A

PROJECT REPORT

CUSTOMER CENTRICITY AT VALUE FORMAT STORE

ORGANIZATION NAME: - RELIANCE RETAIL

SUBMITTED BY:
GOHIL KULDIPSINH.V
T.Y.B.B.A
ROLL.NO:-36
 DECLARATION

I will take pleasure in declaring that the project work that is undertaken by
me is an original and authentic work done by me. This project is being submitted I
partial fulfillment for award of degree of Post Graduate Programmed in
Management from

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

tenure at Reliance Retail Ltd. (sihor) for one months of training from
CONTENTS PAGE NO. Preface
7 Executive summary 8 1 Introduction

1.1 Overview 9-10

1.2 Rational of Study 11
1.3 Retailing Sector 12-18

A) Policy Initiatives 16

B) Road ahead 17-18

1.4 Retail Sector in India 19-39

A) Major players in retail industry 22-23

B) FDI in Indian retail sector 24-25

C) Growth of retail companies in India 26-27

D) Emerging trends in Indian retail sector 28-30

E) Scope of the Indian retail sector 31-33

F) Challenge facing the Indian retail sector 33-36

G) Format in Indian retail sector 37-39

1.5 Reliance Industry Ltd. 40

1.6 Reliance Retail Ltd. 41-45

A) Products of Reliance stores 45

 1.7 Reliance Fresh 46-52

2 Review of Literature 53-54

3 Research Methodologies 55-62

3.1 Objective 55

3.2 Scope 55-56

3.3 Meaning 56

3.4 Research Design 57

3.5 Data collection 58

3.6 Research instrument 58

3.7 Sampling 58

3.8 Sample size 58

3.9 Tools and Technique 58

3.10 Daily Reporting 59

3.11 Store observation report 60

3.12 Questionnaire 61-62

4 Data Analysis 63-68

5 Suggestions 69

6 Limitations 71

7 Bibliographies 72
 PREFACE

The success of the entire business depends on the

satisfaction of the customers. The voice of the customer plays a vital role to
improve the business.

The motivation and the resultant buying behavior assumes

great importance.

We have tried to put our best effort to complete this task on the
basis of skill that we have achieved during our studies in the institute.

We have tried to put our maximum effort to get the accurate

statistical data. However we would appreciate if any mistakes are brought
to us by the reader.
 EXECUTIVE SUMMARY

After getting a lot of knowledge and the experience from the

respected and honored faculty and concern staff, It was the time to use that
knowledge and experience in practical and this opportunity was provided
by the Reliance Retail to me. Reliance Retail gave me the opportunity to do
work on project titled “A project to evaluate customer centricity at Value
Format Stores”.

The main focus of this project was to know about the

customers feedback and to where the need of the improvement. By this
project we tried to know customers satisfaction from our service. If the
customers are not satisfied with our service and due to any reasons than
we try to do the proper improvement to satisfy the customers.

The customers are the only reason why we are in business,

so satisfying them will ultimately make our business more profitable. There
is a need to highlight the importance of a customer service climate in Value
Format Stores. A climate that emphasizes courtesy and competence, and a
work environment that promotes strong working relationship and
empowerment.
OVERVIEW- STUDY OF CUSTOMER CENTRICITY AT
VALUE FORMAT STORE:-

Customers are the very essential part of the every

business. The voice of the customers is playing a vital role in the growth of
the any organization. Customer’s voice gives a right direction of
improvement to the business. By the study of the customer’s centricity we
can know about the perception and need of the customer and we can
mould our operation as per the customers need or demand.

When a customer goes for buying something, there is many

things those influence the decision of customer which type of shop or store
we should go, we go for malls, any exclusive store, company outlets,
general store or departmental store and any common shop etc. And also
these things influence the purchase decision of the customers.

(A)FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR

There are four major factors that influence the buying

behavior such as cultural factors, social factors, personal factors, and
psychological factors.

1. CULTURAL FACTORS:

Culture is the most fundamental determinant of a person’s

needs and behavior. Values, perceptions, preferences, and behavior are
the main variables under culture of an individual. Each culture contains
sub-culture like nationality, religious group, geographical area, and
linguistic divisions etc.
2. SOCIAL FACTORS:

A consumer behavior is also influenced by social factors such as

the consumer reference group family and social roles and status.

3. PERSONAL FACTORS:

A buyer decision is also influenced by his or personal

characteristics, notably the buyers age, lifestyle, occupation,
economic circumstances etc.

4. PSYCHOLOGICAL FACTORS:

A person buying choice is also influenced by four major

psychological factors such as motivation, perception, learning belief
and attitudes.
 VALUE FORMAT STORE:-

With the changing of the time, the customers

perception, preference and lifestyle also changing. In this
busy schedule the peoples are not have enough time to
shopping at different-different places. So customers are
wanting to all the necessary things under a roof with all
facility. These value format stores provide all the necessary
things and facility under a roof. These store provide all
FMCG, Durable, Vases, Garments, Skincare and daily
usages things with in a store with home delivery facility.

RATIONAL OF STUDY

The customers are only reason why we are in business, so

satisfying them will ultimately make our business more profitable. There is
a need to highlight the importance of a customer service climate in value
format stores. Custmers feedback will help us not only identify the problem
areas but will also demonstrate to our customers that we care and are
proactive in looking for ways to improve the service that we provide. This
will give the customers a chance to voice any displeasure or come forward
with truly constructive suggestions that could help our business. The
project helpful to know about the opportunity and threat available in the
market for the business and also help to improve in the present condition.
This study gives me the chance to learn about the consumer behavior.
 RETAIL SECTOR

The Indian retail market, which is the fifth largest retail

destination globally, has been ranked the second most attractive emerging
market for investment after Vietnam in the retail sector by AT Kearney's
seventh annual Global Retail Development Index (GRDI), in 2008. The
share of retail trade in the country's gross domestic product (GDP) was
between 8–10 per cent in 2007. It is currently around 12 per cent, and is
likely to reach 22 per cent by 2010.

