A MAJOR RESEARCH PROJECT ON

TO STUDY THE SUPPLY CHAIN MANAGMENT & DISTRIBUTION CHANNELS OF RELIANCE FRESH IN INDORE CITY

Submitted to DAVV (Indore) In partial fulfillment of The degree of MASTER OF BUSINESS ADMINISTRATION (2009-11)

Guided by Name of Guide

Submitted by Name of Student

Prof. Amit Vijay Patil Faculty , VITS Indore

Brajesh patel Roll. No.09150430

Vindhya Institute of Technology & Science Devi AhilyaVishwa Vidyalaya, Indore (M.P.)

Vindhya Institute of Technology & Science Devi AhilyaVishwa Vidyalaya, Indore (M.P.)

Certificate
This is to certify that Mr. BRAJESH PATEL .of MBA 4th Sem. in the academic year(20092011) of Vindhya Institute of technology & science, DAVV, Indore has completed the project report entitled TO STUDY THE SUPPLY CHAIN MANAGMENT & DISTRIBUTION CHANNELS OF RELIANCE FRESH IN INDORE CITY towards the partial fulfilment of degree of Master of Business Administration (Full Time) Under my guidance. He/ She has carried out this project with full dedication & sincerity and this report is a satisfactory account of his/her work

Date:

Guided byProf. Amit Vijay Patil

Acknowledgement
The feeling of acknowledgement something and expressing it in words are two things apart. It is weakness, but we honestly admit that when we truly wish to express our warm gratitude and indebtedness towards somebody, we are always at loss of word. The project could not have been completed without support extended to me by Prof. Amit

Vijay Patil. He/ She had faith in me and urged me to do things innovatively, which helped
me to successfully complete my project. I would also like to thank Sub Guide/ Helping faculty, whose invaluable support was necessary for me to achieve my objective and finally a word of gratitude to my parents & all my friends who were always there with their support and encouragement.

BRAJESH PATEL

Vindhya Institute of Technology & Science Devi AhilyaVishwa Vidyalaya, Indore (M.P.)

Declaration
I , BRAJESH PATEL hereby declare that the Major Research Project entitled TO STUDY

THE SUPPLY CHAIN MANAGMENT & DISTRIBUTION CHANNELS OF RELIANCE FRESH IN INDORE CITY submitted by me to Vindhya Institute of
technology & science, Indore towards the partial fulfilment of the Degree of Master of Business Administration (full time) represents my own work except for the guidance and / or suggestion received which has been suitably acknowledged.

Date

BRAJESH PATEL MBA IV SEM

EXECUTIVE SUMMARY
Reliance Industries Limited
The Reliance Group, founded by Late Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 34 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.

Reliance Fresh
The retail chain division of Reliance Industries of India which is headed by Mr. Mukesh Ambani Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is RILs Rs 25,000 croreS venture and it plans to add more stores across different areas and eventually have a pan-India footprint by year 2012. 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.

The Indian retail market, which is the fifth largest retail destination globally, according to industry estimates it is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015. Simultaneously, modern retail is likely to increase its share in the total retail market to 22 per cent by 2010.

COMPANY PROFILE
RELIANCE Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it.

Dhirubhai H. Ambani Founder Chairman Reliance Group December 28,1932 July 06, 2002

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest business house. The Group's activities span exploration and production of oil and gas, refining and marketing, petrochemicals, textiles, financial services and insurance, power, telecom and infocom initiatives. The Group exports its products to more than 100 countries the world over. Reliance Group revenue is equivalent to about 3.5% of India's GDP. The Group contributes nearly 10% of the country's indirect tax revenues and over 6% of India's exports.

