PROJECT REPORT
CUSTOMER CENTRICITY AT VALUE FORMAT STORE
ORGANIZATION NAME: - RELIANCE NAME: - RELIANCE
RETAILRETAIL
SUBMITTED BY:SUBMITTED BY:
DECLARATION
I will take pleasure in declaring that the project work that is undertaken by me is an
original and authentic work done by me. This project is being submitted I partial
fulfillment for award of degree of Post Graduate Programme in Management from
The content of this report is based on the information collected by me during my
tenure at Reliance Retail Ltd. (New Delhi) for two months of training from
CONTENTS PAGE NO. Preface
7 Executive summary 8 1 Introduction
1.1 Overview 9-10
1.2 Rational of Study 11
1.3 Retailing Sector 12-18
A) Policy Initiatives 16
B) Road ahead 17-18
1.4 Retail Sector in India 19-39
A) Major players in retail industry 22-23
B) FDI in Indian retail sector 24-25
C) Growth of retail companies in India 26-27
D) Emerging trends in Indian retail sector 28-30
E) Scope of the Indian retail sector 31-33
F) Challenge facing the Indian retail sector 33-36
G) Format in Indian retail sector 37-39
1.5 Reliance Industry Ltd. 40
1.6 Reliance Retail Ltd. 41-45
A) Products of Reliance stores 45
1.7 Reliance Fresh 46-52
2 Review of Literature 53-54
3 Research Methodologies 55-62
3.1 Objective 55
3.2 Scope 55-56
3.3 Meaning 56
3.4 Research Design 57
3.5 Data collection 58
3.6 Research instrument 58
3.7 Sampling 58
3.8 Sample size 58
3.9 Tools and Technique 58
3.10 Daily Reporting 59
3.11 Store observation report 60
3.12 Questionnaire 61-62
4 Data Analysis 63-68
5 Suggestions 69
6 Limitations 71
7 Bibliographies 72
PREFACE
The success of the entire business depends on the satisfaction of the customers. The voice of the
customer plays a vital role to improve the business.
The motivation and the resultant buying behaviour assumes great importance.
We have tried to put our best effort to complete this task on the basis of skill that we have
achieved during our studies in the institute.
We have tried to put our maximum effort to get the accurate statistical data. However we would
appreciate if any mistakes are brought to us by the reader.
EXECUTIVE SUMMARY
After getting a lot of knowledge and the experience from the respected and honored faculty and
concern staff, It was the time to use that knowledge and experience in practical and this
opportunity was provided by the Reliance Retail to me. Reliance Retail gave me the opportunity
to do work on project titled “A project to evaluate customer centricity at Value Format
Stores”.
The main focus of this project was to know about the customers feedback and to where the need
of the improvement. By this project we tried to know customers satisfaction from our service. If
the customers are not satisfied with our service and due to any reasons than we try to do the
proper improvement to satisfy the customers.
The customers are the only reason why we are in business, so satisfying them will ultimately
make our business more profitable. There is a need to highlight the importance of a customer
service climate in Value Format Stores. A climate that emphasizes courtesy and competence, and
a work environment that promotes strong working relationship and empowerment.
OVERVIEW- STUDY OF CUSTOMER CENTRICITY AT
VALUE FORMAT STORE:-
Customers are the very essential part of the every business. The voice of the customers is playing
a vital role in the growth of the any organization. Customer’s voice gives a right direction of
improvement to the business. By the study of the customer’s centricity we can know about the
perception and need of the customer and we can mould our operation as per the customers need
or demand.
When a customer goes for buying something, there is many things those influence the decision
of customer which type of shop or store we should go, we go for malls, any exclusive store,
company outlets, general store or departmental store and any common shop etc. And also these
things influence the purchase decision of the customers.
(A) FACTORS INFLUENCING CONSUMER BUYING
BEHAVIOR
There are four major factors that influence the buying behavior such as cultural factors, social
factors, personal factors, and psychological factors.
i. CULTURAL FACTORS: Culture is the most fundamental determinant of a
person’s needs and behavior. Values, perceptions, preferences, and behavior are the main
variables under culture of an individual. Each culture contains sub-culture like
nationality, religious group, geographical area, and linguistic divisions etc.
ii. SOCIAL FACTORS: A consumer behavior is also influenced by social factors
such as the consumer reference group family and social roles and status.
iii. PERSONAL FACTORS: A buyer decision is also influenced by his or
personal characteristics, notably the buyers age, lifestyle, occupation, economic
circumstances etc.
PSYCHOLOGICAL FACTORS: A person buying choice is also influenced by
four major psychological factors such as motivation, perception, learning belief and attitudes.
VALUE FORMAT STORE:-
With the changing of the time, the customers perception, preference and lifestyle also
changing. In this busy schedule the peoples are not have enough time to shopping at
different-different places. So customers are wanting to all the necessary things under a
roof with all facility. These value format stores provide all the necessary things and
facility under a roof. These store provide all FMCG, Durable, Vases, Garments, Skincare
and daily usages things with in a store with home delivery facility.
RATIONAL OF STUDY
The customers are only reason why we are in business, so satisfying them will ultimately make
our business more profitable. There is a need to highlight the importance of a customer service
climate in value format stores. Custmers feedback will help us not only identify the problem
areas but will also demonstrate to our customers that we care and are proactive in looking for
ways to improve the service that we provide. This will give the customers a chance to voice any
displeasure or come forward with truly constructive suggestions that could help our business.
The project helpful to know about the opportunity and threat available in the market for the
business and also help to improve in the present condition. This study gives me the chance to
learn about the consumer behavior.
RETAIL SECTOR
The Indian retail market, which is the fifth largest retail destination globally, has been ranked the
second most attractive emerging market for investment after Vietnam in the retail sector by AT
Kearney's seventh annual Global Retail Development Index (GRDI), in 2008. The share of retail
trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is
currently around 12 per cent, and is likely to reach 22 per cent by 2010.