India retail industry is the largest industry in India, with an

employment of around 8% and contributing to over 10% of the country's
GDP. Retail industry in India is expected to rise 25% yearly being driven by
strong income growth, changing lifestyles, and favorable demographic
patterns.

It is expected that by 2016 modern retail industry in India will be

worth US$ 175- 200 billion. India retail industry is one of the fastest growing
industries with revenue expected in 2007 to amount US$ 320 billion and is
increasing at a rate of 5% yearly. A further increase of 7-8% is expected in
the industry of retail in India by growth in consumerism in urban areas,
rising incomes, and a steep rise in rural consumption. It has further been
predicted that the retailing industry in India will amount to US$ 21.5 billion
by 2010 from the current size of US$ 7.5 billion.
 Shopping in India have witnessed a revolution with the
change in the consumer buying behavior and the whole format of shopping
also altering. Industry of retail in India which have become modern can be
seen from the fact that there are multi- stored malls, huge shopping
centers, and sprawling complexes which offer food, shopping, and
entertainment all under the same roof.

India retail industry is expanding itself most aggressively, as a

result a great demand for real estate is being created. Indian retailers
preferred means of expansion is to expand to other regions and to increase
the number of their outlets in a city. It is expected that by 2010, India may
have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating

sector and is growing at a rate of 9% annually. The branded food industry
is trying to enter the India retail industry and convert Indian consumers to
branded food. Since at present 60% of the Indian grocery basket consists
of non- branded items.

India retail industry is progressing well and for this to continue

retailers as well as the Indian government will have to make a combined
effort.
 A McKinsey report 'The rise of Indian Consumer Market',
estimates that the Indian consumer market is likely to grow four times by
2025. Commercial real estate services company, CB Richard Ellis' findings
state that India's retail market is currently valued at US$ 511 billion.

Banks, capital goods, engineering, fast moving consumer goods

(FMCG), software services, oil marketing, power, two-wheelers and
telecom companies are leading the sales and profit growth of India Inc in
the fourth quarter of 2008-09. India continues to be among the most
attractive countries for global retailers. At US$ 511 billion in 2008, its retail
market is larger than ever and drawing both global and local retailers.
Foreign direct investment (FDI) inflows as on January 2009, in single-brand
retail trading, stood at approx. US$ 25.18 million, according to the
Department of Industrial Policy and Promotion (DIPP).

India's overall retail sector is expected to rise to US$ 833 billion by

2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate
(CAGR) of 10 per cent. As a democratic country with high growth rates,
consumer spending has risen sharply as the youth population (more than
33 percent of the country is below the age of 15) has seen a significant
increase in its disposable income. Consumer spending rose an impressive
75 per cent in the past four years alone. Also, organized retail, which
accounts for almost 5 per cent of the market, is expected to grow at a
CAGR of 40 per cent from US$ 20 billion in 2007 to US$ 107 billion by
2013.
 India has emerged the third most attractive market
destination for apparel retailers, according to a new study by global
management consulting firm AT Kearney. It further says that in India,
apparel is the second largest retail category, representing 10 per cent of
the US$ 37 billion retail market. It is expected to grow 12-15 per cent per
year. Apparel, along with food and grocery, will lead the organized retailing
in India. India has one of the largest numbers of retail outlets in the world. A
report by Images Retail estimates the number of operational malls to grow
more than two-fold, to cross 412, with 205 million square feet by 2010, and
a further 715 malls to be added by 2015, with major retail developments
even in tier-II and tier-III cities in India.

• Marks & Spencer Reliance India is planning to open 35 more stores

over the next five years, according to Mark Ashman, CEO of the
company. The 51:49 joint venture between UK’s Marks and Spencer
and Reliance Retail Ltd already has 15 stores in India.
• Future Group has been restructured to test the new rules on FDI
under Press Notes 2, 3 and 4 issued in February 2009. The company
plans to bring in up to US$ 148.7 million in foreign investment.
Although FDI is permitted only in single-brand retail and not permitted
in multi-brand retail businesses like Future Group's, the conglomerate
has created two layers of operations to take advantage of the three
Press Notes that allow FDI up to 49 per cent in operating-cum-
investment companies as long as they are owned and controlled by
Indians.
 • Carrefour SA, Europe’s largest retailer, may start wholesale
operations in India by 2010 and plans to set up its first cash-and-carry
outlet in the National Capital Region. Currently, Carrefour exports
goods worth US$ 170 million from India to Europe, UAE, Indonesia,
Europe, Thailand, Singapore and Malaysia.
• Jewellery manufacturer and retailer, Gitanjali Group and MMTC are
jointly setting up a chain of exclusive retail outlets called Shuddi–
Sampurna Vishwas. The joint venture, which plans to open around 60
stores across India by end of this year, will retail hallmarked gold and
diamond jewellery.
• Mahindra Retail, a part of the US$ 6.7-billion Mahindra Group, plans
to invest US$ 19.8 million by 2010 to step up its specialty retail
concept 'Mom and Me'.

Policy Initiatives

100 per cent FDI is allowed in cash-and-carry wholesale

formats. Franchisee arrangements are also permitted in retail trade. 51 per
cent FDI is allowed in single-brand retailing.

