PROJECT REPORT

CUSTOMER CENTRICITY AT VALUE FORMAT STORE

ORGANIZATION NAME: - RELIANCE NAME: - RELIANCE

RETAILRETAIL

SUBMITTED BY:SUBMITTED BY:

DECLARATION

I will take pleasure in declaring that the project work that is undertaken by me is an

original and authentic work done by me. This project is being submitted I partial

fulfillment for award of degree of Post Graduate Programme in Management from

The content of this report is based on the information collected by me during my

tenure at Reliance Retail Ltd. (New Delhi) for two months of training from

CONTENTS PAGE NO. Preface

7 Executive summary 8 1 Introduction

1.1 Overview 9-10

1.2 Rational of Study 11

1.3 Retailing Sector 12-18

A) Policy Initiatives 16

B) Road ahead 17-18

1.4 Retail Sector in India 19-39

A) Major players in retail industry 22-23

B) FDI in Indian retail sector 24-25

C) Growth of retail companies in India 26-27

D) Emerging trends in Indian retail sector 28-30

E) Scope of the Indian retail sector 31-33

F) Challenge facing the Indian retail sector 33-36

G) Format in Indian retail sector 37-39

1.5 Reliance Industry Ltd. 40

1.6 Reliance Retail Ltd. 41-45

A) Products of Reliance stores 45

1.7 Reliance Fresh 46-52

2 Review of Literature 53-54

3 Research Methodologies 55-62

3.1 Objective 55

3.2 Scope 55-56

3.3 Meaning 56

3.4 Research Design 57

3.5 Data collection 58

3.6 Research instrument 58

3.7 Sampling 58

3.8 Sample size 58

3.9 Tools and Technique 58

3.10 Daily Reporting 59

3.11 Store observation report 60

3.12 Questionnaire 61-62

4 Data Analysis 63-68

5 Suggestions 69

6 Limitations 71

7 Bibliographies 72

PREFACE

The success of the entire business depends on the satisfaction of the customers. The voice of the

customer plays a vital role to improve the business.

The motivation and the resultant buying behaviour assumes great importance.

We have tried to put our best effort to complete this task on the basis of skill that we have

achieved during our studies in the institute.

We have tried to put our maximum effort to get the accurate statistical data. However we would

appreciate if any mistakes are brought to us by the reader.

EXECUTIVE SUMMARY

After getting a lot of knowledge and the experience from the respected and honored faculty and

concern staff, It was the time to use that knowledge and experience in practical and this

opportunity was provided by the Reliance Retail to me. Reliance Retail gave me the opportunity

to do work on project titled “A project to evaluate customer centricity at Value Format

Stores”.

The main focus of this project was to know about the customers feedback and to where the need

of the improvement. By this project we tried to know customers satisfaction from our service. If

the customers are not satisfied with our service and due to any reasons than we try to do the

proper improvement to satisfy the customers.

The customers are the only reason why we are in business, so satisfying them will ultimately

make our business more profitable. There is a need to highlight the importance of a customer

service climate in Value Format Stores. A climate that emphasizes courtesy and competence, and

a work environment that promotes strong working relationship and empowerment.

OVERVIEW- STUDY OF CUSTOMER CENTRICITY AT

VALUE FORMAT STORE:-

Customers are the very essential part of the every business. The voice of the customers is playing

a vital role in the growth of the any organization. Customer’s voice gives a right direction of

improvement to the business. By the study of the customer’s centricity we can know about the

perception and need of the customer and we can mould our operation as per the customers need

or demand.

When a customer goes for buying something, there is many things those influence the decision

of customer which type of shop or store we should go, we go for malls, any exclusive store,

company outlets, general store or departmental store and any common shop etc. And also these

things influence the purchase decision of the customers.

(A) FACTORS INFLUENCING CONSUMER BUYING

BEHAVIOR

There are four major factors that influence the buying behavior such as cultural factors, social

factors, personal factors, and psychological factors.

i. CULTURAL FACTORS: Culture is the most fundamental determinant of a

person’s needs and behavior. Values, perceptions, preferences, and behavior are the main

variables under culture of an individual. Each culture contains sub-culture like

nationality, religious group, geographical area, and linguistic divisions etc.

ii. SOCIAL FACTORS: A consumer behavior is also influenced by social factors

such as the consumer reference group family and social roles and status.

iii. PERSONAL FACTORS: A buyer decision is also influenced by his or

personal characteristics, notably the buyers age, lifestyle, occupation, economic

circumstances etc.

PSYCHOLOGICAL FACTORS: A person buying choice is also influenced by

four major psychological factors such as motivation, perception, learning belief and attitudes.

VALUE FORMAT STORE:-

With the changing of the time, the customers perception, preference and lifestyle also

changing. In this busy schedule the peoples are not have enough time to shopping at

different-different places. So customers are wanting to all the necessary things under a

roof with all facility. These value format stores provide all the necessary things and

facility under a roof. These store provide all FMCG, Durable, Vases, Garments, Skincare

and daily usages things with in a store with home delivery facility.

RATIONAL OF STUDY

The customers are only reason why we are in business, so satisfying them will ultimately make

our business more profitable. There is a need to highlight the importance of a customer service

climate in value format stores. Custmers feedback will help us not only identify the problem

areas but will also demonstrate to our customers that we care and are proactive in looking for

ways to improve the service that we provide. This will give the customers a chance to voice any

displeasure or come forward with truly constructive suggestions that could help our business.

The project helpful to know about the opportunity and threat available in the market for the

business and also help to improve in the present condition. This study gives me the chance to

learn about the consumer behavior.

RETAIL SECTOR

The Indian retail market, which is the fifth largest retail destination globally, has been ranked the

second most attractive emerging market for investment after Vietnam in the retail sector by AT

Kearney's seventh annual Global Retail Development Index (GRDI), in 2008. The share of retail

trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is

currently around 12 per cent, and is likely to reach 22 per cent by 2010.

India retail industry is the largest industry in India, with an employment of around 8% and

contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%

yearly being driven by strong income growth, changing lifestyles, and favorable demographic

patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.

