3 Relince Project - Copy

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CHAPTER 1

INTRODUCTION OF MOBILE INDUSTRY IN INDIA

The mobile phone industry made a slow start in India in 1995.several private player who had

entered in industry in 1995 exited in next few year dew to the unfriendly telecom policy of

the Indian government , high licensing fees and absence of proper telecom regulatory body.

The growth in the subscriber base of mobile phone remained sluggish initially, reaching the

Million milestone in1998. In 1999, the the government of india announced a new telecom

policy.this policy planned to provide telephone on demand by 2009.

Nokia was founded in 1965 by Fredric Idestam in finland as a paper manufacturing company.

In 1920, finish rubber works became a part of the company, and later on in 1922, finish cable

works joined them. All the three companies were merged in 1967 to form the nokia group.

In the late 1970s, nokia started taking an active interest in the power and electronics business

and by 1987, consumer electronic became Nokia s major business. Nokia created the NMT

mobile phone started in 1981 and launched the first NMT phone, Mobira cityman, in 1987.

The company delivered the first GSM network to Radkilinia, a finish company in 1991, and

in 1992, nokia 1011-a precursor for all nokias current GSM phone-was intridused.

GIVE ME MORE The first point of entry in to the customers mind is through the product.

According to the February 2006 report by or ORG-GFK, 57 percent of the total handset sale

in the top 35 cities were colour screen mobile phsones.

Thats a significant change: in October 2004, colour screen phones accounted for just 25

percent of sale. But a dash of colour is not enough. Roughly one fourth of the colour screen

phones that are sold also have cameras.

A study by handset manufactures benQ in 2005 confirmed that customer expect their mobile

to be more than just communication devices. benQ found that men were keen on camera

phone, while women preferred music on the phone.

Based on this findings, the Taiwanese company launched the M 220, a colour phone with

radio was targeted specifically at women. The price pont: Rs 4500.The company claim that

the competing models were priced from Rs 5000-7000, but these models had a camera too.


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Says ish bawa, marketing and communication head, benQ India, cellular phones are not just

about connectivity. Its about what more you can offer customers, like camera radio and so

on.

Bawa says the m 220 managed sales of 5000-6000 unit every month and is the company most

popular modelit account for fully for half the company sales. And according to the

company warrenty card analysis, at least 35 per cent of the buyers of the m 220 were women.

Of course , the real figure could even highervery often, men buy the product , but women

are the end-user.

Around the same time last year, Sony Ericsson extended sonys acclaimed walkman brand to

mobile phones. Launched Walkmen series, the company claimed its W800 and W550 modelsare its largest selling model in that segment and make up nearly 20 per cent of the company

sales.

Of its not just music. Manufacture are also expanding their range to combat Nokia 38

models in India. Unit six month ago, Motorola had just five or six models available in the

market: it now has 18. In just one month, February 2006, the Indian handset market saw the

launch of 14 new model, most of them from Motorola.

MAKE IN INDIA

Even as company work on their distribution, they are also bringing handset manufacture

closer home. Nokia recently had a high profile launch of its manufacturing facility in Tamil

Nadu.

Says Warsi, Samsung decided to set up its manufacturing base in India to cater to the huge

demand expected hear. Samsung unit at manesar, in garaon, which began production in

march 2009, will I make million units in first first year of operation.

LG, which also has manufacture facility in Pune, claims that setting up a local manufacturing

unit has more benefits that economy of scale or saving on logisticsproduct modification,

for instance. Two just launched LG phones a cricket game, based on customer feedback on

the popularity of the sport here.


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we would t have been able to meet market recruitment if the product were being made

elsewhere, points out H S Bhatia, product group head, GSM mobile, LG with product ,

price and distribution place, companies need to shore up their advertising . but most

manufacture advertise. But most manufacture focus on product specific, rather then brand

building, advertisement.

For instance, Samsung high-end phone D 500 is advertised on English news and movie

channel, while its x 200 a mass is advertised in general entertainment channels and regional

dailies.

our product are our brand ambassadors, says Samsungs Warsi. But despite such claims,

time could change. Motorola has singed a brand ambassador and has launched a teaser

camping inviting viewers to guess who it could be. Maybe the ambassador will walk out of

the bus in the Delhi mall.

Selling point

You may find a mobile in every hand, at least in the big cities. But penetration in India is still

very law6 percent compared to 50-60 per cent in Singapore.

