retail rana new

8/3/2019 Retail Rana New

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A MINI PROJECT ON

Customer perception on private labels in RelianceFresh

Submitted to:Prof. Anitha K.

Submitted by:Rana Sarkar.

Regd No: 6091


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Executive Summary

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

producers 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

first most attractive retail destination globally from among thirty

emergent markets. It has made India the cause of a good deal of

excitement and the cynosure of many foreign and domestic eyes. The

entry of foreign and Indian retail giants like Wal-Mart, Metro, Reliance,Birla, Tata etc. made Indian market more competitive which is at cut

throat level. So how retailers can reach to their end customers, to win

the mind share and increase the basket size of each shopping trip.India

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 strongincome 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 with revenue expected in 2007 to amount US$ 320 billion and

is increasing at a rate of 5% yearly. A further increase of 7-8% is


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expected in the industry of retail in India by growth in consumerism in

urban areas, rising incomes, and a steep rise in rural consumption. It

has further been predicted that the retailing industry in India will amount

to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.

The growth of scope in the Indian retail market is mainly due to the

change in the consumers 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.

Reliance Retail is the retail chain division of reliance industries of India

which is headed by Mukesh Ambani. Reliance has entered into this

segment by opening new retail stores into almost every metropolitan and

regional area of India. Reliance plans to invest Rs 25000 crores in the

next 4 years in their retail division and plans to begin retail stores in 784

cities across the country. The reliance fresh supermarket chain is RIL s

Rs 25,000 crore venture and it plans to add more stores across different

geography, and eventually have a pan-India footprint by year 2011to the

company.

AS The twentieth century has come to and we have moved in to third

millennium , we can see many development and changes taking place

around us with all the industries and firms within each industry trying to

keep pace with all the industries and firm within each industries trying to

keep pace with the changes and diverse need of people . Marketer

have regarded customer as the king and evolved all activities to


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satisfy him or her, this concept gaining more momentum and importance

today.

More than a century ago, the father of our nation, Mahatma Gandhi, had

made visionary and deep meaningful statement at Johannesburg, South

Africa in 1980. A customer is the most important visitor of our

premises. He is not dependent on us .We are dependent on him He

is not interruption on our work. He is the purpose of it and not an

outsider on our premises. He is a part of it. We are not doing him

favour by serving him.

Today the entire firm engaged in a process of creating a life time value

and relationship with customers. This report start with discussion on the

diversity of consumer behaviour and the need for studying consumer

buying behaviour and consumer as a related field of marketing .this can

be largely be attributed to the prevailing market situation .Today thecompany image is built and made known by its customers. Thus

success of the firm determined how effective it has been in meeting the

diverse consumer need and wants by treating each customer as unique

and offering products and services to suit has or her need.

Consumer buying behaviour will be a primary force in determining howthis transition will evolve. Getting closer to the customer in todays highly

competitive landscape is essential for the entire industry and is no longer

just a retail issue. It requires all organisations across the supply chain to

work as a single enterprise, sensing and responding rapidly to consumer

demand in a co-ordinated manner. Detailed analysis of the changing

patterns of consumer demand, shopping trends.


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This research report is based on to know the:

1. Customer perception on private labels of Reliance fresh.

2. Future prospects of Private labels.

Research Objective

To study the consumer perception on private labels of reliance

fresh customer.

To know on what kind of product consumer prefer private brands.

Research Methodology

Research Limitations:

To make a comprehensive study of Reliance fresh & to know the

customer perception on private labels of Reliance Fresh within a short

span of time was a very big challenge.

Type of research

Descriptive type research has used to complete the project. This

research is based on fact finding enquires and the variables are totally

independent and uncontrollable.


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Data collection:

Primary Data

Primary data of research are collected from direct resources (customer

of Reliance fresh) through questionnaire.

Secondary Data

Secondary Data which are used for research to know the history scope

of Retail industry are collected from already available resources like net

and other sources.

Sampling technique

Random sampling is used for research project. I have given equal

weightages to my all respondent and chose them randomly without any

biased like gender, age, income culture.

Sample size

20 respondents has selected as sample size for research.

Data representation technique and tools

Columns chart & Pie chart has used for representation.


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Scope of Study

In order to be truly successful, retailers must advance from the generic

or store brand mind-set of the past to a new private label paradigm.Many retailers have begun to describe their private label brands as

own brands because there is recognition that these proprietary,

exclusive offerings are tools that represent momentous power and

potential for the retail store. Own brands are articulated and developed

in a way that they not only fit with the brand promise of the retail store,

but if effective, they also give consumer drivers a key point of departure

to enhance and celebrate the overall retail brand proposition to keep

consumers coming back for more.

