Project of Ril

SRIRAM BUSINESS SCHOOL, GREATER NOIDA

Ranger Farms

“Location analysis of Ranger farm in Delhi NCR”Tughlakabad store

A Research Report

Faculty guide: Industry guide:

Dr.Ajay Kumar Mr. K Dive

Submitted by

Pardeep kumar

A research was proposed to study the opportunities for Reliance ranger farms in Retail market. India is the fifth best market location for Retail in the world this emerging market is witnessing a significant change in its growth and investment pattern. Both existing and new players are

experimenting with new retail formats . Research proposes to understand, analyse and recommend ways to harness this golden and untapped opportunity.

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Reliance ranger farms

PREFACEBusiness research methodology is designed to share the stimulating, challenging, fascinating and sometimes the frustrating world of research – supported design of an execution of a research proposal. In this research we all have collected both primary and secondary data on the company and tried to analyze both using various research tools. Some of the research tools discussed in this research are empirical, conceptual, descriptive and analytical.

For several years researcher practitioners have been exhibiting increasing interest in qualitative research methodologies. In their search for insights they are using their qualitative techniques more frequently. Confusions regarding the meaning and concepts can destroy a research study’s value without the researcher or client even knowing it. If words have different meaning to the parties involved, then the parties are not communicating well. Definitions are one way to reduce this danger.

Researcher struggle with two types of definitions: dictionary definitions and operational definition. In this research we have tried to significantly use both the definitions so as it does not destroys the meaning or the study value inculcated.

Proposition is defined as the statement about observable phenomena that may be judged as true or false. When a proposition is formulated for empirical testing that it is known as hypothesis. As a declarative statement about the relationship between two or more variable, a hypothesis is of conjectural and tentative nature

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TABLE OF CONTENTS

Chapter No. Subject Page No

Ch.-1.0 Executive Summary 4

Ch-2.0 Critical Review of Literature 6

Ch.-3.0 Research Methodology 20

3.1 Primary Objective(s)

3.3 Research Design

3.4 Sample Design

3.5 Scope of the Study

3.6 Limitations

Ch.-4.0 Profiles 29

4.1 Industry Profile

4.2 Company Profile

4.3 SWOT analysis

Ch-5.0 Location analysis 40

Ch.-6.0 Questionnaire 52

6.1 Analysis

Ch.-7.0 Recommendations 67

Ch.-8.0 Bibliography 71

Ch –9.0 Appendix 73

Ch-10.0 conclusion 74

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CHAPTER 1

EXECUTIVE SUMMARY

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Chapter 1

Executive Summary

People don't care how much you know until they know how much you care - about them and their problems." Robert Cavett -

In the modern day market customer is said to be the king, the companies in order to earn profits and create value based services and good products will always have to consider the consumers & their problems into consideration with expansion in new market and sector.

The primary objective of the producer is to develop products which would optimally satisfy the consumers &also achieving economies of scale to survive in the industry. This model will start with the consumer behavior pattern and will further penetrate into in-depth analysis internal, external and other influences that are relevant for the purpose of this study, while the second part study’s about the correlation between consumer behaviors & market share of Reliance ranger farms in India , with exploration into Retail market in India where the big player like Wal-Mart, covers major world market .

The Indian retail sector is going through a transformation and this emerging market is witnessing a significant change in its growth and investment pattern. Both existing and new players are experimenting with new retail formats. Currently two popular formats hypermarkets and supermarkets are growing at a rapid pace. Apart from the brick –mortar formats, brick -click and click-click formats are also increasingly functional on the Indian retail landscape. Consumer dynamics in India is also changing and the retailers need to take note of this and formulate their strategies and tactics to deliver the exact expected value to the customer. In the backdrop of all these developments the present paper makes an attempt to:

Explain the emerging trends in the development of Modern Retail formats in Indian Context and Highlights the emerging Rural Retail Landscape and also,

Reveals the Consumer Shopping Behavior (Across the Country) among the Modern Retail Formats with special reference to Delhi & NCR.

The empirical data has been collected with the help of Primary as well as secondary resources.

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CHAPTER 2

CRITICAL REVIEW OF LITERATURE

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Chapter 2

Consumer behavior refers to "Behavior that consumers display in searching for, purchasing, using, evaluating & disposing of products & services that they expect will satisfy their needs"

Consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." UNDERSTANDING consumer behavior is the key to success in the marketplace. Companies are constantly looking at customer behavioral patterns to predict future trends.

Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Marketers in recent times have realized the importance of marketing orientation, and this is being reflected in the application of marketing mix elements. Consumer needs are fundamental to the formulation of any marketing strategy, from developing a communication plan to offering a discount sale. It may be worthwhile to explore the intricate aspects of consumer behavior which focus on 'consumer needs'. These concepts enable marketers to analyze the applicability of strategies planned by them.

It is, of course, true that no manager has the power, the ability or the knowledge to measure and tweak everything he does in order to make the consumer dance to his tunes, yet this is something the average manager finds difficult to admit. One should at least be aware of this control trap.

Even though we cannot know everything that is to be known, we do need some in-depth knowledge about the consumer, starting with who she is. Is there a real Indian consumer or is there a set of stereotypes? All conventional wisdom in market research tends to favors the view that there are distinct types, and we need to isolate them according to some parameter and label them.

Once the appropriate sub-group for study, say, the affluent urban school leavers or cash-crop farmers, or whoever, is taken up, all quantitative study is abandoned. The focus then shifts entirely to what actually happens at the point of action. How does the 18-20 year old choose his music, his cafe, his two-wheeler, and his brand of soft drink or readymade clothes? Where does his initial thrust towards

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The purchase comes from? Who matters most to him as a source of information? Who are his reference groups? How does he test out the product? How much does a brand matter in this category to him?

Table: - Selected Consumer Behavior Roles

Roles Description

Initiator Initiator is the individual who determines that some need or was not being fulfilled and authorizes a purpose to rectify the situation.

Gate keeper Influences the family's processing of information. The gatekeeper the greatest expertise in acquiring and evaluating the information

Influencer Influencer is a person who, by some intentional and unintended word of action, influences the buying decision, actual purchase 0 use of product.

Decider The person or persons who actually determine which product (service will be chosen.)

Buyer Buyer is an individual who actually makes the purchase transaction.

User User is a person most directly involved in the use or consumes the purchased product.

Development of the Field of consumer Behavior

For a variety of reasons, the study of consumer behavior has developed as an important and separate branch in marketing discipline. Scholars of marketing had observed that consumers did not always behave as suggested by economic theory. The size of the consumer market in all the developed and rapidly developing economies of the world was extensive. A huge population of consumers was spending large sum of money on goods and services. Besides this, consumer preferences were shifting and becoming highly diversified. Even in case of industrial markets, where the need for goods and

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Reliance ranger farmsservices is generally more homogeneous, buyers' preferences were becoming diversified and they too were exhibiting less predictable purchasing behavior.

Important factors that contributed to the development of consumer behavior as a marketing discipline include shorter product life cycles, increased environmental concerns, interest in consumer protection, growth of service marketing, opening up of international markets and the development of computers and sophisticated techniques of statistical analysis.

Consumer Behavior Application in Marketing

Consumer behavior principles are applied in many areas of marketing as discussed below:

Analyzing market opportunities

Consumer behavior study helps in identifying the unfulfilled needs and wants of consumers. This requires examining the trends and conditions operating in the marketplace, consumers' lifestyle, and income levels and emerging influences. This may reveal unsatisfied need and wants. The trend towards increasing number of dual income households and greater emphasis on convenience and leisure has led to emerging needs for household gadgets. All these opportunities can be determined ones the consumer behavior is studied.

Selecting target market:

A review of marketing opportunities often helps in identifying distinct consumer segments with very distinct and unique wants and needs. Identifying these groups, learning how they behave and how they make their purchase decisions enables the marketer to design and market products or services particularly suited to their wants and needs.

Marketing - mix decisions:

Once unsatisfied needs and wants are identified, the marketer has to determine the right mix of product, price, distribution, and promotion. Here too, study of consumer behavior is very helpful in finding answer too many perplexing questions.

