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A Dissertation Report Titled “A Study on Measuring Customer

Satisfaction at ‘Reliance Fresh’ Retail Outlets in Pune”
Submitted in Partial Fulfillment of the Requirements of
Pune University for the Award of the Degree of
Master of Business Administration
Submitted By
Suraj Thakkar

Under the Guidance of
Prof. Yogesh Hole

1

Declaration
I, Suraj Thakkar hereby declare that this dissertation titled, “A study on measuring
customer satisfaction at ‘Reliance Fresh’ retail outlets in Pune.” is record of original and
independent study carried out by me under the guidance of Prof. Yogesh Hole, Sinhgad
Business School, Pune, submitted in the partial fulfillment of the requirement of the Pune
University, for the award of degree of Masters of Business Administration.
I further declare that this report prepared is the original study conducted by me and has not
been submitted earlier for the award of any other Degree / Diploma by Pune University or
any other University.

Place: Pune

Suraj Thakkar

Date:

2

Certificate from the Guide
Certified that this dissertation titled, “A study on measuring customer satisfaction at
‘Reliance Fresh’ retail outlets in Pune” is record of original and independent study carried
out by Suraj Thakkar of 4th Semester MBA under my guidance.
This report prepared by him is original and has not formed a basis for the award of any other
Degree / Diploma by Pune University or any other University.

Place: Pune

Prof. Yogesh Hole

Date:

3

Prof. “A study on measuring customer satisfaction at ‘Reliance Fresh’ retail outlets in Pune” is record of original and independent study carried out by Suraj Thakkar of 4th Semester MBA under the guidance of Prof.Certificate Certified that this dissertation titled. Chetan Choudhary Director Place: Pune Date: 4 . Yogesh Hole. This report prepared by him is original and has not formed a basis for the award of any other Degree / Diploma by Pune University or any other University. Yogesh Hole Department of MBA Place: Pune Date: Dr.

who had provided all the required facilities to carry out the dissertation project work and nurturing my skills to execute the requirements. Yogesh Hole. Last but not the least I thank my dear parents. Sinhgad Business School. Suraj Thakkar Date: 5 . I am thankful to Dr. I offer my regards and blessings to all my Professors of SBS and all the people who supported me in any respect during the completion of the dissertation project. I am heartily thankful to my guide Prof. guidance and support from the initial to the final level enabled me to develop an understanding of the subject. Chetan Choudhary. strength. whose encouragement. inspiration and encouragement for whatever I am today. Inputs from such helping hands are always like very essential because more often or not certain mistakes which go unnoticed from our eyes.Acknowledgement The toughest of endeavors in the world is not possible without the support of a helping hand which guides and motivates a person to take on any challenge head on. teachers and friends who have been source of support. Director of Sinhgad Business School.

Chapter 01 Introduction 6 .

where they stand in comparison to their competitors. There is obviously a strong link between customer satisfaction and customer retention. Migration from unorganized to organized retail has been visible with economic development in most countries The Indian retail industry is the fifth largest in the world. retailing in India – though large in terms of size .Topic: “A study on measuring customer satisfaction at ‘Reliance Fresh’ retail outlet in Pune” 1. 7 . understanding customer service and measuring customer satisfaction are very crucial. In a climate of decreasing brand loyalties. Comprising of organized and unorganized sectors. chart out path future progress and improvement. has deepest penetration into rural India and accounts to about 10-11 % of’ India’s GDP and around 8%of the employment. It is country’s largest source of employment after agriculture. With better understanding of customer perceptions.is highly fragmented and unorganized. companies can determine the customers need e actions required to meet the can customer’s needs. Customer perception of service and quality of product will determine the success of the product or service in the market. Retailing like rest of the world retailing is one of the largest industries in India with sales amounting to about $350 billion. With close to 12 million retail outlets the country has one of the highest retail densities worldwide. In a sharp contrast to the retail sector in developed economies. It’s considerably more expensive to attract new customers than it is to keep old once happy. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. Inefficiency in the existing supply chains presents further opportunity for organized players to draw on this large market even as lack of consumer culture and low purchasing power restricted the development of modern formats.1 INTRODUCTION Customer satisfaction is a measure of how product and services supplied a company can meet the customer expectations. but organized retail is estimated at only US$ 8 billion. India retail industry is one of the fastest growing industries in India. They can identify their own strengths and weaknesses. Customer satisfaction is still one of the single strongest predictors of customer retention.

the industry is getting more popular these days and getting organized as well. As retail marketing is one of the most dynamic and exciting areas of growth in the global economy so. is to find things that you can do for customers that will modify their behavior in profitable ways. establish customer profiles. as. savvy retailers are focusing on customer-centric service. pound. Because competition in the retail industry can be fierce.especially over the last few years. to retail cloth or groceries. etc. as a retail trade. to retail slander. 35.000 crore in 2004-05 to Rs. 1. Though initially. gallon. stand out in a saturated marketplace and succeed despite tightening margins.  To sell in small quantities.opposed to wholesale. engaged in retailing commodities. Sometimes. to report.  Done at retail. the retail industry in India was mostly unorganized. The India retail industry is expected to grow from Rs. the industry is expected to grow at a pace of 25-30% annually. such organizations need the best micro marketing tools available to analyze where to place new stores. 1. -. a retail grocer. however with the change of tastes and preferences of the consumers. as by the single yard.3 Importance of Retail Marketing The retail landscape is in a constant state of change. their customers. to beat the competition. and the importance of strategic location.2 Retail Meaning and Definition  To distribute in small portions or at second hand. 8 .  The sale of commodities in small quantities or parcels. The trick in retailing.. 109. to tell again or to many (what has Been told or done). A successful retail organization understands their market. to sell directly to the consumer. personalization and loyalty programs to attract and retain customers. and determine best marketing practices in order to find new customers. With growing market demand. as. the sale of commodities at second hand. therefore.000 crore by the year 2010.

1. retail marketing has evolved to become a mosaic of mass media branding.5 Principles of sampling The idea behind principle of sampling is that we seek knowledge about the total units by observing a few units and extend our inference about the sample to the entire population. research has been done in different service sectors. 9 .  It emphasizes development of general principles of theories helpful in predicting in future occurrence.  It is directed towards aiming at a solution to a problem.6 Questionnaire This method of data collection is quite popular in case of big enquiries. 1. to find out the drivers of customer satisfaction with respect to service quality and service features of Reliance Fresh products. A questionnaire consists of a number of questions printed or typed in a defined order on a set of forms.4 Definition of research Research is a more systematic activity directed towards discovery and development of an organized body of knowledge.7 Need for the study Over the years. To survive in competitive market and make the necessary improvements in the service quality and feature trend and comparison on is a need for study. The questionnaire is mailed to respondents who are expected to read and understand the questions and write down the reply on the space meant for the purpose in the questionnaire itself. 1. even in retail services. and loyalty programs. tactics for driving store traffic. instore experience. 1.  It involves gathering new data from primary or firsthand sources and using the existing data for the new purpose.  Based on observed experience or empirical evidence.As retailers strive to touch consumers at every step of the purchase cycle.

Chapter 02 Research Methodology 10 .

1 Introduction India’s service sector has matured considerably during the last few years and has been globally recognized for its high growth and development. which is the fifth largest retail destination globally. but organized retail is estimated at only US$ 8 billion. it has become very crucial for companies to attain high customer satisfaction for long term sustainable growth and like companies of the other business domains. has deepest penetration into rural India and accounts to about 10-11 % of’ India’s GDP and around 8%of the employment. the retail sector is expected to contribute to 22 per cent of India's GDP by 2010. Thus the study is conducted to understand the satisfaction level of consumer that may be influenced by the Price. Inefficiency in the existing supply chains presents further opportunity for organized players to draw on this large market even as lack of consumer culture and low purchasing power restricted the development of modern formats. Quality. With close to 12 million retail outlets the country has one of the highest retail densities worldwide. The Indian retail market. As per a study conducted by the Indian Council for Research on International Economic Relations (ICRIER). it is very crucial for any company to learn what actually differentiates the satisfied customers from the unsatisfied ones. Retailing like rest of the world retailing is one of the largest industries in India with sales amounting to about $350 billion. Retail also considers their customers as the most important asset. Therefore in the current scenario. is not just a theory but also an economic fact. In a sharp contrast to the retail sector in developed economies. and Service Convenience of the products. has been ranked as the most attractive emerging market for investment in the retail sector by AT Kearney's eighth annual Global Retail Development Index (GRDI). retailing in India .though large in terms of size . in 2009.is highly fragmented and unorganized. Migration from unorganized to organized retail has been visible with economic development in most countries. The project 11 .2. In today’s complex business environment. It is country’s largest source of employment after agriculture. the research on customer satisfaction on business domain of retail sector is quite important and critical for understanding of customer satisfaction and retention.

is going through a transition phase in India. Customers are moving towards the new trend of retail shopping in shopping malls. Even while the share of modern retailing to four-fold from 4% in 2006 to 16% in 2011 and further to 2016. The food retailing outlets in the recent years have shown tremendous impact in buying decision of the consumers. which translated to an annual growth rate to 12%. bringing a lot of changes in format of retailing. Retailing is one of the largest in the global economy. 12 . They let customers experience their freedom of choice. They not only offer variety but also executive transparent pricing. 2.reveals satisfaction level of the customers on ‘Reliance Fresh’ products. Most of the competitors are existing in the market in that ‘Reliance Fresh’ is trying occupying market share it shows a good market potential. comparison between Kirana shop and the retail outlets. Technical. In this regard measuring customer satisfaction in organized ‘Reliance Fresh’ outlets in Pune. traditional retail will still grow in absolute terms from $324 billion dollar in 2006 to $493 billion dollar in 2011. The need of catering the shopping experience has been fulfilled by the shopping malls. in its “retail outlook October 2007” reports that the total retail market will grow from $336 billion in 2006 to $590 billion dollar in 2011.Indian market is one of the five largest markets in the world. A study by McKinsey point out that the Indian market for consumer goods is expected to reach $400 billion by 2010. The changing attitude of consumers led them to step forward from unorganized Kirana stores to the organized retailing formats. The food retailing outlets in India are growing at a very fast rate in the every city.3 Literature review India has been rather slow in joining the organized retail revolution that was rapidly transforming the economics in the other Asian tigers. preferences and experiences will be of use to shape the retail out lets and their offerings. Future trend of retail sector in India.2 Statement of the problem Indian organized retailing is under transition today. 2.

