, consumers are now aware of the global
products and it helps brands to build themselves faster in a new
region

However despite these factors contributing to the growth of Indian retail

Industry, there are a few challenges that the industry faces which need
to be dealt with in order to realize the complete scope of growth in Indian
market. Foreign direct investment is not allowed in retail sector, which
can be a concern for many brands. But Franchise agreements
circumvent this problem. Along with this regulations and local laws and
real estate purchase restrictions bring up challenges. Other than this
lack of integrated supply chain and management and lack of trained
workforce and flux of the market in terms of price and product choice
also need to be eliminated. Despite these challenges many international
brands are thriving in the Indian market by finding solutions around
these challenges. A company that plans to enter Indian market at this
time can definitely look forward to great business if it analyzes and puts
efforts on all parameters and with Good Planning, Timely Implementation
and a media campaign that touches Indian consumers any brand can go
far ahead in the Indian Retail Revolution.

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Government Initiatives
The Government of India has allowed 51 per cent FDI in Multi-Brand
Retail Trading (MBRT) and 100 per cent in Single-Brand Retail Trading
(SBRT)(Investment Policy). According to the existing policy, foreign
retailers investing more than 51 per cent can open outlets across the
country on the condition that 30 per cent of their sourced sales would
come from small to medium-sized domestic enterprises. Further, global
chains will now need to invest only 50 per cent of the initial compulsory
investment of US$ 100 million in setting up cold storages and
warehouses in India.
Foreign chains have been given the green signal to set up stores in cities
with a population of less than one million. Earlier, supermarkets could
only commence their operations in 53 cities, the ones with a population
of more than a million.

Top Retail Companies in India

Here is a list of top Retail Companies in India ; these are the best
companies in retail sector offering fashion, lifestyle, food, electronics,
vegetable products and solutions. Ranking process of these top Retail
Companies in India is frequently being updated the expert team of India.

1. Reliance Retail Limited

Corporate office – Mumbai, Maharashtra | Establishment – 2006
Business –Retail | Website – www.ril.com |
Reliance retail limited was incorporated in 2006, a part of Reliance
industries. The company has been rated among the best retail
companies in India. It offers complete retail solutions such as food
items, lifestyle, fashion, consumer electronics products, home

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 decorative products etc. The company has a total of 1500 outlets in
the country.

2. Pantaloons Retail Limited

Corporate office – Mumbai, Maharashtra | Establishment – 1997
Business – Retail | Website – www.pantaloonsfashion.com |
It is a flagship company of Future group and one of the leading
retail company in India. The company has more than 1000 outlets
across the India and 35000 employees. Company‟s brands include
Big Bazaar, food Bazaar Brand factory, Top 10 and Sitara.

3. Provogue India Ltd

Corporate office – Mumbai, Maharashtra | Establishment – 1997
Business – Retail and Manufacturing | Website –
www.provogue.com
It is a lifestyle and fashion company which was established in
1997. The company‟s offering include men‟s wear, women‟s wear,
fashion accessories, apparel and numerous other products. It has
over 250 stores all across the country and rated among the top
most trusted brands in India by trust research committee in year
2011.

4. Shoppers Stop
Corporate office – Mumbai, Maharashtra | Establishment – 1991
Business – Retail | Website – www.shoppersstop.com |
Shoopers Stop is a well known name in retail industry in India and
ranked among the top retail brands in India. The company is
operated and managed by K Raheja Corp Group and was

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 incorporated in year 1991. It has total 61 stores in India and offers
national and international brands of apparel, fashion and lifestyle.

5. ITC -LRBD
Corporate office – Kolkata, West Bengal | Establishment – 1910
Business – Retail | Website – www.itcportal.com |
Lifestyle Retailing Business division is a premier clothing retail
company in India branding through Wills Lifestyle and John
players. The Company has a diversified range of business activities
in FMCG, Hotels, Paper board, Packaging and Agriculture.