Which is why hand set manufacture are looking at different ways to increases distribution.

LG focuses on the youth. The company has entered into tie-ups with coffee chains and

multiplex owner (Barista and PVR cinema) to display its models at their location.

LG is also is the process of increasing its reach from 11000 outlets to20000 by December

2006 and is even considering network marketing to increases its presence across the country.

If Nokia recruit top manager from Multinational like Hindustan liver, then Motorola has also

made fried with FMCG companies.

In march 2006, Motorola roped in ITCs e-choupal (a network that links to 3.5 million farmer

through internet kiosks) and with Hariyali kisan bazaar, a chaina of retail outlates where

farmers buy farm equipment.


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Mobile may be displayed alongside speed and fertilizers, but ITC reaches very small towns

and enjoys strong customer loyalty, points out Sudhir Agarwal, director, sales, India, Nepal,

and Sri Lanka, mobile devices, Motorola.

Mobile handset manufacturing in India is soaring. The country has clocked in such

tremendous growth in the handset manufacturing sector that is now emerging as a challenge

for china

Mobile IndiaFuture of the mobile industry in India

As per the latest reports, number of mobile subscribers in India has crossed the 250 million

mark. By April 2008, India is projected to become the second largest wireless market in the

world. So, is it time to pop that bottle of champagne and celebrate? Definitely. Second largestwireless market in the world -WOW!!! Thats indeed an incredibly mind blowing statistic.

High percentage of prepaid customers. About 90% of all GSM & CDMA subscribers in India

are prepaid customers. Prepaid customers are low usage customers and contribute only 25-

30% ARPUs as compared to the post-paid segment (for GSM, post-paid customers

contributed Rs 628 in ARPU while pre-paid customers contributed only Rs 219. for CDMA,

post-paid customers contributed Rs 499 in ARPU while pre-paid customers contributed only

Rs. 140). As mentioned earlier, the introduction of number portability will further worsen the

attrition scenario, since itll make easy for users to change operators and keep th eir same

number. Operators will have to devise means and offer plans to retain subscribers and also

convert some of the pre-paid customers to post-paid ones..

INDIAN MOBILE INDUSTRIES GROWTH 75% IN JANUARY

India first growing mobile phone industry kept up its pace of heady growth in January with

subscriber base jumping nearly 75 percent over the same month last year, data realized by an

industry body showed.

Figure from the cellular operators Association of India showed that the industry had 5.725

million subscriber, up from 3.27 million at the end of January 2001 and 5.48 million

subscriber at the end of 2001. The data showed that the industry added 246,281 user in

January, led by the four main city market of Bombay, New Delhi, Madras and Calcutta,


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which together added 93070 customer.this was three percent less then the number of

customer added in the previous month, but up 48 percent over January 2001 levels.

MOBILE USERS

Global mobile users 2 million

Analogue users 34m

US mobile users 160m

Global GSM users 1.5 billion

Global CDMA users 202m

Global TDMA users 120m

Total European users 342.43

Total African users 83m

Total 3G users 130m

Total South African users 30m

#1 mobile country china (300m)

#1 GSM country china(282m)

#1 in handset 2Q04 Nokia(35.5%)

#1 network in Africa Vodacom(11m)

#1 network in Asia Unicom (153m)

#1 network in Japan Do Co Mo

#1 network in Europe T-mobile (28m)


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Lucent, for its part, supplied to fourth place largely as a result of its spin-off of Avaya, its

corporate phone system arm. If Avayas sales were still part of lucent, the company would

have retained the top spot with $33.2 billion in total sales.


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2. RELIANCE MART IN INDIA

2.1 INTRODUCTION

COMPANY PROFILE:-

Reliance hyper mart

Type-

Founded- 30 October 2006

Headquarters- Mumbai, INDIA

Key People- Mr. Mukesh Ambani

Industry- Retail

Punch Line- GROWTH THROUGH VALUE CREATION

Website- WWW.RIL.COM

ADDRESS OF REGISTRATION OFFICE:-

Reliance Retail LTD.

222 , Maha chamberiv,

9th

floor,

Nariman PC,

Mumbai=400021.

Introduction of Reliance Retail.


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Reliance Retail Limited, a 100% subsidiary of Reliance Industries Limited,

was set up to lead Reliance Groups foray into organized retail.