2. environment and growth through diverse stages of human history. after agriculture. which provides According to Associated Chambers of Commerce and Industry of India (ASSOCHAM).4 Objectives of the study  To study the latest trends of retailing in India  To study customer satisfaction in organized retail outlets towards branded retailing  To compare branded retailing shops and Kirana stores on the basis of consumer perception and satisfaction  Level of satisfaction of ‘Reliance Fresh’ outlet users  Reasons for dissatisfaction 2. Research therefore. Human curiosity has leads to understand his environment in different angles. intellectual sharpening and evolving new theories to explain diverse phenomenon through which mankind survived with the progress of modern era.000 jobs in next few years. The urge of understand things may be rightly termed as research. The concept of research is thus closely linked with human endeavor for better understanding of his evolution.5 Research Methodology Research is the systematic process of collecting and analyzing information (data) in order to increase our understanding of the phenomenon about which we are concerned or interested. Research is a common parlance refers to a search for knowledge. the retail sector will create 50. It has served two fold purpose. has been an integral part of academic pursuits in the past. This process of studying this awareness of man manifested in a process known as research 13 . India's retail industry is the second largest sector.Liberalization of economy in the 1990’s and the entry of large players in the retail business have bought the retail industry in spot light. in other words we can also refer research as a scientific and systematic search of pertinent information of specific topic.

Satisfaction level of customers towards more retail outlets.2. where in the detailed analysis of preference of shopping. 14 . Primary Data The primary data for the study will be collected by means of structured questionnaire and will be distributed personally to the 100 respondents to get their responses. Data Sources In present study both primary as well as secondary data is used. latest trend towards branded retail outlets especially on ‘Reliance Fresh’ . The aim of descriptive research is to verify formulated hypotheses that refer to the present situation in order to elucidate it. The type of research method used is descriptive.7 Tools of Data Collection In present study both primary as well as secondary data will be used. preference on organized and unorganized outlets. Descriptive research is used because the research is primarily concerned with describing the nature and conditions and degree in detail of the present situation A descriptive research is conducted using 100 respondents. which will helps in identifying the customer satisfaction towards ‘Reliance Fresh’ retail outlets and towards the ‘KIRANA’ shops and the latest trends of retailing in India. situation or a group (or) describing the state of affairs as it exists at present. which would help the company to provide greater service and make necessary improvements in the service quality.6 Research Design Descriptive Research Descriptive Research is a fact finding investigation which is aimed at describing the characteristics of individual. Where in the detailed analysis of the quality of the service is analyzed with respect to various variables and compared with the competitors to arrive at a conclusion on the basis of finding and suggestions. 2. which helps in identifying the customer satisfaction towards ‘Reliance Fresh’ retail outlets and towards the ‘KIRANA’ shops and the latest trends of retailing in India.

Secondary data The secondary data will be collected from company websites. Sampling Unit: The sampling unit will be customers who will shop in the retail store or the similar store. internet browsing. Sample Size: Sample size will be taken as 100 respondents with respondents from inside and outside the similar retail outlet.9 Planning and Analysis The primary data will be collected by means of structured questionnaire from 100 respondents and the secondary data will be collected from websites. 2. company reports. especially for the purposes of making predictions based on statistical inference. Samples will be collected by survey method and the response of 100 respondents will be considered for analysis of data & interpretation. Design of Questionnaire The questionnaire will be designed to collect the data to keep in view the objective of the study. referrals.8 Sampling Plan Sampling is that part of statistical practice concerned with the selection of a subset of individual observations within a population of individuals intended to yield some knowledge about the population of concern. where the company has its retail outlets. 15 . It will be mostly closed ended and open ended short questions for the convenience of respondents. the respondents will be mainly from Pune city. lounge books. Journals. 2. Sampling Method: Convenience Sampling Convenience sampling procedure was adopted for selecting respondents.

2.magazines. as such it may lose its relevance in the future. and charts and interpreted for providing relevant recommendation. tables. The data collected from the study will be analyzed and will be represented by simple graph. 2.  To know where ‘Reliance Fresh’ is facing problems and where it is having new opportunities in retail sector. the results obtained out of this study cannot be generalized to other parts and rural area of the country. magazines. 2. referrals and lounge books. and charts and will be interpreted for providing relevant recommendation.11 Scope of the Project  The project aims to reveal the market status & competition for ‘Reliance Fresh’  It helps the company in strategy formulation and planning for further improvements. The data collected from the study is analyzed by simple graph.  The study aims to reveal the customer satisfaction towards organized retail outlets.  The response of the respondents may be biased.  To compare with organized retail outlets and unorganized retailers and to study the latest trends of retailing in India.12 Chapter Scheme Chapter 1: Introduction 16 .  Due to time constraints the sample size is restricted to 100 customers. tables.  The analysis will be based on the current data. Data presentation and analysis The primary data was collected by means of structured questionnaire from 100 respondents the secondary data was collected from websites.10 Limitation of the Study  This study is restricted to Pune city only and therefore. company reports. referrals and lounge books.

Objective. Source of Data. Scope and Limitation of Study. Tools of Analysis. Chapter 4: Data Analysis and Interpretation The data collected from the study will be presented and analyzed using appropriate statistical tools for interpretation and providing relevant suggestions. Chapter 2: Research Methodology It consists of detailed coverage of the manner in which the report is prepared. Literature review. It also includes Need for study.It provides an insight and Introduction about the broad area of the topic chosen and also the theoretical background of the study. Chapter 5: Summary of Findings The summary of findings is based on analysis and interpretation of primary and secondary data collected for this study with respect to the objectives. development and its future. Chapter 6: Suggestions & Conclusion The suggestions are based on findings of the study and conclusion is made. 17 . growth. Chapter 3: Industry Profile The chapter is concerned with the introduction and the background of Retail Industry with reference to Reliance Fresh as a whole which gives detailed information about the origin. Research methodology helps to understand the practical steps adopted to reach the data and methods of analysis and interpreting the response. Statement of Problem. Research Design.

1 INDUSTRY PROFILE 18 .Chapter 03 Industry and Company Profile 3.

The success of the retail stores. A retailer is at the end of the distributive channel. There are store retailers. He provides goods and service to the ultimate consumers. The term "retailer" is also 19 . either directly or through a wholesaler. and retail organizations.1 Retailing Retailing is the set of business activities that adds value to the products and services sold to the consumer for their personal or family use. cooking classes. The need for organization becomes essential as soon as he hires people o enters into partnership or takes the help of members of his family in running his store. A retailing mix is the package of goods and services that store offers to the customers for sale. Retail establishments are often called shops or stores. His objective is to make maximum profit out of his enterprise. The maximum satisfaction to the customers is achieved by a proper blend of all three. A "retailer" buys goods or products in large quantities from manufacturers or importers. 3. A retailer deals in an assortment of goods to cater to the needs of consumers.1. its image and status and finally its survival. therefore. These stores feature art galleries. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. and children’s playgrounds. depends on customers’ reaction to the retailing mix which influences the profits of the store. This policy is called retailing mix. In an individual retail store there is not much scope for organization except in the sense that the shopkeeper has to organize apportions his time and resources. The best-known type of retailer is the department store. non store retailers. Consumers today can shop for goods and services in a wide variety of stores. Japanese department stores such as Takashimaya and Mitsukoshi attract millions of shoppers each year. With that end in view he has to pursue a policy to achieve his objective. with the help of a few personnel.A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. This he does through his small organization. It is the combination of all efforts planned by the retailer and embodies the adjustment of the retail store to the market environment. its share of the market. Retailers are at the end of the supply chain. Retail organizations exhibit great variety and new forms keep emerging. Retailing mix a communication mix and a distribution mix. and then sells smaller quantities to the end-user. its volume of turnover.

like electric power. training and motivating sales associates. 20 .2. stores are now becoming more than just places to buy products. in the right  Place. The use of new technologies helps retailers reduce their operations costs. promote and present merchandise. at the right time.  In this dynamic environment. at the right price. determining what merchandise and services to offer. 3.  Retailing provides considerable value to consumers while giving people opportunities for  Rewarding and challenging careers.  Retail formats and companies are now major factors in the industry.  Retailers must understand what customers want and what competitors are offering now and in the future. and making a profit.  Retailing is an important institution in our society.  Retail managers today must make complex decisions on selecting target markets and Retail locations.  The key to successful retailing is offering the right product.1. such as a public utility. The World of Organized Retailing  Retailers are using sophisticated communications and information systems to manage their business.  To compete against non-store retailers. while better serving their customers. and deciding how to price. negotiating with Supplier and distributing merchandise to stores.applied where a service provider services the needs of a large number of individuals. entrepreneurs are launching new companies and concepts and becoming industry leaders. They are offering entertaining and educational experiences for their customers. while traditional firms have had to rethink their business.

Its include the type of merchandise and services offered.  While many elements may make up a firm’s retail mix. the essential elements may include:  Store location.  Retail managers must determine the optimum mix of retailing activities and coordinate the elements of the mix. advertising.  price.4. merchandise pricing. assistance to customer provided by salespeople.  Communication with customer  Personal selling  Store image  Store design  Sales incentives  People  Process  Physical evidence 3. Composition of retail mix  Place  Product 21 .  Merchandise assortments  Store ambience.  customer service.  Retail mix is the term used to describe the various elements and methods required to formulate and execute retail marketing strategy. promotional programs store design merchandise display.3.1. Retail mix. and convenience of the store’s location.3.1. The retail mix is the combination of factors retail used to satisfied customer needs and influences their purchase decision.