The Reliance Group Companies, acknowledged as one of the best-run companies in the world, include: Reliance Industries Limited, Reliance Capital Limited, Reliance Industrial Infrastructure Limited, Reliance Telecom Limited, Reliance Infocom Limited, Reliance General Insurance Company Limited, Indian Petrochemicals Corporation Ltd. and Reliance Energy Limited. The companys refinery at Jamnagar accounts for over 25% of India's total refining capacity and their plant at Hazira is the biggest chemical complex in India. The Reliance Group was founded by the legendary Dhirubhai H. Ambani. He has been one among the select Forbes billionaires and has also figured in the Sunday Times list of top 50 businessmen in Asia. In 1975, the company expanded into textiles. Dhirubhai Ambani introduced equity cult in India when Reliance went public with IPO in 1977. Since the launch of its IPO RIL has expanded rapidly and integrated backwards into other industry sectors, most notably the production of petrochemicals and the refining of crude oil. Dhirubhai led the evolution as a global leader in the materials and energy value chain businesses. Today, Reliance Group's activities range from exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals) to textiles and retail. Reliance enjoys global leadership in its businesses. It is the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. Presently, Reliance Group has more than 25,000 employees on its rolls and exports products in excess of US$ 15 billion to more than 100 countries in the world.

Reliance fresh

MUKESH AMBANI RELIANCE FRESH AAPKA FRESH AAPKE PADOS MEIN

BACKGROUND We can see many examples of businesses where, first we grow and then think of expanding but Reliance is quite different. Reliance has developed such huge amount of resources and capital over the years that whenever it steps into any segment it is not required to wait for growing signal, thats why it always thinks of expanding without any boundaries. Reliance retail is next Step by RIL which will be a pan India project. Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is RILs Rs 25,000 crore venture and it plans to add more stores across different segments, 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 lakhs 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. The company is planning on opening new stores with store-size varying from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products and dairy products. Each store is said to be within a radius of 1-2 km of each other, in relation to the concept of a neighbour store. However, this is only the entry roll-out that
the company has planned. Bangalore is said to have 48 stores in all by the end of the year. In a dramatic change due circumstances prevailing in UP, West Bengal and Orissa, It was mentioned recently in News Dailies that, Reliance Retail is moving out stocking. Reliance Retail has decided to minimize its exposure in the fruit and vegetable business.

The company may not stock fruit and vegetables in some states, Orissa being one of them. Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in Hyderabad, not only did the company said the stores main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its farm-to-fork theory. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way. A typical Reliance Fresh store is approximately 3000-4000 square Feet and

caters to a catchment area of 1-2 km.

With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Groups foray into organized retail. RRL launched its first store in November 2006 through its convenience store format Reliance Fresh. During the year, RRL also focused on building strong relationships in the agribusiness value chain and has commenced marketing fruits, vegetables and staples that the company sources directly to wholesalers and institutional customers. RRL provides its customers with high quality produce that has better shelf life and more consistent quality than was available earlier. Through the year, RRL also expanded its supply chain infrastructure. The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner. Recognizing that strategic alliances are going to be a key driver to its retail business, RRL established key joint ventures with international partners in apparel, optical and office products businesses. Further, RRL will continue to seek synergistic opportunities with other international players as well. When the store was launched it had some initial problems Post launch, in a dramatic shift in its positioning and mainly due to the circumstances prevailing in UP, West Bengal and Orissa, it was mentioned recently in news Dailies that, Reliance Retail is moving out of stocking fruits and vegetables. Reliance Retail has decided to minimize its exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super market focusing on categories like

food, FMCG, home, consumer durables, IT and wellness, with food accounting for the bulk of the business.

When the first Reliance Fresh store opened in Hyderabad in 2006, not only did the company said the stores main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its farm-tofork theory. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way. Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various formats that Reliance has rolled out. In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty Stores branded as iStore, starting with Bangalore.

Popular profile at reliance retail

Management team

Name Mr. Mukesh Ambani Nikhil R Meshwani Hital R Meshwani Madhumita Mohanti Akashay Lokhande

Designation Chairman&Managing Director Executive Director Executive Director Deputy General Manager Area Manager-Operation &Sales and NSO Vice-President-Business Merchandise Head State Head Category Head,

Devandra Chawla

Zubin Nowrojee, Mangement

Product range of reliance fresh

Vegetables and fruits: This is the specialty of the store as they provide fresh fruits and vegetables at a rate lower than the market price.

Households Items: In the stores we can get items which are at slight premium rate than market price, but usually of high quality.

