A Study On Measuring Customer Satisfaction Reliance Fresh' Retail Outlet in Pune"
A Study On Measuring Customer Satisfaction Reliance Fresh' Retail Outlet in Pune"
SATISFACTION”
Towards
“RELIANCE FRESH’ RETAIL OUTLET IN PUNE”
INDEX
Executive Summary 06
1
Introduction 07-13
2 14
Literature Review
3
Research Methodology 15-18
4
Data Analysis & Interpretations 19-30
5
Findings and Conclusion.
31-33
1
6 Bibliography 34
EXECUTIVE SUMMARY
India’s service sector has matured considerably during the last few years and has been
globally recognized for its high growth and development. The Indian retail market, which is
the fifth largest retail destination globally, has been ranked as the most attractive emerging
market for investment in the retail sector by AT Kearney's eighth annual Global Retail
Development Index (GRDI), in 2013. As per a study conducted by the Indian Council for
Research on International Economic Relations (ICRIER), the retail sector is expected to
contribute to 22 per cent of India's GDP by 2014
In today’s complex business environment, it has become very crucial for companies to attain
high customer satisfaction for long term sustainable growth and like companies of the other
business domains. Retail also considers their customers as the most important asset, is not
just a theory but also an economic fact. Therefore in the current scenario, the research on
customer satisfaction on business domain of retail sector is quite important and critical for
understanding of customer satisfaction and retention, it is very crucial for any company to
learn what actually differentiates the satisfied customers from the unsatisfied ones.
2
In a sharp contrast to the retail sector in developed economies, retailing in India - though
large in terms of size - is highly fragmented and unorganized. With close to 12 million retail
outlets the country has one of the highest retail densities worldwide. Retailing like rest of the
world retailing is one of the largest industries in India withsales amounting to about $3100
billion, but organized retail is estimated at only US$ 8billion.
Chapter 01
Introduction
3
INTRODUCTION
Customer satisfaction is a measure of how product and services supplied a company can meet
the customer expectations. Customer satisfaction is still one of the single strongest predictors
of customer retention. It’s considerably more expensive to attract new customers than it is to
keep old ones happy. In a climate of decreasing brand loyalties, understanding customer
service and measuring customer satisfaction are very crucial. There is obviously a strong link
between customer satisfaction and customer retention. Customer perception of service and
quality of product will determine the success of the product or service in the market.
With better understanding of customer perceptions, companies can determine the customers
need and actions required to meet the customer’s needs. They can identify their own
strengths and weaknesses, where they stand in comparison to their competitors, chart out
path future progress and improvement. Customer satisfaction measurement helps to promote
an increased focus on customer outcomes and stimulate improvements in the work practices
and processes used within the company.
In a sharp contrast to the retail sector in developed economies, retailing in India – though
large in terms of size - is highly fragmented and unorganized. With close to 12 million retail
outlets the country has one of the highest retail densities worldwide. Retailing like rest of the
4
world retailing is one of the largest industries in India withsales amounting to about $3100
billion, but organized retail is estimated at only US$ 8billion. It is country’s largest source of
employment after agriculture, has deepestpenetration into rural India and accounts to about
10-11 % of’ India’s GDP and around 8%of the employment.
Inefficiency in the existing supply chains presents further opportunity for organized players
to draw on this large market even as lack of consumer culture and low purchasing power
restricted the development of modern formats. Migration from unorganized to organized
retail has been visible with economic development in most countries
The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the
industry is getting more popular these days and getting organized as well. With growing
market demand, the industry is expected to grow at a pace of 25-30% annually. The India
retail industry is expected to grow from Rs. 35,000 crore in 2014-15 to Rs. 109,000 crore by
the year 2016
The retail landscape is in a constant state of change. As retail marketing is one of the most
dynamic and exciting areas of growth in the global economy so, to beat the competition,
5
stand out in a saturated marketplace and succeed despite tightening margins, savvy retailers
are focusing on customer-centric service, personalization and loyalty programs to attract and
retain customers.
A successful retail organization understands their market, their customers, and the
importance of strategic location. Because competition in the retail industry can be fierce,
such organizations need the best micro marketing tools available to analyze where to place
new stores, establish customer profiles, and determine best marketing practices in order to
find new customers. The trick in retailing, therefore, is to find things that you can do for
customers that will modify their behavior in profitable ways.
