Introduction to Retailing sector Retailing sector of India can be split into two segments. They are the informal and the formal retailing 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.
Transcript
Introduction to Retailing sector
Retailing sector of India can be split into two segments. They are the informal and the formal
retailing 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.
DIVISION OF RETAILERS IN INDIA
The retail sector in India can be divided into two major categories:
1) Organized
2) Unorganized
Organized
Supermarkets
Hypermarkets
Department StoresSpecialty Chains
Company Owned Company Operated
PART 1. Overview of Retail outlet
“ RELIANCE MART ”
ABOUT RELIANCE MART
RELIANCE RETAIL LTD has launched its much-awaited hypermarket format (which also
happens to be India’s largest 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 Reliance’s own brands in select categories with
superior quality and affordable prices like “First Class”, “Network, Netplay, Team Spirit” and
Sparsh in Men’s and Women’s 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 cent
financing 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
Khakrawala’s Namkeens, Lijjat Papad, Wagh Bakri and Madhur (spices brand). This is in
addition to 100 private labels that Reliance plans to display. Company’s Sources says that the
share of regional brands in the hyper marts would be over 10%.
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
Facilities available: For the shopper’s convenience, the store has a cafeteria providing quality food and
beverages 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,
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 retail’s 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 different
kinds 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.
PART 3: OBSERVATION,ANALYSIS AND INTERPREATATION
Research Objectives
Primary Objective
To study consumers buying behaviour $ Limitation towards Customer service at Reliance Mart of Thane
Secondary objectives
To know about the consumer awareness towards services provided by Reliance Mart of Thane.
To know about the customer awareness towards promotional activity of Reliance Mart.
To suggest changes that can be brought in Reliance mart as per the customer’s 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.
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 someone and 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.
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
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.
1. How frequently you visit Reliance Mart?
Daily ( ) weekly ( ) fortnightly ( ) once in month ( )
Table of Customers visit
Details Respondent PercentageDaily 09 9%weekly 48 48%Fortnightly 20 20%Once in a month 23 23%
9
48
2023
05
101520253035404550
Daily weekly Fortnightly Once in amonth
Chart 1
ANALYSIS—
Chart 2
Cloths24%
Grocery23%Cosmetic
product6%
All product47%
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.
(2). What do you mostly shop for at reliance mart store?
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.
(3) Are the Price of Reliance mart is lower than the other competitor? Move this question
Data collected for project from 100 responded in which 35 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.
(3). Do advertisement and promotion influence your shopping decision?
Yes ( ) No ( )
Influence in shopping decision
Details Respondent PercentageYes 92 92%No 08 08%
ANALYSIS—
Chart 4
Yes65%
No19%
Somewhat16%
Data collected for project from 100 responded in which 92 customer are like promotion scheme and 8 are those people say promotion scheme doesn’t effect on purchasing.
Interpretation
In my observation we found promotion scheme is must to sustain customer attract customer & influence the purchasing.
4. Are you aware of different promotional schemes provided by reliance mart?
Data collected for project from 100 responded in which 65 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 .
5. Are Promotion scheme taken by reliance mart easy to understand?
Data collected for project from 100 responded in which 51 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
6. How likely are you to recommend Reliance Mart to a friend or relative?
Excellent ( ) Good ( ) Fair ( ) Poor ( )
Recommended reliance mart
Details Respondent PercentageExcellent 07 7%
Good 47 47%
Fair 44 44%
Poor 02 2%
Chart 6
Excellent7%
Good47%
Fair44%
Poor2%
ANALYSIS—
Data collected for project from 100 responded in which 7 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.
7. How do you come to know about various products available at Reliance Mart?
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.
8. Are you satisfied with the services provided by Reliance Mart.
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.
9. Kindly suggest improvement that can be done according to you to make operations of Retail mart more effective and impactful.