Food and Beverages: This area of the product line they stock all the premier brands and also their private label. Groceries: In this sector reliance is promoting its private label as they are promoting their own brands and they do the packaging of the product and then label it privately and then sell it at premium as compared it to the loose items.

Dairy Products: The dairy products in some locations are procured from the farmers themselves and some places they

procure it from the manufacturers. Refrigerated products: This product line is dominated by the brands available in market and very less private labelling is done. Non food items: Here we get many petty non food items at a premium than market price.

Supply chain model of reliance fresh

Reliance started its retail operations of reliance fresh stores with following supply chain model. Procuring directly from the farmers and operating with moderate margin but mass selling was key to reliance fresh operations for first few months. The following figure depicts the reliance fresh model

MODEL 1

MODEL 2
Whole Sale Trading (WST) Reliance formalized its second supply chain model to shift itself from grocery retailer to grocery supplier by focusing and establishing itself in Mandis.

STEPS IN WST MODEL

Reliance has owned farms on contract basis for production of specific crop which is decided after extensive research depending on -

Soil conditions.

 Climate conditions.

Return over costs incurred.

Different vegetables and fruits from such farms are collected through reliance own logistics and brought to collection Processing centres where quality check and other required processing is done. In processing centres workers wearing balaclavas, woollen trousers and bulky jackets work inside a room kept at a constant 30 Celsius, peeling and chopping vegetables, spinning them dry and then heaping them in small plastic packets before placing them in plastic transport crates. At the other end of the 5,000-sq-m warehouse, men unload crates of fruits from a truck pulled up to a spotless loading dock. A quality-control expert samples every tenth crate; if the fruits are good a team will ready them for delivery within hours to Reliance fresh stores around different places like U.P and as far away as Hyderabad and

even Mumbai (formerly Bombay). If they are not, workers will inspect the entire shipment and discard anything below standard. Merchandise from these collection processing centres are collected and loaded for Wholesale mandis. As this merchandise is to be made available by 4 A.M in morning thus deliveries in trucks are sent at time depending upon: TRANSIT TIME. Time required reaching destination i.e mandis. MARGIN TIME. Time period between a truck reaching mandi and then Unloads. Can be 2 to 3 hours. From mandis where the trucks have been unloaded, roadside vendors and pull carters buy fruits and vegetables to supply in households. In case still some vegetables and fruits are not sold reliance logistics own Transportation send them to reliance fresh stores.

Members and their Roles

Farmers: The farmers harvest the crop and bring it to the collection centre. They save on the transportation cost they would incur in taking the vegetables to the mandi. Collection Centre: One Reliance authorized person is in charge of collection centre. He inspects the quality and takes in the vegetables. He is also responsible for payment of the farmers. He ensures the loading of all vegetables in the trucks which are sent to the DC. National Sourcing: In order to provide a constant supply of all perishable vegetables warehouses have been bought where goods are kept in cold storage. Whenever there is a shortage in supply from any region then, these warehouses

takeover and start supplying goods. Eg. Tomatoes are stored in Nasik, Ratlam, Jaipur; Potatoes in Agra and Shahbad. This gives Reliance a competitive edge. It also ensures that they buy at the cheapest rate and sell it out when the rates are considerable higher. Mandi: A team of two people is situated at the mandi. These teams are responsible for constantly monitoring the rates and communicating the same to the head office. If there is an urgent need which cannot be fulfilled by the collection centre then reliance purchases the supply directly from mandi but at a rate which is 3%-4% less than the actual mandi rate. Distribution Centre: The distribution centre receives the vegetables and does a thorough quality check. They prepare the vegetables for the retail stores and also ship the vegetables depending on the requirement for each store. Retail Stores: They are just responsible for receiving and checking the quantity of vegetables arriving each night. Then they put up all good vegetables on display for customers.

The distribution centre and the local stores are rent based.
Daily rates are monitored. The farmers are paid less than the prevailing rates in mandi. If the requirement is not met through farmers then the additional goods are brought directly from mandi at a 3-4% cheaper rate from the usual mandi rate.

