Final project Report

In partial fulfilment of the requirements for the award of MASTERS OF BUSINESS ADMINISTRATION (M.B.A)

Submitted to Kavita Mahajan

Submitted by Raman Kumar (Marketing & H.R) Roll No. 7065222433

GIAN JYOTI INTITUTE OF INFORMATION TECHNOLOGY, MOHALI

ACKNOWLEDGEMENTS
It gives me immense pleasure, to express my unfeigned and sincere thanks and gratitude to my supervisor Ms. Kavita Mahajan for his valuable guidance sustained, encouragement and constructive critic at every stage of work, without which it would have never been accomplished.

I acknowledge with thanks the cooperation and help received from the people and my dear friends. I thank them for providing me relevant data and other information. I acknowledge with thanks the unsolicited cooperation and help provided by the department, library and administrative staff of Gian Jyoti Institue of management and technology Mohali I owe special thanks for the help and support received from the faculty of department and colleagues.

Preface
The project report is the result of working on a live project with retail marketing which served as an integral part of my curriculum. It provided me the experience of the Retail Industry before coming into the corporate world. It helped me to view the world of business closely. I was really fortunate for getting an opportunity to work on a live project in a reputed, well established, fast growing and professionally managed organization Reliance fresh The project which I handled was, A study of different promotional strategies used in retail industry (with reference to Reliance fresh which required an extensive market study and study of customer preferences and perceptions. The project gave me a great deal of exposure and I found the practical work totally different from the theoretical one.

CERTIFICATE OF COMPLETION

This is to certify that the Final Project report entitled A study of different promotional strategies used in retail industry (with reference to Reliance fresh Submitted to Punjab technical university in the partial fulfillment of the requirement for degree of MBA, is a work carried out by Raman Kumar, Roll No.7065222433 Under my supervision and guidance.

Project Guide: Kavita Mahajan

DECLARATION
I hereby declare that the Major Project Report, which is entitled A study of different promotional strategies used in retail industry (with reference to Reliance fresh is Compiled and submitted by me is my original frame work. I have not copied the data from any previous report. However, my Project Guide Ms. Kavita Mahajan helped me at various points while preparing this report.

Raman Kumar

Executive Summary
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This report has studied the various promotional strategies of Reliance Fresh which affects customers decision for purchasing products, and the first part of the study concentrates on the promotional strategies in RELIANCE FRESH RETAIL. The second part of the study concentrates on the study the effectiveness of promotional strategies that attracts customers. To determine the strength of Reliance and its brand. To study the convenience of promotional strategies.

Index

[Link]. 1 2 3 4 5 6 7 8 9 10 11 12 13

Table Title Introduction Objectives of the study Need for Study Review of literature Methodology Analysis and interpretation Findings Scope of the Study Limitations of the Project Conclusions Recommendations Bibliography Questionnaire

Page No. 8 25 27 29 36 38 52 54 56 58 61 64 66

Introduction

Introduction
Traditionally retailing in India can be traced to the emergence of the neighborhood Kirana stores catering to the convenience of the consumers and era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission In 1980s experienced slow change as India began to open up economy. 1. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains 2. Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches 3. The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. 4. For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. 5. Post 1995 onwards saw an emergence of shopping centers, a. mainly in urban areas, with facilities like car parking b. targeted to provide a complete destination experience for all segments of society 6. Emergence of hyper and super markets trying to provide customer with 3 Vs Value, Variety and Volume 7. Expanding target consumer segment: The Sachet revolution - example of reaching to the bottom of the pyramid.

