Summer Report on Summer Training

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Reliance Retail LimitedMystery Shopping assessment

2011



INDEX

1. CERTIFICATE OF THE GUIDE 10

2. STUDENT¶S¶ DECLARATION 11

3. ACKNOWLADGEMENT 12

4. DEFENITION OF MYSTERY ASSESMENT 13

5. INTRODUCTION OF PROJECT 15

6. HISTORY OF RELIANCE RETAIL 16

6.1. Foundation of Reliance Retail 17

6.2. The Vision 18

6.3. The Mission 18

7. AN ANALYSIS OF RELIANCE RETAIL 19

7.1. Low-Cost Leadership Strategy 20

7.2. Differentiation Strategy 20

7.3. Organization Structure 21

7.4. External Environment 22

7.5. Global Expansion 23



7.6. Information as a Weapon 24

7.7. Financial Performance and Analysi 26

7.8. Ethics & Culture 278 . RETAIL SECTOR-AN OUTLOOK 2 8

8.1. Industry Analysis 28

8.2. BIG BAZAAR 288.3. EASY DAY 30

8.4. VISHAL MEGWAD 31

8.5. Vodafone -Essar (Erstwhile Hutchison Group) 329. RELIANCE NETCONNECT DIVISION 33

9.1. Introduction 33

9.2. RCOM¶ products in Reliance Netconnect Department 33

9.2.1. Value Based Plan 34

9.2.2. Advance Rental Plan 35

9.2.3. Time based plan 35

9.2.4. Prepaid Options 36

9.3. Evaluation criteria & parameter of competitors 36

9.4. Reliance Data Card - an insight 37

9.5. Product 3 8

9.6. Packaging 3959.7. Price 40

9.8 . Promotion 41

9.9. Bundling 41



10. MARKET RESEARCH 42

10.1. Overview of Research 42

10.2. Introduction 43

10.2.1. Problem or Opportunity 43

10.2.2. Background of the study 43

10.3. An overview of internet and wireless connectivity 44

10.3.1. Definition of internet 44

10.3.2. Common uses of the Internet 45

10.3.3. Driving growth of internet data card 4610.3.4. The Deterrents 47

11. CONSUMER BEHAVIOUR THEORIES 4 8

11.1. Consumer perception and consumer behavior 48

11.2. Consumer decision process 49

11.2.1. Predispositions (Before Purchase) 49

11.2.2. Product Need 50

11.2.3. External Search 50

11.2.4. Evaluation of Alternatives 51

11.2.5. Purchase Activity 51

11.2.6. Post Purchase Behaviour 52

11.2.7. Predispositions (After Purchase and Use) 52

11.3. CONSUMER PERCEPTION 53

11.3.1. Introduction 53

11.3.2. Factors in perception 53



11.4. Consumer behaviour towards internet data card 55

11.4.1. Problem recognition 56

11.5. Information Search 56

11.6. Product Evaluation 57

11.7. Purchase Activity 58

11.8. Post Purchase Activities 5811.9. Perceived benefits of internet data card 59

11.9.1. Convenience 60

11.9.2. Time saving 6011.9.3. Economical 60

11.10. Perceived risk of internet data card 61

11.10.1. Risk of internet connection speed 61

11.11. Research objective 62

11.12. Research question 62

711.13. Research boundaries 62

11.14. Research design 63

11.14.1. Validity and Reliability test of the questionnaire 64

11.14.2. Validity Test 64

11.14.3. Reliability Test 65

11.14.3.1. Cronbach¶s Reliability Test 66

11.15. Research tactics 66

11.15.1. The theoretical population 66

11.15.2. Sampling Frame 67





914.6. Age Profile of Sample Population 10614.7. Internet Data Card Preference 10614. 8 . Recall Pattern 10614.9. User Preference 107

14.10. Respondents¶ preference of Internet Connection 10714.11. Brand Satisfaction of Reliance 10 8 14.12. Brand Loyalty 10 8 14.13. Price Sensitivity in Internet data card Market 10914.14. Fishbein Analysis 10914.15. Average attitude perception score of each brand 11014.16. Factor Analysis 11114.17. Cluster Analysis 11214.1 8 . References 115

CERTIFICATE BY THE GUIDE

PLACE

DATE

SIGNITURE OF THE GUID:-

NAME AND OFFICIAL ADDRESS OF THE GUIDE:-

DISGNATION AND EXPERIENCE:-



Students¶ DeclarationI, Mr. Raman Kumar Jha. hereby declare that the Project Work titledMystery shopping assessment with a focus on perception of how mystery audit cab be done inmany retail shop. The original work done by me and submitted to the TAXILA BUSINESSSCHOOL JAIPUR RAJASTHAN fulfillment of requirements for the award of Post GraduateDeploma In Business Management(Area of specialisation) is a record of original work done by me under thesupervision of Ms Rupali kesliwal of RELIANCE RETAIL LTD. (Orgn. of the guide)Date: 15 March 2011

