16. Reliance Fresh.doc

SUBMITTED BY: KSHITISH JENA / ROLL NO: 11MBAS03557

IN PARTIAL FULFILLMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATIONSubmitted By

KSHITISH JENA Roll No. : 11MBAS03557Guidance Of:Mr. Dibyendu Panda

Store Manager

Mahanadi Vihar, Cuttack

DATE - 10.05.2013Srikant Chandra PradhanIMST, Angul

DDCE, SAMBALPUR UNIVERSITYEXAMINERS CERTIFICATEThis summer training report is submitted by Kshitish Jena of MBA bearing the Roll No. 11MBAS03557 under DDCE, Sambalpur University and forwarded for evaluation.

Internal examiner

External examiner

CERTIFICATE FROM ORGANIZATION

This is to certify that the summer training report entitled, Customer Potential Analysis of Mahanadi Vihar, Cuttack is a Bonafied record of Interim report carried out by Kshitish Jena at IMST, ANGUL Bearing Roll No - 11MBAS03557 of has successfully completed his project for the partial fulfillment of MBA. He has worked sincerely in this duration and has completed the summer project successfully.

We wish him all the best in his career.

Dibyendu Panda

(Store Manager)CERTIFICATE FROM THE GUIDEThis is to certify that work entitled Customer Potential Analysis of Mahanadi Vihar, Cuttack is a piece of work done by Kshitish Jena under my guidance and supervision for the partial fulfillment of degree of MBA, IMST, Angul.

To the best of my knowledge and belief the thesis:

a. Embodies the work of the candidate himself.

b. Has duly been completed.

c. Fulfills the requirements of the rules and regulations relating to the summer internship of the institute.

d. Is up-to the standard both in respect to contents and language for being referred to the examiner.

Signature of the Faculty Guide

Srikant Chandra Pradhan

DECLARATION

I KSHITISH JENA student of IMST, Angul declare that the summer training project report entitled Customer Potential Analysis of Mahanadi Vihar, Cuttack. with special reference to Reliance Fresh is the produce of my sincere effort. This Summer Internship Project Report is submitted by me alone, at IMST, Angul, for the partial fulfillment of the course MBA, and has not been submitted to any other educational institutions for any other purpose.

Kshitish JenaACKNOWLEDGEMENTGratitude and thank giving are a part of formal protocol which is needed to be followed while preparing a project report. For this the first and foremost I am thankful to THE ALMIGHTY who gave me a great opportunity to do this project and making this project a success.

I take this opportunity to express my gratitude to Mr. Sarat Meher (HR-TRAINEE, Reliance Fresh) & Mr. Dibyendu Panda (Store Manager, Mahanadi Vihar, Cuttack) for giving his guidance, full support and time to complete this summer project. His words, experience and method of motivating the trainees always motivate me to do something better with professionalism. I also thank to him for not only allowing in this organization as summer trainee but also for various knowledge of retailing, which I gained from his experience and guidance. Whole heartily I express my deep gratitude to our honorable Director, IMST, Angul for his supportive nature. With a deep sense of gratitude and humble submission I would like to express my heartiest gratefulness to my Faculty Guide SRIKANT Chandra Pradhan, IMST, Angul for guiding me throughout my Summer Internship Project.

Kshitish Jena

CERTIFICATE OF APPROVAL

This is to certify that the summer training report entitled:

Customer Potential Analysis of Mahanadi Vihar, Cuttack

Submitted by Kshitish Jena (Roll No 11MBAS03557), Sambalpur University, Burla towards partial fulfillment of the requirements for the award of the degree of Master of Business Administration (MBA) is a bona fide record of the work carried out by him under the able guidance of Srikant Chandra Pradhan, Faculty, IMST, ANGUL.

(Approval of the center director)

Center Director

CONTENT

Certificate from the Organization

Certificate by the Guide

Declaration

Acknowledgement

Abbreviations Used

On The Job Training( OJT)

Objectives of OJT Week wise OJT

Introduction on Retail

Reliance Industries Ltd

Reliance Retail Ltd

Reliance Fresh

Reliance Fresh, Mahanadi Vihar, Cuttack

Hierarchical Structure of RF- Mahanadi Vihar

Objective of Study

Limitation of Study

Research Methodology

Analysis of Data

Findings Recommendations Conclusion

Appendix Bibliography and Webliography

ABBREVIATIONS USED

1. SM - Store Manager

2. ASM - Assistant Store Manager

3. CSA - Customer Service Associate

4. MSR - Membership Service Representative

5. CSD - Customer Service Desk

6. EAN - European Article Number

7. GRN - Goods Received Note

8. PO - Purchase Order

9. POS - Point Of Sales

10. ILO - Integrated Lights Out

11. EOD - End Of Day

12. MFT - Membership Finance Traveling

13. PI - Physical Inventory

14. SEL - Self Edge Label

15. AN - Article Number

16. UPC- Universal Product Code

17. JPC- Japanese Product Code

18. POG- Planogram

19. SAP- System Application Programming

20. DCC- Daily Count Correction

21. FDI- Foreign Direct Investment

22. RIL- Reliance Industries Ltd

23. RRL- Reliance Retail Ltd.

ON THE JOB TRAINING

(OJT)OBJECTIVES

On the job training (OJT) is the practical exposure of the real industry and helps an individual in acquiring the skills for the career road ahead of him. The objectives of my OJT are as following.

First and foremost objective is to generate sales for the store as much as possible.

To gain complete knowledge about the different sections of the stores and how they operate.

To build relationships with every customers and endeavor to make them loyal customers of Reliance Fresh- Mahanadi Vihar.

To maintain good relationship with the store employees.