India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing lifestyles, and favorable demographic
patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2007 to
amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. It has further been predicted that the retailing
industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5
billion.
Shopping in India have witnessed a revolution with the change in the consumer buying behavior
and the whole format of shopping also altering. Industry of retail in India which have become
modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and
sprawling complexes which offer food, shopping, and entertainment all under the same roof.
India retail industry is expanding itself most aggressively, as a result a great demand for real
estate is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city. It is expected that by 2010, India
may have 600 new shopping centers.
In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9%
annually. The branded food industry is trying to enter the India retail industry and convert Indian
consumers to branded food. Since at present 60% of the Indian grocery basket consists of non-
branded items.
India retail industry is progressing well and for this to continue retailers as well as the Indian
government will have to make a combined effort.
A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer
market is likely to grow four times by 2025. Commercial real estate services company, CB
Richard Ellis' findings state that India's retail market is currently valued at US$ 511 billion.
Banks, capital goods, engineering, fast moving consumer goods (FMCG), software services, oil
marketing, power, two-wheelers and telecom companies are leading the sales and profit growth
of India Inc in the fourth quarter of 2008-09. India continues to be among the most attractive
countries for global retailers. At US$ 511 billion in 2008, its retail market is larger than ever and
drawing both global and local retailers. Foreign direct investment (FDI) inflows as on January
2009, in single-brand retail trading, stood at approx. US$ 25.18 million, according to the
Department of Industrial Policy and Promotion (DIPP).
India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion
by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country
with high growth rates, consumer spending has risen sharply as the youth population (more than
33 percent of the country is below the age of 15) has seen a significant increase in its disposable
income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also,
organized retail, which accounts for almost 5 per cent of the market, is expected to grow at a
CAGR of 40 per cent from US$ 20 billion in 2007 to US$ 107 billion by 2013.
India has emerged the third most attractive market destination for apparel retailers, according to
a new study by global management consulting firm AT Kearney. It further says that in India,
apparel is the second largest retail category, representing 10 per cent of the US$ 37 billion retail
market. It is expected to grow 12-15 per cent per year. Apparel, along with food and grocery,
will lead the organized retailing in India. India has one of the largest numbers of retail outlets in
the world. A report by Images Retail estimates the number of operational malls to grow more
than two-fold, to cross 412, with 205 million square feet by 2010, and a further 715 malls to be
added by 2015, with major retail developments even in tier-II and tier-III cities in India.
Marks & Spencer Reliance India is planning to open 35 more stores over the next five
years, according to Mark Ashman, CEO of the company. The 51:49 joint venture
between UK’s Marks and Spencer and Reliance Retail Ltd already has 15 stores in India.
Future Group has been restructured to test the new rules on FDI under Press Notes 2, 3
and 4 issued in February 2009. The company plans to bring in up to US$ 148.7 million in
foreign investment. Although FDI is permitted only in single-brand retail and not
permitted in multi-brand retail businesses like Future Group's, the conglomerate has
created two layers of operations to take advantage of the three Press Notes that allow FDI
up to 49 per cent in operating-cum-investment companies as long as they are owned and
controlled by Indians.
Carrefour SA, Europe’s largest retailer, may start wholesale operations in India by 2010
and plans to set up its first cash-and-carry outlet in the National Capital Region.
Currently, Carrefour exports goods worth US$ 170 million from India to Europe, UAE,
Indonesia, Europe, Thailand, Singapore and Malaysia.
Jewellery manufacturer and retailer, Gitanjali Group and MMTC are jointly setting up a
chain of exclusive retail outlets called Shuddi–Sampurna Vishwas. The joint venture,
which plans to open around 60 stores across India by end of this year, will retail
hallmarked gold and diamond jewellery.
Mahindra Retail, a part of the US$ 6.7-billion Mahindra Group, plans to invest US$ 19.8
million by 2010 to step up its specialty retail concept 'Mom and Me'.
Policy Initiatives
100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee arrangements are
also permitted in retail trade.
51 per cent FDI is allowed in single-brand retailing.
Road Ahead
According to industry experts, the next phase of growth is expected to come from rural markets,
with rural India accounting for almost half of the domestic retail market, valued over US$ 300
billion. Rural India is set to witness an economic boom, with per capita income having grown by
50 per cent over the last 10 years, mainly on account of rising commodity prices and improved
productivity.
According to retail and consumer products division, E&Y India, basic infrastructure, generation
of employment guarantee schemes, better information services and access to funding are also
bringing prosperity to rural households. The rural market, product design will need to go beyond
ideas like smaller sizes (such as single use sachets) to create genuinely new products, according
to Ramesh Srinivas, national industry director (consumer markets), KPMG India.
According to the Investment commission of India, the overall retail market is expected to grow
from US$ 262 billion to about US$ 1065 billion by 2016, with organised retail at US$ 165
billion (approximately 15.5 per cent of total retail sales). India is expected to be among the top 5
retail markets in the world in 10 years.
According to new market research report by RNCOS titled, "Booming Retail Sector in India",
organised retail market in India is expected to reach US$ 50 billion by 2011.
Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent
from 2007 to 2015.
Rural market is projected to dominate the retail industry landscape in India by 2012 with
total market share of above 50 per cent.
Organised retailing of mobile handset and accessories is expected to reach close to US$
990 million by 2010.
Driven by the expanding retail market, third party logistic market is forecasted to reach
US$ 20 billion by 2011.
RETAIL SECTOR IN INDIA
Retail and real estate are the two booming sectors of India in the present times. And if industry
experts are to be believed, the prospects of both the sectors are mutually dependent on each
other. Retail, one of India’s largest industries, has presently emerged as one of the most dynamic
and fast paced industries of our times with several players entering the market. Accounting for
over 10 per cent of the country’s GDP and around eight per cent of the employment retailing in
India is gradually inching its way toward becoming the next boom industry.