 Price  Promotion  People  Process  Physical Environment Key element 1) Place (store location) 2) Product (merchandise)  Target market Product development  Channel structure Product management  Channel management Product features and benefits  Retailer image Branding  Retail logistics Packaging  Retail distribution 3) Price 4) Promotion  Costs developing promotional mixes  Profitability Advertising management  Value for money Sales promotion  Competitiveness Sales management  Incentives Public relations  Quality Direct marketing  Status  After-sales services 5) People element 6) Process element  Staff capability Order processing 22 .

hefty pay packets. 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. nuclear families in urban areas. increase in disposable income and customer aspiration. It is expected that retail in India could be worth US$ 175-200 billion by 2016. and low share of organized retailing. A number of factors are driving India's retail market.2. India's huge middle class base and its untapped retail industries are key attractions for global retail giants planning to enter newer markets. entertainment and food all under one roof. the growth path for organized retail in India is not hurdle free. Following Pantaloon's successful venture a host of Indian business giants such as Reliance.malls and huge complexes that offer shopping. Bharti. It accounts for over 10 per cent of the India's GDP and around 8 per cent of the employment. The taxation system still favors small retail business. the Industry was dominated by the un-organized sector. With the 23 . Birla and others are now entering into retail sector. Driven by changing lifestyles. Efficiency Database management  Availability Service delivery  Effectiveness queuing system  Customer interaction Standardization 3. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). multiplex. Lack of trained manpower. But there is a flip side to the boom in the retail sector. Until then. Retail sector is one of India's fastest growing sectors with a 5 percent compounded annual growth rate. strong income growth and favorable demographic Patterns. These include: increase in the young working population. Indian retail are expected to grow 25 per cent annually. It was a seller’s market. tax Laws and government regulations all discouraged the growth of organized retailing in India During that period. RETAIL INDUSTRY IN INDIA Retail is India's largest industry. Also. India's retail boom is manifested in sprawling shopping centers. The organized retail industry in India had not evolved till the early 1990s. increase in expenditure for luxury items. 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. with a limited Number of brands and little choice available to customers. increasing workingwomen population.

A perfect business model for retail is still in evolutionary stage. however with the change of tastes and preferences of the consumers. the industry is expected to grow at a pace of 25-30% annually.intrinsic complexities of retailing such as rapid price changes. The India retail industry is expected to grow from Rs. unpredictable availability. 35. the industry is getting more popular these days and getting organized as well.000 crore 24 . The Indian retail industry is the fifth largest in the world. With growing market demand. especially over the last few years. constant threat of product obsolescence and low margins there is always a threat that the venture may turn out to be a loss making one. sorted and cleaned food and fresh stock at all Times. Though initially. unsorted food provisions and daily fluctuating prices as against consumer expectations of round-the-year steady prices. the retail industry in India was mostly unorganized. Procurement is very vital cog in the retail wheel. The retailer has to fight issues like fragmented sourcing. Comprising of organized and unorganized sectors. 109. India retail industry is one of the fastest growing industries in India.000 crore in 2004-05 to Rs.

2. These include the corporate-backed hypermarkets and retail chains.  Growth in organized retailing on par with expectations and projections of the last 5 Years on  Course to touch Rs.Fig 3. The India retail industry contributes 10% of the countries GDP 25 . hand cart and pavement vendors. 000 cores  5X growth in organized retailing between 2005-2012  Over 4. the local kirana shops. for example. 35. ft. and also the privately owned large retail businesses. of retail space  Over 400.000 cores  Organized market: Rs.000.2. those who are registered for sales tax.000 shoppers walk through their doors every week  47 global fortune companies & 25 of Asia's top 200 companies are retailers  Biggest player in India is Pantaloon Retail India Limited. on the other hand. refers to the traditional formats of low-cost retailing.000 sq. etc.  Unorganized market: Rs. paan/beedi shops. 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.2.000 corers (US$ 7 Billion) or more by 2005-06The growth factors of 3. of mall space under development  The top 3 modern retailers control over 750.5.000 new modern Outlets in the last 3 years  Over 5.000 sq. Organized retailing refers to trading activities undertaken by licensed retailers. owner manned general stores. Unorganized retailing. that is. income tax. ft.1 3.1. etc. convenience stores. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m²) in size. 583. Present Indian Retail Industry Scenario The retail industry is divided into organized and unorganized sectors.

changing lifestyle. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608. various brands which are gaining value thereby enhancing industry growth. 300 new malls. The Future Indian Retail Scenario The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013.3 trillion by the year 2018 at a CAGR of 10%. the India retail industry is expected to grow further in the future days. and demographic patterns which are favorable. The growth of scope in the Indian retail market is mainly due to the change in the consumer’s behavior. the consumer spending in India climbed up to 75%.and its current growth rate is 8. the organized The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores. the consumer spending has also gone up and is also expected to go up further in the future. hypermarkets. The sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. supermarkets and specialty stores. As a result.9 billion in 2009 from US$ 394 billion in 2005. The scope of the Indian retail market has been seen by many retail giants and that’s the reason that many new players are entering the India retail industry. availability of various funding options.3. and 1500 supermarkets. The organized retailing sector in India is only 3% and is expected to rise to 25. Western-style malls have begun appearing in metros and second-rung cities alike introducing the Indian consumer to a shopping experience like never before. regulations like VAT 26 .5%. By the year 2013. 3. This proves that there is a tremendous scope for growth in the Indian retail market. media proliferation. For the new generation have preference towards luxury commodities which have been due to the strong increase in income. There are under construction at present around 325 departmental stores. In the last four year. As the country has got a high growth rates. Organized retail is on all time high in India.2.30% by the year 2010. It is further expected to reach US$ 1. The growth is boosted by various factors such as availability of professional practices.

Apparel Retail in India. hypermarkets. investors who are interested in this sunrise sector. Indian Retail Industry. This report is structured into three major parts. Issues & Challenges faced by the sector. Last but not the least this report can also be useful for educational institutions imparting courses in retail sector is also expected to grow at a CAGR of 40%. sea change in demographics of country and international exposure. supermarkets and specialty stores. Organized Retail Formats in Indian retail. The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores. Technology implications.implementation to make processes simple. The Indian population is witnessing a significant change in its demographics. First part comprises of Executive Summary and highlights of the retail sector. management consultants. Second part consists of 12 chapters which includes an introduction and discusses vital topics in retail industry like A Brief Overview of Global Retail Industry. retail professionals for getting larger picture of the sector. Food Retail 27 . Indian Retail Industry. regulations like VAT implementation to make processes simple. First part comprises of Executive Summary and highlights of the retail sector. The third and final part consists of supporting literature in the form of Annexure. availability of various funding options. Food Retail in India. Organized Retail Formats in Indian retail. Organized retail is on all time high in India. Second part consists of 12 chapters which includes an introduction and discusses vital topics in retail industry like A Brief Overview of Global Retail Industry. various brands which are gaining value thereby enhancing industry growth. media proliferation. The sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher practices. Growth Drivers of Indian Retail. Regulations and Policies and Future Outlook of the industry. banks evaluating retail sector growth trajectory. sea change in demographics of country and international exposure. This report is structured into three major parts. Critical Success Factors. This report will be useful to entrepreneurs interested in getting insights of retail industry for doing direct and indirect business in the sector. The growth is boosted by various factors such as availability of professional proposals. Western-style malls have begun appearing in metros and second-rung cities alike introducing the Indian consumer to a shopping experience like never before.

4 billion. Apparel Retail in India. The opportunities in India organized retail sector can be judged from the fact that by 2010 it is expected to rise to US$ 23 billion.in India. 300 new malls. The opportunities in Indian organized retail The opportunities in Indian organized retail sector are many for this sector is witnessing a boom. investors who are interested in this sunrise sector. 28 . This report will be useful to entrepreneurs interested in getting insights of retail industry for doing direct and indirect business in the sector. western influences. This has opened up a lot of opportunities in India organized retail sector.2. The various opportunities in the organized retail sector in India are mainly there for the Indian consumers behavior pattern has changed. a large number of women are working. retail professionals for getting larger picture of the sector. Growth Drivers of Indian Retail. eat and get entertainment in one place and is having also given Indian organized retail sector an opportunity to grow.packages. and 1500 supermarkets are being built which shows the tremendous opportunities in the organized retail sector in India. Issues & Challenges faced by the sector. The retail industry in India amounted to US$ 200 billion in 2006. Technology implications. Many Indian companies seeing the various opportunities in organized retail sector in India have entered it. management consultants. Now the Indian consumer gets more hefty pay. and more disposable income have opened a lot of opportunities in Indian organized retail sector.4. banks evaluating retail sector proposals. The Indian government in 2005 allowed foreign direct investment (FDI) in single brand retail to 51%. Regulations and Policies and Future Outlook of the industry. The third and final part consists of supporting literature in the form of Annexure. The Indian consumer wants to shop. In fact 325 departmental stores. is younger. Critical Success Factors. 3. Last but not the least this report can also be useful for educational institutions imparting courses in retail management. and out of this amount the Indian organized retail sector amounted to US$ 6.