Signature of the Student

ACKNOWLEDGEMENTFirst of all I would like to thank the Management at Reliance Retail limitedfor giving me the opportunity to do my one and half month project training in their

esteemed organization. I am highly obliged to Ms. RUPALI KASLIWAL (Chief manager of Reliance Retail Limited Jaipur) for granting me to undertake my training at Reliance RetailLimited Jaipur RajasthanI would like to express my gratitude to all the management hierarchywho has been provided me with guidance, inspiration, perspective and stimulating discussion,throughout the writing of this report. His/her constant review and excellent suggestionsthroughout the project are highly commendable.A study like this can not be completed withouthelp from other persons and therefore I would like to express my gratitude to Mr.Vivek Ajadnorthwest zon head [M .P. ,GUJRAT, RAJASTHAN] to provide me crucial guidance in theanalytical part of this

Project.

My heartfelt thanks go to all the executives who helped me gain knowledgeabout the actual working and the processes involved in various departments.Finally, we would like to thank our friends and family member for giving us

EXCUTIVE SUMMERY

This data field is the sum of expenses transferred to the deferred revenue expenditure andexpenses that were transferred to other unspecified accounts in the presentation of the expenses

by the company.

Both these items are reduced from the overall expenses of the company.



When benefits of certain revenue expenditure incurred by a company during a year are expectedto accrue not only in the year in which these expenses were incurred but also in the subsequentyears then, these expenses are not charged entirely to the profit and loss account in the year inwhich they are incurred. Instead, the amount is transferred to the balance sheet as a deferredrevenue expenditure.

Again, when a company presents its accounts with entries such as "transferred to other expenseheads" under a list of expenses and we do not know as to from which particular expense thetransfer has been made, we report the amount of transfer against this particular head so as toreduce the overall expenses of the company. For example, a company may report that it incurredan expense of Rs.100 on repairs and maintenance, (Rs.30 on repairs of buildings, Rs.50 on sayrepairs of plant and machinery and the remaining Rs.20 on repairs of vehicles.) Of this it chargedRs.10 to Other expense heads. However, it may not state from which head of repairs it hascharged these ten rupees, and also to which particular expense head. In such cases, where we donot have any specific information as to from which particular expense head the deduction for transfer is to be made, we capture the gross expenditure amount in the respective data fields andthe Rs.10 amount transferred to Other expense heads is posted in this data field - "Expenses

charged to other expenditures".

5. INTRODUCTION OF PROJECT

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y Mystery Shopping (customer experience evaluations)

y Benchmarking (regular competitor progress tracking)



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y Our mystery shopping programmes are dedicated to help increase customer satisfaction, boost

y Brand Audits (bespoke operational evaluations)

y sales performance and build staff competence, resulting in increased profitability.

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HISTORY OF RELIANCE TETAIL LIMITEDReliance Retail Limited



History:

- Founding -

Reliance Retail Limited (RRL) is a subsidiary of Reliance Industries Limited, which is

based in Mumbai. RRL was set up in 2006 and marks the foray of the Reliance Group

into organized retail. RRL has been conceptualized to include growth for farmers, vendor

partners, small shopkeepers and consumers. It is based on Reliance's backward

integration strategy, to build a value chain starting from farmers to consumers.

- Important past events - Growth graph of the company and important

events over the years. E.g. the Demerger, any significant Mergers & Acquisitions

Products:

- B usiness Divisions -

Reliance Retail Ltd. has a number of company-owned outlets along with a franchisee

format that would be in collaboration with Kirana shop owners. Its various divisions are:

Reliance Mart - It is designed to be an all under one roof supermarket that again caters

to household needs.

Reliance Fresh was the first amongst various format stores to be launched by Reliance

Retail Ltd. It currently has 453 stores operational across India and the ideology behind

the initiative has been to bring "Farm to fork" thereby removing middle men and

benefitting both farmer and consumer. The stores would typically be of an area of around

3,000-5,000 sq ft. Each store is to provide fresh fruits, vegetables and also products of Reliance Select and other related groceries. Each store is to at least 50 employees,

thereby giving employment to around 1,500 people in the 30 new outlets. The retail

major plans to have a total of 100m sq ft of retail space in 800 cities by the calendar year

2010 and generate revenues of $22 billion by the end of financial year 2011. Presently



the Reliance Fresh store sizes are between 1100 sq ft and 7500 sq ft depending upon

the location.

Reliance Super will be a smaller version of the hypermarket format. It is to offer over

10,000 products in various categories like grocery, home care, stationery,pharmaceutical products, apparels & accessories, FMCG, consumer durables & IT,

automotive accessories and lifestyle products. Reliance Super stores are to be large

supermarkets with an area of 4,000 to 10,000 sq. ft. and will not sell fruits and vegetables

like Reliance Fresh.

