PROJECT REPORT

1. A PROJECT REPORT
ON
A STUDY OF CONSUMER BUYING BEHAVIOUR
WITH REFERENCE TO RELNCE FRESH
Submitted in partial fulfilment of requirement
For the award of the Degree of
Bachelor of Business Administration
UNDER THE SUPERVISION OF: SUBMITTED BY:
Mr. M. MUMSHAD DIVESH KHANNA
(Asst. Professor) ROLL NO. MBA/12/52
AL-FALAH SCHOOL OF ENGINEERING & TECHNOLOGY
(Affiliated With Maharshi Dayanand University, Rohtak)
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2. DECLARATION
I …………………, Roll No. BBA/12/52 of Bachelor of Business Administration of the Al
falah School of Engineering & Technology hereby declare that the Summer Training project
report entitled “A STUDY OF CONSUMER BUYING BEHAVIOUR WITH REFERENCE TO RELNCE
FRESH
” is an original work and the same has not been submitted to any other institute for the award of
any other degree. A seminar presentation of the Summer Training Project Report was made on
……… ……………and the suggestion as approved by the faculty duly incorporated.
Presentation Incharge Signature of the Candidate
(Faculty)
Countersigned
Director/principal of the Institute
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3. ACKNOWLEDGEMENTACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude to the following personalities without
whose help and guidance the successful completion of my project work would have been
remained a dream.
I would like to take the pleasure of this opportunity to express my heartful gratitude to my guide
Professor Mr. M. Mumshad who took personal interest and gave valuable suggestions through
out my field work and completion of the project.
I thank all my faculty members of BBA department for their valuable suggestions throughout
my course.
The importance of the moral support and good wishes of my parents and friends is external and
I am very much indebted to them.
Finally I thank all my friends who directly or indirectly helped me a lot during my project.
Divesh Khanna
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4. Executive Summary
Retailing is the interface between the producer and the individual consumer buying for personal
consumption. This excludes direct interface between the manufacturer and institutional buyers
such as the government and other bulk customers. A retailer is one who stocks the producer’s
goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As
such, retailing is the last link that connects the individual consumer with the manufacturing and
distribution chain. The retail industry in India is of late often being hailed as one of the sunrise
sectors in the economy. AT Kearney, the well-known international management consultancy,
recently identified India as the ‘first most attractive retail destination’ globally from among
thirty emergent markets. It has made India the cause of a good deal of excitement and the
cynosure of many foreign and domestic eyes. The entry of foreign and Indian retail giants like
Wal-Mart, Metro, Reliance, Birla, Tata etc. made Indian market more competitive which is at
cut throat level. So how retailers can reach to their end customers, to win the mind share and
increase the basket size of each shopping trip.
India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing lifestyles, and favourable
demographic patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2007 to
amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. It has further been predicted that the retailing
industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5
billion.
The growth of scope in the Indian retail market is mainly due to the change in the consumer’s
behaviour. For the new generation have preference towards luxury commodities which have
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5. been due to the strong increase in income, changing lifestyle, and demographic patterns which
are favourable.
Reliance Retail is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across
the country. The reliance fresh supermarket chain is ril’s rs 25,000 crore venture and it plans
to add more stores across different g, and eventually have a pan-India footprint by year 2011to
the company. .
AS The twentieth century has come to and we have moved in to third millennium , we can see
many development and changes taking place around us with all the industries and firms within
each industry trying to keep pace with all the industries and firm within each industries trying
to keep pace with the changes and diverse need of people . Marketer have regarded
“customer” as the king and evolved all activities to satisfy him or her, this concept gaining
more momentum and importance today.
More than a century ago, the father of our nation, Mahatma Gandhi, had made visionary and
deep meaningful statement at Johannesburg, South Africa in 1980. A customer is the most
important visitor of our premises. He is not dependent on us .We are dependent on him He is
not interruption on our work. He is the purpose of it and not an outsider on our premises. He
is a part of it. We are not doing him favour by serving him.
Today the entire firm engaged in a process of creating a life time value and relationship with
customers. This report start with discussion on the diversity of consumer behaviour and the
need for studying consumer buying behaviour and consumer as a related field of marketing
.this can be largely be attributed to the prevailing market situation .Today the company image
is built and made known by its customers. Thus success of the firm determined how effective it
has been in meeting the diverse consumer need and wants by treating each customer as unique
and offering products and services to suit has or her need.
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6. Consumer buying behaviour will be a primary force in determining how this transition will
evolve. Getting closer to the customer in today’s highly competitive landscape is essential for
the entire industry and is no longer just a retail issue. It requires all organisations across the
supply chain to work as a single enterprise, sensing and responding rapidly to consumer demand
in a co-ordinated manner. Detailed analysis of the changing patterns of consumer demand,
shopping trends.
This research report is based on to know the
1- Major factors influencing consumer buying behaviour.
2- Buying decision process.
3- The stage in buying decision process
4- Awareness of consumer towards organised retail sector
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7. Contents
7
S.N. INDEX PAGE NO
Executive Summary 5
Declaration 9
Acknowledgement 11
CHAPTER- 1 INTRODUCTION &BACKGROUND
1.1 Company Overview 14
1.2 Popular Profile 21
1.3 Supply Chain Model 27
1.4 SWOT Analysis 30
1.5 Corporate Social Responsibility 33
1.6 Major Player 35
CHAPTER-2 RESEARCH METHODOLOGY &DESIGN
2.1 Objective of Research 38
2.2 Type of Research 41
2.3 Source of data & Collection tool 41
2.4 Sampling 42
2.5 Sample size 42
CHAPTER-3 ANALYSIS & INTERPRETATION
Meaning of consumer Buying Behaviour 44
Interpretation of collect data 49
CHAPTER-4 RESEARCH FINDING 69
CHAPTER-5 LIMITATION OF RESEARCH 71
CHAPTER-6 SUGGESTION 73
APPENDIX 75
REFRENCES 77

8. Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
RELIANCE GROUP
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 USD 27 billion. The flagship company, Reliance Industries Limited, is
a Fortune Global 500 company and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of Reliance.
Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical
integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and
oil and gas exploration and production - to be fully integrated along the materials and energy
value chain.
The Group's activities span exploration and production of oil and gas, petroleum refining and
marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and
retail.
Reliance enjoys global leadership in its businesses; The Group exports products in excess of
USD 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) and
Reliance Industrial Infrastructure Limited.
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9. Reliance Industries Limited is India's largest private sector conglomerate (and second largest
overall) with an annual turnover of US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal
year ending in March 2008 making it one of India's private sector Fortune Global 500
companies, being ranked at 206th position (2008). [1]
It was founded by the Indian industrialist
Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing financial instruments
like fully convertible debentures to the Indian stock markets. Ambani was one of the first
entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of
Reliance Industries to the top slot in terms of market capitalization is largely due to
Dhirubhai's ability to manipulate the levers of a controlled economy to his advantage.
Though the company's oil-related operation forms the core of its business, it has diversified its
operations in recent years. After severe differences between the founder's two sons, Mukesh
Ambani and Anil Ambani, the group was divided between them in 2006. In September 2008,
Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most
respected companies"
Subsidiaries of RIL
• Reliance Petroleum
• Ranger Farms Limited
• Retail Concepts and Services (India) Private Limited
• Reliance Retail
• Reliance Global Management Services (P) Limited
• Reliance Biopharmaceuticals
• Reliance Ghatraj Services
• Reliance Engineering Associates (P) Limited
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10. Reliance Retail Limited
Reliance is gearing up to revolutionize the retailing industry in India. Towards this end,
Reliance is aggressively working on introducing a pan-India network of retail outlets in multiple
formats.
A world class shopping environment, state of art technology, a seamless supply chain
infrastructure, a host of unique value-added services and above all, unmatched customer
experience, is what this initiative is all about.
The retail initiative of Reliance will be without a parallel in size and spread and make India
proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the
Indian consumer, both in quality and quantity, will be an integral feature of this project. By
creating value at all levels, we will actively endeavour to contribute to India's growth.
The project will boast of a seamless supply chain infrastructure, unprecedented even by world
standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch
almost every Indian customer and supplier.
With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small
shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to
lead Reliance Group’s foray into organized retail.
With a 27% share of world GDP, retail is a significant contributor to overall economic activity
across the world. Of this, organized retailing contributes between 20% to 55% in various
developing markets. The Indian retail industry is pegged at $ 300 billion and growing at over
13% per year. Of this, presently, organized retailing is about 5%. This is expected to grow to
10% by 2011. RRL has embarked upon an implementation plan to build state-of-the-art retail
infrastructure in India, which includes a multi-format store strategy of opening neighbourhood
convenience stores, hypermarkets, and specialty and wholesale stores across India.
RRL launched its first store in November 2006 through its convenience store format ‘Reliance
Fresh’. Since then RRL has rapidly grown to operate 590 stores across 13 states at the end of
FY 2007-08. RRL launched its first ‘Reliance Digital’ store in April 2007 and its first and
India’s largest hypermarket ‘Reliance Mart’ in Ahmadabad in August 2007. This year, RRL has
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11. also launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance
Footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance
Timeout), auto accessories and service format (Reliance AutoZone) and also an initiative in the
health and wellness business through ‘Reliance Wellness’. In each of these store formats, RRL
is offering a unique set of products and services at a value price point that has not been
available so far to the Indian consumer. Overall, RRL is well positioned to rapidly expand its
existing network of 590 stores which operate in 57 cities.
During the year, RRL also focused on building strong relationships in the agri-business value
chain and has commenced marketing fruits, vegetables and staples that the company sources
directly to wholesalers and institutional customers. RRL provides its customers with high
quality produce that has better shelf life and more consistent quality than was available earlier.
RRL has made significant progress in establishing state-of-the-art staples processing centres
and expects to make them operational by May 2008.
Through the year, RRL also expanded its supply chain infrastructure. The Company is fully
geared to meet the requirements of its rapidly growing store network in an efficient manner.
Recognizing that strategic alliances are going to be a key driver to its retail business, in FY
2007-08, RRL established key joint ventures with international partners in apparel, optical and
office products businesses. Further, RRL will continue to seek synergistic opportunities with
other international players as well. This year, RRL will continue its focus on rapid expansion of
the existing and other new formats across India.
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12. Popular Profiles at Reliance Retail
Management team
Name Designation
Mr. Mukesh Ambani Chairman&Managing Director
Nikhil R Meshwani Executive Director
Hital R Meshwani Executive Director
Madhumita Mohanti Deputy General Manager
Akashay Lokhande Area Manager-Operation &Sales and NSO
Devandra Chawla Vice-President-Business Head, Merchandise
Head
Zubin Nowrojee, Mangement State Head Category
Formats of Reliance RETAIL
Reliance Fresh,
Reliance Mart,
Reliance Digital,
Reliance Trendz,
Reliance Footprint,
Reliance Wellness,
Reliance Jewels,
Reliance Timeout and Reliance Super,
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13. RELIANCE fRESH
APKA FRESH APKE PADAOS ME
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across
the country. The reliance fresh supermarket chain is ril’s rs 25,000 crore venture and it plans
to add more stores across different g, and eventually have a pan-India footprint by year 2011.
The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products. Besides, the stores would provide direct employment to 5 lakh 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
BACK GROUND
We can see many examples of businesses where, first we grow and then think of expanding but
Reliance is quite different. Reliance has developed such huge amount of resources and capital
over the years that whenever it steps into any segment it is not required to wait for growing
signal, that’s why it always thinks of expanding without any boundaries. Reliance retail is next
Step by RIL which will be a pan India project.
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by
Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India. Reliance plans to invest Rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the
13