In the past, private label was a moniker for consumer products that were

lower priced and lower value. Retailers fostered them as they

represented a growth engine because of high returns in terms of

margins and profitability on a relatively small investment.

The study will definitely help to know the perception of the customer

regarding private brands and also the future prospects of private brands

in retailing. As most of the retail companies concentrate on private labels

so there is enough scope to know the future prospects as well as

customer perception of private labels.


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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 6, 2002

RELIANCE GROUP

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is

India's largest private sector enterprise, with businesses in the energy

and materials value chain. Group's annual revenues are in excess of

USD 27 billion. The flagship company, Reliance Industries Limited, is a

Fortune Global 500 company and is the largest private sector company

in India.

Backward vertical integration has been the cornerstone of the evolution

and growth of Reliance. Starting with textiles in the late seventies,

Reliance pursued a strategy of backward vertical integration - in

polyester, fibre intermediates, plastics, petrochemicals, petroleum


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refining and oil and gas exploration and production - to be fully

integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas,

petroleum refining and marketing, petrochemicals (polyester, fibre

intermediates, plastics and chemicals), textiles and retail.

Reliance enjoys global leadership in its businesses; The Group exports

products in excess of USD 15 billion to more than 100 countries in theworld. There are more than 25,000 employees on the rolls of Group

Companies. Major Group Companies are Reliance Industries Limited

(including main subsidiaries Reliance Petroleum Limited and Reliance

Retail limited) and Reliance Industrial Infrastructure Limited.

Reliance Industries Limited is India's largest private sector conglomerate

(and second largest overall) with an annual turnover of US$ 35.9 billion

and profit of US$ 4.85 billion for the fiscal year ending in March 2008

making it one of India's private sector Fortune Global 500 companies,

being ranked at 206th position (2008). [1] It was founded by the Indian

industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in

introducing financial instruments like fully convertible debentures to the

Indian stock markets. Ambani was one of the first entrepreneurs to draw

retail investors to the stock markets. Critics allege that the rise of

Reliance Industries to the top slot in terms of market capitalization is

largely due to Dhirubhai's ability to manipulate the levers of a controlled

economy to his advantage.

Though the company's oil-related operation forms the core of its

business, it has diversified its operations in recent years. After severe
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Reliance_Industries#cite_note-0#cite_note-0http://en.wikipedia.org/wiki/Reliance_Industries#cite_note-0#cite_note-0http://en.wikipedia.org/wiki/Dhirubhai_Ambanihttp://en.wikipedia.org/wiki/Dhirubhai_Ambanihttp://en.wikipedia.org/wiki/Reliance_Industries#cite_note-0#cite_note-0http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/India


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differences between the founder's two sons, Mukesh Ambani and Anil

Ambani, the group was divided between them in 2006. In September

2008, Reliance Industries was the only Indian firm featured in the

Forbes's list of "world's 100 most respected companies"

Formats of Reliance RETAIL

RelianceFresh,

Reliance Mart,

Reliance Digital,

Reliance Trendz,

Reliance Footprint,

Reliance Wellness,

Reliance Jewels,

Reliance Timeout and Reliance Super,
http://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Anil_Ambanihttp://en.wikipedia.org/wiki/Anil_Ambanihttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Anil_Ambanihttp://en.wikipedia.org/wiki/Anil_Ambanihttp://en.wikipedia.org/wiki/Mukesh_Ambani


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RELIANCE FRESH

APKA FRESH APKE PADAOS ME

Reliance fresh is the retail chain division of reliance industries of India

which is headed by Mr. Mukesh Ambani. Reliance has entered into this




cities across the country. The reliance fresh supermarket chain is RILs


g, and eventually have a pan-India footprint by year 2011. The super

marts will sell fresh fruits and vegetables, staples, groceries, fresh juice

bars and dairy products and also will sport a separate enclosure and

supply-chain for non-vegetarian products. Besides, the stores would

provide direct employment to 5 lakh young Indians and indirect job

opportunities to a million people, according to the company. The

company also has plans to train students and housewives in customer

care and quality services for part-time jobs


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BACK GROUND

We can see many examples of businesses where, first we grow and

then think of expanding butReliance is quite different. Reliance has developed such huge amount of

resources and capital over the years that whenever it steps into any

segment it is not required to wait for growing signal, thats why it always

thinks of expanding without any boundaries. Reliance retail is next Step

by RIL which will be a pan India project.