As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex-
malls and huge complexes offer shopping, entertainment and food all under one roof, the concept
of shopping has altered in terms of format and consumer buying behavior, ushering in a
revolution in shopping in India. This has also contributed to large scale investments in the real
estate sector with major national and global players investing in developing the infrastructure
and construction of the retailing business. The trends that are driving the growth of the retail
sector in India are
Low share of organized retailing
Falling real estate prices
Increase in disposable income and customer aspiration
Increase in expenditure for luxury items
Another credible factor in the prospects
of the retail sector in India is the
increase in the young working
population. In India, hefty pay-packets,
nuclear families in urban areas, along
with increasing working-women
population and emerging opportunities
in the services sector. These key factors have been the growth drivers of the organized retail
sector in India which now boast of retailing almost all the preferences of life - Apparel &
Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel
and Leisure and many more. With this the retail sector in India is witnessing a rejuvenation as
traditional markets make way for new formats such as departmental stores, hypermarkets,
supermarkets and specialty stores.
The retailing configuration in India is fast developing as shopping malls are increasingly
becoming familiar in large cities. When it comes to development of retail space specially the
malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is studied
it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in
the Tier II cities. The government of states like Delhi and National Capital Region (NCR) are
very upbeat about permitting the use of land for commercial development thus increasing the
availability of land for retail space; thus making NCR render to 50% of the malls in India.
India is being seen as a potential
goldmine for retail investors from over
the world and latest research has rated
India as the top destination for retailers
for an attractive emerging retail market.
India’s vast middle class and its almost
untapped retail industry are key
attractions for global retail giants wanting to enter newer markets. Even though India has well
over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing
industry in the modern sense of the term. This presents international retailing specialists with a
great opportunity. The organized retail sector is expected to grow stronger than GDP growth in
the next five years driven by changing lifestyles, burgeoning income and favorable demographic
outline.
Another cap to the retailing industry in India is allowing 51% FDI in single brand outlet. The
government is now set to initiate a second wave of reforms in the segment by liberalizing
investment norms further. This will not only favor the retail sector develop in terms of design
concept, construction quality and providing modern amenities but will also help in creating a
consumer-friendly environment. Retail industry in India is at the crossroads but the future of the
consumer markets is promising as the market is growing, government policies are becoming
more favorable and emerging technologies are facilitating operations in India. And this upsurge
in the retail industry has made India a promising destination for retail investors and at the same
time has impelled investments in the real estate sector. As foreign investors cautiously test the
Indian Markets for investments in the retail sector, local companies and joint ventures are
expected to be more advantageously positioned than the purely foreign ones in the evolving
India's organized retailing industry.
Major Players in Retail Industry
India is now emerging as a hot spot for global retail chains. India, which held top spot on Global
Retail Development Index (GRDI), an annual study of retail investment attractiveness among 30
emerging markets conducted by management consulting firm A.T. Kearney, has yielded its
numero uno position in 2008 to Vietnam– among the fastest growing economies in the South
East Asia. In 2007, Vietnam was ranked fourth on the index. World’s largest retail chain wal-
mart is all set to launch.
List of current retail player’s in the market is quite long but following retail chains can be
considered to dominate a large portion of Indian organized retail sector.
Big Bazaar, Pantaloons, Shopper's Stop, Spencer’s, reliance, Central, Fabmall, Akbarally's
,Family Mart, Food world, Home Stop, Hyper Mart, Lifestyle International, Marks &
Spencer, Spinach, Subhiksha,Vishal Mega Mart, Westside, Big Apple, Sahara unique(shop
for Trend) and 6 ten retail store .
COMPANIES IN INDIAN RETAIL SECTOR
S.
NO.
Companies
1. Reliance Retail
2. Aditya Birla Group
3. Future Group’s
4. Pantaloons Retail India Ltd.
5. Bata India Ltd.
6. Shoppers Stop
7. Music World Entertainment Ltd.
FDI in Retail Sector
Retailing is the largest private sector industry in the world economy with the global industry size
exceeding $6.6 trillion and a latest survey has projected India as the top destination for retail
investors. And the further upsurge is anticipated in the retail sector as the Government of opened
up 51% FDI in single brand retail outlets. And as the government is in a process to initiate a
second phase of reforms, it is cautiously exploring the avenues for multi-brand segment. The
Government is seeking for these options keeping in view the existing social framework of India
and the will ensure that the entry of global retail giants do not displace the existing employment
in the retail business.
Industry experts are sensitive to the point that local markets have an edge over the retail investors
in India as they have unique advantages such as an understanding of local needs and extended
service like home delivery. As the FDI influence on the Indian retail sector sets in, the total size
of the retail trade is expected to grow extensively in the coming years and the consumer
segments patronizing the big malls will create frenzy for organized retailing predicting a growth
of 25-30 per cent per annum over the next decade. Moreover, Indian retail chains would get
integrated with global supply chains since FDI will bring in technology, quality standards and
marketing thereby, leading to new economic opportunities and creating more employment
generation.
Industry trends for retail sector indicate that organized retailing has major impact in controlling
inflation because large organized retailers are able to buy directly from producers at most
competitive prices. World Bank attributes the opening of the retail sector to FDI to be beneficial
for India in terms of price and availability of products as it would give a boost to food products,
textiles and garments, leather products, etc., to benefit from large-scale procurement by
international chains; in turn, creating jobs opportunities at various levels.
As foreign investors exploring their potentials in the retail sector, are keen on developing malls
in India, the size of organized retailing is expected to touch $30 billion by 2010 or approximately
10 per cent of the total. This has initiated market-entry announcement from some retailers and
has signaled to international retailers about India’s seriousness in promoting the sector. While
there are reports of international retailers like Wal-Mart analyzing business opportunities in
India; Reliance, the largest Indian conglomerate is investing $3.4 billion to become India’s
largest contemporary retailer. There are also reports of investments for ‘Hypercity Retail’ by
K.Raheja Group to establish 55 hypermarkets by 2015. All these factors will contribute in taking
Indian retail business to unexpected growth based on the consumer preference for shopping in
congenial environs and also availability of quality real estate.
