66242697 Reliance Mart Final

7/28/2019 66242697 Reliance Mart Final

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Introduction to Retailing sector

Retailing sector of India can be split into two segments. They are the informal and the formalretailing sector. The informal retailing sector is comprised of small retailers. For this sector, it

is very difficult to implement the tax laws. There is widespread tax evasion. It is also

cumbersome to regulate the labor laws in this sector. As far as the formal retailing sector is

concerned, it is comprised of large retailers. Stringent tax and labor laws are implemented in

this sector.

If the retail industry is divided on the basis of retail formats then it can be split into the modern

format retailers and the traditional format retailers. The modern format retailers comprise of

the supermarkets, Hypermarkets, Departmental Stores, Specialty Chains and company owned

and operated retail stores

The traditional format retailers comprise of Kiranas, Kiosks, Street Markets and the multiple

brand outlets. The retail industry can also be subdivided into the organized and the unorganized

sector. The organized retail sector occupies about 3% of the aggregate retail industry in India.


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DIVISION OF RETAILERS IN INDIA

The retail sector in India can be divided into two major categories:

1) Organized

2) Unorganized


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PART 1. Overview of Retailoutlet

RELIANCE MART


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ABOUT RELIANCE MART

RELIANCE RETAIL LTD has launched its much-awaited hypermarket format (which also

happens to be Indiaslargest hypermarket) called Reliance Mart at Iscon Mall, SG Highway,

Ahmadabad on August 15. After the successful launch of the supermarket format Reliance

Fresh and the consumer electronics concept mega store Reliance Digital, the hypermarket is

the third retail format launched by Reliance Retail.

Spread across 165,000 square feet of shopping area, Reliance Mart will provide the shoppers a

never-before-experienced shopping delight. The hypermarket will carry a range of over 95,000

products catering to the entire family. Shoppers will have the option to choose from a wide

array of products in every category ranging from fresh produce, food & grocery, home care

products, apparel and accessories, non-food FMCG products, consumer durables and IT,

automotive accessories, lifestyle products, footwear and much more.

The launch of Reliance Mart is yet another step by Reliance Retail towards providing

international shopping experience to all our customers at unmatched affordability, guaranteed

quality and choice of products and services. Reliance Mart marks the achievement of another

milestone in our effort to unleash a retail revolution in India.

Reliance Mart offers some unique services to the shoppers like tailoring, shoe repair, watch

repair, a photo shop, gift services and laundry services, all within the store. The store also

houses its own fresh bakery, serving hot, off-the-oven bread and bread products throughout

the day and local savouries, an ice-cream train for the kids, a chakki, ready-made batter and

loose tea and pickle for the housewives. Reliance Mart will also sell fine jewellery and

fashion jewellery as part of its lifestyle section.

Reliance Mart will also house a health and wellness store providing pharmaceutical drugs and

other wellness products

The hypermarket also launched a host of Reliances own brands in select categories with

superior quality and affordable prices like First Class, Network, Netplay, Team Spirit and
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Sparsh in Mens and Womens Formal / Casual and Ethnic wear, DNM- X in the jeans

category for men and women, Panda for kids clothing and Grip in the luggage section.

The footwear category will carry Zig in formal wear. Hi Attitude for semi -formal,

Tosco for party wear and Monza for the sports enthusiast. There are many products that

will be exclusively available in Reliance Mart stores only.

Services Offered

It offers some unique services to the shoppers like tailoring, shoe repair, watch repair, a photo

shop, gifting services and laundry services all within the store under one roof and also it has its

own bakery shop.

Reliance Mart will also provide easy and attractive finance options, including zero per centfinancing for the purchases on select products. Reliance Mart will continue to offer all its

customers Reliance One, a common membership and loyalty programme across all its formats,

which follows the philosophy of 'Earn Anywhere, Spend Anywhere'.

Future Plans

The next two hypermarkets are to be opened in Jamnagar in Gujarat and in the NCR by next

month with plans to open 30 such marts by the year. Raghu Pillai, President and CEO(operations and strategy), Reliance Industries Limited (RIL) said the company is planning to

set up 500 hypermarkets across 784 towns by 2010.

