dissertation project
88,422 views
78 slides
Mar 23, 2012
Slide 1 of 78
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
About This Presentation
No description available for this slideshow.
Slide Content
A Dissertation Report Titled “A Study on Measuring Customer
Satisfaction at ‘Reliance Fresh’ Retail Outlets in Bangalore”
Submitted in Partial Fulfillment of the Requirements of
Bangalore University for the Award of the Degree of
Master of Business Administration
Submitted By
Ranjan Kumar
Reg. No: 09SKCMA059
Under the Guidance of
Prof. K. Ranganathan
EMPOWERING MINDS
Acharya Institute of Management & Sciences
1
st
Cross, 1
st
Stage, Peenya Industrial Area
Bangalore – 560058
2009 – 2011
1
Satisfaction at ‘Reliance Fresh’ Retail Outlets in Bangalore”
Submitted in Partial Fulfillment of the Requirements of
Bangalore University for the Award of the Degree of
Master of Business Administration
Submitted By
Ranjan Kumar
Reg. No: 09SKCMA059
Under the Guidance of
Prof. K. Ranganathan
EMPOWERING MINDS
Acharya Institute of Management & Sciences
1
st
Cross, 1
st
Stage, Peenya Industrial Area
Bangalore – 560058
2009 – 2011
1
Declaration
I, Ranjan Kumar hereby declare that this dissertation titled, “A study on measuring
customer satisfaction at ‘Reliance Fresh’ retail outlets in Bangalore.” is record of
original and independent study carried out by me under the guidance of Prof. K.
Ranganathan, Acharya Institute of Management and Sciences, Bangalore, submitted in
the partial fulfillment of the requirement of the Bangalore University, for the award of
degree of Masters of Business Administration.
I further declare that this report prepared is the original study conducted by me and has not
been submitted earlier for the award of any other Degree / Diploma by Bangalore University
or any other University.
Place: Bangalore Ranjan Kumar
Date:
2
I, Ranjan Kumar hereby declare that this dissertation titled, “A study on measuring
customer satisfaction at ‘Reliance Fresh’ retail outlets in Bangalore.” is record of
original and independent study carried out by me under the guidance of Prof. K.
Ranganathan, Acharya Institute of Management and Sciences, Bangalore, submitted in
the partial fulfillment of the requirement of the Bangalore University, for the award of
degree of Masters of Business Administration.
I further declare that this report prepared is the original study conducted by me and has not
been submitted earlier for the award of any other Degree / Diploma by Bangalore University
or any other University.
Place: Bangalore Ranjan Kumar
Date:
2
EMPOWERING MINDS
Acharya Institute of Management & Sciences
Peenya, Bangalore – 560058
Certificate from the Guide
Certified that this dissertation titled, “A study on measuring customer satisfaction at
‘Reliance Fresh’ retail outlets in Bangalore” is record of original and independent study
carried out by Ranjan Kumar of 4
th
Semester MBA under my guidance.
This report prepared by him is original and has not formed a basis for the award of any other
Degree / Diploma by Bangalore University or any other University.
Place: Bangalore Prof. K. Ranganathan
Date:
3
Acharya Institute of Management & Sciences
Peenya, Bangalore – 560058
Certificate from the Guide
Certified that this dissertation titled, “A study on measuring customer satisfaction at
‘Reliance Fresh’ retail outlets in Bangalore” is record of original and independent study
carried out by Ranjan Kumar of 4
th
Semester MBA under my guidance.
This report prepared by him is original and has not formed a basis for the award of any other
Degree / Diploma by Bangalore University or any other University.
Place: Bangalore Prof. K. Ranganathan
Date:
3
EMPOWERING MINDS
Acharya Institute of Management & Sciences
Peenya, Bangalore – 560058
Certificate
Certified that this dissertation titled, “A study on measuring customer satisfaction at
‘Reliance Fresh’ retail outlets in Bangalore” is record of original and independent study
carried out by Ranjan Kumar of 4
th
Semester MBA under the guidance of Prof. K.
Ranganathan.
This report prepared by him is original and has not formed a basis for the award of any other
Degree / Diploma by Bangalore University or any other University.
Prof. K. Ranganathan Dr. Kerron G Reddy
Department of MBA Principal and CEO
Place: Bangalore Place: Bangalore
Date: Date:
Certificate of Approval
4
Acharya Institute of Management & Sciences
Peenya, Bangalore – 560058
Certificate
Certified that this dissertation titled, “A study on measuring customer satisfaction at
‘Reliance Fresh’ retail outlets in Bangalore” is record of original and independent study
carried out by Ranjan Kumar of 4
th
Semester MBA under the guidance of Prof. K.
Ranganathan.
This report prepared by him is original and has not formed a basis for the award of any other
Degree / Diploma by Bangalore University or any other University.
Prof. K. Ranganathan Dr. Kerron G Reddy
Department of MBA Principal and CEO
Place: Bangalore Place: Bangalore
Date: Date:
Certificate of Approval
4
This dissertation report of Ranjan Kumar titled “A study on measuring customer
satisfaction at ‘Reliance Fresh’ retail outlets in Bangalore” is approved in quality and
form an has been found to be fit for the Partial Fulfillment of the Requirements of Bangalore
University for the Award of Degree of Master of Business Administration.
Internal Guide External Examiners
Name: Prof. K. Ranganathan 01) Name:
Signature: Signature:
Date: Date:
02) Name:
Signature:
Date:
Acknowledgement
5
satisfaction at ‘Reliance Fresh’ retail outlets in Bangalore” is approved in quality and
form an has been found to be fit for the Partial Fulfillment of the Requirements of Bangalore
University for the Award of Degree of Master of Business Administration.
Internal Guide External Examiners
Name: Prof. K. Ranganathan 01) Name:
Signature: Signature:
Date: Date:
02) Name:
Signature:
Date:
Acknowledgement
5
The toughest of endeavors in the world is not possible without the support of a helping hand
which guides and motivates a person to take on any challenge head on. Inputs from such
helping hands are always like very essential because more often or not certain mistakes
which go unnoticed from our eyes.
I am thankful to Dr. Kerron Reddy, Principal and CEO of Acharya Institute of
Management and Sciences, who had provided all the required facilities to carry out the
dissertation project work and nurturing my skills to execute the requirements.
I am heartily thankful to my guide Prof. K. Ranganathan, Acharya Institute of
Management and Sciences, whose encouragement, guidance and support from the initial to
the final level enabled me to develop an understanding of the subject. I offer my regards and
blessings to all my Professors of AIMS and all the people who supported me in any respect
during the completion of the dissertation project.
Last but not the least I thank my dear parents, teachers and friends who have been source of
support, strength, inspiration and encouragement for whatever I am today.
Ranjan Kumar
Date:
6
which guides and motivates a person to take on any challenge head on. Inputs from such
helping hands are always like very essential because more often or not certain mistakes
which go unnoticed from our eyes.
I am thankful to Dr. Kerron Reddy, Principal and CEO of Acharya Institute of
Management and Sciences, who had provided all the required facilities to carry out the
dissertation project work and nurturing my skills to execute the requirements.
I am heartily thankful to my guide Prof. K. Ranganathan, Acharya Institute of
Management and Sciences, whose encouragement, guidance and support from the initial to
the final level enabled me to develop an understanding of the subject. I offer my regards and
blessings to all my Professors of AIMS and all the people who supported me in any respect
during the completion of the dissertation project.
Last but not the least I thank my dear parents, teachers and friends who have been source of
support, strength, inspiration and encouragement for whatever I am today.
Ranjan Kumar
Date:
6
Chapter 01
Introduction
Topic: “A study on measuring customer satisfaction at ‘Reliance Fresh’
retail outlet in Bangalore”
7
Introduction
Topic: “A study on measuring customer satisfaction at ‘Reliance Fresh’
retail outlet in Bangalore”
7
1.1 INTRODUCTION
Customer satisfaction is a measure of how product and services supplied a company can meet
the customer expectations. Customer satisfaction is still one of the single strongest predictors
of customer retention. It’s considerably more expensive to attract new customers than it is to
keep old once happy. In a climate of decreasing brand loyalties, understanding customer
service and measuring customer satisfaction are very crucial. There is obviously a strong link
between customer satisfaction and customer retention. Customer perception of service and
quality of product will determine the success of the product or service in the market.
With better understanding of customer perceptions, companies can determine the customers
need e actions required to meet the can customer’s needs. They can identify their own
strengths and weaknesses, where they stand in comparison to their competitors, chart out path
future progress and improvement. Customer satisfaction measurement helps to promote an
increased focus on customer outcomes and stimulate improvements in the work practices and
processes used within the company.
In a sharp contrast to the retail sector in developed economies, retailing in India – though
large in terms of size - is highly fragmented and unorganized. With close to 12 million retail
outlets the country has one of the highest retail densities worldwide. Retailing like rest of the
world retailing is one of the largest industries in India with sales amounting to about $350
billion, but organized retail is estimated at only US$ 8 billion. It is country’s largest source of
employment after agriculture, has deepest penetration into rural India and accounts to about
10-11 % of’ India’s GDP and around 8%of the employment.
Inefficiency in the existing supply chains presents further opportunity for organized players
to draw on this large market even as lack of consumer culture and low purchasing power
restricted the development of modern formats. Migration from unorganized to organized
retail has been visible with economic development in most countries
The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the
8
Customer satisfaction is a measure of how product and services supplied a company can meet
the customer expectations. Customer satisfaction is still one of the single strongest predictors
of customer retention. It’s considerably more expensive to attract new customers than it is to
keep old once happy. In a climate of decreasing brand loyalties, understanding customer
service and measuring customer satisfaction are very crucial. There is obviously a strong link
between customer satisfaction and customer retention. Customer perception of service and
quality of product will determine the success of the product or service in the market.
With better understanding of customer perceptions, companies can determine the customers
need e actions required to meet the can customer’s needs. They can identify their own
strengths and weaknesses, where they stand in comparison to their competitors, chart out path
future progress and improvement. Customer satisfaction measurement helps to promote an
increased focus on customer outcomes and stimulate improvements in the work practices and
processes used within the company.
In a sharp contrast to the retail sector in developed economies, retailing in India – though
large in terms of size - is highly fragmented and unorganized. With close to 12 million retail
outlets the country has one of the highest retail densities worldwide. Retailing like rest of the
world retailing is one of the largest industries in India with sales amounting to about $350
billion, but organized retail is estimated at only US$ 8 billion. It is country’s largest source of
employment after agriculture, has deepest penetration into rural India and accounts to about
10-11 % of’ India’s GDP and around 8%of the employment.
Inefficiency in the existing supply chains presents further opportunity for organized players
to draw on this large market even as lack of consumer culture and low purchasing power
restricted the development of modern formats. Migration from unorganized to organized
retail has been visible with economic development in most countries
The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the
8
industry is getting more popular these days and getting organized as well. With growing
market demand, the industry is expected to grow at a pace of 25-30% annually. The India
retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by
the year 2010.
1.2 Retail Meaning and Definition
1
To distribute in small portions or at second hand; to tell again or to many (what has
been told or done); to report; as, to retail slander.
The sale of commodities in small quantities or parcels; -- opposed to wholesale;
Sometimes, the sale of commodities at second hand.
Done at retail; engaged in retailing commodities; as a retail trade; a retail grocer.
To sell in small quantities, as by the single yard, pound, gallon, etc.; to sell directly to
the consumer; as, to retail cloth or groceries.
1.3 Importance of Retail Marketing
The retail landscape is in a constant state of change. As retail marketing is one of the most
dynamic and exciting areas of growth in the global economy so, to beat the competition,
stand out in a saturated marketplace and succeed despite tightening margins, savvy retailers
are focusing on customer-centric service, personalization and loyalty programs to attract and
retain customers.
A successful retail organization understands their market, their customers, and the
importance of strategic location. Because competition in the retail industry can be fierce,
such organizations need the best micro marketing tools available to analyze where to place
new stores, establish customer profiles, and determine best marketing practices in order to
find new customers. The trick in retailing, therefore, is to find things that you can do for
customers that will modify their behavior in profitable ways.
9
market demand, the industry is expected to grow at a pace of 25-30% annually. The India
retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by
the year 2010.
1.2 Retail Meaning and Definition
1
To distribute in small portions or at second hand; to tell again or to many (what has
been told or done); to report; as, to retail slander.
The sale of commodities in small quantities or parcels; -- opposed to wholesale;
Sometimes, the sale of commodities at second hand.
Done at retail; engaged in retailing commodities; as a retail trade; a retail grocer.
To sell in small quantities, as by the single yard, pound, gallon, etc.; to sell directly to
the consumer; as, to retail cloth or groceries.
1.3 Importance of Retail Marketing
The retail landscape is in a constant state of change. As retail marketing is one of the most
dynamic and exciting areas of growth in the global economy so, to beat the competition,
stand out in a saturated marketplace and succeed despite tightening margins, savvy retailers
are focusing on customer-centric service, personalization and loyalty programs to attract and
retain customers.
A successful retail organization understands their market, their customers, and the
importance of strategic location. Because competition in the retail industry can be fierce,
such organizations need the best micro marketing tools available to analyze where to place
new stores, establish customer profiles, and determine best marketing practices in order to
find new customers. The trick in retailing, therefore, is to find things that you can do for
customers that will modify their behavior in profitable ways.
9
As retailers strive to touch consumers at every step of the purchase cycle, retail marketing has
evolved to become a mosaic of mass media branding, tactics for driving store traffic, in-store
experience, and loyalty programs.
1.4 Definition of research
Research is a more systematic activity directed towards discovery and development of an
organized body of knowledge.
·It is directed towards aiming at a solution to a problem.
·It emphasizes development of general principles of theories helpful in predicting in
future occurrence.
·Based on observed experience or empirical evidence.
·It involves gathering new data from primary or firsthand sources and using the
existing data for the new purpose.
1.5 Principles of sampling
The idea behind principle of sampling is that we seek knowledge about the total units by
observing a few units and extend our inference about the sample to the entire population.
1.6 Questionnaire
This method of data collection is quite popular in case of big enquiries. A questionnaire
consists of a number of questions printed or typed in a defined order on a set of forms. The
questionnaire is mailed to respondents who are expected to read and understand the questions
and write down the reply on the space meant for the purpose in the questionnaire itself.
1.7 Need for the study
Over the years, research has been done in different service sectors, even in retail services, to
find out the drivers of customer satisfaction with respect to service quality and service
features of Reliance Fresh products. To survive in competitive market and make the
necessary improvements in the service quality and feature trend and comparison on is a need
for study.
10
evolved to become a mosaic of mass media branding, tactics for driving store traffic, in-store
experience, and loyalty programs.
1.4 Definition of research
Research is a more systematic activity directed towards discovery and development of an
organized body of knowledge.
·It is directed towards aiming at a solution to a problem.
·It emphasizes development of general principles of theories helpful in predicting in
future occurrence.
·Based on observed experience or empirical evidence.
·It involves gathering new data from primary or firsthand sources and using the
existing data for the new purpose.
1.5 Principles of sampling
The idea behind principle of sampling is that we seek knowledge about the total units by
observing a few units and extend our inference about the sample to the entire population.
1.6 Questionnaire
This method of data collection is quite popular in case of big enquiries. A questionnaire
consists of a number of questions printed or typed in a defined order on a set of forms. The
questionnaire is mailed to respondents who are expected to read and understand the questions
and write down the reply on the space meant for the purpose in the questionnaire itself.
1.7 Need for the study
Over the years, research has been done in different service sectors, even in retail services, to
find out the drivers of customer satisfaction with respect to service quality and service
features of Reliance Fresh products. To survive in competitive market and make the
necessary improvements in the service quality and feature trend and comparison on is a need
for study.
10
Chapter 02
Research Methodology
11
Research Methodology
11
2.1 Introduction
India’s service sector has matured considerably during the last few years and has been
globally recognized for its high growth and development. The Indian retail market, which is
the fifth largest retail destination globally, has been ranked as the most attractive emerging
market for investment in the retail sector by AT Kearney's eighth annual Global Retail
Development Index (GRDI), in 2009. As per a study conducted by the Indian Council for
Research on International Economic Relations (ICRIER), the retail sector is expected to
contribute to 22 per cent of India's GDP by 2010.
In today’s complex business environment, it has become very crucial for companies to attain
high customer satisfaction for long term sustainable growth and like companies of the other
business domains. Retail also considers their customers as the most important asset, is not
just a theory but also an economic fact. Therefore in the current scenario, the research on
customer satisfaction on business domain of retail sector is quite important and critical for
understanding of customer satisfaction and retention, it is very crucial for any company to
learn what actually differentiates the satisfied customers from the unsatisfied ones.
In a sharp contrast to the retail sector in developed economies, retailing in India - though
large in terms of size - is highly fragmented and unorganized. With close to 12 million retail
outlets the country has one of the highest retail densities worldwide. Retailing like rest of the
world retailing is one of the largest industries in India with sales amounting to about $350
billion, but organized retail is estimated at only US$ 8 billion.
It is country’s largest source of employment after agriculture, has deepest penetration into
rural India and accounts to about 10-11 % of’ India’s GDP and around 8%of the
employment. Inefficiency in the existing supply chains presents further opportunity for
organized players to draw on this large market even as lack of consumer culture and low
purchasing power restricted the development of modern formats. Migration from
unorganized to organized retail has been visible with economic development in most
countries.
12
India’s service sector has matured considerably during the last few years and has been
globally recognized for its high growth and development. The Indian retail market, which is
the fifth largest retail destination globally, has been ranked as the most attractive emerging
market for investment in the retail sector by AT Kearney's eighth annual Global Retail
Development Index (GRDI), in 2009. As per a study conducted by the Indian Council for
Research on International Economic Relations (ICRIER), the retail sector is expected to
contribute to 22 per cent of India's GDP by 2010.
In today’s complex business environment, it has become very crucial for companies to attain
high customer satisfaction for long term sustainable growth and like companies of the other
business domains. Retail also considers their customers as the most important asset, is not
just a theory but also an economic fact. Therefore in the current scenario, the research on
customer satisfaction on business domain of retail sector is quite important and critical for
understanding of customer satisfaction and retention, it is very crucial for any company to
learn what actually differentiates the satisfied customers from the unsatisfied ones.
In a sharp contrast to the retail sector in developed economies, retailing in India - though
large in terms of size - is highly fragmented and unorganized. With close to 12 million retail
outlets the country has one of the highest retail densities worldwide. Retailing like rest of the
world retailing is one of the largest industries in India with sales amounting to about $350
billion, but organized retail is estimated at only US$ 8 billion.
It is country’s largest source of employment after agriculture, has deepest penetration into
rural India and accounts to about 10-11 % of’ India’s GDP and around 8%of the
employment. Inefficiency in the existing supply chains presents further opportunity for
organized players to draw on this large market even as lack of consumer culture and low
purchasing power restricted the development of modern formats. Migration from
unorganized to organized retail has been visible with economic development in most
countries.