To find out ways to enhance customer footfall at Reliance Fresh Mahanadi Vihar.

To motivate employees to achieve store target.

To come up with innovative ideas for sales promotion of Reliance Fresh Mahanadi Vihar.

To make customer aware of the benefits of the product and convince them to buy the product.

1st WeekApril; 10th was the day where I started my summer internship programe.that day I had a nice feeling because we are for the first time exposed to the corporate world. We had to report to the head office at sharp 10:00 am at FORTUNE TOWERS 1st floor where the reliance office is situated. After reaching there we all had to wait for 2 hrs because the man we are supposed to meet was not there. So instead of meeting him we all meet Mr. Subir Verma (HR TRAINEE). He has a dynamic personality in him which was clearly evident from his introduction and the way he interacted with us. . Then he with another HR MR. Sarat meher had a brief interaction of what exactly Reliance industry is all about. Then we all were assigned for respective There are predominantly 5 6 work heads assigned to do a project on the new format named H EALTH & WELLNESS , some were assigned to do a project on dairy, some were into operations , Some were assigned to foresee the work conducted in the marketing division. They have put me in Operation in Mahanadi Vihar store of Cuttack. Mr. Sarat Meher took training session where we came across many retail term, how IT used in retail. He spoke about Reliance Retail & Reliance Fresh. On 12th I went to the store. There I have assigned to take customers feed back & make a survey to find out what are the products customer didnt get in the store.2nd WeekDuring the 2nd week of our SIP I was told to do the sales work as assist customer .For this purpose Mr. Bikash Lenka Assistant Store Manager Reliance Fresh, Mahanadi Vihar guided me personally and taught me various aspect of sales, along with sales I was also learning Store Operations Reliance Fresh. I learnt how the stock is transferred from DC to the store and how the Stock Transfer Note is checked in the store on that basis a Goods Received Note is prepared and then it is entered into SAP.

3rd WEEKWeek -3 was very much informative for me as I learned lots of things in this week. In this week a very important aspect of organized retail was taught to us which is the backbone of visual merchandise i.e. PLANOGRAM. A planogram is the systematic way of arranging the different product category in the bays of the store, on the basis of planogram the product are arranged in the store, for every category there is a planogram and on that basis the stock is also maintained in the store basically the stock of planogram consist of 6 days. In the planogram there are these things,

Category: - The Category is the basic unit of analysis of making merchandising decisions. In general category is the assortment of items that the customer sees as reasonable substitutes for each other. In Reliance Fresh there different category such as Staples, Processed Food, Non- Food, Dairy etc.

Bay: - Bay consists of different fixtures which are used in the store to keep the products. The different kinds of fixtures which are used in Reliance Fresh are

1 Wall Rack

2 Floor Rack

3 Hyper

4 Promo Bin

5 Top Pallets

6 Peg Wall

Article No. : - Article Number is the internal numbering code of Reliance retail which is used to recognize the product on the basis of number as the software can easily recognize the article no and it remains constant whereas EAN always varies due to offer for eg. If the a product is having a offer and there is both old and new stock is available in the store then on the basis of Article no EAN is changed on that product in which offer has been promoted.

Bar Code (EAN):- The machine-readable representation of the UPC Bar codes are read by a scanner that passes over the code and registers the UPC. The width of each black line and the subsequent white space between each line coincides with the numbers of the UPC.

UPC (pronounced as separate letters) Short for Universal Product Code, a unique 12-digit number assigned to retail merchandise that identifies both the product and the vendor that sells the product. The UPC on a product typically appears adjacent to its Bar code, the machine-readable representation of the UPC. The first six digits of the UPC are the vendors unique identification number. All of the products that one vendor sells will have the same first six digits in their system. The next five digits are the products unique reference number that identifies the product within any one vendors line of products. The last number is called the check digit that is used to verify that the UPC for that specific product is correct.

There are now five versions of UPC (A E) and two versions of EAN (European Article numbers; version 8 - 13). The Japanese Article Numbering (JAN) code has a single version identical to one of the EAN versions with the flag characters set to ``49''. UPC and EAN symbols are fixed in length, can only encode numbers, and are continuous symbolize using four element widths.

SAMPLES OF BAR CODES

Stacking:- Stacking is the arrangement of product one upon another so that the same merchandise could be arranged according to demand.

Facing:- Facing is the face of the merchandise which is to be looked by the customer while shopping on the basis of the product size and amount facing is decided.

Depth:- Depth is the amount of a particular merchandise is to be kept in the shelf on the basis of the size of the merchandise depth is decided.

MBO:- MBQ is the total number of a particular merchandise which is to be kept on the shelf.

SAMPLE OF PLANOGRAMCATEGORYBAY NOSKU NAME

ARTICLE NO.EAN CODE( European Article NumberSHELFFACINGDEPTHSTACKINGMBQ

Processed Food2Parle Glucose Biscuit 231 Gm pp4900067338901719701009518216

4th Week:- In this week I learned procedure before opening a new store, as the biggest Reliance Fresh store approx of 10000 sq feet was opened in this week at KANIKA SQUARE CUTTACK , I learned the different works which is done before opening a store . Again this week was also very much informative regarding promotional aspect of Reliance Fresh as during the last three days MAHA BACHAT MELA attracted a huge traffic to the store and the best thing what I learned in this week that how the offers are generated. 5th Week:- This week was one of the best week during the OJT as his week was fully devoted to promotion as this week Reliance Fresh arranged RAINBOW FEST i.e. KIDS CARNIVAL to increase the footfall of the stores both in Bhubaneswar and Cuttack . Various kinds of programs were arranged for kids which included CRAZZY COLORS , QUIZ CRUSH, MAST QALANDAR FANCY DRESS, BABYS DAY OUT, CATWALK ,DANCE COMPETITION and many other such programs , in Reliance Fresh Mahanadi Vihar Crazzy colors, Quiz crush, Mast Qalandar & Nachle Mania were conducted due to the avalability of space. The main objective was to increase the footfall which will ultimately increase the sales of the store as per speculation Carnival resulted a huge success and a very good response from the customer was found. Ultimately this fest was very good learning for me as during this week I interacted to lots of people which helped me to understand the buying behavior of the people , finally with the guidelines of my Store Manager I successfully conducted the KIDS CARNIVAL in the store .