Road Ahead

According to industry experts, the next phase of growth is

expected to come from rural markets, with rural India accounting for almost
half of the domestic retail market, valued over US$ 300 billion. Rural India
is set to witness an economic boom, with per capita income having grown
by 50 per cent over the last 10 years, mainly on account of rising
commodity prices and improved productivity.
 According to retail and consumer products division, E&Y India,
basic infrastructure, generation of employment guarantee schemes, better
information services and access to funding are also bringing prosperity to
rural households. The rural market, product design will need to go beyond
ideas like smaller sizes (such as single use sachets) to create genuinely
new products, according to Ramesh Srinivas, national industry director
(consumer markets), KPMG India.

According to the Investment commission of India, the overall retail

market is expected to grow from US$ 262 billion to about US$ 1065 billion
by 2016, with organised retail at US$ 165 billion (approximately 15.5 per
cent of total retail sales). India is expected to be among the top 5 retail
markets in the world in 10 years.

According to new market research report by RNCOS titled,

"Booming Retail Sector in India", organised retail market in India is
expected to reach US$ 50 billion by 2011.

• Number of shopping malls is expected to increase at a CAGR of

more than 18.9 per cent from 2007 to 2015.
• Rural market is projected to dominate the retail industry landscape in
India by 2012 with total market share of above 50 per cent.
• Organised retailing of mobile handset and accessories is expected to
reach close to US$ 990 million by 2010.
• Driven by the expanding retail market, third party logistic market is
forecasted to reach US$ 20 billion by 2011.
 RETAIL SECTOR IN INDIA

Retail and real estate are the two booming sectors of India in
the present times. And if industry experts are to be believed, the prospects
of both the sectors are mutually dependent on each other. Retail, one of
India’s largest industries, has presently emerged as one of the most
dynamic and fast paced industries of our times with several players
entering the market. Accounting for over 10 per cent of the country’s GDP
and around eight per cent of the employment retailing in India is gradually
inching its way toward becoming the next boom industry.

As the contemporary retail sector in India is reflected in sprawling

shopping centers, multiplex- malls and huge complexes offer shopping,
entertainment and food all under one roof, the concept of shopping has
altered in terms of format and consumer buying behavior, ushering in a
revolution in shopping in India. This has also contributed to large scale
investments in the real estate sector with major national and global players
investing in developing the infrastructure and construction of the retailing
business. The trends that are driving the growth of the retail sector in India
are

• Low share of organized retailing

• Falling real estate prices
• Increase in disposable income and customer aspiration
• Increase in expenditure for luxury items
 Another credible factor in
the prospects of the retail
sector in India is the increase in
the young working population.
In India, hefty pay-packets,
nuclear families in urban areas,
along with increasing working-women population and emerging
opportunities in the services sector. These key factors have been the
growth drivers of the organized retail sector in India which now boast of
retailing almost all the preferences of life - Apparel & Accessories,
Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products,
Travel and Leisure and many more. With this the retail sector in India is
witnessing a rejuvenation as traditional markets make way for new formats
such as departmental stores, hypermarkets, supermarkets and specialty
stores.

The retailing configuration in India is fast developing as shopping

malls are increasingly becoming familiar in large cities. When it comes to
development of retail space specially the malls, the Tier II cities are no
longer behind in the race. If development plans till 2007 is studied it shows
the projection of 220 shopping malls, with 139 malls in metros and the
remaining 81 in the Tier II cities. The government of states like Delhi and
National Capital Region (NCR) are very upbeat about permitting the use of
land for commercial development thus increasing the availability of land for
retail space; thus making NCR render to 50% of the malls in India.

India is being seen as a

potential goldmine for retail
investors from over the world and latest research has rated India as the top
destination for retailers for an attractive emerging retail market. India’s vast
middle class and its almost untapped retail industry are key attractions for
global retail giants wanting to enter newer markets. Even though India has
well over 5 million retail outlets, the country sorely lacks anything that can
resemble a retailing industry in the modern sense of the term. This
presents international retailing specialists with a great opportunity. The
organized retail sector is expected to grow stronger than GDP growth in the
next five years driven by changing lifestyles, burgeoning income and
favorable demographic outline.

Another cap to the retailing industry in India is allowing 51% FDI

in single brand outlet. The government is now set to initiate a second wave
of reforms in the segment by liberalizing investment norms further. This will
not only favor the retail sector develop in terms of design concept,
construction quality and providing modern amenities but will also help in
creating a consumer-friendly environment. Retail industry in India is at the
crossroads but the future of the consumer markets is promising as the
market is growing, government policies are becoming more favorable and
emerging technologies are facilitating operations in India. And this upsurge
in the retail industry has made India a promising destination for retail
investors and at the same time has impelled investments in the real estate
sector.

Major Players in Retail Industry

India is now emerging as a hot spot for global retail chains.

India, which held top spot on Global Retail Development Index (GRDI), an
annual study of retail investment attractiveness among 30 emerging
markets conducted by management consulting firm A.T. Kearney, has
yielded its numero uno position in 2008 to Vietnam– among the fastest
growing economies in the South East Asia. In 2007, Vietnam was ranked
fourth on the index. World’s largest retail chain wal-mart is all set to launch.

List of current retail player’s in the market is quite long but

following retail chains can be considered to dominate a large portion of
Indian organized retail sector.

Big Bazaar, Pantaloons, Shopper's Stop, Spencer’s, reliance,

Central, Fabmall, Akbarally's ,Family Mart, Food world, Home Stop,
Hyper Mart, Lifestyle International, Marks & Spencer, Spinach,
Subhiksha,Vishal Mega Mart, Westside, Big Apple, Sahara
unique(shop for Trend) and 6 ten retail store .

COMPANIES IN INDIAN RETAIL SECTOR

S. Companies
NO.
1. Reliance Retail
2. Aditya Birla Group
3. Future Group’s
4. Pantaloons Retail India Ltd.
5. Bata India Ltd.
6. Shoppers Stop
7. Music World Entertainment Ltd.