12
Thus the study is conducted to understand the satisfaction level of consumer that may be
influenced by the Price, Quality, and Service Convenience of the products. The project
reveals satisfaction level of the customers on ‘Reliance Fresh’ products, comparison between
Kirana shop and the retail outlets, Future trend of retail sector in India. Customers are
moving towards the new trend of retail shopping in shopping malls. Most of the competitors
are existing in the market in that ‘Reliance Fresh’ is trying occupying market share it shows a
good market potential.
2.2 Statement of the problem
Indian organized retailing is under transition today, bringing a lot of changes in format of
retailing. In this regard measuring customer satisfaction in organized ‘Reliance Fresh’ outlets
in Bangalore, preferences and experiences will be of use to shape the retail out lets and their
offerings. The changing attitude of consumers led them to step forward from unorganized
Kirana stores to the organized retailing formats.
2.3 Literature review
India has been rather slow in joining the organized retail revolution that was rapidly
transforming the economics in the other Asian tigers. The food retailing outlets in India are
growing at a very fast rate in the every city. The food retailing outlets in the recent years have
shown tremendous impact in buying decision of the consumers. Retailing is one of the largest
in the global economy, is going through a transition phase in India. The need of catering the
shopping experience has been fulfilled by the shopping malls. They let customers experience
their freedom of choice. They not only offer variety but also executive transparent pricing.
Technical, in its “retail outlook October 2007” reports that the total retail market will grow
from $336 billion in 2006 to $590 billion dollar in 2011, which translated to an annual
growth rate to 12%. Even while the share of modern retailing to four-fold from 4% in 2006 to
16% in 2011 and further to 2016, traditional retail will still grow in absolute terms from $324
billion dollar in 2006 to $493 billion dollar in 2011.
13
influenced by the Price, Quality, and Service Convenience of the products. The project
reveals satisfaction level of the customers on ‘Reliance Fresh’ products, comparison between
Kirana shop and the retail outlets, Future trend of retail sector in India. Customers are
moving towards the new trend of retail shopping in shopping malls. Most of the competitors
are existing in the market in that ‘Reliance Fresh’ is trying occupying market share it shows a
good market potential.
2.2 Statement of the problem
Indian organized retailing is under transition today, bringing a lot of changes in format of
retailing. In this regard measuring customer satisfaction in organized ‘Reliance Fresh’ outlets
in Bangalore, preferences and experiences will be of use to shape the retail out lets and their
offerings. The changing attitude of consumers led them to step forward from unorganized
Kirana stores to the organized retailing formats.
2.3 Literature review
India has been rather slow in joining the organized retail revolution that was rapidly
transforming the economics in the other Asian tigers. The food retailing outlets in India are
growing at a very fast rate in the every city. The food retailing outlets in the recent years have
shown tremendous impact in buying decision of the consumers. Retailing is one of the largest
in the global economy, is going through a transition phase in India. The need of catering the
shopping experience has been fulfilled by the shopping malls. They let customers experience
their freedom of choice. They not only offer variety but also executive transparent pricing.
Technical, in its “retail outlook October 2007” reports that the total retail market will grow
from $336 billion in 2006 to $590 billion dollar in 2011, which translated to an annual
growth rate to 12%. Even while the share of modern retailing to four-fold from 4% in 2006 to
16% in 2011 and further to 2016, traditional retail will still grow in absolute terms from $324
billion dollar in 2006 to $493 billion dollar in 2011.
13
A study by McKinsey point out that the Indian market for consumer goods is expected to
reach $400 billion by 2010.Indian market is one of the five largest markets in the world.
Liberalization of economy in the 1990’s and the entry of large players in the retail business
have bought the retail industry in spot light.
India's retail industry is the second largest sector, after agriculture, which provides
According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the
retail sector will create 50,000 jobs in next few years.
2.4 Objectives of the study
·To study the latest trends of retailing in India
·To study customer satisfaction in organized retail outlets towards branded retailing
·To compare branded retailing shops and Kirana stores on the basis of consumer
perception and satisfaction
·Level of satisfaction of ‘Reliance Fresh’ outlet users
·Reasons for dissatisfaction
2.5 Research Methodology
Research is the systematic process of collecting and analyzing information (data) in order to
increase our understanding of the phenomenon about which we are concerned or interested.
Research is a common parlance refers to a search for knowledge. The urge of understand
things may be rightly termed as research, in other words we can also refer research as a
scientific and systematic search of pertinent information of specific topic. The concept of
research is thus closely linked with human endeavor for better understanding of his evolution,
environment and growth through diverse stages of human history.
Research therefore, has been an integral part of academic pursuits in the past. It has served
two fold purpose, intellectual sharpening and evolving new theories to explain diverse
phenomenon through which mankind survived with the progress of modern era. Human
14
reach $400 billion by 2010.Indian market is one of the five largest markets in the world.
Liberalization of economy in the 1990’s and the entry of large players in the retail business
have bought the retail industry in spot light.
India's retail industry is the second largest sector, after agriculture, which provides
According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the
retail sector will create 50,000 jobs in next few years.
2.4 Objectives of the study
·To study the latest trends of retailing in India
·To study customer satisfaction in organized retail outlets towards branded retailing
·To compare branded retailing shops and Kirana stores on the basis of consumer
perception and satisfaction
·Level of satisfaction of ‘Reliance Fresh’ outlet users
·Reasons for dissatisfaction
2.5 Research Methodology
Research is the systematic process of collecting and analyzing information (data) in order to
increase our understanding of the phenomenon about which we are concerned or interested.
Research is a common parlance refers to a search for knowledge. The urge of understand
things may be rightly termed as research, in other words we can also refer research as a
scientific and systematic search of pertinent information of specific topic. The concept of
research is thus closely linked with human endeavor for better understanding of his evolution,
environment and growth through diverse stages of human history.
Research therefore, has been an integral part of academic pursuits in the past. It has served
two fold purpose, intellectual sharpening and evolving new theories to explain diverse
phenomenon through which mankind survived with the progress of modern era. Human
14
curiosity has leads to understand his environment in different angles. This process of
studying this awareness of man manifested in a process known as research
2.6 Research Design
Descriptive Research
Descriptive Research is a fact finding investigation which is aimed at describing the
characteristics of individual, situation or a group (or) describing the state of affairs as it exists
at present. The type of research method used is descriptive. The aim of descriptive research is
to verify formulated hypotheses that refer to the present situation in order to elucidate it.
Descriptive research is used because the research is primarily concerned with describing the
nature and conditions and degree in detail of the present situation
A descriptive research is conducted using 100 respondents, where in the detailed analysis of
preference of shopping, preference on organized and unorganized outlets, latest trend towards
branded retail outlets especially on ‘Reliance Fresh’ .Satisfaction level of customers towards
more retail outlets. Where in the detailed analysis of the quality of the service is analyzed
with respect to various variables and compared with the competitors to arrive at a conclusion
on the basis of finding and suggestions, which would help the company to provide greater
service and make necessary improvements in the service quality.
2.7 Tools of Data Collection
In present study both primary as well as secondary data will be used, which will helps in
identifying the customer satisfaction towards ‘Reliance Fresh’ retail outlets and towards the
‘KIRANA’ shops and the latest trends of retailing in India.
Data Sources
In present study both primary as well as secondary data is used, which helps in identifying
the customer satisfaction towards ‘Reliance Fresh’ retail outlets and towards the ‘KIRANA’
shops and the latest trends of retailing in India.
Primary Data
15
studying this awareness of man manifested in a process known as research
2.6 Research Design
Descriptive Research
Descriptive Research is a fact finding investigation which is aimed at describing the
characteristics of individual, situation or a group (or) describing the state of affairs as it exists
at present. The type of research method used is descriptive. The aim of descriptive research is
to verify formulated hypotheses that refer to the present situation in order to elucidate it.
Descriptive research is used because the research is primarily concerned with describing the
nature and conditions and degree in detail of the present situation
A descriptive research is conducted using 100 respondents, where in the detailed analysis of
preference of shopping, preference on organized and unorganized outlets, latest trend towards
branded retail outlets especially on ‘Reliance Fresh’ .Satisfaction level of customers towards
more retail outlets. Where in the detailed analysis of the quality of the service is analyzed
with respect to various variables and compared with the competitors to arrive at a conclusion
on the basis of finding and suggestions, which would help the company to provide greater
service and make necessary improvements in the service quality.
2.7 Tools of Data Collection
In present study both primary as well as secondary data will be used, which will helps in
identifying the customer satisfaction towards ‘Reliance Fresh’ retail outlets and towards the
‘KIRANA’ shops and the latest trends of retailing in India.
Data Sources
In present study both primary as well as secondary data is used, which helps in identifying
the customer satisfaction towards ‘Reliance Fresh’ retail outlets and towards the ‘KIRANA’
shops and the latest trends of retailing in India.
Primary Data
15
The primary data for the study will be collected by means of structured questionnaire and
will be distributed personally to the 100 respondents to get their responses.
Secondary data
The secondary data will be collected from company websites, lounge books, referrals,
internet browsing, Journals.
Design of Questionnaire
The questionnaire will be designed to collect the data to keep in view the objective of the
study. It will be mostly closed ended and open ended short questions for the convenience of
respondents.
2.8 Sampling Plan
Sampling is that part of statistical practice concerned with the selection of a subset of
individual observations within a population of individuals intended to yield some knowledge
about the population of concern, especially for the purposes of making predictions based
on statistical inference.
Sampling Method: Convenience Sampling
Convenience sampling procedure was adopted for selecting respondents; the respondents will
be mainly from Bangalore city, where the company has its retail outlets. Samples will be
collected by survey method and the response of 100 respondents will be considered for
analysis of data & interpretation.
Sampling Unit: The sampling unit will be customers who will shop in the retail store or the
similar store.
Sample Size: Sample size will be taken as 100 respondents with respondents from inside and
outside the similar retail outlet.
2.9 Planning and Analysis
The primary data will be collected by means of structured questionnaire from 100
respondents and the secondary data will be collected from websites, company reports,
magazines, referrals and lounge books. The data collected from the study will be analyzed
and will be represented by simple graph, tables, and charts and will be interpreted for
providing relevant recommendation.
16
will be distributed personally to the 100 respondents to get their responses.
Secondary data
The secondary data will be collected from company websites, lounge books, referrals,
internet browsing, Journals.
Design of Questionnaire
The questionnaire will be designed to collect the data to keep in view the objective of the
study. It will be mostly closed ended and open ended short questions for the convenience of
respondents.
2.8 Sampling Plan
Sampling is that part of statistical practice concerned with the selection of a subset of
individual observations within a population of individuals intended to yield some knowledge
about the population of concern, especially for the purposes of making predictions based
on statistical inference.
Sampling Method: Convenience Sampling
Convenience sampling procedure was adopted for selecting respondents; the respondents will
be mainly from Bangalore city, where the company has its retail outlets. Samples will be
collected by survey method and the response of 100 respondents will be considered for
analysis of data & interpretation.
Sampling Unit: The sampling unit will be customers who will shop in the retail store or the
similar store.
Sample Size: Sample size will be taken as 100 respondents with respondents from inside and
outside the similar retail outlet.
2.9 Planning and Analysis
The primary data will be collected by means of structured questionnaire from 100
respondents and the secondary data will be collected from websites, company reports,
magazines, referrals and lounge books. The data collected from the study will be analyzed
and will be represented by simple graph, tables, and charts and will be interpreted for
providing relevant recommendation.
16
Field work
The data is collected from the people doing shopping in Bangalore city (Aiyappa temple near
Jalahalli cross, Kodigehalli, Ramaiah Layout, Malleshwaram) where the company has
outlets.
Data presentation and analysis
The primary data was collected by means of structured questionnaire from 100 respondents
the secondary data was collected from websites, company reports, magazines, referrals and
lounge books. The data collected from the study is analyzed by simple graph, tables, and
charts and interpreted for providing relevant recommendation.
2.10 Limitation of the Study
·This study is restricted to Bangalore city only and therefore, the results obtained out
of this study cannot be generalized to other parts and rural area of the country.
·Due to time constraints the sample size is restricted to 100 customers.
·The analysis will be based on the current data; as such it may lose its relevance in the
future.
·The response of the respondents may be biased.
2.11 Scope of the Project
·The project aims to reveal the market status & competition for ‘Reliance Fresh’
·It helps the company in strategy formulation and planning for further improvements.
·The study aims to reveal the customer satisfaction towards organized retail outlets.
·To know where ‘Reliance Fresh’ is facing problems and where it is having new
opportunities in retail sector.
·To compare with organized retail outlets and unorganized retailers and to study the
latest trends of retailing in India.
2.12 Chapter Scheme
Chapter 1: Introduction
17
The data is collected from the people doing shopping in Bangalore city (Aiyappa temple near
Jalahalli cross, Kodigehalli, Ramaiah Layout, Malleshwaram) where the company has
outlets.
Data presentation and analysis
The primary data was collected by means of structured questionnaire from 100 respondents
the secondary data was collected from websites, company reports, magazines, referrals and
lounge books. The data collected from the study is analyzed by simple graph, tables, and
charts and interpreted for providing relevant recommendation.
2.10 Limitation of the Study
·This study is restricted to Bangalore city only and therefore, the results obtained out
of this study cannot be generalized to other parts and rural area of the country.
·Due to time constraints the sample size is restricted to 100 customers.
·The analysis will be based on the current data; as such it may lose its relevance in the
future.
·The response of the respondents may be biased.
2.11 Scope of the Project
·The project aims to reveal the market status & competition for ‘Reliance Fresh’
·It helps the company in strategy formulation and planning for further improvements.
·The study aims to reveal the customer satisfaction towards organized retail outlets.
·To know where ‘Reliance Fresh’ is facing problems and where it is having new
opportunities in retail sector.
·To compare with organized retail outlets and unorganized retailers and to study the
latest trends of retailing in India.
2.12 Chapter Scheme
Chapter 1: Introduction
17
It provides an insight and Introduction about the broad area of the topic chosen and also the
theoretical background of the study.
Chapter 2: Research Methodology
It consists of detailed coverage of the manner in which the report is prepared. Research
methodology helps to understand the practical steps adopted to reach the data and methods of
analysis and interpreting the response. It also includes Need for study, Statement of Problem,
Objective, Research Design, Source of Data, Tools of Analysis, Scope and Limitation of
Study, Literature review.
Chapter 3: Industry Profile
The chapter is concerned with the introduction and the background of Retail Industry with
reference to Reliance Fresh as a whole which gives detailed information about the origin,
growth, development and its future.
Chapter 4: Data Analysis and Interpretation
The data collected from the study will be presented and analyzed using appropriate statistical
tools for interpretation and providing relevant suggestions.
Chapter 5: Summary of Findings
The summary of findings is based on analysis and interpretation of primary and secondary
data collected for this study with respect to the objectives.
Chapter 6: Suggestions & Conclusion
The suggestions are based on findings of the study and conclusion is made.
s
18
theoretical background of the study.
Chapter 2: Research Methodology
It consists of detailed coverage of the manner in which the report is prepared. Research
methodology helps to understand the practical steps adopted to reach the data and methods of
analysis and interpreting the response. It also includes Need for study, Statement of Problem,
Objective, Research Design, Source of Data, Tools of Analysis, Scope and Limitation of
Study, Literature review.
Chapter 3: Industry Profile
The chapter is concerned with the introduction and the background of Retail Industry with
reference to Reliance Fresh as a whole which gives detailed information about the origin,
growth, development and its future.
Chapter 4: Data Analysis and Interpretation
The data collected from the study will be presented and analyzed using appropriate statistical
tools for interpretation and providing relevant suggestions.
Chapter 5: Summary of Findings
The summary of findings is based on analysis and interpretation of primary and secondary
data collected for this study with respect to the objectives.
Chapter 6: Suggestions & Conclusion
The suggestions are based on findings of the study and conclusion is made.
s
18
Chapter 03
Industry and Company Profile
3.1 INDUSTRY PROFILE
19
Industry and Company Profile
3.1 INDUSTRY PROFILE
19
A retailer or retail store is any business enterprise whose sales volume comes primarily from
retailing. Retail organizations exhibit great variety and new forms keep emerging. There are
store retailers, non store retailers, and retail organizations. Consumers today can shop for
goods and services in a wide variety of stores. The best-known type of retailer is the
department store. Japanese department stores such as Takashimaya and Mitsukoshi attract
millions of shoppers each year. These stores feature art galleries, cooking classes, and
children’s playgrounds. A retailer is at the end of the distributive channel.
He provides goods and service to the ultimate consumers. This he does through his small
organization, with the help of a few personnel. In an individual retail store there is not much
scope for organization except in the sense that the shopkeeper has to organize apportions his
time and resources. The need for organization becomes essential as soon as he hires people o
enters into partnership or takes the help of members of his family in running his store. A
retailer deals in an assortment of goods to cater to the needs of consumers. His objective is to
make maximum profit out of his enterprise.
With that end in view he has to pursue a policy to achieve his objective. This policy is called
retailing mix. A retailing mix is the package of goods and services that store offers to the
customers for sale. It is the combination of all efforts planned by the retailer and embodies
the adjustment of the retail store to the market environment. Retailing mix a communication
mix and a distribution mix. The maximum satisfaction to the customers is achieved by a
proper blend of all three.
The success of the retail stores, therefore, depends on customers’ reaction to the retailing mix
which influences the profits of the store, its volume of turnover, its share of the market, its
image and status and finally its survival.
3.1.1 Retailing
Retailing is the set of business activities that adds value to the products and services sold to
the consumer for their personal or family use. A "retailer" buys goods or products in large
quantities from manufacturers or importers, either directly or through a wholesaler, and then
sells smaller quantities to the end-user. Retail establishments are often called shops or stores.
Retailers are at the end of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy. The term "retailer" is also
20
retailing. Retail organizations exhibit great variety and new forms keep emerging. There are
store retailers, non store retailers, and retail organizations. Consumers today can shop for
goods and services in a wide variety of stores. The best-known type of retailer is the
department store. Japanese department stores such as Takashimaya and Mitsukoshi attract
millions of shoppers each year. These stores feature art galleries, cooking classes, and
children’s playgrounds. A retailer is at the end of the distributive channel.
He provides goods and service to the ultimate consumers. This he does through his small
organization, with the help of a few personnel. In an individual retail store there is not much
scope for organization except in the sense that the shopkeeper has to organize apportions his
time and resources. The need for organization becomes essential as soon as he hires people o
enters into partnership or takes the help of members of his family in running his store. A
retailer deals in an assortment of goods to cater to the needs of consumers. His objective is to
make maximum profit out of his enterprise.
With that end in view he has to pursue a policy to achieve his objective. This policy is called
retailing mix. A retailing mix is the package of goods and services that store offers to the
customers for sale. It is the combination of all efforts planned by the retailer and embodies
the adjustment of the retail store to the market environment. Retailing mix a communication
mix and a distribution mix. The maximum satisfaction to the customers is achieved by a
proper blend of all three.