14. country. The Reliance Fresh supermarket chain is RIL’s Rs 25,000 crore venture and it plans to
add more stores across different g, and eventually have a pan-India footprint by year 2011.
The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products. Besides, the stores would provide direct employment to 5 lakh 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.
The company is planning on opening new stores with store-size varying from 1,500 sq ft to
3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products and dairy
products. Each store is said to be within a radius of 1-2 km of each other, in relation to the
concept of a neighbor store. However, this is only the entry roll-out that the company has
planned. Bangalore is said to have 40 stores in all by the end of the year.
In a dramatic change due circumstances prevailing in UP, West Bengal and Orissa, It was
mentioned recently in News Dailies that, Reliance Retail is moving out stocking. Reliance
Retail has decided to minimize its exposure in the fruit and vegetable business and position
Reliance Fresh as a pure play super market focusing on categories like food, FMCG, home,
consumer durables, IT, wellness and auto accessories, with food accounting for the bulk of the
business.
The company may not stock fruit and vegetables in some states, Orissa being one of them.
Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided
not to compete with local vendors partly due to political reasons, and partly due to its inability
to create a robust supply chain. This is quite different from what the firm had originally
planned. When the first Reliance Fresh store opened in Hyderabad last October, not only did the
company said the store’s main focus would be fresh produce like fruits and vegetables at a
much lower price, but also spoke at length about its “farm-to-fork’’ theory. The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way.
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15. FARM TO FORK
The Reliance retail company sources say it is setting aside Rs 50,000 crore to build its
farm-to-fork linkage. Reliance has drawn up plans for a presence in 784 towns and
6,000 mandi (wholesale market) towns with 1,600 rural business hubs to service these. It
has already rolled out 177 Reliance Fresh stores across major towns in 11 states.
According to a company report, RIL is targeting a turnover of Rs 40,000 crore in the
next few years.
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16. TRADITI
ONAL MODEL OF RETAIL RELIANCE “FARM TO FORK”
SUPPLY CHAIN MODELS of Reliance Retail
Reliance started its retail operations of Reliance Fresh stores with following supply
chain model. Procuring directly from the farmers and operating with moderate margin
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17. but mass selling was key to Reliance fresh operation for first few months. The following
figure depicts the first Reliance fresh model
RELIANCE FRESH
WHOLESALE TRADING (WST) :
Reliance formalized its second supply chain model to shift itself from grocery retailer to
grocery supplier by focusing and establishing itself in Mandi’s.
17
RELIANCE OWN
LOGISTICS
RELIANCE
FRESH
OUTLETS
RELIANCE
FRESH
OUTLETS
RELIANCE
FRESH
OUTLETS
PROCESSIN
G
UNIT/POINT
COLLECTIO
N
POINT/UNIT
Farmers Own Transportation
Reliance own Logistics Reliance own Logistics
Farmers Own Transportation
RF
RF
FARMERS
CATEGOR
Y 1
FARMERS
CATEGOR
Y 2
FARMERS
CATEGOR
Y 3