Reliance Digital is a consumer electronics concept mega store. It is designed to be a

one stop shop for all technology solutions in the field of consumer electronics, home

appliances, information technology and telecommunications. The stores are to cover anarea of more than 15,000 sq. ft. and offer a variety of over 4,000 products spread across

150 brands along with solution bundles to meet diverse customer needs. The staff will

counsel and guide customers not only to buy products but also provide complete

solutions to ensure consumers buy the right product at the right price. It will continue to

offer Reliance One, a common membership and loyalty program across all formats,

which follows the philosophy 'Earn Anywhere, Spend Anywhere'. It shall also provide

finance options for purchases. Reliance Digital is to be a large format store spread

across 15,000 to 35,000 sq. ft. and is scheduled to come up in 70 cities in India in the

near future.

Reliance Trends is a specialty apparel store that will sell men, women and children's

garments. The store will carry the best of national and international brands like John

Players, Peter England, Indigo Nation, Wrangler, Reebok, and Lee, apart from in-house

brands. The store layout is to compliment the evolving taste and preference of fashion

savvy consumers, giving them an opportunity to view /shop with ease, along with well

trained customer service associates, to compliment the entire shopping process. By

2010, Reliance has planned to open 100 more stores across the country with focus onmajor cities. The company is targeting a turnover of Rs. 20,000 crore ($5 billion) from this

format. This is a part of the US$ 25 billion (Rs. 100,000 crore) overall sales from retail

business.

Reliance Wellness is a chain of specialty wellness stores that would offer pre-emptive,

curative as well as health and beauty solutions. The store is to add value to people's



lives, by providing products and services that will proactively work to enrich people's

body, mind and spirit. It is to house world class products under one roof and also

educate consumers on their health needs, thus enabling them to take charge of their

health. It will sell international and national brands like H2O, Neutrogena, Olay, Sports

Nutrition, etc. They will also house alternate medicine, health books & music. The storesare to showcase Wellness Events, Seminars, Workshops and Advisory camps on

contemporary wellness issues like diabetes, hypertension, fitness, diet and nutrition,

weight management and skin care.

Reliance Footprints is a specialty footwear store that would offer over 25,000 pairs of

formal, casual, ethnic, party wear and sports wear in men, women and children footwear.

The store is to be spread over 7,500 square feet and be dedicated to footwear,

handbags and accessories. The design of Footprint was conceptualized by Pavlik of USA which is one of the best design houses in the world keeping in mind the taste and

preferences of the Indian consumer. It shall offer brands from Europe and America like

Josef Siebel, Rockport, Hush Puppies, Lee Cooper Clarks, Levis, Nike, Adidas,

Piccadilly, Dr. Scholl's and more. For kids, Crocs and Disney will be showcased. The

store plans a pan-India presence by opening over 15 more specialty stores.

Reliance Jewels is a stand-alone fine jewelery format. It is to be a one stop shopping

destination for fine jewelery. Reliance Retail ventured into gems and jewelery trade with

the aim of launching 300 stores all over India within a 3 year time frame. With a growingdemand for jewelery and lower competition, Reliance Retail Ltd. plans to overtake Tata's

Tanishq by 2010. The gold jewelery range shall include Kolkata Filigree, Rajkot minakari

jewelery, Kundan from Jaipur, Temple jewellery from Kerala, Jadau from Amritsar and

more. In Diamond jewelery, Reliance Jewels will offer the finest quality of diamonds and

the widest range of daily wear, party wear and wedding designs.

Reliance Timeout - With over 56,000 products Reliance Timeout will offer customer an

extensive range of merchandise in books, music, stationery, toys and gifts. It is to aformat based on the ideology to provide a place where a consumer can unwind and

relax, browse and buy a book, sample some music, choose a gift, and buy a toy or some

exclusive stationery for themselves. Reliance Timeout will offer a comprehensive range

of products in these categories along with an attempt to create a fascinating customer

experience with a warm, lively ambience.



MISSION :-



Low cost strategy of retail industry

Reliance Fresh claims that its prices are lower by 30% seemed to be untrue for us. Wedecided to shop at Reliance Fresh, Hyderabad. Consider for example, Fuji Apples cost awhopping Rs 99 per Kilo and NZ Kiwis Rs 185 per kilo. These prices were not lowerby 30% when compared to other retailers, Big Bazaar .

Another disappointment faced was the RelianceOne membership card . You canenroll into the scheme and you will be able to start accumulating points only 6 monthsafter being a member. Insane ? Not me, maybe Reliance management is. Try ityourself. They also put so many other clauses, which makes RelianceOne Membershipcard good for your trash can.













































































































































































































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