Strategy

The hypermarket would be selling the products on EDLP (every day low price) basis at prices

15-20 percent lower than market prices.

In order to grow faster and better in local markets with higher margins, it has focused largely

on local brands instead of national brands or private labels. Local brands include Induben

Khakrawalas Namkeens, Lijjat Papad, Wagh Bakri and Madhur (spices brand). This is in

addition to 100 private labels that Reliance plans to display. Companys Sources says that the

share of regional brands in the hyper marts would be over 10%.
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Popular Brands of Reliance Mart are:

Zeppelin : Mens Shirts & Trousers Fizzy Babe : Ladies & Kids Girls

Kitaan Studio : Mens Shirts & Trousers Jasmine : Ladies & Kids Girls

Blues & Khakis

:Mens Trousers Zero Degree : Kids Boys

Paranoia : Mens Shirts & T-Shirts Soil : Mens Shirts

Chlorine : Mens Shirts Massa Bay :Mens Trousers &

Bermudas

CRM POLICY OF RELIANCE MART

CRM policy of reliance mart can be divided into four major parts, namely;

1) Customer loyalty

2) Customer retention

3) Customer communication

4) Customer gratification

There exists a blanket customer relationship programme called the reliance one membership

programme for the purpose of maintaining customer loyalty.

The customers also get the opportunity of availing four different kinds of insurance on the

payment of a nominal fee. For example a customer can get an accidental death insurance of rs

six lacs on the payment of rs. 400 only.

Other forms of insurances are disability, hospitalization and home insurances.

The members of reliance one get the opportunity of taking part and winning prizes by the way

of lucky draws on regular intervals.
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Customer retentionpolicy implementation is at the zonal level. Generally each state is

regarded as a zone and the offers and discounts in a zone are not available in other zones. Such

policy helps reliance retail to understand and capture the local markets better.

The products which show improvement due to offers and discounts on them are repeated with

these offers again so as to retain the sales of the customers who bought it the last time.

Also such the days best offers are constantly announced in the store making the regular

customers aware about them.

Maintaining a good store ambiance is also a part of customer retention policy of reliance retail.

Clean and hygienic environment with properly and well spaced products along with a uniform

color theme attracts the existing customers to the store again and again.

Communication to existing customers takes the form of sms and e-mails, generally sent to

reliance one members. They get information about ongoing offers and also information and

latest news about their nearest stores and the company in general.

Another source of customer database is the information collected during the organizing of

special events in the stores. Customers participating in such events provide their contact

information which are also used in form of database for communication purposes.

Thank you and festive cards on special occasions are an innovative way of communicating

with the customers.

Trained salespersons make customer gratification very easy. A simple thank you with a smile

goes a long way for the store to keep the customers happy.

The special events organized by the stores across india are also a way to gratify the customers

by allowing them to play and win prizes.

Gift vouchers and discount coupons are an attraction for the customers and give them the feel

that the store cares about them and their money.

Local customers many a times make limited personal contacts with the store staff just like that

made at a kirana store and help the store to some extent to maintain a relationship with the

customer


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SWOT ANALYSIS


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RELIANCE MART

Strengths:

High quality,

latest in-style products,

international shopping experience

value for money pricing

loyal following

Own brand of merchandise, which is both trendy and individualistic.

new introductions every week

variety of designs and styles

exciting mix with a range extending from stylized clothes, footwear and accessories for

men, women and children to well-co-coordinated table linens, artefacts, home

accessories and furnishings.

Well-designed interiors, sprawling space, prime locations, lovely coffee shops add to

the customers shopping experience.

Weakness:

Needs to expand faster to maintain market share

Size of the stores should be increased to stock more products.

Targets the middle-class segment. Higher class customers do not prefer west side.

Trent limited may not be able operate west side efficiently due to its other operations.


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OPPORTUNITIES:

To survive in todays world globalization is important. Reliance mart have a wide

opportunity to go more global to improve and expand its business.