FDI in Retail Sector

 Retailing is the largest private sector industry in the world
economy with the global industry size exceeding $6.6 trillion and a latest
survey has projected India as the top destination for retail investors. And
the further upsurge is anticipated in the retail sector as the Government of
opened up 51% FDI in single brand retail outlets. And as the government is
in a process to initiate a second phase of reforms, it is cautiously exploring
the avenues for multi-brand segment. The Government is seeking for these
options keeping in view the existing social framework of India and the will
ensure that the entry of global retail giants do not displace the existing
employment in the retail business.

Industry experts are sensitive to the point that local markets

have an edge over the retail investors in India as they have unique
advantages such as an understanding of local needs and extended service
like home delivery. As the FDI influence on the Indian retail sector sets in,
the total size of the retail trade is expected to grow extensively in the
coming years and the consumer segments patronizing the big malls will
create frenzy for organized retailing predicting a growth of 25-30 per cent
per annum over the next decade. Moreover, Indian retail chains would get
integrated with global supply chains since FDI will bring in technology,
quality standards and marketing thereby, leading to new economic
opportunities and creating more employment generation.

Industry trends for retail sector indicate that organized retailing

has major impact in controlling inflation because large organized retailers
are able to buy directly from producers at most competitive prices. World
Bank attributes the opening of the retail sector to FDI to be beneficial for
India in terms of price and availability of products as it would give a boost to
food products, textiles and garments, leather products, etc., to benefit from
large-scale procurement by international chains; in turn, creating jobs
opportunities at various levels.

As foreign investors exploring their potentials in the retail sector,

are keen on developing malls in India, the size of organized retailing is
expected to touch $30 billion by 2010 or approximately 10 per cent of the
total. This has initiated market-entry announcement from some retailers
and has signaled to international retailers about India’s seriousness in
promoting the sector. While there are reports of international retailers like
Wal-Mart analyzing business opportunities in India; Reliance, the largest
Indian conglomerate is investing $3.4 billion to become India’s largest
contemporary retailer. There are also reports of investments for ‘Hypercity
Retail’ by K.Raheja Group to establish 55 hypermarkets by 2015. All these
factors will contribute in taking Indian retail business to unexpected growth
based on the consumer preference for shopping in congenial environs and
also availability of quality real estate.

Growth of Retail Companies in India exhibits the boom in the

retail industry in India over the years. The increase in the purchasing power
of the Indian middle classes and the influx of the foreign investments have
been encouraging in the Growth of Retail Companies in India.

1.Growth of Retail Companies in India

 Growth of Retail Companies in India is still not yet in a matured
stage with great potentials within this sector still to be explored. Apart from
the retail company like Nilgiri's of Bangalore, most of the retail companies
are sections of other industries that have stepped in the retail sector for a
better business. The Growth of Retail Companies in India is most
pronounced in the metro cities of India, however the smaller towns are also
not lagging behind in this. The retail companies are not only targeting the
four metros in India but also is considering the second graded upcoming
cities like Ahmedabad, Baroda, Chandigarh, Coimbatore, Cochin,
Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and others. The South
Indian zone have adopted the process of shopping in the supermarkets for
their daily requirements and this has also been influencing other cities as
well where many hypermarkets are coming up day to day.

2.Reasons for the fast Growth of Retail Companies in India

The retail companies are found to be rising in India at a
remarkable speed with the years and this have brought a revolutionary
change in the shopping attitude of the Indian customers. The Growth of
Retail Companies in India is facilitated by certain factors like -

· existing Indian middle classes with an increased purchasing power

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

· change in the taste and attitude of the Indians

· effect of globalization

· heavy influx of FDI in the retail sectors in India

EMERGINE TRENDS IN INDIAN ORGANIZED RETAIL

SECTOR:-

The emerging trends in the Indian organized retail sector would

help the economic growth in India.

There is a fantastic rise in the Indian organized retail sector in a

very short period of time between 2001 and 2006. Eventually, out of the
shadows of the unorganized retail sector, India has a chance of
tremendous economic growth, both in India and abroad.
 The emerging trends in the Indian organized retail sector are
also adding up to the development of the Indian organized retail sector.
The relaxation by the government on regulatory controls on foreign direct
investments has added to the process of the growth of the Indian
organized retail sector.

The infrastructure of the retail sector will evolve radically in the

recent future. The emergence of shopping malls are increasing at a
steady pace in the metros and there are further plans of expansion which
would lead to 150 new ones coming up in India by 2008. As the count of
super markets is going up much faster than rate of growth in retail sector,
it is taking the lions share in food trade.

The growth of the Indian organized retail sector is anticipated

to be heavier than the growth of the gross domestic product. Alterations
in people's lifestyle, growth in income levels, and encouraging
conventions of demography are proving favorable for the new emerging
trends in the Indian organized retail sector.
The success of this retail sector would also lie in the degree of
penetration into the lower income strata to tap the possible customers in
the lowest levels of society. The demands of the buyers would also be
enhanced by more access to credit facilities.
With the arrival of the Transnational Companies (TNC), the Indian
retail sector will undergo a transformation. At present the Foreign Direct
Investments(FDI) is not encouraged in the Indian organized retail
sector but once the TNC'S get in they inevitably try to oust their Indian
counterparts. This would be challenging to the retail sector in India.

The trends to follow in the future:

• The Indian Organized retail sector will grow up to 10% of total

retailing by 2010.

• No one single format can be assumed as there is a huge difference

in cultures regionally.

• The most encouraging format now would be the hypermarts.

• The hypermart format would be further encouraged with the entry

of the TNCs.

SCOPE OF THE INDIAN RETAIL MARKET

The scope of the Indian retail market is immense for this sector is
poised for the highest growth in the next 5 years. The India retail industry
contributes 10% of the country’s GDP and its current growth rate is 8.5%.
In the Indian retail market the scope for growth can be seen from the fact
that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394
billion in 2005.