2. Wal. the share of organized sector in 2007 was 7. most of the retail companies are sections of other industries that have stepped in the retail 29 .Mart . 3. the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. the India retail industry is expected to grow to US$ 700 billion by 2010. Bharti Telecoms is planning a joint venture with Telco a global retail giant worth £ 750 million. According to a report by Northbride Capita. The global retail giants who are entering the Indian organized retail sector are:  Tesco. Growth of Indian Retail According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney.5. Carrefour SA The opportunities in Indian organized retail sector are varied and it must be fully exploited by the Indian retailers. In 2007. Growth of Retail Companies in India: Overview Growth of Retail Companies in India is still not yet in a matured stage with great potentials within this sector still to be explored. It can be mentioned here that. Reliance Industries Limited is targeting for annual sales of US$ 25 billion by 2011.5% of the total retail market. By the same time. The opportunities in the organized retail sector in India have also increased with the desire of many global retail giants to set up shop here.500 supermarkets and 1000 hypermarkets. Apart from the retail company like Nilgiri's of Pune. Metro AG .Pantaloons have decided to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Growth of Retail Companies in India Growth of Retail Companies in India exhibits the boom in the retail industry in India over the years. India retail industry is the most promising emerging market for investment. It is planning to invest US$ 6 billion in order to open 1. the organized sector will be 20% of the total market share. The increase in the purchasing power of the Indian middle classes and the influx of the foreign investments has been encouraging in the Growth of Retail Companies in India.

Cochin.6. Eventually. both in India and abroad.2. The Emerging Trends in the 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. it is taking the lions share in food trade. however the smaller towns are also not lagging behind in this.sector for a better business. and others.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. The infrastructure of the retail sector will evolve radically in the recent future. The Growth of Retail Companies in India is most pronounced in the metro cities of India. India has a chance of tremendous economic growth. Simla. Pune. 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. Baroda. As the count of super markets is going up much faster than rate of growth in retail sector. The emerging trends in the Indian organized retail sector are also adding up to the development of the Indian organized retail sector. 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 has brought a revolutionary change in the shopping attitude of the Indian customers. The retail companies are not only targeting the four metros in India but also is considering the second graded upcoming cities like Ahmedabad. 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. 3. Coimbatore. Chandigarh. out of the shadows of the unorganized retail sector. Trivandrum. Gurgaon. Ludhiana. The growth of the Indian organized retail sector is anticipated to 30 . The Growth of Retail Companies in India is facilitated by certain factors like . The emergence of shopping malls is 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.

He now wants to eat. The Indian government has allowed 51% foreign direct investment (FDI) in the India retail sector to one brand shops only. With the arrival of the Transnational Companies (TNC). and get entertained under the same roof. With real estate prices escalating due to increase in demand from the Indian organized retail sector. Wal-Mart. This is a challenge being faced by the Indian organized retail sector. western influences. The demands of the buyers would also be enhanced by more access to credit facilities. The Indian retailers have difficulty in finding trained person and also have to pay more in order to retain them. But the global retail giants like Tesco. women working force is increasing. This has happened for the Indian consumer is earning more now. With Indian retailers having to shell out more for retail space it is affecting their overall profitability in retail. The biggest challenge facing the Indian organized retail sector is the lack of retail space. 3. and Metro AG are entering the organized retail sector in India 31 .2.7. desire for luxury items and better quality. it is posing a challenge to its growth. growth in income levels. 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. shop.be heavier than the growth of the gross domestic product. Challenges 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. All these have lead the Indian organized retail sector to give more in order to satisfy the Indian customer. Alterations in people's lifestyle. This again brings down the Indian Retailers profit levels. The behavior pattern of the Indian consumer has undergone a major change. 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. This has made the entry of global retail giants to organized retail sector in India difficult. Trained manpower shortage is a challenge facing the organized retail sector in India. This would be challenging to the retail sector in India. and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector.

Unorganized retailing. capital and labor. Pantaloons. owner manned general stores. hardware shop at the corner of your street selling everything from bathroom fittings to paints and small construction tools. supermarkets.indirectly through franchisee agreement and cash and Carry wholesale trading. It is generally family run business. refers to the traditional formats of low-cost retailing. where all the buyers & sellers gather in a big market for bartering. as it requires limited investment in land. hand cart and pavement vendors.3 Indian unorganized retail sector & its challenge India is the only one country having the highest shop density in the world. income tax. with 11 outlets per 1000 people (12 million retail shops for about 209 million households). India started its Retail Journey since ancient time. etc. between ancient retail concept & the modern one there exist modern kirana/ mom and pop shops or Baniya ki Dukan. hypermarkets.e. the local kirana shops. Characteristics of unorganized retail Small-store (kirana) retailing has been one of the easiest ways to generate self-employment. that is. paan/beedi shops. In Ancient India there was a concept of weekly HAAT. Still it is predominating in India so the Indian retail industry is divided into two sectors. or the slightly more organized medical store and a host of other small retail businesses in apparel. departmental stores and shopping malls. low capital input and due to a good number of self organized retail). on the other hand. 3. convenience stores. It takes a pretty long times to & step to shape the modern retail. In between these two concepts (i. and Bharti Telecoms. But they are facing stiff competition from these global retail giants. As a result discounting is Indian becoming an accepted practice.3. Rather we can see the democratic scenario in Indian Retail (because of low level of centralization.organized and unorganized. those who are registered for sales tax. electronics. These include the corporate retail formats of the exclusive brand outlets. food etc. lack of standardization and the retailers who are running this store they are lacking 32 . Organized retail sector refers to the sectors undertaken by licensed retailers. 3. Many Indian companies are also entering the Indian organized retail sector like Reliance Industries Limited.1. for example. & mobile vendors.

 A large number of working class in India is working as daily wage basis. rice etc for their supper. Many times customers prefer to shop from the nearby kirana shop rather than to drive a long distance organized retail stores.  These kirana shops are having their own efficient management system and with this they are efficiently fulfilling the needs of the customer. so this kirana stores are the only place for them to fulfill their needs.  Another reason might be the proximity of the store. experience and exposure.of education.S. while organized trade accounts only for 2%. It is the convenience store for the customer. 3.2 The reasons for resistance to organized retail:  In smaller towns and urban areas. Unorganized retail sector is still predominating over organized sector in India. retail industry. This is one of the reasons why productivity of this sector is approximately 4% that of the U. they come to this small retail shop to purchase wheat flour.  Similarly there is another consumer class who are the seasonal worker. 33 .3. During their unemployment period they use to purchase from this kirana store in credit and when they get their salary they clear their dues. For them this the only place to have those food items because purchase quantity is so small that no big retail store would entertain this. This is one of the good reasons why the customer doesn’t want to change their old loyal kirana shop. Now this type of credit facility is not available in corporate retail store. there are many families who are traditionally using these kirana shops/ 'mom and pop' stores offering a wide range of merchandise mix. In every corner the street an unorganized retail shop can be found that is hardly a walking distance from the customer’s house. unorganized retail sector constituting 98% (twelve million) of total trade. Generally these kirana shops are the family business of these small retailers which they are running for more than one generation. at the end of the day when they get their wage.

 Specialty stores: are retail chains dealing in specific categories and provide deep assortment. such as electronics and sporting goods.  Shopping malls: the biggest form of retail in India. Here beverages. snacks and other small items can be bought via vending machine.  Discount stores: these are factory outlets that give discount on the MRP.  E-trailers: are retailers providing online buying and selling of products and services. malls offers customers a mix of all types of products and services including entertainment and food under a single roof. Evolution and Trends in Organized Retailing Formats and Retail Outlets in India 34 .1.4.  Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered. This is also known as Multi Brand Outlets or MBO's.  Mom-and-pop stores: they are family owned business catering to small sections. They are known as category killers as they focus on specific categories.  Vending: it is a relatively new entry. they are individually handled retail outlets and have a personal touch. 3.  Category killers: small specialty stores that offer a variety of categories.4 Retail formats in India  Hypermarkets/supermarkets: large self-servicing outlets offering products from a variety of categories.3. Mumbai's Crossword Book Store and RPG's Music World is a couple of examples. in the retail sector.  Departmental stores: are general retail merchandisers offering quality products and services.

Space occupied: 5000 Sq. Merchandise: food grocery to clothing to spots goods to books to stationery. household accessories. ft. Trinethra/more. 35 . to 3000 Sq. ft. Example: Landmark Group’s Lifestyle. RPG’s Spencer’s (Giant). ft. ft. Specialty store: It consists of a narrow product line with deep assortment. Space occupied: 50000 Square feet. Supermarket: A subdued version of a hypermarket. Reliance Retail’s fresh. or more. Merchandise: Groceries are predominantly sold. Example: Viswapriya Group’s Subiksha. Convenience store: A subdued version of a supermarket. Merchandise: Almost similar to that of a hypermarket but in relatively smaller proposition. Discount store: Standard merchandise sold at lower prices with lower margins and higher volumes. Piramal’s TruMart. Merchandise: Apparel. Merchandise: A variety of perishable/ non perishable goods. gifts etc. Example: Nilgiris. – 30000 Sq. Vishal mega mart. Example: stores located at the corners of the streets. More Retail Department store: A retail establishment which specializes in selling a wide range of A product without single prominent merchandise line and is usually a part of a retail chain. And above. Trent India Ltd.’s Westside. Example: Pantaloon retail’s Big Bazaar. Space occupied: Around 10000 Sq. SKUs: (Stock keeping Unit) 20000-30000. SKUs: (Stock keeping units) Around 10000. ft. cosmetics.Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the modern Indian shopper. Space occupied: Around 500 Sq. Apna Bazaar.

Space occupied: Ranges from 60. Merchandise: They lend an ideal shopping experience with an amalgamation of product. Example: Pantaloon Retail’s Central. 00.) In India. in Proximity to urban outskirts. Merchandise: Offers several brads across a single product category.Merchandise: Depends on the stores Example: Bata store deals only with footwear. Kirana stores: The smallest retail formats which are the highest in number (15 million approx. RPG’s Music World. Service and entertainment. also known as Category Killers.000 sq ft. all under a common roof. Space occupied: 50 sq ft and even smaller ones exist. These usually do well in busy market places and Metros. MBO’s: (Multi Brand outlets). 36 . Mumbai’s Inorbit. Malls: The largest form of organized retailing today located mainly in metro cities.000 sq ft to 7. Merchandise: Mostly food and groceries. Crossword.