RRL launched its first store in November 2006 through its convenience store format

Reliance Fresh. Since then RRL has rapidly grown to operate 590stores across 13 states at

the end of FY 2007-08. RRL launched its first Reliance Digital store in April 2007 and its

first and Indias largest hypermarket Reliance Mart in Ahmedabad in August 2007. This

year, RR has also launched its first few specialty stores for apparel (Reliance

Trends),footwear (Reliance Footprints), jeweller (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 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

centers 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.

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.

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.


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The retail initiative of Reliance is without a parallel in size and spread and makes India

proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the

Indian consumer, both in quality and quantity, is an integral feature of the Reliance Retail

Limited. By creating value at all levels, it actively endeavours to contribute to India's growth.

Through multiple formats and a wide range of categories, Reliance is aiming

to touch almost every Indian customer and supplier.

Reliance Retail has announced plans to set up one store for every 3,000families within a

radius of 2 km across all locations by 2011. The company is competing directly with the large

number of traditional local provision stores .Reliance Retail is either going to set up new

stores in the identified areas or take over existing stores. The company has already done that

in Mumbai and other cities. Of the four million sq ft of retail space to be created under the

Reliance Fresh brand (for groceries), one million will be through acquisitions. The retailer

is also moving into laundry, personal care and apparel product lines, in which it plans to

launch private labels.

To strengthen its links with farmers, the company is setting up integrated agri-retail business

centers, which include three processing and distribution centers, 51 retail outlets for farmers

and 75 rural business hubs, all with an investment of US$445 million. Reliance Retail would

build a business that would focus on competitive offerings to Indian consumers across

several verticals: Integrated food and grocery, items of daily household consumption,

apparels and footwear, electronic goods, lifestyle products and services, home essentials and

improvements, farm implements and inputs ,distribution of energy products and services,

distribution of travel and financial services, entertainment and leisure experiences, health and

well-being products and services and educational products and services. It would develop

partnerships to bring the best of luxury brands from all over the world to India and it would

also develop linkages with opportunities in agriculture and food processing. The company

would have a pan-India footprint covering 1,500 cities and towns and embracing all strata of

the society.

Presently Reliance Retail Limited has 706 stores across 13 states.


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2.2 FORM OF ORGANIZATION:-

Organisations are structured in a variety of ways, dependant on their objectives and culture.

The structure of an organisation will determine the manner in which it operates and its

performance. Structure allows the responsibilities for different functions and processes to be

clearly allocated to different departments and employees.

The wrong organisation structure will hinder the success of the business. Organisational

structures should aim to maximize the efficiency and success of the Organisation. An

effective organisational structure will facilitate working relationships between various

sections of the organisation. It will retain order and command whilst promoting flexibility

and creativity.

Internal factors such as size, product and skills of the workforce influence the organizational

structure. As a business expands the chain of command will lengthen and the spans of control

will widen. The higher the level of skill each employee has the more the business will make

use of the matrix structure to maximize these skills across the organization.

Span of Control

This term is used to describe the number of employees that each manager/supervisor is

responsible for. The span of control is said to be wide if a superior is in charge of many

employees and narrow if the superior is in charge of a few employees.

Different Structures

The most common organisation structures are:

Tall

Flat

Hierarchical

Centralised and decentralised

Communication Structure and its Effects on Task Performance

The formal organization chart of a bureaucratic organization can be thought of as a network.

It is a directed graph (a non-symmetric network) that records the social relation "reports to"


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(or, if you prefer the arrows to go downward, "is the boss of"). That social relation tends to

channel a lot of the communications within an organization

STAFF DETAIL OF THE RELIANCE MALL:-

There are 140 employees in Reliance Mart.

Out of 140 employees 115 employees are permanent. Other 35 employees are on temporary base for 6months. After 6months these

employees will become the permanent employees of the Reliance Mart.

Reliance Retail strategy:-

Reliance retail is investing US$ 5 billion in pan-india retail including both small &super stores.

Reliance is generating 1 million jobs. Reliance is going to reach annual sales of US$ 25 billion by 2011.


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also expanded its presence in business-to business office supplies through its joint venture

with Office Depot.