6. Trent Ltd.
Corporate office – Mumbai, Maharashtra | Establishment – 1998
Business – Retail | Website – www.mywestside.com |
It is a fully owned Tata group company which was incorporated in
1998 operates under brand name of Westside, Star Bazaar,
Fashion yatra and Landmark. The company offers Men‟s &
women‟s footwear, cosmetics and fashion accessories from their
retail store located in more than 30 cities in the country whereas
Landmark store deals in book and music business.

7. McDonald’s
Corporate office – Oak Brook, Illinois, U.S | Establishment –1940
Business – Restaurants | Website – www.aboutmcdonalds.com |
McDonald is leading global food service provider which has
existence in more than 130 countries worldwide. The company
started India operation in 1996 and has more than 300 food chain

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 restaurants in the country. It is a Joint venture with two Indian
companies in north & east and south & western region respectively.

8. Aditya Birla Retail

Corporate office – Mumbai, Maharashtra | Establishment – 2006
Business – | Website – www.adityabirla.com |
Aditya Birla retail limited is a subsidiary of Aditya Birla group
established in year 2006 which owns over 500 supermarkets and
15 hypermarkets. The company is rated as top 10 retail companies
in India and received prestigious Master brand Award 2012 by
World Brand congress in retail brand category.

9. Titan Industries
Corporate office – Bengaluru, India | Establishment – 1984|
Business – Jewellery and Watch retail| Website – titan.co.in |
Titan is joint venture between Tata group and the Tamil Nadu
Industries development corporation established in year 1984. Titan
is dominating the Indian Watch Industry since then and become
global international brand. Titan also has a great retail presence in
jewellery business and its brand Tanishq is one amongst the top
jewellery brand in India.
10. Kewel Kiran Clothing Limited
Corporate office – Mumbai, Maharashtra | Establishment – 1971
Business – Clothing Retail | Website – www.kewalkiran.com |
Kewel Kiran is a clothing manufacturing and retail company which
was established in 1971. The company‟s major brands include
killer, Lawman PG3, Integriti and Killer. It has more than 100

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 stores in India and it is a well known name in retail industry in
India

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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)

2.1 INRODUCTION:

The Reliance Group, founded by Dhirubhai H. Ambani (1932-

2002), is India's largest private sector enterprise, with businesses in the
energy and materials value chain. Group's annual revenues are in excess
of US$ 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

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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.

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.

2.2 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

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  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.

2.3 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.

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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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 2.4 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

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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.

Besides, the stores 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.

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.

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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.

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.

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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.

There were three 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.

Growth of Reliance Fresh

The first ever a Reliance Fresh store was established in Hyderabad,

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wherein the company, mainly focused on the fresh produced vegetables

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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

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 the manufacturer. One can get variety of dairy products in these
stores.
 Refrigerated products: This product line is dominated by the
brands available in the market and very less private labeling is
done.
 Non- Food items: Here we get many petty non food items at a
premium than market price.

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 CHAPTER- III
3.1 Title of the Project:

"Customer Satisfaction Study at Reliance Fresh".

3.2 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.

3.3 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.

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3.4 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
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

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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.

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.

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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

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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 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

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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 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

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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.

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 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

Location- Malkajgiri

District- Hyderabad

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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 during 22nd January to 21st April
2014.

4.3 Sampling Technique

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

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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 analyze data.

No. of Respondents

Percentage = x 100

Total Respondents

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.

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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.

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1- Objective

To analyze the Socioeconomic Profile of Organized Retail

Consumers Purchasing Commodities From Reliance Fresh

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

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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)

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

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age group, 26.6% above 50 age and rest, that is 6% are under age of 18-
25. As it is already observed that the customers at Reliance Fresh are
mostly male and are aged, we can 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 rupees/ 45 30
month
20,000- 30,000 rupees/ 38 25.3
month
30,000-40,000 rupees/ 45 30
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

From the above Table, we can say that out of 150 respondents, 30%
respondents are under income group of 10000-20000rupees/month

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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

From the above table and graph, we can clearly see that, out of 150

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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, 11.3% of them are House
wife's, 8% comes in other occupation like Retired Employees, 1.3%

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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

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.