Product: The marketer designs the product or services that would satisfy unfulfilled needs and wants. Further decision regarding product concerns to size, shape and features.

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Reliance ranger farmsThe marketer has also to decide about packaging, important aspects of service, warranties and accessories etc.

Price: The second important component of marketing mix is price. Marketers must decide what price should be charge for the product or the services. These decisions will influence the flow of revenue to the company. Should the marketer charge the same, higher or lower price in comparison to competition? Is the consumer price sensitive and would a lower price stimulate sales? Should there be any price discounts? Do consumers perceive lower price as being indicative of poor quality?

To answer these questions, the marketer must understand the way the company's product is perceived by the consumers. It is only through consumer behavior study in actual buying situations that the marketer can hope to find answers to these important issues.

Distribution: The next decision relates to the distribution channel, that is, where and how to offer products and services for sale. Should the products be sold through all retail outlets or through selected outlets or should company be involved in direct channeling for the products? Is the location of the dealers important from the consumers' point of view? Should the company think of direct marketing?

The answers to these questions are furnished by consumer behavior research.

Promotion: Promotion is concerned with marketing communications to the consumers. The marl' important promotion methods are advertising, personal selling, sales promotion, publicity and marketing. The marketer has to decide which method would be most suitable to effectively reach the consumers. Should it be advertising alone or should it be combined with sales promotion? The company has to know the target consumers, their location, what media do they access to and what are their media preferences, etc.

To get the desired results the marketer always looks for the consumer behavior and buying pattern the target consumers in the respective locations.

2.2 Model of consumer behavior

Understanding consumer behavior and "knowing customers," have and never will be simple. Consumers may say one thing but do another. They may not be in touch with their deeper motivations. They may respond to influences that change their mind at the last minute. These issues have lead to theories like that of the black box approach taken on by Futrell. It refers to how marketers are not able to tap into consumer minds, thus "keeping them in the dark." In other words, marketers can apply various stimuli and

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Reliance ranger farmsobserve the conduct of consumers, but they cannot observe the consumers' actual thought processes.

This hidden Information is considered to be the black box. In an attempt to obtain some understanding, marketers study consumer behavior. Many researchers describe consumer behavior as the study of individuals or groups and the mental, emotional and physical processes they use to select, obtain, consume and dispose of products or services, to satisfy needs and wants, and the impact that these processes have on the consumer and society.

There are numerous models trying to explain consumer behavior. These models generally deal with various stimuli, influential factors, the decision-making process and outcomes. Some models are very basic and categories all variables such as the one proposed by Kotler's, which is illustrated in figure 3.1

.

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2.3 Internal factors influencing consumer behavior

Internal influences are able to playa huge role in affecting a consumer's behavior and include the following issues namely, perception, memory, learning, attitude, motivation, and emotion.

2.3.1 Perception

Perception has been defined as the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world Consumers are constantly bombarded with information every day. Information processing is susceptible to a consumer's perceptual defenses, namely selective attention, selective perception and selective retention. It is impossible for consumers to allocate their time and effort in addressing each bit of information. Therefore, this concept is known as selective attention

Selective perception refers to the way which all consumers, either adults or children, perceive the information they have given their attention to. There is a tendency to manipulate and interpret information into personal meanings that will fit consumer preconceptions.

2.3.2 Memory

A person's memory is the total accumulation of prior learning experiences. It consists of two interrelated components, namely short-term and long-term memory. The former, otherwise known as working memory, is that portion of total memory that is currently in use. The amount of information that it can store is limited thus making it an active, dynamic process and not a static structure.

Short-term memory houses two types of information processing activities: elaborative activities and maintenance rehearsal. Elaborative activities are defined as: " ... the use of previously stored experiences, values, attitudes, beliefs and feelings to interpret and evaluate information in working memory as well as to add relevant previously stored information. An example is that of a child using his existing knowledge, on ice-skating, in learning how to use a pair of roller blades.

Maintenance rehearsal on the other hand is something quite different and is defined as follows: " ... the continual repetition of a piece of information in order to hold it in current memory for use in problem solving or transferrable to long-term memory"]. A

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Reliance ranger farmsscholar repeating mathematics formulas or definitions several times, in preparation for a school test, is a typical example of maintenance rehearsal.

Long-term memory, the second component of memory, is seen as being unrestricted in the quantity or quality of information it is capable of storing. Remaining with the topic at hand, a difference between explicit and implicit memory needs to be addressed.

When a consumer makes a conscious recollection about an event (such as a trip to the local cafe) they were exposed to, then they are making use of their explicit memory. An example of implicit memory usage would see how a consumer tries to non-consciously retrieve a previously encountered stimulus that refers to an association with a brand.

2.3.3 Learning

Learning is the term used to explain the procedure by which a consumer's memory and behavior are altered as a result of conscious and non-conscious information processing. It has been suggested that learning comprises of two types, namely declarative and procedural. Declarative learning involves the subjective facts that are known (for example, that wheels, a saddle and pedals are components needed in riding a bicycle), whereas the procedural learning refers to the understanding of how these facts can be used (knowing how these components can be used in actually riding a bicycle)

It is crucial for marketers to acquire a thorough understanding of what consumers know (or don't know) for a simple reason - what consumers buy, how much they will pay, where they buy and when they buy are influenced by the knowledge they possess. Such understanding may lead to discovering significant gaps in consumer learning that, when closed, will increase the likelihood of a purchase. A misinformed consumer, for instance, may not understand how a product works, resulting in the product not being purchased or used correctly

User knowledge refers to the way a product can be used and what peripherals are needed in doing so. The adequacy of consumers' usage knowledge is important especially because of the fact that uninformed consumers will less likely buy the product .The way that some rural African people are taught the basics about using toothpaste as part of oral healthcare.

It should be mentioned that a purchase that has been made by a customer who is either uninformed or misinformed, can still result in a negative evaluation due to not being able to use or consume the product in the correct or intended manner. A common example is

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Reliance ranger farmsthat of a consumer who has just bought a cell phone airtime recharge voucher but does not know how to use it.

2.3.4 Attitudes

Attitudes refer to a consistent favorable or unfavorable orientation towards objects, concepts or situations. Attitudes consist of three components, namely cognitive, affective and behavioral. The cognitive component houses a person's knowledge and beliefs about an object. An example would be that a consumer believes that all convenience stores are open twenty four hours a day. The affective component represents a person's feelings about an object. A child, for instance, may love the smell of freshly baked cookies in a retail store. The behavioral or cognitive component refers to a person's action or behavioral tendencies toward an object or activity. The way a consumer makes the effort to buy and eat her preferred chocolate illustrates this point.

Attitudes can be used to predict consumer behavior. Attitudes are usually good predictors when they are measured at a time relatively close to when the behavior is to take place generally speaking. To demonstrate this, consider asking a child what he plans on doing for the weekend on a Friday. His reply should be relatively accurate. However, his answer would be less accurate if were asked the same question a month earlier. This suggests that the ability to predict future behavior will depend on the time interval between when attitudes are measured and when the to-be-predicted behavior actually takes place.

Even a fairly short time interval does not necessarily ensure accurate. For instance, what happens if the child plans on spending the weekend at a friend's house but his parents plan on taking him elsewhere?

On occasion, it is believed that social influences can affect behavior to a greater extent than personal attitudes. This has been deducted from the theory of reasoned action - stating that behavioral intentions are determined by either attitudes or subjective norm (perceived social influence)

Attitudes are often formed as a result of an experience a consumer has had with a product or service. The way a consumer regularly buys staple items from the same convenience store is an example. It must also be noted that experience is sometimes not needed in enabling a consumer to form an attitude For example, a child that has never played the

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Reliance ranger farmscomputer game 'Tomb Raider' may have a positive attitude towards it just by having watched the movie.