They also have the opportunity to consider more overseas supplier which will actually

give them cost advantage, rather than suppliers available on a local level.

They also have the opportunity to maximize the use of available technology to improve

their functioning and to gain competitive advantage.

Threats:

If the unorganized retailers are put together, they are parallel to a large supermarket

with no or little overheads, high degree of flexibility in merchandise, display, prices

and turnover.

Shopping Culture: Shopping culture has not developed in India as yet. Even now malls

are just a place to hang around with family and friends and largely confined to

Window-shopping.

Cultural Variation leads to variation in merchandise in India at different geographical

locations.

Competition from future group and various other retail stores which are growing

rapidly.


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PART 2. STUDY OF RELIANCE MART ON

DIFFERENT PARAMETERS:

LOCATION

PRODUCTS

FACILITIES

LIMITATION


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Locations of Reliance Mart Stores:-

Hyderabad, Tirupati,

Ahmedabad, Jamnagar,

Ranchi, Bangalore,

Pune, Mumbai,

Faridabad, Gurgaon,

Jodhpur Tiruchirappalli.

Products of Reliance mart

cameras,

home & kitchen appliances,

mobile phones and software.

groceries,

clothing,

computers,

jewelry,

shoes,

books,

music

services of a cobbler and a

photo-printing service.

fresh produce,

food and grocery,

apparel and accessories, footwear,

consumer durables and IT,

furniture & furnishings

refrigerators,

air conditioners,

blenders,

chimney and gas stoves,

coffee makers,

electric cookers,

electric kettles,

fans and coolers,

irons,

juicers,

microwaves

mixers,

grinders and processors,

toasters and sandwich

makers, vacuum cleaners,

washing machines,

water filters


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Facilities available:

For the shoppers convenience, the store has a cafeteria providing quality food andbeverages for ready consumption, an ATM machine and a consumer service /

membership desk to provide the customer a truly international shopping experience

Reliance Mart, Has 61 check-out counters has for the first time in India introduced the

Mobile POS system for faster check outs. This is aimed at reducing customer wait-time.

The store planning, atmospherics and layout has been designed specifically to provide a

complete solution to the customer.

The store has over 400 highly skilled and trained customer sales representatives.

Reliance Mart continue to offer all its customers Reliance One, a common membership

and loyalty program across all its formats, which follows the philosophy of Earn

Anywhere, Spend Anywhere.

Reliance Mart also provide easy and attractive finance options, including 0% financing

for your purchases on select products.

There exists a blanket customer relationship programme called the reliance one

membership programme for the purpose of maintaining customer loyalty. The

membership programme is a very simple one where a willing customer is required to fill

a form giving personal information and he gets a temporary card which will be made

permanent after six months.

The customers also get the opportunity of availing four different kinds of insurance on

the payment of a nominal fee. For example a customer can get an accidental death

insurance of rs six lacs on the payment of rs. 400 only.

A fast billing system and good and easy grievance handling system which can be

accessed thru customer service desk and company website,
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Limitations in Reliance mart:-

The personal contact numbers of reliance one members are open to tele marketing calls

from various marketers as they leak out of the reliance retails database, causing

unnecessary harassment to customers.

The customer communication policy is less followed in small towns and cities and is

more concentrated towards the metro cities.

There is a common crm policy for both reliance fresh and mart. This should not be the

case as both the stores offer different kinds of merchandize and generally attract differentkinds of customers.

Reliance retail generally delays the processing of permanent membership cards to those

customers who have not paid for such a card. Customers have been waiting for over three

months for their card. Those who have paid the nominal fee of rs. 50 get their permanent

card within 15 days but the rest who have optioned not to pay the fees do not receive the

card until too late.

Unmanned billing counters create long queues at the open counters. This creates

impatiens in the customers as they expect faster billing at the stores and do not want to

stand with too much of goods held in their hands while billing.


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PART 3: OBSERVATION,ANALYSIS AND

INTERPREATATION


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Research Objectives

Primary Objective

To study consumers buying behaviour $ Limitation towards Customerservice at Reliance Mart of Thane

Secondary objectives

To know about the consumer awareness towards services provided byReliance Mart of Thane.