GROWTH OF RETAIL COMPANIES IN INDIA
Growth of Retail Companies in India exhibits the boom in the retail industry in India over the
years. The increase in the purchasing power of the Indian middle classes and the influx of the
foreign investments have been encouraging in the Growth of Retail Companies in India.
Growth of Retail Companies in India
Growth of Retail Companies in India is still not yet in a matured stage with great potentials
within this sector still to be explored. Apart from the retail company like Nilgiri's of Bangalore,
most of the retail companies are sections of other industries that have stepped in the retail sector
for a better business. The Growth of Retail Companies in India is most pronounced in the metro
cities of India, however the smaller towns are also not lagging behind in this. The retail
companies are not only targeting the four metros in India but also is considering the second
graded upcoming cities like Ahmedabad, Baroda, Chandigarh, Coimbatore, Cochin, Ludhiana,
Pune, Trivandrum, Simla, Gurgaon, and others. The South Indian zone have adopted the process
of shopping in the supermarkets for their daily requirements and this has also been influencing
other cities as well where many hypermarkets are coming up day to day.
Reasons for the fast Growth of Retail Companies in India
The retail companies are found to be rising in India at a remarkable speed with the years and this
have brought a revolutionary change in the shopping attitude of the Indian customers. The
Growth of Retail Companies in India is facilitated by certain factors like -
· existing Indian middle classes with an increased purchasing power
· rise of upcoming business sectors like the IT and engineering firms
· change in the taste and attitude of the Indians
· effect of globalization
· heavy influx of FDI in the retail sectors in India
EMERGINE TRENDS IN INDIAN ORGANIZED RETAIL SECTOR
The emerging trends in the Indian organized retail sector would help the economic growth in
India.
There is a fantastic rise in the Indian organized retail sector in a very short period of time
between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India
has a chance of tremendous economic growth, both in India and abroad.
The emerging trends in the Indian organized retail sector are also adding up to the
development of the Indian organized retail sector. The relaxation by the government on
regulatory controls on foreign direct investments has added to the process of the growth of the
Indian organized retail sector.
The infrastructure of the retail sector will evolve radically in the recent future. The emergence
of shopping malls are increasing at a steady pace in the metros and there are further plans of
expansion which would lead to 150 new ones coming up in India by 2008. As the count of super
markets is going up much faster than rate of growth in retail sector, it is taking the lions share in
food trade.
The growth of the Indian organized retail sector is anticipated to be heavier than the growth of
the gross domestic product. Alterations in people's lifestyle, growth in income levels, and
encouraging conventions of demography are proving favorable for the new emerging trends in
the Indian organized retail sector.
The success of this retail sector would also lie in the degree of penetration into the lower income
strata to tap the possible customers in the lowest levels of society. The demands of the buyers
would also be enhanced by more access to credit facilities.
With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a
transformation. At present the Foreign Direct Investments(FDI) is not encouraged in the Indian
organized retail sector but once the TNC'S get in they inevitably try to oust their Indian
counterparts. This would be challenging to the retail sector in India.
The trends to follow in the future:
The Indian Organized retail sector will grow up to 10% of total retailing by 2010.
No one single format can be assumed as there is a huge difference in cultures regionally.
The most encouraging format now would be the hypermarts.
The hypermart format would be further encouraged with the entry of the TNCs.
SCOPE OF THE INDIAN RETAIL MARKET
The scope of the Indian retail market is immense for this sector is poised for the highest growth
in the next 5 years. The India retail industry contributes 10% of the country’s GDP and its
current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the
fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005.
The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year
2010. There are under construction at present around 325 departmental stores, 300 new malls,
and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian
retail market. SS
The growth of scope in the Indian retail market is mainly due to the change in the consumers
behavior. For the new generation have preference towards luxury commodities which have been
due to the strong increase in income, changing lifestyle, and demographic patterns which are
favorable.
The scope of the Indian retail market have been seen by many retail giants and thats the reason
that many new players are entering the India retail industry. The major Indian retailers are:
Pantaloons Retail India Ltd
Shoppers Stop
Bata India Ltd
Music World Entertainment Ltd
Judging the scope for growth in the India retail industry many global retail giants are also
entering the Indian retail market. They are :
Tesco
Metro AG
Wal- Mart
The scope for growth in the Indian retail market is seen mainly in the following cities:
Mumbai
Delhi
Pune
Ahmedabad
Bangalore
Hyderabad
Kolkata
Chennai
The scope of the Indian retail market is very vast. And for it to reach its full potential the
government and the Indian retailers will have to make a determined effort.
CHALLENGS FACING THE INDIAN ORGANIZED
RETAIL SECTOR
The challenges facing the Indian organized retail sector are various and these are stopping the
Indian retail industry from reaching its full potential. The behavior pattern of the Indian
consumer have undergone a major change. This have happened for the Indian consumer is
earning more now, western influences, women working force is increasing, desire for luxury
items and better quality. He now wants to eat, shop, and get entertained under the same roof. All
these have lead the Indian organized retail sector to give more in order to satisfy the Indian
customer.
The biggest challenge facing the Indian organized retail sector is the lack of retail space. With
real estate prices escalating due to increase in demand from the Indian organized retail sector, it
is posing a challenge to its growth. With Indian retailers having to shell out more for retail space
it is effecting their overall profitability in retail.
Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian
retailers have difficulty in finding trained person and also have to pay more in order to retain
them. This again brings down the Indian retailers profit levels.
The Indian government have allowed 51% foreign direct investment (FDI) in the India retail
sector to one brand shops only. This have made the entry of global retail giants to organized
retail sector in India difficult. This is a challenge being faced by the Indian organized retail
sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the
organized retail sector in India indirectly through franchisee agreement and cash and carry
wholesale trading. Many Indian companies are also entering the Indian organized retail sector
like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing stiff
competition from these global retail giants. As a result discounting is becoming an accepted
practice. This too bring down the profit of the Indian retailers. All these are posing as challenges
facing the Indian organized retail sector.
