GLOBAL SCHOOL OF BUSINESS , FARIDABAD

A PROJECT REPORT ON CUSTOMERS BUYING

BEHAVIOUR AT

PROJECT REPORT SUBMITED TOGLOBAL SCHOOL OF BUSINESS FARIDABAD

For The Award Of

Master of Business AdministrationBharatidasan University Tiruchirappalli

Submited by

Nazrul Alam Kabir

Roll No. :

Under the Guidance of Mr. Rohit Mehta

RELIANCE MART

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CERTIFICATE

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SERIAL NO. INDEX PAGE NO.

CHAPTER- 1 INTRODUCTION &BACKGROUND

1.1 Introduction of project 151.2 Company Profile 171.3 Introduction of Retail 201.4 Reliance Retail Limited 241.5 SWOT Analysis 341.6 Corporate Social Responsibility 361.7 Major Player 371.8 Literature Review

CHAPTER-2 RESEARCH METHODOLOGY & DESIGN

2.1 Objective of Research 402.2 Type of Research 442.3 Source of data & Collection tool 442.4 Sampling design 452.5 Sample size 452.6 Scope of the study 45

CHAPTER-3 ANALYSIS & INTERPRETATION3.1 Data analysis 483.2 Interpretation of collect data 53

CHAPTER-4 RESEARCH FINDING 72CHAPTER-5 CONCLUSION 74CHAPTER-6 LIMITATION OF RESEARCH 76CHAPTER-7 SUGGESTION 78

APPENDIX 80BIBLIOGRAPHY 83

Table of content

List of Tables

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INDEX PAGE NO.Management Team 19

Model of Buying Behavior 36Factors of Consumer Buying Behaviors 37

Table of customers visit 45Items of mostly shop 46Preference of offer 47

Preference of Reliance Mart 48Influence in shopping decision 49

Awareness of promotional scheme 50Understanding of promotional scheme 51

Recommendation reliance mart 52Information about products 53Satisfaction with services 54

Price at reliance mart 55Suggestion for operation management 56

List of Charts

INDEX PAGE NO.Chart 1 45Chart 2 46Chart 3 47Chart 4 48Chart 5 49Chart 6 50Chart 7 51Chart 8 52Chart 9 53Chart 10 54Chart 11 55Chart 12 56

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The project was carried out with an objective of knowing Buying

Behavior of customer at Reliance Mart. And also to know about do

customers are aware about the different types product and Services and

different offers provide at Reliance Mart. The total sample size taken was

one hundred (100) from various customers of Faridabad at Reliance Mart.

This research shows that the customer satisfaction at Reliance Mart is very

good but many customers are unaware of the product and services provided

by the Reliance Mart which aren’t available at other Retail stores. On the

other hand during my research I found many of the existing customers of

Reliance Mart who are satisfied with the working style of retail store, but

want continuous updates about the new offers and other products of

Reliance Mart. They want that Reliance Mart should do promotional activity

as – Advertising. So that they can be updated while seating at home.

Consumer buying behaviour is a primary force in determining how this transition is evolve. Getting closer to the customer in today’s highly competitive landscape is essential for the entire industry and is no longer just a retail issue. It requires all organisations across the supply chain to work as a single enterprise, sensing and responding rapidly to consumer demand in a co-ordinated manner. Detailed analysis of the changing patterns of consumer demand, shopping trends.

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RELIANCE

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

Dhirubhai H. Ambani

Founder Chairman Reliance Group December 28, 1932 - July 6, 2002

RELIANCE GROUP

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail.

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Reliance enjoys global leadership in its businesses; The Group exports products in excess of USD 15 billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and Reliance Industrial Infrastructure Limited.

Reliance Industries Limited is India’s largest private sector conglomerate (and second largest overall) with an annual turnover of US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal year ending in March 2010 making it one of India's private seclobal 500 companies, being ranked at 206th position (2008). [1]

It was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing financial instruments like fully convertible debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhai's ability to manipulate the levers of a controlled economy to his advantage.

Though the company's oil-related operation forms the core of its business, it has diversified its operations in recent years. After severe differences between the founder's two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in 2006. In September 2008, Reliance Industries was the only Indian firm featured in the Forbes’s list of "world's 100 most respected companies"

Subsidiaries of Reliance Industries Limited Reliance Petroleum

Ranger Farms Limited

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Retail Concepts and Services (India) Private Limited

Reliance Retail

Reliance Global Management Services (P) Limited

Reliance Biopharmaceuticals

Reliance Ghatraj Services

Reliance Engineering Associates (P) Limited

Retail

Early Trade

When man started to cultivate and harvest the land, he would occasionally find himself with a surplus of goods. Once the needs of his family and local community were met, he would attempt to trade his goods for different goods produced elsewhere. Thus markets were formed. These early efforts to swap goods developed into more formal gatherings. When a producer who had a surplus could not find another producer with suitable products to swap, he may

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have allowed others to owe him goods. Thus early credit terms would have been developed. 

Early Markets                        

Over time, producers would have seen value in deliberately over-producing in order to profit from selling these goods. Merchants would also have begun to appear. They would travel from village to village, purchasing these goods and selling them for a profit. Over time, both producers and merchants would regularly take their goods to one selling place in the centre of the community. Thus, regular markets appeared.