To know about the customer awareness towards promotional activity ofReliance Mart.

To suggest changes that can be brought in Reliance mart as per the

customers point of view.

Research Problem

To make a comprehensive study of Reliance Mart and know the Buying behaviour

of Reliance Mart customers.

Importance of data collection

Reliance Mart basically means business and in business collection of raw

data allows the managers to see the real scenario and then take a decision

as per the data obtained.


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Type of research

Descriptive type research has used to complete this project. This research is

based on fact finding enquires and the variables are totally independent .

Research design

Descriptive research design was taken in the research project.

Data Collection :

Data has been collected through both primary and secondary approach.

Data Sources

PRIMARY DATA

Primary data generally means those raw data or data structures that are collected

first- hand and have not had any previous meaningful interpretation. For This

Project Report, we have collected such primary data through face to face

interview method through questionnaire and observation.

SECONDARY DATA

Secondary data are those data which has been already collected by someoneand may be already used the data by someone.

Secondary data were collected through: -

Companies website

Reports and publications of the company

Through internet

Newspapers, books and magazines.


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Sampling Design

Probability sampling design technique was used in the research. We have given

equal weightages to all respondent and chose them randomly without any biased

like gender, age, income culture.

Sample size

Around 50 customers and Employees of Reliance Mart were taken as sample

size for the research


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DATA ANALYSIS AND INTERPRETATION:-

The major objectives of analysis of data are:

1. To evaluate and enhance data quality

2. Examine effects of other relevant factors

4. Level of satisfaction,

5. Causes of dis-satisfaction,

6. Customer responses regarding services.

Interpretation

Pie charts and Bar diagrams are used to interpret the data.


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1. How frequently you visit Reliance Mart?

Daily ( ) weekly ( ) fortnightly ( ) once in month ( )

Table of Customers visit

Details Respondent Percentage

Daily 09 9%

weekly 48 48%

Fortnightly 20 20%

Once in a month 23 23%

ANALYSIS

Data collected for project from 100 responded in which 9 are

like to visit daily, 48 are like to visit weekly, 20 are likely to visit fortnightly and

23 likely to visit once in a month .

Interpretation-

In total respondent we analyzed that most of the customer

are likely to visit on weekly. In our observation we found that more scheme

should be provided on weekend.

9

48

2023

0

5

10

15

20

25

30

35

40

45

50

Daily weekly Fortnightly Once in a

month

Chart 1


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(2). What do you mostly shop for at reliance mart store?

Cloths ( ) Grocery ( ) cosmetic product ( ) all products ( )

Items of mostly shopDetails Respondent Percentage

Cloths 24 24%Grocery 23 23%

Cosmetic product 06 6%All product 47 47%

ANALYSIS

Data collected for project from 100 responded in which 47

customer are like to purchase all product, 24 are like to purchase cloths, 23 are

likely to purchase grocery, 6 likely to purchase cosmetic product .

Interpretation-

In total respondent we analyses that most of the

customer are like to purchase variety of product in the store. Company should

try to retain the customer. And should increase the variety of cosmetic

product & grocery.

Chart 2

Cloths24%

Grocery23%Cosmetic

product6%

All product47%


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(3) Are the Price of Reliance mart is lower than the other competitor? Move

this question

Yes ( ) No ( ) Equal ( ) no idea ( )

Price at reliance mart


Yes 35 35%

No 20 20%

Equal 31 31%

No Idea 14 14%

ANALYSIS


customer say and 20 say no, 31 say some time and 14 customer are say never .

Interpretation-

According to respondent customers are not fully satisfied .

Company should try to give the best quality product in minimum price to the

customer.

Chart 3

Yes35%

No

20%

Equal31%

No Idea14%


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4. Are you aware of different promotional schemes provided by reliance

mart?

Yes ( ) No ( ) Somewhat (

Awareness of promotional scheme


Yes 65 65%

No 19 19%

Somewhat 16 16%

ANALYSIS


customers are aware promotion scheme and 19 customers are not aware of

promotion scheme and 16 customers are somewhat aware .