The organized retailing sector in India is only 3% and is expected

to rise to 25- 30% by the year 2010. There are under construction at
present around 325 departmental stores, 300 new malls, and 1500
supermarkets. This proves that there is a tremendous scope for growth in
the Indian retail market. SS

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

the change in the consumers behavior. For the new generation have
preference towards luxury commodities which have been due to the
strong increase in income, changing lifestyle, and demographic patterns
which are favorable.

The scope of the Indian retail market have been seen by many
retail giants and thats the reason that many new players are entering the
India retail industry. The major Indian retailers are:

• Pantaloons Retail India Ltd

• Shoppers Stop
• Bata India Ltd
• Music World Entertainment Ltd.

Judging the scope for growth in the India retail industry many
global retail giants are also entering the Indian retail market. They are :

• Tesco
• Metro AG
• Wal- Mart

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

• Mumbai
• Delhi
• Pune
• Ahmedabad
• Bangalore
• Hyderabad
• Kolkata
• Chennai

• The scope of the Indian retail market is very vast. And for it to
reach its full potential the government and the Indian retailers will
have to make a determined effort.

CHALLENGS FACING THE INDIAN ORGANIZED

RETAIL SECTOR
 The challenges facing the Indian organized retail sector are
various and these are stopping the Indian retail industry from reaching its
full potential. The behavior pattern of the Indian consumer have
undergone a major change. This have happened for the Indian consumer
is earning more now, western influences, women working force is
increasing, desire for luxury items and better quality. He now wants to eat,
shop, and get entertained under the same roof. All these have lead the
Indian organized retail sector to give more in order to satisfy the Indian
customer.

The biggest challenge facing the Indian organized retail sector is

the lack of retail space. With real estate prices escalating due to increase
in demand from the Indian organized retail sector, it is posing a challenge
to its growth. With Indian retailers having to shell out more for retail space
it is effecting their overall profitability in retail.

Trained manpower shortage is a challenge facing the organized

retail sector in India. The Indian retailers have difficulty in finding trained
person and also have to pay more in order to retain them. This again
brings down the Indian retailers profit levels.

The Indian government have allowed 51% foreign direct

investment (FDI) in the India retail sector to one brand shops only. This
have made the entry of global retail giants to organized retail sector in
India difficult. This is a challenge being faced by the Indian organized
retail sector. But the global retail giants like Tesco, Wal-Mart, and Metro
AG are entering the organized retail sector in India indirectly through
franchisee agreement and cash and carry wholesale trading. Many Indian
companies are also entering the Indian organized retail sector like
Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they
are facing stiff competition from these global retail giants. As a result
discounting is becoming an accepted practice. This too bring down the
profit of the Indian retailers. All these are posing as challenges facing the
Indian organized retail sector.

.The Hidden Challenges

Modern retailing is all about directly having "first hand

experience" with customers, giving them such a satiable experience that
they would like to enjoy again and again. Providing great experience to
customers can easily be said than done. Thus, challenges like retail
differentiation, merchandising mix, supply chain management and
competition from supplier's brands are the talk of the day. In India, as we
are moving to the next phase of retail development, each endeavor to
offer experiential shopping. One of the key observations by customers is
that it is very difficult to find the uniqueness of retail stores. The problem:
retail differentiation.

The next problem in setting up organized retail operations is that

of supply chain logistics. India lacks a strong supply chain when
compared to Europe or the USA. The existing supply chain has too many
intermediaries: Typical supply chain looks like:- Manufacturer - National
distributor - Regional distributor - Local wholesaler - Retailer - Consumer.
This implies that global retail chains will have to build a supply chain
network from scratch. This might run foul with the existing supply chain
operators. In addition to fragmented supply chain, the trucking and
transportation system is antiquated. The concept of container trucks,
automated warehousing is yet to take root in India. The result: significant
losses/damages during shipping.

Merchandising planning is one of the biggest

challenges that any multi store retailer faces. Getting the right mix of
product, which is store specific across organization, is a combination of

customer insight, allocation and assortment techniques.

The private label will continue to compete with brand

leaders. So supplier's brand will take their own way because they have a
established brand image from last decades and the reasons can be
attributed to better customer experience, value vs. price, aspiration,
innovation, accessibility of supplier's brand.
 FORMATS IN INDIAN ORGANIZED RETAIL SECTOR

This site provides detail information on Formats in Indian Organized

Retail Sector. The site also focuses on the current structure of Indian retail
industry.

Formats in Indian Organized Retail Sector and its subsequent

successful operation is credited to India Economic System reform earnest
in July 1991. Formats in Indian Organized Retail Sector is at its nascent
stage. The Central Government have ultimately realized the need to
remove the insulation out of the Indian retail sector. Skeptics opines
opening up Indian retail industry would jeopardize way of income for the
poor small retailers. In fact, the actual story is quite heartening for the small
time retailer and its vendors.