The total volume entering in NCR is at average around 100 tons, but due to rising prices of vegetables, the consumption has fallen. This has made the volume fall to 70-80 tons. Almost 65% of the volume bought is from Collection Centres and warehouses, the rest 35 % is procured from mandis.

OBJECTIVES OF THE STUDY

The objectives of the study are as follows:

To identify the loyal customers for Reliance Fresh and provide extended services to them.

 To understand the problems faced by the Reliance customers. To comparatively analyze the position of Reliance Fresh vis--vis its competitors. To take the feedback of the customers on the services of Reliance Fresh. To understand the Buying Behaviour of the customers. To identify the customer taste and preferences. Identifying the problem areas and addressing them personally with the help of the floor manager.

REVIEW OF LITERATURE
Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and around eight per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favourable demographic patterns, Indian retail is expected to grow 25 per

cent annually. It is expected that retail in India could be worth US$ 175200 billion by 2016.

As the nature of the study is survey. Nature of the data is primary by questionnaire to customers. The same study particularly in Indore location and for the same retail outlet is difficult to find. General information related to catchment analysis and retail store are available but it is not appropriate to mention all those information here.

Theoretical concept is taken from the different books as mention in the references. The other information is taken from the different web sites. Other data are taken from the different sources are mention in references.

The organized retail industry in India had not evolved till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and little choice

available to customers. Lack of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business giants such as Reliance, Bharti, Birla and others are now entering into retail sector.

 A number of factors are driving India's retail market. These include: increase in the young working population, hefty pay-packets, nuclear families in urban areas, increasing working-women population, increase in disposable income and customer aspiration, increase in expenditure for luxury items, and low share of organized retailing. India's retail boom is manifested in sprawling shopping centres, multiplex- malls and huge complexes that offer shopping, entertainment and food all under one roof.

But there is a flip side to the boom in the retail sector. It is feared that the entry of global business giants into organized retail would make redundant the neighborhood Kirana stores resulting in dislocation in traditional economic structure. Also, the growth path for organized retail in India is not hurdle free. The taxation system still favors small retail business.

A perfect business model for retail is still in evolutionary stage. Procurement is very vital cog in the retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable availability, unsorted food provisions and daily fluctuating prices as against consumer expectations of round-the-year steady prices, sorted and cleaned food and fresh stock at all times.

Trained human resource for retail is another big challenge. The talent base is limited and with the entry of big giants there is a cat fight among them to retain this talent. This has resulted in big salary hikes at the level

of upper and middle management and thereby eroding the profit margin of the business.

But retail offers tremendous for the growth of Indian economy. If all the above challenges are tackled prudently there is a great potential that retail may offer employment opportunities to millions living in small town and cities and in the process distributing the benefits of economic boom and resulting in equitable growth.

Rational of the study

The first step in any supply chain management calls for the researcher to define the project scope and then define problem carefully and formulate the research Objectives. An old age says, A problem well defined is half solved.

To study in brief about supply chain management. To study about the Reliance Fresh What are the expectations of customer from reliance fresh?

 To make aware the company what the customer wants from them. How company can make their customer delight. Finding source of information of consumer in respect of performance of reliance fresh.

MARKETING RESEARCH METHODOLOGY

The research is for study of specific problem and opportunities. There is a market survey done and a product performance list also. Marketing research is systematic design collection, reporting of data, analysis and is relevant to specific marketing situation facing the company.

MARKETING RESEARCH PROCESS

Marketing research involves five steps, which involves Decision Source, Research Approaches, Sampling Plan and Contact Methods.

(a)

TYPE OF RESEARCH: -

Here the method used for the

research study is the survey research as the descriptive research process. This type of research stands midway between the operational and the most popular device for obtaining desired data they are used to learn about peoples knowledge, status of reliance fresh and so on. And to measure these magnitudes in the population so have the survey is carried out in order to know the consumer perception towards the purchase of retail untruly over the facts that may affect the consumer characteristics of interest in the study.