Reliance Fresh is the retail chain division of Reliance Industries of India

which is headed by Mr. Mukesh Ambani. Reliance has entered into this




cities across the country. The Reliance Fresh supermarket chain is RILs


g, and eventually have a pan-India footprint by year 2011.

The super marts will sell fresh fruits and vegetables, staples, groceries,

fresh juice bars and dairy products and also will sport a separate

enclosure and supply-chain for non-vegetarian products. Besides, the

stores would provide direct employment to 5 lakh young Indians and

indirect job opportunities to a million people, according to the company.

The company also has plans to train students and housewives in

customer care and quality services for part-time jobs.

The company is planning on opening new stores with store-size varying

from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and

vegetables, staples, FMCG products and dairy products. Each store is

said to be within a radius of 1-2 km of each other, in relation to the

concept of a neighbor store. However, this is only the entry roll-out that


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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 prevailing in UP, West Bengal

and Orissa, It was mentioned recently in News Dailies that, Reliance

Retail is moving out stocking. Reliance Retail has decided to minimize

its exposure in the fruit and vegetable business and position Reliance

Fresh as a pure play super market focusing on categories like food,

FMCG, home, consumer durables, IT, wellness and auto accessories,

with food accounting for the bulk of the business.

The company may not stock fruit and vegetables in some states, Orissa

being one of them. 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 mainfocus would be fresh produce like fruits and vegetables at a much lower

price, but also spoke at length about its farm-to-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.


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Product Mix of Reliance fresh

Reliance fresh deals with a variety of products which range from Fruits,

vegetables to staple foods and they also deals in Non-food items like

Shampoo, soaps and many more.

PRODUCT MIX OF RELIANCE FRESH

FRUITS &VEGETABLES

PF, BEVERAGE, F&V

STAPLE

NON-FOOD FMCG


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Pic: Private label Available at Reliance Fresh.

Pic : private label Rice available at Reliance Fresh.


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INDUSTRY PROFILE

The Indian Retail market is worth a whopping Rs 1500000 crores. If one

has to divide between the organized and unorganized sectors the major

contribution comes from the unorganized sector, which contributes close

to 98% of the total retail market. The balance of 2% amounts anywhere

between 18-2000 crores.

The difference between organized and unorganized sectors in the US &

some of the Far East Asian countries are pretty low unlike in India. With

the advent of seasoned players in the field of retail in India, the gap is

likely to be abridged in the coming years.

The difference between them is 85:15 in favour of organized sector in

the US and 81:19 in the favour of the organized sector in Taiwan.

The employment opportunities in retail are pretty high. But again the

ratio of organized and unorganized is skewed towards the unorganized

sector. While the organized retail sectors deploys 500000 people & theunorganized sector deploys close to 80 times the workforce.

Factors that influence the growth in retail

The DINK/HINK families, working women, working parents and the rising

disposable income has contributed to the growth of Retail across. The

middle-income group is the fastest growing segment in the country

today. Further the electronic media is also aiding the growth of the Retailindustry.

To summarize the top 6 factors that drive the growth of the retail industry

in India would be as follows:

The Demographics

Lifestyles

Needs and Desires

Shopping Attitudes and Behaviour


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Retailers action

Environmental Factors

These six factors clubbed with a co-coordinated logistics make the sale

happen. As in any industry there is a social commitment also to be

fulfilled. These can be recapitulated as under:

Quality products

Competitive prices

Wide range to choose from

Employment opportunities that are created

The economy would experience sea of change and

Would mean a WIN WIN situation to everyone

Retail types

There are three major types of retailing. The first is the market, a

physical location where buyers and sellers converge. Usually this isdone on town squares, sidewalks or designated streets and may involve

the construction of temporary structures (market stalls). The second form

is shop or store trading. Some shops use counter-service, where goods

are out of reach of buyers, and must be obtained from the seller. This

type of retail is common for small expensive items (e.g. jewelry) and

controlled items like medicine and liquor. Self-service, where goods maybe handled and examined prior to purchase, has become more common

since the Twentieth Century. A third form of retail is virtual retail, where

products are ordered via mail, telephone or online without having been

examined physically but instead in a catalog, on television or on a

website. Sometimes this kind of retailing replicates existing retail types

such as online shops or virtual marketplaces such as eBay or Amazon.
http://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Self-servicehttp://en.wikipedia.org/wiki/Online_shophttp://en.wikipedia.org/wiki/EBayhttp://en.wikipedia.org/wiki/Amazon.comhttp://en.wikipedia.org/wiki/Amazon.comhttp://en.wikipedia.org/wiki/EBayhttp://en.wikipedia.org/wiki/Online_shophttp://en.wikipedia.org/wiki/Self-servicehttp://en.wikipedia.org/wiki/Market