  The First Shops

Eventually, markets would become permanent fixtures i.e. shops. These shops along with the logistics required to get the goods to them thus it leads to the start of the Retail Trade.

Origins of Retail Chains

It is likely that, as markets became more permanent fixtures they evolved into shops. Although advantageous in many respects, this removed the mobility that a peddler or traveling merchant may still have enjoyed. For some shopkeepers, it made sense to obtain extra stock and open up another shop, most probably operated by another family member. This would recover business from peddlers, create new business and the greater volume would allow the shopkeeper to strike a better deal with suppliers. Thus the Retail Chain would have started. It is thought that this process was started in China over 2200 years ago with a chain of shops owned by a trader called Lo Kass. Excavations reveal that shops in ancient Rome were, in many respects, much like small shops are today, so it is most likely that retailer chains existed then. From Family Business to formal structure although retail chains would have been mostly run by families, as some chains grew, they would have needed to employ people from outside of their family. This was a limiting factor as there would have been a limit to the amount of trusted non family members available to help run the chain. Another, even more definite limiting factor was the distance the furthest shop would have

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been from the original shop. The greater the distance, the more time and effort would have been needed to effectively manage outpost shops and to service them with goods. There was, therefore, a natural barrier to expansion. That was the case until transport and communications became faster and more reliable. When this happened towards the end of the 19th century, chains became much bigger and more widespread. Many of these businesses became more structured and formalized, leading to the retail chains that we see today.

How retail developed

Peddlers and Producers

The Retail Trade is rooted in two groups, the peddlers and producers. Peddlers tended to be opportunistic in their choice of stock and customer. They would purchase any goods that they thought they could sell for a profit. Producers were interested in selling goods that they had produced.

General Store

This division continues to this day with some shops specializing in specific areas, reflecting their origins as outlets for producers (such as Pacific Concord of Hong Kong), and others providing a broad mix, known as General Store (such as Casey’s in the Midwest of the U.S.A.).

Although specialist shops are still with us, over time, the general store has increasingly taken on specialist products. Customers have found this to be more convenient than having to visit many shops – thus the term “Convenience Store” has also been applied to these shops. As the popularity of general stores has grown, so has their size. This combined with the advent of Self-Service has lead to the Supermarket, or Superstore

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Self-Service Stores

Background

Up until the introduction of self-service stores, customers would simply ask the shopkeeper for their goods. The shopkeeper would price them (weighing them if necessary), pack them in a bag or other container (often supplied by the customer), tot up the bill and receive payment. There was a personal one-to-one relationship between customer and shopkeeper. The First Self-Service Store. This all changed in 1915 when Albert Gerrard opened the Groceteria in Los Angeles, the first documented self-service store. This was soon followed a year later by the Piggly Wiggly® self-service store, founded by Clarence Saunders in Tennessee in the U.S.

Efficiency

These entrepreneurs noticed that their staff had to spend a great deal of time taking grocery orders from customers. The groceries were stacked on shelves allowing customers to walk around and browse, collecting their shopping in a basket that was supplied. The shopkeeper would only need to tot up the final bill at the end of the process and transfer the goods from the basket to the customer and receive payment. 

Growth

This new type of shopping was more efficient and many customers preferred it. Although personal service stores remain to this day, this new concept started a rapid growth of self-service stores in the United States. Other countries were slow to take up the idea, but there has been a steady rise in the global amount of self-service stores ever since.

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With a 27% share of world GDP, retail is a significant contributor to overall economic activity across the world. Of this, organized retailing contributes between 20% to 55% in various developing markets.

OVERVIEW OF INDIAN RETAIL SECTOR

The Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is expected to grow to 10% by 2011.

Size of Indian Retail

India is one of the 10th largest retail markets in the world. Organized retail constitutes about 5 % of total retail sales.

However organized retail has been growing at over 40% p.a. in last two years.

Structure of Indian Retail

Indian retail sector is highly fragmented mostly owner runned mom and pop outlets.

Retail chain such as Pantaloons, Trent and RPG retail has growing rapidly while Reliance, Aditya Birla Group is pumping huge money in retail sector.

Dairy Farm, Metro, Shoprite and Mark & Spencer are some international retailers which are present in India.

Reliance Retail Limited

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, Reliance is aggressively working on introducing a pan-India network of retail outlets in multiple formats.

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A world class shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique value-added services and above all, unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity, will be an integral feature of this project. By creating value at all levels, we will actively Endeavour to contribute to India's growth.

The project will boast of a seamless supply chain infrastructure, unprecedented even by world standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch almost every Indian customer and supplier.

With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Group’s foray into organized retail.

With a 27% share of world GDP, retail is a significant contributor to overall economic activity across the world. Of this, organized retailing contributes between 20% to 55% in various developing markets. The Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is expected to grow to 10% by 2011. RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure in India, which includes a multi-format store strategy of opening neighbourhood convenience stores, hypermarkets, and specialty and wholesale stores across India.