8. At year end of 2000 the size of the Indian organized retail industry is estimated at Rs. 13,000 crore

The big retail drive is on

Companies like Reliance, Bharti and Subhiksha are in a race that is fuelling the real estate [Link] retail is on a roll in India. Giants such as Reliance Retail, Bharti and Subhiksha are planning national roll outs of their retail outlets, with varying degrees of segmentation. As an industry, retailing could see investments of over $10 billion over the next three to four years and every crore of retail investment would see demand for 10,000 sq ft. Industry experts believe that even if only $2 billion of the projected investment materialises, it would mean that there would be a demand for almost 10 million sq ft in the next two to three years from retail alone. If all the planned retail investment happens, the space requirement would be 50 million sq ft. With organised retail contributing over 40% to the Rs 64,000 crore real estate sector in India, Gibson Vedamani, chief executive officer, Retailers Association of India says, Over the past three to four years, the growth of retailing and the demand of retailers has motivated the realty sector to aggressively look at developing properties for retailing, specifically malls. Earlier malls were restricted to just shopping centers but now malls are considered the right profile to cater to shopping needs under one umbrella. Each and every need of customers right from their footfalls to quick turnaround at the cash counters should be met so that customers do not have to wait for long in the queue especially during weekends. Well, this can be done when the number of cash counters in hypermarkets are increased at every store level. 10

Reliance Retail Ltd, which operates 135 grocery retail chain stores called Reliance Fresh, has decided to invest Rs 25,000 crore by 2012 in its retail business. The investments would also be made in setting-up 400 small format durable outlets called Reliance Digital in rural and semi-urban markets. This will be the second major durable retailing initiative in the domestic market after competitor Tata Groups Infiniti Retail-owned Croma. According to a Reliance Retail executive, With rural markets already contributing 60% to the overall Cathode Ray Tube (CRT) TVs market, there is a good potential for categories such as music systems and DVD players to grow there. Reliance Retail, Bharti Retail and Subhiksha propose to serve all regular shopping requirements of an average Indian household. This will include all food and grocery categories, fresh fruits and vegetables, meat and poultry, dairy products, staples, FMCG and processed foods, electronics and appliances, clothing and footwear, furniture and furnishing, and other household articles. Bharti Retail will keep adding to the product portfolio in line with consumer aspirations, preferences and trends in the international market. Development of the mall industry depends on two key business sectorsthe real estate as well as the retail. The demand for new retail spaces will be spurred on by such new retail ventures. Also, such large-scale retail forays tend to change and modify the governing rules, norms and, in some cases, even the tax structures of a country. These contribute to catalyse the retail industry growth further into a virtuous cycle ensuring that the demand for retail real estate is even higher in the medium term.

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Retailing formats in India

Malls:
The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common [Link] include Shoppers Stop, Piramyd, Pantaloon.

Department Stores:
Departmental Stores are expected to take over the apparel business from exclusive brand showrooms.

Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

Hypermarts/Supermarkets:

Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% 12

of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods

Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.

Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc

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MBOs :
Multi Brand outlets, also known as Category Killers, offer several brands across a

single product category. These usually do well in busy market places and Metros.

The Company

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 RILs Rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011. The super marts will sell fresh fruits and vegetables, staples,

14

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. The company also has plans to train students and housewives in customer care and quality services for part-time jobs.

Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in Chennai, New Delhi, Hyderabad,Jaipur, Mumbai, Chandigarh, Ludhiana increasing its total store count to 40. Reliance is still testing its retail concepts by controlled entry beginning in the southern states

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According to Deccan Herald, the company is planning on opening new stores with storesize 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. However, this is only the entry roll-out that the company has planned. Bangalore is said to have 40 stores in all by the end of the year. In a dramatic change due circumstances prevaling 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 minimise 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. The company may not stock fruit and vegetables in some states, Orissa being one of them.

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Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in Hyderabad last October, not only did the company said the stores main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its farmto-fork theory. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way. Reliance may exit some businesses If the business does not increases by March [Link] addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty Stores branded as iStore, starting with Bangalore.

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According to reports, customers like the chain because the produce is generally fresh, the shops are air-conditioned and the prices are much lower than those of open-air markets or mobile vendors. These are sellers who trundle around neighborhoods with carts laden with vegetables and fruit. Residents enjoy the convenience of buying vegetables right outside their door. But the vendors and small shopkeepers fear they will not survive the Reliance onslaught

.
Because it buys in bulk directly from farmers, Reliance Fresh enjoys economies of scales, which it passes on to customers in the form of low prices and discounts.