TYPES OF RESEARCH DESIGN

In my project work I used exploratory research, as it aim to answering question about sale, brand availability, service quality, distribution pattern etc.

For conducting this study, Exploratory Research design was used, since:-

 It is natural. It is flexible. It is useful to find out the most likely alternatives. It is appropriate, when hypothesis have been established.

The objective of exploratory research is to find out new ideas, it is important to give respondents to greatest freedom of response have conducted individually or in depth interview, by which respondent asked to project themselves into a particular situation.

RESEARCH DESIGN
A research design is the specification of methods & procedure for acquiring the information needed. This is overall operation pattern or frame work that stipulates information is to be collected from which sources and by what procedure.

DATA COLLECTION
These were to type of data sources which were helpful in preparing this project report.

i. Primary Data ii. Secondary Data

The research plan can call or gathering secondary data, primary data or both. Secondary data consist of information that already exists somewhere having been collected for another purpose.

Primary Data: This marketing research project involved some primary data collection. The normal procedure was to contact the respondent and have their personal interviews together relevant information on the research topic. In this project the data collected through various respondents in this field is used as primary data. Secondary Data: Some of the records available within the internet on the topic acted as a source of secondary data.

METHOD OF COLLECTING DATA:

1) Self analysis, Questionnaire and Survey 2) Secondary data from newspapers, internet and magazines

SAMPLE DESIGN Sampling is defined as the selection of some part of an aggregate. Sampling in simply the process of learning about the population on the basis of a sample

drawn from it. Thus, in sampling instead of every unit of universe only part of universe is studied and the conclusion is drawn for the entire universe. In area of INDORE, survey in Reliance fresh retail store. So these were the respondents where the study was to be focused. For this purpose I did a survey of these respondents. These respondents were visited in outlet and required data was collected from them. SAMPLE SIZE: 100 RESPONDENTS

STATISTICAL TOOLS USED FOR ANALYSIS

Through Graphs, Pie-Charts, Tables etc.

SAMPLING TECHNIQUE
Random sampling is used for research project. I have given equal weight ages to my all respondent and chose them randomly without any bias like gender, age, income culture.

QUESTIONNAIRE

1.

Which age group do you belong? 10-30 37 31-50 49 51 & above 14

DATA COLLECTED Data collected for this questionnaire to know the age of customer of Reliance Fresh.

ANALYSIS Data collected for project from 100 responded in which 37 are the age between 10 30 and 49 are between age of 31 50 and 14 are the age of 51 & above of total respondents.

INTERPRETATION From the total respondents it analyses that most of the customers are youth. In my observation it was found that mostly people believe in convenience shopping. It helps the organisation to keep employees in such a way to understand the problem of customer easily and rectify the problem effectively.

2.

How do you come to know about Reliance Fresh?

Advertisement 45

Friends 35

Relatives 15

Others 5

50 40 30 20 10 0

45 35

15 5

Series1

DATA COLLECTED Data collected for this questionnaire to know that how people come to know about Reliance Fresh.

ANALYSIS Data collected for project from 100 responded in which 45 customers said through advertisement, 35 through friends and 15 and 5 through relatives and others respectively of total respondents.

INTERPRETATION It analyses that many customers came to know about Reliance Fresh through advertisement (newspaper) because it is the best medium to reach the maximum customers.

3.

What is your perception about Reliance in general? Excellent 35 Good 45 Fair 15 Poor 5

5% 15% 35% EXCELLENT GOOD FAIR POOR 45%

DATA COLLECTED Data collected for this questionnaire to know the perception about Reliance in general.

ANALYSIS Data collected for project from 100 responded in which 35 customers said that their perception towards Reliance Fresh is excellent, 45 customers said that it is good and 15 and 5 said that it is fair and poor respectively of total respondents.

INTERPRETATION From my research it was analysed that most of the customers perception towards Reliance Fresh is good and some said that it is excellent so they should bring some innovative ideas and provide better services and products to the customers so that their perception towards Reliance Fresh would be excellent.

4.

How often do you shop in Reliance Fresh?