586 crore (US $ 18.2 billion).354 crore (US$ 27. RIL is amongst the 25 fastest climbers ranked by Fortune.4 billion). and total assets of Rs. 7.5. I keep revising my vision. you can do it.943 crore (US$ 2.07 billion).1 Overview Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs1.087 crore (US $ 2. RIL is the first and only private sector from India to feature in 2005 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits.23 billion).8 billion).72 billion) as of March 31. 73. 80. 967 crore (US$ 14. Reliance in now putting up a completely export oriented unit with 30 MMPTA capacity under Special Economic Zone (SEZ) at Jamnagar. 2007.18. cash profit of Rs17. net profit of Rs11. Construction will commence very shortly and the project is schedule to go into operation by March 2008. net worth of Rs.572 crore (US $ 1." Dhirubhai H.7 billion). 12.7 billion). RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs. 37 . Only when you can dream it.678 crore (US$ 4.403 crore (US $ 9. cash profit of Rs.3.5 COMPANY PROFILE "Growth has no limit at Reliance.RILis the first and only private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits.75 billion) and net worth of Rs63. net profit of Rs. 40.164 crore (US $ 16. Ambani 3.

fresh juice bars and dairy products. starting with Bangalore. Reliance Industries has invested nearly Rs. Reliance plans to invest in excess of Rs 25000 crores in the next 4 years in their retail division. as a corporate citizen. they will be absorbed by our contractors and be deployed on our world scale project at Jamnagar for a period of approx. groceries. Thereafter. Current estimate warrants training of (assuming 50% will be Certified): Welders . Reliance Fresh directly buys stock from the farmers to cut down on the wastage. groceries. of 2 years.skilled / semi skilled / partially skilled / unskilled from all over the country and provided temporary barracks .000 crores to expand the Reliance Fresh stores. 27. The stores work on The Ranger Format which means selling of fresh vegetables to the road sellers.8000. Reliance Fresh is the convenience store format which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani.2000 Immediately on certification. offer a great earning future prospect to these youngsters around the globe. Reliance Fresh falls under Reliance Industries. The company already has in excess of 560 reliance fresh outlets across the country. which are badly required.5500. Grinders . Reliance is confident that these skills. staples. These stores sell fresh fruits and vegetables. 3. has always believed in creating "employability" apart from providing employment. it is process of establishing a World Class Craft Training Institute This world class facility will have latest generation equipments and machineries imported from best of class manufacturers and will be located at Jamnagar.labour accommodation with full facilities through contractors. Reliance Retail has signed a pact with Apple for the establishment of a chain of Apple Specialty Stores branded as iStore.000 crores. Mill Wright Fitters .5000. The institute will train them in respective trades with proper process for "Certification". Towards this. 38 . The Scheme We will bring in thousands of youngsters . Pipe Fitters . will have an unlimited market and therefore. It is the first retail venture of the Group. RIL group. FMCG products and dairy products and non-vegetarian items. Carpenters . staples.RIL group is about to establish yet another industrial landmark by putting up the world's largest grass root refinery totally dedicated for exports with an outlay of over Rs.5000. fresh juice bars. The company offers fresh fruits and vegetables.

it was mentioned recently in news dailies that.405.943 Sales: INR 10. West Bengal and Orissa. 3. with food accounting for the bulk of the business. Reliance Retail is moving out of stocking fruits and vegetables. RIL is ranked at 342 in the 2006 Fortune Global 500 list among the world’s largest corporations. and partly due to its inability to create a robust supply chain. retail being their latest. 2006) Total Shares Outstanding: 22. Reliance Industries Limited Chairman and Managing Director: Mukesh Ambani Market Capitalization: INR 39. The company may not stock fruit and vegetables in some states. FMCG. 39 .609.A typical Reliance Fresh store is approximately 3000-4000 square feet and caters to a catchment area of 2–3 km.365. 2006) Closely Held Shares: 11.5. home. 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.5.512.3 Company History Post launch. it has decided not to compete with local vendors partly due to political reasons.900 (Sept.000 According to the company website "1 out of every 4 investors in India is a Reliance shareholder. in a dramatic shift in its positioning and mainly due to the circumstances prevailing in UP. This is quite different from what the firm had originally planned. consumer durables.2 The Reliance Empire Reliance being the all encompassing company has entered into all the sectors. 3.020 (Sept.150. IT and wellness. Though Reliance Fresh is not exiting the fruit and vegetable business altogether.963.

it has 200. According to him. starting with Bangalore. Reliance Mart. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way. 'We plan to have a pan-India presence and achieve a target of Rs. supermarkets and convenience stores. said at a press conference here. With a vision to generate inclusive growth and prosperity for farmers. but also spoke at length about its “farm-to-fork’’ theory.' Currently. Reliance Fresh also offers a membership and loyalty program – Reliance One . small shopkeepers and consumers. Mukesh Ambani's Reliance Industries Ltd. Reliance Wellness.000 sq ft. president and chief executive of Reliance Retail. Reliance Fresh. Monday opened nine new stores in the national capital region (NCR) with an investment of about Rs. We are following an all-inclusive model giving the right affordability across all income groups.000 sq ft. the $20 billion Reliance Industries' brand for its grocery outlets. Reliance Fresh.The stores have been opened in Ghaziabad. Faridabad. entered the retail trade last year with an investment of $5. 40 .000 people. Reliance Digital. In addition.000 loyalty customers across Hyderabad. Greater Noida and Gurgaon covering a total area of 19.6 billion and has plans to expand its footprint in the NCR in multiple formats of hypermarkets. Reliance Fresh has 49 stores across the country covering an area of 109.10 billion revenue by 2010 by which time we hope to complete Phase I. Reliance Footprint. Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty Stores branded as I Store. Jaipur and Chennai. Reliance Timeout and Reliance Super are various formats that Reliance has rolled out. Currently.' Pillai added.8 billion ($180 million). 'In the first phase we have plans to employ 500. Noida.' Raghu Pillai. not only did the company said the store’s main focus would be fresh produce like fruits and vegetables at a much lower price. Reliance Jewels. Reliance Trendz.to deliver customized benefits to frequent shoppers. Reliance will open 100 stores in the NCR by the quarter ending in June 2007.When the first Reliance Fresh store opened in Hyderabad last October.'We are aggressively partnering farmers by following a farm-to-fork strategy in our supply chain management model and ensure that we deliver fresh fruits and vegetables at affordable prices to our consumers. vendor partners.

RRL’s footprint now spans a network of more than 1. a consumer durables & information technology concept. was set up to lead Reliance Group’s foray into organized retail.000 stores. a mini-mart concept. music & entertainment concept. an exclusive Apple products concept. RRL also entered into an exclusive distribution arrangement with Asics Corporation Japan to market Asics brands of shoes. an all under one roof supermarket concept & ‘Reliance Super’. a footwear concept. a health. ‘Reliance AutoZone’. ‘Reliance Time Out’. RRL forged ahead with its expansion plans and rolled out stores across the country. a jewelers concept. Based on its core growth strategy of backward integration. a books.Reliance Retail Limited (RRL). RRL has 41 . RRL has made rapid progress towards building an entire value chain starting from the farmers to the end consumers. a home ware. Reliance Retail Limited (RRL) continued to fulfill its commitment of enriching Indian consumer’s shopping experience and providing quality merchandise at an attractive value proposition. The ‘specialty’ formats are: ‘Reliance Digital’. modular kitchens. In the last year. ‘Reliance Trends’. furniture. Since its inception in 2006. ‘Reliance Jewels’. RRL operates several ‘value’ & ‘specialty’ formats. an apparel & accessories concept. More than 3 years into operation. ‘I Store by Reliance Digital’. an automotive products & services concept and ‘Reliance Living’. furnishings concept. RRL rapidly expanded the stores network it operates through strategic partnerships with world-class companies such as Marks & Spencer and Pearl Europe. and accessories in India. The ‘value’ formats that RRL operates are: ‘Reliance Fresh’. Reliance Retail Limited (RRL) has grown into an organization that caters to millions of customers. ‘Reliance Mart’. RRL has recently opened its flagship store under its franchise agreement with Hamleys and plans to expand the store network in the coming year. a subsidiary of RIL. ‘Reliance Footprint’. a neighborhood concept. wellness & beauty concept. RRL has now expanded its presence in more than 85 cities across 14 states in India. The ‘value’ formats offer a wide range and assortment of products required for daily household needs. thousands of farmers and vendors. ‘Reliance Wellness’.

— PTI But some vegetable vendors don't want a job at Reliance. RRL’s loyalty membership program.Chairman & Managing Director 42 . 3.4 Controversy Recently their stores in Jharkand faced the ire of mobs comprising of local vegetable vendors. if offered one. In November 2007. They vandalizedF and attacked the stores claiming that they were stealing their livelihoods. 3.5. ‘Suicide’ squad against Reliance Fresh outlets Bhubaneswar/Cuttack: Traders and roadside vendors opposing the opening of Reliance Fresh outlets in Orissa on Saturday formed a “suicide” squad. RRL enjoys the patronage of over 5. RRL will continue to provide unprecedented value to customers across all its formats and stores. Reports said the vendors formed the squad soon after a meeting. Uttar Pradesh Chief Minister Mayawati ordered to close 10 new stores keeping view of Law & order situation.5 million customers.5 Key Executives Management Team Mukesh D.5. because they want to be their own boss. Through ‘Reliance One’. In August 2007. Reliance Fresh stores are attacked by Bharatiya Janshakti Party supporters headed by Uma Bharti. In the coming year. Ambani .” All-Orissa Roadside Vendors and Small Shop Owners Association president Pratap Sahu said. RRL will continue on its mission to delight the customers every visit.also expanded its presence in business-to business office supplies through its joint venture with Office Depot. “As many as 100 youth today joined the squad as they prefer to die while fighting rather than facing starvation.