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Vendors have to battle many odds. The supply chain is so inefficient that the produce they bring to the towns is not very fresh by the time it arrives. In fact, according to experts, about half the countrys food and vegetables rot before they reach the shelves or market stalls. India lacks cold storage and refrigerated transport all things Reliance has built for its new chain.

Reliance Fresh, a subsidiary of Reliance Industries, is investing $5.6 billion in hundreds of stores. The company, already Indias top private oil refiner and petrochemical maker, is at the lead of the large chain stores that are storming into Indian organized retail, which now makes up only about 5 percent of the retail market.

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s The retail revolution in India is touching almost everyone. Indians are switching from small shops and open-air markets to shopping malls and supermarkets. Reliance is on the vanguard of this transformation. But Wal-Mart is coming soon, and two other supermarket chains Britains Tesco, and Carrefour of France are itching to enter the Indian market. The losers are likely to be the estimated 12 million Indians whose livelihoods depend on their small shops. The number of mobile vegetable vendors is not known.

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RETAIL PROMOTION

Is broadly defined as any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm. The best promotion will include both long-term and short-term strategies for attracting the customers you want while making the most available profit. This will include the typical marketing system of the 4 P's. These are Promotion, Product, Price, and Placement - especially in retail stores.

Long-term strategies gradually build public awareness and tend to give your sales a gradual boost that is permanent in nature. These include basic advertisements and high profile activities. Short-term investment usually offer some sort of incentive and you can get an immediate boost in sales that is temporary in nature. These include discounts, offers, and gifts. Both strategies will build goodwill for you and your company and give your reputation some positive backing for future promotion. By using proper placement with search engines, you can receive both short and long-term results depending on the type of business and associating with similar businesses.

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Steps in planning a promotion strategy:

1
Goals are stated in specific and measurable terms. Positive word of mouth (WOM)

is an important long-term goal. 2 An overall promotion budget is set on the basis of one of these techniques: all you

can afford incremental, competitive parity, etc. 3 The promotional mix is outlined, based on the firms budget, the type of retailing

involved, the coverage of the media, and the hierarchy of effects. 4 The promotional mix is enacted. Included are decisions involving specific media,

promotional timing, message content, sales force composition, particular sales-promotion tools, and the responsibility for coordination. 5 The retailer systematically reviews and adjusts the promotional plan, consistent

with its preset goals.

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Promotion Tools used in Reliance Fresh are:1. Premiums (gifts): Merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. A with pack premium accompany the product inside or on the package. A self liquidating premium is sold below its normal retail price to consumers who request it. 2. Frequency Programs: Programs providing rewards related to the consumers frequency and intensity in purchasing the companys products or services. 3. Prizes (Contests ,sweepstakes):prizes are offers of the chance to win cash, trips as a result of purchasing something. A contest calls for consumers to submit an entry to be examined by a panel of judges who selects the best entries sweepstakes asks consumers to submit their names in a drawing. 4. Tie in promotions: to or more brands or companies team upon coupons refunds and contests to increase pulling over. 5. Cross promotion: using one brand to advertise others non competing brands 6. POP and Demonstrations: POP demonstrations and presentations take place at point of purchase or sale.

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7. Price off: a straight discount off the list price on each item purchased during a stated time period. 8. Free goods: offs of extra cases of retail to customer who buy certain quantity or size 9. Price packs: offers to the customers saving off the regular price of the offered price. A reduced pack is a sold to product at single price. Banded Pack is two related products banded together such as tooth paste and tooth brush 10. Cash refund offers (refunds): provide a price reduction after purchase: consumer sends a specified proof of purchase like bill.

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Objectives

25

Objective of the study

Primary Objective
To study the promotional strategies in RELIANCE FRESH RETAIL.

Secondary Objectives
To study the effectiveness of promotional strategies that attracts customers. To determine the strength of Reliance and its brand. To study the convenience of promotional strategies.