The success of the retail stores, therefore, depends on customers’ reaction to the retailing mix
which influences the profits of the store, its volume of turnover, its share of the market, its
image and status and finally its survival.
3.1.1 Retailing
Retailing is the set of business activities that adds value to the products and services sold to
the consumer for their personal or family use. A "retailer" buys goods or products in large
quantities from manufacturers or importers, either directly or through a wholesaler, and then
sells smaller quantities to the end-user. Retail establishments are often called shops or stores.
Retailers are at the end of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy. The term "retailer" is also
20
applied where a service provider services the needs of a large number of individuals, such as
a public utility, like electric power.
Retailing is an important institution in our society,
Retailing provides considerable value to consumers while giving people opportunities
for
Rewarding and challenging careers.
Retail formats and companies are now major factors in the industry.
The key to successful retailing is offering the right product, at the right price, in the
right
Place, at the right time, and making a profit.
Retailers must understand what customers want and what competitors are offering
now and in the future.
3.1.2. The World of Organized Retailing
Retailers are using sophisticated communications and information systems to manage
their business. The use of new technologies helps retailers reduce their operations
costs, while better serving their customers.
To compete against non-store retailers, stores are now becoming more than just places
to buy products. They are offering entertaining and educational experiences for their
customers.
In this dynamic environment, entrepreneurs are launching new companies and
concepts and becoming industry leaders, while traditional firms have had to rethink
their business.
Retail managers today must make complex decisions on selecting target markets and
Retail locations, determining what merchandise and services to offer, negotiating with
Supplier and distributing merchandise to stores, training and motivating sales
associates, and deciding how to price, promote and present merchandise.
3.1.3. Retail mix.
21
a public utility, like electric power.
Retailing is an important institution in our society,
Retailing provides considerable value to consumers while giving people opportunities
for
Rewarding and challenging careers.
Retail formats and companies are now major factors in the industry.
The key to successful retailing is offering the right product, at the right price, in the
right
Place, at the right time, and making a profit.
Retailers must understand what customers want and what competitors are offering
now and in the future.
3.1.2. The World of Organized Retailing
Retailers are using sophisticated communications and information systems to manage
their business. The use of new technologies helps retailers reduce their operations
costs, while better serving their customers.
To compete against non-store retailers, stores are now becoming more than just places
to buy products. They are offering entertaining and educational experiences for their
customers.
In this dynamic environment, entrepreneurs are launching new companies and
concepts and becoming industry leaders, while traditional firms have had to rethink
their business.
Retail managers today must make complex decisions on selecting target markets and
Retail locations, determining what merchandise and services to offer, negotiating with
Supplier and distributing merchandise to stores, training and motivating sales
associates, and deciding how to price, promote and present merchandise.
3.1.3. Retail mix.
21
The retail mix is the combination of factors retail used to satisfied customer needs and
influences their purchase decision. Its include the type of merchandise and services offered,
merchandise pricing, advertising, promotional programs store design merchandise display,
assistance to customer provided by salespeople, and convenience of the store’s location.
Retail mix is the term used to describe the various elements and methods required
to formulate and execute retail marketing strategy.
Retail managers must determine the optimum mix of retailing activities and
coordinate the elements of the mix.
While many elements may make up a firm’s retail mix, the essential elements may
include:
Store location,
Merchandise assortments
Store ambience,
customer service,
price,
Communication with customer
Personal selling
Store image
Store design
Sales incentives
People
Process
Physical evidence
3.1.4. Composition of retail mix
Place
Product
Price
Promotion
People
22
influences their purchase decision. Its include the type of merchandise and services offered,
merchandise pricing, advertising, promotional programs store design merchandise display,
assistance to customer provided by salespeople, and convenience of the store’s location.
Retail mix is the term used to describe the various elements and methods required
to formulate and execute retail marketing strategy.
Retail managers must determine the optimum mix of retailing activities and
coordinate the elements of the mix.
While many elements may make up a firm’s retail mix, the essential elements may
include:
Store location,
Merchandise assortments
Store ambience,
customer service,
price,
Communication with customer
Personal selling
Store image
Store design
Sales incentives
People
Process
Physical evidence
3.1.4. Composition of retail mix
Place
Product
Price
Promotion
People
22
Process
Physical Environment
Key element
1) Place (store location)
2) Product (merchandise)
Target market Product development
Channel structure Product management
Channel management Product features and benefits
Retailer image Branding
Retail logistics Packaging
Retail distribution
3) Price
4) Promotion
Costs developing promotional mixes
Profitability Advertising management
Value for money Sales promotion
Competitiveness Sales management
Incentives Public relations
Quality Direct marketing
Status
After-sales services
5) People element
6) Process element
Staff capability Order processing
Efficiency Database management
Availability Service delivery
Effectiveness queuing system
Customer interaction Standardization
3.2. RETAIL INDUSTRY IN INDIA
23
Physical Environment
Key element
1) Place (store location)
2) Product (merchandise)
Target market Product development
Channel structure Product management
Channel management Product features and benefits
Retailer image Branding
Retail logistics Packaging
Retail distribution
3) Price
4) Promotion
Costs developing promotional mixes
Profitability Advertising management
Value for money Sales promotion
Competitiveness Sales management
Incentives Public relations
Quality Direct marketing
Status
After-sales services
5) People element
6) Process element
Staff capability Order processing
Efficiency Database management
Availability Service delivery
Effectiveness queuing system
Customer interaction Standardization
3.2. RETAIL INDUSTRY IN INDIA
23
Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and
around 8 per cent of the employment. Retail sector is one of India's fastest growing sectors
with a 5 percent compounded annual growth rate. India's huge middle class base and its
untapped retail industries are key attractions for global retail giants planning to enter newer
markets. Driven by changing lifestyles, strong income growth and favorable demographic
Patterns, Indian retail are expected to grow 25 per cent annually. It is expected that retail in
India could be worth US$ 175-200 billion by 2016.
The organized retail industry in India had not evolved till the early 1990s. Until then, the
Industry was dominated by the un-organized sector. It was a seller’s market, with a limited
Number of brands and little choice available to customers. Lack of trained manpower, tax
Laws and government regulations all discouraged the growth of organized retailing in India
During that period. Lack of consumer awareness and restrictions over entry of foreign players
into the sector also contributed to the delay in the growth of organized retailing.
Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails
India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business
giants such as Reliance, Bharti, Birla and others are now entering into retail sector. A number
of factors are driving India's retail market. These include: increase in the young working
population, hefty pay packets, nuclear families in urban areas, increasing workingwomen
population, increase in disposable income and customer aspiration, increase in expenditure
for luxury items, and low share of organized retailing.
India's retail boom is manifested in sprawling shopping centers, multiplex- malls and huge
complexes that offer shopping, entertainment and food all under one roof. But there is a flip
side to the boom in the retail sector. It is feared that the entry of global Business giants into
organized retail would make redundant the neighborhood Kirana stores resulting in
dislocation in traditional economic structure. Also, the growth path for organized retail in
India is not hurdle free. The taxation system still favors small retail business. With the
intrinsic complexities of retailing such as rapid price changes, constant threat of product
obsolescence and low margins there is always a threat that the venture may turn out to be a
loss making one.
A perfect business model for retail is still in evolutionary stage. Procurement is very vital cog
in the retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable
24
around 8 per cent of the employment. Retail sector is one of India's fastest growing sectors
with a 5 percent compounded annual growth rate. India's huge middle class base and its
untapped retail industries are key attractions for global retail giants planning to enter newer
markets. Driven by changing lifestyles, strong income growth and favorable demographic
Patterns, Indian retail are expected to grow 25 per cent annually. It is expected that retail in
India could be worth US$ 175-200 billion by 2016.
The organized retail industry in India had not evolved till the early 1990s. Until then, the
Industry was dominated by the un-organized sector. It was a seller’s market, with a limited
Number of brands and little choice available to customers. Lack of trained manpower, tax
Laws and government regulations all discouraged the growth of organized retailing in India
During that period. Lack of consumer awareness and restrictions over entry of foreign players
into the sector also contributed to the delay in the growth of organized retailing.
Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails
India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business
giants such as Reliance, Bharti, Birla and others are now entering into retail sector. A number
of factors are driving India's retail market. These include: increase in the young working
population, hefty pay packets, nuclear families in urban areas, increasing workingwomen
population, increase in disposable income and customer aspiration, increase in expenditure
for luxury items, and low share of organized retailing.
India's retail boom is manifested in sprawling shopping centers, multiplex- malls and huge
complexes that offer shopping, entertainment and food all under one roof. But there is a flip
side to the boom in the retail sector. It is feared that the entry of global Business giants into
organized retail would make redundant the neighborhood Kirana stores resulting in
dislocation in traditional economic structure. Also, the growth path for organized retail in
India is not hurdle free. The taxation system still favors small retail business. With the
intrinsic complexities of retailing such as rapid price changes, constant threat of product
obsolescence and low margins there is always a threat that the venture may turn out to be a
loss making one.
A perfect business model for retail is still in evolutionary stage. Procurement is very vital cog
in the retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable
24
availability, unsorted food provisions and daily fluctuating prices as against consumer
expectations of round-the-year steady prices, sorted and cleaned food and fresh stock at all
Times.
The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the
industry is getting more popular these days and getting organized as well. With growing
market demand, the industry is expected to grow at a pace of 25-30% annually. The India
retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore
Fig 3.1
3.2.1. Present Indian Retail Industry Scenario
25
expectations of round-the-year steady prices, sorted and cleaned food and fresh stock at all
Times.
The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the
industry is getting more popular these days and getting organized as well. With growing
market demand, the industry is expected to grow at a pace of 25-30% annually. The India
retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore
Fig 3.1
3.2.1. Present Indian Retail Industry Scenario
25
The retail industry is divided into organized and unorganized sectors. Over 12 million outlets
operate in the country and only 4% of them being larger than 500 sq ft (46 m²) in size.
Organized retailing refers to trading activities undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost
retailing, for example, the local kirana shops, owner manned general stores, paan/beedi
shops, convenience stores, hand cart and pavement vendors, etc.
·Unorganized market: Rs. 583,000 cores
·Organized market: Rs.5, 000 cores
·5X growth in organized retailing between 2005-2012
·Over 4,000 new modern Outlets in the last 3 years
·Over 5,000,000 sq. ft. of mall space under development
·The top 3 modern retailers control over 750,000 sq. ft. of retail space
·Over 400,000 shoppers walk through their doors every week
·47 global fortune companies & 25 of Asia's top 200 companies are retailers
·Biggest player in India is Pantaloon Retail India Limited.
·Growth in organized retailing on par with expectations and projections of the last 5
Years on
·Course to touch Rs. 35,000 corers (US$ 7 Billion) or more by 2005-06The growth
factors of
3.2.2. 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 countries 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
26
operate in the country and only 4% of them being larger than 500 sq ft (46 m²) in size.
Organized retailing refers to trading activities undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost
retailing, for example, the local kirana shops, owner manned general stores, paan/beedi
shops, convenience stores, hand cart and pavement vendors, etc.
·Unorganized market: Rs. 583,000 cores
·Organized market: Rs.5, 000 cores
·5X growth in organized retailing between 2005-2012
·Over 4,000 new modern Outlets in the last 3 years
·Over 5,000,000 sq. ft. of mall space under development
·The top 3 modern retailers control over 750,000 sq. ft. of retail space
·Over 400,000 shoppers walk through their doors every week
·47 global fortune companies & 25 of Asia's top 200 companies are retailers
·Biggest player in India is Pantaloon Retail India Limited.
·Growth in organized retailing on par with expectations and projections of the last 5
Years on
·Course to touch Rs. 35,000 corers (US$ 7 Billion) or more by 2005-06The growth
factors of
3.2.2. 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 countries 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
26
for growth in the Indian retail market. The growth of scope in the Indian retail market is
mainly due to the change in the consumer’s 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 has been seen by many retail giants and that’s the reason that many new players are
entering the India retail industry.
3.2.3. The Future Indian Retail Scenario
The retail industry in India is currently growing at a great pace and is expected to go up to
US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year
2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending
has also gone up and is also expected to go up further in the future. In the last four year, the
consumer spending in India climbed up to 75%. As a result, the India retail industry is
expected to grow further in the future days.
By the year 2013, the organized The retail sector in India is witnessing a huge revamping
exercise as traditional markets make way for new formats such as departmental stores,
hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing
in metros and second-rung cities alike introducing the Indian consumer to a shopping
experience like never before.
The sector is at an inflexion point where the growth of organized retailing and growth in the
consumption by the Indian population is going to take a higher growth trajectory. The Indian
population is witnessing a significant change in its demographics. Organized retail is on all
time high in India. The growth is boosted by various factors such as availability of
professional practices, media proliferation, various brands which are gaining value thereby
enhancing industry growth, availability of various funding options, regulations like VAT
implementation to make processes simple, sea change in demographics of country and
international exposure.
This report is structured into three major parts. First part comprises of Executive Summary
and highlights of the retail sector. Second part consists of 12 chapters which includes an
introduction and discusses vital topics in retail industry like A Brief Overview of Global
Retail Industry, Indian Retail Industry, Organized Retail Formats in Indian retail, Food Retail
27
mainly due to the change in the consumer’s 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 has been seen by many retail giants and that’s the reason that many new players are
entering the India retail industry.
3.2.3. The Future Indian Retail Scenario
The retail industry in India is currently growing at a great pace and is expected to go up to
US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year
2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending
has also gone up and is also expected to go up further in the future. In the last four year, the
consumer spending in India climbed up to 75%. As a result, the India retail industry is
expected to grow further in the future days.
By the year 2013, the organized The retail sector in India is witnessing a huge revamping
exercise as traditional markets make way for new formats such as departmental stores,
hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing
in metros and second-rung cities alike introducing the Indian consumer to a shopping
experience like never before.
The sector is at an inflexion point where the growth of organized retailing and growth in the
consumption by the Indian population is going to take a higher growth trajectory. The Indian
population is witnessing a significant change in its demographics. Organized retail is on all
time high in India. The growth is boosted by various factors such as availability of
professional practices, media proliferation, various brands which are gaining value thereby
enhancing industry growth, availability of various funding options, regulations like VAT
implementation to make processes simple, sea change in demographics of country and
international exposure.
This report is structured into three major parts. First part comprises of Executive Summary
and highlights of the retail sector. Second part consists of 12 chapters which includes an
introduction and discusses vital topics in retail industry like A Brief Overview of Global
Retail Industry, Indian Retail Industry, Organized Retail Formats in Indian retail, Food Retail
27
in India, Apparel Retail in India, Growth Drivers of Indian Retail, Technology implications,
Issues & Challenges faced by the sector, Critical Success Factors, Regulations and Policies
and Future Outlook of the industry.
The third and final part consists of supporting literature in the form of Annexure. This report
will be useful to entrepreneurs interested in getting insights of retail industry for doing direct
and indirect business in the sector, management consultants, banks evaluating retail sector
growth trajectory. The Indian population is witnessing a significant change in its
demographics. Organized retail is on all time high in India. The growth is boosted by various
factors such as availability of professional proposals, investors who are interested in this
sunrise sector, retail professionals for getting larger picture of the sector. Last but not the
least this report can also be useful for educational institutions imparting courses in retail
sector is also expected to grow at a CAGR of 40%.
The retail sector in India is witnessing a huge revamping exercise as traditional markets make
way for new formats such as departmental stores, hypermarkets, supermarkets and specialty
stores. Western-style malls have begun appearing in metros and second-rung cities alike
introducing the Indian consumer to a shopping experience like never before.
The sector is at an inflexion point where the growth of organized retailing and growth in the
consumption by the Indian population is going to take a higher practices, media proliferation,
various brands which are gaining value thereby enhancing industry growth, availability of
various funding options, regulations like VAT implementation to make processes simple, sea
change in demographics of country and international exposure.
This report is structured into three major parts. First part comprises of Executive Summary
and highlights of the retail sector. Second part consists of 12 chapters which includes an
introduction and discusses vital topics in retail industry like A Brief Overview of Global
Retail Industry, Indian Retail Industry, Organized Retail Formats in Indian retail, Food Retail
in India, Apparel Retail in India, Growth Drivers of Indian Retail, Technology implications,
Issues & Challenges faced by the sector, Critical Success Factors, Regulations and Policies
and Future Outlook of the industry. The third and final part consists of supporting literature
in the form of Annexure. This report will be useful to entrepreneurs interested in getting
insights of retail industry for doing direct and indirect business in the sector, management
consultants, banks evaluating retail sector proposals, investors who are interested in this
28
Issues & Challenges faced by the sector, Critical Success Factors, Regulations and Policies
and Future Outlook of the industry.
The third and final part consists of supporting literature in the form of Annexure. This report
will be useful to entrepreneurs interested in getting insights of retail industry for doing direct
and indirect business in the sector, management consultants, banks evaluating retail sector
growth trajectory. The Indian population is witnessing a significant change in its
demographics. Organized retail is on all time high in India. The growth is boosted by various
factors such as availability of professional proposals, investors who are interested in this
sunrise sector, retail professionals for getting larger picture of the sector. Last but not the
least this report can also be useful for educational institutions imparting courses in retail
sector is also expected to grow at a CAGR of 40%.
The retail sector in India is witnessing a huge revamping exercise as traditional markets make
way for new formats such as departmental stores, hypermarkets, supermarkets and specialty
stores. Western-style malls have begun appearing in metros and second-rung cities alike
introducing the Indian consumer to a shopping experience like never before.
The sector is at an inflexion point where the growth of organized retailing and growth in the
consumption by the Indian population is going to take a higher practices, media proliferation,
various brands which are gaining value thereby enhancing industry growth, availability of
various funding options, regulations like VAT implementation to make processes simple, sea
change in demographics of country and international exposure.
This report is structured into three major parts. First part comprises of Executive Summary
and highlights of the retail sector. Second part consists of 12 chapters which includes an
introduction and discusses vital topics in retail industry like A Brief Overview of Global
Retail Industry, Indian Retail Industry, Organized Retail Formats in Indian retail, Food Retail
in India, Apparel Retail in India, Growth Drivers of Indian Retail, Technology implications,
Issues & Challenges faced by the sector, Critical Success Factors, Regulations and Policies
and Future Outlook of the industry. The third and final part consists of supporting literature
in the form of Annexure. This report will be useful to entrepreneurs interested in getting
insights of retail industry for doing direct and indirect business in the sector, management
consultants, banks evaluating retail sector proposals, investors who are interested in this
28
sunrise sector, retail professionals for getting larger picture of the sector. Last but not the
least this report can also be useful for educational institutions imparting courses in retail
management.
3.2.4. The opportunities in Indian organized retail
The opportunities in Indian organized retail sector are many for this sector is witnessing a
boom. The retail industry in India amounted to US$ 200 billion in 2006, and out of this
amount the Indian organized retail sector amounted to US$ 6.4 billion. The opportunities in
India organized retail sector can be judged from the fact that by 2010 it is expected to rise to
US$ 23 billion. The various opportunities in the organized retail sector in India are mainly
there for the Indian consumers behavior pattern has changed.