It is following an all-inclusive model giving the right affordability across all income groups. Jaipur and Chennai. Modi S.S. V. Bhakta Yogendra P. it has 200. Venkitaramanan Prof.000 loyalty customers across Hyderabad.Nikhil R. the 100% subsidiary of Reliance Industries. Meswani . Besides. the first of its multi-format retail foray involving an investment of Rs 25. D. Reliance Fresh has over 100 stores across the country. Reliance Fresh is the company’s brand for neighborhood fresh-food outlets. Kapur M. supermarkets. on October 28 unveiled Reliance Fresh. 43 . Currently. Raghunath Anant Mashelkar 3.000 people. it has planned hypermarkets.Executive Director Ramniklal H. Company is aggressively partnering farmers by following a farm-to-fork strategy in its supply chain management model and ensures that it delivers fresh fruits and vegetables at affordable prices to consumers. Currently. Dipak C Jain Dr. Trivedi Dr. Ambani Mansingh L.Executive Director H. Reliance Fresh also offers a membership and loyalty programmed -Reliance One .Executive Director Hital R. Reliance Retail.6 Future Planning: Company plans to have a pan-India presence by opening stores in 784cities and 600 small towns and achieve a target of Rs.to deliver customized benefits to frequent shoppers. It will also sell kitchen equipment and other edibles. Ashok Misra Prof. Meswani .10 billion revenue by 2010 by which time it hopes to complete Phase 1.000 crore. In the first phase company plans to employ 500.Kohli .5. P.

000 crore venture and it plans to add more stores across different geographies. department stores. and eventually have a pan-India footprint by year 2011. groceries.5. Reliance has drawn up plans for a presence in 784 towns and6. that is about Rs 13. The Reliance Fresh supermarket chain is RIL’s Rs 25. Industry estimates say that the country’s retail industry is worth $300 billion. It has already rolled out 177 Reliance Fresh stores across major towns in 11states.000 mandi (wholesale market) towns with 1. staples. to be unveiled shortly. RIL is targeting a turnover of Rs 40. 50.000 crore to buildits farmto-fork linkage.000 crore. fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products.600 rural business hubs to service these. 3. The super marts will sell fresh fruits and vegetables. convenience stores and specialty stores. 44 .discount stores. Currently.7 Farm to Fork Model of Reliance Retail The Reliance retail company sources say it is setting aside Rs 50. This stands a chance to blossom to $427 billion in the next four years. According to a company report. selling through company-owned stores currently totals just$8 billion in India.000 crore in the next few years.

8 Corporate Social Responsibility Today when most of the companies are busy in making profits by any means. And. we consider this as a part of our corporate social responsibility. we are planning to train students from corporation schools and schools run by NGOs.TRADITIONAL MODEL OF RETAIL RELIANCE FARM TO FORK 3. "Hence. there are few Ones who are focused to return this society. Reliance retail is one of them. Asked whether the company will take students on an employment basis and pay them a stipend during the course period.5. Following efforts of reliance retail are aimed at benefiting the society making reliance socially responsible: 1) Reliance Retail aims at recruiting people from the under privileged community in society. a part of what they have earned through this society. "he said. he said that actually. it is planning to charge a "small fee" from 45 .

Farmers are provided technical help as well like information about quality of seeds and fertilizers.those who want to join the course "as we want to bring in some discipline and regularity among the students". This initiative results in higher income and upgrading of skills for the farmers. reducing transaction costs and training the farmers in better and sustainable farming practices. 46 . Reliance is providing a guaranteed market for the farmers’ produce. Reliance has built a business model generating shared value that links the company supply chain more closely to poor farmers in Indian villages. and reduced spoilage of produce (up to35 percent) and better quality products f or Reliance retail stores. Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers from villages through Collection Centers. and will reimburse that once they are inducted into service 2) Farming in India is highly fragmented and subject to harsh climatic conditions: once harvested. it is very difficult to keep fruits and vegetables fresh. In return Reliance is giving farmers information about how can farmers improves their productivity. With this concept. To secure high quality. They have centers in villages who apart from providing information make farmers aware of market rates of different crops so that farmers can choose crops they want to sow to become profitable. 3) Reliance retail has adopted “farm to fork” theory which means it is procuring directly from the farmers thus offering them quite reasonable prices for their produce as now no intermediaries are involved.

By doing in-depth data comparisons. 47 . you can begin to identify relationships between various data that will help you understand more about your respondents. Here data collected on the basis of questionnaire survey on customer satisfaction on organized retail outlets is on Reliance in Pune. data analysis involves working to uncover patterns and trends in data sets. and guide you towards better decisions. It is the time that you may reveal important facts about your customers. data interpretation involves explaining those patterns and trends. Analyzing survey data is an important and exciting step in the survey process. uncover trends that you might not otherwise have known existed. or provide irrefutable facts to support your plans.Chapter 04 Data Analysis and Interpretation Data Analysis Data collection is the systematic recording of information.

since the concept of satisfaction is defined as a gap between expectations and performance or disconfirmations of expectations. In contrast “Universal dimensions determining” the quality of services as received by customers is tangibility. assurance and empathy Cronin and Taylor (1992) the conceptualization of service quality as a gap between expectations and performance is inadequate. reputation. responsiveness. Table 4. serviceability.1 Age of respondents Age Group 18-28 29-39 40-50 51-60 > 60 Total No of respondents 58 22 12 8 0 100 Percentage 58% 22% 12% 8% 0% 100% 48 . competent staff. the concept of service quality should be customer’s attitude towards the service. operational facilities. According to that research. technical procedure and communication. technical facilities. Zeithaml and Berryand Cronin and Taylor (2001). availability.Walter H De vries. performance. They conducted a study on Quality of services by considering its various dimensions like reliability. The research point out the confusion is pertaining literature over the relationship between service quality and customer satisfaction. responsiveness and courtesy.

Fig 4. Inference The above figure shows that most of respondents belong to age group between 18-28 years.1 Analysis From the above graph and table presented above it is evident that majority of the respondents are of age in between 18-28 years. Table 4.2 Gender of the Respondents (Gender ratio) Gender No of Male Female Total respondents 68 32 100 Percentage 68% 32% 100% 49 .

2 Inference From the table and bar graph presented above.000 10000-20000 21000-30000 >30000 Total No of Respondents 34 40 18 8 100 Percentage 34% 40% 18% 8% 100% 50 . This question was aimed to identify the distribution between the two genders. Table 4.Fig 4.3 Income of respondents Income Ratio < 10. the distribution of the shoppers is evident. It can be deducted that male respondents are more as compared to female respondents.

Table 4.3 Inference From the above graph it is evident that most of respondents are having income level in between 10000-20000.Fig 4.4 Shopping frequency Particulars Daily Weekly Monthly Occasionally Total No of Respondents 10 40 44 6 100 Percentage 10% 40% 44% 6% 100% 51 .

5 Preference of respondents towards branded retail outlets and Kirana Shop. 44% of the respondents do shopping monthly and 6% of the respondents shop occasionally.Frequency of Shopping 6% 10% 44% 40% Daily Weekly Monthly Occasionally Fig 4. Table 4. Branded outlets Reliance Fresh More Smart Big Bazar Nilgiris Others Kirana shop Total No of respondents Percentage 44 16 16 8 6 4 6 100 44% 16% 16% 8% 6% 4% 6% 100% 52 . It can be deduced that people who visit once a month and weekly are those people who visits various stores for their regular needs and also may be because of the benefits by the stores such as discounts and offers. 40% of the respondents do shopping weekly. Inference The above figure shows that most of the respondents do shopping weekly and monthly. Of the 100 respondents it shows that 10% of the respondents do shopping daily.4 Analysis From the above graph frequency of shopping is evident.

5 Analysis From the above graph it is evident that 94% of respondents prefer branded retail outlets in which Reliance Fresh has a maximum share of 44% which is followed by 16% of More. Maximum number of people does shopping in branded retail stores for their regular needs and also may be because of the benefits by the stores such as discounts and offers.50 More Reliance Fresh Nilgiris Big Bazar Smart Others Kirana shop 40 30 20 10 0 No of respondents Percentage Fig 4. 16% of Smart and rest belongs to other stores. Inference The above figure shows that most of the respondents prefer shopping in branded retail outlets. Table 4.6 Service of Retail outlets Particulars No of Percentage Excellent Good Satisfactory Not Satisfactory Total Respondents 18 56 20 6 100 18 % 56 % 20 % 6% 100 Service of retail outlets 18% 6% 56% 20% Excellent Good Satisfactory Not Satisfactory 53 .

6 Analysis From the above table and graph the satisfaction level respondents is evident with respect to services provided by the retail outlets. Table 4. 20% of the respondents agreed with satisfactory rating service and 6% of the respondents agreed with not satisfactory rating service.Fig 4. Of the 100 respondents 18% of the respondents are agreed with excellent rating service. 56% of the respondents agreed with good rating service.7 Expectation of Gifts and discounts From Company Preference Yes No Total No of Respondents 86 14 100 % Respondents 86 % 14 % 100% 14% Yes No 86% Fig 4.7 54 . Inference From the responses it can be inferred that most of the respondents are happy with the service provided by the retail outlets and there are very less people who are not satisfied with the services provided by retail outlets.

