Prepared by: Dave Yash N.

Roll no :06

INTRODUCTION TO RELIENCE RETAIL LTD.

Reliance Retail, Ltd. is a subsidiary company of Reliance Industries. Founded in 2006 and based in Mumbai, it is the second largest retailer in India. Reliance Retail Ltd. launched its much awaited format and Indias largest hypermarket under the brand name Reliance Mart at Iskon Mall, SG Highway, Ahmedabad ON 15TH AUGUST, 2007. Reliance Retail continued to expand presence of its value and specialty formats. During the year, Reliance Retail opened 90 new stores spanning across 'value' and 'specialty' segments. In-store initiatives, wider product choice and value merchandising enabled the business to achieve robust growth during this period.

Across India, Reliance Retail serves over 2.5 million customers every week. Its loyalty programme, "Reliance One", has the patronage of more than 6.75 million customers.

INTRODUCTION TO INDIAN RETAIL SECTOR

Retailing in India is one of the pillars of its economy and accounts for 14 to 15% of its GDP. The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. Organized retail, which constitutes 8 per cent of the total retail market, will grow much faster than traditional retail. It is expected to gain a higher share in the growing pie of the retail market in India. Various estimates put the share of organized retail as 20 per cent by 2020. On 7 December 2012, the Federal Government of India allowed 51% FDI in multi-brand retail and 100% in single-brand retail in India. The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favourable and the emerging technologies facilitating operations.

Private labels, or store brands, are those owned and sold by retailers in their stores typically at a lower price because of minimal marketing and advertising expenses.

INTRODUCTION TO PRIVATE LABEL BRAND

What works for private labels, according to retailers, is that consumers trust a retailer brand to sell quality products.
Private labels tend to be 5 to 20 per cent cheaper than established brands. Since retailers are able to cut out middlemen, they pass on the cost benefit to consumers. Retailers not only make more profits by selling private labels than the brands (margins are 60 per cent more than what they get from FMCG companies), these labels help differentiate themselves from their rivals. And in the long run, they can use the private labels to attract customers. Reliance Retail uses two brand names for its food products - Reliance Select and Reliance Value.

Research Methodology
1. 2. 3.

Research statement: 1).Types of research design: exploratory and conclusive 2).Exploratory research: Secondary data, and internet. 3).Conclusive research: Single cross sectional (I have taken sample of customers of Reliance Mart). 4).Survey method: Personal interview 5).Survey Instrument: Questionnaire Target Population Defination: 1). Target population: All Customers of Reliance Mart. 2). Element: A Customer of Reliance Mart. 3). Sampling Unit: All Customer of Reliance Mart. 4). Sampling Frame: All Customer of Reliance Mart. 5). Extent: Ahmedabad. Sampling Method: 1).Scaling Technique: Likert Scale 2).Software for Data analysis: SPSS 3).Sampling method: Convenience Probability Sampling 4).Sample size: 225

RESEARCH OBJECTIVES
Primary Objective:

1. To understand the consumers preference towards private label brands vs. national brands at Reliance Mart.

Secondary Objective:

1. To identify the factors that lead to purchase of private label brands at Reliance Mart. 2. To identify the product categories preferred by customers while purchasing Private labels at Reliance Mart.

LIST OF HYPOTHESIS
1.

H0: There is no significant relationship between demographic variables and factors that influence purchase of private label products. H0: There is no significant relationship between demographic variables and purchase of private label category. H0: There is no significant relationship between demographic variables and purchase of national label category products.

2.

3.

DATA ANALYSIS AND INTERPRETATION

Ho: There is no significant relationship between demographic variables and factors that influence the purchase of private label products.

Gender and factors that influence the purchase of private label products.
Group Statistics Gender Male Factors influencing the purchase of private label products Female 90 3.37 1.690 .178 N 134 Mean 3.78 Std. Deviation 1.538 Std. Error Mean .133

Independent Samples Test Levene's Test for t-test for Equality of Means

Equality of
Variances F Sig. t df Sig. (2tailed) Mean Differenc e Std. Error Differenc e Factors influencing the purchase of private label products Equal variances assumed Equal variances not assumed 2.439 .120 1.883 222 .061 .411 .218 95% Confidence Interval of the Difference Lower -.019 Upper .841

1.849 178.588

.066

.411

.222

-.028

.849

One Way Anova : Age and Factors influencing the purchase of private label products.
ANOVA Factors influencing the purchase of private label products Sum of Squares Between Groups Within Groups Total 29.533 561.390 590.923 df 4 220 224 Mean Square 7.383 2.552 F 2.893 Sig. .023

a)

b)

Education and Factors influencing the purchase of private label products.

ANOVA

Factors influencing the purchase of private label products Sum of Squares df Mean Square F Sig.

Between Groups
Within Groups Total

2.043
588.880 590.922

3
221 224

.681
2.665

.256

.857

c)

Occupation and Factors influencing the purchase of private label products.

ANOVA Factors influencing the purchase of private label products Sum of Squares Between Groups Within Groups Total 34.679 556.244 590.923 df 4 220 224 Mean Square 8.670 2.528 F 3.429 Sig. .010

d)

Annual Income and Factors influencing the purchase of private label products.
ANOVA Factors influencing the purchase of private label products Sum of Squares Between Groups Within Groups Total 1.277 589.645 590.922 df 3 221 224 Mean Square .426 2.668 F .160 Sig. .923

Ho : There is no significant relationship between demographic variables and purchase of private label category.