Through Reliance One, RRLs loyalty membership program, RRL enjoys the patronage of

over 5.5 million customers. In the coming year, RRL will continue on its mission to delight

the customers every visit. RRL will continue to provide unprecedented value to customers

across all its formats and stores

MANAGING BODIES:-

Mukesh Ambani- CEO,MD

Raghu Pillai - Director, Chief Executive and President of Retail Operations

Bijay Sahu - Head of Human Resources

Board Committees

The Board has established the following Committees to assist the Board in discharging its

responsibilities:

Audit Committee

Remuneration Committee

Shareholders'/Investors' Grievance Committee

Finance Committee

Health, Safety and Environment Committee

Corporate Governance and Stakeholders' Interface Committee

Employees Stock Compensation Committee


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The Board has adopted charters setting forth the roles and responsibilities of each of the

above Committees as well as qualifications for Committee membership, procedures for

Committee members' appointment and removal, Committee structure and operations and

reporting to the Board. The Board may constitute new Committees or dissolve any existing

Committee, as it deems necessary for the discharge of its responsibilities.


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ORGANISATIONAL STRUCTURE:-


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CHAPTER 3

3.1 INTRODUCTION OF TOPIC:-

What is consumer buying behavior?

Before business can develop marketing strategies, they must understand what factors

influence buyersbehavior and how they make purchase decisions to satisfy their needs and

wants. Buyers are moved by complex set of deep and subtle emotions. Their behavior result

from deeply held values and attitudes; their perception of the world and their place in it, from

common sense, impulse or just plain whimsy. There are also several stages through which the

consumer exhibit before deciding to purchase goods or services. These inc lude

5 steps

Which are?

Problem or need recognition, information search, alternative evaluation,

Purchase and post-purchase evaluation.

IMPORTANCE OF CONSUMER SATISFACTION

The needs to satisfy customer for success in any commercial enterprise is very obvious. The

income of all commercial enterprise is derived from the payments received for the products

and services supplied to its customers. If there is no customer there is no income and there is

no business. Then the core activity of any company is to attract and retain customers. It is

therefore no surprise that Peter F Drucker the renowned management Guru, has said to

satisfy the customers is the mission and purpose of every business Satisfaction of customer is

essential for retention ofcustomers and for continuous sales of the products and services of

the company to customers. This establishes the needs for and the importance of customer

satisfaction. The satisfaction of consumers is different from one to another. Became, each

consumer has the different behavior in their life. So, the marketer satisfies the consumer, he

must very well know the behavior of consumer.


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CONSUMER BUYING BEHAVIOR

Consumer behavior refers to the mental and emotional process and the observable behavior

of consumers during searching, purchasing and post consumption of a product or

service.

Consumer behavior involves study of how people buy, what they buy, when they buy and

why they buy. It blends the elements from psychology, sociology, socio-psychology,

anthropology and economics. It also tries to assess the influence on the consumer from

groups such as family, friends, reference groups and society in general.

Buyer behavior has two aspects

The final purchase activity visible to any observer and the detailed or short decision process

that may involve the interplay of a number of complex variables not visible to anyone.

3.2 FACTORS AFFECTING CONSUMER BUYING BEHAVIOR

Consumer buying behavior is influenced by the major three factors:

1. Social Factors

2. Psychological Factors

3. Personal Factors.

A. SOCIAL FACTORS

Social factors refer to forces that other people exert and which affect consumers purchase

behavior. These social factors can include culture and subculture, roles and family, social

class and reference groups.


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C. PERSONAL FACTORS

These include those aspects that are unique to a person and influence purchase behavior.

These factors include demographic factors, lifestyle, and situational factors.

Example: Lifestyle is an indicator of how people live and express themselves on the basis of

their activities, interests, and opinions. Lifestyle dimension provide a broader view of people

about how they spend their time the importance of things in their surroundings and their

beliefs on broad issues associated with life and living and themselves. This is influenced by

demographic factors and personality.

Example: A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs

and less informal clothes like jeans as compared to a Mechanic or Civil engineer. So

according to their lifestyle and profession, the buying behavior of people differs from one

another.


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3.3 Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual

purchasing is only one stage of the process. Not all decision processes lead to a purchase. All

consumer decisions do not always include all 6 stages, determined by the degree of

complexity...discussed next.

The 6 stages are:

Problem Recognition(awareness of need)--difference between the desired state and the actualcondition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to

eat.

Can be stimulated by the marketer through product information--did not know you were

deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you

need a new pair of shoes.