55 . 58% of respondents’ has good perception about ‘Reliance Fresh’ products.Analysis From the above table and graph the expectation of respondents is evident.8 Perception about ‘Reliance Fresh’ Products Perception Excellent Good Satisfactory Not Satisfactory Total NO of Percentage of respondents 8 58 28 6 100 respondents 8% 58 % 28 % 6% 100% Fig 4. Of the 100 respondents 8% respondents has excellent perception about ‘Reliance Fresh’ products. Inference Majority of shoppers expect free gifts and discounts from the retail outlets. It can be deduced that free gifts and discounts attracts more number of customers. Table 4.8 Analysis From the above graph the perception of respondents towards “Reliance Fresh” products is evident. Of the 100 respondents it shows that 86% of the respondents except to receive free gifts and discounts offered by the retail outlets and 14% of the respondents do not expect any free gifts and discounts.

variety and brand. quality. Table 4.9 Factors Influence Purchase of Reliance Fresh Products Number of respondents Tota N l No Ver Lea ot of y st I resp im m onde Tota Im Factors p Price 76 Quality Convenie Nor % Imp % mal % p % p % nts l% 76 12 12 6 6 3 3 3 3 100 100 84 84 10 10 2 2 2 2 2 2 100 100 nce Availabil 22 22 66 66 6 6 3 3 3 3 100 100 ity 38 38 54 54 2 2 3 3 3 3 100 100 Brand Freshnes 34 34 42 42 16 16 4 4 4 4 100 100 s 80 80 12 12 2 2 3 3 3 3 100 100 Image 14 14 52 52 22 22 6 6 6 6 100 100 56 .28% of respondent’s has satisfaction about ‘Reliance Fresh’ products and 6% of respondents not satisfaction about ‘Reliance Fresh’ products. Inference Majority of respondents are satisfied with the products available in Reliance Fresh because of features like price.

FIG 4. Availability Factor 57 . 6% rated as Normal. 2% rated normal. 12% rated important. Quality factor 84% respondents have rated quality as very important. Convenience Factor 22% respondents have rated convenience as very important. and 3% not important. 3% rated least important. 2% rated least important and 2% not important. 3%rated as least and 3% as not important. 66% rated as important.9 Analysis From the above graph it shows that factors affecting on purchase of more products Price Factor 76% respondents have rated price very important. 10% rated important.

22% rated as normal. 42% rated as important. convenience of the store. 16% rated as normal. of respondents 16 72 6 6 100 Percentage 16 % 72 % 6% 6% 100 % 58 . Image factor 14% of the respondents have rated image as very important. The other factors which influence the buying behavior of customers are brand. 52% rated as important. 6% rated as least important and 6% rated as not important. 54% rated as important. Freshness Factor 80% of the respondents have rated freshness as very important. freshness and image. 4% rated as least important and 4% not important. Table 4. The influencing factors differ for different customers according to their taste and preferences. 3% rated as least important and 3% rated as not important. 2% rated as normal. Brand Factor 34% of the respondents have rated brand as very important. 2% rated least important and 2% not important.38% respondents have rated availability as very important.10 Employees Behavior Behavior Strongly agree Agree Somewhat agree Disagree Total No. 12% rated as important. Inference Majority of the customers prefer quality with lesser price along with availability of product. 2% rated as normal.

11Factors Influencing purchase Factors Advertisement Brand ambassador Product display Suggestion from No. 6% have somewhat agreed and only 6% respondents have disagreed about the employee behavior. Table 4.10 Analysis From the above table and graph the employee behavior towards customers in “Reliance Fresh” is evident.Fig 4. Of the 100 respondents 72% respondents agree that employees in store are polite and friendly. 16% have strongly agreed. of respondents 11 4 42 27 Percentage 11 % 4% 42% 27 % friends & relatives Others Total 16 100 16 % 100% 59 . Inference Maximum number of customers that is 72% are happy with behavior of employees in the Reliance Fresh retail outlets.

Inference The purchase of products is mainly influenced by display of the product and then it is followed by suggestion from friends and relatives and advertising.12 Price Comparison Price Range High Low Average Total No. Table 4. 38nced by display of the product and then it is followed by suggesti Product Display Others 42% Fig 4.11 Analysis From the table and graph presented above the affect of media towards the purchase of products is evident. 4% of the respondents are influenced by brand ambassador. 42% of the respondents are influenced by product display.16% 11% 4% Advertisement Brand ambassador 27% Suggestion ave said thatdents aareinps. 27% of the respondents are influenced by suggestion from friends and relatives and 17% of the respondents are influenced by other media. of respondents 38 22 40 100 percentage 38 % 22 % 40 % 100% 60 . Of the 100 respondents 8% of the respondents are influenced by advertisement.

12 Analysis The above table and graph shows comparison of Price of Reliance Fresh products with other retail outlets and Kirana shops. % Satis % Unsatis % V Overall satis 29 29 53 53 12 12 Quality Value for 52 52 42 42 3 3 3 money No. Inference Analyzing the responses from customers and above table and graph it can be said that price of the Reliance Fresh products are average as compared to other similar retail stores. 22% of the respondents said that price of Reliance Fresh products is low and 40% of the respondents have said that price of Reliance Fresh products is Average.40 30 20 No. 40% of the respondents have said that price of Reliance Fresh products is high.of cash 38 38 54 54 6 6 counters Complaint 8 8 68 68 20 handling Assortment 26 26 68 68 3 T Unsati % 6 6 Total resp 100 % 100 3 100 100 2 2 100 100 20 4 4 100 100 3 3 3 100 100 61 .of Respondents 10 0 High Low Average Fig 4. Table 4.13 Satisfaction parameters on Reliance Fresh outlets Factors V.

Credit facility 62 . 20% are unsatisfied.13 By analysis of above graph and table we come to know that Overall quality From the 100 respondents 29% are very satisfied. 68% are satisfied. 3% are unsatisfied and 3% are very unsatisfied. Assortment Of the 100 respondents 26% respondents are very satisfied. Complaint Handling Out of 100 respondents 8% of respondents are very satisfied. 68% of respondents are satisfied. and 4% are very unsatisfied. 12% are unsatisfied remaining and 6% are very unsatisfied. 3% are unsatisfied and 3% are very unsatisfied. 54% are satisfied. 53% are satisfied.Credit 0 0 10 10 30 30 60 60 100 100 facility Fig 4. 7% are unsatisfied and 2% are very unsatisfied. Value for money Out of 100 respondents 52% are very satisfied. 42% are satisfied. No of cash counters Of the 100 respondents 38% are very satisfied.

number of cash counters and assortment of the product in store. Customers are very unsatisfied with the credit facility provided by retail outlets. 10% are satisfied.14 Analysis The above graph shows overall satisfaction level of Reliance Fresh products. 11% of the respondents are not sure and 7% of the respondents are unsatisfied with the Reliance Fresh products. of Percentage respondents 12 70 11 7 100 12 % 74 % 11 % 7% 100% Satisfaction level Very satisfied Satisfied Not sure Unsatisfied Fig 4. Table 4.14 Satisfaction level Rating Very satisfied Satisfied Not sure Unsatisfied Total No. service. Inference Above data shows that most of the respondents are satisfied with quality of the product. 70% of the respondents are satisfied with the Reliance Fresh products. 12% of the respondents are very much satisfied with Reliance Fresh products. and value for money. 30% are unsatisfied and 70% are very unsatisfied.Out of 100 respondents 0% respondents very satisfied. Inference 63 .

28% rated as satisfactory and 50% respondents rated as not satisfactory.Analyzing the responses from customers and above table and graph it can be said that maximum number of customers are satisfied with the ‘Reliance Fresh’ products. 17% rated as good. Table 4.15 Service Rate of Kirana shops Rate Excellent Good Satisfactory Not Satisfactory Total No.16 Price differentiation Price Range High Low Average Total No of respondents 58 7 35 100 % of respondents 58 % 7% 35 % 100 % 64 .15 Analysis The above figure shows the satisfaction level of customers with respect to services provided by the Kirana shop. Inference From this analysis we come to know that most of the customers are moving towards retails stores rather than Kirana shops. Service provided by the stores is better than Kirana shop. Of the 100 respondents 5% rated excellent. Table 4. of respondents 5 17 28 50 100 Percentage 5% 17 % 28 % 50 % 100 % Fig 4.

17 Future trend in retail sector Rating No of respondents % of respondents Strongly agree 41 41% Agree 44 44% Somewhat agree 10 10% Disagree 5 0% Strongly disagree 0 0% 100 100% Total 65 . Of the 100 respondents 58% of respondents rated as high.Fig 4. Inference From this analysis we come to know that price of retail outlets is more as compared to kirana stores because of variety. 35% rated as average and only 7% respondents rated as low.16 Analysis The above graph shows the price differentiation between ‘Reliance Fresh’ retail outlets and Kirana shops. quality and brand availability. Table 4.

Fig 4. 5% disagrees and 0% strongly disagrees with the future trend. Inference Future trend about retail shopping is very high.17 Analysis From the graph and table presented above future aspect of retail outlets is evident. Of the 100 respondents 41% of the respondents strongly agree with the future trend. Table 4. 10% are somewhat agree. 44% are agreed.18: Recommendation of Stores Stores Reliance Fresh Nilgiris Big Bazar More Smart Respondents 33 14 20 24 9 Percentage 33 % 14 % 20 % 24 % 9% 66 .

quality. More. The mostly recommended store for shopping is listed in the following descending order: Reliance Fresh. Inference Shoppers visit to many different stores to get more effective price. 20% recommended Big Bazar. Big Bazar. 24% recommended More. 14% recommended Nilgiris and 9% respondents recommended Smart for shopping.Figure4. But they recommend the store when they get the full satisfaction. Nilgiris and Smart.18 Analysis From the above table and chart it is evident that how many respondents are satisfied with the store and are willing to recommend the various stores to their friends and relatives for shopping. varieties and other benefit provided by the stores such as discounts and offers which plays an important role to provide satisfaction. Of the 100 respondents 33% recommended Reliance Fresh. 67 .

Chapter 05 68 .