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5.1.7 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 1000-
1500 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 Availability 225(45) 220(55) 60(20) 20(10) 3(3) 528 6
Parking Facility 325(65) 88(22) 162(54) 4(2) 4(4) 583 3
Near to Residency 450(90) 168(42) 30(10) 8(4) 4(4) 660 1
Value Added Service 350(70) 160(40) 30(10) 40(20) 10(10) 590 2

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

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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

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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.

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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5.3.5 Target Customers- awareness of Promotional Offers (n=150):

5.3.5 Table Awareness of Customers regarding Promotional Offers at

Store(n=150)

Awareness Of Promotional No. Of Customers Percentage

Offers

Yes 112 75

No 38 25

Total 150 100

Fig. 5.3.5 Awareness of Customers regarding Promotional Offers at

Store(n=150)

Percentage

No
25%

Yes
75%

In the Fig. 5.3.5, 74.6% of the respondents say that they are Aware of
the Promotional Schemes offered by the store and 25.3% of the
respondents say that they are Not Aware of the promotional Offers at the
store.

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5.3.6 Target Customers- Aids that they encounter (n=150):

5.3.6 Table Aids that are encountered by Customers (n=150)

Aids No. of customers Percentage

Hoardings & Boarding's 34 23

Leaflets & Pamphlets 80 53

Through SMS 36 24

Total 150 100

Fig. 5.3.6 Aids that are encountered by Customers (n=150)

Aids Used
Haordings,Boardi
ngs, and
Paintaings,
23%

Message on
cellphone
24%

Leaflets &
pamplets,
53%

From the Fig. 5.3.6, 53% of the respondents say that they encounter
mostly Leaflets And Pamphlets, 24% of the respondents say that get
SMS in regular intervals regarding the Promotional offers and discounts,
while 23% of the respondents say that they get to know the offers by
Boarding's & Hoardings.

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

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

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.

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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

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.
 Demography of Hyderabad city is perfect for retail business. In this area,
majority of the consumers fall in the age group of 26-40 that is 32% and
32.5% of the respondents belongs to 41-50 as the most of the
respondents come in the young age, these age group are tend to have a
fast and busy life hence they prefer to shop in well organized outlet and
old aged like to visit outlet, which is nearby rather than a unorganized
mandi which is far off.
 Hyderabad city is a mixture of joint family and nuclear family as per the
family life cycle, 46.6% come under family cycle with married with
dependent Children, followed by 26% that is Newly married with no
Children.
 Residential areas of the Hyderabad city are well employed which
accounts for 49.3% 26.7% of the respondents are entrepreneur because
of which, they prefer to buy ready to eat, ready to cook sort hence they
prefer organized store where everything is graded as per the quality
norms.
 As we know, in this area, most of the respondents are service holders,
this means, 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 hence at Reliance Fresh
people come for shopping for their daily needs as they get value for their
money.

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 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

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 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.
 Respondents are encountered with various Promotional aids like 53% of
the respondents find the offers from Leaflets and Pamphlets, 24% of the
 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.

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 We never understand the pricing strategy of Reliance Fresh.
 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.
 Products are not updated; new launched products are not available on
shelf.

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 7) Chapter -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.

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 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.
 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.

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 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 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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 8) Chapter- 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 socio-
economic 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 today‟s
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.

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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

Literature Review :-

Berman B and Evans J.R, (2008). Retail Management, 10th edition,

Published by Pearson education,Inc.

Burlakanti & Romala srinivas, (2013). “The Most Influential Factors Of

Consumers Buying pattern At Organized And Unorganized Retail Stores
With Special Reference to Kakinada City, Andhra Pradesh” Indian
Journal of Marketing, 62, pp. 14 – 23.

Carpenter and Moore, (2006). "Consumer Demographics, Store

Attributes and Retail Formats Choice In the US Grocery British Food
Journal of Retail & Distribution Management, 34, pp.434 – 452.