2.3.5 Motivation

Motivation is generally referred to as a creation representing an unobservable internal force that stimulates and compels a behavioral response and provides precise direction to that response

A person is said to be motivated when his or her system is aroused and driven towards a behavior in satisfying a desired goal. The stronger the drive is, the greater the perceived urgency of response will be. To a consumer, this drive can be viewed as either a need or a want. To illustrate the difference, consider a thirsty child buying a cold drink in a retail store. The child needs something to drink and can buy anything within his financial limits. The problem arises when he wants a 'Powerade' but can't afford it. He can, however, satisfy his need by buying another beverage. There are a number of factors that can act as catalysts in motivating consumers. The more prevalent ones, which include product consumption and acquisition; time; changed circumstances; individual differences and marketing influences will be discussed in the section dealing with need recognition.

I. Maslow's theory

Psychologist Abraham Maslow postulated that what motivates people to act is unfulfilled needs and that people meet certain basic needs before being highly motivated to meet other needs. People acquire their motives through genetic endowment and social interaction, some being more important than others.

In general, according to Maslow's macro theory, people first try to meet the needs at the bottom of the hierarchy - the physiological needs, such as the needs for food and rest as the needs in the bottom categories become satisfied, people move on to fulfilling needs in the higher categories, such as the needs for safety, affiliation, esteem and self actualization

Some studies have concluded that once a consumer has satisfied a need that particular need ceases to motivate the consumer. Subsequently another more important need is then pursuit by the consumer. To illustrate this point, consider a hungry child. Once the child's hunger has enticed him to buy and eat a pie, he will no longer be hungry and therefore not seem interested in pursuing his need for hunger.

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Reliance ranger farmsHowever, he might now be thirsty - this need will be his new motivation. Other studies have taken the view that lower-order needs never stop motivating consumers. Continuing from the previous example, the child may still want to pursue his hunger need, as he may also desire to eat a packet of sweets.

While Maslow's hierarchy of needs has been criticized as lacking empirical research to sustain its validity, it can help marketers in many ways. The model suggests some of the many needs that may motivate consumers to partake in an exchange. For example, manufacturers of cigarettes need to think not only in terms of meeting a consumer's needs for something to smoke, they can also serve affiliation needs. The marketers of 'Marlboro' cigarettes have successfully branded the product as a symbol of masculinity in the Western world - something a smoker may want in achieving his affiliation needs.

The only caution to bear in mind is that of distinguishing between adult needs and children needs ¬something that this report hopes to shed some light on. A child, for instance, may believe that sweets are important whilst an adult may disagree.

2.3.6 Emotions

An emotion is referred to as a strong, mental or instinctive feeling that affects consumer's behavior due to its virtually uncontrollable nature. A few of the physiological changes that take place include increases in perspiration, blood pressure, heart rate and blood sugar levels. In addition, eye pupil dilation and more rapid breathing can also be present.

All consumers experience different emotions at different times. These emotions are often triggered by environmental influences. There are, however, times when an individual's internal processes acts as a catalyst, therefore making it an issue that needs to be addressed as it is another form of internal influences found in the model of consumer behavior.

The degree of emotion will often depend on the individual and can vary from a mild emotion to an extreme one. Subsequently associated behaviors’, such as anger leading to violence, come into effect. In addition, an individual also experiences subjective feelings such as jealousy and fear. Consumers often recall these subjective feelings as being their emotions. Cognitive thought, however, is the accompanying aspect when these emotions take place. In other words, people start to think in varying degrees, particularly children. A child, for instance, may lose self-control over being frustrated or simply being bored.

2.4 External factors influencing consumer behavior

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Reliance ranger farmsExternal influences playa significant role in affecting a consumer's behavior and include the following issues namely, culture, subculture, social stratification, demographics, Geographic’s, families, and marketing activities.

2.4.1 Culture

Culture is referred to as the complex whole that includes knowledge, belief, art, law, morals, customs and any other capabilities and habits acquired by humans as members of society. Culture includes abstract and material elements. It influences attitudes, values, personality types, and religion and material possessions and so on.

Culture is of a scholastic nature and is acquired. Unlike animals, whose behavior is more instinctive, humans are not born with norms of behavior. Instead, they learn their norms through imitation or by observing the process of reward and punishment in a society of members who adhere to or deviate from the groups. This explains the way a growing child acquires a set of values, perceptions, preferences and behaviors through his or her family and other key institutions Consumers are seldom aware of how culture influences their lives. Consumers think and act in similar ways as do other consumers simply because it feels "right." This explains why certain human behavior may be acceptable to some cultures and yet on the other hand, manages to offend other cultures. It generally boils down to how people share a common set of convictions that organize and relate many specific attributes

Culture is inculcated - it is passed down from one generation to the next through institutions such as family members and. It should be noted that culture is also adaptive as culture evolves, it may be possible to associate benefits of a product or brand with new values or it may be necessary to change the product if that value is no longer gratifying in society. This can easily be verified by watching a television show from the seventies. This issue has given rise to something referred to as cultural borrowing - a responsible effort.

To borrow those cultural ways as seen helpful in the pursuit for better solutions to a

society's particular problems For example, South Africans may follow the

Dollarpean fashion industry trends. Finally, culture is regarded as a comprehensive

concept, thus including almost everything that influences a person's thoughts,

feelings and behaviors.

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Reliance ranger farms2.4.2 Social stratification, demographics and geographies

Social stratification refers to an influence that affects the ways consumers behave.

Virtually all societies exhibit social stratification. The respective social classes that

emerge are relatively homogenous and enduring divisions in society, which are

hierarchically ordered and whose members share similar values, interests and behavior.

In other words, a person is ranked according to one or a few dimensions valued by

society such the amount of money one earns or where one lives. The result of social

structuring subsequently reflects a community's expectations for a lifestyle among each

class as well as the positive or negative social estimation of honor and respect given to

each class.

Occupation is often seen as the best single indicator of social class in the field of

consumer behavior. One of its benefits is in examining different consumption patterns

and behaviors. For example, does a good occupation provide a better salary, which in

turn allows more consumption? A further step in this direction takes a look at a related

to possessions. Possessions are symbols of class membership - not only the number or

quality of possessions, but also the nature of the choices made an example is that of a

child who is able to buy more sweets than another due to having more pocket money

because of wealthy parents. In addition, the wealthier child can also buy branded sweets

as opposed to generic ones. Products and brands often seek to be positioned as symbols

of status.

With regard to demographics (the study of characteristics of a human population) and

Geographic’s (the study of characteristics of a geographical region), the only issue that

needs introduction for the time being is that of different types that are able to influence

consumer behavior and social stratification. A list of potential geographic categories

includes population size, density, climate and region. An inventory of possible

demographic categories includes age, gender, race, occupation, religion, family size,

nationality, education and income. As consumer wants, preferences and usage rates are

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Reliance ranger farmsoften associated with demographic and geographic variables, it is expected that the

demographics of the targeted Millennial Generation will heavily influence the

ecommendations to the respective retailers.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 Primary Objective

3.2 Hypothesis

3.3 Research Design

3.4 Sample Design

3.5 Scope of the Study

3.6 Limitations

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CHAPTER 3

Research Methodology

Research is a common parlance which refers to search for knowledge. Research is an organized inquiry carried out to provide information for solving problems. More specifically, it is the process of determining, acquiring, analyzing and synthesizing, and disseminating relevant data, information and insights to decision makers in ways that mobilize the organization to take appropriate actions that, in turn, maximize business performances. A good research generates data that is derived by proficiently conducted reference which is used reliably for decision making. In a good research methodology the purpose is clearly defined, design and process is thoroughly planned, highly ethical standards are used and the researcher makes decisions passably for decision maker’s need.

TYPES OF RESEARCH

Descriptive Research – it includes surveys and fact finding enquiries of different kinds. Its major purpose is to describe the state of affairs as it exists at present and the researcher has no control over the variables.

Analytical Research – in this type of research the researcher uses facts and information already available to analyze, to make a critical evaluation of the material.

Applied Research – it aims at finding the solution for an immediate problem faced by the industry/business organization like identifying social, economic or political trends that may effect a particular institution or the evaluation of the marketing research.

Fundamental Research – it is concerned with the generalization and with the formulation of a research study concerning some natural phenomenon or relating to pure mathematics or concerned human behavior.