18. STEPS IN WTS MODEL:
1) Reliance has owned farms on contract basis for production of specific crop which is
decided after extensive research depending on
• SOIL CONDITIONS,
• CLIMATE CONDITIONS,
• RETURN OVER COSTS INCURRED.
So as to yield best possible results.
2) Different vegetables and fruits from such farms are collected through reliance own
Logistics and brought to collection Processing centres where quality check and other
required processing is done.
In processing centres workers wearing balaclavas, woollen trousers and bulky jackets
work inside a room kept at a constant 3oC, peeling and chopping vegetables, spinning
them dry and then heaping them in small plastic packets before placing them in plastic
transport crates. At the other end of the 5,000-sq-m warehouse, men unload crates of fruits
from a truck pulled up to a spotless loading dock. A quality-control expert samples every
tenth crate; if the fruits are good a team will ready them for delivery within hours to
Reliance fresh stores around different places like U.P and as far away as Hyderabad and
even Mumbai (formerly Bombay). If they are not, workers will inspect the entire shipment
and discard anything below standard.
3) Merchandise from these collection processing centers are collected and loaded for
Wholesale mandi’s. As this merchandise is to be made available by 4 A.M in morning thus
deliveries in trucks are sent at time depending upon:
TRANSIT TIME. – Time required reaching destination i.e. mandi’s.
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19. MARGIN TIME. – Time period between a truck reaching mandi and then Unloads. Can be 2
to 3 hours.
LOADING AND UNLOADING TIME.
4) From mandi’s where the trucks have been unloaded, roadside vendors and pull carters
Buy fruits and vegetables to supply in households.
5) In case still some vegetables and fruits are not sold reliance logistics own
Transportation sends them to reliance fresh stores.
SWOT ANALYSIS
The Indian retail market accounted for $ 200 billions. Food accounts for over two-thirds of the
$200-billion Indian retail market. Yet, it has seen less than 1 per cent penetration by modern
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20. retail so far.
Reliance industries which always looking for new business opportunities just started a new era
with its introduction of new concept stores named Reliance Fresh with opening convince store
in high streets of Banjara hills of Hyderabad. Reliance Fresh is very different from what
modern retail has offered in India so far and with this reliance is planning to establish strong
retail network in India in food and farm sector. They have started with new eleven stores in the
last week and they are thinking to add 100 more stores to their feather by the end of this year.
Let’s do a SWOT analysis on the Reliance Fresh.
Strengths:
Reliance is the first into enter into this unorganized sector of vegetables and fruits. According
to them its intentions to have100% farm fresh foods in their new retail stores. It is also adding
shortly a juice bar, and even a large counter for puja flowers. In fact, over 60 per cent of the
floor space has been dedicated to fresh fruits and vegetables, the rest to other food products
like staples, spices, bakery, etc. But reliance has decided not to add any bar soap or toothpaste
and detergent in its shelves. So by using this strategy they are positioning themselves different
from other players of the industries like Food world, Big Bazaar and Nilgiris. But over come
the short comings of these specialized stores they are also introducing new Reliance full-
fledged supermarket called Shakhari Bhandar which offers each and everything from the staple
to soap. Most of the staples are under its own private label brand — ‘Reliance Select’. There is
a 500g channa dal pack priced at Rs 28, a 500g urad dal pack for Rs 39, all under Reliance’s
own brand. Excepting a few packets of Nestle’s Maggi, or MTR’s masalas or Pepsi’s Lays
chips, there is very little shelf space given to the big brand owners in the country. Reason:
private labels offer far better profit margin to the retailer than branded products of FMCG
companies. Most of these outlets will need only 2,000-5,000 sq. ft. A supermarket may need as
much as 8,000-10,000 sq. ft.
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21. Weakness:
This is definitely an interesting business venture but it may miss out on the opportunity to
capture a greater share of the customer’s wallet. For customers, too, this could be irksome, as
they would have to visit another store to pick up essentials. Reliance could easily fix this
problem by adding a few small counters for some basic non-food products. According to their
official this format is not final one they are accepting the new changes which are required to
attract the large number of customers.
Opportunities
Reliance wants to build a high-profitability business and food is, perhaps, the best venture to
start. That is because the Indian food supply chain is grossly inefficient. There are several
intermediaries, each of whom adds his own profit margin to the cost. Besides, there is huge
wastage in transit. This offers potential for savings and profits. To reduce the cost and increase
the profit it has been sourcing out its requirements from the farmers. For example, the leafy
vegetables, brinjals, tomatoes and green chilies in the Banjara Hills outlet were sourced
directly from farmers in Vantimamdi, Chevella and nearby mandals in Ranga Reddy district of
Andhra Pradesh. The supply chain already has been backed by few hundred farmers the
number is estimated to touch million in next five years. The main aim of the reliance is to
eliminate the intermediaries in the sector and reduce the cost. Smaller stores have two
advantages. They bring down the cost of real estate (and increase profits). It is easier to find
space for small convenience stores in a quiet neighbourhood than for supermarkets in high
streets.
Threats:
This model is engineered to clock a faster turnover of inventory — Reliance expects
consumers to visit the store at least twice a week for their top-up groceries. Each store will
have an investment of Rs 50 lakh to Rs 60 lakh. Unlike global retailers who operate on thin
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22. margins, Reliance Retail is looking at a fairly high-margin business model. Deliberately
stopped short of being a full-fledged supermarket rather, it has limited itself to a food and