India retail industry is one of the fastest growing industries with revenue expected in 2007 to

amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is

expected in the industry of retail in India by growth in consumerism in urban areas, rising

incomes, and a steep rise in rural consumption. It has further been predicted that the retailing

industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5

billion.

Shopping in India have witnessed a revolution with the change in the consumer buying behavior

and the whole format of shopping also altering. Industry of retail in India which have become

modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and

sprawling complexes which offer food, shopping, and entertainment all under the same roof.

India retail industry is expanding itself most aggressively, as a result a great demand for real

estate is being created. Indian retailers preferred means of expansion is to expand to other

regions and to increase the number of their outlets in a city. It is expected that by 2010, India

may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9%

annually. The branded food industry is trying to enter the India retail industry and convert Indian

consumers to branded food. Since at present 60% of the Indian grocery basket consists of non-

branded items.

India retail industry is progressing well and for this to continue retailers as well as the Indian

government will have to make a combined effort.

A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer

market is likely to grow four times by 2025. Commercial real estate services company, CB

Richard Ellis' findings state that India's retail market is currently valued at US$ 511 billion.

Banks, capital goods, engineering, fast moving consumer goods (FMCG), software services, oil

marketing, power, two-wheelers and telecom companies are leading the sales and profit growth

of India Inc in the fourth quarter of 2008-09. India continues to be among the most attractive

countries for global retailers. At US$ 511 billion in 2008, its retail market is larger than ever and

drawing both global and local retailers. Foreign direct investment (FDI) inflows as on January

2009, in single-brand retail trading, stood at approx. US$ 25.18 million, according to the

Department of Industrial Policy and Promotion (DIPP).

India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion

by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country

with high growth rates, consumer spending has risen sharply as the youth population (more than

33 percent of the country is below the age of 15) has seen a significant increase in its disposable

income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also,

organized retail, which accounts for almost 5 per cent of the market, is expected to grow at a

CAGR of 40 per cent from US$ 20 billion in 2007 to US$ 107 billion by 2013.

India has emerged the third most attractive market destination for apparel retailers, according to

a new study by global management consulting firm AT Kearney. It further says that in India,

apparel is the second largest retail category, representing 10 per cent of the US$ 37 billion retail

market. It is expected to grow 12-15 per cent per year. Apparel, along with food and grocery,

will lead the organized retailing in India. India has one of the largest numbers of retail outlets in

the world. A report by Images Retail estimates the number of operational malls to grow more

than two-fold, to cross 412, with 205 million square feet by 2010, and a further 715 malls to be

added by 2015, with major retail developments even in tier-II and tier-III cities in India.

Marks & Spencer Reliance India is planning to open 35 more stores over the next five

years, according to Mark Ashman, CEO of the company. The 51:49 joint venture

between UK’s Marks and Spencer and Reliance Retail Ltd already has 15 stores in India.

Future Group has been restructured to test the new rules on FDI under Press Notes 2, 3

and 4 issued in February 2009. The company plans to bring in up to US$ 148.7 million in

foreign investment. Although FDI is permitted only in single-brand retail and not

permitted in multi-brand retail businesses like Future Group's, the conglomerate has

created two layers of operations to take advantage of the three Press Notes that allow FDI

up to 49 per cent in operating-cum-investment companies as long as they are owned and

controlled by Indians.

Carrefour SA, Europe’s largest retailer, may start wholesale operations in India by 2010

and plans to set up its first cash-and-carry outlet in the National Capital Region.

Currently, Carrefour exports goods worth US$ 170 million from India to Europe, UAE,

Indonesia, Europe, Thailand, Singapore and Malaysia.

Jewellery manufacturer and retailer, Gitanjali Group and MMTC are jointly setting up a

chain of exclusive retail outlets called Shuddi–Sampurna Vishwas. The joint venture,

which plans to open around 60 stores across India by end of this year, will retail

hallmarked gold and diamond jewellery.

Mahindra Retail, a part of the US$ 6.7-billion Mahindra Group, plans to invest US$ 19.8

million by 2010 to step up its specialty retail concept 'Mom and Me'.

Policy Initiatives

100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee arrangements are

also permitted in retail trade.

51 per cent FDI is allowed in single-brand retailing.

Road Ahead

According to industry experts, the next phase of growth is expected to come from rural markets,

with rural India accounting for almost half of the domestic retail market, valued over US$ 300

billion. Rural India is set to witness an economic boom, with per capita income having grown by

50 per cent over the last 10 years, mainly on account of rising commodity prices and improved

productivity.

According to retail and consumer products division, E&Y India, basic infrastructure, generation

of employment guarantee schemes, better information services and access to funding are also

bringing prosperity to rural households. The rural market, product design will need to go beyond

ideas like smaller sizes (such as single use sachets) to create genuinely new products, according

to Ramesh Srinivas, national industry director (consumer markets), KPMG India.

According to the Investment commission of India, the overall retail market is expected to grow

from US$ 262 billion to about US$ 1065 billion by 2016, with organised retail at US$ 165

billion (approximately 15.5 per cent of total retail sales). India is expected to be among the top 5

retail markets in the world in 10 years.

According to new market research report by RNCOS titled, "Booming Retail Sector in India",

organised retail market in India is expected to reach US$ 50 billion by 2011.

Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent

from 2007 to 2015.

Rural market is projected to dominate the retail industry landscape in India by 2012 with

total market share of above 50 per cent.

Organised retailing of mobile handset and accessories is expected to reach close to US$

990 million by 2010.

Driven by the expanding retail market, third party logistic market is forecasted to reach

US$ 20 billion by 2011.

RETAIL SECTOR IN INDIA

Retail and real estate are the two booming sectors of India in the present times. And if industry

experts are to be believed, the prospects of both the sectors are mutually dependent on each

other. Retail, one of India’s largest industries, has presently emerged as one of the most dynamic

and fast paced industries of our times with several players entering the market. Accounting for

over 10 per cent of the country’s GDP and around eight per cent of the employment retailing in

India is gradually inching its way toward becoming the next boom industry.