• It is the second fastest growing economy of the world

• Potential to be the third largest economy in terms of GDP in next few
years
• It ranks high amongst the top 10 FDI destinations of the world
• Fastest growing tourist market in Asia
• World bank states, India to be world’s second largest economy after
China by the year 2050

• Stable and investor friendly Central Government at the helm of affairs

 • Introduction of Value Added Tax or VAT and tax reforms
• High degree of professionalism and corporate ethics
• Excellent Investment opportunities in Indian retail sector and in allied
sectors; sure and high returns on investments
• To invest US $130 billion for the development of infrastructure, by
year 2010
• To attract US $ 10 billion FDI for infrastructure development by the
end of year 2008
• Bullish stock markets
• Hordes of foreign investors are thronging in to invest in Indian retail
markets
• Highly educated English speaking young workforce
• Vibrant and multi cultured cities
• Huge opportunity exists, especially in semi-rural and rural areas
• Till date the second largest employer after agriculture sector, for the
huge semi-skilled Indian population
• Offers highest shop density in the whole world
• Having almost 1,20,000 shops, across the length and breadth of the
country
• In a nascent stage of development as an organized industry

Formats in Indian Organized Retail Sector -

• Supermarkets
• Hypermarkets
• Department Stores
• Modern format individual retailers
• Shopping malls
 INTRODUCTOIN OF RELIACE INDUSTARY :-
Reliance Industries Limited (RIL) is India’s largest private
sector company on all major financial parameters with a turnover of Rs.
1,39,269 crore (US$ 34.7 billion), cash profit of Rs. 25,205 crore (US$
6.3 billion), net profit (excluding exceptional income) of Rs. 15,261 crore
(US$ 3.8 billion) and net worth of Rs. 81,449 crore (US$ 20.3 billion) as
of March 31, 2008.

RIL is the first private sector company from India to feature in

the Fortune Global 500 list of ‘World’s Largest Corporations’ and ranks
103rd amongst the world’s Top 200 companies in terms of profits. RIL is
amongst the 30 fastest climbers ranked by Fortune. RIL features in the
Forbes Global list of the world’s 400 best big companies and in the FT
Global 500 list of the world’s largest companies. RIL ranks amongst the
‘Worlds 25 Most Innovative Companies’ as per a list compiled by the US
financial publication-Business Week in collaboration with the Boston
Consulting Group.

RELIANCE RETAIL LIMITED:-

 Reliance Retail Limited (RRL), a subsidiary of Reliance
Industries Limited opened its first retail store in November 2006 and
today operates over 800 stores in 60 cities, spanning 14 states with over
3.8 million Sq ft. RRL is a multi-format retailer that operates Reliance
Fresh – a neighborhood store concept, Reliance Digital – a consumer
durables and information technology concept, Reliance Mart - a hyper
market concept, Reliance Trends - an apparel specialty concept,
Reliance Wellness – a health, wellness & beauty concept , iStore by
Reliance Digital- an Apple specialty store concept, Reliance Footprint -a
footwear concept, Reliance Jewels – a jewellery concept, Reliance Time-
Out- a books, music & entertainment concept, Reliance Super- a
Minimart concept, Reliance Living Homeware – a household utilities
specialty store concept, Reliance Home Kitchen, a kitchen’s solution
specialty store format and Reliance AutoZone – an automotive specialty
concept.

Reliance is gearing up to revolutionize the retailing industry

in India. Towards this end, we are aggressively working on introducing a
pan-India network of retail outlets in multiple formats. A world class
shopping environment, state of art technology, a seamless supply chain
infrastructure, a host of unique value-added services and above all,
unmatched customer
Experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size

and spread and make India proud. Ensuring better returns to Indian
farmers and manufacturers and greater value for the Indian consumer,
both in quality and quantity, will be an integral feature of this project. By
creating value at all levels, we will actively endeavor to contribute to
India's growth.

The project will boast of a seamless supply chain

infrastructure, unprecedented even by world standards. Through multiple
formats and a wide range of categories, Reliance is aiming to touch
almost every Indian customer and supplier.

To provide western-style retail facility “Reliance Mart” will sell a

range of 95,000 types of items includes consumer durable products
(clothing, stationery, toys, medicines, home furnishings, footwear etc),
FMCG, IT, automotive accessories, apparel accessories, fine jewelry and
fashion jewelry under one roof. For this Reliance will set up a series of
500 hypermarkets across the country by 2010 while the recent next
hypermarket will be established in Jamnagar in Gujarat and in the NCR
by next month with a planning to open 30 such marts by the end of this
year includes six in National Capital Delhi, five each in Punjab and
Andhra Pradesh, three in Gujarat and two in Bangalore, informed RIL
president and CEO (Operation and Strategy) Raghu Pillai on the
occasion of first hypermarket in Ahmedabad on Monday.

They will be better than the best in the market. We would

ensure that our products would be cheapest on the consumers wallet
and would match the lowest price in the market with the best quality as
benchmark”, said Pillai. Reliance has set up the first hypermarket in
1,65,000 sq ft area worth Rs. 4.25 crore approximately for selling
groceries to general merchandising in Reliance Mart.

Reliance had announced last year to invest Rs. 25,000 crore

in its retail store and expected to spend Rs. 2,500-3,000 per square fit for
establishing 500 hypermarkets in 784 towns by next five years. Since
then Reliance has been looking for deserving lands across the country to
fulfill its dream project.

Mukesh Ambani, the Chairman and Managing Director of

Reliance Mukesh Dhirubhai Group said, “Organized retail has the
potential to trigger socio-economic transformation on an unprecedented
scale in our country and will bring about enormous spin-off benefits to the
Indian economy and its various constituents. The launch of ‘Reliance
Mart’ is yet another step by Reliance Retail towards providing an
international shopping experience to all our customers at unmatched
affordability, guaranteed quality and choice of products and services”. He
was speaking on inauguration ceremony of first ever hypermarket in
Ahmadabad.

Vimal, a well-known fabric brand of Reliance Industries Ltd.

will also relaunch its products that will have a store within its
hypermarkets and will offer custom-tailoring services, said Parimal
Nathwani, the Group President of Corporate Affairs.

Besides this, Reliance Retail is building a vigorous and state-

of-the-art supply chain infrastructure in parallel to cover the entire country
along with setting up its own cold storage chain discretely. “It is expected
to generate direct employment for half-a-million people and indirect
employment to two million”, said Pillai.