Now the Indian consumer gets more hefty pay- packages, is younger, a large number of
women are working, western influences, and more disposable income have opened a lot of
opportunities in Indian organized retail sector. The Indian consumer wants to shop, eat and
get entertainment in one place and is having also given Indian organized retail sector an
opportunity to grow.
The Indian government in 2005 allowed foreign direct investment (FDI) in single brand retail
to 51%. This has opened up a lot of opportunities in India organized retail sector. In fact 325
departmental stores, 300 new malls, and 1500 supermarkets are being built which shows the
tremendous opportunities in the organized retail sector in India. Many Indian companies
seeing the various opportunities in organized retail sector in India have entered it.
Pantaloons have decided to increase its retail space to 30 million square feet with an
investment of US$ 1 billion. Reliance Industries Limited is targeting for annual sales of US$
25 billion by 2011. It is planning to invest US$ 6 billion in order to open 1,500 supermarkets
and 1000 hypermarkets. Bharti Telecoms is planning a joint venture with Telco a global retail
giant worth £ 750 million. The opportunities in the organized retail sector in India have also
increased with the desire of many global retail giants to set up shop here. The global retail
giants who are entering the Indian organized retail sector are:
29
least this report can also be useful for educational institutions imparting courses in retail
management.
3.2.4. The opportunities in Indian organized retail
The opportunities in Indian organized retail sector are many for this sector is witnessing a
boom. The retail industry in India amounted to US$ 200 billion in 2006, and out of this
amount the Indian organized retail sector amounted to US$ 6.4 billion. The opportunities in
India organized retail sector can be judged from the fact that by 2010 it is expected to rise to
US$ 23 billion. The various opportunities in the organized retail sector in India are mainly
there for the Indian consumers behavior pattern has changed.
Now the Indian consumer gets more hefty pay- packages, is younger, a large number of
women are working, western influences, and more disposable income have opened a lot of
opportunities in Indian organized retail sector. The Indian consumer wants to shop, eat and
get entertainment in one place and is having also given Indian organized retail sector an
opportunity to grow.
The Indian government in 2005 allowed foreign direct investment (FDI) in single brand retail
to 51%. This has opened up a lot of opportunities in India organized retail sector. In fact 325
departmental stores, 300 new malls, and 1500 supermarkets are being built which shows the
tremendous opportunities in the organized retail sector in India. Many Indian companies
seeing the various opportunities in organized retail sector in India have entered it.
Pantaloons have decided to increase its retail space to 30 million square feet with an
investment of US$ 1 billion. Reliance Industries Limited is targeting for annual sales of US$
25 billion by 2011. It is planning to invest US$ 6 billion in order to open 1,500 supermarkets
and 1000 hypermarkets. Bharti Telecoms is planning a joint venture with Telco a global retail
giant worth £ 750 million. The opportunities in the organized retail sector in India have also
increased with the desire of many global retail giants to set up shop here. The global retail
giants who are entering the Indian organized retail sector are:
29
·Tesco, Wal- Mart , Metro AG , Carrefour SA
The opportunities in Indian organized retail sector are varied and it must be fully exploited by
the Indian retailers.
3.2.5. Growth of Indian Retail
According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India
retail industry is the most promising emerging market for investment. In 2007, the retail trade
in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country.
According to a report by Northbride Capita, the India retail industry is expected to grow to
US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total
market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5%
of the total retail market.
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 has been encouraging in the Growth of Retail Companies in India.
Growth of Retail Companies in India:
Overview
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
30
The opportunities in Indian organized retail sector are varied and it must be fully exploited by
the Indian retailers.
3.2.5. Growth of Indian Retail
According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India
retail industry is the most promising emerging market for investment. In 2007, the retail trade
in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country.
According to a report by Northbride Capita, the India retail industry is expected to grow to
US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total
market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5%
of the total retail market.
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 has been encouraging in the Growth of Retail Companies in India.
Growth of Retail Companies in India:
Overview
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
30
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 has 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.
3.2.6. The Emerging Trends in the 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 is 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.
31
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 has 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.
3.2.6. The Emerging Trends in the 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 is 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.
31
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.
3.2.7. Challenges 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 has undergone a major change. This has 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 affecting 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 has allowed 51% foreign direct investment (FDI) in the India retail sector to one
brand shops only.
This has 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 Indian becoming an accepted practice.
32
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.
3.2.7. Challenges 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 has undergone a major change. This has 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 affecting 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 has allowed 51% foreign direct investment (FDI) in the India retail sector to one
brand shops only.
This has 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 Indian becoming an accepted practice.
32
3.3 Indian unorganized retail sector & its challenge
India is the only one country having the highest shop density in the world, with 11 outlets per
1000 people (12 million retail shops for about 209 million households). Rather we can see the
democratic scenario in Indian Retail (because of low level of centralization, low capital input
and due to a good number of self organized retail).
India started its Retail Journey since ancient time. In Ancient India there was a concept of
weekly HAAT, where all the buyers & sellers gather in a big market for bartering. It takes a
pretty long times to & step to shape the modern retail. In between these two concepts (i.e.
between ancient retail concept & the modern one there exist modern kirana/ mom and pop
shops or Baniya ki Dukan. Still it is predominating in India so the Indian retail industry is
divided into two sectors- organized and unorganized.
Organized retail sector refers to the sectors undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc. These include the corporate retail formats of
the exclusive brand outlets, hypermarkets, supermarkets, departmental stores and shopping
malls.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost
retailing, for example, hand cart and pavement vendors, & mobile vendors, the local kirana
shops, owner manned general stores, paan/beedi shops, convenience stores, hardware shop at
the corner of your street selling everything from bathroom fittings to paints and small
construction tools; or the slightly more organized medical store and a host of other small
retail businesses in apparel, electronics, food etc.
3.3.1. Characteristics of unorganized retail
Small-store (kirana) retailing has been one of the easiest ways to generate self-employment,
as it requires limited investment in land, capital and labor. It is generally family run
business, lack of standardization and the retailers who are running this store they are lacking
of education, experience and exposure. This is one of the reasons why productivity of this
sector is approximately 4% that of the U.S. retail industry. Unorganized retail sector is still
predominating over organized sector in India, unorganized retail sector constituting 98%
(twelve million) of total trade, while organized trade accounts only for 2%.
33
India is the only one country having the highest shop density in the world, with 11 outlets per
1000 people (12 million retail shops for about 209 million households). Rather we can see the
democratic scenario in Indian Retail (because of low level of centralization, low capital input
and due to a good number of self organized retail).
India started its Retail Journey since ancient time. In Ancient India there was a concept of
weekly HAAT, where all the buyers & sellers gather in a big market for bartering. It takes a
pretty long times to & step to shape the modern retail. In between these two concepts (i.e.
between ancient retail concept & the modern one there exist modern kirana/ mom and pop
shops or Baniya ki Dukan. Still it is predominating in India so the Indian retail industry is
divided into two sectors- organized and unorganized.
Organized retail sector refers to the sectors undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc. These include the corporate retail formats of
the exclusive brand outlets, hypermarkets, supermarkets, departmental stores and shopping
malls.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost
retailing, for example, hand cart and pavement vendors, & mobile vendors, the local kirana
shops, owner manned general stores, paan/beedi shops, convenience stores, hardware shop at
the corner of your street selling everything from bathroom fittings to paints and small
construction tools; or the slightly more organized medical store and a host of other small
retail businesses in apparel, electronics, food etc.
3.3.1. Characteristics of unorganized retail
Small-store (kirana) retailing has been one of the easiest ways to generate self-employment,
as it requires limited investment in land, capital and labor. It is generally family run
business, lack of standardization and the retailers who are running this store they are lacking
of education, experience and exposure. This is one of the reasons why productivity of this
sector is approximately 4% that of the U.S. retail industry. Unorganized retail sector is still
predominating over organized sector in India, unorganized retail sector constituting 98%
(twelve million) of total trade, while organized trade accounts only for 2%.
33
3.3.2 The reasons for resistance to organized retail:
·In smaller towns and urban areas, there are many families who are traditionally using
these kirana shops/ 'mom and pop' stores offering a wide range of merchandise mix.
Generally these kirana shops are the family business of these small retailers which
they are running for more than one generation.
·These kirana shops are having their own efficient management system and with this
they are efficiently fulfilling the needs of the customer. This is one of the good
reasons why the customer doesn’t want to change their old loyal kirana shop.
·A large number of working class in India is working as daily wage basis, at the end of
the day when they get their wage, they come to this small retail shop to purchase
wheat flour, rice etc for their supper. For them this the only place to have those food
items because purchase quantity is so small that no big retail store would entertain
this.
·Similarly there is another consumer class who are the seasonal worker. During their
unemployment period they use to purchase from this kirana store in credit and when
they get their salary they clear their dues. Now this type of credit facility is not
available in corporate retail store, so this kirana stores are the only place for them to
fulfill their needs.
·Another reason might be the proximity of the store. It is the convenience store for the
customer. In every corner the street an unorganized retail shop can be found that is
hardly a walking distance from the customer’s house. Many times customers prefer to
shop from the nearby kirana shop rather than to drive a long distance organized retail
stores.
3.4 Retail formats in India
34
·In smaller towns and urban areas, there are many families who are traditionally using
these kirana shops/ 'mom and pop' stores offering a wide range of merchandise mix.
Generally these kirana shops are the family business of these small retailers which
they are running for more than one generation.
·These kirana shops are having their own efficient management system and with this
they are efficiently fulfilling the needs of the customer. This is one of the good
reasons why the customer doesn’t want to change their old loyal kirana shop.
·A large number of working class in India is working as daily wage basis, at the end of
the day when they get their wage, they come to this small retail shop to purchase
wheat flour, rice etc for their supper. For them this the only place to have those food
items because purchase quantity is so small that no big retail store would entertain
this.
·Similarly there is another consumer class who are the seasonal worker. During their
unemployment period they use to purchase from this kirana store in credit and when
they get their salary they clear their dues. Now this type of credit facility is not
available in corporate retail store, so this kirana stores are the only place for them to
fulfill their needs.
·Another reason might be the proximity of the store. It is the convenience store for the
customer. In every corner the street an unorganized retail shop can be found that is
hardly a walking distance from the customer’s house. Many times customers prefer to
shop from the nearby kirana shop rather than to drive a long distance organized retail
stores.
3.4 Retail formats in India
34
·Hypermarkets/supermarkets: large self-servicing outlets offering products from a
variety of categories.
·Mom-and-pop stores: they are family owned business catering to small sections;
they are individually handled retail outlets and have a personal touch.
·Departmental stores: are general retail merchandisers offering quality products and
services.
·Convenience stores: are located in residential areas with slightly higher prices goods
due to the convenience offered.
·Shopping malls: the biggest form of retail in India, malls offers customers a mix of
all types of products and services including entertainment and food under a single
roof.
·E-trailers: are retailers providing online buying and selling of products and services.
·Discount stores: these are factory outlets that give discount on the MRP.
·Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and
other small items can be bought via vending machine.
·Category killers: small specialty stores that offer a variety of categories. They are
known as category killers as they focus on specific categories, such as electronics and
sporting goods. This is also known as Multi Brand Outlets or MBO's.
·Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World is a couple of
examples.
3.4.1. Evolution and Trends in Organized Retailing Formats and Retail
Outlets in India
Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the modern
Indian shopper.
Merchandise: food grocery to clothing to spots goods to books to stationery.
Space occupied: 50000 Square feet. And above.
SKUs: (Stock keeping Unit) 20000-30000.
Example: Pantaloon retail’s Big Bazaar, RPG’s Spencer’s (Giant), Vishal mega mart.
35
variety of categories.
·Mom-and-pop stores: they are family owned business catering to small sections;
they are individually handled retail outlets and have a personal touch.
·Departmental stores: are general retail merchandisers offering quality products and
services.
·Convenience stores: are located in residential areas with slightly higher prices goods
due to the convenience offered.
·Shopping malls: the biggest form of retail in India, malls offers customers a mix of
all types of products and services including entertainment and food under a single
roof.
·E-trailers: are retailers providing online buying and selling of products and services.
·Discount stores: these are factory outlets that give discount on the MRP.
·Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and
other small items can be bought via vending machine.
·Category killers: small specialty stores that offer a variety of categories. They are
known as category killers as they focus on specific categories, such as electronics and
sporting goods. This is also known as Multi Brand Outlets or MBO's.
·Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World is a couple of
examples.
3.4.1. Evolution and Trends in Organized Retailing Formats and Retail
Outlets in India
Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the modern
Indian shopper.
Merchandise: food grocery to clothing to spots goods to books to stationery.
Space occupied: 50000 Square feet. And above.
SKUs: (Stock keeping Unit) 20000-30000.
Example: Pantaloon retail’s Big Bazaar, RPG’s Spencer’s (Giant), Vishal mega mart.
35
Supermarket: A subdued version of a hypermarket.
Merchandise: Almost similar to that of a hypermarket but in relatively smaller proposition.
Space occupied: 5000 Sq. ft. or more.
SKUs: (Stock keeping units) Around 10000.
Example: Nilgiris, Apna Bazaar, Trinethra/more.
Convenience store: A subdued version of a supermarket.
Merchandise: Groceries are predominantly sold.
Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.
Example: stores located at the corners of the streets, Reliance Retail’s fresh, More Retail
Department store: A retail establishment which specializes in selling a wide range of
A product without single prominent merchandise line and is usually
a part of a retail chain.
Merchandise: Apparel, household accessories, cosmetics, gifts etc.
Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft.
Example: Landmark Group’s Lifestyle, Trent India Ltd.’s Westside.
Discount store: Standard merchandise sold at lower prices with lower margins and higher
volumes.
Merchandise: A variety of perishable/ non perishable goods.
Example: Viswapriya Group’s Subiksha, Piramal’s TruMart.
Specialty store: It consists of a narrow product line with deep assortment.
Merchandise: Depends on the stores
Example: Bata store deals only with footwear, RPG’s Music World, Crossword.
MBO’s: (Multi Brand outlets), also known as Category Killers. These usually do well in
busy market places and Metros.
Merchandise: Offers several brads across a single product category.
36
Merchandise: Almost similar to that of a hypermarket but in relatively smaller proposition.
Space occupied: 5000 Sq. ft. or more.
SKUs: (Stock keeping units) Around 10000.
Example: Nilgiris, Apna Bazaar, Trinethra/more.
Convenience store: A subdued version of a supermarket.
Merchandise: Groceries are predominantly sold.
Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.
Example: stores located at the corners of the streets, Reliance Retail’s fresh, More Retail
Department store: A retail establishment which specializes in selling a wide range of
A product without single prominent merchandise line and is usually
a part of a retail chain.
Merchandise: Apparel, household accessories, cosmetics, gifts etc.
Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft.
Example: Landmark Group’s Lifestyle, Trent India Ltd.’s Westside.
Discount store: Standard merchandise sold at lower prices with lower margins and higher
volumes.
Merchandise: A variety of perishable/ non perishable goods.
Example: Viswapriya Group’s Subiksha, Piramal’s TruMart.
Specialty store: It consists of a narrow product line with deep assortment.
Merchandise: Depends on the stores
Example: Bata store deals only with footwear, RPG’s Music World, Crossword.
MBO’s: (Multi Brand outlets), also known as Category Killers. These usually do well in
busy market places and Metros.
Merchandise: Offers several brads across a single product category.
36
Kirana stores: The smallest retail formats which are the highest in number (15 million
approx.) in India.
Merchandise: Mostly food and groceries.
Space occupied: 50 sq ft and even smaller ones exist.
Malls: The largest form of organized retailing today located mainly in metro cities, in
Proximity to urban outskirts.
Merchandise: They lend an ideal shopping experience with an amalgamation of product,
Service and entertainment, all under a common roof.
Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.
Example: Pantaloon Retail’s Central, Mumbai’s Iorbit.
3.5 COMPANY PROFILE
37
approx.) in India.
Merchandise: Mostly food and groceries.
Space occupied: 50 sq ft and even smaller ones exist.
Malls: The largest form of organized retailing today located mainly in metro cities, in
Proximity to urban outskirts.
Merchandise: They lend an ideal shopping experience with an amalgamation of product,
Service and entertainment, all under a common roof.
Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.
Example: Pantaloon Retail’s Central, Mumbai’s Iorbit.
3.5 COMPANY PROFILE
37
"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream
it, you can do it." Dhirubhai H. Ambani
3.5.1 Overview
Reliance Industries Limited (RIL) is India's largest private sector company on all major
financial parameters with turnover of Rs1,18,354 crore (US$ 27.23 billion), cash profit of
Rs17,678 crore (US$ 4.07 billion), net profit of Rs11,943 crore (US$ 2.75 billion) and net
worth of Rs63, 967 crore (US$ 14.72 billion) as of March 31, 2007.RILis the first and only
private sector company from India to feature in the Fortune Global 500 list of 'World's
Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits.
RIL is amongst the 25 fastest climbers ranked by Fortune. RIL also features in the Forbes
Global list of world's 400 best big companies and in FT Global 500 list of world's largest
companies
Reliance Industries Limited (RIL) is India's largest private sector company on all major
financial parameters with turnover of Rs. 73,164 crore (US $ 16.7 billion), cash profit of Rs.
12,087 crore (US $ 2.8 billion), net profit of Rs. 7,572 crore (US $ 1.7 billion), net worth of
Rs. 40,403 crore (US $ 9.2 billion), and total assets of Rs. 80,586 crore (US $ 18.4 billion).
RIL is the first and only private sector from India to feature in 2005 Fortune Global 500 list
of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms
of profits. Reliance in now putting up a completely export oriented unit with 30 MMPTA
capacity under Special Economic Zone (SEZ) at Jamnagar. Construction will commence very
shortly and the project is schedule to go into operation by March 2008.
RIL group is about to establish yet another industrial landmark by putting up the world's
largest grass root refinery totally dedicated for exports with an outlay of over Rs. 27,000
crores. RIL group, as a corporate citizen, has always believed in creating "employability"
apart from providing employment. Towards this, it is process of establishing a World Class
38
it, you can do it." Dhirubhai H. Ambani
3.5.1 Overview
Reliance Industries Limited (RIL) is India's largest private sector company on all major
financial parameters with turnover of Rs1,18,354 crore (US$ 27.23 billion), cash profit of
Rs17,678 crore (US$ 4.07 billion), net profit of Rs11,943 crore (US$ 2.75 billion) and net
worth of Rs63, 967 crore (US$ 14.72 billion) as of March 31, 2007.RILis the first and only
private sector company from India to feature in the Fortune Global 500 list of 'World's
Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits.
RIL is amongst the 25 fastest climbers ranked by Fortune. RIL also features in the Forbes
Global list of world's 400 best big companies and in FT Global 500 list of world's largest
companies
Reliance Industries Limited (RIL) is India's largest private sector company on all major
financial parameters with turnover of Rs. 73,164 crore (US $ 16.7 billion), cash profit of Rs.