As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex-

malls and huge complexes offer shopping, entertainment and food all under one roof, the concept

of shopping has altered in terms of format and consumer buying behavior, ushering in a

revolution in shopping in India. This has also contributed to large scale investments in the real

estate sector with major national and global players investing in developing the infrastructure

and construction of the retailing business. The trends that are driving the growth of the retail

sector in India are

Low share of organized retailing

Falling real estate prices

Increase in disposable income and customer aspiration

Increase in expenditure for luxury items

Another credible factor in the prospects

of the retail sector in India is the

increase in the young working

population. In India, hefty pay-packets,

nuclear families in urban areas, along

with increasing working-women

population and emerging opportunities

in the services sector. These key factors have been the growth drivers of the organized retail

sector in India which now boast of retailing almost all the preferences of life - Apparel &

Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel

and Leisure and many more. With this the retail sector in India is witnessing a rejuvenation as

traditional markets make way for new formats such as departmental stores, hypermarkets,

supermarkets and specialty stores.

The retailing configuration in India is fast developing as shopping malls are increasingly

becoming familiar in large cities. When it comes to development of retail space specially the

malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is studied

it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in

the Tier II cities.  The government of states like Delhi and National Capital Region (NCR) are

very upbeat about permitting the use of land for commercial development thus increasing the

availability of land for retail space; thus making NCR render to 50% of the malls in India.

India is being seen as a potential

goldmine for retail investors from over

the world and latest research has rated

India as the top destination for retailers

for an attractive emerging retail market.

India’s vast middle class and its almost

untapped retail industry are key

attractions for global retail giants wanting to enter newer markets. Even though India has well

over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing

industry in the modern sense of the term. This presents international retailing specialists with a

great opportunity. The organized retail sector is expected to grow stronger than GDP growth in

the next five years driven by changing lifestyles, burgeoning income and favorable demographic

outline.

Another cap to the retailing industry in India is allowing 51% FDI in single brand outlet. The

government is now set to initiate a second wave of reforms in the segment by liberalizing

investment norms further. This will not only favor the retail sector develop in terms of design

concept, construction quality and providing modern amenities but will also help in creating a

consumer-friendly environment. Retail industry in India is at the crossroads but the future of the

consumer markets is promising as the market is growing, government policies are becoming

more favorable and emerging technologies are facilitating operations in India. And this upsurge

in the retail industry has made India a promising destination for retail investors and at the same

time has impelled investments in the real estate sector. As foreign investors cautiously test the

Indian Markets for investments in the retail sector, local companies and joint ventures are

expected to be more advantageously positioned than the purely foreign ones in the evolving

India's organized retailing industry.

Major Players in Retail Industry

India is now emerging as a hot spot for global retail chains. India, which held top spot on Global

Retail Development Index (GRDI), an annual study of retail investment attractiveness among 30

emerging markets conducted by management consulting firm A.T. Kearney, has yielded its

numero uno position in 2008 to Vietnam– among the fastest growing economies in the South

East Asia. In 2007, Vietnam was ranked fourth on the index. World’s largest retail chain wal-

mart is all set to launch.

List of current retail player’s in the market is quite long but following retail chains can be

considered to dominate a large portion of Indian organized retail sector.

Big Bazaar, Pantaloons, Shopper's Stop, Spencer’s, reliance, Central, Fabmall, Akbarally's

,Family Mart, Food world, Home Stop, Hyper Mart, Lifestyle International, Marks &

Spencer, Spinach, Subhiksha,Vishal Mega Mart, Westside, Big Apple, Sahara unique(shop

for Trend) and 6 ten retail store .

COMPANIES IN INDIAN RETAIL SECTOR

S.

NO.

Companies

1. Reliance Retail

2. Aditya Birla Group

3. Future Group’s

4. Pantaloons Retail India Ltd.

5. Bata India Ltd.

6. Shoppers Stop

7. Music World Entertainment Ltd.

FDI in Retail Sector

Retailing is the largest private sector industry in the world economy with the global industry size

exceeding $6.6 trillion and a latest survey has projected India as the top destination for retail

investors. And the further upsurge is anticipated in the retail sector as the Government of opened

up 51% FDI in single brand retail outlets. And as the government is in a process to initiate a

second phase of reforms, it is cautiously exploring the avenues for multi-brand segment. The

Government is seeking for these options keeping in view the existing social framework of India

and the will ensure that the entry of global retail giants do not displace the existing employment

in the retail business.

Industry experts are sensitive to the point that local markets have an edge over the retail investors

in India as they have unique advantages such as an understanding of local needs and extended

service like home delivery. As the FDI influence on the Indian retail sector sets in, the total size

of the retail trade is expected to grow extensively in the coming years and the consumer

segments patronizing the big malls will create frenzy for organized retailing predicting a growth

of 25-30 per cent per annum over the next decade. Moreover, Indian retail chains would get

integrated with global supply chains since FDI will bring in technology, quality standards and

marketing thereby, leading to new economic opportunities and creating more employment

generation.

Industry trends for retail sector indicate that organized retailing has major impact in controlling

inflation because large organized retailers are able to buy directly from producers at most

competitive prices. World Bank attributes the opening of the retail sector to FDI to be beneficial

for India in terms of price and availability of products as it would give a boost to food products,

textiles and garments, leather products, etc., to benefit from large-scale procurement by

international chains; in turn, creating jobs opportunities at various levels.

As foreign investors exploring their potentials in the retail sector, are keen on developing malls

in India, the size of organized retailing is expected to touch $30 billion by 2010 or approximately

10 per cent of the total. This has initiated market-entry announcement from some retailers and

has signaled to international retailers about India’s seriousness in promoting the sector. While

there are reports of international retailers like Wal-Mart analyzing business opportunities in

India; Reliance, the largest Indian conglomerate is investing $3.4 billion to become India’s

largest contemporary retailer. There are also reports of investments for ‘Hypercity Retail’ by

K.Raheja Group to establish 55 hypermarkets by 2015. All these factors will contribute in taking

Indian retail business to unexpected growth based on the consumer preference for shopping in

congenial environs and also availability of quality real estate.