A CRAZZY COLOR MOMENT

A VIEW OF MAST QALANDAR FASHION SHOWAnother important thing which I learnt this week was the MFT operations with the help of MSR on CSD I learnt all the work which are been performed at Customer Service Desk. Some of works which I learnt here are as following

Enrollment for Reliance One Membership Card

Electronic Recharge of RIM & AIRTEL

Feed Back Form

Point Redemption for Discount

Telecalling

Offers Announcement

6th Week :- This week was devoted to understand the each and every activity of Store Operation which is performed on daily, weekly & monthly basis respectively. Mr Bikash Lenka Assistant Store Manager Reliance Fresh Lewis Road explained each and every activity thoroughly.

Daily Activity which are performed in the store are

1. Receiving Milk

2. Morning Briefing

3. Job Allocation

4. Float at POS

5. Telecalling

6. DCC

7. Energy Portal(morning)

8. SEL Portal

9. Promo Check

10. Store Performance (morning)

11. Bread Intending

12. DC GRN

13. DSD GRN

14. Date Code Check

15. Update Reports

16. Store Performance ( afternoon)

17. SOP Audit Checklist

18. Customer Voice Entry

19. Quality Audit

20. Dump

21. Markdown( food)

22. GRN Deposit

23. Energy Portal ( evening)

24. EOD

25. Footfall Report

Weekly Activity

1. Price Benchmarking

2. Leafleting

3. Imprest Submission

4. Mark Down(Non Food)

Monthly Activity

1. Physical Inventory

2. Update Registers

3. Consumables Indenting

4. Consumables Booking7th Week :- This week I learnt about the SAP as all the work which is performed in the Reliance Fresh is done through SAP. SAP is actually a software which is specially designed for Retailing purpose, basically there are 2 kinds of software used in Retail Sector to handle all the operational work and they are called

1. Oracle

2. SAP

But the most widely used software is SAP and with the help of SAP almost each and every work becomes systematic and easier to do because we dont have to maintain each and every manual files if we are using SAP as once the data is entered in SAP then it is automatically received by Head Office and the most important thing is that the chance of error is reduced when we use SAP. In Reliance Fresh we call it as RETALIX STORELINE..

Some of the important works which are done through SAP are as following

1. GRN

2. PO

3. PI

4. Commercial Activity

5. EOD

6. Store Performance

7. Store to Store Transfer

These are the some major activity which is performed through SAP else each and every activity has to be entered in the SAP so that the work goes smoothly.

8th Week :- This was the final week of Summer Internship and this week I was busy in collecting the data so that I could do justice toward my findings I use to collect the data by asking the question to the customers so that I could get the response toward my work within this week I interviewed 100 people and got 100 response . As well as I also went to various hotels for tie-up with Reliance Fresh and again a new store was opened in Cantonment road, Cuttack so we all were there for last 4 days of our SIP.

INTRODUCTION TO RETAILStart of Retail Trade

Early Trade

When man started to cultivate and harvest the land, he would occasionally find himself with a surplus of goods. Once the needs of his family and local community were met, he would attempt to trade his goods for different goods produced elsewhere.Thus markets were formed. These early efforts to swap goods developed into more formal gatherings. When a producer who had a surplus could not find another producer with suitable products to swap, he may have allowed others to owe him goods. Thus early credit terms would have been developed. This would have led to symbolic representations of such debts in the form of valuable items (such as gemstones or beads), and eventually money.

Early Markets

Over time, producers would have seen value in deliberately over-producing in order to profit from selling these goods. Merchants would also have begun to appear. They would travel from village to village, purchasing these goods and selling them for a profit. Over time, both producers and merchants, would regularly take their goods to one selling place in the centre of the community. Thus, regular markets appeared.The First ShopsEventually, markets would become permanent fixtures i.e. shops. These shops along with the logistics required to get the goods to them were, the start of the Retail Trade.

Origins of Retail Chains

It is likely that, as markets became more permanent fixtures they evolved into shops. Although advantageous in many respects, this removed the mobility that a peddler or traveling merchant may still have enjoyed. For some shopkeepers, it made sense to obtain extra stock and open up another shop, most probably operated by another family member. This would recover business from peddlers, create new business and the greater volume would allow the shopkeeper to strike a better deal with suppliers. Thus the Retail Chain would have started. It is thought that this process was started in China over 2200 years ago with a chain of shops owned by a trader called Lo Kass. Excavations reveal that shops in ancient Rome were, in many respects, much like small shops are today, so it is most likely that retailer chains existed then. From Family Business to formal structure although retail chains would have been mostly run by families, as some chains grew, they would have needed to employ people from outside of their family. This was a limiting factor as there would have been a limit to the amount of trusted non family members available to help run the chain. Another, even more definite limiting factor was the distance the furthest shop would have been from the original shop. The greater the distance, the more time and effort would have been needed to effectively manage outpost shops and to service them with goods. There was, therefore, a natural barrier to expansion. That was the case until transport and communications became faster and more reliable. When this happened towards the end of the 19th century, chains became much bigger and more widespread. Many of these businesses became more structured and formalized, leading to the retail chains that we see today.