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Need for study

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Need For Study

In the retail market, small changes can make or break you. This is what makes some people love owning retail stores and other people loathe it. Promotional strategies for retail are pretty unique. They really require a light touch, a sensitive eye, and constant attention to the smallest and most insignificant details.

Promotional strategy, in fact, encompasses almost every aspect of running and operating a store. When the market was good, you could afford to let little things slide. You could put off updating your retail displays, for example, or not use cutting-edge advertisements. It didnt matter there were so many customers that everyone was getting enough business to stay afloat. Nowadays, however, people are much more careful with their money. Using the most effective and the most cost-effective promotional strategies is crucial. Today when it comes to any business there are thousands of ways to promote it. The best thing to keep in mind, however, is we target demographic and investment requirements. Is Reliance Fresh trying to interest kids in your product? Does Reliance Fresh want to cater to the 40-50 year old crowd who visit retail stores? Much of Reliance Fresh promotion will be based on who exactly you are selling products? We find the effectiveness of promotional strategies for Reliance Fresh Retail.

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REVIEW OF LITERATURE

29

REVIEW OF LITERATURE

Indian retailing industry has seen phenomenal growth in the last five years (2001-2006). Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of Indian retail sector. RNCOS India Retail Sector Analysis (2006-2007) report helps clients to analyze the opportunities and factors critical to the success of retail industry in India. According to this years Global Retail Development Index India is positioned as the leading destination for retail investment. This followed from the saturation in western retail markets and we find big western retailers like Wal-mart and Tesco entering into Indian market. Indias retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010. There are about 300 new malls, 1,500 supermarkets and 325 departmental stores being built in the cities very soon. A shopping revolution is ushering in India where, a large population between 20-34 age groups in the urban regions is boosting demand by 11.1 percent in 2004-05 to an Rs 23,308 purchasing power. This has resulted in huge international retail investment and a more liberal FDI. RNCOS, in its market research report Indian Retail Sector An Outlook (2005-2010) analyzes the greatly divided Indian retail market and the trends in its business. Issues such as foreign investment restrictions, modern merchandizing in India, logistics and payment terms for distribution, role of channel members and growth trends in different regions are discussed. The market research report further analyzes the

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sustainability of the Indian retail sector and on the basis of 25 domestic and international companies the report has given a suitable business model. Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and around eight per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However, the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. Unorganized retailing is by far the prevalent form of trade in India constituting 98% of total trade, while organized trade accounts only for the remaining 2%. Estimates vary widely about the true size of the retail business in India. AT Kearney estimated it to be Rs. 4, 00,000 crores and poised to double in 2005. On the other hand, if one used the Governments figures the retail trade in 2002-03 amounted to Rs. 3, 82,000 crores. One thing all consultants are agreed upon is that the total size of the corporate owned retail business was Rs. 15,000 crores in 1999 and poised to grow to Rs.35, 000 crores by 2005 and keep growing at a rate of 40% per annum.3 In a recent presentation, FICCI has estimated the total retail business to be Rs. 11, 00,000 crores or 44% of GDP4. According to this report dated Nov. 2003, sales now account for 44% of the total GDP and food sales account for 63% of the total retail sales, increasing to Rs.100 billion from just Rs. 38.1 billion in 1996. Food retail trade is a very large segment of the total economic activity of our country and due to its vast employment potential; it deserves very special focused attention. Efficiency enhancements and increase in the food retail sales activity would have a cascading effect on employment and economic activity in the rural areas for the 31

marginalized workers. Thus even without FDI driving it, the corporate owned sector is expanding at a furious rate. The question then that arises is that since there is obviously no dearth of indigenous capital, what is the need for FDI? It is not that retailing in India is in the need of any technology special to foreign chains.