The Hidden Challenges
Modern retailing is all about directly having "first hand experience" with customers, giving them
such a satiable experience that they would like to enjoy again and again. Providing great
experience to customers can easily be said than done. Thus, challenges like retail differentiation,
merchandising mix, supply chain management and competition from supplier's brands are the
talk of the day. In India, as we are moving to the next phase of retail development, each
endeavor to offer experiential shopping. One of the key observations by customers is that it is
very difficult to find the uniqueness of retail stores. The problem: retail differentiation.
The next problem in setting up organized retail operations is that of supply chain logistics. India
lacks a strong supply chain when compared to Europe or the USA. The existing supply chain has
too many intermediaries: Typical supply chain looks like:- Manufacturer - National distributor -
Regional distributor - Local wholesaler - Retailer - Consumer. This implies that global retail
chains will have to build a supply chain network from scratch. This might run foul with the
existing supply chain operators. In addition to fragmented supply chain, the trucking and
transportation system is antiquated. The concept of container trucks, automated warehousing is
yet to take root in India. The result: significant losses/damages during shipping.
Merchandising planning is one of the biggest challenges that any multi store retailer faces.
Getting the right mix of product, which is store specific across organization, is a combination of
customer insight, allocation and assortment techniques.
The private label will continue to compete with brand leaders. So supplier's brand will take their
own way because they have a established brand image from last decades and the reasons can be
attributed to better customer experience, value vs. price, aspiration, innovation, accessibility
of supplier's brand.
FORMATS IN INDIAN ORGANIZED RETAIL SECTOR
This site provides detail information on Formats in Indian Organized Retail Sector. The site also
focuses on the current structure of Indian retail industry.
Formats in Indian Organized Retail Sector and its subsequent successful operation is credited to
India Economic System reform earnest in July 1991. Formats in Indian Organized Retail Sector
is at its nascent stage. The Central Government have ultimately realized the need to remove the
insulation out of the Indian retail sector. Skeptics opines opening up Indian retail industry would
jeopardize way of income for the poor small retailers. In fact, the actual story is quite heartening
for the small time retailer and its vendors.
It is the second fastest growing economy of the world
Potential to be the third largest economy in terms of GDP in next few years
It ranks high amongst the top 10 FDI destinations of the world
Fastest growing tourist market in Asia
World bank states, India to be world’s second largest economy after China by the year
2050
Stable and investor friendly Central Government at the helm of affairs
Introduction of Value Added Tax or VAT and tax reforms
High degree of professionalism and corporate ethics
Excellent Investment opportunities in Indian retail sector and in allied sectors; sure and
high returns on investments
To invest US $130 billion for the development of infrastructure, by year 2010
To attract US $ 10 billion FDI for infrastructure development by the end of year 2008
Bullish stock markets
Hordes of foreign investors are thronging in to invest in Indian retail markets
Highly educated English speaking young workforce
Vibrant and multi cultured cities
Huge opportunity exists, especially in semi-rural and rural areas
Till date the second largest employer after agriculture sector, for the huge semi-skilled
Indian population
Offers highest shop density in the whole world
Having almost 1,20,000 shops, across the length and breadth of the country
In a nascent stage of development as an organized industry
Formats in Indian Organized Retail Sector -
Supermarkets
Hypermarkets
Department Stores
Modern format individual retailers
Shopping malls
Specialty Chains
INTRODUCTOIN OF RELIACE INDUSTARY :-
Reliance Industries Limited (RIL) is India’s largest private sector company on all major
financial parameters with a turnover of Rs. 1,39,269 crore (US$ 34.7 billion), cash profit of Rs.
25,205 crore (US$ 6.3 billion), net profit (excluding exceptional income) of Rs. 15,261 crore
(US$ 3.8 billion) and net worth of Rs. 81,449 crore (US$ 20.3 billion) as of March 31, 2008.
RIL is the first private sector company from India to feature in the Fortune Global 500 list of
‘World’s Largest Corporations’ and ranks 103rd amongst the world’s Top 200 companies in
terms of profits. RIL is amongst the 30 fastest climbers ranked by Fortune. RIL features in the
Forbes Global list of the world’s 400 best big companies and in the FT Global 500 list of the
world’s largest companies. RIL ranks amongst the ‘Worlds 25 Most Innovative Companies’ as
per a list compiled by the US financial publication-Business Week in collaboration with the
Boston Consulting Group.
RELIANCE RETAIL LIMITED:-Reliance Retail Limited (RRL), a subsidiary of Reliance Industries Limited opened its first retail
store in November 2006 and today operates over 800 stores in 60 cities, spanning 14 states with
over 3.8 million Sq ft. RRL is a multi-format retailer that operates Reliance Fresh – a
neighborhood store concept, Reliance Digital – a consumer durables and information technology
concept, Reliance Mart - a hyper market concept, Reliance Trends - an apparel specialty concept,
Reliance Wellness – a health, wellness & beauty concept , iStore by Reliance Digital- an Apple
specialty store concept, Reliance Footprint -a footwear concept, Reliance Jewels – a jewellery
concept, Reliance Time-Out- a books, music & entertainment concept, Reliance Super- a
Minimart concept, Reliance Living Homeware – a household utilities specialty store concept,
Reliance Home Kitchen, a kitchen’s solution specialty store format and Reliance AutoZone – an
automotive specialty concept.
Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, we are
aggressively working on introducing a pan-India network of retail outlets in multiple formats. A
world class shopping environment, state of art technology, a seamless supply chain
infrastructure, a host of unique value-added services and above all, unmatched customer
Experience, is what this initiative is all about.
The retail initiative of Reliance will be without a parallel in size and spread and make India
proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the
Indian consumer, both in quality and quantity, will be an integral feature of this project. By
creating value at all levels, we will actively endeavor to contribute to India's growth.
The project will boast of a seamless supply chain infrastructure, unprecedented even by world
standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch
almost every Indian customer and supplier.