How Retail Developed

Peddlers and ProducersThe Retail Trade is rooted in two groups, the peddlers and producers. Peddlers tended to be opportunistic in their choice of stock and customer. They would purchase any goods that they thought they could sell for a profit. Producers were interested in selling goods that they had produced.

General Store

This division continues to this day with some shops specializing in specific areas, reflecting their origins as outlets for producers (such as Pacific Concord of Hong Kong), and others providing a broad mix, known as General Store (such as Caseys in the Midwest of the U.S.A.).

Although specialist shops are still with us, over time, the general store has increasingly taken on specialist products. Customers have found this to be more convenient than having to visit many shops thus the term Convenience Store has also been applied to these shops. As the popularity of general stores has grown, so has their size. This combined with the advent of Self-Service has lead to the Supermarket, or Superstore.

Self-Service Stores

Background

Up until the introduction of self-service stores, customers would simply ask the shopkeeper for their goods. The shopkeeper would price them (weighing them if necessary), pack them in a bag or other container (often supplied by the customer), tot up the bill and receive payment. There was a personal one-to-one relationship between customer and shopkeeper. The First Self-Service Store. This all changed in 1915 when Albert Gerrard opened the Groceteria in Los Angeles, the first documented self-service store. This was soon followed a year later by the Piggly Wiggly self-service store, founded by Clarence Saunders in Tennessee in the U.S.

Efficiency

These entrepreneurs noticed that their staff had to spend a great deal of time taking grocery orders from customers. The groceries were stacked on shelves allowing customers to walk around and browse, collecting their shopping in a basket that was supplied. The shopkeeper would only need to tot up the final bill at the end of the process and transfer the goods from the basket to the customer and receive payment.

GrowthThis new type of shopping was more efficient and many customers preferred it. Although personal service stores remain to this day, this new concept started a rapid growth of self-service stores in the United States. Other countries were slow to take up the idea, but there has been a steady rise in the global amount of self-service stores ever since. OVERVIEW OF INDIAN RETAIL SECTOR

Size of Indian Retail

India is one of the 10th largest retail markets in the world. Organized retail constitutes only 4.6% of total retail sales. However organized retail has been growing at over 40% p.a. in last two years.Structure of Indian Retail Indian retail sector is highly fragmented mostly owner runned mom and pop outlets. Retail chain such as Pantaloons, Trent and RPG retail has growing rapidly while Reliance, Aditya Birla Group is pumping huge money in retail sector. Dairy Farm, Metro, Shoprite and Mark& Spencer are some international retailers which are present in India. Policy

100% FDI is allowed in cash and carry format. Franchisee agreement are also permitted in Indian retail sector 51% FDI is allowed in single brand retailing. Government is examining further liberalization of FDI in retail trade. Top players of India

PlayersRevenues for2006-07in US$ millionsRetail Space as on May 2007 (Sq. ft.)Format

Future Group (Pantaloon Retail)7046,630,000F&G, Specialty

Raheja Group (Shoppers Stop)2201,590,000F&G, Specialty

Tata Group (Trent, Infiniti Retail)111880,000Specialty Retail, Electronics, Hyper Markets

RPG Retail146810,000F&G, Specialty

Aditya Birla61890,000F&G

RELIANCE INDUSTRIES LTDReliance Industries Limited is a Fortune Global 500 company and is the largest private sector company in India, founded by Late Dhirubhai H. Ambani (1932-2002).It is Indias largest private sector enterprise, with businesses in the energy and materials value chain. Groups annual revenues are in excess of US$ 27 billion. The company started with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration in polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production to be fully integrated along the materials and energy value chain. The Groups 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. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and Reliance Industrial Infrastructure Limited.

Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it.

-Late Dhirubhai Ambani

Reliance Industries Limited (RIL) is Indias largest private sector company on all major financial parameters with turnover of Rs1,18,354 crore (US$ 27.23 billion), cash profit of Rs17,678 crore (US$ 4.07 billion), net profit of Rs11,943 crore (US$ 2.75 billion) and net worth of Rs63, 967 crore (US$ 14.72 billion) as of March 31, 2007.RILis the first and only private sector company from India to feature in the Fortune Global 500 list of Worlds Largest Corporations and ranks amongst the worlds Top 200 companies in

terms of profits. RIL is amongst the 25 fastest climbers ranked by Fortune. RIL also features in the Forbes Global list of worlds 400 best big companies and in FT Global 500 list of worlds largest companies. With long-term experience in modern supply chains and provisioning, Hong Kong firms in the food and related products sectors the likes of Heng Tai Consumables and ABS Procurement Co are sure to be viewing the changing Indian retail scene with more than passing curiosity. Others, like ACM China, the greenhouse specialist, are already getting involved.

RELIANCE RETAIL LTDReliance Retail Limited, a 100% subsidiary of Reliance Industries Limited started rolling its stores in November last year and today operates more than 500 stores in over 19 cities spanning 2.5 million Sq ft. The formats that RRL operates in are Reliance Fresh, Reliance Digital for consumer durables and information technology, Reliance Mart, a Hyper Market, Reliance Trendz the apparel store, Reliance Wellness offering wellness products, Reliance I store- the apple store, Reliance Footprint a footwear store , Reliance Jewels a jewelry store Reliance Time-Outbooks, music and gifts store and Reliance Super- a Minimart Format.