Quantitative Research – it is based on the measurement of the quantity or amount. It is applicable to phenomenon that can be expressed in terms of quantity.

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Reliance ranger farmsQualitative Research – on the other hand is concerned with qualitative phenomenon, i.e. phenomenon related or involving quality or kind. Such kind of result is especially important in the behavioral sciences where the aim is to discover the underlying motives of human behavior.

Conceptual Research – it is related to some abstract idea or theory and is generally used by philosophers and researchers and thinkers to develop new concepts or to reinterpret existing ones.

Empirical Research – it relies on experience and observation alone, often without due regard for system and theory. It is data based research, coming up with conclusions, which are capable of being verified with observation or experiment.

RESEARCH PROCESSVarious steps involved in research done on Trident Homescape are

Literature Survey – before starting the research we conducted an in-depth study of the topic so as to draw a clear image of what and how the research has to be carried out.Formulating the Research Problem – the next step was to find out the problem of the case. The most important task was to define the problem clearly from an analytical point of view. This is the most important step because; if a problem is well defined then it means that it is half solved.Design of the Questionnaire – an unstructured questionnaire was framed by the group for the purpose of survey. All the questions used are closed ended in the questionnaire. Determining the Sample Size – furthermore the next step was to choose the number of people to be targeted from various age groups, salary scale, and gender. So a total of 50 people were approached for the surveyCollection and Analysis of Data – the data was collected from various people among different age groups and the data was segregated into various parameters in order to analyze it.Interpretation of Data and Preparation of Report – the findings was identified and recommendations were made and the final report was prepared.

3.1 PRIMARY OBJECTIVE22


To study the correlation between the consumer inclinations for new proposed model of Trident Homescape potential in Retail market in Delhi NCR region.

3.2 FORMULATION OF HYPOTHESIS

Hypothesis 1 – Ho [null hypothesis]: Development of new retail format is the USP for Reliance ranger farms and it affects the sale of the product in Delhi NCR region.

Hypothesis 2 – H1 [alternative hypothesis]: Whether there is a correlation between discounting distance age group and customer preference for Reliance ranger farms.

3.3 RESEARCH DESIGN

In order to fulfill the objectives of the study primary as well as secondary data have been collected to analyze the trends in modern retail formats meticulously. To analyze the emerging trends in shoppers’ behavior 40 shop keepers from 6 Malls operating in Delhi & NCR were interviewed during November 2007-Jan 2008.Since the study is focused on country analysis, hence, for the rest part of the country secondary data published by different research institutions like TSMG, CSSO, Future Group, NCAER etc have been considered to draw the key inferences.

The Logic behind selecting the area of Delhi & NCR for primary data collection can be justified by the argument that due to high migration rate from different states of the country to the Delhi & NCR makes it almost representative of the entire country. Since there are very few studies in the field of retail which focus on country-analysis, so, it forced the researcher to pursue meta-analysis & review. The research design can be understood as follows:

Collection of data

Secondary Research Conducted Primary data was collected from 23

Reliance ranger farms by NCAER, CSSO, TSMG, ICRIER, and FICCI India Retail Report was referred to analyze the Emerging trends in Modern Retail Formats in Indian scenario.

30 shopkeepers operating in different malls of Delhi & NCR to analyse the Customer shopping Behavior in Modern Retail Formats.

Research design constitutes the blue print for the collection, measurement, and analysis of data. It aids the researcher in the allocation of limited resources by posing crucial choices in methodology. A Questionnaire was framed by the group members to conduct the research.

COLLECTION OF DATA

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SAMPLING

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COLLECTION OF DATA

PRIMARY DATA

SECONDARY DATA

Surveys

Questionnaires

Observation

Indirect observation (archives)


DETAILS OF SURVEY CONDUCTEDThe survey is conducted on the 2 basis.1.Genral survey

Sample Size 50

Target Population Age:23-30 yrs 31-40 yrs above 40 yrs PROFILE:, retail customers.

Sample Area North Delhi West Delhi East Delhi South Delhi Noida Ghaziabad

Sampling Judgmental Sampling

Type of Questionnaire Structured

No. of Questions Involved 15

Type of Questions Close –Ended

3.4 SAMPLE DESIGN

The basic idea behind sampling is that by selecting some of the elements in the population, we may draw conclusion about the entire population. Sampling may be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or interface about the aggregate or totality is made.

In this research we used simple random probability to obtain a sample of 10 respondents. The respondents were asked 15 questions pertaining to their preference for purchase of the product. Then out of the total target population, a sample size using probability sampling was obtained. Probability sampling is a controlled procedure which ensures that each population element is given a known non zero chance of selection.

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Reliance ranger farms3.5 SCOPE OF STUDY

The research was carried out to find out the correlation between customer preference, current market share for newly launched Reliance ranger farms and attration toward Reliance ranger farms in Delhi NCR region. The study projects that more and more youth basically newly formed nuclear family are interested in purchasing from the Reliance ranger farms due to its quality, discount rate and easy availability (as every one is well aware of the products like towel, paper, and chemicals )and also due to the company’s continuous effort of time and money in research and development it can under go reforming structure . The research is an attempt to identify the factors that the company must keep in mind to reach the top position in the market and gain the maximum market shareAs it is well know that trident is export oriented company therefore the step into Indian retail market will add up to its value.

3.6 LIMITATION

The research was restricted only to the Delhi NCR region and did not consider a large area of population.

Also being a student it was very difficult to get a hold on the information from different industry people and also to cover a large number of populations.

Lastly, another limitation can be the credibility of information given by the respondents.

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CHAPTER 4

INDUSTRY PROFILE

COMPANY PROFILE

SWOT ANALYSIS

28

Reliance ranger farmsINDUSTRY PROFILE

Despite a recession in the global market, Indian Retail market is growing extensively and is expected to grow strongly in future too. However, future will see enhanced contrib on from the semi urban and rural market.

Retailing in India is receiving global recognition and attention and this emerging

market is witnessing a significant change in its growth and investment pattern. It is

not just the global players like Wal-Mart, Tesco and Metro group are eying to capture

a pie of this market but also the domestic corporate behemoths like Reliance, KK

Modi , Aditya Birla group, and Bharti group too are at some stage of retail

development. Reliance, announced that it will invest $3.4 billion to become the

country's largest modern retailer by establishing a chain of 1,575 stores by March

2007. The last couple of years have been rosy for real estate developers and the

retailers are finding suitable retail space in prominent locations. The industry is

buoyant about growth and the early starters are in expansion mood. There is

increased sophistication in the shopping pattern of consumers, which has resulted in

big retail chains coming up in most metros; mini metros and towns being the next

target. Consumer taste and preferences are changing leading to radical alteration in

lifestyles and spending patterns which in turn is giving rise to new business

opportunities. Companies need to be dynamic and proactive while responding to the

ever-changing trends in consumer lifestyle and behavior.

Retailing in India is currently estimated to be a USD 200 billion industry, of which

organised retailing makes up 3 percent or USD 6.4 billion. By 2010, organised retail

is projected to reach USD 23 billion and in terms of market share it is expected to rise

by 20 to 25 per cent. The report also predicts a stronger retailer growth than that of

GDP in the coming five years.

The generic growth is likely to be driven by changing lifestyles and by strong surge

in income, which in turn will be supported by favorable demographic patterns. Rapid

29

Reliance ranger farmsgrowth in international quality retail space brings joy to shoppers and shopping malls

are becoming increasingly common in large cities, and announced development plans

project at least 150 new shopping malls by 2008. The number of department stores is

growing at a much faster pace than overall retail, at 24 per cent annually.

Supermarkets have been taking an increasing share of general food and grocery trade

over the last two decades.

Development of mega malls in India is adding new dimensions to the booming retail

sector. Shopping experience in the nation of shopkeepers is changing and changing

very fast. There is significant development in retail landscape not only in the metros

but also in the smaller cities. Even ITC went one step ahead to revolutionize rural

retail by developing ‘Choupal Sagar’ a rural uti mall. On one hand there are groups

of visionary corporate working constantly to

The Larger Picture

Indian economy has shown an impressive growth of over 6 per cent for last five years

and continues to surge ahead. GDP growth rate in 2003-04 recorded a fifteen year

high of 8.5% and subsequently maintained a steady growth for the next two years.