The Indian retail industry was, and continues to be, highly fragmented. According to the global consultancy firms AC Nielsen and KSA Technopak, India has the highest shop density in the world. In 2001 they estimated there were 11 outlets for every 1,000 people.7 further, a report prepared by McKinsey & Company and the Confederation of Indian Industry (CII) predicted that global retail giants such as Tesco, Kingfisher, Carrefour and A hold were waiting in the wings to enter the retail arena. This report also states that the Indian retail market holds the potential of becoming a $300 billion per year market by 2010, provided the sector is opened up significantly.8 it does not talk about creating additional jobs however, which should be the prime concern of the policy maker. According to Evolution of Food Retail Chains: The Indian Context (Nov. 2003) Retailing in India is gradually inching its way toward becoming the next consumer boom industry. The whole concept of shopping has altered in terms of format and buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing 32

working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.

Some Key Facts Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and around eight per cent of the employment. The market size of Indian retail industry is about US $312 billion- Organized retailing comprises only 2.8 per cent of the total retailing market and is estimated at around US$ 8.7 billion The organized retail sector is expected to grow to US $ 70 billion by 2010

Indian retailing industry has seen phenomenal growth in the last five years (2001-2006). Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of Indian retail sector. RNCOS India Retail Sector Analysis (2006-2007) report helps clients to analyze the opportunities and factors critical to the success of retail industry in India.

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Key Findings

- Organized retail will form 10% of total retailing by the end of this decade (2010). - From 2006 to 2010, the organized sector will grow at the CAGR of around 49.53% per annum. - Cultural and regional differences in India are the biggest challenges in front of retailers. This factor deters the retailers in India from adopting a single retail format. - Hypermarket is emerging as the most favorable format for the time being in India. - The arrival of multinationals will further push the growth of hypermarket format, as it is the best way to compete with unorganized retailing in India.

Key Issues and Facts Analyzed

The research report also addresses the issues and the facts that are critical to the success of Indian retail industry in general & organized retail industry in particular. - Evaluation of current market trends. - Profile discussion of key players in this sector. - Analysis of various challenges and opportunities before the industry. Key Highlights of the Report - What is the market size and scope of the Organized Retail in India? - What and where are the growth prospects and issues related to the industry? - What are the factors driving growth in this sector? - Size of organized market segment wise and its growth prospects.

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- Who are the major players in Indian Retail Industry, their presence and strategies being used by them and their market positioning? - What are the opportunities & challenges in front of the retailers in India and emerging trends there?

Key Players Analyzed

This section covers the key players currently operating in the Indian retail industry including Future Group, Trent Ltd, RPG Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd, Provogue India Ltd, Videocon Appliances Ltd., I.T.C. Ltd, Godrej Agrovert Ltd, and DCM - Hariyali Kisaan Bazaar. Information Sources Information has been sourced from namely, books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to access to more than 3000 paid databases.

Analysis Method The analysis methods include the following: Ratio Analysis, Historical Trend Analysis, Linear Regression Analysis using software tools, Judgmental Forecasting and Cause and Effect Analysis.

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Methodolog y

36

Methodology Research Design: Descriptive In Nature

The research purely describes the current scenario of the Reliance Fresh, its potential and all the possible combinations of the market forces that attract the customers. And so the research is purely descriptive in nature.

Sampling:
Sampling area: Chandigarh,mohali Sampling size: 100 people Sampling structure: Customers : 50

Reliance Employees : 50

Sampling method: Judgmental Sampling

Data gathering:
Primary Data: The primary data was collected using an interview schedule with the aid of structured questionnaire prepared with respect to the objective of the study. Secondary Data: through internet, Company publications & Books.

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Analysis & Interpretatio n

38

Analysis and Interpretation Data Characteristics

The sample data is collected from Chandigarh and mohali The sample size is 100 [Link] are Shopkeepers of kiryana, Reliance Employees, Customers.

1) Is Reliance Fresh user friendly in easy to search product

5= very good 4= good 3= Indifferent 2= poor 1= very poor A. Range Of Products Available: X 1 2 3 4 5 Total f 1 1 16 13 19 50 fx 1 2 48 52 95 195 fx 2 1 4 144 208 475 832

Population Mean = 4 Sample Mean = fx f

3.9

Assumption: To test whether Range of products is very important to all respondents while choosing the store..