To woo the customers, Reliance Mart will keep on offering

versatile offers to all its customers such as ‘Reliance One’, a common
membership and loyalty programme across all its formats, which follows
the philosophy of 'Earn Anywhere, Spend Anywhere'. ‘Reliance Mart’ will
also provide easy and attractive finance options, including zero percent
financing for the purchases on some selected products.

PRODUCTS OF RELIANCE STORES

1.FMCG

Reliance Atta,Reliance premium white sugar, Reliance sugar fese

store ,Reliance flour (basen),Reliance dry fruits, Reliance grocery,
Reliance whole wheat, Reliance long grain rice, Reliance wheat
lokvan,Reliance Iodized Salt, Reliance Pulses (like moong, arhad, rajma
etc)

2.Garments

Reliance Men’s Wear, Reliance Women’s Wear, Reliance

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

3.Foot Wear

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

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

RELIANCE FRESH
 Company Overview: Reliance Fresh
•

Date of Establishment 2006

Revenue Not Available
Market Cap Rs.370,687.7crores
(Reliance Industries Ltd.)

Address Reliance Industries Limited, Makers

Chambers - IV, Nariman Point, Mumbai
400 021, Maharashtra, India
Branches Chennai, Sihor, Hyderabad, Jaipur,
Mumbai, Chandigarh, Ludhiana, Orissa,
UP and West Bengal
Management Team Mukesh D. Ambani - Chairman & Managing
Director
Nikhil R. Meswani - Executive Director
Hital R. Meswani - Executive Director
H.S.Kohli- ExecutiveDirector
RamniklalH.Ambani
MansinghL.Bhakta
YogendraP.Trivedi
Dr.D.V.Kapur
M.P.Modi
S.Venkitaramanan
 Reliance Fresh falls under Reliance Industries. It is the first
retail venture of the Group. The company offers fresh fruits and
vegetables, staples, groceries, fresh juice bars, FMCG products and
dairy products and non-vegetarian items. Reliance Industries has
invested nearly Rs. 3,000 crores to expand the Reliance Fresh stores.
Reliance Fresh directly buys stock from the farmers to cut down on the
wastage. The stores work on The Ranger Format which means selling of
fresh vegetables to the road sellers. Reliance Retail has signed a pact
with Apple for the establishment of a chain of Apple Specialty Stores
branded as iStore, starting with Bangalore.

Mukesh Ambani’s Reliance Industries Ltd has launched

Reliance Fresh, its first retail venture in Hyderabad. RIL is planning to
launch 11 more retail stores in the city. You can find fresh fruits,
vegetables dal, atta, rice as well the company’s in-house products too.

RIL is in planning to set up Ranger Farms outlets to serve

fresh vegetables too in the streetside.

It will open from 2 am to 9 am. Delhi and Mumbai are the next
destination for the company’s new venture. RIL has already announced
to invest Rs 25,000 crore over the next five years in the retail business
with its 4,000 retail outlets in different cities.

The next venture in retail will be Feel Fresh Plus in which

customers could find fruits and vegetables as well as apparel, consumer
electronics, FMCG items and medicines too.

According to Retail consultancy Technopak Advisors, the size of

India’s retail industry is about $300 billion and it will go to $427 billion by
the end of 2010.

Hyderabad on Friday saw the new dawn of a new revolution.

Reliance Industries Ltd?s dreams of a retail revolution got kick-started in
the Andhra Pradesh capital when its Reliance Fresh supermart opened
its doors to the world. And, several hundred customers flocked to try out
what all are on offer on the first day.

The inauguration event saw customers cut red ribbons to open the store
widely believed as Reliance Industries Ltd?s first in the series of several
thousand stores that are to come. Following the first, the company
opened 10 more on Friday as a first step towards creating a mega retail
chain across the country.

The Reliance Fresh supermarket chain is RIL?s Rs 25,000 crore

venture and it plans to add more stores across different geographies,
and eventually have a pan-India footprint by year 2011.
The super marts will sell fresh fruits and vegetables, staples,
groceries, fresh juice bars and dairy products and also will sport a
separate enclosure and supply-chain for non-vegetarian products.

Currently, selling through company-owned stores currently totals

just $8 billion in India. Industry estimates say that the country?s retail
industry is worth $300 billion, that is about Rs 13,50,000 crore. This
stands a chance to blossom to $427 billion in the next four years.
 Organized retail accounts for just over Rs 35,000 crore. Reliance Fresh
bids to tap the potential for organised retail in the country.

The opening of Reliance retail chains closely follows the moves of

global players like Wal-Mart Stores Inc and Metro AG seeking to open
shop here in the country. With Reliance announcing plans to expand,
and that too rapidly, the retail scenario in the country is all set to take off
in a big way.

REVIEW OF LITERATURE

Customers are the very essential for the each and every
organization. To make the new customers and retain the customers these
organization do different-different type of research. On the base of this
research these companies got the feedback of the customers and make the
proper improvement as per the customer needs.

Indian retail market is very vast and it growing with very

rapid speed. India retail industry is the largest industry in India, with an
employment of around 8% and contributing to over 10% of the country's
GDP. Retail industry in India is expected to rise 25% yearly being driven by
strong incom growth, changing lifestyles.
 It is expected that by 2016 modern retail industry in India
will be worth US$ 175- 200 billion. India retail industry is one of the fastest
growing industries with revenue expected in 2007 to amount US$ 320
billion and is increasing at a rate of 5% yearly.

To grape all these opportunity presented by the retail sector, all

the organization related to this sector attract towards this and want to
increase their market share with the growth of retail industry. For this these
organization do research related to the customer behavior, customer
centricity at value format store and post purchase behavior of the
customers. Also try to know the total shopping experience of the customers
with the organization.

On the base of this research the organization make the proper

improvement on their retail outlets as per the customers need and demand.
This research also helpful to monitor and measure the customers need and
perception. So the voices of the customers are very essential for the
business.