To provide western-style retail facility “Reliance Mart” will sell a range of 95,000 types of items
includes consumer durable products (clothing, stationery, toys, medicines, home furnishings,
footwear etc), FMCG, IT, automotive accessories, apparel accessories, fine jewelry and fashion
jewelry under one roof. For this Reliance will set up a series of 500 hypermarkets across the
country by 2010 while the recent next hypermarket will be established in Jamnagar in Gujarat
and in the NCR by next month with a planning to open 30 such marts by the end of this year
includes six in National Capital Delhi, five each in Punjab and Andhra Pradesh, three in Gujarat
and two in Bangalore, informed RIL president and CEO (Operation and Strategy) Raghu Pillai
on the occasion of first hypermarket in Ahmedabad on Monday.
They will be better than the best in the market. We would ensure that our products would be
cheapest on the consumers wallet and would match the lowest price in the market with the best
quality as benchmark”, said Pillai. Reliance has set up the first hypermarket in 1,65,000 sq ft area
worth Rs. 4.25 crore approximately for selling groceries to general merchandising in Reliance
Mart.
Reliance had announced last year to invest Rs. 25,000 crore in its retail store and expected to
spend Rs. 2,500-3,000 per square fit for establishing 500 hypermarkets in 784 towns by next five
years. Since then Reliance has been looking for deserving lands across the country to fulfill its
dream project.
Mukesh Ambani, the Chairman and Managing Director of Reliance Mukesh Dhirubhai Group
said, “Organized retail has the potential to trigger socio-economic transformation on an
unprecedented scale in our country and will bring about enormous spin-off benefits to the Indian
economy and its various constituents. The launch of ‘Reliance Mart’ is yet another step by
Reliance Retail towards providing an international shopping experience to all our customers at
unmatched affordability, guaranteed quality and choice of products and services”. He was
speaking on inauguration ceremony of first ever hypermarket in Ahmadabad.
Reliance will provide some innovative and unique services to the shoppers such as tailoring,
shoe repair, watch repair, a photo shop, gifting services and laundry services all within the store
under one roof. The facility of owned fresh bakery service will be all time available under brand
name of ''hot off the oven''.
Vimal, a well-known fabric brand of Reliance Industries Ltd. will also relaunch its products that
will have a store within its hypermarkets and will offer custom-tailoring services, said Parimal
Nathwani, the Group President of Corporate Affairs.
Besides this, Reliance Retail is building a vigorous and state-of-the-art supply chain
infrastructure in parallel to cover the entire country along with setting up its own cold storage
chain discretely. “It is expected to generate direct employment for half-a-million people and
indirect employment to two million”, said Pillai.
To woo the customers, Reliance Mart will keep on offering versatile offers to all its customers
such as ‘Reliance One’, a common membership and loyalty programme across all its formats,
which follows the philosophy of 'Earn Anywhere, Spend Anywhere'. ‘Reliance Mart’ will also
provide easy and attractive finance options, including zero percent financing for the purchases on
some selected products.
PRODUCTS OF RELIANCE STORES
FMCG
Reliance Atta,Reliance premium white sugar, Reliance sugar fese store ,Reliance flour
(basen),Reliance dry fruits, Reliance grocery, Reliance whole wheat, Reliance long grain rice,
Reliance wheat lokvan,Reliance Iodized Salt, Reliance Pulses (like moong, arhad, rajma etc)
Garments
Reliance Men’s Wear, Reliance Women’s Wear, Reliance Undergarments, Reliance gravity
socks, T-Shirts Jeans, Tie, Reliance cotton plus shirts range.
Foot Wear
Reliance Mon Mn sport shoes, Reliance Zig Mn Casuals, Reliance Hia Mn Casuals, Reliance Zig
Zac casuals, Reliance Mon Mn leather shoes, Reliance Mon Mn kids range.
RELIANCE FRESH
Company Overview: Reliance Fresh
Date of Establishment 2006
Revenue Not Available
Market Cap Rs.370,687.7crores (Reliance Industries
Ltd.)
Address Reliance Industries Limited, Makers Chambers - IV,
Nariman Point, Mumbai 400 021, Maharashtra, India
Branches Chennai, New Delhi, Hyderabad, Jaipur, Mumbai,
Chandigarh, Ludhiana, Orissa, UP and West Bengal
Management Team Mukesh D. Ambani - Chairman & Managing Director
Nikhil R. Meswani - Executive Director
Hital R. Meswani - Executive Director
H.S.Kohli- ExecutiveDirector
RamniklalH.Ambani
MansinghL.Bhakta
YogendraP.Trivedi
Dr.D.V.Kapur
M.P.Modi
S.Venkitaramanan
Prof.AshokMisra
Prof.DipakCJain
Dr. Raghunath Anant Mashelkar
Overview Reliance Fresh falls under Reliance Industries. It is the
first retail venture of the Group. The company offers fresh
fruits and vegetables, staples, groceries, fresh juice bars,
FMCG products and dairy products and non-vegetarian
items. Reliance Industries has invested nearly Rs. 3,000
crores to expand the Reliance Fresh stores. Reliance Fresh
directly buys stock from the farmers to cut down on the
wastage. The stores work on The Ranger Format which
means selling of fresh vegetables to the road sellers.
Reliance Retail has signed a pact with Apple for the
establishment of a chain of Apple Specialty Stores
branded as iStore, starting with Bangalore
Mukesh Ambani’s Reliance Industries Ltd has finally launched Reliance Fresh, its first retail
venture in Hyderabad. RIL is planning to launch 11 more retail stores in the city. You can find
fresh fruits, vegetables dal, atta, rice as well the company’s in-house products too.
RIL is in planning to set up Ranger Farms outlets to serve fresh vegetables too in the streetside.
It will open from 2 am to 9 am. Delhi and Mumbai are the next destination for the company’s
new venture. RIL has already announced to invest Rs 25,000 crore over the next five years in
the retail business with its 4,000 retail outlets in different cities.