Real GDP growth accelerated from 7.5 per cent during 2004-05 to 8.4 per cent during

2005-06 on the back of buoyant manufacturing and services activity supported by a

recovery in the agricultural sector. The central bank forecasts similar growth of 7.5-8

percent during 2006-07. With strong economic growth consumerism is increasing in

the country and India is the fourth largest economy as far as purchasing power parity

is concerned, just behind USA, Japan and China.

Consumer Trend

India is currently having the largest young population in the world and 54 per cent of

India’s population is below 25 years of age and 80 per cent are below 45 years. As

per India’s Marketing Whitebook (2006) by Businessworld, India has around 192

30

Reliance ranger farmsmillion households. Of these only a little over six million are ‘affluent’ – that is, with

household income in excess of INR215, 000. Another 75 million households are in

the category of ‘well off’ immediately below the affluent, earning between

INR45,000 and INR215,000. This is a sizable proportion which offers excellent

opportunity for organized retailers to serve.

AC Nielsen’s Retail and Shopper Trends 2004 Report made the following

observations on shopper’s behaviour in India:

(1) Indian shoppers spend an average of INR2500 on food, groceries and personal

care items every month and

(2) convenience stores are booming in most markets, as the number of such stores

exceeds 80,000.

According to the report, 48 per cent of shoppers in India admit that they ‘love to try

new things’, making them the most novelty seeking shoppers around the region and

total average monthly expenditure is only $50, of this, $21 is spent on fresh food,

comprising 42 per cent of the entire monthly spend. Indians also appear to spend

more on groceries and personal care items.

Business communities believe that sizable disposable income in India is concentrated

in the urban areas and well off and affluent classes; income distribution is unequal

compared to other Asian economies. In fact, the 20 million middle class home in

rural India equal the number in urban India and thus have the same purchasing

power. Therefore, there is significant and considerable opportunity for organized

retailers in the rural areas. There is no denying that the rural market holds immense

promise for the organized retail but companies ponder over how to serve that market

profitably.

Unlike the urban market, it is less developed in terms of infrastructure and facilities.

More than any thing else, the larger issue is to find out a suitable business model and

retail format to fit local taste and preference. Of course cost of doing business in rural 31

Reliance ranger farmsmarket would be lesser compared to urban market but reaching out to the mass is a

concern. It is not impossible but a bit more difficult. For example the most successful

and the largest incorporation Wal-Mart started in the rural market where as

competition started in the urban market. This retailer has proved that it is important to

understand how do you operate your business model rather than where you do it.

Given the increasing urban exposure of rural India, the urban and the rural upper-

income groups can form an interesting continuum market, giving it a scale of 23

million households, or 115 million consumers. In 2006-07, the consuming class

would be about 60 million households, or 300 million consumers.

Data shows that for 1998-99, for a basket of 22 FMCG products it tracks, a total of

over Rs 91,500 crore was spent. Of this, 37% was spent by the two lowest-income

groups in rural India, and only about 20% by the top two income groups in urban

areas. This is, perhaps, the best and only statement of the structure and potential of

the Indian market. Hence, marketers have to worry about purchasing power of

consumer not where he is living. For example there are nearly 42,000 rural haats,

average number of sales outlets per haat is 300 and average sales per outlet is INR

900 and average foot fall in a haat is about 4,500. In rural India there are 50 million

Kisan Credit Card (KCC) holders and in 2002-03, LIC sold 50 percent of its policies

in rural India. These are some of the indicators how rural India is performing.

Drivers of Retail

On one hand favorable demographic and psychographic changes in the Indian

consumer class, rising income, international exposure, availability of quality retail

space, wider brand choice and better marketing communication are some of the

factors driving Indian retail. On the other side a lot depends on the preparedness of

32

Reliance ranger farmsIndian retailers in terms of having suitable formats, scalable business model,

appropriate technology and relevant organization capability for the success.

Currently the country has a population of over one billion, 60% of which is under 30

years of age. This means majority of the population is young and working class with

higher purchasing power. The low median age of population means a higher current

consumption rate which augurs well for the retail sector. Consumer spending in India

has grown at over 12 percent since mid-1990s and 64 per cent of Indian GDP is

accounted for by private consumption. Over the last decade, the average Indian

spending has gone up from INR 5,745 in 1992-93 to INR 16,457 in 2003-04 and is

expected to grow around its trend rate of 12 per cent

There are fundamental but significant changes underway in this country. In January

2006, the government announced that foreign companies can own up to 51 percent of

a single-brand retail company, such as Nike or Adidas. This decision would certainly

encourage retailers such as Zara and Gap to enter this market. Tesco is planning to

enter the market through a partnership with Home Care Retail Mart Pvt Ltd and

expects to open 50 stores by 2010.

Retail Space Development

Through the 1990s, organised retail in India added just 1 million sq. ft of space a

year. Then, from 2001, the pace quickened dramatically. In 2003 alone, 10 million

sq. ft was added by this fledgling industry. Now the story is completely different and

the mall boom is all set to alter the competitive dynamics. Over 130 to 180 million sq

ft of new mall space are estimated to come up in the country in the next 3-5 years.

Nearly 70% of the total new mall space coming up in FY07 and FY08 will be in the

major cities reducing catchment areas for existing retailers. Key retail location like

Mumbai (up 203% to 15mn), Delhi (up 527% to 23.2mn), Bangalore (up 128% to

4.1mn), Hyderabad (up 163% to 5.3mn), and Pune (up 188% to 23.2mn) are all

seeing a mall construction boom and this space availability shall lower the barriers to 33

Reliance ranger farmsentry. A state like Punjab is in the midst of mall boom. By the end of 2005 one single

mall was operational with GRA of 1.2 lakh sq ft and by the end of 2008 there will be

37 malls operating with gross leasable area (GLA) of 15.2 million sq ft. Ludhiana is

leading the way with 11 malls and GLA of 5 million sq ft..

34

Reliance ranger farmsCOMPANY PROFILE

Reliance Industries Limited, the Mukesh Ambani-led largest private sector company of

the Reliance group, which owns retail vertical known as Reliance Retail Limited,

announced its annual financial results for the year ended March 31, 2008, on 21st April,

2008.

While, the company announced overall net profit for the financial year 2007-08 leap

frogging 63% to Rs 19,458 crore during the year, the company has refrained from

divulging any financial information concerning its retail business in the announcement.

Reliance has, however, informed that Reliance Retail, the wholly owned subsidiary of the

company, which launched its retail business on 3rd November, 2006 Hyderabad with the

opening of a cluster of 11 neighbourhood, convenience, stores called Reliance ‘Fresh,’

has in the past 18 months grown into becoming a retail chain of over 590 stores. These

stores spread over 57 cities, spanning 13 states, across the country, are currently

operating 12 ‘general’ and ’speciality’ retail formats. According to the media release,

they occupy over 3.5 million square feet of trading space.

Reliance Retail’s performance could, however, have been much more impressive, if in

the face of political backlash, the retailer had not been forced to roll back its expansion

plans in several states across the country. Reliance, it may be recalled, has been facing

strident, and some times violent resistance, from political activists, small traders and state

administrations in the states like Uttar Pradesh, Kerala, West Bengal, Tamilnadu, Orissa,

Madhya Pradesh, and Jharkhand, among others.

Reliance Retail during the period has also entered into two joint ventures, with Pearle

Europe - a Neatherland-based leading European optical retailer and with Marks &

Spencer, a UK-based iconic retailer of apparel, homeware, food and grocery.

Reliance’s retail business is currently operated through 12 distinct store formats.