Dr. Rajkumar& miss priyanka, (2012). Service quality dimensions and

behavioral intentions Of reliance fresh, 1,(4), pp. 42-43

Kishore, B. (2005). Who Will Execute The Great Indian Retail Dream?
Image Retail, 1, pp. 14-22. Smita V.G. (2012). “Factor influencing the
Buying Behaviour of Organized Retail Consumers: A study on Food and
General Stores in Visakhapatnam.” Indian Journal of Marketing, 49, pp.
23 - 33.

Kumar, Thirunavukkarasu, (2011). An Empirical Study on Customer

Contentment towards Reliance Fresh , PP 73-75
Louden D.L. & Bitta Delia (2010). Consumer behavior, 4th edition,
published by Tata Mc. Graw hill.

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Srivastava, R.K. (2008). "Changing retail scene in India”, International
Journal of Retail & Distribution Management, 36 (9), pp.714 –721.

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 Questionnaire

Dear Sir/Madam,

I request you to please co-operate & fill the questionnaire to

facilitate our study.

Your information will be kept confidential & will be used only for
study purpose.

Name: ________________

Address (location): __________________

Contact No: ______________

Gender: Male Female

Please let me know a little more about yourself.

Q.1) Please specify your Age group (years);

(a) 18-25 (b) 26-40 (c) 41-50

(d) Above 50

Q.2) Your family life cycle;

(a) Bachelor (b) Newly married without children

(c) Married with dependent children

(d) Married with independent children

Q.3) Your Educational Qualification;

(a) Under Graduate (b) Graduate (c) Post Graduate

(e) Others………….

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Q.4) Occupation:

(a) Business

(b) Employee (c) Professional

(d) House wife (e) Student (f) Others ………….

Q.5) Please specify your monthly household income (Rs.)

(a) Less than 10,000 rupees/month

(b) 10,000 to 20,000 rupees/mon

(c) 20,000 to 30,000 rupees/month

(d) 30,000 to 40,000 rupees/month

(e) Above 40,000 rupees/month

Q.6) How often do you visit Big Bazaar?

First time Once a week Twice a week

Weekends

Once a month Anytime During special offers

Q.7) What is your purchase plan before coming to Big-bazaar?

a) To purchase b) Just for visit

c) To know about the new offer

d) To know the new products e) If good offer found than to

purchase

Q.8) Which are the sections you normally purchase the product?

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(a) Grocery (Staples, pulses)
(b) Fruits & Vegetables

Q.9) On an average how much amount of money do you spend in a visit

to Big Bazaar?

(a) Below 500 (b) 500 – 1000

(c) 1000 – 1500 (d) 1500 – 2000 (e) More than 2000

Q.10) Where do you generally prefer to shop food, groceries, fruits &
vegetables?

Big bazaar Reliance fresh

Grocery (kirana) shop Heritage Fresh

Q.11)Are you aware of Reliance Fresh own private brands:

Yes No

Q.12) Which brand does u generally prefer while purchasing groceries

from Reliance Fresh?

Reliance Select Others

81 Page
Q.13) Which factors do you generally prefer to shops from organised

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

Factors Always Mostly Often Rarely Never Cumulative Rank

Score
Good Quality
More Variety
Product
Availability
Parking
Facility
Near to
Residency
Value Added
Service
retail? Please put a mark.

Q.14) Rate the following factors in accordance with the retail shops
where you would like to

buy? [On the scale of 1 – 5 where 1.Very good 2. Good 3. Average 4. Poor
5. Very poor]

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

Bulk
Purchase

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 Location

Good Will

Discount
schemes
Shopping
Experience

Q.15) Are you aware of promotional offers at Big Bazaar?

Yes No

Q.16) Which is the advertisements of Reliance Fresh you come across?

Hoardings, Boardings & Paintings

Leaflets & Pamphlets

SMS Service

Q.17) The Promotional offers at Big Bazaar are attractive and induce you
to make a purchase?

Strongly Agree Agree

Neither Agree/Nor Dis-agree

Dis-agree

Strongly Dis-agree

Q. 18) What kind of do you expect from improvement Reliance Fresh?

Value added Service Fast Billing

Provision of Polythene

Q. 19) Please suggest any improvements if any?

83 Page