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1. Sample size n=50 and as n >= 30. Therefore z test is applicable. 2. Standard deviation
2

fx 2 fx N N
2

832 195 = 50 50

= 16.64 15.21 = 1.20 1.20 = = 3. Standard Error: = .17 samplesize 50

4. Level of Significance : 5% Level of Confidence : 95 % 5. Two Tail Test is applied. 6. Hypothesis setting Ho : Xs = Xp Ha : Xs Xp 7. Zc = where Xs is Sample Mean and Xp is Population mean 3.9 - 4 .17

Sample mean Population mean Standard Error

= .59

Inference: Zc = .59 <

Zt = 1.96

So null hypothesis is accepted. Alternate is rejected. The difference in two means is insignificant. We can generalize that range of products is very important to all respondents.

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2). Availability of product

X 1 2 3 4 5 Total F 5 8 19 12 6 50 fx 5 16 57 48 30 156 fx 2 5 32 171 192 150 550

Population Mean = 4 Sample Mean = fx f

3.12

Assumption: Opinion of family/friends is most important to the respondents while choosing the store. 8. Sample size n=50 and as n >= 30. Therefore z test is applicable. 9. Standard deviation
2

=
=

fx 2 fx N N 550 156 50 50
2

= 11 9.73 = 1.13 10. Standard Error: =

1.13 = = .16 samplesize 50

11. Level of Significance : 5% Level of Confidence : 95 % 12. Two Tail Test is applied. 13. Hypothesis setting 41

Ho : Ha : 14. Zc =

Xs = Xp Xs Xp

where Xs is Sample Mean and Xp is Population mean 3.2 - 5 .17

Sample mean Population mean Standard Error

= 10.59

Inference: Zc = .75 <

Zt = 1.96

So null hypothesis is accepted. Alternate is rejected. The difference in two means is insignificant. We can generalize that Opinion of Family/Friends is important to the respondents.

3). Cleanliness of atmosphere

X 1 2 3 4 5 Total F 0 1 7 30 12 50 fx
0 1 7 30 12

fx 2
0 2 21 120 60

203

847

Population Mean = 4 Sample Mean = fx f

4.06

Assumption: To test whether Behavior of staff is most important to all respondents while choosing the store. [Link] size n=50 and as n >= 30. Therefore z test is applicable. [Link] deviation

42

fx 2 fx N N
2

832 195 = 50 50

= 16.64 15.21 = 1.20 1.20 = = [Link] Error: = .17 samplesize 50

[Link] of Significance : 5% Level of Confidence : 95 % 5. Two Tail Test is applied. 6. Hypothesis setting Ho : Xs = Xp where Xs is Sample Mean and Ha : Xs Xp Xp is Population mean 7. Zc = Sample mean Population mean = Standard Error 3.9 - 4 .17

= .59

Inference: Zc = .59 <

Zt = 1.96

So null hypothesis is accepted. Alternate is rejected. The difference in two means is insignificant. We can generalize that range of products is very important to all respondents.

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4) Which promotional scheme attracts customer most

Frequency Programs Free Goods Coupons Price packs Product warranties Tie in promotions Sample Demonstration

The prime motive for the customer to spend less and get more benefits. The promotional schemes which attract customer most is Free goods and then in the 2nd place they give priority to the frequency programs and then come the place of demonstration and sample and so on.

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5) Days you come here for shopping:-

25 20 15 10 5 0 da ily fortnig ht weekly m onthly

6) You become easily aware about the new schemes which Reliance fresh launch

45

3 5 3 0 2 5 2 0 1 5 1 0 5 0

yes no

7) What is good about Reliance fresh to attract the customers?

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As per analysis service of the company is the most important factor for Reliance Fresh. That good service of the company is the major factor that attracts customer most.

Factors attracting customer

35 30
% of Respondents 25

20 15 10 5 0 Brand Service Quality name

Factors
Reliance giving both service and good quality as the same valuation. This shows that Reliance Fresh concentrates on service and good quality for selling its products. The best thing which emphasis the sales is the service and good quality because retail sector mainly sales their products by the service and good quality. The company has given maximum importance to the service then to quality and good brand name to 3rd place and 4th to prices

Price

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8). Which are the most effective methods for promotion generally used at reliance fresh.