Interpretation

In total respondent we analysed that most of the customer are aware of

promotion scheme. In our observation we found that attractive promotion

scheme will increase more sale .

Chart 4

Yes65%

No19%

Somewhat16%


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5. Are Promotion scheme taken by reliance mart easy to understand?

Yes ( ) NO ( ) some time ( )

Understanding of promotional scheme


Yes 51 51%

No 21 21%

Sometime 28 28%

ANALYSIS


customer say yes and 21 are those which say no and 28 say some time .

Interpretation-

Company should try making promotion scheme easy

understandable, promotion scheme should be in both in English & Hindi

Chart 5

51

2128

0

10

20

30

40

50

60

Yes No Sometime


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6.How likely are you to recommend Reliance Mart to a friend or relative?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

Recommended reliance mart


Excellent 07 7%

Good 47 47%

Fair 44 44%

Poor 02 2%

ANALYSIS


customer say excellent and 47 say good, 44 say fair which are and 2 customer are

those say poor .

Interpretation

In our observation we found that only 47% customer are fully

satisfied from the store. Company should try satisfy the customer by providing

better service and rectify their problem immediately.

Chart 6

Excellent7%

Good47%

Fair44%

Poor2%


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7. How do you come to know about various products available at Reliance

Mart?

Friend ( ) TV ( ) Radio ( ) Telephone ( )

Information about products


Friend 28 28%

TV 50 50%

Radio 10 10%

Telephone 12 12%

Interpretation -

According to responded result most of customers come to know about product

from TV. Company can try to retain customers and increase customers as they get

information from friends.

28

50

1012

0

510

15

20

25

30

35

40

45

50

Friend TV Radio Telephone

Chart 7


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8. Are you satisfied with the services provided by Reliance Mart.

Price ( ) Product Quality ( ) Selling Techniques ( ) Promotion offers ( )

Variety ( )

Satisfaction with services

Details Respondent Percentage Rank

Price 20 20% 3

Product Quality 17 17% 4

Selling Techniques 07 7% 5

Promotion offer 21 21% 2

Variety 35 35% 1

Interpretation

In total respondent we analysed that most of the customer

are believe in variety of products. Here we observed that company can come

with more variety in the market.

2017

7

21

35

0

5

10

15

20

25

30

35

Price ProductQuality

SellingTechniques

Promotionoffer

Variety

Chart 8


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9. Kindly suggest improvement that can be done according to you to make

operations of Retail mart more effective and impactful.

Cashier Speed ( ) Staff Knowledge ( ) Waiting Time Management ( )

Suggestion for operation management

Detail Respondent Percentage

Cashier Speed 45 45%

Staff Knowledge 30 30%

Waiting Time

Management

25 25%

ANALYSIS

Data collected for project from 100 responded in which 45 customer say

cashier speed and 30 say staff skill, 25 say waiting time management .

Interpretation-

According to respondent customers are not fully satisfied. company should

recruit new skilled cashier for better performance.

Chart 9

Cashier Speed

45%

Staff Knowledge30%

Waiting Time

Management25%


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10.Do u think changes in parking system according to your convenience should

be done or improved ?

Figure 10

Analysis :-

Data collected from 100 respondents shows that 21% says it is

important,16% says some what important,63% says extremely

important .

Interpretation:

We analysed that majority of respondents says proper and convenient

parking system should be designed.


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11.According to you which retail outlet offers you products at lowest

price reliance mart or big bazaar?

Analysis:

Out of 100 % of respondents,84% says big bazaar offers product at

lowest price whereas 76% says reliance mart,

Interpretation:

We analysed that price of reliance mart products are higher as compare

to big bazaar.


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12. Which retail outlet reliance mart or big bazaar offers the best

value for your money?

Analysis:

Out of 100 respondents 69 % favours bigbazaar whereas only 41 % says reliance

mart offers best value for money.

Interpretation:

Here out of the above survey we can say that customers are more satisfied with

big bazaar as compare to reliance mart .


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66242697 Reliance Mart Final

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