GROWTH OF RETAIL COMPANIES IN INDIA

Growth of Retail Companies in India exhibits the boom in the retail industry in India over the

years. The increase in the purchasing power of the Indian middle classes and the influx of the

foreign investments have been encouraging in the Growth of Retail Companies in India.

Growth of Retail Companies in India

Growth of Retail Companies in India is still not yet in a matured stage with great potentials

within this sector still to be explored. Apart from the retail company like Nilgiri's of Bangalore,

most of the retail companies are sections of other industries that have stepped in the retail sector

for a better business. The Growth of Retail Companies in India is most pronounced in the metro

cities of India, however the smaller towns are also not lagging behind in this. The retail

companies are not only targeting the four metros in India but also is considering the second

graded upcoming cities like Ahmedabad, Baroda, Chandigarh, Coimbatore, Cochin, Ludhiana,

Pune, Trivandrum, Simla, Gurgaon, and others. The South Indian zone have adopted the process

of shopping in the supermarkets for their daily requirements and this has also been influencing

other cities as well where many hypermarkets are coming up day to day.

Reasons for the fast Growth of Retail Companies in India

The retail companies are found to be rising in India at a remarkable speed with the years and this

have brought a revolutionary change in the shopping attitude of the Indian customers. The

Growth of Retail Companies in India is facilitated by certain factors like -

· existing Indian middle classes with an increased purchasing power

· rise of upcoming business sectors like the IT and engineering firms

· change in the taste and attitude of the Indians

· effect of globalization

· heavy influx of FDI in the retail sectors in India

EMERGINE TRENDS IN INDIAN ORGANIZED RETAIL SECTOR

The emerging trends in the Indian organized retail sector would help the economic growth in

India.

There is a fantastic rise in the Indian organized retail sector in a very short period of time

between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India

has a chance of tremendous economic growth, both in India and abroad.

The emerging trends in the Indian organized retail sector are also adding up to the

development of the Indian organized retail sector. The relaxation by the government on

regulatory controls on foreign direct investments has added to the process of the growth of the

Indian organized retail sector.

The infrastructure of the retail sector will evolve radically in the recent future. The emergence

of shopping malls are increasing at a steady pace in the metros and there are further plans of

expansion which would lead to 150 new ones coming up in India by 2008. As the count of super

markets is going up much faster than rate of growth in retail sector, it is taking the lions share in

food trade.

The growth of the Indian organized retail sector is anticipated to be heavier than the growth of

the gross domestic product. Alterations in people's lifestyle, growth in income levels, and

encouraging conventions of demography are proving favorable for the new emerging trends in

the Indian organized retail sector.

The success of this retail sector would also lie in the degree of penetration into the lower income

strata to tap the possible customers in the lowest levels of society. The demands of the buyers

would also be enhanced by more access to credit facilities.

With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a

transformation. At present the Foreign Direct Investments(FDI) is not encouraged in the Indian

organized retail sector but once the TNC'S get in they inevitably try to oust their Indian

counterparts. This would be challenging to the retail sector in India.

The trends to follow in the future:

The Indian Organized retail sector will grow up to 10% of total retailing by 2010.

No one single format can be assumed as there is a huge difference in cultures regionally.

The most encouraging format now would be the hypermarts.

The hypermart format would be further encouraged with the entry of the TNCs.

SCOPE OF THE INDIAN RETAIL MARKET

The scope of the Indian retail market is immense for this sector is poised for the highest growth

in the next 5 years. The India retail industry contributes 10% of the country’s GDP and its

current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the

fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005.

The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year

2010. There are under construction at present around 325 departmental stores, 300 new malls,

and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian

retail market. SS

The growth of scope in the Indian retail market is mainly due to the change in the consumers

behavior. For the new generation have preference towards luxury commodities which have been

due to the strong increase in income, changing lifestyle, and demographic patterns which are

favorable.

The scope of the Indian retail market have been seen by many retail giants and thats the reason

that many new players are entering the India retail industry. The major Indian retailers are:

Pantaloons Retail India Ltd

Shoppers Stop

Bata India Ltd

Music World Entertainment Ltd

Judging the scope for growth in the India retail industry many global retail giants are also

entering the Indian retail market. They are :

Tesco

Metro AG

Wal- Mart

The scope for growth in the Indian retail market is seen mainly in the following cities:

Mumbai

Delhi

Pune

Ahmedabad

Bangalore

Hyderabad

Kolkata

Chennai

The scope of the Indian retail market is very vast. And for it to reach its full potential the

government and the Indian retailers will have to make a determined effort.

CHALLENGS FACING THE INDIAN ORGANIZED

RETAIL SECTOR

The challenges facing the Indian organized retail sector are various and these are stopping the

Indian retail industry from reaching its full potential. The behavior pattern of the Indian

consumer have undergone a major change. This have happened for the Indian consumer is

earning more now, western influences, women working force is increasing, desire for luxury

items and better quality. He now wants to eat, shop, and get entertained under the same roof. All

these have lead the Indian organized retail sector to give more in order to satisfy the Indian

customer.

The biggest challenge facing the Indian organized retail sector is the lack of retail space. With

real estate prices escalating due to increase in demand from the Indian organized retail sector, it

is posing a challenge to its growth. With Indian retailers having to shell out more for retail space

it is effecting their overall profitability in retail.

Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian

retailers have difficulty in finding trained person and also have to pay more in order to retain

them. This again brings down the Indian retailers profit levels.

The Indian government have allowed 51% foreign direct investment (FDI) in the India retail

sector to one brand shops only. This have made the entry of global retail giants to organized

retail sector in India difficult. This is a challenge being faced by the Indian organized retail

sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the

organized retail sector in India indirectly through franchisee agreement and cash and carry

wholesale trading. Many Indian companies are also entering the Indian organized retail sector

like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing stiff

competition from these global retail giants. As a result discounting is becoming an accepted

practice. This too bring down the profit of the Indian retailers. All these are posing as challenges

facing the Indian organized retail sector.

