PROJECT REPORT On STUDY OF CONSUMER BUYING BEHAVIOR WITH SPECIAL REFERENCE TO RELIANCE FRESH A Report Submitted In Partial Fulfilment of the Requirements For The Award of the Degree of MASTER OF BUSINESS ADMINISTRATION Collaborative program of M.S.Ramaiah Management Institute with PRIST university BY SHILPA BOHARPI REG.NO:- CM2091860126 Under the guidance of Dr. ASIM BANDYOPADHYAY PRIST UNIVERSITY Page 1
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PROJECT REPORT
On
STUDY OF CONSUMER BUYING BEHAVIOR WITH
SPECIAL REFERENCE TO RELIANCE FRESH
A Report Submitted In Partial Fulfilment of the RequirementsFor The Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION Collaborative program of M.S.Ramaiah Management
Institute with PRIST university
BY
SHILPA BOHARPI REG.NO:- CM2091860126
Under the guidance ofDr. ASIM BANDYOPADHYAY
PRIST UNIVERSITY
Page 1
Vallam, Thanjavur2010
STUDENT’S DECLARATION
I hereby declare that the Project Report conducted atRELIANCE FRESH, BANGALORE
Under the guidance ofDr. ASIM BANDYOPADHYAY
Submitted in Partial fulfilment of the requirements for theDegree of
MASTER OF BUSINESS ADMINISTRATION Collaborative program with PRIST University
TO
M.S.RAMAIAH MANAGEMENT INSTITUTE It is my original work and the same has not been submitted for the award of any other Degree/Diploma/Fellowship or other similar titles or prizes.
Place: Bangalore STUDENT NAME – SHILPA BOHARPI
Date: Reg. No - CM2091860126
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CERTIFICATE
This is to certify that the Project Report at Reliance Fresh on the topic “Study of consumer buying behaviour “ submitted in partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Of PRIST UNIVERSITY
In collaboration with
M.S.RAMAIAH MANAGEMENT INSTITUTE
Is a record of bonafide Training carried out by SHILPA BOHARPI,Reg No - CM2091860126
Under my supervision and guidance and that no part of this report has been submitted for the award of any other degree/diploma/fellowship or similar titles or prizes.
FACULTY GUIDE
Signature:
Name: Dr. ASIM BANDYOPADHYAY
Qualifications:
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ACKNOWLEDGEMENT
I extend my special gratitude to our beloved director Shri. ANANDARAM,
Our DEAN & our Co-coordinator for inspiring me to take up this project.
I wish to acknowledge my sincere gratitude and indebtedness to my project
guide Dr. ASIM BANDYOPADHYAY of M.S. RAMAIAH
MANAGEMENT INSTITUTE Bangalore for his valuable guidance and
constructive suggestions in the preparation of project report.
STUDENT NAME -
SHILPA BOHARPI
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CONTENTS O F PART A
CONTENTS OF PART B
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S. NO. TITLE PAGE NO.I Sectoral Analysis of Retail Industry
Retail Industry in India 8 Scope of Retail sector in India 9 Growth factors 10 Employment generation 11 Challenges facing 12
II About the Company Company profile 14 Reliance Fresh 16 Aspects of the company 20 Corporate Social Responsibility 27
III Organisational Hierarchy 28IV Customers of Reliance Fresh 29V Competitors
More 30 Big Bazar 31 Spencer’s 32
VI SWOT Analysis 33
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S. NO. TITLE PAGE NO.I Research Design
Title of the research topic 37 Statement of the problem 37 Research Objective 37 Research Methodology 38 Sample Size 38 Data Collection 38 Statistical Tools used for analysis 39 Sampling Technique 39 Limitations of the study 39
II Analysis and Interpretation of the data 40III Findings and Conclusions 53IV Recommendations And Suggestions 54V Appendices 55VI Bibliography 58
PART -A
ORGANISATIONAL STUDY
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I. SECTORAL ANALYSIS OF RETAIL INDUSTRY
RETAIL INDUSTRY IN INDIA
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. 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. AT Kearney, the well-known
international management consultancy, recently identified India as the ‘second 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 eyes. With a
contribution of 14% to the national GDP and employing 7% of the total workforce (only
agriculture employs more) in the country, the retail industry is definitely one of the pillars of
the Indian economy.
An industry which has good representation in Fortune 500 companies list, an industry which
is the largest employer just after agriculture.
Indian 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 favourable
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.
Key Players in this sector are as follows:
➢ Future Group.
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➢ Vishal Retail Ltd.
➢ Shoppers Stop Ltd
➢ Big Bazar
➢ Spencer’s
➢ More
Scope of Retail Sector in India
The scope of the Indian retail market is immense for this sector is poised for the highest
growth in the next 5 years. The organized retailing sector in India is only 3% and is expected
to rise to 30 - 35% by the year 2012. 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. 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. 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.