Daily 10

Weekly 45

Fortnightly 20

Once in a Month 25

50 45 40 35 30 25 20 15 10 5 0 DAILY WEEKLY FORTNIGHTLY ONCE IN A MONTH Series1

DATA COLLECTED Data collected for this questionnaire to know the shopping behaviour of customer of Reliance Fresh.

ANALYSIS Data collected for project from 100 responded in which 10 are like to purchase daily and 45 are purchase weekly and 20 are purchase fortnightly and 25 are like to purchase once in a month of total respondent.

INTERPRETATION From the total respondent it analysed that most of the customer are likely to purchase on weekend. In my observation it was found that more scheme should be provided on weekend.

5.

What do you mostly shop at mentioned store?

Fruits & Vegetables

Grocery

Food Items

Non-Food Items

48

25

17

10

Series1 48

25 17 10

Fruits & Vegetables

Grocery

Food Items

Non-Food Items

DATA COLLECTED Data collected for this questionnaire to know the products which are like to purchase by the customer.

ANALYSIS Data collected for project from 100 responded in which 48 customers are like to purchase Fruits & Vegetables and 25 are like to purchase Grocery and 17 and 10 are like to purchase Food Items and Non Food Items respectively.

INTERPRETATION From the total respondent it was analysed that most of the customer are like to purchase Fruits & Vegetables from the store. Company should try to retain the customer and should increase the variety of non food items. 6. Preference of shopping?

Quality

Brand

Price

One Stop Shop

25

35

10

30

Series1 35 30 25

10

Quality

Brand

Price

One Stop Shop

DATA COLLECTED Data collected from this questionnaire is to know the preference of shopping.

ANALYSIS Data collected for project from 100 responded in which 30 customers are like to prefer One Stop Shop, 25 customers are like to purchase quality product and 35 customers believe in reliance brand and only 10 like to prefer price of the product. INTERPRETATION From the total respondents it was analysed that most of the customers are believe in reliance brand like to purchase qualitative product in one stop shop. Here it was observed that people want to purchase fresh and original product and want better service.

7.

Which store do you keep in preference for purchasing? Reliance Fresh Spencer Big Bazar More Super Market Others

30

20

25

15

10

10% 15% 30% Reliance Fresh Spencer Big Bazar More Super Market Others 25% 20%

DATA COLLECTED ANALYSIS Data collected for project from 100 responded in which 20 customers like to purchase from Spencer, 25 prefer Big-Bazaar, 30 customers give preference to Reliance Fresh and 15 and 10 are like to purchase from More Super Market and Others respectively of total respondent. INTERPRETATION In my observation it was found till today organised retail sector didnt penetrate the market. Company should try to open new convenience store and provide more scheme and good service to customer to penetrate the market. Initial it may be costlier, but it will give long term benefit. Data collected from this questionnaire to know the preference of the purchasing (comparison of store to other).

8.

advertisement and promotion influence your shopping decision? Yes No

65

35

NO, 35

YES, 65

DATA COLLECTED Data collected from this questionnaire to know the effect of promotion scheme on purchasing.

ANALYSIS Data collected for project from 100 responded in which 65 customers are like promotion scheme and 35 are those people which say promotion scheme doesnt effect on purchasing.

INTERPRETATION In my observation it was found that promotion scheme is must to sustain customer attract customer and influence the purchasing.

9.

Which form of advertisement do you think is most effective?

Print / Newspaper 35

Television 20

Radio 10

Telephone 35

Series1 35 35

20

10

PRINT/NEWSPAPER

TELEVISION

RADIO

TELEPHONE

DATA COLLECTED Data collected from this questionnaire to know the better advertisement mode of promotion.

ANALYSIS Data collected for project from 100 responded in which 20 customer say TV and 35 say print or newspaper, 10 say radio and 35 customer are say telephone.

INTERPRETATION According to respondents result company can choose either telephone or print or newspaper as best for advertisement.

10. Did you get help from CSA (Customer Service Associates) / Staff when Asked?

Yes 45

No 20

Sometimes 30

Never 5

NEVER, 5

SOMETIME, 30

YES, 45

NO, 20

DATA COLLECTED Data collected from this questionnaire to know about CSA performance.