The Hidden Challenges

Modern retailing is all about directly having "first hand experience" with customers, giving them

such a satiable experience that they would like to enjoy again and again. Providing great

experience to customers can easily be said than done. Thus, challenges like retail differentiation,

merchandising mix, supply chain management and competition from supplier's brands are the

talk of the day. In India, as we are moving to the next phase of retail development, each

endeavor to offer experiential shopping.  One of the key observations by customers is that it is

very difficult to find the uniqueness of retail stores. The problem: retail differentiation.

The next problem in setting up organized retail operations is that of supply chain logistics. India

lacks a strong supply chain when compared to Europe or the USA. The existing supply chain has

too many intermediaries: Typical supply chain looks like:- Manufacturer - National distributor -

Regional distributor - Local wholesaler - Retailer - Consumer. This implies that global retail

chains will have to build a supply chain network from scratch. This might run foul with the

existing supply chain operators. In addition to fragmented supply chain, the trucking and

transportation system is antiquated. The concept of container trucks, automated warehousing is

yet to take root in India. The result: significant losses/damages during shipping.

Merchandising planning is one of the biggest challenges that any multi store retailer faces.

Getting the right mix of product, which is store specific across organization, is a combination of

customer insight, allocation and assortment techniques.

The private label will continue to compete with brand leaders. So supplier's brand will take their

own way because they have a established brand image from last decades and the reasons can be

attributed to better customer experience, value vs. price, aspiration, innovation, accessibility

of supplier's brand.

FORMATS IN INDIAN ORGANIZED RETAIL SECTOR

This site provides detail information on Formats in Indian Organized Retail Sector. The site also

focuses on the current structure of Indian retail industry.

Formats in Indian Organized Retail Sector and its subsequent successful operation is credited to

India Economic System reform earnest in July 1991. Formats in Indian Organized Retail Sector

is at its nascent stage. The Central Government have ultimately realized the need to remove the

insulation out of the Indian retail sector. Skeptics opines opening up Indian retail industry would

jeopardize way of income for the poor small retailers. In fact, the actual story is quite heartening

for the small time retailer and its vendors.

It is the second fastest growing economy of the world

Potential to be the third largest economy in terms of GDP in next few years

It ranks high amongst the top 10 FDI destinations of the world

Fastest growing tourist market in Asia

World bank states, India to be world’s second largest economy after China by the year

2050

Stable and investor friendly Central Government at the helm of affairs

Introduction of Value Added Tax or VAT and tax reforms

High degree of professionalism and corporate ethics

Excellent Investment opportunities in Indian retail sector and in allied sectors; sure and

high returns on investments

To invest US $130 billion for the development of infrastructure, by year 2010

To attract US $ 10 billion FDI for infrastructure development by the end of year 2008

Bullish stock markets

Hordes of foreign investors are thronging in to invest in Indian retail markets

Highly educated English speaking young workforce

Vibrant and multi cultured cities

Huge opportunity exists, especially in semi-rural and rural areas

Till date the second largest employer after agriculture sector, for the huge semi-skilled

Indian population

Offers highest shop density in the whole world

Having almost 1,20,000 shops, across the length and breadth of the country

In a nascent stage of development as an organized industry

Formats in Indian Organized Retail Sector -

Supermarkets

Hypermarkets

Department Stores

Modern format individual retailers

Shopping malls

Specialty Chains

INTRODUCTOIN OF RELIACE INDUSTARY :-

Reliance Industries Limited (RIL) is India’s largest private sector company on all major

financial parameters with a turnover of Rs. 1,39,269 crore (US$ 34.7 billion), cash profit of Rs.

25,205 crore (US$ 6.3 billion), net profit (excluding exceptional income) of Rs. 15,261 crore

(US$ 3.8 billion) and net worth of Rs. 81,449 crore (US$ 20.3 billion) as of March 31, 2008.

RIL is the first private sector company from India to feature in the Fortune Global 500 list of

‘World’s Largest Corporations’ and ranks 103rd amongst the world’s Top 200 companies in

terms of profits. RIL is amongst the 30 fastest climbers ranked by Fortune. RIL features in the

Forbes Global list of the world’s 400 best big companies and in the FT Global 500 list of the

world’s largest companies. RIL ranks amongst the ‘Worlds 25 Most Innovative Companies’ as

per a list compiled by the US financial publication-Business Week in collaboration with the

Boston Consulting Group.

RELIANCE RETAIL LIMITED:-Reliance Retail Limited (RRL), a subsidiary of Reliance Industries Limited opened its first retail

store in November 2006 and today operates over 800 stores in 60 cities, spanning 14 states with

over 3.8 million Sq ft. RRL is a multi-format retailer that operates Reliance Fresh – a

neighborhood store concept, Reliance Digital – a consumer durables and information technology

concept, Reliance Mart - a hyper market concept, Reliance Trends - an apparel specialty concept,

Reliance Wellness – a health, wellness & beauty concept , iStore by Reliance Digital- an Apple

specialty store concept, Reliance Footprint -a footwear concept, Reliance Jewels – a jewellery

concept, Reliance Time-Out- a books, music & entertainment concept, Reliance Super- a

Minimart concept, Reliance Living Homeware – a household utilities specialty store concept,

Reliance Home Kitchen, a kitchen’s solution specialty store format and Reliance AutoZone – an

automotive specialty concept.

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, we are

aggressively working on introducing a pan-India network of retail outlets in multiple formats. A

world class shopping environment, state of art technology, a seamless supply chain

infrastructure, a host of unique value-added services and above all, unmatched customer

Experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make India

proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the

Indian consumer, both in quality and quantity, will be an integral feature of this project. By

creating value at all levels, we will actively endeavor to contribute to India's growth.

The project will boast of a seamless supply chain infrastructure, unprecedented even by world

standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch

almost every Indian customer and supplier.