grocery convenience store. They also have a threat from the existing supermarkets which
provides all the services to its customers. For Example Food world and Nilgiris also provides
food and beverages with other personal care products. These convince are not existed in the
present Reliance retail stores.
CORPORATE SOCIAL RESPONSIBILITY
Today when most of the companies are busy in making profits by any means, there are few
Ones who are focused to return this society, a part of what they have earned through this
society. Reliance retail is one of them. Following efforts of reliance retail are aimed at
benefiting the society making reliance socially responsible:
1) Reliance Retail aims at recruiting people from the underprivileged community in
society. "Hence, we are planning to train students from corporation schools and schools
run by NGOs. And, we consider this as a part of our corporate social responsibility," he
said.
Asked whether the company will take students on an employment basis and pay them
a stipend during the course period, he said that actually, it is planning to charge a "small
fee" from those who want to join the course "as we want to bring in some discipline and
regularity among the students", and will reimburse that once they are inducted into
service.
2) Farming in India is highly fragmented and subject to harsh climatic conditions: once
harvested, it is very difficult to keep fruits and vegetables fresh. To secure high quality,
Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers
from villages through Collection Centers.
With this concept, Reliance has built a business model generating shared value that
links the company supply chain more closely to poor farmers in Indian villages.
Reliance is providing a guaranteed market for the farmers’ produce, reducing
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23. transaction costs and training the farmers in better and sustainable farming practices.
This initiative results in higher income and upgrading of skills for the farmers, and
reduced spoilage of produce (up to 35 percent) and better quality products f or Reliance
retail stores.
3) Reliance retail has adopted “farm to fork” theory which means it is procuring directly
from the farmers thus offering them quite reasonable prices for their produce as now no
intermediaries are involved. In return Reliance is giving farmers information about how can
farmers improve their productivity. They have centers in villages who apart from providing
information make farmers aware of market rates of different crops so that farmers can choose
crops they want to sow to become profitable. Farmers are provided technical help as well like
information about quality of seeds and fertilizers.
Major players in retail sector
Shoppers Stop:
Shoppers’ Stop is the pioneer of pan-nation one-stop retail outlets. Starting in 1991 with a
single store in Mumbai, it has now developed more than 20 stores (total retail space crossed the
1 m mark in the second quarter of FY07). The company has added 1,568,479 sq ft of area
during the year taking its total store area to 1,170,548 as on March 2007. The company has a
wholly owned subsidiary – Crossword – a specialty retail chain with over 32 stores spread
across the country. This store specialises in books, gift articles and stationery. During the
quarter, Crossword opened its first store and 2 ‘Stop & Go’ stores at the Mumbai domestic
airport. Further, it forayed into airport retailing through a joint venture with The Nuance Group
AG of Switzerland. The company has also made an entry into the entertainment sector by
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24. acquiring 45% stake in Time zone Entertainment Pvt. Ltd. The recent moves by the company
will widen the offering and de-risk its dependence on the flagship Shoppers’ Stop stores.
Pantaloon:
Incorporated in 1987, Pantaloon Retail is among the pioneers in chain retailing. It is the largest
retailer in the country operating 350 stores across segments in over 40 cities across the country
and constituting 5 m square feet of retail space. Starting out with dedicated apparel stores
(Pantaloon), the company has stores across the cross-section of the society. The company’s
business is broadly divided into 2 segments, Lifestyle and Value retailing. On the apparels front
it has Pantaloon (31 departmental stores), Central Malls (4 seamless malls as well as its other
concepts). These stores can be classified under ‘Lifestyle Retailing’. On the general
merchandise front it has Big Bazaar (51hypermarkets), Food Bazaar (77 supermarkets) and
Fashion Station (5 fashion stores) and other delivery formats. These fall under ‘Value
Retailing’.
more
The more. Chain of supermarkets, are bright and clean stores, at convenient locations with
layouts that allow ease of navigation. The product display is well organised and facilitates ease
of choice. The stores have been designed by Fitch, the leading international retail design firm.
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25. The stores promise a range of benefits to consumers and are a solution to the many problems
faced by housewives while shopping for their daily needs. The retail offering from the Aditya
Birla Group, has been crafted after in-depth research of the needs and expectations of the Indian
consumers. more. is the answer to the shopping needs of the Indian housewife who wants a
modern and convenient option in her neighbourhood, with an attractive and consistent range of
products? more. assures consumers the security of knowing that they are paying the best price
in the market for good quality products.
RPG Group:
RPG Enterprises is one of India’s largest business conglomerates, with a turnover of US$ 2.55
bn and assets worth US$ 1.8 billion. Since its inception in1979, RPG Enterprises has been one
of the fastest growing groups in India with more than 20 companies operating successfully in 7
business sectors: Retail, IT & Communications, Entertainment, Power, Transmission, Tyres and
Life Sciences. In 2001, it established ‘Giant’ Hypermarket
Provogue (India) Ltd., (PIL) formerly Acme Clothing Pvt. Ltd was incorporated in November
1997, converted in to a public limited company in March 2005. It deals with fabrics, dyestuffs,
chemicals and textile machinery. PIL operates in two core industry segments. The first being
designing, manufacturing and selling branded ready-made garments and other accessories under
25