Retail market in the organized sector in India is growing can be seen from the fact that 1500
supermarkets, 325 departmental stores, and 300 new malls are being built. Many Indian
companies are entering the Indian retail market which is giving Indian organized retail
market a boost. One such company is the Reliance Industries Limited. It plans to invest US$
6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets.
Pantaloons are another Indian company which plans to increase its retail space to 30 million
square feet with an investment of US$ 1 billion.
Bharti Telecoms an Indian company is in talks with Tesco a global giant for a £ 750 million
joint venture. A number of global retail giants such as Wal-Mart, Carrefour, and Metro AG
are also planning to set up shop in India. Indian organized retail market will definitely grow
as a result of all this investments.
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The scope of the Indian retail market has been seen by many retail giants and that the reason
that many new players are entering the India retail industry. 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
Growth Factors in Indian Organized Retail sector
Rise in the working population which is young, pay- packets which are hefty, more nuclear
families in urban areas, rise in the number of women working, more disposable income and
customer aspiration, western influences and growth in expenditure for luxury items. All these
are the factors for the growth in Indian organized retail sector.
In fact, Indian retail industry is the fastest growing industry in India and it accounts for
10% of the country's GDP. In 2009, the retail industry in India amounted to US$ 200 billion
and out of this the organized retail sector in India amounted to US$ 6.4 billion. By 2012, the
Indian organized retail sector is expected to rise to US$ 25 billion. In 2003, the Indian
organized retailing sector accounted for more than 4.5 million sq. ft of space absorption by
malls. Pantaloons have decided to increase its retail space to 30 million square feet with an
investment of US$ 1 billion. Reliance Industries Limited is targeting for annual sales of US$
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25 billion by 2011. It is planning to invest US$ 6 billion in order to open 1,500 supermarkets
and 1000 hypermarkets. Bharti Telecoms is planning a joint venture with Telco a global
retail giant worth £ 750 million.
EMPLOYMENT GENERATION BY INDIAN ORGANIZED RETAIL
SECTOR
India is going through a radical economic change. Though it is very infant stage, people can
feel the climate is changing. The unorganized retailers take the lion's share in the Indian
retail sector, but the organized retailers are growing at a good pace, and promises an increase
of proportion of 9 - 10% by 2011. This is to be the largest sector after the agricultural sector.
The increase in the number of consumers twinned with the introduction of organized sector
has brought numerous corporate investments in retail sector. The entry of super markets,
enormous departmental stores, and shopping malls has encouraged the retailers to look at
new business plans of expansion. An economic growth on a monumental scale is offered by
the Indian retail sector, equally in the national and international market which in turn will
generate a huge source of employment and a variety of options for the consumers.
The present employment in the retail business is nearly 4 crores and around 20 crores
depends on this sector. There is a scope of better exposure to the international standards with
the entry of transnational companies, which in turn is encouraging more &
more retail management programs to open up and help bridging the gap of supply & demand
of talented professionals for management.
An economic growth on a monumental scale is offered by the Indian retail sector, equally in
the national and international market which in turn will generate a huge source
of employment and a variety of options for the consumers. The Ernst & Young's report 'The
Great Indian Retail Story', anticipates that the Indian retail sector would come up with 2
million employment opportunities within the year 2010.
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Benefits to the economic growth:-
➢ Better quality products and services would lead to better competition.
➢ More exports bring more foreign direct investments and foreign exchange.
➢ Organized Indian retail sector would encourage tourism.
➢ Along with the employment boom there would be a vast development in the
expertise of the human resource.
There would remain future scope for improvements in agriculture, small, and medium scaled
industry.
Challenges facing the Indian Organized Retail sector
The challenges facing the Indian organized retail sector are various and these are stopping
the Indian retail industry from reaching its full potential. The behaviour pattern of the
Indian consumer has undergone a major change. This has 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 affecting 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
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down the Indian retailers profit levels. The Indian government has allowed 51% foreign
direct investment (FDI) in the India retail sector to one brand shops only. This has 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 brings down the profit of the
Indian retailers.
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II ABOUT THE RELIANCE FRESH
COMPANY PROFILE
RELIANCE
“Growth has no limit at Reliance. I keep revising my vision. Only when you
can dream it, you can do it.”
Dhirubhai H. Ambani
Founder Chairman
Reliance Group
December 28,1932 – July 06, 2002
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The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest
business house. The Group's activities span exploration and production of oil and gas,
refining and marketing, petrochemicals, textiles, financial services and insurance, power,
telecom and infocom initiatives. The Group exports its products to more than 100 countries
the world over. Reliance Group revenue is equivalent to about 3.5% of India's GDP. The
Group contributes nearly 10% of the country's indirect tax revenues and over 6% of India's
exports.
The Reliance Group Companies, acknowledged as one of the best-run companies in the
world, include: Reliance Industries Limited, Reliance Capital Limited, Reliance Industrial