70% of the shoppers who visit retail outlets regularly are the youth between the ages  of 18 to 39 years. Due to competition respondents have different favourite stores according to their taste and preferences. The survey indicates that the 44% of the respondents visit the retail store once a    month and 40% of the respondents visit weekly.1 Findings In the survey. I came across many factors that influence the consumers’ satisfaction on organized Reliance Fresh retail store and their subsequent shopping and buying decisions.  The number of male respondents was more that is 68% as compared to the female   respondents that was only 38%.Findings 5. The most preferred store by respondents is Reliance Fresh that is 44%. I present the findings gathered and the suggestions I offer to companies based on the data gathered and analyzed. interviews and study conducted above. 40% of respondents fall under the income category of 10000 to 20000. 69 . Here. Compared to competitors Reliance Fresh is the most visited store to shop.

 Majority of the respondents are happy with the behaviour of the employees towards customer service.  Stores performing well in attracting the customers.  Service provided by the retail stores is very good as compared to the Kirana stores. 70 .  The main parameters for purchase in preferred store are price. product display.  Many of the people go for unplanned shopping. Mostly customers are satisfied with the service provided by the retail stores. suggestion from friends and relatives and there is a lot of scope to promote through print media.  Forty four percent of customer prefer to purchase products on Reliance Fresh retail outlets that indicates customers are attracted towards Reliance Fresh outlets it indicates it has a good market potential in future.  The majority of customers are aware about Reliance Fresh advertisements.  Majority of customers prefer retail outlets for shopping.  Giving gifts. quality and variety. offers and discounts have more effect on consumer buying decisions.  Cleanliness and hygiene maintained in the store is up to the mark.  Most customers prefer shopping at retail outlet due to the wide assortment of products available. The highest number of response is attributed to Reliance Fresh for attracting people  of many income groups.  86% of the respondents are expecting huge discounts and offers from Reliance Fresh stores.  Reliance Fresh provides better shopping experience.

offers and discounts have more effect on consumer buying decisions.  Customer Service provided by the Kirana stores is satisfactory but most of the  respondents are willing to visit the retail outlet. Chapter 06 71 .  Satisfaction level of respondents on Reliance products shows that Reliance Fresh has good quality products.  Giving gifts. The study reveals that the employees in the retail stores are not pressurizing  customers to purchase. Satisfaction towards retail stores is highly dependent on price & quality of product.  Maximum number of the respondents are shopping in retail outlets it shows that future trend and growth of retail sector is very high. It is evident that majority of the respondents are more concerned with quality and  price of the products provided in the retail stores. Reliance Fresh is the most recommended store by the respondents to their friends and relatives for shopping.

It may includes parking space for vehicles. Most of the customers are expecting gifts.1 Suggestions     Create awareness & manage home delivery services properly. cash discounts on bulk purchase can be provided   to attract new customers. Various schemes and festival offers. Selecting the store location is very important. Proper training should be provided to sales person so that they can deal with the  customer efficiently and demonstrate about the products. offers so Reliance Fresh has to   introduce special benefits on huge purchase. Providing credit facility to loyal customers it increases sales volume.Suggestions and Conclusion 6. There should be proper assortment of various product categories. location of billing counters 72 . lighting and fixtures arrangement of merchandise. Reliance Fresh has to improve promotion strategy. Cleanliness and hygiene should be maintained regularly. discounts.

Quality and variety of the products should be up to the mark, in Retail stores so that it

attracts more number of customers.
Different advertising medium should be adopted to bring awareness in shoppers about


the retail store and its product.
There should be proper assortment of various product categories.
In an era of hyper competition retailers could adopt E- retailing which would benefit


to deliver better services, assortments, products information, speed, price and so on.
International brands could be made available in retail stores.
The no. of cash counters need to be increased, keeping in view the customer traffic
intensity.

6.2 Conclusion
The study is an attempt to measure customer’s satisfaction at Reliance Fresh outlets in Pune.
The customers are the main asset for any organization, without satisfying them no
organization can be run well. Customer satisfaction towards retail stores is affected by
various factors. This survey was meant to identify the customer satisfaction level towards
Reliance Fresh retail stores. Findings of this research suggest that the level of customer
satisfaction is highly affected by the quality and price of the products, wide range of products
and location and conveyance are more attracting customers to visit the retail outlet.
It is found that most of the customers of Reliance Fresh retail store Pune are satisfied by the
quality of service, convenience, complaint handling, and employee’s behaviour availability
of products, branded products. But the customers are not satisfied with the credit facility,
high price and lesser number of outlets. The analysis shows that Reliance Fresh outlets have
been fairly successful with their marketing strategies and customer retention, but they still
have to upgrade services like more efficient billing, better parking facilities and wider range
of product availability to meet the competition.
The store should concentrate more on the F & V (fruits and vegetables) section .As it is
perishable in nature and has a short shelf life, it require more concentration. Store should take
care of indent because proper indent can solve half of the problem and the rest can be
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handled by following various practices like reducing wastage by the means of proper
handling of F&V (fruits and vegetables). This includes treatment of green vegetables, proper
cleaning etc. and last but not the least by increasing the sales not only of F&V. But also for
other products which is only possible by retaining our customers by the way of promotions.
From the study and research survey I can conclude that the Reliance Fresh is a good retail
outlet for shopping comparing to other retail outlets such as More, Big Bazar, Smart, Nilgiris
etc.
The strategy of Reliance fresh is very effective as they know very well how to attract
customers, which is reflected in the vast custom they enjoy in relation to others. A good and
friendly behaviour of sales personnel’s in the store is also a reason for increase in sales. Due
to the upsurge of the retail sector, unorganised sectors are perishing because of their old
concepts, poor service, non - competitive pricing etc. Therefore they have to upgrade their
performance in order to compete with the big leagues.
To conclude it can be said that most of the Reliance Fresh customers are happy with the
service received. More, Nilgiris, Total, Smart, Big Bazaar are tough competitors of Reliance
Fresh even though Reliance Fresh is trying hard to attract the customers by introducing new
offers schemes etc to capture the market share. According to customer there is huge potential
for increasing market share of supermarket. Findings of this research suggest that the level of
customer satisfaction is highly dependent on various parameters such as price, brand,
customer service, quality and variety of the products. Hence it is very much important for the
retail stores to consider all those parameters to enhance the level of customer satisfaction.

74

Bibliography
Books:

Schiffman Leon.Gand Leslie Lazar Kanuk; Consumer Behavior; Pearson Education;
7th edition;2002

Levy Michael;Retailing Management;Tata McGraw-Hill, New Delhi,5th edition;2004

Kothari.C.R;Research Methodology;New Age International(P) Ltd. New Delhi,2nd
edition;2009

Zeithamil Valarie,A,Service Marketing;Newyork McGraw-Hill

Websites:

http://www.wikipedia.com

http://www.researchindia.com

http://www.slideshare.net/jas.bhatia/reliancefresh

http://corporate.reliance.com/home.aspx

http://retail.about.com/od/location/a/selecting_site_2.htm

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Sinhgad Business School Pune. Indian journal of marketing Retail Magazine by Abijit Ghosh Business line (catalyst) Economic Times(Brand Equity) Business World Annexure Questionnaire Dear Sir/ Madam I am Suraj Thakkar. Suraj Thakkar Personal data Name : Age : Sex : Contact details: Occupation : Income : 1) How often do you do your shopping? i) Daily □ ii) Weekly □ iii) Monthly □ iv) Occasionally □ 2) Which one do you prefer more? A) Branded retail outlets. student of MBA IV Sem.No 12 & 13 3) Service provided by retail outlets is i) Excellent ii) Good iii) satisfactory iv) Not satisfactory 76 . 3.Magazines & Journal: 1. I am undertaking a dissertation project work as a part of my academics doing this survey in order to a study measuring customer satisfaction in Reliance Fresh outlets in Pune. 4. if yes specify a)Reliance fresh □ b)More □ c) Nilgiris □ d)Big market □ e) Smart □ f) Other □ B) Kirana shops If yes then go to Q. 5. 2. I kindly request you to co-operate with me for few minutes and respond to the following questions and I assure that the information provided by you will be kept confidential and will use only for academics purpose.

when you purchase a “Reliance Fresh ’’retail products. discounts etc from the company i) Yes ii) No 5) What is your perception about ‘Reliance Fresh’ products? i) Excellent ii) Good iii) satisfactory iv) Not satisfactory 6) How much importance do you give to the following factors. Very important Normal Least Not Factors Important important Important Price Quality Convenience Availability Brand Freshness Image 7) The employees at the store are polite and friendly i) Strongly agree ii) Agree iii) Somewhat agree iv) Disagree □ 8) Which of these factors affect your purchase? i) Advertisement □ ii) Brand ambassador □ iii) Product display □ iv) Suggestion from friends & relatives □ v) Others □ 9) How is the price of ‘Reliance Fresh’ products as compared to the other retail outlets and kirana shops? i) High ii) Low iii) Average 10) How do satisfied with following parameters of Reliance Fresh outlets Particulars Very Satisfied Unsatisfied Very satisfied Unsatisfied Overall Quality Value for money No. of cash Counters Complaint handling Assortment (Variety& Choice ) Credit facility 77 .4) Do you expect gifts.

11) Overall how you are satisfied with ‘Reliance Fresh’ outlets i) Very satisfied □ ii) Satisfied □ iii) Not sure □ iv) Unsatisfied □ 12) Service provided by kirana shop is i) Excellent ii) Good iii) satisfactory iv) Not satisfactory □ 13) How is the price of Kirana products as compared to the ‘Reliance Fresh’ retail outlets? i) High □ ii) Low □ iii) Average □ 14) Do you think the future trend – the market share of organized retail will increase i) Strongly agree □ ii) Agree □ iii) Somewhat agree □ iv) Disagree □ v) Strongly disagree □ 15) Refer the Retail Store. a)Reliance fresh □ b)More □ c) Nilgiris □ d)Big market □ e) Smart □ 16) If any additional comments on Reliance products regarding customer satisfaction ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………… Thanking you 78 .