12,087 crore (US $ 2.8 billion), net profit of Rs. 7,572 crore (US $ 1.7 billion), net worth of
Rs. 40,403 crore (US $ 9.2 billion), and total assets of Rs. 80,586 crore (US $ 18.4 billion).
RIL is the first and only private sector from India to feature in 2005 Fortune Global 500 list
of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms
of profits. Reliance in now putting up a completely export oriented unit with 30 MMPTA
capacity under Special Economic Zone (SEZ) at Jamnagar. Construction will commence very
shortly and the project is schedule to go into operation by March 2008.
RIL group is about to establish yet another industrial landmark by putting up the world's
largest grass root refinery totally dedicated for exports with an outlay of over Rs. 27,000
crores. RIL group, as a corporate citizen, has always believed in creating "employability"
apart from providing employment. Towards this, it is process of establishing a World Class
38
Craft Training Institute This world class facility will have latest generation equipments and
machineries imported from best of class manufacturers and will be located at Jamnagar. The
Scheme We will bring in thousands of youngsters - skilled / semi skilled / partially skilled /
unskilled from all over the country and provided temporary barracks - labour accommodation
with full facilities through contractors. The institute will train them in respective trades with
proper process for "Certification". Current estimate warrants training of (assuming 50% will
be Certified): Welders - 8000, Carpenters - 5000, Pipe Fitters - 5000, Grinders - 5500, Mill
Wright Fitters - 2000 Immediately on certification, they will be absorbed by our contractors
and be deployed on our world scale project at Jamnagar for a period of approx. of 2 years.
Thereafter, Reliance is confident that these skills, which are badly required, will have an
unlimited market and therefore, offer a great earning future prospect to these youngsters
around the globe.
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.
Reliance Fresh is the convenience store format which forms part of the retail business
of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest
in excess of Rs 25000 crores in the next 4 years in their retail division. The company already
has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits
and vegetables, staples, groceries, fresh juice bars and dairy products.
A typical Reliance Fresh store is approximately 3000-4000 square feet and caters to a
catchment area of 2–3 km.
3.5.2 The Reliance Empire
39
machineries imported from best of class manufacturers and will be located at Jamnagar. The
Scheme We will bring in thousands of youngsters - skilled / semi skilled / partially skilled /
unskilled from all over the country and provided temporary barracks - labour accommodation
with full facilities through contractors. The institute will train them in respective trades with
proper process for "Certification". Current estimate warrants training of (assuming 50% will
be Certified): Welders - 8000, Carpenters - 5000, Pipe Fitters - 5000, Grinders - 5500, Mill
Wright Fitters - 2000 Immediately on certification, they will be absorbed by our contractors
and be deployed on our world scale project at Jamnagar for a period of approx. of 2 years.
Thereafter, Reliance is confident that these skills, which are badly required, will have an
unlimited market and therefore, offer a great earning future prospect to these youngsters
around the globe.
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.
Reliance Fresh is the convenience store format which forms part of the retail business
of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest
in excess of Rs 25000 crores in the next 4 years in their retail division. The company already
has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits
and vegetables, staples, groceries, fresh juice bars and dairy products.
A typical Reliance Fresh store is approximately 3000-4000 square feet and caters to a
catchment area of 2–3 km.
3.5.2 The Reliance Empire
39
Reliance being the all encompassing company has entered into all the sectors, retail being
their latest.
Reliance Industries Limited
Chairman and Managing Director: Mukesh Ambani
Market Capitalization: INR 39,609,150,020 (Sept, 2006)
Total Shares Outstanding: 22,405,900 (Sept, 2006)
Closely Held Shares: 11,365,943
Sales: INR 10,512,963,000
According to the company website "1 out of every 4 investors in India is a Reliance
shareholder. RIL is ranked at 342 in the 2006 Fortune Global 500 list among the world’s
largest corporations.
3.5.3 Company History
Post launch, in a dramatic shift in its positioning and mainly due to the circumstances
prevailing in UP, West Bengal and Orissa, it was mentioned recently in news dailies that,
Reliance Retail is moving out of stocking fruits and vegetables. Reliance Retail has decided
to minimize its exposure in the fruit and vegetable business and position Reliance Fresh as a
pure play super market focusing on categories like food, FMCG, home, consumer durables,
IT and wellness, with food accounting for the bulk of the business.
The company may not stock fruit and vegetables in some states. Though Reliance Fresh is
not exiting the fruit and vegetable business altogether, it has decided not to compete with
local vendors partly due to political reasons, and partly due to its inability to create a robust
supply chain. This is quite different from what the firm had originally planned.
When the first Reliance Fresh store opened in Hyderabad last October, not only did the
company said the store’s main focus would be fresh produce like fruits and vegetables at a
much lower price, but also spoke at length about its “farm-to-fork’’ theory. The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way.
40
their latest.
Reliance Industries Limited
Chairman and Managing Director: Mukesh Ambani
Market Capitalization: INR 39,609,150,020 (Sept, 2006)
Total Shares Outstanding: 22,405,900 (Sept, 2006)
Closely Held Shares: 11,365,943
Sales: INR 10,512,963,000
According to the company website "1 out of every 4 investors in India is a Reliance
shareholder. RIL is ranked at 342 in the 2006 Fortune Global 500 list among the world’s
largest corporations.
3.5.3 Company History
Post launch, in a dramatic shift in its positioning and mainly due to the circumstances
prevailing in UP, West Bengal and Orissa, it was mentioned recently in news dailies that,
Reliance Retail is moving out of stocking fruits and vegetables. Reliance Retail has decided
to minimize its exposure in the fruit and vegetable business and position Reliance Fresh as a
pure play super market focusing on categories like food, FMCG, home, consumer durables,
IT and wellness, with food accounting for the bulk of the business.
The company may not stock fruit and vegetables in some states. Though Reliance Fresh is
not exiting the fruit and vegetable business altogether, it has decided not to compete with
local vendors partly due to political reasons, and partly due to its inability to create a robust
supply chain. This is quite different from what the firm had originally planned.
When the first Reliance Fresh store opened in Hyderabad last October, not only did the
company said the store’s main focus would be fresh produce like fruits and vegetables at a
much lower price, but also spoke at length about its “farm-to-fork’’ theory. The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way.
40
Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint,
Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various
formats that Reliance has rolled out.
In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of
Apple Specialty Stores branded as I Store, starting with Bangalore.
Reliance Fresh, the $20 billion Reliance Industries' brand for its grocery outlets, Monday
opened nine new stores in the national capital region (NCR) with an investment of about Rs.8
billion ($180 million).The stores have been opened in Ghaziabad, Faridabad, Noida, Greater
Noida and Gurgaon covering a total area of 19,000 sq ft. Mukesh Ambani's Reliance
Industries Ltd. entered the retail trade last year with an investment of $5.6 billion and has
plans to expand its footprint in the NCR in multiple formats of hypermarkets, supermarkets
and convenience stores. 'We plan to have a pan-India presence and achieve a target of Rs.10
billion revenue by 2010 by which time we hope to complete Phase I,' Raghu Pillai, president
and chief executive of Reliance Retail, said at a press conference here.
'In the first phase we have plans to employ 500,000 people. We are following an all-inclusive
model giving the right affordability across all income groups,' Pillai added. According to him,
Reliance will open 100 stores in the NCR by the quarter ending in June 2007.'We are
aggressively partnering farmers by following a farm-to-fork strategy in our supply chain
management model and ensure that we deliver fresh fruits and vegetables at affordable prices
to our consumers.' Currently, Reliance Fresh has 49 stores across the country covering an
area of 109,000 sq ft. Reliance Fresh also offers a membership and loyalty program –
Reliance One - to deliver customized benefits to frequent shoppers. Currently, it has 200,000
loyalty customers across Hyderabad, Jaipur and Chennai. With a vision to generate inclusive
growth and prosperity for farmers, vendor partners, small shopkeepers and consumers,
Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Group’s
foray into organized retail.
Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organization
that caters to millions of customers, thousands of farmers and vendors. Based on its core
growth strategy of backward integration, RRL has made rapid progress towards building an
entire value chain starting from the farmers to the end consumers.
41
Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various
formats that Reliance has rolled out.
In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of
Apple Specialty Stores branded as I Store, starting with Bangalore.
Reliance Fresh, the $20 billion Reliance Industries' brand for its grocery outlets, Monday
opened nine new stores in the national capital region (NCR) with an investment of about Rs.8
billion ($180 million).The stores have been opened in Ghaziabad, Faridabad, Noida, Greater
Noida and Gurgaon covering a total area of 19,000 sq ft. Mukesh Ambani's Reliance
Industries Ltd. entered the retail trade last year with an investment of $5.6 billion and has
plans to expand its footprint in the NCR in multiple formats of hypermarkets, supermarkets
and convenience stores. 'We plan to have a pan-India presence and achieve a target of Rs.10
billion revenue by 2010 by which time we hope to complete Phase I,' Raghu Pillai, president
and chief executive of Reliance Retail, said at a press conference here.
'In the first phase we have plans to employ 500,000 people. We are following an all-inclusive
model giving the right affordability across all income groups,' Pillai added. According to him,
Reliance will open 100 stores in the NCR by the quarter ending in June 2007.'We are
aggressively partnering farmers by following a farm-to-fork strategy in our supply chain
management model and ensure that we deliver fresh fruits and vegetables at affordable prices
to our consumers.' Currently, Reliance Fresh has 49 stores across the country covering an
area of 109,000 sq ft. Reliance Fresh also offers a membership and loyalty program –
Reliance One - to deliver customized benefits to frequent shoppers. Currently, it has 200,000
loyalty customers across Hyderabad, Jaipur and Chennai. With a vision to generate inclusive
growth and prosperity for farmers, vendor partners, small shopkeepers and consumers,
Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Group’s
foray into organized retail.
Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organization
that caters to millions of customers, thousands of farmers and vendors. Based on its core
growth strategy of backward integration, RRL has made rapid progress towards building an
entire value chain starting from the farmers to the end consumers.
41
In the last year, Reliance Retail Limited (RRL) continued to fulfill its commitment of
enriching Indian consumer’s shopping experience and providing quality merchandise at an
attractive value proposition. More than 3 years into operation, RRL has now expanded its
presence in more than 85 cities across 14 states in India. RRL forged ahead with its
expansion plans and rolled out stores across the country. RRL’s footprint now spans a
network of more than 1,000 stores.
RRL operates several ‘value’ & ‘specialty’ formats. The ‘value’ formats that RRL operates
are: ‘Reliance Fresh’, a neighborhood concept, ‘Reliance Mart’, an all under one roof
supermarket concept & ‘Reliance Super’, a mini-mart concept. The ‘value’ formats offer a
wide range and assortment of products required for daily household needs. The ‘specialty’
formats are: ‘Reliance Digital’, a consumer durables & information technology concept,
‘Reliance Trends’, an apparel & accessories concept, ‘Reliance Wellness’, a health, wellness
& beauty concept, ‘I Store by Reliance Digital’, an exclusive Apple products concept,
‘Reliance Footprint’, a footwear concept, ‘Reliance Jewels’, a jewelers concept, ‘Reliance
Time Out’, a books, music & entertainment concept, ‘Reliance AutoZone’, an automotive
products & services concept and ‘Reliance Living’, a home ware, furniture, modular
kitchens, furnishings concept.
RRL rapidly expanded the stores network it operates through strategic partnerships with
world-class companies such as Marks & Spencer and Pearl Europe. RRL also entered into an
exclusive distribution arrangement with Asics Corporation Japan to market Asics brands of
shoes. and accessories in India. RRL has recently opened its flagship store under its franchise
agreement with Hamleys and plans to expand the store network in the coming year. RRL has
also expanded its presence in business-to business office supplies through its joint venture
with Office Depot.
Through ‘Reliance One’, RRL’s loyalty membership program, RRL enjoys the patronage of
over 5.5 million customers. In the coming year, RRL will continue on its mission to delight
the customers every visit. RRL will continue to provide unprecedented value to customers
across all its formats and stores.
42
enriching Indian consumer’s shopping experience and providing quality merchandise at an
attractive value proposition. More than 3 years into operation, RRL has now expanded its
presence in more than 85 cities across 14 states in India. RRL forged ahead with its
expansion plans and rolled out stores across the country. RRL’s footprint now spans a
network of more than 1,000 stores.
RRL operates several ‘value’ & ‘specialty’ formats. The ‘value’ formats that RRL operates
are: ‘Reliance Fresh’, a neighborhood concept, ‘Reliance Mart’, an all under one roof
supermarket concept & ‘Reliance Super’, a mini-mart concept. The ‘value’ formats offer a
wide range and assortment of products required for daily household needs. The ‘specialty’
formats are: ‘Reliance Digital’, a consumer durables & information technology concept,
‘Reliance Trends’, an apparel & accessories concept, ‘Reliance Wellness’, a health, wellness
& beauty concept, ‘I Store by Reliance Digital’, an exclusive Apple products concept,
‘Reliance Footprint’, a footwear concept, ‘Reliance Jewels’, a jewelers concept, ‘Reliance
Time Out’, a books, music & entertainment concept, ‘Reliance AutoZone’, an automotive
products & services concept and ‘Reliance Living’, a home ware, furniture, modular
kitchens, furnishings concept.
RRL rapidly expanded the stores network it operates through strategic partnerships with
world-class companies such as Marks & Spencer and Pearl Europe. RRL also entered into an
exclusive distribution arrangement with Asics Corporation Japan to market Asics brands of
shoes. and accessories in India. RRL has recently opened its flagship store under its franchise
agreement with Hamleys and plans to expand the store network in the coming year. RRL has
also expanded its presence in business-to business office supplies through its joint venture
with Office Depot.
Through ‘Reliance One’, RRL’s loyalty membership program, RRL enjoys the patronage of
over 5.5 million customers. In the coming year, RRL will continue on its mission to delight
the customers every visit. RRL will continue to provide unprecedented value to customers
across all its formats and stores.
42
3.5.4 Controversy
Recently their stores in Jharkand faced the ire of mobs comprising of local vegetable
vendors. They vandalised and attacked the stores claiming that they were stealing their
livelihoods.
In August 2007, Uttar Pradesh Chief Minister Mayawati ordered to close 10 new stores
keeping view of Law & order situation. In November 2007, Reliance Fresh stores are
attacked by Bharatiya Janshakti Party supporters headed by Uma Bharti.
‘Suicide’ squad against Reliance Fresh outlets
Bhubaneswar/Cuttack: Traders and roadside vendors opposing the opening of Reliance Fresh
outlets in Orissa on Saturday formed a “suicide” squad.
“As many as 100 youth today joined the squad as they prefer to die while fighting rather than
facing starvation,” All-Orissa Roadside Vendors and Small Shop Owners Association
president Pratap Sahu said.
Reports said the vendors formed the squad soon after a meeting. — PTI
But some vegetable vendors don't want a job at Reliance, if offered one, because they want to
be their own boss.
3.5.5 Key Executives
Management Team Mukesh D. Ambani - Chairman & Managing Director
Nikhil R. Meswani - Executive Director
Hital R. Meswani - Executive Director
H.S.Kohli - Executive Director
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. D. V. Kapur
43
Recently their stores in Jharkand faced the ire of mobs comprising of local vegetable
vendors. They vandalised and attacked the stores claiming that they were stealing their
livelihoods.
In August 2007, Uttar Pradesh Chief Minister Mayawati ordered to close 10 new stores
keeping view of Law & order situation. In November 2007, Reliance Fresh stores are
attacked by Bharatiya Janshakti Party supporters headed by Uma Bharti.
‘Suicide’ squad against Reliance Fresh outlets
Bhubaneswar/Cuttack: Traders and roadside vendors opposing the opening of Reliance Fresh
outlets in Orissa on Saturday formed a “suicide” squad.
“As many as 100 youth today joined the squad as they prefer to die while fighting rather than
facing starvation,” All-Orissa Roadside Vendors and Small Shop Owners Association
president Pratap Sahu said.
Reports said the vendors formed the squad soon after a meeting. — PTI
But some vegetable vendors don't want a job at Reliance, if offered one, because they want to
be their own boss.
3.5.5 Key Executives
Management Team Mukesh D. Ambani - Chairman & Managing Director
Nikhil R. Meswani - Executive Director
Hital R. Meswani - Executive Director
H.S.Kohli - Executive Director
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. D. V. Kapur
43
M. P. Modi
S. Venkitaramanan
Prof. Ashok Misra
Prof. Dipak C Jain
Dr. Raghunath Anant Mashelkar
3.5.6 Future Planning:
Company plans to have a pan-India presence by opening stores in 784cities and 600 small
towns and achieve a target of Rs.10 billion revenue by 2010 by which time it hopes to
complete Phase 1. In the first phase company plans to employ 500,000 people. It is following
an all-inclusive model giving the right affordability across all income groups. Company is
aggressively partnering farmers by following a farm-to-fork strategy in its supply chain
management model and ensures that it delivers fresh fruits and vegetables at affordable prices
to consumers. Currently, Reliance Fresh has over 100 stores across the country.
Reliance Fresh also offers a membership and loyalty programmed -Reliance One - to deliver
customized benefits to frequent shoppers. Currently, it has 200,000 loyalty customers across
Hyderabad, Jaipur and Chennai.
Reliance Retail, the 100% subsidiary of Reliance Industries, on October 28 unveiled Reliance
Fresh, the first of its multi-format retail foray involving an investment of Rs 25,000 crore.
Reliance Fresh is the company’s brand for neighborhood fresh-food outlets. It will also sell
kitchen equipment and other edibles. Besides, it has planned hypermarkets, supermarkets,
discount stores, department stores, convenience stores and specialty stores, to be unveiled
shortly.
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.
44
S. Venkitaramanan
Prof. Ashok Misra
Prof. Dipak C Jain
Dr. Raghunath Anant Mashelkar
3.5.6 Future Planning:
Company plans to have a pan-India presence by opening stores in 784cities and 600 small
towns and achieve a target of Rs.10 billion revenue by 2010 by which time it hopes to
complete Phase 1. In the first phase company plans to employ 500,000 people. It is following
an all-inclusive model giving the right affordability across all income groups. Company is
aggressively partnering farmers by following a farm-to-fork strategy in its supply chain
management model and ensures that it delivers fresh fruits and vegetables at affordable prices
to consumers. Currently, Reliance Fresh has over 100 stores across the country.
Reliance Fresh also offers a membership and loyalty programmed -Reliance One - to deliver
customized benefits to frequent shoppers. Currently, it has 200,000 loyalty customers across
Hyderabad, Jaipur and Chennai.
Reliance Retail, the 100% subsidiary of Reliance Industries, on October 28 unveiled Reliance
Fresh, the first of its multi-format retail foray involving an investment of Rs 25,000 crore.
Reliance Fresh is the company’s brand for neighborhood fresh-food outlets. It will also sell
kitchen equipment and other edibles. Besides, it has planned hypermarkets, supermarkets,
discount stores, department stores, convenience stores and specialty stores, to be unveiled
shortly.