RRL launched its first store in November 2006 through its convenience store format ‘Reliance Fresh’. Since then RRL has rapidly grown to operate 590 stores across 13 states at the end of FY 2007-08. RRL launched its first ‘Reliance Digital’ store in April 2007 and its first and India’s largest hypermarket ‘Reliance Mart’ in Ahmadabad in August 2007. This year, RRL has also launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance Timeout), auto accessories and service format (Reliance AutoZone) and also an initiative in the health and wellness business through ‘Reliance Wellness’. In each of these store formats, RRL is offering a unique set of products and services at a value price point that has not been available so far to

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the Indian consumer. Overall, RRL is well positioned to rapidly expand its existing network of 590 stores which operate in 57 cities.

During the year, RRL also focused on building strong relationships in the agri-business value chain and has commenced marketing fruits, vegetables and staples that the company sources directly to wholesalers and institutional customers. RRL provides its customers with high quality produce that has better shelf life and more consistent quality than was available earlier. RRL has made significant progress in establishing state-of-the-art staples processing centres and expects to make them operational by May 2008.

Through the year, RRL also expanded its supply chain infrastructure. The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner.

Recognizing that strategic alliances are going to be a key driver to its retail business, in FY 2007-08, RRL established key joint ventures with international partners in apparel, optical and office products businesses. Further, RRL will continue to seek synergistic opportunities with other international players as well. This year, RRL will continue its focus on rapid expansion of the existing and other new formats across India.

Popular Profiles at Reliance Retail

Management team

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Name Designation

Mr. Mukesh Ambani Chairman&Managing Director

Nikhil R Meshwani Executive Director

Hital R Meshwani Executive Director

Madhumita Mohanti Deputy General Manager

Akashay Lokhande Area Manager-Operation &Sales and NSO

Devandra Chawla Vice-President-Business Head, Merchandise Head

Zubin Nowrojee, Mangement State Head Category

Formats of Reliance RETAIL

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Reliance Fresh(Super Market

Reliance Mart

Reliance Digital

Reliance Trends

Reliance Wellness

Reliance Super(Mini-Hypermarket)

Reliance Footprint

Reliance Timeout

Reliance Istore

Reliance Jewels

Reliance AutoZone

Reliance Living Home ware

RELIANCE MART

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• Reliance mart hyper mart

• Type-hypermarket

• Founded-30 October 2006

• Headquarters-Mumbai, India

• Key people-Mr Mukesh Ambani, CEO

• Industry-Retail

• Punch line- Growth Through Value Creation

• Website-www.ril.com

Reliance Mart is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores at Hyderabad on 3 November 2006. The Reliance Mart Hypermarket chain is RIL’s Rs 25,000 crore venture and it plans to add more stores across different region by year 2010-2011. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. The Hyper marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars dairy products,apparel,CDIT products,Footwears,lifestyle products and also will sport a separate enclosure and supply-chain for non-vegetarian products. Also Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. The company also has plans to train students and housewives in customer care and quality services for part-time jobs.

Locations of Reliance Mart Stores:-

Hyderabad,

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Tirupati,

Ahmedabad,

Jamnagar,

Ranchi,

Bangalore,

Pune,

Mumbai,

Faridabad,

Gurgaon,

Jodhpur

Tiruchirappalli.

Products of Reliance mart

cameras,

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home & kitchen appliances,

mobile phones and software.

groceries,

clothing,

computers,

jewelry,

shoes,

books,

music,

services of a cobbler and a photo-printing service.

fresh produce,

food and grocery,

apparel and accessories,

footwear,

consumer durables and IT,

lifestyle products,

furniture & furnishings

dishwashers,

refrigerators,

air conditioners,

blenders,

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chimney and gas stoves,

coffee makers,

electric cookers,

electric kettles,

fans and coolers,

irons,

juicers,

microwaves

mixers,

grinders and processors,

toasters and sandwich makers,

vacuum cleaners,

washing machines,

water filters

It carries an assortment of approximately 100,000 products under one roof.

Reliance Mart Faridabad

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Reliance Mart FaridabadSec-35,Crown Interiorz mall 21 KM Stone,Delhi-Mathura Road (NH-2)FaridabadFounded: 10 Sep 2008Area: 1, 00,000 sq. ft.Products: 40,000 products

Reliance Retail has launched its hypermarket under the brand name Reliance Mart at Crown Interiorz Mall, Delhi-Mathura Road. This is the first Reliance Mart to be launched in Faridabad in the NCR region. This has come up after the successful launch of hypermarkets in Tirupati, Pune, Gurgaon, Bangalore, Ranchi, Hyderabad and two hypermarkets in Gujarat at Ahmedabad and Jamnagar. 

The Reliance Mart is first of its kind in North India, which is spread across 1, 00,000 sq. ft. of shopping area. This will provide the shoppers a never before experienced shopping delight. A range of more than 40,000 products can be seen in

the store for the entire family. 

Shoppers can choose from a wide array of products in every category ranging from fresh produce, daily needs, home, books & music, gifts and toys, footwear, eyewear, cosmetics and fragrances, furniture, furnishing & décor, computers and entertainment, health and wellness products. 

While speaking on the occasion, Mr. Raghu Pillai, President and CEO, Operations and Strategy, Reliance Retail said "The launch of Reliance Mart at Faridabad will provide an

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international shopping experience to all our customers at unmatched affordability, guaranteed quality and choice of products and services. The Reliance Mart marks another milestone in our effort to unleash the retail revolution

in India." 