As retailers strive to touch consumers at every step of the purchase cycle, retail marketing
has evolved to become a mosaic of mass media branding, tactics for driving store traffic, in-
store experience, and loyalty programs.
Principles of sampling
The idea behind principle of sampling is that we seek knowledge about the total units by
observing a few units and extend our inference about the sample to the entire population.
Questionnaire
This method of data collection is quite popular in case of big enquiries. A questionnaire
consists of a number of questions printed or typed in a defined order on a set of forms. The
questionnaire is mailed to respondents who are expected to read and understand the questions
and write down the reply on the space meant for the purpose in the questionnaire itself.
6
Objectives of the study
7
Limitation of the Study
This study is restricted to Pune city only and therefore, the results obtained out of this
study cannot be generalized to other parts and rural area of the country.
Due to time constraints the sample size is restricted to 100 customers.
The analysis will be based on the current data; as such it may lose its relevance in the
future.
Chapter 02
INFORMATION ABOUT
INDUSTRY
8
Reliance Industries Limited (RIL) is India's largest private sector company on all major
financial parameters with turnover of Rs1,18,354 crore (US$ 27.23 billion), cash profit of
Rs17,678 crore (US$ 4.07 billion), net profit of Rs11,943 crore (US$ 2.75 billion) and net
worth of Rs63, 967 crore (US$ 14.72 billion) as of March 31, 2007.RILis the first and only
private sector company from India to feature in the Fortune Global 500 list of 'World's
Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits.
RIL is amongst the 25 fastest climbers ranked by Fortune. RIL also features in the Forbes
Global list of world's 400 best big companies and in FT Global 500 list of world's largest
companies
Reliance Industries Limited (RIL) is India's largest private sector company on all major
financial parameters with turnover of Rs. 73,164 crore (US $ 16.7 billion), cash profit of Rs.
12,087 crore (US $ 2.8 billion), net profit of Rs. 7,572 crore (US $ 1.7 billion), net worth of
Rs. 40,403 crore (US $ 9.2 billion), and total assets of Rs. 80,586 crore (US $ 18.4 billion).
RIL is the first and only private sector from India to feature in 2005 Fortune Global 500 list
of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms
of profits. Reliance in now putting up a completely export oriented unit with 30 MMPTA
capacity under Special Economic Zone (SEZ) at Jamnagar. Construction will commence very
shortly and the project is schedule to go into operation by March 2008.
9
RIL group is about to establish yet another industrial landmark by putting up the world's
largest grass root refinery totally dedicated for exports with an outlay of over Rs. 27,000
crores. RIL group, as a corporate citizen, has always believed in creating "employability"
apart from providing employment. Towards this, it is process of establishing a World Class
Craft Training Institute This world class facility will have latest generation equipments and
machineries imported from best of class manufacturers and will be located at Jamnagar. The
Scheme We will bring in thousands of youngsters - skilled / semi skilled / partially skilled /
unskilled from all over the country and provided temporary barracks - labour accommodation
with full facilities through contractors. The institute will train them in respective trades with
proper process for "Certification". Current estimate warrants training of (assuming 50% will
be Certified): Welders - 8000, Carpenters - 5000, Pipe Fitters - 5000, Grinders - 5500, Mill
Wright Fitters - 2000 Immediately on certification, they will be absorbed by our contractors
and be deployed on our world scale project at Jamnagar for a period of approx. of 2 years.
Thereafter, Reliance is confident that these skills, which are badly required, will have an
unlimited market and therefore, offer a great earning future prospect to these youngsters
around the globe.
Reliance Fresh falls under Reliance Industries. It is the first retail venture of the Group. The
company offers fresh fruits and vegetables, staples, groceries, fresh juice bars, FMCG
products and dairy products and non-vegetarian items. Reliance Industries has invested
nearly Rs. 3,000 crores to expand the Reliance Fresh stores. Reliance Fresh directly buys
stock from the farmers to cut down on the wastage. The stores work on The Ranger Format
which means selling of fresh vegetables to the road sellers. Reliance Retail has signed a pact
with Apple for the establishment of a chain of Apple Specialty Stores branded as iStore,
starting with Bangalore.