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.
44
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.
3.5.7 Farm to Fork Model of Reliance Retail
The Reliance retail company sources say it is setting aside Rs 50,000 crore to buildits farm-
to-fork linkage. Reliance has drawn up plans for a presence in 784 towns and6,000 mandi
(wholesale market) towns with 1,600 rural business hubs to service these. It has already
rolled out 177 Reliance Fresh stores across major towns in 11states. According to a company
report, RIL is targeting a turnover of Rs 40,000 crore in the next few years.
TRADITIONAL MODEL OF RETAIL RELIANCE FARM TO FORK
45
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.
3.5.7 Farm to Fork Model of Reliance Retail
The Reliance retail company sources say it is setting aside Rs 50,000 crore to buildits farm-
to-fork linkage. Reliance has drawn up plans for a presence in 784 towns and6,000 mandi
(wholesale market) towns with 1,600 rural business hubs to service these. It has already
rolled out 177 Reliance Fresh stores across major towns in 11states. According to a company
report, RIL is targeting a turnover of Rs 40,000 crore in the next few years.
TRADITIONAL MODEL OF RETAIL RELIANCE FARM TO FORK
45
3.5.8 Corporate Social Responsibility
Today when most of the companies are busy in making profits by any means, there are few
Ones who are focused to return this society, a part of what they have earned through this
society. Reliance retail is one of them. Following efforts of reliance retail are aimed at
benefiting the society making reliance socially responsible:
1) Reliance Retail aims at recruiting people from the under privileged community in society.
"Hence, we are planning to train students from corporation schools and schools run by
NGOs. And, we consider this as a part of our corporate social responsibility, "he said. Asked
whether the company will take students on an employment basis and pay them a stipend
during the course period, he said that actually, it is planning to charge a "small fee" from
those who want to join the course "as we want to bring in some discipline and regularity
among the students", and will reimburse that once they are inducted into service
2) Farming in India is highly fragmented and subject to harsh climatic conditions: once
harvested, it is very difficult to keep fruits and vegetables fresh. To secure high quality,
Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers
from villages through Collection Centers. With this concept, Reliance has built a business
model generating shared value that links the company supply chain more closely to poor
farmers in Indian villages. Reliance is providing a guaranteed market for the farmers’
produce, reducing transaction costs and training the farmers in better and sustainable farming
practices. This initiative results in higher income and upgrading of skills for the farmers, and
reduced spoilage of produce (up to35 percent) and better quality products f or Reliance retail
stores.
3) Reliance retail has adopted “farm to fork” theory which means it is procuring directly from
the farmers thus offering them quite reasonable prices for their produce as now no
intermediaries are involved. In return Reliance is giving farmers information about how can
farmers improves their productivity. They have centers in villages who apart from providing
information make farmers aware of market rates of different crops so that farmers can choose
crops they want to sow to become profitable. Farmers are provided technical help as well like
information about quality of seeds and fertilizers.
46
Today when most of the companies are busy in making profits by any means, there are few
Ones who are focused to return this society, a part of what they have earned through this
society. Reliance retail is one of them. Following efforts of reliance retail are aimed at
benefiting the society making reliance socially responsible:
1) Reliance Retail aims at recruiting people from the under privileged community in society.
"Hence, we are planning to train students from corporation schools and schools run by
NGOs. And, we consider this as a part of our corporate social responsibility, "he said. Asked
whether the company will take students on an employment basis and pay them a stipend
during the course period, he said that actually, it is planning to charge a "small fee" from
those who want to join the course "as we want to bring in some discipline and regularity
among the students", and will reimburse that once they are inducted into service
2) Farming in India is highly fragmented and subject to harsh climatic conditions: once
harvested, it is very difficult to keep fruits and vegetables fresh. To secure high quality,
Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers
from villages through Collection Centers. With this concept, Reliance has built a business
model generating shared value that links the company supply chain more closely to poor
farmers in Indian villages. Reliance is providing a guaranteed market for the farmers’
produce, reducing transaction costs and training the farmers in better and sustainable farming
practices. This initiative results in higher income and upgrading of skills for the farmers, and
reduced spoilage of produce (up to35 percent) and better quality products f or Reliance retail
stores.
3) Reliance retail has adopted “farm to fork” theory which means it is procuring directly from
the farmers thus offering them quite reasonable prices for their produce as now no
intermediaries are involved. In return Reliance is giving farmers information about how can
farmers improves their productivity. They have centers in villages who apart from providing
information make farmers aware of market rates of different crops so that farmers can choose
crops they want to sow to become profitable. Farmers are provided technical help as well like
information about quality of seeds and fertilizers.
46
Chapter 04
Data Analysis and Interpretation
47
Data Analysis and Interpretation
47
Data Analysis
Data collection is the systematic recording of information; data analysis involves working to
uncover patterns and trends in data sets; data interpretation involves explaining those patterns
and trends.
Analyzing survey data is an important and exciting step in the survey process. It is the time
that you may reveal important facts about your customers, uncover trends that you might not
otherwise have known existed, or provide irrefutable facts to support your plans. By doing in-
depth data comparisons, you can begin to identify relationships between various data that will
help you understand more about your respondents, and guide you towards better decisions.
Here data collected on the basis of questionnaire survey on customer satisfaction on
organized retail outlets is on Reliance in Bangalore.
Walter H De vries, Zeithaml and Berryand Cronin and Taylor (2001). They conducted a
study on Quality of services by considering its various dimensions like reliability,
availability, performance, serviceability, reputation, competent staff, responsiveness and
courtesy, technical facilities, operational facilities, technical procedure and communication.
In contrast “Universal dimensions determining” the quality of services as received by
customers is tangibility, responsiveness, assurance and empathy
Cronin and Taylor (1992) the conceptualization of service quality as a gap between
expectations and performance is inadequate. The research point out the confusion is
pertaining literature over the relationship between service quality and customer satisfaction.
According to that research, the concept of service quality should be customer’s attitude
towards the service, since the concept of satisfaction is defined as a gap between expectations
and performance or disconfirmations of expectations.
48
Data collection is the systematic recording of information; data analysis involves working to
uncover patterns and trends in data sets; data interpretation involves explaining those patterns
and trends.
Analyzing survey data is an important and exciting step in the survey process. It is the time
that you may reveal important facts about your customers, uncover trends that you might not
otherwise have known existed, or provide irrefutable facts to support your plans. By doing in-
depth data comparisons, you can begin to identify relationships between various data that will
help you understand more about your respondents, and guide you towards better decisions.
Here data collected on the basis of questionnaire survey on customer satisfaction on
organized retail outlets is on Reliance in Bangalore.
Walter H De vries, Zeithaml and Berryand Cronin and Taylor (2001). They conducted a
study on Quality of services by considering its various dimensions like reliability,
availability, performance, serviceability, reputation, competent staff, responsiveness and
courtesy, technical facilities, operational facilities, technical procedure and communication.
In contrast “Universal dimensions determining” the quality of services as received by
customers is tangibility, responsiveness, assurance and empathy
Cronin and Taylor (1992) the conceptualization of service quality as a gap between
expectations and performance is inadequate. The research point out the confusion is
pertaining literature over the relationship between service quality and customer satisfaction.
According to that research, the concept of service quality should be customer’s attitude
towards the service, since the concept of satisfaction is defined as a gap between expectations
and performance or disconfirmations of expectations.
48
Table 4.1 Age of respondents
Age Group No of respondents Percentage
18-28 58 58%
29-39 22 22%
40-50 12 12%
51-60 8 8%
> 60 0 0%
Total 100 100%
0
10
20
30
40
50
60
No of Respondents
18-2829-3940-5051-60> 60
Age Group
Age of respondents
No of respondents
Percentage
Fig 4.1
Analysis
From the above graph and table presented above it is evident that majority of the respondents
are of age in between 18-28 years.
Inference
The above figure shows that most of respondents belong to age group between 18-28 years.
Table 4.2 Gender of the Respondents (Gender ratio)
Gender No of Percentage
49
Age Group No of respondents Percentage
18-28 58 58%
29-39 22 22%
40-50 12 12%
51-60 8 8%
> 60 0 0%
Total 100 100%
0
10
20
30
40
50
60
No of Respondents
18-2829-3940-5051-60> 60
Age Group
Age of respondents
No of respondents
Percentage
Fig 4.1
Analysis
From the above graph and table presented above it is evident that majority of the respondents
are of age in between 18-28 years.
Inference
The above figure shows that most of respondents belong to age group between 18-28 years.
Table 4.2 Gender of the Respondents (Gender ratio)
Gender No of Percentage
49
respondents
Male 68 68%
Female 32 32%
Total 100 100%
0
20
40
60
80
No of
respondent
MaleFemale
Gender
Gender Ratio
No of
respondents
Percentage
Fig 4.2
Inference
From the table and bar graph presented above, the distribution of the shoppers is evident.
This question was aimed to identify the distribution between the two genders. It can be
deducted that male respondents are more as compared to female respondents.
Table 4.3 Income of respondents
Income Ratio No of Respondents Percentage
< 10,000 34 34%
10000-20000 40 40%
21000-30000 18 18%
>30000 8 8%
Total 100 100%
50
Male 68 68%
Female 32 32%
Total 100 100%
0
20
40
60
80
No of
respondent
MaleFemale
Gender
Gender Ratio
No of
respondents
Percentage
Fig 4.2
Inference
From the table and bar graph presented above, the distribution of the shoppers is evident.
This question was aimed to identify the distribution between the two genders. It can be
deducted that male respondents are more as compared to female respondents.
Table 4.3 Income of respondents
Income Ratio No of Respondents Percentage
< 10,000 34 34%
10000-20000 40 40%
21000-30000 18 18%
>30000 8 8%
Total 100 100%
50
Income Level
0
10
20
30
40
50
< 10,00010000-2000021000-30000 >30000
Income
No of
respondents
No of
Respondents
Percentage
Fig 4.3
Inference
From the above graph it is evident that most of respondents are having income level in
between 10000-20000.
Table 4.4 Shopping frequency
Particulars No of Respondents Percentage
Daily 10 10%
Weekly 40 40%
Monthly 44 44%
Occasionally 6 6%
Total 100 100%
51
0
10
20
30
40
50
< 10,00010000-2000021000-30000 >30000
Income
No of
respondents
No of
Respondents
Percentage
Fig 4.3
Inference
From the above graph it is evident that most of respondents are having income level in
between 10000-20000.
Table 4.4 Shopping frequency
Particulars No of Respondents Percentage
Daily 10 10%
Weekly 40 40%
Monthly 44 44%
Occasionally 6 6%
Total 100 100%
51
Fig 4.4
Analysis
From the above graph frequency of shopping is evident. Of the 100 respondents it shows that
10% of the respondents do shopping daily, 40% of the respondents do shopping weekly, 44%
of the respondents do shopping monthly and 6% of the respondents shop occasionally.
Inference
The above figure shows that most of the respondents do shopping weekly and monthly. It can
be deduced that people who visit once a month and weekly are those people who visits
various stores for their regular needs and also may be because of the benefits by the stores
such as discounts and offers.
Table 4.5 Preference of respondents towards branded retail outlets and Kirana Shop.
Branded
outlets
No of respondents Percentage
Reliance Fresh 44 44%
More 16 16%
Smart 16 16%
Big Bazar 8 8%
Nilgiris 6 6%
Others 4 4%
Kirana shop 6 6%
Total 100 100%
52
Frequency of Shopping
10%
40%
44%
6%
Daily
Weekly
Monthly
Occasionally
Analysis
From the above graph frequency of shopping is evident. Of the 100 respondents it shows that
10% of the respondents do shopping daily, 40% of the respondents do shopping weekly, 44%
of the respondents do shopping monthly and 6% of the respondents shop occasionally.
Inference
The above figure shows that most of the respondents do shopping weekly and monthly. It can
be deduced that people who visit once a month and weekly are those people who visits
various stores for their regular needs and also may be because of the benefits by the stores
such as discounts and offers.
Table 4.5 Preference of respondents towards branded retail outlets and Kirana Shop.
Branded
outlets
No of respondents Percentage
Reliance Fresh 44 44%
More 16 16%
Smart 16 16%
Big Bazar 8 8%
Nilgiris 6 6%
Others 4 4%
Kirana shop 6 6%
Total 100 100%
52
Frequency of Shopping
10%
40%
44%
6%
Daily
Weekly
Monthly
Occasionally
Fig 4.5
Analysis
From the above graph it is evident that 94% of respondents prefer branded retail outlets in
which Reliance Fresh has a maximum share of 44% which is followed by 16% of More, 16%
of Smart and rest belongs to other stores.
Inference
The above figure shows that most of the respondents prefer shopping in branded retail
outlets. Maximum number of people does shopping in branded retail stores for their regular
needs and also may be because of the benefits by the stores such as discounts and offers.
Table 4.6 Service of Retail outlets
Particulars No of
Respondents
Percentage
Excellent 18 18 %
Good 56 56 %
Satisfactory 20 20 %
Not Satisfactory 6 6 %
Total 100 100
53
0
10
20
30
40
50
No of respondentsPercentage
More
Reliance Fresh
Nilgiris
Big Bazar
Smart
Others
Kirana shop
Service of retail outlets
20%
56%
18%
6%
Excellent
Good
Satisfactory
Not Satisfactory
Analysis
From the above graph it is evident that 94% of respondents prefer branded retail outlets in
which Reliance Fresh has a maximum share of 44% which is followed by 16% of More, 16%
of Smart and rest belongs to other stores.
Inference
The above figure shows that most of the respondents prefer shopping in branded retail
outlets. Maximum number of people does shopping in branded retail stores for their regular
needs and also may be because of the benefits by the stores such as discounts and offers.
Table 4.6 Service of Retail outlets
Particulars No of
Respondents
Percentage
Excellent 18 18 %
Good 56 56 %
Satisfactory 20 20 %
Not Satisfactory 6 6 %
Total 100 100
53
0
10
20
30
40
50
No of respondentsPercentage
More
Reliance Fresh
Nilgiris
Big Bazar
Smart
Others
Kirana shop
Service of retail outlets
20%
56%
18%
6%
Excellent
Good
Satisfactory
Not Satisfactory
Fig 4.6
Analysis
From the above table and graph the satisfaction level respondents is evident with respect to
services provided by the retail outlets. Of the 100 respondents 18% of the respondents are
agreed with excellent rating service. 56% of the respondents agreed with good rating service.
20% of the respondents agreed with satisfactory rating service and 6% of the respondents
agreed with not satisfactory rating service.
Inference
From the responses it can be inferred that most of the respondents are happy with the service
provided by the retail outlets and there are very less people who are not satisfied with the
services provided by retail outlets.
Table 4.7 Expectation of Gifts and discounts From Company
Preference No of Respondents % Respondents
Yes 86 86 %
No 14 14 %
Total 100 100%
Fig 4.7
54
86%
14%
Yes
No
Analysis
From the above table and graph the satisfaction level respondents is evident with respect to
services provided by the retail outlets. Of the 100 respondents 18% of the respondents are
agreed with excellent rating service. 56% of the respondents agreed with good rating service.
20% of the respondents agreed with satisfactory rating service and 6% of the respondents
agreed with not satisfactory rating service.
Inference
From the responses it can be inferred that most of the respondents are happy with the service
provided by the retail outlets and there are very less people who are not satisfied with the
services provided by retail outlets.
Table 4.7 Expectation of Gifts and discounts From Company
Preference No of Respondents % Respondents
Yes 86 86 %
No 14 14 %
Total 100 100%
Fig 4.7
54
86%
14%
Yes
No
Analysis
From the above table and graph the expectation of respondents is evident. Of the 100
respondents it shows that 86% of the respondents except to receive free gifts and discounts
offered by the retail outlets and 14% of the respondents do not expect any free gifts and
discounts.
Inference
Majority of shoppers expect free gifts and discounts from the retail outlets. It can be deduced
that free gifts and discounts attracts more number of customers.
Table 4.8 Perception about ‘Reliance Fresh’ Products
Perception NO of
respondents
Percentage of
respondents
Excellent 8 8 %
Good 58 58 %
Satisfactory 28 28 %
Not Satisfactory 6 6 %
Total 100 100%
Fig 4.8
Analysis
From the above graph the perception of respondents towards “Reliance Fresh” products is
evident. Of the 100 respondents 8% respondents has excellent perception about ‘Reliance
Fresh’ products, 58% of respondents’ has good perception about ‘Reliance Fresh’ products,
55
From the above table and graph the expectation of respondents is evident. Of the 100
respondents it shows that 86% of the respondents except to receive free gifts and discounts
offered by the retail outlets and 14% of the respondents do not expect any free gifts and
discounts.
Inference
Majority of shoppers expect free gifts and discounts from the retail outlets. It can be deduced
that free gifts and discounts attracts more number of customers.
Table 4.8 Perception about ‘Reliance Fresh’ Products
Perception NO of
respondents
Percentage of
respondents
Excellent 8 8 %
Good 58 58 %
Satisfactory 28 28 %
Not Satisfactory 6 6 %
Total 100 100%
Fig 4.8
Analysis
From the above graph the perception of respondents towards “Reliance Fresh” products is
evident. Of the 100 respondents 8% respondents has excellent perception about ‘Reliance
Fresh’ products, 58% of respondents’ has good perception about ‘Reliance Fresh’ products,
55
28% of respondent’s has satisfaction about ‘Reliance Fresh’ products and 6% of respondents
not satisfaction about ‘Reliance Fresh’ products.
Inference
Majority of respondents are satisfied with the products available in Reliance Fresh because of
features like price, quality, variety and brand.
Table 4.9 Factors Influence Purchase of Reliance Fresh Products
Number of respondents
Factors
Ve
ry
Im
p % Imp %
Nor
mal %
Lea
st
im
p %
N
ot
I
m
p
%
Tota
l No
of
resp
onde
nts
Tot
al
%
Price 7676 12 12 6 6 3333100
1
00
Quality8484 10 10 2 2 2222100
1
00
Convenie
nce 2222 66 66 6 6 3333100
1
00
Availabil
ity 3838 54 54 2 2 3333100
1
00
Brand 3434 42 4216164444100
1
00
Freshnes
s 8080 12 12 2 2 3333100
1
00
Image 1414 52 5222226666100
1
00
56
not satisfaction about ‘Reliance Fresh’ products.
Inference
Majority of respondents are satisfied with the products available in Reliance Fresh because of
features like price, quality, variety and brand.
Table 4.9 Factors Influence Purchase of Reliance Fresh Products
Number of respondents
Factors
Ve
ry
Im
p % Imp %
Nor
mal %
Lea
st
im
p %
N
ot
I
m
p
%
Tota
l No
of
resp
onde
nts
Tot
al
%
Price 7676 12 12 6 6 3333100
1
00
Quality8484 10 10 2 2 2222100
1
00
Convenie
nce 2222 66 66 6 6 3333100
1
00
Availabil
ity 3838 54 54 2 2 3333100
1
00
Brand 3434 42 4216164444100
1
00
Freshnes
s 8080 12 12 2 2 3333100
1
00
Image 1414 52 5222226666100
1
00
56
FIG 4.9
Analysis
From the above graph it shows that factors affecting on purchase of more products
Price Factor
76% respondents have rated price very important, 12% rated important, 3% rated least
important, and 3% not important.