This store has dedicated 25000 sq ft shopping area to apparel and 10000 sq ft consumer durable and electronics lovers. In addition to other products & services Reliance Mart also offers fashion jewellery, auto accessories, membership, free home delivery, telecom services, ResQ, the consumer durable service and consumer finance services. 

The store layout and ambience has been designed specifically to provide customers comfort and ease while shopping. Reliance Mart has 17 check-out counters and 4 express check-out counters aimed at reducing the customer waiting time. The store will remain open from 10:00 a.m. to 10:00 p.m. seven days a week, serviced by over 210 highly skilled and trained customer sales representatives. 

Reliance Mart offers its customers Reliance One, Membership & Loyalty program, designed to deliver customized benefits to frequent shoppers. The customers can earn Reliance One Points on all shopping in the store which can be redeemed after accumulation under this scheme. Reliance One already has a membership base of more than 4 million customers. 

Products of Reliance Mart faridabad

It consists of more than 40,000 products of following categories

Staples

Processed Food

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Hard-line

Homecare

Baby care

Beverages & Confectionaries

Dairy

Non Food

Apparel

Lifestyle

Electronics

Footwear

Stationary

Home décor

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SWOT ANALYSIS

SWOT Analysis, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories:

Internal factors – The strengths and weaknesses internal to the organization. External factors – The opportunities and threats presented by the external environment. 

SWOT analysis on the Reliance Mart.

Strengths :

Keeping local brands at the outlets is more profitable and also makes the supply chain more efficient. Being a bulk purchaser, Reliance Mart can offer products at very low prices. Also taking into consideration the local brands, the products at the outlets would be easily acceptable by the customers. And there would be comparatively less efforts needed by the marketer to explain the product to the consumers.

Weakness :

In some cases, few regional brands strongly liked by the

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consumers offer lower margins than that offered by the national brands. It face a tough competition by big shopping malls. Face problem to make decision on providing offers and facilities to customers. Because the competitors also provide the same offers and facilities to the customers.

Opportunities

In the NCR by next month with plans to open 30 hypermarkets marts. Raghu Pillai, President and CEO (operations and strategy), Reliance Industries Limited (RIL) said the company is planning to set up 500 hypermarkets across 784 towns by 2011.

Reliance Retail is building a robust and state-of-the-art supply chain infrastructure spanning the entire country, besides setting up its own cold storage chain. It is expected to generate direct employment for half-a-million people and indirect employment to two million.

Reliance hypermarket CEO K. Radhakrishnan said six malls under the RelianceMart brand would come up in the national capital region (NCR), five each in Punjab and Andhra Pradesh, three in Gujarat and two in Bangalore.

Threats :

The hypermarket would be selling the products on EDLP (every day low price) basis at prices 15-20 percent lower than market prices. It has to face a tough competition by big shopping malls ie. Big Bazaar, Spencer HyperEWxzc

Each store will have an investment of Rs 50 lakh to Rs 60 lakh. Unlike global retailers who operate on thin margins, Reliance Retail is looking at a fairly high-margin business

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model. They have a threat from the existing supermarkets which provides all the services to its customers.

CORPORATE SOCIAL RESPONSIBILITY

Today when most of the companies are busy in making profits by any means, there are few ones who are focused to return this society, a part of what they have earned through this society. Reliance retail is one of them. Following efforts of reliance retail are aimed at benefiting the society making reliance socially responsible:

1) Reliance Retail aims at recruiting people from the underprivileged community in society. "Hence, we are planning to train students from corporation schools and schools run by NGOs. And, we consider this as a part of our corporate social responsibility," Mukesh D. Ambani said.

Asked whether the company will take students on an employment basis and pay them a stipend during the course period, he said that actually, it is planning to charge a "small fee" from those who want to join the course "as we want to bring in some discipline and regularity among the students", 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. To secure high quality, Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers from villages through Collection Centers.

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With this concept, Reliance has built a business model generating shared value that links the company supply chain more closely to poor farmers in Indian villages. Reliance is providing a guaranteed market for the farmers’ produce, reducing transaction costs and training the farmers in better and sustainable farming practices. This initiative results in higher income and upgrading of skills for the farmers, and reduced spoilage of produce (up to 35 percent) and better quality products for Reliance retail stores.

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. In return Reliance is giving farmers information about how can farmers improve their productivity. 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. Farmers are provided technical help as well like information about quality of seeds and fertilizers.

Major players in retail sector

Shoppers Stop :

Shoppers’ Stop is the pioneer of pan-nation one-stop retail outlets. Starting in 1991 with a single store in Mumbai, it has

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now developed more than 20 stores. The company has added 1,568,479 sq ft of area during the year taking its total store area to 1,170,548 as on March 2007. The company has a wholly owned subsidiary – Crossword – a specialty retail chain with over 32 stores spread across the country. This store specializes in books, gift articles and stationery. During the quarter, Crossword opened its first store and 2 ‘Stop & Go’ stores at the Mumbai domestic airport. Further, it forayed into airport retailing through a joint venture with The Nuance Group AG of Switzerland. The company has also made an entry into the entertainment sector by acquiring 45% stake in Time zone Entertainment Pvt. Ltd. The recent moves by the company will widen the offering and de-risk its dependence on the flagship Shoppers’ Stop stores.