To provide western-style retail facility “Reliance Mart” will sell a range of 95,000 types of items

includes consumer durable products (clothing, stationery, toys, medicines, home furnishings,

footwear etc), FMCG, IT, automotive accessories, apparel accessories, fine jewelry and fashion

jewelry under one roof. For this Reliance will set up a series of 500 hypermarkets across the

country by 2010 while the recent next hypermarket will be established in Jamnagar in Gujarat

and in the NCR by next month with a planning to open 30 such marts by the end of this year

includes six in National Capital Delhi, five each in Punjab and Andhra Pradesh, three in Gujarat

and two in Bangalore, informed RIL president and CEO (Operation and Strategy) Raghu Pillai

on the occasion of first hypermarket in Ahmedabad on Monday.

They will be better than the best in the market. We would ensure that our products would be

cheapest on the consumers wallet and would match the lowest price in the market with the best

quality as benchmark”, said Pillai. Reliance has set up the first hypermarket in 1,65,000 sq ft area

worth Rs. 4.25 crore approximately for selling groceries to general merchandising in Reliance

Mart.

Reliance had announced last year to invest Rs. 25,000 crore in its retail store and expected to

spend Rs. 2,500-3,000 per square fit for establishing 500 hypermarkets in 784 towns by next five

years. Since then Reliance has been looking for deserving lands across the country to fulfill its

dream project.

Mukesh Ambani, the Chairman and Managing Director of Reliance Mukesh Dhirubhai Group

said, “Organized retail has the potential to trigger socio-economic transformation on an

unprecedented scale in our country and will bring about enormous spin-off benefits to the Indian

economy and its various constituents. The launch of ‘Reliance Mart’ is yet another step by

Reliance Retail towards providing an international shopping experience to all our customers at

unmatched affordability, guaranteed quality and choice of products and services”. He was

speaking on inauguration ceremony of first ever hypermarket in Ahmadabad.

Reliance will provide some innovative and unique services to the shoppers such as tailoring,

shoe repair, watch repair, a photo shop, gifting services and laundry services all within the store

under one roof. The facility of owned fresh bakery service will be all time available under brand

name of ''hot off the oven''.

Vimal, a well-known fabric brand of Reliance Industries Ltd. will also relaunch its products that

will have a store within its hypermarkets and will offer custom-tailoring services, said Parimal

Nathwani, the Group President of Corporate Affairs.

Besides this, Reliance Retail is building a vigorous and state-of-the-art supply chain

infrastructure in parallel to cover the entire country along with setting up its own cold storage

chain discretely. “It is expected to generate direct employment for half-a-million people and

indirect employment to two million”, said Pillai.

To woo the customers, Reliance Mart will keep on offering versatile offers to all its customers

such as ‘Reliance One’, a common membership and loyalty programme across all its formats,

which follows the philosophy of 'Earn Anywhere, Spend Anywhere'. ‘Reliance Mart’ will also

provide easy and attractive finance options, including zero percent financing for the purchases on

some selected products.

PRODUCTS OF RELIANCE STORES

FMCG

Reliance Atta,Reliance premium white sugar, Reliance sugar fese store ,Reliance flour

(basen),Reliance dry fruits, Reliance grocery, Reliance whole wheat, Reliance long grain rice,

Reliance wheat lokvan,Reliance Iodized Salt, Reliance Pulses (like moong, arhad, rajma etc)

Garments

Reliance Men’s Wear, Reliance Women’s Wear, Reliance Undergarments, Reliance gravity

socks, T-Shirts Jeans, Tie, Reliance cotton plus shirts range.

Foot Wear

Reliance Mon Mn sport shoes, Reliance Zig Mn Casuals, Reliance Hia Mn Casuals, Reliance Zig

Zac casuals, Reliance Mon Mn leather shoes, Reliance Mon Mn kids range.

RELIANCE FRESH

Company Overview: Reliance Fresh

Date of Establishment 2006

Revenue Not Available

Market Cap Rs.370,687.7crores (Reliance Industries

Ltd.)

Address Reliance Industries Limited, Makers Chambers - IV,

Nariman Point, Mumbai 400 021, Maharashtra, India

Branches Chennai, New Delhi, Hyderabad, Jaipur, Mumbai,

Chandigarh, Ludhiana, Orissa, UP and West Bengal

Management Team Mukesh D. Ambani - Chairman & Managing Director

Nikhil R. Meswani - Executive Director

Hital R. Meswani - Executive Director

H.S.Kohli- ExecutiveDirector

RamniklalH.Ambani

MansinghL.Bhakta

YogendraP.Trivedi

Dr.D.V.Kapur

M.P.Modi

S.Venkitaramanan

Prof.AshokMisra

Prof.DipakCJain

Dr. Raghunath Anant Mashelkar

Overview Reliance Fresh falls under Reliance Industries. It is the

first retail venture of the Group. The company offers fresh

fruits and vegetables, staples, groceries, fresh juice bars,

FMCG products and dairy products and non-vegetarian

items. Reliance Industries has invested nearly Rs. 3,000

crores to expand the Reliance Fresh stores. Reliance Fresh

directly buys stock from the farmers to cut down on the

wastage. The stores work on The Ranger Format which

means selling of fresh vegetables to the road sellers.

Reliance Retail has signed a pact with Apple for the

establishment of a chain of Apple Specialty Stores

branded as iStore, starting with Bangalore

Mukesh Ambani’s Reliance Industries Ltd has finally launched Reliance Fresh, its first retail

venture in Hyderabad. RIL is planning to launch 11 more retail stores in the city. You can find

fresh fruits, vegetables dal, atta, rice as well the company’s in-house products too.

RIL is in planning to set up Ranger Farms outlets to serve fresh vegetables too in the streetside.

It will open from 2 am to 9 am. Delhi and Mumbai are the next destination for the company’s

new venture. RIL has already announced to invest Rs 25,000 crore over the next five years in

the retail business with its 4,000 retail outlets in different cities.

The next venture in retail will be Feel Fresh Plus in which customers could find fruits and

vegetables as well as apparel, consumer electronics, FMCG items and medicines too.

