Reliance Fresh Project Reports

“CONSUMER PERCEPTION AND THEIR BUYING BEHAVIOUR TOWARDS “RELIANCE FRESH” SUPERMARKETS NEW DELHI, INDIA. ” Chapter 1: Introduction Reliance Retail: Retailing is the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers.

A retailer is one who stocks the producer’s goods and is involved in the act of selling it to the individual consumer, at a margin of profit.

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As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. The retail industry in India is of late often being hailed as one of the sunrise sectors in the economy. The Indian retail industry is now beginning to evolve in the line with the transformation that has swept other large economies. It witness tremendous growth with the changing demographics and an improvement in the quality of life of urban people.

The growing affluence of India’s consuming class, the emergence of the new breed of entrepreneurs and a flood of important products in the food and grocery store, has driven the current retail boom in the domestic market.

(Jhamb & Khiran, 2012) AT Kearney, the well-known international management consultancy, recently identified India as the ‘first most attractive retail destination’ globally from among thirty emergent markets. It has made India the cause of a good deal of excitement and the cynosure of many foreign and domestic eyes.

The entry of foreign and Indian retail giants like Wal-Mart, Metro, Reliance, Birla, Tata etc. made Indian market more competitive which is at cut throat level. So how retailers can reach to their end customers, to win the mind share and increase the basket size of each shopping trip.

(Jhamb ; Khiran, 2012) 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. The growth of scope in the Indian retail market is mainly due to the change in the consumer’s behaviour. 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 favourable. Huangyuarong (2011).

As the twentieth century has come to and we have moved in to third millennium , we can see many development and changes taking place around us with all the industries and firms within each industry trying to keep pace with all the industries and firm within each industries trying to keep pace with the changes and diverse need of people .

Marketer have regarded “customer” as the king and evolved all activities to satisfy him or her, this concept gaining more momentum and importance today. More than a century ago, the father of our nation, Mahatma Gandhi, had made visionary and deep meaningful statement at Johannesburg, South Africa in 1980.

A customer is the most important visitor of our premises. He is not dependent on us . We are dependent on him He is not interruption on our work.

He is the purpose of it and not an outsider on our premises. He is a part of it. We are not doing him favour by serving him. (AnithaJulius, 2013) Today the entire firm engaged in a process of creating a life time value and relationship with customers. This report start with discussion on the diversity of consumer behaviour and the need for studying consumer buying behaviour and consumer as a related field of marketing .

This can be largely be attributed to the prevailing market situation . Today the company image is built and made known by its customers. Thus success of the firm determined how effective it has been in meeting the diverse consumer need and wants by treating each customer as unique and offering products and services to suit has or her need. (Gupta, 2011) Consumer buying behaviour will be a primary force in determining how this transition will 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 organizations across the supply chain to work as a single enterprise, sensing and responding rapidly to consumer demand in a co-ordinate manner.

Detailed analysis of the changing patterns of consumer demand, shopping trends. (Gupta, 2011) 1. 1. Background: We can see many examples of businesses where, first we grow and then think of expanding but Reliance is quite different. Reliance has developed such huge amount of resources and capital over the years that whenever it steps into any segment it is not required to wait for growing signal, that’s why it always thinks of expanding without any boundaries.

Reliance retail is next Step by RIL which will be a pan India project. (“reliance fresh information,” 2012) Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country.

The Reliance Fresh supermarket chain is RIL’s Rs 25,000 crore venture and it plans to add more stores and eventually have a pan-India footprint by year 2011.

The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. “reliance fresh information,” 2012) The company is planning on opening new stores with store-size varying from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products and dairy products. Each store is said to be within a radius of 1-2 km of each other, in relation to the concept of a neighbour store. In a dramatic change due circumstances prevailing in UP, West Bengal and Orissa, It was mentioned recently in News Dailies that, Reliance Retail is moving out stocking.

Reliance Retail has decided to minimize its exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super market focusing on categories like food, FMCG, home, consumer durables, IT, wellness and auto accessories, with food accounting for the bulk of the business.

(“reliance fresh information,” 2012) 1. 2. Reason for study: An intention of this study to clarify and understand the behavior and perception of consumer towards Reliance Fresh and how it impact on today’s retail marketing at New Delhi. 1. 3.

Statement of problem:

Food and grocery retail sector is one of the fastest growing industries, yet the nature of shopping behavior has not been studied in-depth. This has created a need to identify the aspects influencing these behavior and the patterns that will be followed. Lately, many new retail formats have introduced in New Delhi hence it is crucial for retail stores to understand consumer buying behavior along with their preferred store choice. 1. 4.

Research Objective: I. To study consumer buying behavior and their perception at Reliance Fresh customers of New Delhi. II. Too examine the influence of demographic factors on retail purchase behavior.


Evaluate the consumer trends and their perception towards the new shopping style. 1. 5. Major Research Questions: What are the major factors influencing consumer buying behavior and their buying decision process at Reliance Fresh New Delhi? 1. 6.

Assumption: The attitude, perception, and behavior may be different to buy in supermarkets of New Delhi. Reliance fresh should encourage their image, consumer perception, consumer purchasing decision criteria and also should maintain their service quality to make more consumers satisfaction. 1. 7. Scope of the study:

The scope of this study focus on consumer behavior and perception on Reliance fresh retail New Delhi which is already established all over in India. But in Delhi its provide the higher level of service for the consumer satisfaction, so there are coming more consumer at Reliance Fresh to buy best quality product into the store.

The study to survey the behavior of consumer who always buy product from Reliance fresh at the largest famous retail stores at New Delhi, India with questionnaires. 1. 8. Benefit of research: 1. To understand the factor influencing purchasing making decision of product of Reliance Fresh Retail.

. To realize how the consumer perceive and behave the buying activities of the stores and consumer perception for the image of Reliance Fresh supermarket. 1. 9. Limitation of research: The research focuses and asks for the mind of consumer (perception and behavior) which is intangible so it is difficult to measure by figure and may have bias answers depend on that situation because normally, Indian People mostly are ashamed to tell the truth. Conceptual Framework Independent variables Dependent variables Location * Customer Buying Behavior Buying decision process Ambiance of the supermarket Quality of products Variety of products Customer services References: AnithaJulius.

(2013). Retail Market in India. [online article]. Gupta, M. M. , A.

(2011). Consumer Perceptions towards Different Retail Formats in India. Maharishi Markandeshwar University. Huangyuarong. (2011).

Consumer Markets and Consumer Buyer Behavior [online article]. Jhamb, D. , & Khiran, R. (2012). Emerging trends of Organized Retailing in India.

School of Management & Social Sciences. reliance fresh information. (2012). [online article].