Reliance Retail has announced plans to set up one store for every 3,000 families within a radius of 2 km across all locations by 2011. The company is competing directly with the large number of traditional local provision stores. Reliance Retail is either going to set up new stores in the identified areas or take over existing stores. The company has already done that in Mumbai and other cities. Of the four million sq ft of retail space to be created under the Reliance Fresh brand (for groceries), one million will be through acquisitions. The retailer is also moving into laundry, personal care and apparel product lines, in which it plans to launch private labels.

Reliance is planning to roll out its specialty format stores this year, beginning with consumer durables, for which it has struck sourcing deals with companies in Hong Kong, the Chinese mainland and with Videocon in India. To strengthen its links with farmers, the company is setting up integrated agri-retail business centres, which include three processing and distribution centres, 51 retail outlets for farmers and 75 rural business hubs, all with an investment of US$445 million. Reliance Retail would build a business that would focus on competitive offerings to Indian consumers across several verticals: Integrated food and grocery, items of daily

household consumption, apparels and footwear, electronic goods, lifestyle products and services, home essentials and improvements, farm implements and inputs, distribution of energy products and services, distribution of travel and financial services, entertainment and leisure experiences, health and well-being products and services and educational products and services. It would develop partnerships to bring the best of luxury brands from all over the world to India and it would also develop linkages with opportunities in agriculture and food processing. The company would have a pan-India footprint covering 1,500 cities and towns and embracing all strata of the society.

RELIANCE FRESH LTD Reliance Fresh Supermarkets

Type-Supermarket

Founded-30 October 2006

Headquarters-Mumbai, India

Keypeople-Mr. Mukesh Ambani, CEO

Industry-Retail

Slogan-Growth Through Value Creation

Website-www.ril.co

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 at Hyderabad on 3 November2006. The Reliance Fresh supermarket chain is RILs Rs 25,000 crore venture and it plans to add more stores across different region by year 2011. 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. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. 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. Also 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.

Products The stores, product selection and the prices have been designed keeping the average Indian housewife in mind.

The super marts 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.

Supply chain in Reliance Fresh Reliance hopes to utilize its investment in its supply chain and will be starting Ranger Farms, a wholesale format store to cater to fresh fruits and vegetables to small vendors and stores.

Reliance is also utilizing its supply chain to source fruits and vegetables from specific crop belts in the country.

For example- The apples come from Himachal Pradesh, onions come from Karnataka and green leaves come from close by districts of Andhra Pradesh.

IT in Reliance Fresh IT major IBM has tied up with Reliance fresh to provide required IT solution.

IT will provide system for Reliance Retail stores, processing, distribution & collection center, primary and secondary transportation along with IT system for national and state head quarters.

RELIANCE FRESH, MAHANADI VIHARCUTTACK

Reliance Fresh Mahanadi Vihar was the first store which was opened in Cuttack, which is almost 3347 sq foot. As being the one of the smallest Reliance Fresh outlet but the sales per sq foot is good in the Orissa Zone. It consists of 2500 SKU of following categories

1. Staples

2. Processed Food

3. Hardline

4. Homecare

5. Baby care

6. Beverages & Confectionaries

7. Dairy

8. Frozen

9. Bakery

10. Non-food

HIERARCHIAL STRUCTURE OF RELIANCE FRESH

INTRODUCTION

The study of customer potential helps the organization to improve their marketing strategies by understanding followings:-

The psychology of how customer thinks, feel & select between different alternatives.

The psychology of how customer is influenced by his or her environment (culture, family, signboard & media etc.)

The behaviors of customer while shopping.

Customer information processing abilities influence decision and marketing out come.

OBJECTIVETo know the customer potential in Mahanadi Vihar, Cuttack towards Reliance Fresh.

To demonstrate the important knowledge of customer behaviors for the success of retailing.

To know the various levels of customer decision making process.

LIMITATION OF STUDY

1. People are still unaware about organized retail.

2. Customer still prefers local kirana stores.

3. Response of customers while collecting data was very cool.RESEARCH METHODOLOGYThis section of the project emphasizes on the procedure used to accomplish the project. To accomplish the project some data have been collected. The data collected through.

TOPIC OF THE RESEARCH:-

Our research topic is A study on customer potential for Reliance Fresh, Mahanadi Vihar, Cuttack

OBJECTIVE OF THE RESEARCH:-

Our main objective of the study is to know the buying pattern of people of Mahanadi Vihar, Cuttack.

METHODOLOGY:- .I took personnel interview of the house hold through questionnaire. The sample size was 100, collected by random sampling.

. RESEARCH DESIGN: -

For this I prepared a structured undisguised Questionnaire, so that I could know the correct data which should not completely biased towards Reliance Fresh.

RESEARCH AREA:-

My research area was Mahanadi Vihar of Cuttack city as my topic was to know the customer potential of Mahanadi Vihar, Cuttack.

DATA COLLECTION:- PRIMARY DATA: - It is the 100 samples. The sample contains 15 question.

SAMPLING:-

Sampling was random because my research was descriptive in nature as my research will enhance the performance of Reliance Fresh not to solve any specific problem.

SAMPLING: - 100.

DATA COLLECTION:- PRIMARY DATA: - It is the 100 samples. The sample contains 15 questions.

ANALYSISDEMOGRAPHICS:- SEX

SexNosPercentage

Male3939%

Female61 61%

According to my survey out of 100 respondent, there are 61% female & 39% male respondent.

ANNUAL INCOME:-

Annual IncomeNo. of respondentPercentage

200003621%

It is very clear from the above table & graph that there are 36% in Mahanadi Vihar, Cuttack whose income is above 20000, 53% whose income is in between 10000-20000 and 11% whose income is less than 10000.