Independent sample t-test :

Group Statistics Gender Purchase of private label products Male Female N 134 90 Mean 5.07 4.49 Std. Deviation 2.099 2.321 Std. Error Mean .181 .245

Independent Samples Test Levene's Test for t-test for Equality of Means

Equality of
Variances b Sig. t df Sig. (2tailed) Mean Differen ce Std. Error Differen ce Equal Purchase of private label variances assumed Equal variances not assumed 2.712 .101 1.96 4 95% Confidence Interval of the Difference Lower Upper

222

.051

.586

.299

-.002

1.175

products

1.92 6

177.751

.056

.586

.305

-.014

1.187

One Way Anova :

a)

Age and Factors influencing the purchase of private label products.

ANOVA Purchase of private label products Sum of Squares Between Groups Within Groups Total 89.256 994.749 1084.005 df 4 219 223 Mean Square 22.314 4.542 F 4.913 Sig. .001

b)

Education and Factors influencing the purchase of private label products.

ANOVA

Purchase of private label products

Sum of Squares Between Groups Within Groups Total 4.055 1079.950 1084.005 df 3 220 223 Mean Square 1.352 4.909 F .275 Sig. .843

c)

Occupation and Factors influencing the purchase of private label products.

ANOVA Purchase of private label products Sum of Squares Between Groups Within Groups Total 84.424 999.581 1084.005 df 4 219 223 Mean Square 21.106 4.564 F 4.624 Sig. .001

d)

Annual Income and Factors influencing the purchase of private label products.
ANOVA Purchase of private label products Sum of Squares Between Groups Within Groups Total .597 1083.408 1084.005 df 3 220 223 Mean Square .199 4.925 F .040 Sig. .989

Ho : There is no significant relationship between demographic variables and purchase of national label category products.

Independent Sample t-test :

Group Statistics Gender Purchase of national label products Male N 134 Mean 5.11 Std. Deviation 2.133 Std. Error Mean .184

Female

91

4.56

2.441

.256

Independent Samples Test

Levene's Test for Equality of t-test for Equality of Means

Variances
F Sig. t df Sig. (2tailed) Mean Differenc e Std. Error Differenc e Equal variances Purchase of national label products Equal variances not assumed 1.758 175.535 .080 .554 .315 -.068 1.177 95% Confidence Interval of the Difference Lower Upper

assumed

4.342

.038

1.804

223

.073

.554

.307

-.051

1.160

One Way Anova :

a)

Age and Factors influencing the purchase of private label products.

ANOVA

Purchase of national label products

Sum of Squares Between Groups Within Groups Total 86.734 1071.233 1157.967 df 4 220 224 Mean Square 21.684 4.869 F 4.453 Sig. .002

b)

Education and Factors influencing the purchase of private label products.

ANOVA

Purchase of national label products

Sum of Squares Between Groups Within Groups Total 9.012 1148.955 1157.967 df 3 221 224 Mean Square 3.004 5.199 F .578 Sig. .630

c)

Occupation and Factors influencing the purchase of private label products.

ANOVA Purchase of national label products Sum of Squares Between Groups Within Groups Total 84.198 1073.769 1157.967 df 4 220 224 Mean Square 21.050 4.881 F 4.313 Sig. .002

d)

Annual Income and Factors influencing the purchase of private label products.

ANOVA

Purchase of national label products

Sum of Squares Between Groups Within Groups Total 2.582 1155.386 1157.967 df 3 221 224 Mean Square .861 5.228 F .165 Sig. .920

FINDINGS

Majority of the customers surveyed were aware of the Private Labels of Reliance Mart.

Reliability, better quality, price, promotional displays, availability of products, & free offers are highly influencing factors for purchase of the private labels.
Most of the customers purchase the private label on weekly basis.

Customers highly prefer Grocery and frozen items of Private Label of Reliance. Which are Reliance Select & Reliance Value.
Home Care & Personal Care products of private label are less preferred by the customers because the popularity of other National Brands is very high. For example, If Dettol hand wash & Externa hand wash of Reliance is placed before a customer than most of the customer will choose Dettol because of the popularity of the product.

CONCLUSION

The research is conducted in order to find out the preference among the customers for private label brands and their preferences to measure the various factors as price, quality, reliability, promotional displays, and advertisement that may satisfy their expectation towards the private label products. From the study it was found that most of the customers are aware about Private Brands of Reliance Mart. But there are many customers who are not aware about the private labels. And customers who are aware about the private labels but not buying these products. Customers are preferring food products of the private brand of reliance. In which STAPLE and Frozen products are the first choice of the consumers. I found that customers are less preferring Home Care Products because the customers are afraid of the quality. Overall, the consumers preference towards private label is good. If some steps will be taken then, it can be a highest selling brand of the store.

SUGGESTIONS

Some of the customers are not aware about the Private Labels of Reliance. So, some promotional activities should be done to increase the awareness. Free samples of the Private Label products should be offered so that the customers can identify the quality of the product. Grocery of the Reliance is popular. But many FMCG products like EXTERNA hand wash, AMARA soap, GRAPHIT DEO, etc. are not such popular. Thus it should be promoted so customers can avail the products.