Pantaloon:

Incorporated in 1987, Pantaloon Retail is among the pioneers in chain retailing. It is the largest retailer in the country operating 350 stores across segments in over 40 cities across the country and constituting 5 m square feet of retail space.

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Starting out with dedicated apparel stores (Pantaloon), the company has stores across the cross-section of the society. The company’s business is broadly divided into 2 segments, Lifestyle and Value retailing. On the apparels front it has Pantaloon (31 departmental stores), Central Malls (4 seamless malls as well as its other concepts). These stores can be classified under ‘Lifestyle Retailing’. On the general merchandise front it has Big Bazaar (51hypermarkets), Food Bazaar (77 supermarkets) and Fashion Station (5 fashion stores) and other delivery formats. These fall under ‘Value Retailing’.

more

The more. Chain of supermarkets, are bright and clean stores, at convenient locations with layouts that allow ease of navigation. The product display is well organised and facilitates ease of choice. The stores have been designed by Fitch, the leading international retail design firm.

The stores promise a range of benefits to consumers and are a solution to the many problems faced by housewives while shopping for their daily needs. The retail offering from the Aditya Birla Group, has been crafted after in-depth research of the needs and expectations of the Indian consumers. more. is the answer to the shopping needs of the Indian housewife who wants a modern and convenient option in her neighbourhood, with an attractive and consistent range of products. more. assures consumers the security of knowing that they are paying the best price in the market for good quality products.

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RPG Group:

RPG Enterprises is one of India’s largest business conglomerates, with a turnover of US$ 2.55 bn and assets worth US$ 1.8 billion. Since its inception in1979, RPG Enterprises has been one of the fastest growing groups in India with more than 20 companies operating successfully in 7 business sectors: Retail, IT & Communications, Entertainment, Power, Transmission, Tyres and Life Sciences. In 2001, it established ‘Giant’ Hypermarket

Provogue (India) Ltd., (PIL) formerly Acme Clothing Pvt. Ltd was incorporated in November 1997, converted in to a public limited company in March 2005. It deals with fabrics, dyestuffs, chemicals and textile machinery. PIL operates in two core industry segments. The first being designing, manufacturing and selling branded ready-made garments and other accessories under the brand 'Provogue'. The second business is export of finished fabrics, dyestuffs, chemicals and textile machinery to several markets in African continent.

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Consumer buying behaviour

Definition

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Consumer buying behavior is a process by which individuals search for, select,  purchase, use and dispose of goods and services, in satisfaction of their needs and wants.

Consumer behaviour is the study of when, why, how, and where people do or do not buy a product. It blends elements from  psychology,  sociology, social  anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

The four type of consumer buying behavior are: Routine Response/Programmed Behavior—

o buying low involvement frequently purchased low cost items;

o need very little search and decision effort; o Examples include soft drinks, snack foods, milk

etc.

Limited Decision Making—o buying product occasionally. o Requires a moderate amount of time for

information gathering.o Examples include Clothes

Extensive Decision Making/Complex o high involvement, unfamiliar, expensive and/or

infrequently bought products.o High degree of

economic/performance/psychological risk.

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o Examples include cars, homes, computers, education.

Impulse buying,o no conscious planning.

Consumer decision making

Definition

Process by which (1) consumers identify their needs, (2) collect information, (3) evaluate alternatives, and (4) make the purchase decision. These actions are determined by psychological and economical factors, and are influenced by environmental factors such as cultural, group, and social values.

Stages of the Consumer Buying Process1. Problem Recognition (awareness of need) --difference

between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat.

2. Information search --o Internal search, memory.o External search if you need more information.

Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.

3. Evaluation of Alternatives --need to establish criteria for evaluation, features the buyer wants or does not want.

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Rank/weight alternatives or resume search.. Information from different sources may be treated differently.

4. Purchase decision --Choose buying alternative, includes product, package, store, method of purchase etc.

5. Purchase --May differ from decision, time lapse between 4 & 5, product availability.

6. Post-Purchase Evaluation --outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc..

Understanding The Buying Behaviour Of Reliance Mart Consumers

Definition

Purchase decision making pattern that is a complex

amalgam of needs and desires, and is influenced by factors

such as the consumer's (1) societal role (parent, spouse,

worker, etc.), (2) social and cultural environment and

norms, and (3) aspirations and inhibitions

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Buying Behaviour appears in the definitions of the following

terms: marketing research, advertisement (ad), economic

environment, activities, interests, opinions and consumer

research.

Buying Behaviour appears in these other term: consumer

buying behaviour.

Model of Buying Behaviour

Marketing Other Buyer’s Buyer’s Buyer’s

Stimuli StimuliCharacteristics Decision Decision

      Process           

Product Economic CulturalProblem

recognition Product choice

PriceTechnologi

cal SocialInformation

Search Brand choicePlace Political Personal Evaluation Dealer choice

Promotion Cultural

Psychological Decision

Purchase timing

     Post

purchasePurchase amount

      Behaviour           

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When I have analysed the model of buying Behaviour finding that people of Faridabad are influenced by the marketing stimuli (4 P’s) people are focused on price rather than product, place and promotion, other factor which influenced people is the technological advancement.