Frequency Programs Free Goods Coupons Price packs Product warranties Tie in promotions Sample Demonstration
The effective methods used by Reliance fresh for promotion which attract customer most is freegoods, Frequency programs, demonstration. In second place sample then in the last price pack, product warranties and coupons.

9) Term of promotional schemes which are in demand

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Term of promotion
40 35 30
% of 25 Respondents

20 15 10 5 0 1day 1 to 5 day 1 to 7 day

Days

The term of promotion are 1 day and 1-7 days are more acceptable in Reliance Fresh. Companys respondents about 70% have chosen it.

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10) Main company objectives:

Reliance Retail Objective

35
% of Respondents

30 25

Factors

20 15 10 5 0 Brand image Profit

Objectives

For brand image of Reliance Fresh has given a high percentage for 1st rank with 62.5 %. Most of the respondents have given brand image by segment the first rank and at the 2nd place they had given to the sales turnover as the major objective of the company. 3 rd objective is profit of the company.

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11). what type of customers are frequently visiting the store?

Type of customers

50 40
% of Respondents

30 20 10 0 Teenagers Family

Teenagers Old people Family

Mostly all the Retail given response that family is first priority and teenagers also then old people I 3rd place.

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Findings

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Findings
As per analysis good service of the company is the most important factor for the sales it helps to promote other products by educate the customer about the uses of products. Brand image by segment is the main objective of the companies after that it comes sales and profit. So, for achieving major percentage of market share reliance are trying different types of promotional strategies to reach all types of customer of the society. The most effective methods used by Reliance fresh for promotions are freegoods, Frequency programs and through demonstration. The prime motive is to give the reliance fresh customer maximum satisfaction and value for their money. The duration of promotional strategies for 1 day and 1-5days are more preferable in Reliance Fresh to attract more customers. The Retail given response that family is first priority because they get all the materials under one shop, teenagers are in second place due to the status symbol and in last place the old people. So its necessary to target the family by making strategy according to it.

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Scope of study

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Scope of the Study

1. The result of this research can be considered for using it in improved future
growth. The scope of the study is limited to Chandigarh and mohali 2. The scope of the project to assist Reliance Fresh retail to get an insight about promotional strategies which affect the decisions of customers. 3. This project would be useful for further causal and descriptive studies to formulate a scientific method of evaluation of the effectiveness of promotional strategies. 4. The study will help in improving the promotional strategies for the growth of Reliance Fresh retail and the convenience of the Reliance Fresh employees by these strategies.

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Limitations

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Limitations of the Project

When coming to the limitation of this project , the major limitation is that , when approaching a kiryana shop and speaking directly about there products they refuses to hear as it is a business where they are not suppose to reveal their shop details to strangers. So, we have to approach the kiryana shops as the customer who has to purchase products. There is large number of retail outlet in Chandigarh. Visiting to each outlet personally is not possible within a short period of time. So retail outlet has been selected on the basis of their potential sale. Only those outlets have been taken into consideration whose sale is considerably high. Since the questionnaire was a bit large, the customers was hesitating to answer as it would steal away their precious time. Since the sample size was small because of the time constraint, the results of the project cannot be expected to be accurate to cent percent. Since the shopkeepers are not literate in most of the cases it is difficult to get the answer of some very important question.

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Conclusion

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Conclusion
The size of the market has grown and the size of the middle class population in India is indeed vast and the existing player has tried to cover it. The opportunities before the players are therefore a plenty in terms of target audience. 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. 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, reliance 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. A true marketing organization pays attention not only to the communications, but also to the desired benefits of the product, its costs to the target audience, and where it will be available. Finally, the promotional messages must reach people where their ears are, not where the organization wants to place them. It is necessary to tweak the 4 P's for the convenience of the customer. From puppet shows to virtual reference, a true promotional strategy must be in place to optimize satisfaction of customer wants and 59

needs. Promotional strategies should make customers feel special for shopping. Then they will come back again!