With the change of the time the way of retailing also changes. In
old time the format of retailing was traditional like, general store,
departmental store and stall etc. They were rarely did any research to know
about their customers need and perception. But now the trend is changing
and the many big brand name companies enter in this business like
Reliance Retail, Pantaloons Retail India Ltd., Aditya Birla Group, Bata India
Ltd., Shoppers Stop, Music World Entertainment Ltd. etc. These companies
want to capture more market share and increase their range of the
customers, so these companies time to time do the research related to the
customer’s behavior and centricity at value format store.

IN RELIANCE RETAIL LTD.

Reliance Retail is one of the big and branded retail company in

the India. It has speared there business in all over India. To improve their
operation and satisfy their customers Reliance introduce with new concepts
and projects. Operation “NAMESTA” is the part of this concept.

RESEARCH METHODOLOGY

OBJECTIVE

The main objective of this project is to take the customers

feedback through a questioner and use this feedback to do the proper
improvement in the stores as per the customers wants.
 1. To interact with the customers and document the feedback in
prescribed format.

2. To know the additional comments or suggestion of the

customers.

3. TO make the improvement on the base of the customers

feedback and suggestions.

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

about the value format stores.

5. This study helps me

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

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

8. 3. To know about the consumers behavior.

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

customer demand

Meaning:

Research Methodology is a way to systematically study & solve

the research problems. He must clearly state the methodology adopted in
conducting the research so that it may be judged by the reader whether the
methodology of work done is sound or not.
Research in common parlance refers to a search for knowledge. It is a
scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation. It is often referred as
voyage for discovery.

Research methodology is a way to systematically solve the

research problem. It is a science of studying how research is done
scientifically. In it, we study the various steps that are generally adopted by
a researcher in studying a research problem along with the logic behind
them .when we talk of research methodology, we not only talk of research
methods but also consider the logic behind the methods we use in context
of our research study and explain why we are using a particular method or
technique

Research Design

Research design is the arrangement of conditions for collection

and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure. Keeping in mind the
objective of the study the research design kept is exploratory. It allows the
study of specific concerns and theory. The researcher will be consulted
various magazines, newspapers, books, and reference materials, based on
which a pre test was conducted. A pre test is essential to have an idea of
the most preferred brand in the urban market based on which the final
questionnaire will be prepared.

The research will be carried out by collection of data through

interviews conducted at the personal interview. To meet the required
objectives the instrument will be used for collecting data was questionnaire
method. Questionnaire is defined as a general term to include all
techniques of data collection in which each person is asked to respond to
the same set of questions in a predetermined order.

Data Collection

Primary Data will be collected through structured questionnaire. Secondary

data sources such as use of the books, research journals, websites and
commercial reports published by well-known authors in the similar area
have been analyzed. However, these are the only important secondary
sources that were found to be of any relevance to the research area.

Research Instrument: - Questionnaire and Personal Interview

Sampling

• Simple random sampling

Sample Size

• 550 customers

Tools and Techniques

• Word, Excel
 Store Observation Report – OPERATION NAMASTE

Name of the Trainee:

For the Day:

Store-1 Store-2
Name/Code Name/Code
Store Cleanliness

Entrance

Grooming and Service

Total Score
Any other comments

Reliance Retail Customer Service Questionnaire

Store Name/Code:

Date:

Name of the Trainee:

1) How often do you visit the store?

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

2) What brings to you the store?

a) Price and Promotion b) Service c) Quality

d) Convenience e) Other …………….

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

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

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

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

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

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

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

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

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

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

11) Any specific observation/suggestions you like to share

something with us

……………………………………………………………………………………
………………………………………………………………

12) Your overall shopping experience with Reliance

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

Name and signature of the customer Contact No.

Male/Female

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

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

DATA ANALYSIS AND FINDINGS

1) How often do you visit the store?

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

2) What brings to you the store?

b) Price and Promotion b) Service c) Quality

d) Convenience e) Other …………….

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

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

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

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

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

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

1- Strongly Agree 2- Agree 3- Disagree 4- Strongly 5- Disagree

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

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

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

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

10) How much time did you spend in queue for billing…..Minutes
11) Your overall shopping experience with Reliance

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

 SUGGESTIONS

On the base of the project we got the lot of suggestion from the
customer’s side and lot of suggestion and observation we observe during
the project time.

According to the project, Reliance Fresh have the need of

improvement into their store. Customers want to more facility in the store
with good service and affordable price. According to the customers
Reliance should have to ensure the timely availability of the product or
items in the store and also increase the number of variety of the various
items specially skincare and cosmetics products. Offer should be available
with the costly items and some discount allow to their regular customers.
The price of the some products should be less than the local market price
or some additional offer available. Particular task distribute to the particular
employee of the store and increase the no. of cash counter and cashier
also. Display the list of the available items on the each counter, this is
helpful for the customers in time saving and make the proper display of the
all items. These are the some suggestion/observation that will be good for
Reliance Fresh to improve their operation.

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

 Reliance should be available the items in the store those are affordable
for the lower middle class also.

 For the quantity and price sensitive customers reliance should provide
the some price discount and extra quantity offers also.

 For the female customers reliance promote itself as a family woman

store.
 LIMITATIONS

We have to interact only 8-10 customers daily.

Customers are not ready to give the feedback.

Some time customers not have enough time to give the

feedback.

Some time customers are uneducated so they do not

understand what we are asking.
 BIBLIOGRAPHY

WEB: - a) www.google.com

1.
BOOKS: - Marketing Management, Twelfth Edition. A South
Asian Perspective, by Philip Kotler, K.L.Keller, A.Koshy,
M.Jha.

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

3. Marketing Management, Third Edition by Ranjan Saxena

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