Factors of consumer buying behavior

Cultural SocialPersonal

cultureReference Groups

Psychological

Cycle Stage MotivationSubculture Family Economic Perception

Circumstances Learning

Life StyleBeliefs and Attitudes BUYE

RRoles and Statuses

Personality and

Social Class Self Concept

Reference groups can have potent influence on behaviour in

general, and they may also be very influential on consumer

behaviour, considering the ‘Consumer Goods Segment’.

Family and friends in specific are considered before making a

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decision about purchasing a product. But their purchase

decision depends completely on self-opinion.

Where reference groups’ influence is operative, the advertiser

should stress not only the people who buy the product but also

those who influenced the purchasing decision.

The process may be viewed as starting when the consumer

engages in problem recognition. Problem recognition occurs

when the consumer is activated by awareness of a sufficient

difference between his / her concept of ideal situation. The

action occurs only when the consumer perceives a sufficiently

large discrepancy between the actual and ideal states.

Given that the consumer is aroused to action, the next state is internal search for a quick and largely unconscious review of memory for stored information and of an experience regarding the problem. This information in the form of beliefs and attitude influence the consumer’s preference towards brand. If an internal search does not provide sufficient information about Products, or how to evaluate them, the consumer continues with a more involved external search for information.

Any information stimuli are then subjected to information

processing activities. This process involves allocating attention

to available stimuli, deriving meaning from these stimuli. The

alternating evaluation phase involves comparing the

information gained in the search process for alternative

product and brands to the product judging criteria on standards

the consumer has developed. When such a comparison leads to

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favourable evaluations, the consumer is likely to develop a

purchase intention towards that alternative that received the

most favourable evaluation.

A purchase process follows strong purchasing intentions. This

involves a series of selection, including the type of retail outlet

as well the specific brand on service to use. The consumer’s

purchase then leads to various outcomes. One such outcome is

satisfaction as a result of direct experience in using the brands.

Satisfaction will affect the consumer’s belief about the brand.

Other outcome is dissatisfaction and post sale doubt.

Many ad agencies conducted an in-depth study of consumer buying behaviour and found that they all crave for peer acceptance and parental non-influence. Beyond this they are an enigma.

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Research Objectives

Primary Objective

To study consumers buying behaviour at Reliance Mart of Faridabad.

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Secondary objectives

To know about the consumer awareness towards services provided by Reliance Mart of Faridabad.

To know about the customer awareness towards promotional activity of Reliance Mart.

To suggest changes that can be brought in Reliance mart as per the customer’s point of view.

Research Problem

To make a comprehensive study of Reliance Mart and know the Buying behaviour of Reliance Mart customers.

Importance of data collection

Reliance Mart basically means business and in business collection of raw data allows the managers to see the real scenario and then take a decision as per the data

obtained.

Type of research

Descriptive type research has used to complete this project. This research is based on fact finding enquires and the variables are totally independent .

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Research design

Descriptive research design was taken in the research

project.

Data Collection :

Data has been collected through both primary and secondary approach.

Data Sources

PRIMARY DATA

Primary data generally means those raw data or data structures that are collected “first- hand” and have not had any previous meaningful interpretation. For my Project Report, I have collected such primary data through face to face interview method through questionnaire.

SECONDARY DATA

Secondary data are those data which has been already collected by someone and may be already used the data by someone.

Secondary data were collected through: -

Companies’ website

Reports and publications of the company

Through internet

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Newspapers, books and magazines.

Sampling Design

Probability sampling design technique was used in the research. I have given equal weightages to my all respondent and chose them randomly without any biased like gender, age, income culture.

Sample size

100 customers of Reliance Mart were taken as sample size

for the research

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Data Analysis

The tools and methods of data collection identified earlier were employed to gather data on the consumer perception on Reliance Mart. The data accrued, especially from the interviews and questionnaires circulated, are tabulated and depicted on graphs. The data thus gathered and tabulated is analyzed. The data is then scrutinized and relevant interpretations are drawn.

The major objectives of analysis of data are:

1. To evaluate and enhance data quality2. Examine effects of other relevant factors4. Level of satisfaction,5. Causes of dis-satisfaction,6. Customer responses regarding services.

Interpretation

Pie charts and Bar diagrams are used to interpret the data.

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1. How frequently you visit Reliance Mart?

Daily ( ) weekly ( ) fortnightly ( ) once in month ( )

Table of Customers visit Details Respondent Percentage

Daily 09 9%weekly 48 48%Fortnightly 20 20%Once in a month 23 23%

9

48

2023

05

101520253035404550

Daily weekly Fortnightly Once in amonth

Chart 1

ANALYSIS— Data collected for project from 100 responded in which 9 are like to visit daily, 48 are like to visit

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weekly, 20 are likely to visit fortnightly and 23 likely to visit once in a month .

Interpretation - In total respondent I analyzed that most of the customer are likely to visit on weekly. In my observation I found that more scheme should be provided on weekend.

(2). What do you mostly shop for at reliance mart store?

Cloths ( ) Grocery ( ) cosmetic product ( ) all products ( )

Items of mostly shopDetails Respondent Percentage

Cloths 24 24%Grocery 23 23%Cosmetic product 06 6%All product 47 47%

Chart 2

Cloths24%

Grocery23%Cosmetic

product6%

All product47%

ANALYSIS—

Data collected for project from 100 responded in which 47 customer are like to purchase all

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product, 24 are like to purchase cloths, 23 are likely to purchase grocery, 6 likely to purchase cosmetic product .