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Recommend ation

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Recommendations
1. Implementation of electronic system for the display of updated price. Due to day to day variation in prices the customer get confuse. 2. Proper display of the products because it is difficult to find a product by customer. 3. In Reliance Fresh there is a limited quantity of a product sometime customer does not get it so according to the demand the quantity be increase. 4. Free home delivery service being provide so that good public relations being happen. 5. Increase the size of store at the case of access material it is difficult to store the material. 6. Installation of games to the children so that they enjoy to come there again & again. Also toys being given to the children like a Mc Donalds. 7. Use a electronic display for promotional schemes at the place of paper it helps to reduce the cost and it must be more attractive. 8. Adding variety so that customer does not go to other stores. 9. Create calendars of events it helps to promote the store. 10. Use Short messages (sms) for giving the information about the new schemes in the store. 11. Effective Promotion of Product is Business Cards & website. Through the website customer easily purchase a product online and also it boost the sale and promotion of the company.

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12. Use the other promotional techniques like a new product launch then its fragrance being spray in the retail shop so by fragrance attract by the product or it become a brand image in there mind.

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Bibliography

64

Bibliography

Books 1) Kothare, C.R, Research methodology Second Edition, wishwar prakashan, New Delhi (1997) 2) Malhotra Naresh K.,Marketing Research An Applied Orientation 3) Kotler Philip,Marketing management11th Edition. Website 1. [Link] 2. [Link] 3. [Link] 4. [Link] 5. [Link] 6. [Link] 7. [Link]

Questionnai re

Market survey
Name: Age. Rating on the following characteristics by checking expected services in Reliance Fresh:
ATTRIBUTES Very Good Good

indi ffer ent

Satisfa ctor

Poor

Is Reliance Fresh user friendly Availability Responsiveness

(a) (b) (a) (b) (a) (b) (c) (d) (e)

Easy to search product Easy to handle Of products Varieties of product Staffs interest in solving problems Staffs willingness to assist Knowledge in answering querie Response time to customers Personal attention to customers What type of atmosphere is here

2 3

Cleanliness

(a)

Select the appropriate answer:-

1. Which promotional scheme attracts you: a) Free Goods b) Coupons c) Frequency Programs d) Price packs e) f) g) h) i) Prizes Product warranties Tie in promotions Sample Demonstration

2. After how many days you come here for shopping:a) Daily b) Weekly c) Fortnight d) Monthly a) b) c) 3. What attracts you to come here:Brand name Service Price Quality 2. Is price of product be: a) High than market rate b) Equal to the market rate c) Less than the market rate. 3. How many points do you give to reliance retail from 1to5? --------------4. Are you become easily aware about the new schemes which Reliance fresh launch? a) Yes b) No 7. This store insists on error-free sales transactions and records. a) Yes b) No 8. Where was the last place you saw or heard an ad for (Store)? a) newspaper b) magazine c) TV d) radio

9. Do you think that Reliance fresh promotional schemes are? a) Entertaining b) Effective

c) Interesting d) Attractive

e) Informative f) Professional

Thank you

For Employees and Shopkeepers Shop name : Marketname Product warranties Tie in promotions Sample Demonstrat ion

1. What types of promotional schemes you use:a) Free Goods f) b) Coupons c) Frequency g) Programs d) Price packs h) e) Prizes i)

2. What is the term of promotional schemes which are in demand: a) 1 Day c) 1-7 Days b) 1-5 Days 3. Which scheme gives you a good profit margin:a) Free Goods g) Tie in b) Coupons promotions c) Frequency h) Sample Programs j) Demonstrat d) Price packs ion e) Prizes f) Product warranties 4: Which scheme do you think that attracts the customer most: --------------5. Did you provide any other facilities:a) Recharge Coupons b) Free home delivery c) Replacement guarantee

5. What are the companys objectives (please rank 1-3)

Factors Brand Image Sales turnover Profit

Rank

11 what type of customers are frequently visiting the store:a) Teenagers b) Old people c) Family

Thank you