26. the brand 'Provogue'. The second business is export of finished fabrics, dyestuffs, chemicals and
textile machinery to several markets in African continent.
26

27. Research Objective
• To study consumer buying behaviour reliance fresh customer of Delhi
• To know about the consumer awareness towards Reliance fresh.
27

28. 28

29. Research Methodology
Research Problem
To make a comprehensive study of Reliance Fresh &know the Buying behaviour & of
Reliance Fresh customers.
Type of research
Descriptive type research has used to complete the project. This research is base on fact
finding enquires and the variables are totally independent and uncontrollable.
Data collection:
Primary Data
Primary data of research are collected from direct resources (customer of Reliance fresh)
through questionnaire.
29

30. Secondary Data
Secondary Data which are used for research to know the history scop of Retail industry are
collected from already available resources like net and other sources
Universe
Universe of this research is reliance fresh customer of Delhi.
Sampling technique
Random sampling is used for research project. I have given equal weightages to my all
respondent and chose them randomly without any biased like gender, age, income culture.
Sample size
425 respondents has selected as sample size for research.
Data representation technique and tools
Columns chart & Pie chart has used for representation.
30

31. 31

32. Understanding The Buying Behaviour Of Reliance Fresh Consumers
Definition
Purchase decision making pattern that is a complex amalgam of needs and desires, and is
influenced by factors such as the consumer's (1) societal role (parent, spouse, worker, etc.), (2)
social and cultural environment and norms, and (3) aspirations and inhibitions.
Buying Behaviour is in the Advertising, Marketing, & Sales and Purchasing & Procurement
subjects.
Buying Behaviour appears in the definitions of the following terms: marketing research,
advertisement (ad), ACORN, economic environment, activities, interests, opinions (AIO) and
consumer research.
Buying Behaviour appears in these other term: consumer buying behaviour.
32

33. Model of Buying Behaviour
Marketin
g Other Buyer’s Buyer’s Buyer’s
Stimuli Stimuli
Characterist
ics Decision Decision
Process
Product Economic Cultural
Problem
recognition Product choice
Price
Technologica
l Social
Information
Search Brand choice
Place Political Personal Evaluation Dealer choice
Promotion Cultural
Psychologica
l Decision Purchase timing
Post purchase Purchase amount
Behaviour
When I have analysed the model of buying Behaviour finding that people of DELHI are
influenced by the marketing stimuli (4 P’s) people are focused on price rather than product,
place and promotion, other factor which influenced people is the technological advancement.
Cultural Social
33

34. Personal
culture
Reference
Groups Psychological
Cycle Stage Motivation
Subculture Family Economic Perception
Circumstances Learning
Life Style
Beliefs and
Attitudes
BUYERRoles and
Statuses
Personality
and
Social Class Self Concept
Reference groups can have potent influence on behaviour in general, and they may also be very
influential on consumer behaviour, considering the ‘Consumer Goods Segment’. Family and
friends in specific are considered before making a decision about purchasing a product. But
their purchase decision depends completely on self-opinion.
Where reference groups’ influence is operative, the advertiser should stress not only the people
who buy the product but also those who influenced the purchasing decision.
The process may be viewed as starting when the consumer engages in problem recognition.
Problem recognition occurs when the consumer is activated by awareness of a sufficient
difference between his / her concept of ideal situation. The action occurs only when the
consumer perceives a sufficiently large discrepancy between the actual and ideal states.
Given that the consumer is aroused to action, the next state is internal search for a quick and
largely unconscious review of memory for stored information and of an experience regarding
the problem. This information in the form of beliefs and attitude influence the consumer’s
preference towards band. If an internal search does not provide sufficient information about
Products, or how to evaluate them, the consumer continues with a more involved external
search for information.
34

35. Any information stimuli are then subjected to information processing activities. This process
involves allocating attention to available stimuli, deriving meaning from these stimuli. The
alternating evaluation phase involves comparing the information gained in the search process
for alternative product and brands to the product judging criteria on standards the consumer has
developed. When such a comparison leads to favourable evaluations, the consumer is likely to
develop a purchase intention towards that alternative that received the most favourable
evaluation.
A purchase process follows strong purchasing intentions. This involves a series of selection,
including the type of retail outlet as well the specific brand on service to use. The consumer’s
purchase then leads to various outcomes. One such outcome is satisfaction as a result of direct
experience in using the brands. Satisfaction will affect the consumer’s belief about the brand.
Other outcome is dissatisfaction and post sale doubt.
Many ad agencies conducted an in-depth study of consumer buying behaviour and found that
they all crave for peer acceptance and parental non-influence. Beyond this they are an enigma
35