Reliance Fresh is the convenience store format which forms part of the retail business
of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest
in excess of Rs 25000 crores in the next 4 years in their retail division. The company already
has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits
and vegetables, staples, groceries, fresh juice bars and dairy products.
10
A typical Reliance Fresh store is approximately 3000-4000 square feet and caters to a
catchment area of 2–3 km.
CHAPTER 3
LITERATURE REVIEW
11
Literature review
India has been rather slow in joining the organized retail revolution that was rapidly
transforming the economics in the other Asian tigers. The food retailing outlets in India are
growing at a very fast rate in the every city. The food retailing outlets in the recent years
have shown tremendous impact in buying decision of the consumers. Retailing is one of the
largest in the global economy, is going through a transition phase in India. The need of
catering the shopping experience has been fulfilled by the shopping malls. They let
customers experience their freedom of choice. They not only offer variety but also executive
transparent pricing.
Technical, in its “retail outlook October 2015” reports that the total retail market will grow
from $336 billion in 2006 to $590 billion dollar in 2016, which translated to an annual
growth rate to 12%. Even while the share of modern retailing to four-fold from 4% in 2016 to
16% in 2015 and further to 2016, traditional retail will still grow in absolute terms from $324
billion dollar in 2015 to $493 billion dollar in 2014.
A study by McKinsey point out that the Indian market for consumer goods is expected to
reach $400 billion by 2010.Indian market is one of the five largest markets in the world.
12
Liberalization of economy in the 1990’s and the entry of large players in the retail business
have bought the retail industry in spot light.
India's retail industry is the second largest sector, after agriculture, which provides
According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the
retail sector will create 100,000 jobs in next few years.
Chapter 04
Research Methodology
13
Research Methodology
Research is the systematic process of collecting and analyzing information (data) in order to
increase our understanding of the phenomenon about which we are concerned or interested.
Research is a common parlance refers to a search for knowledge. The urge of understand
things may be rightly termed as research, in other words we can also refer research as a
scientific and systematic search of pertinent information of specific topic. The concept of
research is thus closely linked with human endeavor for better understanding of his
evolution, environment and growth through diverse stages of human history.
Research therefore, has been an integral part of academic pursuits in the past. It has served
two fold purpose, intellectual sharpening and evolving new theories to explain diverse
phenomenon through which mankind survived with the progress of modern era. Human
curiosity has leads to understand his environment in different angles. This process of
studying this awareness of man manifested in a process known as research
Research Design
Descriptive Research
Descriptive Research is a fact finding investigation which is aimed at describing the
characteristics of individual, situation or a group (or) describing the state of affairs as it exists
14
at present. The type of research method used is descriptive. The aim of descriptive research is
to verify formulated hypotheses that refer to the present situation in order to elucidate it.
Descriptive research is used because the research is primarily concerned with describing the
nature and conditions and degree in detail of the present situation
A descriptive research is conducted using 100 respondents, where in the detailed analysis of
preference of shopping, preference on organized and unorganized outlets, latest trend
towards branded retail outlets especially on ‘Reliance Fresh’ .Satisfaction level of customers
towards more retail outlets. Where in the detailed analysis of the quality of the service is
analyzed with respect to various variables and compared with the competitors to arrive at a
conclusion on the basis of finding and suggestions, which would help the company to
provide greater service and make necessary improvements in the service quality.
Data Sources
In present study both primary as well as secondary data is used, which helps in identifying
the customer satisfaction towards ‘Reliance Fresh’ retail outlets and towards the ‘‘D-Mart’’
shops and the latest trends of retailing in India.
Primary Data
The primary data for the study will be collected by means of structured questionnaire and
will be distributed personally to the 100 respondents to get their responses.
Secondary data
The secondary data will be collected from company websites, lounge books, referrals,
internet browsing, Journals.
Design of Questionnaire
15
The questionnaire will be designed to collect the data to keep in view the objective of the
study. It will be mostly closed ended and open ended short questions for the convenience of
respondents.
Sampling Plan
Sampling is that part of statistical practice concerned with the selection of a subset of
individual observations within a population of individuals intended to yield some knowledge
about the population of concern, especially for the purposes of making predictions based
on statistical inference.
16
lounge books. The data collected from the study is analyzed by simple graph, tables, and
charts and interpreted for providing relevant recommendation.