OCCUPATION:-OccupationNo. of respondentPercentage

Student1212%

Salaried Person3232%

Business Person27 27%

Professional0404%

Home Maker2525%

In Mahanadi Vihar, Cuttack most people are depending on Govt. /Private Jobs & their own business. So according to my survey 12% are students, 32% are salaried persons, 27% are business man, 04% are professional & 25% are Home Maker.

Q1) Which retail store do you prefer for shopping?

Name of the storeNo. of respondentPercentage

Food Bazaar2727%

Reliance Fresh5151%

Vishal Mega Mart0808%

Salasar Mega Store1414%

As per my survey 27% respondent prefer Food Bazaar for the brand name, 51% respondent prefer Reliance Fresh for convenience, 08% prefers Vishal mega mart & 14% prefers Salasar Mega store.

Q2) what are the aspects you look for purchasing product from a retail store?

AspectsNo. of respondentsPercentage

Ambience022%

Product verities2121%

Customer service3131%

Nearness to home2222%

Quality of products1717%

Verities of brands0707%

From the above table & graph it is quite evident that more people are looking for Customer service. The above graph shows 02% are looking for ambience, 21% are looking for product category, 31% are interested for service and 22% are looking for nearness, 17% are giving importance to quality of products & 7% are looking for various brands available.

Q3) How much amount you spent monthly for shopping daily use product & groceries?

AmountNo. of respondentPercentage

Less than 5001919%

500-15004949%

More than15003232%

As we know Mahanadi Vihar is a posh area in Cuttack, so maximum people spent more than Rs.1000. The above graph shows than majority people i.e. 49% are spending in between Rs.500-1500, 32% are spending more than Rs.1500 and 19% are spending less than Rs. 500.

Q4) where do you buy your groceries & daily use product?

Name of the storeNo. of respondentPercentage

Local Kirana Shop5353%

Food Bazaar0000%

Reliance Fresh3636%

Any other Market1010%

According to my survey 53% people prefer local kirana shop for purchasing their grocery item, 36% prefer Reliance Fresh, 10% are going to other market and no one is going to Food Bazaar for grocery item.

Q5) Have you visit Reliance Fresh store?

AnswerNo.of respondentPercentage

Yes9797%

No0303%

As Mahanadi Vihar is a residential area most of the people have visited the Reliance Fresh store. My survey result shows 97% people have visited the store. Only 3% are yet to open their account.

Q6) How frequently do you visit the Reliance Fresh store?

No. of timesNo. of respondentPercentage

Once in a month0909%

Twice in a month2828%

Once in a week3030%

More frequently3636%

As per my survey 28% customers visit the store 2 times in a month. 30% customers visit the store once in a week, 36% people frequently visit the store and only 06% visit once in a month.

Q8) How Reliance Fresh store is different from other stores?

Basis of differenceNo. of respondentPercentage

Reasonable price0303%

Wider product range1818%

Customer Services5555%

Better quality2424%

The above table & graph says most people said service is the main basis which differentiate Reliance Fresh from other stores. 55% people agreed upon this. 18% said wider product range, 24% said better quality and 3% said reasonable price

Q9) How would you rate the quality of our products?

RatingNo. of respondentPercentage

Best3131%

Good4848%

Average1818%

Poor0303%

My survey shows most customers are happy with quality of product Reliance Fresh dealt. 48% of customer rate the quality as good, while 31% rated best, 18% said average and

only 3% rated the quality as poor.

Q10) Are you a R-one card holder?

AnswerNo. of respondentPercentage

Yes9898%

No0202%

As we know Mahanadi Vihar is a residential area so most customer visit the Reliance Fresh regularly, so 98% of the customer have R-One card with them, while only 2% dont have R-One card.

Q11) Are you regularly using R-One card?


Yes4242%

No5858%

According to my survey despite being a regular visitor of the store most customers are not using R-One card. The main reason is they forget to take the card while they go for shopping. 58% customer said they are using the card regularly and 42% said they are not using the card regularly.

Q12) Are you satisfied with the benefits of R-one card?


Yes2626%

No7474%

My survey shows most customers are not happy with the benefits provided by Reliance Fresh through R-One card. 74% of customers said they are not satisfied only 26% customers said they are happy with the benefits

Q13) Are you a plastic card holder?


Yes3737%

No6363%

According to my survey most customers doesnt possess plastic card. Only 37% customer said they have plastic card with them. While 63% customers didnt get plastic card.

Q14) What other additional products do you want Reliance Fresh should keep in its store?

New product categoryNo. of respondentPercentage

Fresh Vegetables4242%

Fruits2828%

Apparels1111%

Electronic items1919%

Most of the customers want Fresh vegetables & fruits Reliance Fresh should keep. 42% said they want vegetables, 28% customer said they want fruits, 11% voted to apparels and 19% said they want electronic items to be kept in the store.

FINDINGS1. Reliance Fresh store has opened in Mahanadi Vihar since December 2007, so all the people of Mahanadi Vihar are aware of Reliance Fresh.

2. As this is a residential area & Reliance Fresh is a supermarket store, so most of its customers are female. So in my survey 61% are female respondent and 39% are male respondent.

3. It is very clear from the above table & graph that there are 53% customers whose income is in between Rs.10, 000-20,000. 36% customers whose income is more than Rs. 20,000 and 11% customers whose income is less than Rs. 10,000. So from the above data we can conclude that Mahanadi vihar is posh area of Cuttack. Because most of the customers are earning more than Rs. 10,000.

4. In Mahanadi Vihar most people are salaried person & depend on business. As my survey shows 32% customers are salaried person, 27% customers has their own business, while 25% customers are house wife/home maker and 12% respondent are student. 32% salaried person also includes female.