36. 36

37. (1). Gender of the consumer
Male & Female
Data Collected-
Data collected for this questionnaire to know the gender of customer of
reliance fresh.
ANALYSIS—
Data collected for project from 425 responded
in which 275 are female which are 64.7% and 150 are male which are 35.29% of total
respondent
Interpretation-
In total respondent we analyses that most of the customer in this store is
female and their demand always consider at the time of taking the decision. Company should
try to attract new male customer by provide new scheme on their customer
(2). Age of customer
37
Male & Female
150 275

38. 10-20 21-50 51& above
123 230 72
0
50
100
150
200
250
10-20 21-50 51& above
Data Collected-
Data collected for this questionnaire to know the age of customer of
reliance fresh.
ANALYSIS—
Data collected for project from 425 responded in which 123 are the age
between 10-20 which are28.9% and230are between age of 21-50 which are54.29%and 72 are
between age of 51 & above which are 16.9 % of total respondent
Interpretation-
In total respondent we analyses that most of the customer are youth .in
my observation I found that most new people believe in convenience shopping It help the
company to keep management such type which understand the problem of customer easily and
rectify the problem effectively.
(3). How offer do you shop
38

39. Daily ( ) week ( ) fortnightly ( ) once in month ( )
0
50
100
150
200
250
Daily Week Fortnightly Once in month
Data Collected-
Data collected for this questionnaire to know the shopping behaviour of
customer of reliance fresh.
ANALYSIS—
Data collected for project from 425 responded in which 22 are like to
purchase daily which are5.1% and224arelike to purchase weekly which are52.27%and 89 are
39
Daily Week Fortnightly Once in month
22 224 89 90

40. likely to purchase fortnightly which are 20.9%, 90 likely to purchase once in a month which
are21.17% of total respondent
Interpretation-
In total respondent we analyses that most of the customer are likely to
purchase on weekend .in my observation I found that more scheme should be provided on
weekend.
40

41. (4). What do you mostly shop for at mentioned store?
Vegetables ( ) Grocery ( ) cosmetic product ( ) all product ( )
Vegetable Grocery Cosmetic
product
All product
108 96 21 200
Vegetable
Grocery
Cosmetic product
All product
Data Collected-
Data collected for this questionnaire to know the products which are
like to purchase by the customer.
ANALYSIS—
41

42. Data collected for project from 425 responded in which 200 customer are
like to purchase all product which are47.00% and108 are like to purchase vegetables which
are25.41%and 96 are likely to purchase grocery 22.5 which are 22.58.%, 21 likely to purchase
cosmetic product which are4.9% of total respondent
Interpretation-
In total respondent we analyses that most of the customer are like to
purchase all product in the store. Company should try to retain the customer. And should
increase the variety o cosmetic product& grocery.
42

43. (5). Preference of shopping?
Quality ( ) Brand ( ) Price ( ) one stop shop
Quality brand Price One stop shop
102 134 59 130
quality
brand
price
One stop shop
Data Collected-
Data collected from this questionnaire to know the preference the
shopping
ANALYSIS—
Data collected for project from 425 responded in which 134 customer are
believe in reliance brand which are31.50% and130 are like to purchase in one stop shop which
are 30.54%and 102 are like to purchase quality product which are 24.00%, only 59 respondent
consider price which are 13.08.%.
43

44. Interpretation
In total respondent we analyses that most of the customer are believe in
reliance brand like to purchase qualitative product in stop shop. Here I observed that people
want to purchase fresh and original product and want better service.
44

45. (6). which store do you kept in preference for purchasing
Reliance Fresh ( ) Big apple ( ) other ( ) Local market
Local market Reliance fresh Big apple Other
244 83 80 18
0
50
100
150
200
250
Reliance fresh Big apple Local market other
Data Collected-
Data collected from this questionnaire to know the preference of the
purchasing (comparison of store to other).
ANALYSIS—
Data collected for project from 425 responded in which 244 customer are
like to purchase from local market which are57.74% and 83 are like to purchase from reliance
fresh which are19.51%and 83 are likely to purchase from Big apple which are 18.82.%, 18
likely to purchase other which are4.2% of total respondent
45

46. Interpretation
In my observation I found till today organised retail sector didn’t
penetrate the market. Company should try to open new convenience store and provide more
scheme and good service to customer to penetrate the market. Initial it may be costlier, but it
will give long term benefit.
46

47. (7). Do advertisement and promotion influence your shopping decision?
Yes ( ) No ( )
Yes No
390 35
0
50
100
150
200
250
300
350
400
yes No
Data Collected-
Data collected from this questionnaire to know the effect of promotion
scheme on purchasing.
ANALYSIS—
Data collected for project from 425 responded in which 390 customer are like
promotion scheme which are91.76% and 35 are those people which say promotion scheme
doesn’t effect on purchasing.
Interpretation In my observation I found promotion scheme is must to sustain customer
attract customer & influence the purchasing.
47