Chapter 05
Data Analysis and Interpretation
17
Table 4.1 Shopping frequency
18
Frequency of Shopping
6% 10%
Daily
Weekly
44% Monthly
40%
Occasionally
Fig 4.1
Analysis
From the above graph frequency of shopping is evident. Of the 100 respondents it shows that
10% of the respondents do shopping daily, 40% of the respondents do shopping weekly, 44%
of the respondents do shopping monthly and 6% of the respondents shop occasionally.
Inference
The above figure shows that most of the respondents do shopping weekly and monthly. It can
be deduced that people who visit once a month and weekly are those people who visits
various stores for their regular needs and also may be because of the benefits by the stores
such as discounts and offers.
Table 4.2 Preference of respondents towards branded retail outlets and Reliance Fresh
Mart.
Branded No of respondents Percentage
outlets
Reliance Fresh 44 44%
More 16 16%
Smart 16 16%
Big Bazar 8 8%
Nilgiris 6 6%
Others 4 4%
19
D-mart 6 6%
Total 100 100%
100
More
40
Reliance Fresh
30 Nilgiris
Big Bazar
20
Smart
10 Others
0 D-Mart
No of respondents Percentage
Fig 4.2
Analysis
From the above graph it is evident that 94% of respondents prefer branded retail outlets in
which Reliance Fresh has a maximum share of 44% which is followed by 16% of More, 16%
of Smart and rest belongs to other stores.
Inference
The above figure shows that most of the respondents prefer shopping in branded retail
outlets. Maximum number of people does shopping in branded retail stores for their regular
needs and also may be because of the benefits by the stores such as discounts and offers.
Particulars No of Percentage
Respondents
Excellent 18 18 %
Good 56 56 %
20
Satisfactory 20 20 %
Not Satisfactory 6 6%
Total 100 100
18% 6% 20%
Excellen
tGood
Satisfactory
Not Satisfactory
56%
Fig 4.3
Analysis
From the above table and graph the satisfaction level respondents is evident with respect to
services provided by the retail outlets. Of the 100 respondents 18% of the respondents are
agreed with excellent rating service. 56% of the respondents agreed with good rating service.
20% of the respondents agreed with satisfactory rating service and 6% of the respondents
agreed with not satisfactory rating service.
Inference
From the responses it can be inferred that most of the respondents are happy with the service
provided by the retail outlets and there are very less people who are not satisfied with the
services provided by retail outlets.
21
Yes 86 86 %
No 14 14 %
Total 100 100%
14%
Yes
No
86%
Fig 4.4
Analysis
From the above table and graph the expectation of respondents is evident. Of the 100
respondents it shows that 86% of the respondents except to receive free gifts and discounts
offered by the retail outlets and 14% of the respondents do not expect any free gifts and
discounts.
Inference
Majority of shoppers expect free gifts and discounts from the retail outlets. It can be deduced
that free gifts and discounts attracts more number of customers.
Perception NO of Percentage of
respondents respondents
Excellent 8 8%
22
Good 58 58 %
Satisfactory 28 28 %
Not Satisfactory 6 6%
Total 100 100%
70
60
50
40
30 58
20
10 28
0 8 6
Excellent Good Satisfactory Not Satisfactory
Fig 4.5
Analysis
From the above graph the perception of respondents towards “Reliance Fresh” products is
evident. Of the 100 respondents 8% respondents has excellent perception about ‘Reliance
Fresh’ products, 58% of respondents’ has good perception about ‘Reliance Fresh’ products,
28% of respondent’s has satisfaction about ‘Reliance Fresh’ products and 6% of respondents
not satisfaction about ‘Reliance Fresh’ products.
Inference
Majority of respondents are satisfied with the products available in Reliance Fresh because of
features like price, quality, variety and brand.
23
Disagree 6 6%
Total 100 100 %
Fig 4.6
Analysis
From the above table and graph the employee behavior towards customers in “Reliance
Fresh” is evident. Of the 100 respondents 72% respondents agree that employees in store are
polite and friendly, 16% have strongly agreed, 6% have somewhat agreed and only 6%
respondents have disagreed about the employee behavior.
Inference
Maximum number of customers that is 72% are happy with behavior of employees in the
Reliance Fresh retail outlets.