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Top Retailer Worldwide

Rank Retailer Home Country

1 Wal-Mart Stores, Inc. U.S.A.

2 Carrefour Group France

3 The Kroger Co. U.S.A.

4 The Home Depot, Inc. U.S.A.

5 Metro Germany

(Source: Stores/Deloitte Touche Tomahatsu)

RETAIL SECTOR IN INDIA

As the corporate the Piramals, the Tatas, the Rahejas, ITC Ltd,S.Kumars, RPG Enterprises, Shoppers Stop, Pantaloons, Reliance

Retail, Vishal Mega Mart, Aditya Birla Group, Subhiksha, Landmark

Group, True Mart race to revolutionize the retailing sector, retail as an

industry in India is coming alive.

Across the country, retail sales in real termss are predicted to rise more

rapidly than consumer expenditure during 2003-08. The forecast growthin real retail sales during 2003- 2008 is 8.3% per year, compared with

7.1% for consumer expenditure. Modernization of the Indian retail sector

will be reflected in rapid growth in sales of supermarkets, departmental

stores and hyper marts. Sales from these large-format stores are to

expand at growth rates ranging from 24% to 49% per year during 2003-

2008, according to a latest report by Euro monitor International, a

leading provider of global consumer-market intelligence.


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A. T. Kearney Inc. places India 6th on a global retail development index.

The country has the highest per capita outlets in the world - 5.5 outlets

per 1000 population. Around 7% of the population in India is engaged in

retailing, as compared to 20% in the USA.

The factors responsible for the development of the retail sector in

India can be broadly summarized as follows:

Rising incomes and improvements in infrastructure are enlarging

consumer markets and accelerating the convergence of consumer

tastes.

Looking at income classification, the National Council of Applied

Economic Research (NCAER) classified approximately 50% of the

Indian population as low income in 1994-95; this has declined to

17.8% in 2006-07.

Liberalization of the Indian economy which has led to the opening

up of the market for consumer goods has helped the MNC brandslike Kellogg, Unilever, Nestle, etc. to make significant inroads into

the vast consumer market by offering a wide range of choices to

the Indian consumers.

Shift in consumer demand to foreign brands like McDonalds, Sony,

Panasonic, etc.

The internet revolution is making the Indian consumer more accessibleto the growing influences of domestic and foreign retail chains. Reach of

satellite T.V. channels is helping in creating awareness about global

products for local markets. About 47% of Indias population is under the

age of 25; and this will increase to 55% by 2015. This young population,

which is technology-savvy, watch more than 50 TV satellite channels,

and display the highest propensity to spend, will immensely contribute to

the growth of the retail sector in the country. As India continues to get


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strongly integrated with the world economy riding the waves of

globalization, the retail sector is bound to take big leaps in the years to

come.

The Indian retail sector is estimated to have a market size of about $

180 billion; but the organized sector represents only 3% share of this

market. Most of the organized retailing in the country has just started

recently, and has been concentrated mainly in the metro cities.

India is the last large Asian economy to liberalize its retail sector. In

Thailand, more than 40% of all consumer goods are sold through the

super markets and departmental stores. A similar phenomenon has

swept through all other Asian countries. Organized retailing in India has

a huge scope because of the vast market and the growing

consciousness of the consumer about product quality and services.

A study conducted by Fitch, expects the organized retail industry to

continue to grow rapidly, especially through increased levels ofpenetration in larger towns and metros and also as it begins to spread to

smaller cities and B class towns. Fuelling this growth is the growth in

development of the retail-specific properties and malls. According to the

estimates available with Fitch, close to 25mn sq. ft. of retail space is

being developed and will be available for occupation over the next 36-48

months. Fitch expects organized retail to capture 15%-20% marketshare by 2010.

A McKinsey report on India says organized retailing would increase the

efficiency and productivity of entire gamut of economic activities, and

would help in achieving higher GDP growth. At 6%, the share of

employment of retail in India is low, even when compared to Brazil

(14%), and Poland (12%).


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Total Private Consumption Expenditure in India 375 Billion USD

Retail Sale 205 Billion USD

Organized Retail 6.2 Billion USD (3%)

Retailing 35% of GDP

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 roof.Examples include Shoppers Stop, Piramyd, Pantaloon.

Specialty Stores:Chains such as the Bangalore based Kids Kemp, the

Mumbai books retailer Crossword, RPG's Music World and the TimesGroup's music chain Planet M, are focusing on specific market segments

and have established themselves strongly in their sectors.