ANALYSIS Data collected for project from 100 respondent in which 45 customer say yes and 20 say no, 30 say sometimes and 5 say never.

INTERPRETATION According to the respondent customers are not fully satisfied with the CSAs performance, company should recruit some new skilled employee for better performance.

II ANALYSIS AND INTERPRETATION OF DATA

ANALYSIS

Understanding the consumer buying behaviour in reliance fresh

DEFINITION

Purchase decision making pattern that is a complex amalgam of needs and desires and is influenced by factors such as the consumers Societal role (parent, spouse, worker etc.) Social and cultural environment and norms. Aspirations and inhibitions. Buying Behaviour is in the advertising, marketing, sales and purchasing and Procurement subjects.

LIMITATIONS OF THE STUDY

The project has some limitations because it is totally based on efforts of individuals. Peoples may be careless and may not give correct answer to the questions, because of so many reasons.

The project has some limitations because it is totally based on efforts of individuals.

Peoples may be careless and may not give correct answer to the questions, because of so many reasons.

It is totally based on personal efforts of individuals. Some of the consumers are unable to understand the questionnaire.

Some consumers are not interested in filling the Questionnaire.

FUTURE PLAN OF RELIANCE FRESH

Plans to invest Rs 25000 Crore in next 4 year in their retail division Every Indian Consumer

Train students and housewives Customer care & Quality service Part time job New format of food and caf Reliance food Private label sale Kirana store Pharmacy retail store 6000 outlets 784 cities

Launch soaps, detergents, cosmetics and non FMCG products Private label

FINDINGS & DISCUSSION

Majority of customers here is female.

Majority of customers are young.

Majority of customers like to purchase Fruits and Vegetables from Reliance fresh.

Customers like Brands and one stop shopping.

Reliance Fresh and Big Bazar are the first choices of customer.

Advertisement is the biggest way to attract the customer.

Promotion scheme is not so easy to understand for customer but advertisement is easy for them to understand.

Most of customer is not fully satisfied with store.

Issuing Pamphlets is the best way for attracting the customer.

More and more skilled workers should be appointing for the better work.

Most of the Customers are regular visitor but there frequency of visit is less.

SUGGESTIONS:

 Effective utilization of storage space is possible. Possibility of Non-Food FMCG Effective utilization of empty Shelves Consistency in quality should be maintained Proper training should be imparted to CSAs. Sample of wheat and other staple items can be kept for better exposure. More promotional activities Update of New Arrivals: Send timely update to the customers through the database, it will create awareness in the mind of customers. There should be a centralized complaint system More billing counters should be added to save time during peak hours There should be separate billing counters for Credit Card Holders, Aged People and for customers who purchase few items Membership Card should be made up of plastic instead of paper Staff should be well trained and has up-to-date information Home delivery facility need to be improved More staff need to be recruited

RECOMMENDATION FOR RELIANCE FRESH

As people prefer to buy from local kirana store because of location so Reliance Fresh has to open its new store at very main location in the city because the most important thing in Retail is Location Location Location

As per survey conducted most of the people came to know about organized store because of print media so Reliance must put more emphasis on this channel of communication and promotion means print media

As customer prefer to buy from organized store firstly due to location so Reliance must open its store at convenience location, then customer prefer quality so Reliance must put only quality products inside the store

As customer prefer to buy Fruits and Vegetables on daily basis , grocery items on monthly basis, cosmetics items on monthly basis, Beverages and snacks on weekly basis and Ready to eat food on monthly basis and people prefer to buy products whenever they required so Reliance Fresh must put all the items in shelves every time

People dont prefer to buy frozen food and prefer to eat homemade food so Reliance fresh must not put frozen food in Reliance fresh store to save inventory cost

As about 33 % customer found that CSA does not approach customer from the front the CSA only help when they are asked to help, so CSA staff must approach to customer from the front and help the customer and try to sell more and more items to increase the sale of Reliance Fresh store

As some the customer found the CSA behavior is rude toward the customer so CSA must change their attitude toward customer and feel the customer proud because customer is King and a satisfied customer can bring 10 new customer by word of mouth it just like a chain

As most of the customer found that pricing of the items in Reliance fresh store is higher than outside and as Indians are price sensitive so must keep pricing of our products less than outside

As our most of the customer are from lower income group so we must keep merchandise according to their needs.