According to Retail consultancy Technopak Advisors, the size of India’s retail industry is

about $300 billion and it will go to $427 billion by the end of 2010.

Reliance Fresh retail supermart opens in Hyderabad

Reliance Fresh falls under Reliance Industries. It is the first retail venture of the Group. The

company offers fresh fruits and vegetables, staples, groceries, fresh juice bars, FMCG products

and dairy products and non-vegetarian items. Reliance Industries has invested nearly Rs. 3,000

crores to expand the Reliance Fresh stores. Reliance Fresh directly buys stock from the farmers

to cut down on the wastage. The stores work on The Ranger Format which means selling of fresh

vegetables to the road sellers. Reliance Retail has signed a pact with Apple for the establishment

of a chain of Apple Specialty Stores branded as iStore, starting with Bangalore

Mukesh Ambani’s Reliance Industries Ltd has launched Reliance Fresh, its first retail venture in

Hyderabad. RIL is planning to launch 11 more retail stores in the city. You can find fresh fruits,

vegetables dal, atta, rice as well the company’s in-house products too.

RIL is in planning to set up Ranger Farms outlets to serve fresh vegetables too in the streetside.

It will open from 2 am to 9 am. Delhi and Mumbai are the next destination for the company’s

new venture. RIL has already announced to invest Rs 25,000 crore over the next five years in the

retail business with its 4,000 retail outlets in different cities.

The next venture in retail will be Feel Fresh Plus in which customers could find fruits and

vegetables as well as apparel, consumer electronics, FMCG items and medicines too.

According to Retail consultancy Technopak Advisors, the size of India’s retail industry is about

$300 billion and it will go to $427 billion by the end of 2010.

Hyderabad on Friday saw the new dawn of a new revolution. Reliance Industries Ltd?s dreams

of a retail revolution got kick-started in the Andhra Pradesh capital when its Reliance Fresh

supermart opened its doors to the world. And, several hundred customers flocked to try out what

all are on offer on the first day.

The inauguration event saw customers cut red ribbons to open the store widely believed as

Reliance Industries Ltd?s first in the series of several thousand stores that are to come. Following

the first, the company opened 10 more on Friday as a first step towards creating a mega retail

chain across the country.

The Reliance Fresh supermarket chain is RIL?s Rs 25,000 crore venture and it plans to add more

stores across different geographies, and eventually have a pan-India footprint by year 2011. 

The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy

products and also will sport a separate enclosure and supply-chain for non-vegetarian products. 

Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job

opportunities to a million people, according to the company. The company also has plans to train

students and housewives in customer care and quality services for part-time jobs. 

Currently, selling through company-owned stores currently totals just $8 billion in India.

Industry estimates say that the country?s retail industry is worth $300 billion, that is about Rs

13,50,000 crore. This stands a chance to blossom to $427 billion in the next four years.

Organized retail accounts for just over Rs 35,000 crore. Reliance Fresh bids to tap the potential

for organised retail in the country.

The opening of Reliance retail chains closely follows the moves of global players like Wal-Mart

Stores Inc and Metro AG seeking to open shop here in the country. With Reliance announcing

plans to expand, and that too rapidly, the retail scenario in the country is all set to take off in a

big way.

REVIEW OF LITERATURE

Customers are the very essential for the each and every organization. To make the new

customers and retain the customers these organization do different-different type of research. On

the base of this research these companies got the feedback of the customers and make the proper

improvement as per the customer needs.

Indian retail market is very vast and it growing with very rapid speed. India retail industry is the

largest industry in India, with an employment of around 8% and contributing to over 10% of the

country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong

income growth, changing lifestyles.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.

India retail industry is one of the fastest growing industries with revenue expected in 2007 to

amount US$ 320 billion and is increasing at a rate of 5% yearly.

To grape all these opportunity presented by the retail sector, all the organization related to this

sector attract towards this and want to increase their market share with the growth of retail

industry. For this these organization do research related to the customer behavior, customer

centricity at value format store and post purchase behavior of the customers. Also try to know

the total shopping experience of the customers with the organization.

On the base of this research the organization make the proper improvement on their retail outlets

as per the customers need and demand. This research also helpful to monitor and measure the

customers need and perception. So the voices of the customers are very essential for the

business.

With the change of the time the way of retailing also changes. In old time the format of retailing

was traditional like, general store, departmental store and stall etc. They were rarely did any

research to know about their customers need and perception. But now the trend is changing and

the many big brand name companies enter in this business like Reliance Retail, Pantaloons Retail

India Ltd., Aditya Birla Group, Bata India Ltd., Shoppers Stop, Music World Entertainment Ltd.

etc. These companies want to capture more market share and increase their range of the

customers, so these companies time to time do the research related to the customer’s behavior

and centricity at value format store.

IN RELIANCE RETAIL LTD.

Reliance Retail is one of the big and branded retail company in the India. It has speared there

business in all over India. To improve their operation and satisfy their customers Reliance

introduce with new concepts and projects. Operation “NAMESTA” is the part of this concept.

RESEARCH METHODOLOGY

OBJECTIVE

The main objective of this project is to take the customers feedback through a questioner and use

this feedback to do the proper improvement in the stores as per the customers wants.

1. To interact with the customers and document the feedback in prescribed format.

2. To know the additional comments or suggestion of the customers.

3. TO make the improvement on the base of the customers feedback and suggestions.

Scope

4. This study will be helpful to know about the customer’s behavior about the value format

stores.

5. This study helps me

6. 1. This study helpful to retain the customers.

7. 2. To know about the opportunity and threat available in the market.

8. 3. To know about the consumers behavior.

9. 4. To know the improvement need in the stores, according to the customer demand.

10. 5. Identifying the factors influencing purchase decisions.

11. 6. To know about the strategy of the company.

12. 7. To know about the operation do within the stores.

Meaning:

Research Methodology is a way to systematically study & solve the research problems. He must

clearly state the methodology adopted in conducting the research so that it may be judged by the

reader whether the methodology of work done is sound or not.  