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 productcategory can range from a variety of perishable/ non-perishable goods.

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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Department Stores: Departmental Stores are expected to take over

the apparel business from exclusive brand showrooms. Among these,

the biggest success is K Raheja's Shoppers Stop, which started in

Mumbai and now has more than seven large stores (over 30,000 sq. ft)

across India and even has its own in store brand for clothes called Stop!.

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% 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.

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.

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

brands across a single product category. These usually do well in busymarket places and Metros.


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Review of Literature

Indias retail growth was largely driven by increasing disposable incomes,

favourable demographics, changing lifestyles, growth of middle class

segment and a high for penetration into urban and rural markets. However,

with the onset of global financial crisis, Indian retailers have been suffering

from the effects of rapid credit squeeze high operating costs and lower

customer confidence.

In the past few years Indian retail journey seemed picture perfect with the

most attractive stops this is still unexploited and under penetrated.

Favourable demographics, steady economic growth, easy availability of

credit, and large scale real estate development were fuelling the growth of

Indias approximately USD 25 billion organized retail market. The

opportunity was there for all to see and India was the destination of choice

for top global retailers. In this environment, Indias own blue chip companies

like Reliance, Bharti and RPG diversified to add retail to their sector profile.

All things considered, it was a good time for Indian retail.

The definition of private label branding has evolved significantly over

time. Some would argue the term private label is a misnomer of great

proportions. There is no question that the words private label

acknowledges the birth, history and existence of generic and store

brands. Yet, the term does not adequately capture the extent to which

private label has progressed. Today's retail marketers are managing

their proprietary brands with the same combination of care and

innovation as manufacturers of national brands. Private label brands

were traditionally defined as generic product offerings that competed

with their national brand counterparts by means of a price-value

proposition. Often the lower priced alternative to the real thing, private

label or store brands carried the stigma of inferior quality and therefore


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inspired less trust and confidence. Yet, they still grew and prospered by

providing consumers lower priced options for what was often a low

involvement purchase decision. Retailers continued to push more and

more private label products into different categories of the marketplace

because they represented high margins and the promise of profitability

with little to no marketing effort. Private label brands have clearly

become a more instrumental priority for todays retailers. They are

starting to diversify their offering beyond the expected, enabling them to

compete more effectively in existing product categories and foray into

new and different product categories that have traditionally been

dominated by national brand players.

In many instances, private labels have surpassed a national brands

capacity to deliver on visibility, consumer interest, involvement and

appeal. Proprietary brand decision makers are often able to command

close to parity or parity pricing for their products, without articulating cost

as the differentiating factor. This represents a point of departure from the

past: there is an acknowledgement that todays proprietary brands have

the ability to transcend the negative baggage and problems of traditional

store brands, creating unique, resonant benefit propositions for

consumers. In order to be truly successful, retailers must advance from

the generic or store brand mind-set of the past to a new private label

paradigm. Many retailers have begun to describe their private label

brands as own brands because there is recognition that these

proprietary, exclusive offerings are tools that represent momentous

power and potential for the retail store.

Today in the present scenario retail store offer different kinds of brand

under one roof they are termed as Store, umbrella and Individual brands


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Store brands are a line of products sold by a retailer under a single

marketing identity. They bear a similarity to the concept of House

brands, Private label brands (PLBs) in the United States, own brands in

the UK, and home brands in Australia and generic brands. An umbrella

brand is an overarching brand used across multiple related products.

Umbrella branding is also known as family branding. A good example

is AMUL - Amul Butter, Amul Cheese, Amul Milk, Amul Icecream, Amul

Chocolates etc. Individual branding, also called individual product

branding or multibranding, is the marketing strategy of giving

each product in a portfolio its own unique brand name. Examples of

individual product branding include Procter & Gamble, which markets

multiple brands such as Pampers, and Unilever, which markets

individual brands such as Dove.

In India, the growth of private labels has been phenomenal and is slowly

gaining more store space. Aditya Birla Retail, which operates the More

for you food and grocery chain, is reportedly pursuing strategies to

increase its private label sales from the current 3% to 10-15% of total

sales in the next two to three years. During the course of this story,

DARE visited several such retail outlets. Here is a pen picture of what

we found.
http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Family_brandinghttp://en.wikipedia.org/wiki/AMULhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_portfoliohttp://en.wikipedia.org/wiki/Brand_namehttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Pampershttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Dove_(brand)http://en.wikipedia.org/wiki/Dove_(brand)http://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Pampershttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Brand_namehttp://en.wikipedia.org/wiki/Product_portfoliohttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/AMULhttp://en.wikipedia.org/wiki/Family_brandinghttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdom


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Private labels are slowly becoming the protagonist in the big Indian retail

growth story. Taking cue from the West, Indian retailers are also

churning out newer ways to increase their profit marginsone such

initiative is the introduction of in-house brands. With Indian customers

increasingly accepting these private label brands, they would soon be

major contributors to the profits of Indian retailers.