Quality factor
84% respondents have rated quality as very important, 10% rated important, 2% rated
normal, 2% rated least important and 2% not important.
Convenience Factor
22% respondents have rated convenience as very important, 66% rated as important, 6%
rated as Normal, 3%rated as least and 3% as not important.
Availability Factor
57
Analysis
From the above graph it shows that factors affecting on purchase of more products
Price Factor
76% respondents have rated price very important, 12% rated important, 3% rated least
important, and 3% not important.
Quality factor
84% respondents have rated quality as very important, 10% rated important, 2% rated
normal, 2% rated least important and 2% not important.
Convenience Factor
22% respondents have rated convenience as very important, 66% rated as important, 6%
rated as Normal, 3%rated as least and 3% as not important.
Availability Factor
57
38% respondents have rated availability as very important, 54% rated as important, 2% rated
as normal, 2% rated least important and 2% not important.
Brand Factor
34% of the respondents have rated brand as very important, 42% rated as important, 16%
rated as normal, 4% rated as least important and 4% not important.
Freshness Factor
80% of the respondents have rated freshness as very important, 12% rated as important, 2%
rated as normal, 3% rated as least important and 3% rated as not important.
Image factor
14% of the respondents have rated image as very important, 52% rated as important, 22%
rated as normal, 6% rated as least important and 6% rated as not important.
Inference
Majority of the customers prefer quality with lesser price along with availability of product.
The other factors which influence the buying behavior of customers are brand, convenience
of the store, freshness and image. The influencing factors differ for different customers
according to their taste and preferences.
Table 4.10 Employees Behavior
Behavior No. of respondents Percentage
Strongly agree 16 16 %
Agree 72 72 %
Somewhat agree 6 6 %
Disagree 6 6 %
Total 100 100 %
58
as normal, 2% rated least important and 2% not important.
Brand Factor
34% of the respondents have rated brand as very important, 42% rated as important, 16%
rated as normal, 4% rated as least important and 4% not important.
Freshness Factor
80% of the respondents have rated freshness as very important, 12% rated as important, 2%
rated as normal, 3% rated as least important and 3% rated as not important.
Image factor
14% of the respondents have rated image as very important, 52% rated as important, 22%
rated as normal, 6% rated as least important and 6% rated as not important.
Inference
Majority of the customers prefer quality with lesser price along with availability of product.
The other factors which influence the buying behavior of customers are brand, convenience
of the store, freshness and image. The influencing factors differ for different customers
according to their taste and preferences.
Table 4.10 Employees Behavior
Behavior No. of respondents Percentage
Strongly agree 16 16 %
Agree 72 72 %
Somewhat agree 6 6 %
Disagree 6 6 %
Total 100 100 %
58
Fig 4.10
Analysis
From the above table and graph the employee behavior towards customers in “Reliance
Fresh” is evident. Of the 100 respondents 72% respondents agree that employees in store are
polite and friendly, 16% have strongly agreed, 6% have somewhat agreed and only 6%
respondents have disagreed about the employee behavior.
Inference
Maximum number of customers that is 72% are happy with behavior of employees in the
Reliance Fresh retail outlets.
Table 4.11Factors Influencing purchase
Factors No. of respondents Percentage
Advertisement 11 11 %
Brand ambassador 4 4 %
Product display 42 42%
Suggestion from
friends & relatives
27 27 %
Others 16 16 %
Total 100 100%
59
Analysis
From the above table and graph the employee behavior towards customers in “Reliance
Fresh” is evident. Of the 100 respondents 72% respondents agree that employees in store are
polite and friendly, 16% have strongly agreed, 6% have somewhat agreed and only 6%
respondents have disagreed about the employee behavior.
Inference
Maximum number of customers that is 72% are happy with behavior of employees in the
Reliance Fresh retail outlets.
Table 4.11Factors Influencing purchase
Factors No. of respondents Percentage
Advertisement 11 11 %
Brand ambassador 4 4 %
Product display 42 42%
Suggestion from
friends & relatives
27 27 %
Others 16 16 %
Total 100 100%
59
Fig 4.11
Analysis
From the table and graph presented above the affect of media towards the purchase of
products is evident. Of the 100 respondents 8% of the respondents are influenced by
advertisement, 4% of the respondents are influenced by brand ambassador, 42% of the
respondents are influenced by product display, 27% of the respondents are influenced by
suggestion from friends and relatives and 17% of the respondents are influenced by other
media.
Inference
The purchase of products is mainly influenced by display of the product and then it is
followed by suggestion from friends and relatives and advertising.
Table 4.12 Price Comparison
Price Range No. of respondents percentage
High 38 38 %
Low 22 22 %
Average 40 40 %
Total 100 100%
60
11%
4%
27%
42%
16%
Advertisement
Brand ambassador
Suggestion ave said thatdents aareinps. 38nced by display of the product and then it is followed by suggestion from friends and relatives,
Product Display
Others
Analysis
From the table and graph presented above the affect of media towards the purchase of
products is evident. Of the 100 respondents 8% of the respondents are influenced by
advertisement, 4% of the respondents are influenced by brand ambassador, 42% of the
respondents are influenced by product display, 27% of the respondents are influenced by
suggestion from friends and relatives and 17% of the respondents are influenced by other
media.
Inference
The purchase of products is mainly influenced by display of the product and then it is
followed by suggestion from friends and relatives and advertising.
Table 4.12 Price Comparison
Price Range No. of respondents percentage
High 38 38 %
Low 22 22 %
Average 40 40 %
Total 100 100%
60
11%
4%
27%
42%
16%
Advertisement
Brand ambassador
Suggestion ave said thatdents aareinps. 38nced by display of the product and then it is followed by suggestion from friends and relatives,
Product Display
Others
Fig 4.12
Analysis
The above table and graph shows comparison of Price of Reliance Fresh products with other
retail outlets and Kirana shops. 40% of the respondents have said that price of Reliance Fresh
products is high. 22% of the respondents said that price of Reliance Fresh products is low and
40% of the respondents have said that price of Reliance Fresh products is Average.
Inference
Analyzing the responses from customers and above table and graph it can be said that price
of the Reliance Fresh products are average as compared to other similar retail stores.
Table 4.13 Satisfaction parameters on Reliance Fresh outlets
Factors V
.
satis
%Satis%Unsatis% V
Unsati
%
T
resp
Total
%
Overall
Quality
29 295353 12 12 6 6100 100
Value for
money
52 524242 3 3 3 3100 100
No.of cash
counters
38 385454 6 6 2 2100 100
Complaint
handling
8 86868 20 20 4 4100 100
61
0
10
20
30
40
High Low Average
No.of Respondents
Analysis
The above table and graph shows comparison of Price of Reliance Fresh products with other
retail outlets and Kirana shops. 40% of the respondents have said that price of Reliance Fresh
products is high. 22% of the respondents said that price of Reliance Fresh products is low and
40% of the respondents have said that price of Reliance Fresh products is Average.
Inference
Analyzing the responses from customers and above table and graph it can be said that price
of the Reliance Fresh products are average as compared to other similar retail stores.
Table 4.13 Satisfaction parameters on Reliance Fresh outlets
Factors V
.
satis
%Satis%Unsatis% V
Unsati
%
T
resp
Total
%
Overall
Quality
29 295353 12 12 6 6100 100
Value for
money
52 524242 3 3 3 3100 100
No.of cash
counters
38 385454 6 6 2 2100 100
Complaint
handling
8 86868 20 20 4 4100 100
61
0
10
20
30
40
High Low Average
No.of Respondents
Assortment26 266868 3 3 3 3100 100
Credit
facility
0 01010 30 30 60 60100 100
Fig 4.13
By analysis of above graph and table we come to know that
Overall quality
From the 100 respondents 29% are very satisfied, 53% are satisfied, 12% are unsatisfied
remaining and 6% are very unsatisfied.
Value for money
Out of 100 respondents 52% are very satisfied, 42% are satisfied, 3% are unsatisfied and 3%
are very unsatisfied.
No of cash counters
Of the 100 respondents 38% are very satisfied, 54% are satisfied, 7% are unsatisfied and 2%
are very unsatisfied.
Complaint Handling
Out of 100 respondents 8% of respondents are very satisfied, 68% of respondents are
satisfied, 20% are unsatisfied, and 4% are very unsatisfied.
Assortment
Of the 100 respondents 26% respondents are very satisfied, 68% are satisfied, 3% are
unsatisfied and 3% are very unsatisfied.
Credit facility
62
Credit
facility
0 01010 30 30 60 60100 100
Fig 4.13
By analysis of above graph and table we come to know that
Overall quality
From the 100 respondents 29% are very satisfied, 53% are satisfied, 12% are unsatisfied
remaining and 6% are very unsatisfied.
Value for money
Out of 100 respondents 52% are very satisfied, 42% are satisfied, 3% are unsatisfied and 3%
are very unsatisfied.
No of cash counters
Of the 100 respondents 38% are very satisfied, 54% are satisfied, 7% are unsatisfied and 2%
are very unsatisfied.
Complaint Handling
Out of 100 respondents 8% of respondents are very satisfied, 68% of respondents are
satisfied, 20% are unsatisfied, and 4% are very unsatisfied.
Assortment
Of the 100 respondents 26% respondents are very satisfied, 68% are satisfied, 3% are
unsatisfied and 3% are very unsatisfied.
Credit facility
62
Out of 100 respondents 0% respondents very satisfied, 10% are satisfied, 30% are unsatisfied
and 70% are very unsatisfied.
Inference
Above data shows that most of the respondents are satisfied with quality of the product,
service, and value for money, number of cash counters and assortment of the product in store.
Customers are very unsatisfied with the credit facility provided by retail outlets.
Table 4.14 Satisfaction level
Rating No. of
respondents
Percentage
Very satisfied 12 12 %
Satisfied 70 74 %
Not sure 11 11 %
Unsatisfied 7 7 %
Total 100 100%
Fig 4.14
Analysis
The above graph shows overall satisfaction level of Reliance Fresh products. 12% of the
respondents are very much satisfied with Reliance Fresh products, 70% of the respondents
are satisfied with the Reliance Fresh products, 11% of the respondents are not sure and 7% of
the respondents are unsatisfied with the Reliance Fresh products.
Inference
63
Satisfaction level
Very satisfied
Satisfied
Not sure
Unsatisfied
and 70% are very unsatisfied.
Inference
Above data shows that most of the respondents are satisfied with quality of the product,
service, and value for money, number of cash counters and assortment of the product in store.
Customers are very unsatisfied with the credit facility provided by retail outlets.
Table 4.14 Satisfaction level
Rating No. of
respondents
Percentage
Very satisfied 12 12 %
Satisfied 70 74 %
Not sure 11 11 %
Unsatisfied 7 7 %
Total 100 100%
Fig 4.14
Analysis
The above graph shows overall satisfaction level of Reliance Fresh products. 12% of the
respondents are very much satisfied with Reliance Fresh products, 70% of the respondents
are satisfied with the Reliance Fresh products, 11% of the respondents are not sure and 7% of
the respondents are unsatisfied with the Reliance Fresh products.
Inference
63
Satisfaction level
Very satisfied
Satisfied
Not sure
Unsatisfied
Analyzing the responses from customers and above table and graph it can be said that
maximum number of customers are satisfied with the ‘Reliance Fresh’ products.
Table 4.15 Service Rate of Kirana shops
Rate No. of respondents Percentage
Excellent 5 5 %
Good 17 17 %
Satisfactory 28 28 %
Not Satisfactory 50 50 %
Total 100 100 %
Fig 4.15
Analysis
The above figure shows the satisfaction level of customers with respect to services provided
by the Kirana shop. Of the 100 respondents 5% rated excellent, 17% rated as good, 28%
rated as satisfactory and 50% respondents rated as not satisfactory.
Inference
From this analysis we come to know that most of the customers are moving towards retails
stores rather than Kirana shops. Service provided by the stores is better than Kirana shop.
Table 4.16 Price differentiation
Price Range No of respondents % of respondents
High 58 58 %
Low 7 7 %
Average 35 35 %
Total 100 100 %
64
maximum number of customers are satisfied with the ‘Reliance Fresh’ products.
Table 4.15 Service Rate of Kirana shops
Rate No. of respondents Percentage
Excellent 5 5 %
Good 17 17 %
Satisfactory 28 28 %
Not Satisfactory 50 50 %
Total 100 100 %
Fig 4.15
Analysis
The above figure shows the satisfaction level of customers with respect to services provided
by the Kirana shop. Of the 100 respondents 5% rated excellent, 17% rated as good, 28%
rated as satisfactory and 50% respondents rated as not satisfactory.
Inference
From this analysis we come to know that most of the customers are moving towards retails
stores rather than Kirana shops. Service provided by the stores is better than Kirana shop.
Table 4.16 Price differentiation
Price Range No of respondents % of respondents
High 58 58 %
Low 7 7 %
Average 35 35 %
Total 100 100 %
64
Fig 4.16
Analysis
The above graph shows the price differentiation between ‘Reliance Fresh’ retail outlets and
Kirana shops. Of the 100 respondents 58% of respondents rated as high, 35% rated as
average and only 7% respondents rated as low.
Inference
From this analysis we come to know that price of retail outlets is more as compared to kirana
stores because of variety, quality and brand availability.
Table 4.17 Future trend in retail sector
Rating No of respondents % of respondents
Strongly agree 41 41%
Agree 44 44%
Somewhat agree 10 10%
Disagree 5 0%
Strongly disagree 0 0%
Total 100 100%
65
Analysis
The above graph shows the price differentiation between ‘Reliance Fresh’ retail outlets and
Kirana shops. Of the 100 respondents 58% of respondents rated as high, 35% rated as
average and only 7% respondents rated as low.
Inference
From this analysis we come to know that price of retail outlets is more as compared to kirana
stores because of variety, quality and brand availability.
Table 4.17 Future trend in retail sector
Rating No of respondents % of respondents
Strongly agree 41 41%
Agree 44 44%
Somewhat agree 10 10%
Disagree 5 0%
Strongly disagree 0 0%
Total 100 100%
65
Future trend in retail
Strongly agree
Agree
Some what
agree
Disagree
Strongly
disagree
Fig 4.17
Analysis
From the graph and table presented above future aspect of retail outlets is evident. Of the 100
respondents 41% of the respondents strongly agree with the future trend, 44% are agreed,
10% are somewhat agree, 5% disagrees and 0% strongly disagrees with the future trend.
Inference
Future trend about retail shopping is very high.
Table 4.18: Recommendation of Stores
Stores Respondents Percentage
Reliance Fresh 33 33 %
Nilgiris 14 14 %
Big Bazar 20 20 %
More 24 24 %
Smart 9 9 %
66
Strongly agree
Agree
Some what
agree
Disagree
Strongly
disagree
Fig 4.17
Analysis
From the graph and table presented above future aspect of retail outlets is evident. Of the 100
respondents 41% of the respondents strongly agree with the future trend, 44% are agreed,
10% are somewhat agree, 5% disagrees and 0% strongly disagrees with the future trend.
Inference
Future trend about retail shopping is very high.
Table 4.18: Recommendation of Stores
Stores Respondents Percentage
Reliance Fresh 33 33 %
Nilgiris 14 14 %
Big Bazar 20 20 %
More 24 24 %
Smart 9 9 %
66
Figure4.18
Analysis
From the above table and chart it is evident that how many respondents are satisfied with the
store and are willing to recommend the various stores to their friends and relatives for
shopping. Of the 100 respondents 33% recommended Reliance Fresh, 24% recommended
More, 20% recommended Big Bazar, 14% recommended Nilgiris and 9% respondents
recommended Smart for shopping.
Inference
Shoppers visit to many different stores to get more effective price, quality, varieties and other
benefit provided by the stores such as discounts and offers which plays an important role to
provide satisfaction. But they recommend the store when they get the full satisfaction. The
mostly recommended store for shopping is listed in the following descending order: Reliance
Fresh, More, Big Bazar, Nilgiris and Smart.
67
Analysis
From the above table and chart it is evident that how many respondents are satisfied with the
store and are willing to recommend the various stores to their friends and relatives for
shopping. Of the 100 respondents 33% recommended Reliance Fresh, 24% recommended
More, 20% recommended Big Bazar, 14% recommended Nilgiris and 9% respondents
recommended Smart for shopping.
Inference
Shoppers visit to many different stores to get more effective price, quality, varieties and other
benefit provided by the stores such as discounts and offers which plays an important role to
provide satisfaction. But they recommend the store when they get the full satisfaction. The
mostly recommended store for shopping is listed in the following descending order: Reliance
Fresh, More, Big Bazar, Nilgiris and Smart.
67
Chapter 05
68
68
Findings
5.1 Findings
In the survey, interviews and study conducted above, I came across many factors that
influence the consumers’ satisfaction on organized Reliance Fresh retail store and their
subsequent shopping and buying decisions. Here, I present the findings gathered and the
suggestions I offer to companies based on the data gathered and analyzed.
·The number of male respondents was more that is 68% as compared to the female
respondents that was only 38%.
·40% of respondents fall under the income category of 10000 to 20000.
·70% of the shoppers who visit retail outlets regularly are the youth between the ages
of 18 to 39 years.
·The survey indicates that the 44% of the respondents visit the retail store once a
month and 40% of the respondents visit weekly.
·The most preferred store by respondents is Reliance Fresh that is 44%.
69
5.1 Findings
In the survey, interviews and study conducted above, I came across many factors that
influence the consumers’ satisfaction on organized Reliance Fresh retail store and their
subsequent shopping and buying decisions. Here, I present the findings gathered and the
suggestions I offer to companies based on the data gathered and analyzed.
·The number of male respondents was more that is 68% as compared to the female
respondents that was only 38%.
·40% of respondents fall under the income category of 10000 to 20000.
·70% of the shoppers who visit retail outlets regularly are the youth between the ages
of 18 to 39 years.
·The survey indicates that the 44% of the respondents visit the retail store once a
month and 40% of the respondents visit weekly.
·The most preferred store by respondents is Reliance Fresh that is 44%.
69
·Compared to competitors Reliance Fresh is the most visited store to shop.
·Due to competition respondents have different favourite stores according to their taste
and preferences.
·The highest number of response is attributed to Reliance Fresh for attracting people of
many income groups.
·Mostly customers are satisfied with the service provided by the retail stores.
·Stores performing well in attracting the customers.
·Reliance Fresh provides better shopping experience.
·86% of the respondents are expecting huge discounts and offers from Reliance Fresh
stores.
·Cleanliness and hygiene maintained in the store is up to the mark.
·Majority of customers prefer retail outlets for shopping.
·Forty four percent of customer prefer to purchase products on Reliance Fresh retail
outlets that indicates customers are attracted towards Reliance Fresh outlets it
indicates it has a good market potential in future.