5. As the store is situated in Mahanadi Vihar, so most people prefers the Reliance Fresh for shopping. 51% said they like Reliance Fresh, while 27% vote goes to Food Bazaar, Salasar mega store got 14% vote and only 8% people like Vishal Mega Mart.

6. As we already know that it is posh area, so here 49% customers spent Rs.500-Rs.1500 monthly for daily use products & groceries, while 32% customers spent more than Rs. 1500 and only 19% customers spent less than Rs. 500.

7. While choosing a retail store for shopping most customers are looking for service provided by the store. 32% customer said they look for service, while 22% customer said they prefer nearer store, 21% people said they look the product verities available in the store, 17% said they are more concern about the quality of the product of the store, while 7% people are brand conscious and only 2% people said they look for ambience. So we can conclude service is the key factor for any retail store.

8. My survey shows despite the boom of organized retail industry, people are still go to local kirana shop. As 53% customer said they prefer local kirana shop for purchasing their groceries & daily use product. 36% in Mahanadi Vihar prefers Reliance Fresh, 10% prefer other markets situated near by the area and no one prefer Food Bazaar for purchasing groceries & daily use products.

9. As I have already said Reliance Fresh is in the Mahanadi Vihar, which is a residential area so most of the resident has visited the store. 97% people have visited the store, while only 3% people are still yet to open their account.

10. As Reliance Fresh is a supermarket thats why most of the customer visit the store frequently. As per my survey 36% customer said they visited the store more frequently, 30% said they visited at least once in a week, 28% customer visited twice in a month and only 6% visited once in a month.

11. Most of the people are happy with the behaviour & helpfulness of the staff of Reliance Fresh, Mahanadi Vihar store. Because 55% customer said customer service is the main factor which differentiates Reliance Fresh with other retail store, while 24% said quality of the products is the differential factor. 18% said wider product range is the factor. While only 3% people voted to reasonable price. That shows most customers are not happy with the pricing of Reliance Fresh.

12. My survey shows most customers are happy with the quality of product Reliance Fresh dealt. Highest no. of customer i.e. 48% rated the quality as good, 31% rated as best, 18% said average and only 3% said poor.

13. R-one card is a card which is given to the customers to gain loyalty points & avail discounts from the store. As most of the people visit the store thats why almost every customer posses R-One card. According to my survey 98% customers have R-One card with them. And 2% doesnt have the card.

14. As, when the R-One card first issued to the customers, was a paper card which is temporary so most of the customers forget to take the card while they go for shopping to Reliance Fresh. Thats why 58% said they dont use the card regularly. While 42% said they use the card regularly.

15. Through R-One card if a customer shops for Rs. 100 then he/she will get 1 point. The value of 1 point is 0.70paise. in this way when he has 25 points with his/her card then he/she can redeem the point by taking discount of Rs. 17.50 ( 25 X 0.70). so to get discount of Rs. 17.50 he/she has purchase worth Rs. 2500. Thats why most of the customers are not happy with the benefits of R-One card. 74% customer said they are not happy with the benefits of R-One card. 26% said yes they are happy.

16. The temporary R-One card which is a paper card issued to the customers when they first enroll, is being converted to a plastic card later. It means if that customer become a loyal customer to the store then a plastic card is given to him, after that he/she is suppose to use that plastic card instead of that temporary card. So when a customer possess plastic card with him then he/she is assumed as a loyal customer of the store. My survey shows only 37% customers are plastic card holder and 63% customers said they dont have plastic card with him. It is because most customers are not regularly using their R-One card.

17. As we know due to local vendors dispute Reliance Fresh doesnt keep fresh vegetables & fruits in its store in Orissa. But 42% customer said they want fresh vegetables to be kept in the store, while 28% customer said they want fruits. 19% said electronic items should be their in a store like Reliance Fresh and 11% said they want apparels. In this 11% most of them are young ladies.

RECOMMENDATION1. During my training I found most of the product upon which offer is going on is not available in the store & most customers have to return back with empty hands. So Reliance Fresh needs to keep as much as more products upon which offer is going on.

2. Some of the CSA (Customer Service Associates) doesnt know about the current offers. So, at that time they are not able to tell about the offers to the customers. So they need to up-date themselves regarding current offers.

3. Many times offers shown in the signage doesnt match with the POS (Point Of Sale). Thats why many customers get irritated with this kind of mis-match. So Reliance Fresh needs to up-date their POS computer regarding offers.

4. As the store is located in a residential area, so during afternoon time, particularly from 11.30 A.M.-4.30 P.M. footfall is absolutely zero. So they need give offer particularly for afternoon time. As it is a residential area so most ladies customer those who are house wife might come for shopping to avail the offer. The most important thing is they need to communicate or promote these offer to the customers otherwise the offer is of no use.

5. Reliance Fresh offers gift set to its customers every week, those who shop for Rs. 899, Rs. 999 etc. During my SIP many customer made complain that they have already taken these gift set, so again these set will be wastage for them. So instead of that gift set they want to get discount of that gift sets amount. So Reliance Fresh can give discount or they need to change the gift.

6. Reliance Fresh need to target customers from other than Mahanadi Vihar. During my survey I found CRRI is a potential area for the store. But unfortunately only 1 customer comes to the store. Most people said they have not seen the Mahanadi Vihar store. So they need to put board or hoardings in the road showing the exact location.

7. They can go for news paper advertisement showing what is the weekend special offer, what are the other individual offers. Because customer need to aware of the offers. They can choose local news paper like Dharitri, Sambada, Samaja etc. They can also go for tie-ups with FM Radio. Because most of the people prefers FM-Radio as an entertainment. So it will also help the company to promote themselves through FM.