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DATA INTERPRETATION

(1). Gender of the consumer

Data Collected-

Data collected for this questionnaire to know

the gender of customer of reliance fresh.

ANALYSIS

Data collected for project from 20 responded in which 5

are female which are 25% and 15 are male which are 75% of total

respondent

Interpretation-

In total respondent we analyses that most of the

customer in this store is male and their demand always consider at the

time of taking the decision. Company should try to attract female

customer by provide new scheme to their customer

75%

25%

Gender of respondents

Male Female

Male & Female

15 5


28/44

(2). Age of customer

10-20 21-35 36& above

2 18 0

Data Collected-


the age of customer of reliance fresh.

ANALYSIS

Data collected for project from 20 responded in which 2

are the age between 10-20 which are 10% and 18 are between age of

21-35 which are 90%and 0 are between age of 36 & above

Interpretation-

In total respondent we found that most of the

customers are youth. In my observation I found that most new people

believe in convenience shopping and it help the company to keep

management in such way, which understand the problem of customer

easily and rectify the problem effectively.

0

5

10

15

20

10-20 21-35 36& above


29/44

(3). How often do you shop in Reliance fresh ?

Data Collected-

Data collected for this questionnaire to know the

shopping behaviour of customer of reliance fresh.

ANALYSIS

Data is collected from 20 responded in which 2 are like

to purchase daily which is 10% and 10 are likely to purchase weekly

which is 50% and 5 are likely to purchase fortnightly which is 15% and at

last 3 of them prefer to do purchase once in a month which is 25% of

total respondent

Interpretation-

Out of the total respondent i analysed that most of

the customer are likely to purchase on weekend. In my observation I

found that more schemes should be provided on weekend to epitomize

the sales.

10%

50%

25%

15%

Daily Weekly Forthnightly Once in a month

Daily Week Fortnightly Once in

month

2 10 5 3


30/44

(4). what do you mostly shop for at mentioned store?

Vegetable Grocery Cosmetic

product

All product

3 9 5 2

Data Collected-


the products which are like to purchase by the customer.

ANALYSIS

Out of 20 respondent 2 customer purchase all product

which is 10% and 3 purchase vegetables which is 15% and 9 purchase

grocery which is 45%, out of the total respondents 5 respondents

purchase cosmetic product which account for 25% of total respondent

Interpretation-

Of the total respondent analysed most of the

customer like to purchase grocery product in the store. Company should

try to retain the customer and should increase the variety of grocery

product at lower price compared to other convenience stores.

15%

50%

25%

10%

Vegetables Grocery Cosmetic products All products


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(5). what attribute of product do you prefer while purchasing

a product?

Quality brand Price Looks

6 4 7 3

Data Collected-

Data collected from this questionnaire to

know the attribute of the product which is most preferred while

making a purchase.

ANALYSIS

Out of 20 respondent 4 customer believe in reliance brand which is

20% and 3 prefer looks while make a purchasing decision which is

15% and 6 prefer quality product which is 30%, 7 respondent

consider price which are 35% of the total respondents.

Interpretation

In total respondent we analyses that most of the

customer are believe in reliance brand like to purchase qualitative

product in stop shop. Here I observed that people want to purchase

fresh and original product and want better service. Here it can be

said that customer of Alwal are price sensitive and they take their

purchasing decision majorly based on price factor.

30%

20%35%

15%

Quality Brand Price Looks


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(6). which store do you keep in preference for purchasing?

Localmarket

Reliance fresh Food baazar More

6 7 4 3

Data Collected-

Data collected from this questionnaire to know

the preference of the purchasing (comparison of store to other).

ANALYSIS

Out of the Data collected 6 respondents prefer local

market for making their purchase which is 30% and 7 are like to

purchase from reliance fresh which is 35% and 4 are likely to purchase

from Big bazaar which is 20.%, 3 are likely to purchase from More

which accounts for 15% of total respondent.Interpretation

In my observation I found till today organised

retail sector didnt penetrate the market. Company should try to open

new convenience store and provide more scheme, good service as well

as low price to customer to penetrate into the market. Initial it may be

costlier, but it will give long term benefit.