Information search--

Internal search, memory.

External search if you need more information. Friends and relatives (word of mouth).

Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked set.

Hungry, want to go out and eat, evoked set is

chinese food

indian food

burger king

klondike kates etc


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Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants

or does not want. Rank/weight alternatives or resume search. May decide that you want to eat

something spicy, indian gets highest rank etc.

If not satisfied with your choice then return to the search phase. Can you think of another

restaurant? Look in the yellow pages etc. Information from different sources may be treated

differently. Marketers try to influence by "framing" alternatives.

Purchase decision--Choose buying alternative, includes product, package, store, method of

purchase etc.

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

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.

After eating an indian meal, may think that really you wanted a chinese meal instead.


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3.4 Types of Consumer Buying Behavior

Types of consumer buying behavior are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in a product

in a particular situation.

Buyers level of involvement determines why he/she is motivated to seek information about a

certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products visible to

others, and the higher the risk the higher the involvement. Types of risk:

Personal risk

Social risk

Economic risk

The four type of consumer buying behavior are:

Routine Response/Programmed Behavior--buying low involvement frequently purchased low

cost items; need very little search and decision effort; purchased almost automatically.

Examples include soft drinks, snack foods, milk etc.

Limited Decision Making--buying product occasionally. When you need to obtain information about

unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for

information gathering. Examples include Clothes--know product class but not the brand.

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

infrequently bought products. High degree of economic/performance/psychological risk.

Examples include cars, homes, computers, education. Spend alot of time seeking information

and deciding.

Information from the companies MM; friends and relatives, store personnel etc. Go through

all six stages of the buying process.

Impulse buying, no conscious planning.


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The purchase of the same product does not always elicit the same Buying Behavior. Product

can shift from one category to the next.

For example:

Going out for dinner for one person may be extensive decision making (for someone that

does not go out often at all), but limited decision making for someone else. The reason for the

dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also

determine the extent of the decision making.


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CHAPTER 4

Research methodology

4.1 Problem Statement:-

Management decision problem:

Should the reasonable prices on mobile available to the customer?

Should a proper service provided to the customer?

Should new schemes on mobiles should be provided to the customer?

Marketing research problem:

To determine the customers preference for the brand.

To determine the customer for which they have provided a service.

To determine the customers preference for a new schemes in the Reliance Mart.

4.2 Research Objective:-

To know the consumer buying behavior towards mobile phones at RelianceMart..

To know about the most preferred brand of mobile in the Store.

To understand the Consumer philosophies while choosing technologicalproducts.


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4.3 Research Hypothesis list:-

H0: There is no relationship between gender and consumer buying behavior.

H0: There is no relationship between age and consumer buying behavior.

H0: There is no relationship between monthly income and consumer buying behavior.

H0: There is no relationship between no. of family members and consumer buying behavior.

H0: There is no relationship between currently use mobileand consumer buying behavior.

H0: There is no relationship between mobilefeature and consumer buying behavior.

H1: There is relationship between gender and consumer buying behavior

H1: There is relationship between age and consumer buying behavior

H1: There is relationship between monthly income and consumer buying behavior

H1: There is relationship between no. of family members and consumer buying behavior

H1: There is relationship between currently use mobileand consumer buying behavior

H1: There is relationship between mobile featureand consumer buying behavior


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4.4 Research Design:-

The measuring and ensuring consumer buying behavior study is considered with a

sample of elements from a population and it is dealing with reliance or retail store. Data on

No. characteristic from sample elements are collected and analyzed.

The cross sectional study is the most frequently used descriptive design in research.

Cross sectional design involves collection of information from sample of population element

only once.

In consumer buying behavior at reliance mart study only one sample of despondences

is drawn from target population and information is obtain from the sample only once that is

why we use the single cross sectional design.

4.5 Target Population definition:-

Element-male and female at reliance mart

Sampling units- customers

Location-reliance mart

4.6 Sample Size Calculation:-

200 sample size in our project report.

4.7 Sampling Method:-

We are making the survey of consumer buying behavior at reliance mart and they have

already convinced and we are survey of those customer who will convinced by us. So that is

why we use the convenience sampling.


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4.8 Approach:-

Allocate the only 1 member in questionnaire and fillips the all data.

4.9 Interview Method:- consumer buying behavior at reliance mart personal interview

method use by me.


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