The next venture in retail will be Feel Fresh Plus in which customers could find fruits and
vegetables as well as apparel, consumer electronics, FMCG items and medicines too.
According to Retail consultancy Technopak Advisors, the size of India’s retail industry is
about $300 billion and it will go to $427 billion by the end of 2010.
Reliance Fresh retail supermart opens in Hyderabad
Reliance Fresh falls under Reliance Industries. It is the first retail venture of the Group. The
company offers fresh fruits and vegetables, staples, groceries, fresh juice bars, FMCG products
and dairy products and non-vegetarian items. Reliance Industries has invested nearly Rs. 3,000
crores to expand the Reliance Fresh stores. Reliance Fresh directly buys stock from the farmers
to cut down on the wastage. The stores work on The Ranger Format which means selling of fresh
vegetables to the road sellers. Reliance Retail has signed a pact with Apple for the establishment
of a chain of Apple Specialty Stores branded as iStore, starting with Bangalore
Mukesh Ambani’s Reliance Industries Ltd has launched Reliance Fresh, its first retail venture in
Hyderabad. RIL is planning to launch 11 more retail stores in the city. You can find fresh fruits,
vegetables dal, atta, rice as well the company’s in-house products too.
RIL is in planning to set up Ranger Farms outlets to serve fresh vegetables too in the streetside.
It will open from 2 am to 9 am. Delhi and Mumbai are the next destination for the company’s
new venture. RIL has already announced to invest Rs 25,000 crore over the next five years in the
retail business with its 4,000 retail outlets in different cities.
The next venture in retail will be Feel Fresh Plus in which customers could find fruits and
vegetables as well as apparel, consumer electronics, FMCG items and medicines too.
According to Retail consultancy Technopak Advisors, the size of India’s retail industry is about
$300 billion and it will go to $427 billion by the end of 2010.
Hyderabad on Friday saw the new dawn of a new revolution. Reliance Industries Ltd?s dreams
of a retail revolution got kick-started in the Andhra Pradesh capital when its Reliance Fresh
supermart opened its doors to the world. And, several hundred customers flocked to try out what
all are on offer on the first day.
The inauguration event saw customers cut red ribbons to open the store widely believed as
Reliance Industries Ltd?s first in the series of several thousand stores that are to come. Following
the first, the company opened 10 more on Friday as a first step towards creating a mega retail
chain across the country.
The Reliance Fresh supermarket chain is RIL?s Rs 25,000 crore venture and it plans to add more
stores across different geographies, and eventually have a pan-India footprint by year 2011.
The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-vegetarian products.
Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job
opportunities to a million people, according to the company. The company also has plans to train
students and housewives in customer care and quality services for part-time jobs.
Currently, selling through company-owned stores currently totals just $8 billion in India.
Industry estimates say that the country?s retail industry is worth $300 billion, that is about Rs
13,50,000 crore. This stands a chance to blossom to $427 billion in the next four years.
Organized retail accounts for just over Rs 35,000 crore. Reliance Fresh bids to tap the potential
for organised retail in the country.
The opening of Reliance retail chains closely follows the moves of global players like Wal-Mart
Stores Inc and Metro AG seeking to open shop here in the country. With Reliance announcing
plans to expand, and that too rapidly, the retail scenario in the country is all set to take off in a
big way.
REVIEW OF LITERATURE
Customers are the very essential for the each and every organization. To make the new
customers and retain the customers these organization do different-different type of research. On
the base of this research these companies got the feedback of the customers and make the proper
improvement as per the customer needs.
Indian retail market is very vast and it growing with very rapid speed. India retail industry is the
largest industry in India, with an employment of around 8% and contributing to over 10% of the
country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong
income growth, changing lifestyles.
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2007 to
amount US$ 320 billion and is increasing at a rate of 5% yearly.
To grape all these opportunity presented by the retail sector, all the organization related to this
sector attract towards this and want to increase their market share with the growth of retail
industry. For this these organization do research related to the customer behavior, customer
centricity at value format store and post purchase behavior of the customers. Also try to know
the total shopping experience of the customers with the organization.
On the base of this research the organization make the proper improvement on their retail outlets
as per the customers need and demand. This research also helpful to monitor and measure the
customers need and perception. So the voices of the customers are very essential for the
business.
With the change of the time the way of retailing also changes. In old time the format of retailing
was traditional like, general store, departmental store and stall etc. They were rarely did any
research to know about their customers need and perception. But now the trend is changing and
the many big brand name companies enter in this business like Reliance Retail, Pantaloons Retail
India Ltd., Aditya Birla Group, Bata India Ltd., Shoppers Stop, Music World Entertainment Ltd.
etc. These companies want to capture more market share and increase their range of the
customers, so these companies time to time do the research related to the customer’s behavior
and centricity at value format store.
IN RELIANCE RETAIL LTD.
Reliance Retail is one of the big and branded retail company in the India. It has speared there
business in all over India. To improve their operation and satisfy their customers Reliance
introduce with new concepts and projects. Operation “NAMESTA” is the part of this concept.
RESEARCH METHODOLOGY
OBJECTIVE
The main objective of this project is to take the customers feedback through a questioner and use
this feedback to do the proper improvement in the stores as per the customers wants.
1. To interact with the customers and document the feedback in prescribed format.
2. To know the additional comments or suggestion of the customers.
3. TO make the improvement on the base of the customers feedback and suggestions.
Scope
4. This study will be helpful to know about the customer’s behavior about the value format
stores.
5. This study helps me
6. 1. This study helpful to retain the customers.
7. 2. To know about the opportunity and threat available in the market.
8. 3. To know about the consumers behavior.
9. 4. To know the improvement need in the stores, according to the customer demand.
10. 5. Identifying the factors influencing purchase decisions.
11. 6. To know about the strategy of the company.
12. 7. To know about the operation do within the stores.
Meaning:
Research Methodology is a way to systematically study & solve the research problems. He must
clearly state the methodology adopted in conducting the research so that it may be judged by the
reader whether the methodology of work done is sound or not.