0

5

10

Local Market Reliance

Fresh

Big bazaar More

Chart Title

Series1


33/44

(7) How likely are you to recommend Reliance Fresh to a friend orrelative? Would you say the chances are?

Data Collected-


know how likely they would recommend reliance fresh to a friend or

relative.ANALYSIS

The Data is collected from 20 respondent in which 4

customer say that the probability of recommending reliance fresh to

their friends for shopping is excellent which is 20% and 6 say good

which is 30%, 8 say fair which is 40% and 2 customer are those who

say their probability of recommending Reliance fresh to their friends

for shopping is poor and which accounts for only 10%.

Interpretation

In my observation I found that only 20% customer are fully satisfied

from the store company so the number is low and the organization

should take certain steps which will delight the customer and make

them satisfied in the due course of time and transform them into

loyal bunch of customers.

20%

30%40%

10%

Excellent Good Fair Poor

Excellent Good Fair Poor

4 6 8 2


34/44

(8) Do you prefer private labels in retail store?

Data Collected-


know whether customer prefer private labels in Retail stores or not.

ANALYSIS

Here the data is collected from 20 respondents to know their preference

for private labels offered in Retail chains where it is found that 13

respondents say that they prefer private labels which accounts for 60%

of the total respondents and the rest 8 respondents does not prefer

private labels which accounts for 40% of total respondents.

Interpretation

In my observation retail store should communicate the benefits of private

brands and should also offer various discount on the purchase of private

labels which will definitely motivate customer to buy private labels.

Yes

60%

No

40%

Yes & No

12 8


35/44

(9) Why do you prefer private labels?

Data Collected-


know why customer prefers private labels in Retail stores or not.

ANALYSIS

Here the data is collected from 20 respondents to know why they prefer

private labels offered in Retail chains where it is found that 7respondents

say that they prefer private labels because of low price which accounts

for 35% of the total respondents and 5 respondents prefer private labels

because of quality factor which accounts for 25% of total respondents.4

respondents prefer private labels because of the quantity they get drives

them to purchase private labels which is 20% and the rest 4 respondents

feel that they pay for they get which accounts for 20%

InterpretationIn my observation retail store should communicate the benefits of private

brands and should also offer various discount on the purchase of private

labels again it is evident that customers of Alwal area are price

conscious.

Price

35%

Quality25%

Quantity

20%

Valu for money

20%

Price Quality Quantity Value for

money

7 5 4 4


36/44

(10) On what kind of product do you prefer private labels?

Data Collected-


know on what kind of product customer prefer private labels in

Retail stores.

ANALYSISHere the data is collected from 20 respondents to know on what kind of

product customer prefer for private labels offered in Retail chains where

it is found that 4 respondents say that they prefer private labels for

FMCG products which accounts for 20% of the total respondents and 10

of the respondents does prefer private labels when they purchase

Grocery items which accounts for 50% of total respondents only 1

respondent said that he preferred private labels for purchasing of FMCD

products which is just 5% of total respondents and the rest 5respondents say that they prefer private labels when they purchase

Accessories.

InterpretationIn my observation retail store should concentrate more on offering

private labels in grocery items as most of the customers prefer private

labels in grocery items and retailer should also focus on Accessories as

many customers do prefer private labels when they go for accessories.

FMCG

20%

Grocery

50%FMCD

5%

Accessories

25%

FMCG Grocery FMCD Accessories

4 10 1 5


37/44

11. purchasing of Private labels give you same kind of

satisfaction?

Data Collected-


know whether customers are satisfied or not on the purchase of

private labels in Retail stores.

ANALYSIS

The data is collected from 20 respondents where it is found that 6

respondents are satisfied with private labels which is 30% whereas 4

respondents said that they are not satisfied which is 20% and 7 of them

said that they are sometimes satisfied which accounts for 35% and at

last 3 respondents say that are never satisfied with private labels

products which accounts for 15% of total respondents.Interpretation

It is observed that all customers who use private labels 30% are satisfied

whereas 35% are sometimes satisfied and sometimes not so Reliance

fresh should take steps to improve the quality as well as offer the

product at lower price compared to competitor and at the same time

should promote those private label products efficiently.

Yes

30%

No

20%

Sometime

35%

Never

15%

Yes No Sometime Never

6 4 7 3


38/44

Conclusions followed by recommendations form the basis of the report

more solid. The conclusion proves the analysis that is carried out in the

report and on the basis of these conclusions, recommendations are

given.

During the course of the study it was found that though Reliance fresh is

gaining popularity but due to the less concentration on the management

of customer data base it is posing problem to Reliance fresh to tap the

opportunity that is available in the present market scenario.