 Research in common parlance refers to a search for knowledge. It is a scientific and systematic

search for pertinent information on a specific topic. In fact, research is an art of scientific

investigation. It is often referred as voyage for discovery.

Research methodology is a way to systematically solve the research problem. It is a science of

studying how research is done scientifically. In it, we study the various steps that are generally

adopted by a researcher in studying a research problem along with the logic behind them .when

we talk of research methodology, we not only talk of research methods but also consider the

logic behind the methods we use in context of our research study and explain why we are using a

particular method or technique

Research Design

Research design is the arrangement of conditions for collection and analysis of data in a manner

that aims to combine relevance to the research purpose with economy in procedure. Keeping in

mind the objective of the study the research design kept is exploratory. It allows the study of

specific concerns and theory. The researcher will be consulted various magazines, newspapers,

books, and reference materials, based on which a pre test was conducted. A pre test is essential to

have an idea of the most preferred brand in the urban market based on which the final

questionnaire will be prepared.

The research will be carried out by collection of data through interviews conducted at the

personal interview. To meet the required objectives the instrument will be used for collecting

data was questionnaire method. Questionnaire is defined as a general term to include all

techniques of data collection in which each person is asked to respond to the same set of

questions in a predetermined order. Descriptive research using opinion questionnaires will enable

researcher to identify and describe the consumer preferences and needs.

Data Collection

Primary Data will be collected through structured questionnaire. Secondary data sources such as

use of the books, research journals, websites and commercial reports published by well-known

authors in the similar area have been analyzed. However, these are the only important secondary

sources that were found to be of any relevance to the research area.

Research Instrument: - Questionnaire and Personal Interview

Sampling

Simple random sampling

Sample Size

550 customers

Tools and Techniques

Word, Excel

Store Observation Report – OPERATION NAMASTE

Name of the Trainee:

For the Day:

Store-1 Store-2

Name/Code Name/Code

Store Cleanliness

Entrance

Grooming and Service

Total Score

Any other comments

Reliance Retail Customer Service Questionnaire

Store Name/Code:

Date:

Name of the Trainee:

1) How often do you visit the store?

a) Daily b) Weekly c) Monthly d) 1st time visitor

2) What brings to you the store?

a) Price and Promotion b) Service c) Quality

d) Convenience e) Other …………….

On a scale of 1-4, please mark the following question.

1- Strongly Agree 2- Agree 3- Disagree 4- Strongly Disagree

3) How do you rate the entrance 1 2 3 4

4) How do you rate the cleanliness of the store 1 2 3 4

5) How do you rate the price and promotion in store 1 2 3 4

6) How do you rate the freshness of fruits/vegetables 1 2 3 4

7) How do you rate the service provided by the staff 1 2 3 4

8) Did you get all you were looking for? (Yes/No) If No………….

9) Were you given correct receipt and exact change? (Yes/No)

10) How much time did you spend in queue for billing…..Minutes

11) Any specific observation/suggestions you like to share something with us

…………………………………………………………………………………………………

…………………………………………………

12) Your overall shopping experience with Reliance

a) Excellent b) Good c) Average d) Poor

Name and signature of the customer Contact No.

Male/Female

Age Group a) Less than 25 b) 25-40 c) 40-60 d) Above 60

Income Level a) Less than 2 lacs b) 2-5 c) 5-8 d) Above 8 lacs

DATA ANALYSIS AND FINDINGS

1) How often do you visit the store?

b) Daily b) Weekly c) Monthly d) 1st time visitor

2) What brings to you the store?

b) Price and Promotion b) Service c) Quality

d) Convenience e) Other …………….

On a scale of 1-4, please mark the following question.

1-StronglyAgree 2- Agree 3- Disagree 4- Strongly Disagree

3) How do you rate the entrance 1 2 3 4

4) How do you rate the cleanliness of the store 1 2 3 4

5) How do you rate the price and promotion in store 1 2 3 4

On a scale of 1-4, please mark the following question.

1- Strongly Agree 2- Agree 3- Disagree 4- Strongly Disagree

6) How do you rate the freshness of fruits/vegetables 1 2 3 4

7) How do you rate the service provided by the staff 1 2 3 4

8) Did you get all you were looking for? (Yes/No) If No………….

9) Were you given correct receipt and exact change? (Yes/No)

10) How much time did you spend in queue for billing…..Minutes

11) Your overall shopping experience with Reliance

a) Excellent b) Good c) Average d) Poor

SUGGESTIONS

On the base of the project we got the lot of suggestion from the customer’s side and lot of

suggestion and observation we observe during the project time.

According to the project, Reliance Fresh have the need of improvement into their store.

Customers want to more facility in the store with good service and affordable price. According to

the customers Reliance should have to ensure the timely availability of the product or items in

the store and also increase the number of variety of the various items specially skincare and

cosmetics products. Offer should be available with the costly items and some discount allow to

their regular customers. The price of the some products should be less than the local market price

or some additional offer available. Particular task distribute to the particular employee of the

store and increase the no. of cash counter and cashier also. Display the list of the available items

on the each counter, this is helpful for the customers in time saving and make the proper display

of the all items. These are the some suggestion/observation that will be good for Reliance Fresh

to improve their operation.

I got the many suggestion from the customer side and many suggestion I find from my own

observation.

Reliance should be available the items in the store those are affordable for the lower

middle class also.

For the quantity and price sensitive customers reliance should provide the some price

discount and extra quantity offers also.

For the female customers reliance promote itself as a family woman store.

LIMITATIONS

We have to interact only 8-10 customers daily.

Customers are not ready to give the feedback.

Some time customers not have enough time to give the feedback.

Some time customers are uneducated so they do not understand what we are asking.

BIBLIOGRAPHY

WEB: - a) www.google.com

1. BOOKS: - Marketing Management, Twelfth Edition. A South Asian Perspective, by

Philip Kotler, K.L.Keller, A.Koshy, M.Jha.

2. Marketing Research, Third Edition by G.C.Beri

3. Marketing Management, Third Edition by Ranjan Saxena

4. Marketing Research, First Edition by S.L.Gupta