48. (8). Are Promotion scheme easy to understand
Yes ( ) NO ( ) some time ( )
Yes no Some time
218 89 118
yes
no
Some time
Data Collected-
Data collected from this questionnaire to know display of promotion
scheme..
ANALYSIS—
Data collected for project from 425 responded in which 218 customer say yes
which are51.29% and 89 are those which say no which are 20.94 and 118 say some time.
Interpretation- Company should try making promotion scheme easy understandable,
promotion scheme should be in both in English & Hindi
48

49. (9). How likely are you to recommend Reliance Fresh to a friend or relative? Would you
say the chances are?
Excellent ( ) Good ( ) Fair ( ) Poor ( )
49

50. Excellent Good Fair Poor
29 198 190 8
0
50
100
150
200
Excellent Good Fair Poor
Data Collected-
Data collected from this questionnaire to know the satisfaction level of
customer.
ANALYSIS—
Data collected for project from 425 responded in which 29 customer say
excellent which are6.8% and19 8 say good which are 46.6%, 190 say fair which are 44.7% and
8 customer are those say poor
Interpretation
In my observation I found that only 46.6% customer are fully satisfied from the store
company should try satisfy the customer by providing better service and rectify their problem
immediately.
50

51. (10). Which form of advertisement do you think is most effective?
Print ( ) TV ( ) Radio ( ) telephone ( )
Print TV Radio Telephone
74 119 56 176
51

52. 0
20
40
60
80
100
120
140
160
180
print TV Radio Telephone
Data Collected-
Data collected from this questionnaire to know the better
advertisement mode of promotion.
ANALYSIS—
Data collected for project from 425 responded in which 119 customer say
TV which are28% and 74 say print which are 17.4%, 56 say Radio which are 13.17% and 176
customer are say telephone.
Interpretation -
According responded result company can choose telephone as best for advertisement and call
indusial for attracting the customer
52

53. (11). Did you get help from CSA when asked?
Yes ( ) No ( ) some time ( ) Never ( )
Yes NO Some time Never
192 95 124 14
53

54. 0
50
100
150
200
yes NO Some time Never
Data Collected-
Data collected from this questionnaire to know about CSA performance.
ANALYSIS—
Data collected for project from 425 responded in which 192 customer say
yes which are 45.1% and 95 say no which are 22.35%, 124 say some time which are 29.17%
and 14customer are say never which are 3.25%.
Interpretation-
According respondent customers are not fully satisfied company should recruit new skilled
employee for better performance.
54

55. 55

56. Finding
56

57. 1-Mazority of customers here is female.
2- Majority of customers are young.
3-Majority customers like to purchase all goods from Reliance fresh.
4- Customers like one stops shopping.
5-Local market till today is the first choice of customer.
6-Advertisement is the biggest way to attracting the customer.
7-Promotion scheme not so easy to under stand for customer.
8-Most of customer is not fully satisfied with store.
9-Tele phone is the best way for attracting the customer.
10 Shortages of skilled workers.
57

58. 58

59. Limitations
The project has some limitations because it is totally based on efforts of individuals.
Peoples may be careless and may not give correct answer to the questions, because of so many
reasons.
 It is totally based on personal efforts of individuals.
 Some of the consumers are unable to understand the questionnaire.
 Language is one of the worst problem, some of the consumers are unable to
understand English.
 Some consumers are not interested in filling questionnaire.
59

60. Suggestion
1- More promotion scheme should be used to penetrate the market.
2- Skilled employees should be higher because mostly customers are young.
3- Promotion scheme should in such way that customer can understand easily.
4- Service of store should be providing in such way which full the need of the
customer.
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61. Appendix
Reliance Fresh
Questionnaire
NAME-
GENDER-
AGE - Monthly income-
1- How offer do you shop
61

62. Daily ( ) week ( ) fortnightly ( ) once in month ( )
2- What do you mostly shop for at mentioned store
Vegetables ( ) Grocery ( ) cosmetic product ( )
3- Which store do you shop?
Reliance Fresh ( ) Big apple ( ) other ( ) Local market
4- Preference of shopping
Quality ( ) Brand ( ) Price ( ) one stop shop
5- Do advertisement and promotion influence your shopping decision
Yes ( ) No ( )
6- Are Promotion scheme easy to understand
Yes ( ) NO ( ) some time ( )
7- How likely are you to recommend Reliance Fresh to a friend or relative? Would
you say the chances are?
Excellent ( ) Good ( ) Fair ( ) Poor ( )
8- Are the Price of Reliance fresh is lower than the other competitor
Yes ( ) No ( ) Equal ( ) no idea ( )
9- Which form of advertisement do you think is most effective?
62

63. Print ( ) TV ( ) Radio ( )
10- Did you get help from CSA when asked?
Yes ( ) No ( ) some time ( ) Never ( )
References
Referred books-
63

64. Marketing Research – Paneerselvam
Research Methodology – C.R Kothari
Principles of Marketing – Philip Kotler
Referred site-
 www.ril.com
 www.google.com
 www.wickipedia.com
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