In the survey and analysis it was found that the preference of customers

of the for private labels depends on variety of factors like Need, Cost,

Quality, Durability, Product range and some other factors.

Few of the factors that can be put into consideration in order to make the

private labels of Reliance fresh successful among people.

Advertisements

The organization should also concentrate upon the Advertisement

strategies and should come up with the innovative ads.

Name recall amongst the Consumer Categories is low because of

less frequency of the TV advertisements.

The organization should have customer data base so that

information about offers can be conveyed to the customer and

customer segregation can also be done.

The Retailing industry is booming. In order to tap the potential

market, the Company can advertise in a magazine named like


39/44

Daily news record. This will help in showcasing the products of

the magazine. This can add an extra spice to sales

In store display and the use of the colors full display of the product

should be increase especially of private labels that the retailer

offers.

Reliance fresh have a very good plus point regarding the place

that the store contains compare to the other stores in the city the

effective use of the store should be done effectively showcasing

their private label products so that more and more people canhave access to the private labels offered by them.

Example Kiosks should be placed displaying the private labels

product which will have psychological effect on the consumers.

Giving free samples of the product to the customer for testing and

if it is successful then it will help to boost the sales of private labels

product.

PLACE

Reliance fresh have very good coverage geographically where it is

operating and it can utilize this advantage to tap the market.

The display of the own brand must be in proper place to be get

notice by the customers .In place of the entrance in crowded place

to get the proper view by the customers

The back side of the bill should be used for the purpose of the

promotion of the own brand promotion

The plastic carry bag of the big bazar should also be used for the

promotional activity of the home product


40/44

Effective use of the csd for announcement of the name of the

product to get notice by the customers

Separate card in the name of (MAGIC CARD) for the purchase of

own brand product only

PRODUCT

Though the products of the Reliance fresh is relatively good

compare to the leading product players in the market people when

private label product is concerned and it will definitely help them to

elevate the sales of their offerings with proper backing of

advertisement and promotional activities.

PRICE

Company should focus on their Price. It should know thecompetitors price and according to that there should be a proper

action to decide the price and discount offers.

Though the prize of the product is relatively less compare to the

other brand but people are not willing to buy because of the lack of

knowledge by the customer


41/44

CUSTOMER SERVICES

On the weekends mostly, there is long queue for the billing which

takes a huge time so there should be an increment in the number

of cash counters.

As it was found that Reliance fresh stores are having its operation

in residential areas so home delivery can also be done in order to

delight the customer and enhance their experience.

So all in all Reliance fresh should take effective action to promote their

private labels by efficiently communicating the benefits in using their

private label products in various segments of their offering and this could

be done by proper utilization of information technology, advertisement

tools and so on. They should also provide discount to customers so that

customers get motivated to buy private label products.


42/44

Bibliography

Referred books-

Marketing Research

PaneerselvamResearch Methodology C.R KothariPhilip Kotler (2009), Principles of Marketing, 13th Edition, Pearson

Referred site-

www.ril.com

www.google.comwww.wickipedia.com
http://www.ril.com/http://www.ril.com/http://www.google.com/http://www.google.com/http://www.wickipedia.com/http://www.wickipedia.com/http://www.wickipedia.com/http://www.google.com/http://www.ril.com/


43/44

Appendix

RelianceFresh

Questionnaire

NAME-

GENDER-AGE - Monthly income-

1- How often do you shop at reliance fresh?

Daily ( ) week ( ) fortnightly ( ) once in month ( )

2- What do you mostly shop for at mentioned store?

Vegetables ( ) Grocery ( ) cosmetic product ( )

3- Preference of shopping

Quality ( ) Brand ( ) Price ( ) Private labels

4- What attribute of product do you prefer while purchasing a product?

( ) Quality ( ) price ( ) Quantity ( ) Looks

5- Which store do you keep in preference for purchasing?

Reliance Fresh ( ) Food bazaar ( ) More ( ) Local market


44/44

6- How likely are you to recommend Reliance Fresh to a friend orrelative? Would you say the chances are?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

7- Do you prefer private labels in retail store?

( ) Yes ( ) No

8- Why do you prefer private labels?

( ) price ( ) quality ( ) quantity ( ) value for money

Yes ( ) No ( ) Equal ( ) no idea ( )

9 On what kind of product do you prefer private labels?

Apparels ( ) FMCD ( ) FMCG ( ) Grocery ( )

10- Purchasing of Private labels give you same kind of satisfaction.

Yes ( ) No ( ) some time ( ) Never ( )

retail rana new

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