·Majority of the respondents are happy with the behaviour of the employees towards
customer service.
·Service provided by the retail stores is very good as compared to the Kirana stores.
·The majority of customers are aware about Reliance Fresh advertisements, product
display, suggestion from friends and relatives and there is a lot of scope to promote
through print media.
·The main parameters for purchase in preferred store are price, quality and variety.
·Many of the people go for unplanned shopping.
70
·Due to competition respondents have different favourite stores according to their taste
and preferences.
·The highest number of response is attributed to Reliance Fresh for attracting people of
many income groups.
·Mostly customers are satisfied with the service provided by the retail stores.
·Stores performing well in attracting the customers.
·Reliance Fresh provides better shopping experience.
·86% of the respondents are expecting huge discounts and offers from Reliance Fresh
stores.
·Cleanliness and hygiene maintained in the store is up to the mark.
·Majority of customers prefer retail outlets for shopping.
·Forty four percent of customer prefer to purchase products on Reliance Fresh retail
outlets that indicates customers are attracted towards Reliance Fresh outlets it
indicates it has a good market potential in future.
·Majority of the respondents are happy with the behaviour of the employees towards
customer service.
·Service provided by the retail stores is very good as compared to the Kirana stores.
·The majority of customers are aware about Reliance Fresh advertisements, product
display, suggestion from friends and relatives and there is a lot of scope to promote
through print media.
·The main parameters for purchase in preferred store are price, quality and variety.
·Many of the people go for unplanned shopping.
70
·Most customers prefer shopping at retail outlet due to the wide assortment of
products available.
·Giving gifts, offers and discounts have more effect on consumer buying decisions.
·The study reveals that the employees in the retail stores are not pressurizing
customers to purchase.
·It is evident that majority of the respondents are more concerned with quality and
price of the products provided in the retail stores.
·Satisfaction towards retail stores is highly dependent on price & quality of product.
·Giving gifts, offers and discounts have more effect on consumer buying decisions.
·Maximum number of the respondents are shopping in retail outlets it shows that
future trend and growth of retail sector is very high.
·Satisfaction level of respondents on Reliance products shows that Reliance Fresh has
good quality products.
·Customer Service provided by the Kirana stores is satisfactory but most of the
respondents are willing to visit the retail outlet.
·Reliance Fresh is the most recommended store by the respondents to their friends and
relatives for shopping.
71
products available.
·Giving gifts, offers and discounts have more effect on consumer buying decisions.
·The study reveals that the employees in the retail stores are not pressurizing
customers to purchase.
·It is evident that majority of the respondents are more concerned with quality and
price of the products provided in the retail stores.
·Satisfaction towards retail stores is highly dependent on price & quality of product.
·Giving gifts, offers and discounts have more effect on consumer buying decisions.
·Maximum number of the respondents are shopping in retail outlets it shows that
future trend and growth of retail sector is very high.
·Satisfaction level of respondents on Reliance products shows that Reliance Fresh has
good quality products.
·Customer Service provided by the Kirana stores is satisfactory but most of the
respondents are willing to visit the retail outlet.
·Reliance Fresh is the most recommended store by the respondents to their friends and
relatives for shopping.
71
Chapter 06
Suggestions and Conclusion
6.1 Suggestions
·Create awareness & manage home delivery services properly.
·There should be proper assortment of various product categories.
·Cleanliness and hygiene should be maintained regularly.
·Proper training should be provided to sales person so that they can deal with the
customer efficiently and demonstrate about the products.
·Various schemes and festival offers, cash discounts on bulk purchase can be provided
to attract new customers.
72
Suggestions and Conclusion
6.1 Suggestions
·Create awareness & manage home delivery services properly.
·There should be proper assortment of various product categories.
·Cleanliness and hygiene should be maintained regularly.
·Proper training should be provided to sales person so that they can deal with the
customer efficiently and demonstrate about the products.
·Various schemes and festival offers, cash discounts on bulk purchase can be provided
to attract new customers.
72
·Providing credit facility to loyal customers it increases sales volume.
·Most of the customers are expecting gifts, discounts, offers so Reliance Fresh has to
introduce special benefits on huge purchase.
·Reliance Fresh has to improve promotion strategy.
·Selecting the store location is very important. It may includes parking space for
vehicles, lighting and fixtures arrangement of merchandise, location of billing
counters
·Quality and variety of the products should be up to the mark, in Retail stores so that it
attracts more number of customers.
·Different advertising medium should be adopted to bring awareness in shoppers about
the retail store and its product.
·There should be proper assortment of various product categories.
·In an era of hyper competition retailers could adopt E- retailing which would benefit
to deliver better services, assortments, products information, speed, price and so on.
·International brands could be made available in retail stores.
·The no. of cash counters need to be increased, keeping in view the customer traffic
intensity.
6.2 Conclusion
The study is an attempt to measure customer’s satisfaction at Reliance Fresh outlets in
Bangalore. The customers are the main asset for any organization, without satisfying them no
organization can be run well. Customer satisfaction towards retail stores is affected by
various factors. This survey was meant to identify the customer satisfaction level towards
Reliance Fresh retail stores. Findings of this research suggest that the level of customer
73
·Most of the customers are expecting gifts, discounts, offers so Reliance Fresh has to
introduce special benefits on huge purchase.
·Reliance Fresh has to improve promotion strategy.
·Selecting the store location is very important. It may includes parking space for
vehicles, lighting and fixtures arrangement of merchandise, location of billing
counters
·Quality and variety of the products should be up to the mark, in Retail stores so that it
attracts more number of customers.
·Different advertising medium should be adopted to bring awareness in shoppers about
the retail store and its product.
·There should be proper assortment of various product categories.
·In an era of hyper competition retailers could adopt E- retailing which would benefit
to deliver better services, assortments, products information, speed, price and so on.
·International brands could be made available in retail stores.
·The no. of cash counters need to be increased, keeping in view the customer traffic
intensity.
6.2 Conclusion
The study is an attempt to measure customer’s satisfaction at Reliance Fresh outlets in
Bangalore. The customers are the main asset for any organization, without satisfying them no
organization can be run well. Customer satisfaction towards retail stores is affected by
various factors. This survey was meant to identify the customer satisfaction level towards
Reliance Fresh retail stores. Findings of this research suggest that the level of customer
73
satisfaction is highly affected by the quality and price of the products, wide range of products
and location and conveyance are more attracting customers to visit the retail outlet.
It is found that most of the customers of Reliance Fresh retail store Bangalore are satisfied by
the quality of service, convenience, complaint handling, and employee’s behaviour
availability of products, branded products. But the customers are not satisfied with the credit
facility, high price and lesser number of outlets. The analysis shows that Reliance Fresh
outlets have been fairly successful with their marketing strategies and customer retention, but
they still have to upgrade services like more efficient billing, better parking facilities and
wider range of product availability to meet the competition.
The store should concentrate more on the F & V (fruits and vegetables) section .As it is
perishable in nature and has a short shelf life, it require more concentration. Store should take
care of indent because proper indent can solve half of the problem and the rest can be
handled by following various practices like reducing wastage by the means of proper
handling of F&V (fruits and vegetables). This includes treatment of green vegetables, proper
cleaning etc. and last but not the least by increasing the sales not only of F&V. But also for
other products which is only possible by retaining our customers by the way of promotions.
From the study and research survey I can conclude that the Reliance Fresh is a good retail
outlet for shopping comparing to other retail outlets such as More, Big Bazar, Smart, Nilgiris
etc.
The strategy of Reliance fresh is very effective as they know very well how to attract
customers, which is reflected in the vast custom they enjoy in relation to others. A good and
friendly behaviour of sales personnel’s in the store is also a reason for increase in sales. Due
to the upsurge of the retail sector, unorganised sectors are perishing because of their old
concepts, poor service, non - competitive pricing etc. Therefore they have to upgrade their
performance in order to compete with the big leagues.
To conclude it can be said that most of the Reliance Fresh customers are happy with the
service received. More, Nilgiris, Total, Smart, Big Bazaar are tough competitors of Reliance
Fresh even though Reliance Fresh is trying hard to attract the customers by introducing new
offers schemes etc to capture the market share. According to customer there is huge potential
for increasing market share of supermarket. Findings of this research suggest that the level of
customer satisfaction is highly dependent on various parameters such as price, brand,
74
and location and conveyance are more attracting customers to visit the retail outlet.
It is found that most of the customers of Reliance Fresh retail store Bangalore are satisfied by
the quality of service, convenience, complaint handling, and employee’s behaviour
availability of products, branded products. But the customers are not satisfied with the credit
facility, high price and lesser number of outlets. The analysis shows that Reliance Fresh
outlets have been fairly successful with their marketing strategies and customer retention, but
they still have to upgrade services like more efficient billing, better parking facilities and
wider range of product availability to meet the competition.
The store should concentrate more on the F & V (fruits and vegetables) section .As it is
perishable in nature and has a short shelf life, it require more concentration. Store should take
care of indent because proper indent can solve half of the problem and the rest can be
handled by following various practices like reducing wastage by the means of proper
handling of F&V (fruits and vegetables). This includes treatment of green vegetables, proper
cleaning etc. and last but not the least by increasing the sales not only of F&V. But also for
other products which is only possible by retaining our customers by the way of promotions.
From the study and research survey I can conclude that the Reliance Fresh is a good retail
outlet for shopping comparing to other retail outlets such as More, Big Bazar, Smart, Nilgiris
etc.
The strategy of Reliance fresh is very effective as they know very well how to attract
customers, which is reflected in the vast custom they enjoy in relation to others. A good and
friendly behaviour of sales personnel’s in the store is also a reason for increase in sales. Due
to the upsurge of the retail sector, unorganised sectors are perishing because of their old
concepts, poor service, non - competitive pricing etc. Therefore they have to upgrade their
performance in order to compete with the big leagues.
To conclude it can be said that most of the Reliance Fresh customers are happy with the
service received. More, Nilgiris, Total, Smart, Big Bazaar are tough competitors of Reliance
Fresh even though Reliance Fresh is trying hard to attract the customers by introducing new
offers schemes etc to capture the market share. According to customer there is huge potential
for increasing market share of supermarket. Findings of this research suggest that the level of
customer satisfaction is highly dependent on various parameters such as price, brand,
74
customer service, quality and variety of the products. Hence it is very much important for the
retail stores to consider all those parameters to enhance the level of customer satisfaction.
Bibliography
Books:
·Schiffman Leon.Gand Leslie Lazar Kanuk; Consumer Behavior; Pearson Education;
7
th
edition;2002
75
retail stores to consider all those parameters to enhance the level of customer satisfaction.
Bibliography
Books:
·Schiffman Leon.Gand Leslie Lazar Kanuk; Consumer Behavior; Pearson Education;
7
th
edition;2002
75
·Levy Michael;Retailing Management;Tata McGraw-Hill, New Delhi,5
th
edition;2004
·Kothari.C.R;Research Methodology;New Age International(P) Ltd. New Delhi,2
nd
edition;2009
·Zeithamil Valarie,A,Service Marketing;Newyork McGraw-Hill
Websites:
·http://www.wikipedia.com
·http://www.researchindia.com
·http://www.slideshare.net/jas.bhatia/reliancefresh
·http://corporate.reliance.com/home.aspx
·http://retail.about.com/od/location/a/selecting_site_2.htm
Magazines & Journal:
1.Indian journal of marketing
2.Retail Magazine by Abijit Ghosh
3.Business line (catalyst)
4.Economic Times(Brand Equity)
5.Business World
Annexure
Questionnaire
Dear Sir/ Madam
I am Ranjan Kumar, student of MBA IV Sem, Acharya institute of management and sciences
Peenya Bangalore. I am undertaking a dissertation project work as a part of my academics
doing this survey in order to a study measuring customer satisfaction in Reliance Fresh
outlets in Bangalore. I kindly request you to co-operate with me for few minutes and respond
76
th
edition;2004
·Kothari.C.R;Research Methodology;New Age International(P) Ltd. New Delhi,2
nd
edition;2009
·Zeithamil Valarie,A,Service Marketing;Newyork McGraw-Hill
Websites:
·http://www.wikipedia.com
·http://www.researchindia.com
·http://www.slideshare.net/jas.bhatia/reliancefresh
·http://corporate.reliance.com/home.aspx
·http://retail.about.com/od/location/a/selecting_site_2.htm
Magazines & Journal:
1.Indian journal of marketing
2.Retail Magazine by Abijit Ghosh
3.Business line (catalyst)
4.Economic Times(Brand Equity)
5.Business World
Annexure
Questionnaire
Dear Sir/ Madam
I am Ranjan Kumar, student of MBA IV Sem, Acharya institute of management and sciences
Peenya Bangalore. I am undertaking a dissertation project work as a part of my academics
doing this survey in order to a study measuring customer satisfaction in Reliance Fresh
outlets in Bangalore. I kindly request you to co-operate with me for few minutes and respond
76
to the following questions and I assure that the information provided by you will be kept
confidential and will use only for academics purpose.
Ranjan Kumar (09SKCMA059)
Personal data
Name :
Age :
Sex :
Contact details :
Occupation :
Income :
1) How often do you do your shopping?
i) Daily □ ii) Weekly □ iii) Monthly □ iv) Occasionally □
2) Which one do you prefer more
A) Branded retail outlets, if yes specify
a)Reliance fresh □ b)More □ c) Nilgiris □ d)Big market □ e) Smart □ f) Other □
B)Kirana shops
If yes then go to Q.No 12 & 13
3) Service provided by retail outlets is
i) Excellent ii) Good iii) satisfactory iv) Not satisfactory
4) Do you expect gifts, discounts etc from the company
i) Yes ii) No
5) What is your perception about ‘Reliance Fresh’ products
i) Excellent ii) Good iii) satisfactory iv) Not satisfactory
6) How much importance do you give to the following factors, when you
purchase a “Reliance Fresh ’’retail products.
Factors
Very
Important
importantNormalLeast
important
Not
Important
Price
Quality
Convenience
Availability
Brand
Freshness
Image
7) The employees at the store are polite and friendly
i) Strongly agree ii) Agree iii) Somewhat agree iv) Disagree □
8) Which of these factors affect your purchase?
i) Advertisement □ ii) Brand ambassador □ iii) Product display □
iv) Suggestion from friends & relatives □ v) Others □
9) How is the price of ‘Reliance Fresh’ products as compared to the other retail outlets
and kirana shops
i) High ii) Low iii) Average
10) How do satisfied with following parameters of Reliance Fresh outlets
ParticularsVery
satisfied
SatisfiedUnsatisfiedVery
Unsatisfied
77
confidential and will use only for academics purpose.
Ranjan Kumar (09SKCMA059)
Personal data
Name :
Age :
Sex :
Contact details :
Occupation :
Income :
1) How often do you do your shopping?
i) Daily □ ii) Weekly □ iii) Monthly □ iv) Occasionally □
2) Which one do you prefer more
A) Branded retail outlets, if yes specify
a)Reliance fresh □ b)More □ c) Nilgiris □ d)Big market □ e) Smart □ f) Other □
B)Kirana shops
If yes then go to Q.No 12 & 13
3) Service provided by retail outlets is
i) Excellent ii) Good iii) satisfactory iv) Not satisfactory
4) Do you expect gifts, discounts etc from the company
i) Yes ii) No
5) What is your perception about ‘Reliance Fresh’ products
i) Excellent ii) Good iii) satisfactory iv) Not satisfactory
6) How much importance do you give to the following factors, when you
purchase a “Reliance Fresh ’’retail products.
Factors
Very
Important
importantNormalLeast
important
Not
Important
Price
Quality
Convenience
Availability
Brand
Freshness
Image
7) The employees at the store are polite and friendly
i) Strongly agree ii) Agree iii) Somewhat agree iv) Disagree □
8) Which of these factors affect your purchase?
i) Advertisement □ ii) Brand ambassador □ iii) Product display □
iv) Suggestion from friends & relatives □ v) Others □
9) How is the price of ‘Reliance Fresh’ products as compared to the other retail outlets
and kirana shops
i) High ii) Low iii) Average
10) How do satisfied with following parameters of Reliance Fresh outlets
ParticularsVery
satisfied
SatisfiedUnsatisfiedVery
Unsatisfied
77
Overall
Quality
Value
for money
No. of cash
Counters
Complaint
handling
Assortment
(Variety&
Choice )
Credit
facility
11) Overall how you are satisfied with ‘Reliance Fresh’ outlets
i) Very satisfied □ ii) Satisfied □ iii) Not sure □ iv) Unsatisfied □
12) Service provided by kirana shop is
i) Excellent ii) Good iii) satisfactory iv) Not satisfactory □
13) How is the price of Kirana products as compared to the ‘Reliance Fresh’ retail
outlets.
i) High □ ii) Low □ iii) Average □
14) Do you think the future trend – the market share of organized retail will increase
i) Strongly agree □ ii) Agree □ iii) Somewhat agree □
iv) Disagree □ v) Strongly disagree □
15) Refer the Retail Store.
a)Reliance fresh □ b)More □ c) Nilgiris □ d)Big market □ e) Smart □
16) If any additional comments on Reliance products regarding customer
satisfaction
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………
Thanking you
78
Quality
Value
for money
No. of cash
Counters
Complaint
handling
Assortment
(Variety&
Choice )
Credit
facility
11) Overall how you are satisfied with ‘Reliance Fresh’ outlets
i) Very satisfied □ ii) Satisfied □ iii) Not sure □ iv) Unsatisfied □
12) Service provided by kirana shop is
i) Excellent ii) Good iii) satisfactory iv) Not satisfactory □
13) How is the price of Kirana products as compared to the ‘Reliance Fresh’ retail
outlets.
i) High □ ii) Low □ iii) Average □
14) Do you think the future trend – the market share of organized retail will increase
i) Strongly agree □ ii) Agree □ iii) Somewhat agree □
iv) Disagree □ v) Strongly disagree □
15) Refer the Retail Store.
a)Reliance fresh □ b)More □ c) Nilgiris □ d)Big market □ e) Smart □
16) If any additional comments on Reliance products regarding customer
satisfaction
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………
Thanking you
78
Tags
Categories
GeneralDownload
Download Slideshow Get the original presentation fileQuick Actions
Statistics
- Views 88,422
- Slides 78
- Favorites 104
- Age 5002 days
Related Slideshows
22
Pray For The Peace Of Jerusalem and You Will Prosper
RodolfoMoralesMarcuc
32 views
26
Don_t_Waste_Your_Life_God.....powerpoint
chalobrido8
33 views
31
VILLASUR_FACTORS_TO_CONSIDER_IN_PLATING_SALAD_10-13.pdf
JaiJai148317
31 views
14
Fertility awareness methods for women in the society
Isaiah47
30 views
35
Chapter 5 Arithmetic Functions Computer Organisation and Architecture
RitikSharma297999
27 views
5
syakira bhasa inggris (1) (1).pptx.......
ourcommunity56
29 views