Interpretation- In total respondent we analyses that most of the customer are like to purchase variety of product in the store. Company should try to retain the customer. And should increase the variety of cosmetic product & grocery.

3. which offer do you prefer while shopping at reliance mart?

Daily ( ) week ( ) fortnightly ( ) once in month ( )

Preference of offer Details Respondent Percentage

Daily 06 6%weekly 53 53%Fortnightly 21 21%Once in a month 22 22%

Chart 3

6

53

21 22

0

10

20

30

40

50

60

Daily weekly Fortnightly Once in a month

ANALYSIS—

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Data collected for project from 100 responded in which 6 are like to purchase daily, 53 are like to purchase weekly, 21 are likely to purchase fortnightly and 22 likely to purchase once in a month .

Interpretation- In total respondent I analyses that most of the customer are likely to purchase on weekend. In my observation I found that more scheme should be provided on weekend.

4 . Why do your prefer to shop at Reliance Mart?

Quality ( ) Brand ( ) Price ( ) One stop shop ( )

Preference of Reliance MartDetails Respondent Percentage Rank

Quality 24 24% 3brand 32 32% 1Price 14 14% 4One stop shop 30 30% 2

24

32

14

30

0

5

10

15

20

25

30

35

Quality brand Price One stop shop

Chart 4

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ANALYSIS— Data collected for project from 100 responded in which 32 customer are believe in reliance brand and 30 are like to purchase in one stop shop and 24 are like to purchase quality product, only 14 respondent consider price ..

Interpretation In total respondent I analyses that most of the customer are believe in reliance brand like to purchase qualitative product in stop shop. Here I observed that people want to purchase original product and want better service.

(5) Are the Price of Reliance mart is lower than the other competitor? Move this question Yes ( ) No ( ) Equal ( ) no idea ( )

Price at reliance martDetails Respondent Percentage

Yes 35 35%No 20 20%Equal 31 31%No Idea 14 14%

Chart 5

Yes35%

No20%

Equal31%

No Idea14%

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ANALYSIS— Data collected for project from 100 responded in which 35 customer say and 20 say no, 31 say some time and 14 customer are say never .

Interpretation- According to respondent customers are not fully satisfied . Company should try to give the best quality product in minimum price to the customer. (6). Do advertisement and promotion influence your shopping decision?

Yes ( ) No ( )

Influence in shopping decision

Details Respondent PercentageYes 92 92%No 08 08%

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92

8

0

20

40

60

80

100

Yes No

Chart 6

ANALYSIS— Data collected for project from 100 responded in which 92 customer are like promotion scheme and 8 are those people say promotion scheme doesn’t effect on purchasing.

Interpretation

In my observation I found promotion scheme is must to sustain customer attract customer & influence the purchasing.

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7. Are you aware of different promotional schemes provided by reliance mart?

Yes ( ) No ( ) Somewhat ( )

Awareness of promotional scheme

Details Respondent PercentageYes 65 65%No 19 19%Somewhat 16 16%

Chart 7

Yes65%

No19%

Somewhat16%

ANALYSIS— Data collected for project from 100 responded in which 65 customers are aware promotion scheme and 19 customers are not aware of promotion scheme and 16 customers are somewhat aware .

Interpretation

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In total respondent I analysed that most of the customer are aware of promotion scheme. In my observation I found that attractive promotion scheme will increase more sale .

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8. Are Promotion scheme taken by reliance mart easy to understand?

Yes ( ) NO ( ) some time ( )

Understanding of promotional schemeDetails Respondent Percentage

Yes 51 51%No 21 21%Sometime 28 28%

ANALYSIS— Data collected for project from 100 responded in which 51 customer say yes and 21 are those which say no and 28 say some time .

Interpretation-

Chart 8

51

2128

0

10

20

30

40

50

60

Yes No Sometime

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Company should try making promotion scheme easy understandable, promotion scheme should be in both in English & Hindi

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9. How likely are you to recommend Reliance Mart to a friend or relative?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

Recommended reliance martDetails Respondent Percentage

Excellent 07 7%

Good 47 47%

Fair 44 44%

Poor 02 2%

Chart 9

Excellent7%

Good47%

Fair44%

Poor2%

ANALYSIS— Data collected for project from 100 responded in which 7 customer say excellent and 47 say good, 44 say fair which are and 2 customer are those say poor .

Interpretation In my observation I found that only 47% customer are fully satisfied from the store. Company should

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try satisfy the customer by providing better service and rectify their problem immediately.

10. How do you come to know about various products available at Reliance Mart?

Friend ( ) TV ( ) Radio ( ) Telephone ( )

Information about productsDetails Respondent Percentage

Friend 28 28%TV 50 50%Radio 10 10%Telephone 12 12%

ANALYSIS— Data collected for project from 100 responded in which 28 customer say friend and 50 customers say TV, 10 customers say Radio and 12 customers say Telephone .

Interpretation -

28

50

10 12

05

101520253035404550

Friend TV Radio Telephone

Chart 10

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According responded result most of most of customers come to know about product from TV. Company can try to retain customers and increase customers as they get information from friends. 11. Are you satisfied with the services provided by Reliance Mart.