While the four general merchandise formats are: Reliance ‘Fresh’ – a neighbourhood

convenience concept, Reliance ‘Delight’ - a non-vegetarian food concept, Reliance

‘Mart’ - a Hyper Market concept, Reliance ‘Super’- a Minimart concept, the eight

’speciality’ products concepts include: The Reliance ‘Digital’ – a Consumer Durables

35

http://www.indiaretailbiz.com/blog/2008/03/05/reliance-to-set-up-optical-products-chain-inks-jv-agreement-with-pearle-europe/

http://www.indiaretailbiz.com/blog/2008/03/05/reliance-to-set-up-optical-products-chain-inks-jv-agreement-with-pearle-europe/

http://www.indiaretailbiz.com/blog/2008/04/19/reliance-forms-jv-with-m-plans-to-set-up-50-stores-in-5-years/

http://www.indiaretailbiz.com/blog/2008/04/19/reliance-forms-jv-with-m-plans-to-set-up-50-stores-in-5-years/


and IT concept, Reliance ‘Trends’ - an apparel concept, Reliance ‘Wellness’ – a health,

wellness & beauty concept, Reliance ‘iStore’- an Apple store concept, Reliance

‘Footprint’ -a footwear concept, Reliance ‘Jewels’ – a jewellery concept, Reliance

‘Time-Out’ - a books, music & entertainment concept, and Reliance ‘AutoZone’ – an

automotive specialty concept.

Reliance Retail has also launched an across the formats loyalty programme for customers called Reliance ‘One,’ which as on date boasts of over 3 million loyal customers.

36


SWOT ANALYSIS

STRENGTH

Reliance ranger farms expertise in consumer exotic and daily needs and consumer to bring you the best in consumer home solutions. Strength also involves:

• Customer orientation • Quailty control• Logistics and supply chain management• Growing sale of terry towel, paper and pharmaceutical products • Low Debt • Wide rage of innovative products • Retail stores expansion model. • Niche market and vertical integration

WEAKNESS The weakness of Reliance ranger farms involves

• Legal Proceedings • No immediate revenue reflection from Reliance ranger farms sale. • Market Criticism for retailers• Pricing for products.

37


THREATS

Trident is considered as export oriented manufacturer of terry towels and paper , Reliance ranger farms is taking on as Retailer in india for home solution and daily need there is change in image of the company.Threats also involves:

• Competitors model of retailing• Effective logistic and supply chain management• Low Compatibility with Non-international Products • Less Global Coverage Compared to Competitors • Easy Substitution availability.

OPPORTUNITIES

Apple Inc. integrates applications and content into every mobile phone offering. Their broad portfolio of phones are feature-packed smart windows phones, 3G, touch screen, enabling business productivity, imaging, advanced 3D gaming, mobile music and multimedia communication, is the perfect starting point for any developer's business.Opportunities also involves:

• Competitors Offer Wider Product Line (so easy to expand)• Expansion of Retail Stores for Customer Convenience .• E- oredering and procurement service• Home demo and large shopping spce• Store in outskirts of city.• Participate in Joint Ventures with other big player in near future.• Make Easy availability Products for Upcoming Retirees

38


CHAPTER 5

Location analysis

39


Location analysis

Retail Revolution is a strategic marketing firm with expertise in and passion for place-

based marketing - helping dynamic retailers get the best results from their location. Our

site selection service includes:

Market Analysis . Complete overview of the demographic and competitive

environment of your business, including trade area analyses and customer

targeting

Location Strategy . Using the information gathered in the market analysis, a

comprehensive location strategy will be developed, including key spatial factors,

square footage ratio calculations, and .ideal. site descriptions .

Site Specific Analyses . Once the location strategy has been determined and

shared with a commercial realtor, Retail Revolution will conduct on-site

investigations of proposed outlets, exploring things like signage site lines,

pedestrian and auto traffic counts, access, and how the site fits into the

surrounding retail environment

We are dedicated to making your business work; however we will not hesitate to

recommend changes, delays, or even outright cancellation of the retail project if we feel

your time or money will be wasted.

The majority of retail locations fail . but that.s because the majority do not ever take the

time to methodically and thoughtfully explore the relationships between their product,

location, and customers. By coming to Retail Revolution you.ve already put yourself

ahead of the pack.

40


CHOOSING A RETAIL LOCATION

The choice of a store location has a profound effect on the entire business life of a retail

operation. A bad choice may all but guarantee failure, a good choice success.

This aid takes up site selection criteria, such as retail compatibility and zoning, which

the small storeowner manager must consider after making basic economic, demographic,

and traffic analyses. It offers questions the retailer must ask (and find answers to) before

making the all important choice of store location.

The first step in choosing a retail business location takes place in your head. Before you

do anything else, define your type of business in the broadest terms and determine your

long-term objectives. Write them down. This exercise will help you later in choosing a

retail location.

In picking a store site, many storeowners believe that it's enough to learn about the

demographics ("people information" like age, income, family size, etc.) of the

population, about the kind of competition they'll be facing, and about traffic patterns in

the area they're considering. Beyond a doubt these factors are basic to all retail location

analysis.

Once you've spotted a tentative location using these factors, however, you've only done

half the job. Before you make a commitment to moving in and setting up, you must

carefully check several more aspects of the location to help insure your satisfaction with

-- and most importantly your success at - the site you've chosen.41

Reliance ranger farmsLOCATION STRATEGY & SITE SELECTION FOR NEW RETAIL OUTLETS

Retail Revolution is a strategic marketing firm with expertise in and passion for place-

based marketing - helping dynamic retailers get the best results from their location. Our

site selection service includes:

! Market Analysis . Complete overview of the demographic and competitive environment

of your business, including trade area analyses and customer targeting.

! Location Strategy . Using the information gathered in the market analysis, a

comprehensive location strategy will be developed, including key spatial factors, square

footage ratio calculations, and .ideal. site descriptions.

! Site Specific Analyses . Once the location strategy has been determined and shared with

a commercial realtor, Retail Revolution will conduct on-site investigations of proposed

outlets, exploring things like signage site lines, pedestrian and auto traffic counts, access,

and how the site fits into the surrounding retail environment.

We are dedicated to making your business work; however we will not hesitate to

recommend changes, delays, or even outright cancellation of the retail project if we feel

your time or money will be wasted.

42

Reliance ranger farmsThe majority of retail locations fail .but that.s because the majority do not ever take

the time to methodically and thoughtfully explore the relationships between their product, location, and customers.

By coming to Retail Revolution you.ve already put yourself ahead of the pack.

The Challenge

Opening a new retail location isn.t easy . whether it.s it is your 1st, 5th, or 125th.

Independent retailers often do not have to resources to consider the very basic needs of

an outlet, such as:

! The store must be situated at a location which optimizes exposure to target consumers

and is accessible . on foot, by car, or by transit.

! The store must generate enough revenue per square foot to cover the cost of rent;

insurance; any applicable parking fees; any applicable sprinkler, trash or sewage fees;

any applicable taxes; any heating, ventilating and air conditioning (HVAC) costs; any

common area maintenance (CAM) costs; and the wages of employees. Issues

! In addition to covering costs, it is necessary for the store to turn a profit within a

reasonable amount of time in order to make the venture worthwhile and to justify the

tremendous investment made by owners and managers. A thorough marketing analysis

and solid location strategy will position your new outlet for success, both

financially/logistically as well as in relation to competitors.

43


Three important factors determine a retailer.s success:

Location, Location, Location.

1. Marketing Analysis

Before a successful location strategy can be developed, a full assessment of the market

conditions must be carried out. We accomplish this by analyzing three sets of

information:

1. Strategic Context

This is determined through 1-2 in-person meetings with the client, as well as continual

communication over the course of the project. This process gives us direction by

determining:

a. Vision/mission of the store . What do you want it to be and do?

b. Your strengths and weaknesses

c. The opportunities and threats that you face.

2. Environmental/Situational Context

This analysis is done through external secondary research and provides an overview of

larger forces that will affect your business, including:

a. Legal/regulatory issues

b. Economic/political/social issues

c. Cultural and Vancouver-specific trends

44

Reliance ranger farms3. Market Research

The most important step: determining the nature of your industry, customers, and

competition. This includes:

a. The location strategy of other thrift stores . where they are, what populations do they

serve, how big are their sales?

b. The market segments that would shop at your store . who are they and what are their

spatial characteristics?

c. An industry-specific trade area analysis, mapping the size and nature of the existing

thrift store market in Vancouver.