Research in common parlance refers to a search for knowledge. It is a scientific and systematic
search for pertinent information on a specific topic. In fact, research is an art of scientific
investigation. It is often referred as voyage for discovery.
Research methodology is a way to systematically solve the research problem. It is a science of
studying how research is done scientifically. In it, we study the various steps that are generally
adopted by a researcher in studying a research problem along with the logic behind them .when
we talk of research methodology, we not only talk of research methods but also consider the
logic behind the methods we use in context of our research study and explain why we are using a
particular method or technique
Research Design
Research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure. Keeping in
mind the objective of the study the research design kept is exploratory. It allows the study of
specific concerns and theory. The researcher will be consulted various magazines, newspapers,
books, and reference materials, based on which a pre test was conducted. A pre test is essential to
have an idea of the most preferred brand in the urban market based on which the final
questionnaire will be prepared.
The research will be carried out by collection of data through interviews conducted at the
personal interview. To meet the required objectives the instrument will be used for collecting
data was questionnaire method. Questionnaire is defined as a general term to include all
techniques of data collection in which each person is asked to respond to the same set of
questions in a predetermined order. Descriptive research using opinion questionnaires will enable
researcher to identify and describe the consumer preferences and needs.
Data Collection
Primary Data will be collected through structured questionnaire. Secondary data sources such as
use of the books, research journals, websites and commercial reports published by well-known
authors in the similar area have been analyzed. However, these are the only important secondary
sources that were found to be of any relevance to the research area.
Research Instrument: - Questionnaire and Personal Interview
Sampling
Simple random sampling
Sample Size
550 customers
Tools and Techniques
Word, Excel
Store Observation Report – OPERATION NAMASTE
Name of the Trainee:
For the Day:
Store-1 Store-2
Name/Code Name/Code
Store Cleanliness
Entrance
Grooming and Service
Total Score
Any other comments
Reliance Retail Customer Service Questionnaire
Store Name/Code:
Date:
Name of the Trainee:
1) How often do you visit the store?
a) Daily b) Weekly c) Monthly d) 1st time visitor
2) What brings to you the store?
a) Price and Promotion b) Service c) Quality
d) Convenience e) Other …………….
On a scale of 1-4, please mark the following question.
1- Strongly Agree 2- Agree 3- Disagree 4- Strongly Disagree
3) How do you rate the entrance 1 2 3 4
4) How do you rate the cleanliness of the store 1 2 3 4
5) How do you rate the price and promotion in store 1 2 3 4
6) How do you rate the freshness of fruits/vegetables 1 2 3 4
7) How do you rate the service provided by the staff 1 2 3 4
8) Did you get all you were looking for? (Yes/No) If No………….
9) Were you given correct receipt and exact change? (Yes/No)
10) How much time did you spend in queue for billing…..Minutes
11) Any specific observation/suggestions you like to share something with us
…………………………………………………………………………………………………
…………………………………………………
12) Your overall shopping experience with Reliance
a) Excellent b) Good c) Average d) Poor
Name and signature of the customer Contact No.
Male/Female
Age Group a) Less than 25 b) 25-40 c) 40-60 d) Above 60
Income Level a) Less than 2 lacs b) 2-5 c) 5-8 d) Above 8 lacs
DATA ANALYSIS AND FINDINGS
1) How often do you visit the store?
b) Daily b) Weekly c) Monthly d) 1st time visitor
2) What brings to you the store?
b) Price and Promotion b) Service c) Quality
d) Convenience e) Other …………….
On a scale of 1-4, please mark the following question.
1-StronglyAgree 2- Agree 3- Disagree 4- Strongly Disagree
3) How do you rate the entrance 1 2 3 4
4) How do you rate the cleanliness of the store 1 2 3 4
5) How do you rate the price and promotion in store 1 2 3 4
On a scale of 1-4, please mark the following question.
1- Strongly Agree 2- Agree 3- Disagree 4- Strongly Disagree
6) How do you rate the freshness of fruits/vegetables 1 2 3 4
7) How do you rate the service provided by the staff 1 2 3 4
8) Did you get all you were looking for? (Yes/No) If No………….
9) Were you given correct receipt and exact change? (Yes/No)
10) How much time did you spend in queue for billing…..Minutes
11) Your overall shopping experience with Reliance
a) Excellent b) Good c) Average d) Poor
SUGGESTIONS
On the base of the project we got the lot of suggestion from the customer’s side and lot of
suggestion and observation we observe during the project time.
According to the project, Reliance Fresh have the need of improvement into their store.
Customers want to more facility in the store with good service and affordable price. According to
the customers Reliance should have to ensure the timely availability of the product or items in
the store and also increase the number of variety of the various items specially skincare and
cosmetics products. Offer should be available with the costly items and some discount allow to
their regular customers. The price of the some products should be less than the local market price
or some additional offer available. Particular task distribute to the particular employee of the
store and increase the no. of cash counter and cashier also. Display the list of the available items
on the each counter, this is helpful for the customers in time saving and make the proper display
of the all items. These are the some suggestion/observation that will be good for Reliance Fresh
to improve their operation.
I got the many suggestion from the customer side and many suggestion I find from my own
observation.
Reliance should be available the items in the store those are affordable for the lower
middle class also.
For the quantity and price sensitive customers reliance should provide the some price
discount and extra quantity offers also.
For the female customers reliance promote itself as a family woman store.
LIMITATIONS
We have to interact only 8-10 customers daily.
Customers are not ready to give the feedback.
Some time customers not have enough time to give the feedback.
Some time customers are uneducated so they do not understand what we are asking.
BIBLIOGRAPHY
WEB: - a) www.google.com
1. BOOKS: - Marketing Management, Twelfth Edition. A South Asian Perspective, by
Philip Kotler, K.L.Keller, A.Koshy, M.Jha.
2. Marketing Research, Third Edition by G.C.Beri
3. Marketing Management, Third Edition by Ranjan Saxena
4. Marketing Research, First Edition by S.L.Gupta