Price ( ) Product Quality ( ) Selling Techniques ( ) Promotion offers ( ) Variety ( )

Satisfaction with servicesDetails Respondent Percentage Rank

Price 20 20% 3Product Quality 17 17% 4Selling Techniques 07 7% 5Promotion offer 21 21% 2Variety 35 35% 1

2017

7

21

35

0

5

10

15

20

25

30

35

Price ProductQuality

SellingTechniques

Promotionoffer

Variety

Chart 11

ANALYSIS— Data collected for project from 100 responded in which 20 customer are believe in reliance price, 17 customer are believe in reliance Product Quality , 7 customer are believe in reliance Selling Techniques , 21 customer are believe in reliance Promotion offer , 35 customer are believe in reliance Variety .

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Interpretation In total respondent I analyses that most of the customer are believe in variety of products. Here I observed that company can come with more variety in the market. 12. Kindly suggest improvement that can be done according to you to make operations of Retail mart more effective and impactful.

Cashier Speed ( ) Staff Knowledge ( ) Waiting Time Management ( )

Suggestion for operation managementDetail Respondent Percentage

Cashier Speed 45 45%Staff Knowledge 30 30%

Waiting Time Management

25 25%

Chart 12

Cashier Speed 45%

Staff Knowledge 30%

Waiting Time Management

25%

ANALYSIS—

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Data collected for project from 100 responded in which 45 customer say cashier speed and 30 say staff skill, 25 say waiting time management .

Interpretation- According respondent customers are not fully satisfied. company should recruit new skilled cashier for better performance.

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Finding

1.Majority of customers here visit weekly.

2.Majority customers like to purchase all goods from Reliance Mart.

3. Weekly offers are popular among customer.

4.Customers of reliance mart prefer brand of products.

5.Customers like one stops shopping.

6.Advertisement is the biggest way to attracting the customer.

7. Most of customers come to reliance mart are aware about promotional scheme.

8.Promotion scheme not so easy to understand for customer.

9.Most of customer is not fully satisfied with store.

10.Majority of customers come to know about products of reliance mart through TV.

11. Price is almost equal to other competitors

12. Shortages of skilled workers.

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Conclusion

The report reveals that there is huge scope for the

growth of organized retailing and improvement of

Reliance Mart.

With the changing lifestyle, modernization and

westernization there exists a huge scope for the growth

of Reliance Mart store and is therefore a threat to

unorganized retailing.

Reliance Mart store are able to provide almost all

categories of items related to food, health, beauty

products, clothing & footwear, durable goods so it

become quite easier for the customer to buy from one

shop and hence is a convinient way of shopping when

compared to unorganized retailing.

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Aggressive Marketing is the key to increasing the

market share in this area, since the market has a lot of

potential both in terms of untapped market .

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Limitations

The project has some limitations because it is totally

based on efforts of individuals. Peoples may be careless and

may not give correct answer to the questions, because of so

many reasons.

It is totally based on personal efforts of individuals.

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Some of the consumers are unable to understand the

questionnaire.

Language is one of the worst problem, some of the

consumers are unable to understand English.

Some consumers are not interested in filling

questionnaire.

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Suggestion

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1- More promotion scheme should be used to penetrate the market.

2- Skilled employees should be higher to do work effectively

3- Promotion scheme should in such way that customer can understand easily.

4- Service of store should be providing in such way which full the need of the customer.

5- Advertisement should be both in English and hindi .

6- Company should come with more variety of products into market.

7- Company should try to minimize the price

8- Employed more skillful employee

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Appendix

Questionnaire

1. How frequently you visit Reliance Mart?

Daily ( ) weekly ( ) fortnightly ( ) once in month ( )

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2. What do you mostly shop for at reliance mart store?

Cloths ( ) Grocery ( ) cosmetic product ( ) all products ( )

3. which offer do you prefer while shopping at reliance mart?

Daily ( ) week ( ) fortnightly ( ) once in month ( )

4. Are the Price of Reliance mart lower than the other competitor?

Yes ( ) No ( ) Equal ( ) no idea ( )

5. Why do your prefer to shop at Reliance Mart?

Quality ( ) Brand ( ) Price ( ) One stop shop ( )

6. Do advertisement and promotion influence your shopping decision?

Yes ( ) No ( )

7. Are you aware of different promotional schemes provided by reliance mart?

Yes ( ) No ( ) Somewhat ( )

8. Are Promotion scheme Taken by Reliance mart easy to understand?

Yes ( ) NO ( ) some time ( )

9. How likely are you to recommend Reliance Mart to a friend or relative?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

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10. How do you come to know about various products available at Reliance Mart?

Friend ( ) TV ( ) Radio ( ) Telephone ( )

11. Are you satisfied with the services provided by Reliance Mart?

Price ( ) Product Quality ( ) Selling Techniques ( ) Promotion offers ( ) Variety ( )

12. Kindly suggest improvement that can be done according to you to make operation management more effective and impactful.

Cashier Speed ( ) Staff Knowledge ( ) Waiting Time Management ( )

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BIBLIOGRAPHY

The followings have proved to be valuable and helpful to

me while preparing the report

Research Methodology – C.R KothariPrinciples of Marketing – Philip Kotler

Internet websites

www.ril.com www.google.com www.wickipedia.com

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