Most of the people visit the retail store as a leisure time activity so retail store should use some strategy to generate some income from such people like retail store should charge for vehicle parking. Store also put some items to increase impulse buying

As the increase of woman in purchasing and visiting the retail store, store should carry such items which can increase the attention of the woman.

QUESTIONNAIRE

Name - . Contact No. -

1. Which age group do you belong? a. 10 30 b. 31 40 c. 41 50 d. 50 above

( ) ( ) ( ) ( )

2. How do you come to know about Reliance Fresh?

a. Advertisement b. Friends c. Relatives d. Others

( ) ( ) ( ) ( )

3. What is your perception about Reliance in general?

a. Excellent b. Good c. Fair d. Poor

( ) ( ) ( ) ( )

4. How often do you shop in Reliance Fresh?

a. Daily b. Weekly

( ) ( )

c. Fortnightly d. Once in a Month

( ) ( )

5. What do you mostly shop at mentioned store? (You can tick more than one)

a. Fruits & Vegetables b. Grocery c. Food Items d. Non-Food Items

( ) ( ) ( ) ( )

6. Preference of shopping?

a. Quality b. Brand c. Price d. One Stop Shop

( ) ( ) ( ) ( )

7. Which store do you kept in preference for purchasing?

a. Reliance Fresh b. Spencer c. Big Bazaar d. More Super market e. Others

( ) ( ) ( ) ( ) ( )

8. Do advertisement and promotion influence your shopping decision?

a. Yes b. No

( ) ( )

9. Which form of advertisement do you think is most effective?

a. Print / Newspaper b. Television c. Radio d. Telephone

( ) ( ) ( ) ( )

10. Did you get help from CSA (Customer Service Associates) / Staff when asked?

a. Yes b. No c. Sometimes d. Never

( ) ( ) ( ) ( )

CONCLUSION
Now at the end of my Project when I think what I got during these two months, the one thing that comes to my mind is that this has been a life time opportunity and a great learning experience for me.

Some of the things that I learned are: How to handle customers: The first thing that I learned is how to handle customers. After a lot of experience at store I realized that it is a very difficult job to make a customer satisfy as they are always complaining about something or the other.

Flexibility in work: One of the major lessons that I got is flexibility in work. I had to work there for 9 hours every day and sometime more than that. I had to stand there all the day and finish the tasks assigned. I realized it is very difficult to adjust with the schedule of retail stores. For the first time in my lives I learnt to work on Sundays and holidays.

Exposure of Retail industry: Before going to the SIP I did not know much about Retail Industry. But after finishing this project I got an exposure of Retail, an extremely profitable and established business in the first world countries and an emerging sector in our country. As I have chosen Retail as my minor specialization this experience will help me in my future.

Time Management: I learned how to manage a number of tasks in a given time. At store I had to deal with customers and I was given tasks by the store manager and store supervisor which I had to finish on time. At the same time I worked on my project. Thus I learned time management.

Experience of working in a group: The last thing that I learned is how to work in a group. I worked with other staffs at the store. It was my first experience to work as a team in the corporate world.

BIBLIOGRAPHY:

Books\Magazines\Journals:

Kotler, Philip 2000, Marketing Management, 10th Ed. Kotler Philip, Marketing Management, New Delhi, Pearson education Inc, 2006 Kothari, C.R., Research Methodology Methods and Techniques, New Delhi, New Age International (P) Ltd, 1990 Kotler Philip, Marketing Management (12th Edition), Pearson Pub. Annual Report Reliance Industries Ltd. Annual Report of Reliance Fresh

WEBBLOGRAPHY

www.google.com www.reliancefresh.com www.ril.com www.econoictimes.indiatimes.com www.thehindubusinessline.com www.retailyatra.com www.wikipedia.com