Once the marketplace is understood, a detailed and precise location

strategy is possible.

2.Location Strategy

This is when tough decisions must be made. Where do we want the store? How big will it

be? And most importantly: Is this a viable project? Using the data from the marketing

analysis as well as further consultation with the client, the location strategy outlines:

! Key Factors

What are the main geographic and real estate .related criterion for the success of the new

store?

! Square Footage Ratios

There is a well-defined and extremely important relationship between your inventory,

your costs and the square footage of your store. We help you find the best balance for

45

Reliance ranger farmsyour specific situation. The best store size is the one that finds an equilibrium between

sales/sq.ft and costs per sq.ft. (and eventually, a profit/sq.ft).

! .Ideal. Site List

Given the key factors and revenue/cost/square footage calculations, we provide a

description of your model location; including specific areas, neighbourhoods and streets

in Vancouver where it would be located. This is meant to give the client points of

reference to evaluate the strategy. It is also meant to help the commercial realtor in the

search for a site.

With a Location Strategy in place, we being work with a commercial realtor to

find existing sites for lease that best match the defined criteria.

7 Things You Need To Know About Selecting a Retail Location

Selecting a location for your retail store is one of the most important decisions you will

make as a small business owner. Picking the right location can lead to success and profits

– choosing the wrong spot for your retail operation could put you out of business.

1. Type of Business.46


Well before hitting the streets to look for a location, take a hard look at the type of

business you will be operating. For example, how many different kinds of products will

you be selling? Your product mix will have an impact on such things as the amount of

square footage and storage space required at the location. If you are a service provider,

factors such as office space will be an important consideration.

Start brainstorming or "white-boarding" ideas of what your target audience might expect

when they enter your store - make a list of all the factors you can think of including

display space, # aisles, aisle width, shipping/receiving area, storage space, office space,

in-store traffic flow, etc. Once you visualize what the shopping experience looks like for

your customer, you will gain a better idea of what will be required in a location.

2. Demographics.

Another critical component of retail location selection is understanding your target

market, both in terms of your target shopper and the geographic area surrounding your

proposed location. Once you have established your target market i.e. gender, age, income

level. etc. start researching some of the following information:

* What neighborhoods are home to your target market?

* How far will prospective customers travel to shop at your location?

* What are the statistical trends in a proposed location i.e. population growth; income

growth; aging trends, etc? How might this affect your store 5 or 10 years after locating?

* What are the employee demographics in particular areas? With labour shortages

becoming an ongoing challenge for retailers, does your proposed location have access to

potential full time and part-time employees?

47


3. Competition.

Make sure that you have thorough knowledge of all the competitors in a proposed

location, good and bad.

Bad competitors are those that will have a negative effect on your business. Some

examples might include retail stores that might be selling the exact same products (at a

discount) or stores that attract the opposite target audience as your retail operation.

Good competitors are retail stores that compliment your business by drawing a similar

target audience to your store's surrounding area. A good example are retail "pockets" that

exist in many cities - shopping destinations that attract larger numbers of consumers by

offering complimentary stores in close proximity to one and other i.e. fashion districts,

areas with a high concentration of art galleries, auto malls, etc.

4. Traffic Patterns.

It's also important to know how vehicle and pedestrian traffic patterns might affect

business at a proposed location. Some things to look for include:

Access to the store by traffic moving in both directions (both by car and on

foot).

* Number of cars passing the store location.

* Number of pedestrians walking by the location.

* Proximity to public transit.

If you’re savvy about it, you do a whole lot of looking. You’d be in a car and

do it, and then you’d be on foot. And you’d go weekends and weekdays, just

to make sure there’s not a big traffic difference. Find out which side is the

48

Reliance ranger farmsbusy side of the street, and check out where the parking is.

5. Merchant Associations.

An often overlooked factor when considering a location is the presence and strength of a

local merchant association. According to the The BC Women's Enterprise Centre,

merchant associations can offer a number of benefits to your retail operation:

* A strong merchant's association can promote and maintain business in a given area.

* The presence of an effective merchants' association can strengthen your business and

save you money through group advertising programs, group insurance plans, and

collective security measures.

* A strong merchants association can accomplish through group strength what an

individual store owner couldn't even dream of. Some associations have induced city

planners to add highway exits near their shopping center. Other have lobbied for -- and

received -- funds from cities to remodel their shopping centers, including extension of

parking lots, refacing of buildings, and installation of better lighting.

* Merchants' associations can be particularly effective in promoting of stores using

common themes or events and during holiday seasons. The collective draw from these

promotions is usually several times that which a single retailer could have mustered.

6. City By-Laws, Zoning and Planning.

Understanding all the "rules" and plans your municipality has laid out is very important

when it comes to selecting a location - your retail store's long term success could

depend on it. Some things to consider are:

* Zoning - Are there any restrictions that might prevent you from doing specific

49

Reliance ranger farmsrenovations or leasehold improvements?

* By-Laws - What are some of the laws that might have an affect of your retail

operation? For example, are you able to use the space in front of your store for

promotions...are you restricted from operating during certain hours, etc?

* Planning - Are there any major development plans that could impact your retail

operation? Is there any major road construction planned close to your store?

7. Don't Rush - Be Patient.

It's very tempting to jump at a location you fall in love with - but just like in residential

real estate, "head over heart" is the best approach when it comes to picking a retail

location.

David Gray cautions those who want to act on impulse. "You could just destroy your

business being in a bad location. A bad spot might well be (a real trendy area); it might

be that you can’t take a left turn or there’s no parking, so don’t rush into anything until

you know it's perfect, or close to it."

50


CHAPTER 6

QUESTIONNAIRE

ANALYSIS OF THE QUESTIONNAIRE USING SPSS

51


QUESTIONNAIRE

Your Opinion Matters…

1) Where do you see the advertisement of the daily needs product?

a) T.V b) N. Paper c) Magazine

d) Posters e) Radio f) No Where

2) Which store or brand you prefers for purchasing these products?

a. Reliance fresh/ranger farm

b. big bazar

c. Others ,plz specify___________

3) What is the time duration in which you change visit this stores?

0-2week 2-4week 1 -2 month >3month never

4) How much u spend each time visiting this stores?

a) <200 b) 200-500 c) 500-1000

d) 1000-2000 e) <2000

5) What products do you prefer /buy the most?

52

Reliance ranger farmsa) Staples

b) fruits and vegetables

c) personal care

d) home care

e) beverages and processed food

6) Do you know about Reliance ranger farms?

Yes NO

7) Suppose if you have to purchase the Reliance ranger farms then on what bases

You would like to purchase the home products?

a) Quality b)Discount c) Home deliver d) service at store e)Others

8) Are you going to buy from Reliance ranger farms if it is launched in nearby area?

Yes NO can’t say

9) How long would you travel to visit a store which is all exclusive for your needs?

a) <5 kms b) 5-10kms c)Distance doesn’t matter.

10) Choose one ?

Discount near by place quality

53


Personal information

Name: ---------------------------------------- sex marital status

Age <16 years 16-25 years 26-35 years 36-45 years > 45 years

Occupation:

Address:

Family income per annum (in lacs) 0-2 2-3 3-4 4-5 >5

E-mail id(to know the results of survey):

Thanks for your precious time

54


ANALYSIS OF THE QUESTIONNAIRE

Preliminary Questions analysis –

1) Where do you see the advertisement of the Home product?

ad_analysis

Frequency Percent Valid Percent Cumulative Percent

Valid TV 5 10.0 10.0 10.0

N paper 1 2.0 2.0 12.0

MAGZINE 15 30.0 30.0 42.0

POSTER 6 12.0 12.0 54.0

RADIO 9 18.0 18.0 72.0

NO WHERE 5 10.0 10.0 82.0

others 9 18.0 18.0 100.0

Total 50 100.0 100.0

2) Which store or brand you prefers for purchasing these products?