8. In Reliance Fresh many customers come to purchase only one or two products. During evening hours they have to wait for a long time to make the bill, which irritates them a lot. Even I face the same problem. So they can make one POS only for less than 7 items or 10 items like this.

9. In Mahanadi Vihar store I found that many schools are located around the store. So many children are coming to the store & they are looking for sports item. But unfortunately these items are not kept in the store. So in Mahanadi Vihar store they should try to keep sports items like- ball, bat, badminton, chess board, tennis racket etc.

10. Some of the products which are fast moving like- curd, Kurkure, Uncle Chips, Bingo are not available as per the customers requirement. So category manager needs to check all this things. The important thing is most of the chips, which has been stalked for selling are expired. So they need to check all this things.

11. The DC vehicle which comes to the store in a very odd time i.e. at 10.30 P.M., during evening time, need to come to the store during afternoon time, because during that time footfall is less & employee seat idle. So this is the best time to utilize employees.

12. The security system needs to be tighter. Because the security system which prevails in the store is not enough to check both customer & employee shoplifting. One security guard should be there at the back office door. To prevent shoplifting the store can fit convex mirror at the roof of the store.

13. During my training many customer asked me why Reliance Fresh doesnt mention the exact VAT amount in its bill. During my SIP I went to various hotels for tie-up with Reliance Fresh. They have asked the same thing. So they should mention clearly regarding VAT in their bill.

14. Company should focus on employee satisfaction. Because most of the employees are not satisfied with their job. Company should provide a special discount card for its employee if they purchase anything from the store. Tea or coffee should provide to employees in the store.

15. In non-food section like hair oil, face wash etc. less brands are available in the store. Customers are not getting the brands they want. So category manager should take action on this. They need to keep more brands on this type of products.

16. In the chocolate section manual billing should be done to check the shoplifting. That means who ever will purchase chocolate need to pay the amount there itself. No need to bill it in the POS.

CONCLUSIONMy SIP has given me a live experience in learning like how to run & maintain a store, how IT helps to retail organization, how to deal with the customer, how to satisfy customer, how to maintain relation with the existing customers. I have learnt the convincing & persuasive skills during my SIP.

This project work gave knowledge not only about retail business but also the consumer behaviour. It also gave lesson about how culture of the location affects the organization working style.

Different trainings are necessary for all kinds of jobs. A manager needs to know the entire work take place in the organization to motivate employees. The survey work gave me a chance to consult directly customers & know their expectation from the company. Ive learnt about space management, basic need of the consumer, employee motivation, stalking, dealing with customer and many more grass root level knowledge.

I knew the difficulties faced by a manager & learnt how come up with more luster. Ive faced an organization practically & Im very much happy to apply my MBA knowledge during SIP. APPENDIX

QUESTIONNAIRES Declaration: It is purely for academic purposes and the data given will not be passed on to anyone.

We request you to kindly fill up the form..

PERSONAL INFORMATION:

NAME:

AGE:

a) 18-25 b) 26- 40 c) 41- 60 d) 60-or aboveSEX: Male Female

MARITAL STATUS: Married UnmarriedOCCUPATION: a) Student b) salaried person c) business d) professional

e) Home maker f) Retired person

MONTHLY INCOME: a) bellow Rs10000 b) Rs10000 Rs 20000 c) above Rs 20000ADDRESS:PHONE:------------------------------------------------------------------------------------------------------------

Q1) which retail store do prefer for shopping?a) Food Bazaar b) Reliance Fresh c) Vishal mega mart d) Salasar mega store

Q2) what are the aspects you look while purchasing product from a retail store?

a) ambience b) product varieties c) customer services d) nearness to your residence e) Product Quality f) different brands for any item

Q3) How much amount you spent monthly for shopping daily use product & groceries?

a) Less than 500 b) 500-1500 c) more than 1500

Q4) where do you purchase your groceries & daily use product?

a) Local kirana shop b) Food Bazaar c) Reliance Fresh d) Any other market

Q5) Have you visit Reliance Fresh store?

a) Yes b) No

Q6) How frequently do you visit the Reliance Fresh store?

a) Once in a month b) twice in a month a) once in a week d) more frequently

Q7) what are the products you purchase from Reliance Fresh?

1. Groceries

2. Staples

3. Frozen Item

4. Non-Food

5. Bakery

6. Process Food

7. Ice-Cream

Q8) How Reliance Fresh store is different from other stores?

a) Reasonable Price b) wider product range c) Good customer services

d) Better Quality of product

Q9) How would you rate the quality of our products?

Best Good Average Poor Reasons: a) Expired b) Damaged due to Bad packing c) bad quality of product

Q10) Are you a R-one card holder?

a) Yes b) No

Q11) Are you regularly using R-One card?

a) Yes b) No

If No, Please give reason:.

Q12) Are you satisfied with the benefits of R-one card?

a) Yes b) No

If no, Please give reason:

Q13) Are you a plastic card holder?

a) Yes b) No

Q14) What other additional products do you want Reliance Fresh should keep in its store?

a) Fresh Vegetables b) Fruits c) Apparels d) Electronic items

Q15) what more improvement Reliance Fresh can do which will give you a better shopping experience: ---------------------------------------------------------------------- THANK YOU For your co-operation.BIBLIOGRAPHYSources:-

1 Retail Management:- by Bajaj, Tuli, Srivastava2 Marketing Management :- By Philip Kotler3 Research Methodology: - By C. R Kothari & Taylor, Sinha & Ghoshal.4 www.google.com5 www.ril.com

Housekeepers

Membership Service Representative

Customer Service

Associates

Assistant Store Manager

Supervisor

Commercial

&

Accounting

Store

Manager

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Documents

16. Reliance Fresh.doc