55


Competitors_analysis

Frequency Percent Valid Percent

Cumulative

Percent

Valid RF store 11 22.0 22.0 22.0

Big bazar 15 30.0 30.0 52.0

others 24 48.0 48.0 100.0

Total 50 100.0 100.0

3) What is the time duration in which you visit this stores?

visit_analysis


Cumulative

Percent

Valid 0-2 weeks 5 10.0 10.0 10.0

2-4 weeks 10 20.0 20.0 30.0

1-2 months 30 60.0 60.0 90.0

>3 months 5 10.0 10.0 100.0

Total 50 100.0 100.0

56


4) How much u spend each time visiting this stores?

spending


Cumulative

Percent

Valid less than 200 15 30.0 30.0 30.0

200-500 5 10.0 10.0 40.0

500-1000 12 24.0 24.0 64.0

1000-2000 13 26.0 26.0 90.0

more than 2000 5 10.0 10.0 100.0

Total 50 100.0 100.0

57


5) What is most suitable purchase from these stores?

suitable_purchase


Cumulative

Percent

Valid Staples 11 22.0 22.0 22.0

Fruits and vegetables 10 20.0 20.0 42.0

Personal care 10 20.0 20.0 62.0

Home care 10 20.0 20.0 82.0

Bev and processed food 9 18.0 18.0 100.0

Total 50 100.0 100.0

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6) Do you know about Reliance ranger farms?

popularity


Cumulative

Percent

Valid yes 27 54.0 54.0 54.0

2.00 23 46.0 46.0 100.0

Total 50 100.0 100.0

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Reliance ranger farms7) Suppose if you have to purchase the Reliance ranger farms then on what bases

You would like to purchase the home products?

purchase_factor


Cumulative

Percent

Valid quality 9 18.0 18.0 18.0

discount 8 16.0 16.0 34.0

home delivery 13 26.0 26.0 60.0

services 13 26.0 26.0 86.0

others 7 14.0 14.0 100.0

Total 50 100.0 100.0

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8) Are you going to buy from Reliance ranger farms if it is launched in nearby area?

potentail


Cumulative

Percent

Valid yes 12 24.0 24.0 24.0

no 22 44.0 44.0 68.0

cantsay 16 32.0 32.0 100.0

Total 50 100.0 100.0

9) How long would you travel to visit a store which is all exclusive for your needs?

distance_travelled


Cumulative

Percent

Valid less than 5 kms 7 14.0 14.0 14.0

more than 5kms 18 36.0 36.0 50.0

any where around 25 50.0 50.0 100.0

Total 50 100.0 100.0

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10) Choose one ?(impulsive questioning)

impulse_analysis


Cumulative

Percent

Valid quality 19 38.0 38.0 38.0

nearby place 15 30.0 30.0 68.0

discount 16 32.0 32.0 100.0

Total 50 100.0 100.0

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Personal information

Age

AGE


Cumulative

Percent

Valid <16 2 4.0 4.0 4.0

16-25 14 28.0 28.0 32.0

26 -35 21 42.0 42.0 74.0

36-45 7 14.0 14.0 88.0

46 above 6 12.0 12.0 100.0

Total 50 100.0 100.0

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Occupation:

occupation


Cumulative

Percent

Valid service 12 24.0 24.0 24.0

govt employee 20 40.0 40.0 64.0

busines man 12 24.0 24.0 88.0

pofessor teachers and

lecturer

5 10.0 10.0 98.0

5.00 1 2.0 2.0 100.0

Total 50 100.0 100.0

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CHAPTER 7

RECOMMENDATIONS

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RECOMMENDATIONS

After conducting the Meta –Analysis for the Indian retailing market, it can be

concluded that:

1) Retailers need to think about shoppers not just about a format as understanding the

shoppers’ dynamics holds the key to such a business. Retailers would have to create

new delivery formats that can cater to the huge mass of consumers.

2) Retailers must understand what value shopper is looking for and how the retailers can

deliver that desired value to the customer. However, most retailers look for what they

are offering and how shoppers can fit into retailer’s scheme of offerings.

3) In the long run such strategies may not be viable. Sam Walton and Jack Welch share a

same line of thinking that consumer is the source of competitive advantage and one of

leading UK based retailers Tesco Inc. has shown how understanding consumer can be

a source of redefining business and gaining sustainable advantage.

The retailer operates four different retail formats namely Express, Super store Metro and

Extra to cater consumer need. The Group also has an additional 527 stores under the One

Stop fascia. All the formats are profitable and each format is tailor made to fulfill

customer need. It is the value offering which makes Tesco so popular and profitable.

Similarly in India Pantaloon Retail runs several formats and for value retailing Big

Bazaar is receiving exceptional response from the customers.

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4) Retailing in India is entirely different from western countries for that matter even

from Asian counterparts. Studies show that upgraded Kirana stores are growing at the

same rate as organized retailers.

5) It is also observed that in the changing retailing environment, understanding the

psyche of customer is critical to success in retailing. Aggregate level picture may be

misleading, as it averages the beats and the valleys. Hence, individual understanding

is desirable.

6) Though, some Indians are behaving as sophisticated shoppers, tens of millions are still

novice but no less avid consumers are joining the fray every year. So, retailers have to

acknowledge this change and also stay a step a head of the evolution curve of the

Indian market.

7) Finally, it is not the format that gives business sustainability rather it is one of the

vehicles to deliver the value to the customer.

8) Indian consumers are still family-driven entities. Shopping, entertainment and eating

out are family events. Since these decisions are normally group decisions, hence a

marketer has to address family sensibilities more rigorously to woo Indian customers.

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Reliance ranger farms9) Indian customers have become more sensitive to quality, customer service and status.

He/She is ready to pay, sometimes, astronomical sums provided their needs are

satisfied. They are basically looking for an experience which is more of cognitive than

physical. In brief, Jo Dikhta Hai Wo Hi Bikta Hai.

In some cases, few Kirana store owners find no competition because they understand

what their customers want. So ultimately it can be said that for a retailer understanding

the customers is just like climbing the Greased Pole.

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CHAPTER 8

BIBLIOGRAPHY

REFERENCES

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Bibliography

BOOK

Cooper DonaldR, schindler Pamela, 2006 Business Research methods ,New Delhi:Tata McGraw Hill.

e-BOOKS

Hollway, Wendy, Jefferson, Tony. 2000. Doing qualitative research differently. London: Sage.

Roth, Audrey J., 1999. The research paper: process, form, and content. Belmont: Wadsworth.

INTERNET

reliance page- http://www.tridentindia.com

Imrc –http://imrs.com/retainews.html

retail india report -http://www.canalys.com/pr/2007/r2007101.htm

retailnews-http://www.retailnews.com/info/2005/03/01/004003.html

blog-http://a-pluss.com/blog/category/research-proposal-tips

NEWS PAPER, MAGZINE, JOURNALS AND OTHER SOURCES

Company (Retail Location)

Business today edition dated Nov 6, 2008

Businessworld - The Marketing Whitebook, 2008

Press Sources like Economic Times, Business Standard, The Hindu Business Line

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http://a-pluss.com/blog/category/research-proposal-tips

http://www.canalys.com/pr/2007/r2007101.htm

http://www.trident/

Reliance ranger farmsKSA Technopack Studies ( Handles some aspects of franchise for Barista)

CHAPTER 9

APPENDIX

72


73


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CONCLUSION

Thus in the above report we have discussed the primary objective of the producer which is to develop products which would optimally satisfy the consumers &also help in

achieving economies of scale to survive in the industry. We have also discussed several research criteria which could prove better for the performance of the industry. In the

above report we have also seen the that retailing in India is receiving global recognition and attention and this emerging market is witnessing a significant change in its growth and investment pattern as a result even in the period of global recession Indian retail market is growing extensively. Development of mega malls in India is adding new

dimensions to the booming retail sector. In all this scenario Reliance has played a very important role in maintaining the economy of Indian retail .Several analytical steps is

being taken by the company to maintain the regular growth of the company and also the development of the country.

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Documents

Project of Ril