24
Suggestion from 27 27 %
friends & relatives
Others 16 16 %
Total 100 100%
11%
16% 4%
Advertisement
Brand ambassador
27% Suggestion
Product Display
Others
42%
Fig 4.7
Analysis
From the table and graph presented above the affect of media towards the purchase of
products is evident. Of the 100 respondents 8% of the respondents are influenced by
advertisement, 4% of the respondents are influenced by brand ambassador, 42% of the
respondents are influenced by product display, 27% of the respondents are influenced by
suggestion from friends and relatives and 17% of the respondents are influenced by other
media.
Inference
25
The purchase of products is mainly influenced by display of the product and then it is
followed by suggestion from friends and relatives and advertising.
Satisfaction level
Very satisfied
Satisfied
Not sure
Unsatisfied
Fig 4.8
Analysis
The above graph shows overall satisfaction level of Reliance Fresh products.12% of the
respondents are very much satisfied with Reliance Fresh products, 70% of the respondents
are satisfied with the Reliance Fresh products, 11% of the respondents are not sure and 7% of
the respondents are unsatisfied with the Reliance Fresh products.
Inference
26
Analyzing the responses from customers and above table and graph it can be said that
maximum number of customers are satisfied with the ‘Reliance Fresh’ products.
Strongly agree
Agree
Some what
agree
Disagree
Strongly
disagree
Fig 4.9
Analysis
27
From the graph and table presented above future aspect of retail outlets is evident. Of the 100
respondents 41% of the respondents strongly agree with the future trend, 44% are agreed,
10% are somewhat agree, 5% disagrees and 0% strongly disagrees with the future trend.
Inference
Future trend about retail shopping is very high.
Figure 4.10
Analysis
28
From the above table and chart it is evident that how many respondents are satisfied with the
store and are willing to recommend the various stores to their friends and relatives for
shopping. Of the 100 respondents 33% recommended Reliance Fresh, 24% recommended
More, 20% recommended Big Bazar, 14% recommended Nilgiris and 9% respondents
recommended Smart for shopping.
Inference
Shoppers visit to many different stores to get more effective price, quality, varieties and other
benefit provided by the stores such as discounts and offers which plays an important role to
provide satisfaction. But they recommend the store when they get the full satisfaction. The
mostly recommended store for shopping is listed in the following descending order: Reliance
Fresh, More, Big Bazar, Nilgiris and Smart.
Chapter 06
Findings and Conclusion
29
Findings
In the survey, interviews and study conducted above, I came across many factors that
influence the consumers’ satisfaction on organized Reliance Freshstore and their subsequent
shopping and buying decisions. Here, I present the findings gathered and the suggestions I
offer to companies based on the data gathered and analyzed.
The survey indicates that the 44% of the respondents visit the retail store once a
month and 40% of the respondents visit weekly.
The most preferred store by respondents is Reliance Fresh that is 44%.
Compared to competitors Reliance Fresh is the most visited store to shop.
Due to competition respondents have different favourite stores according to their taste
and preferences.
Mostly customers are satisfied with the service provided by the retail stores.
Majority of customers prefer retail outlets for shopping.
30
Forty four percent of customer prefer to purchase products on Reliance Fresh retail
outlets that indicates customers are attracted towards Reliance Fresh outlets it
indicates it has a good market potential in future.
Majority of the respondents are happy with the behaviour of the employees towards
customer service.
Giving gifts, offers and discounts have more effect on consumer buying decisions.
Maximum number of the respondents are shopping in retail outlets it shows that
future trend and growth of retail sector is very high.
Satisfaction level of respondents on Reliance products shows that Reliance Fresh has
good quality products.
Reliance Fresh is the most recommended store by the respondents to their friends and
relatives for shopping.
Conclusion
.
The strategy of Reliance fresh is very effective as they know very well how to attract
customers, which is reflected in the vast custom they enjoy in relation to others. A good and
friendly behaviour of sales personnel’s in the store is also a reason for increase in sales. Due
to the upsurge of the retail sector, unorganised sectors are perishing because of their old
concepts, poor service, non - competitive pricing etc. Therefore they have to upgrade their
performance in order to compete with the big leagues.
To conclude it can be said that most of the Reliance Fresh customers are happy with the
service received. More, Nilgiris, Total, Smart, Big Bazaar are tough competitors of Reliance
Fresh even though Reliance Fresh is trying hard to attract the customers by introducing new
offers schemes etc to capture the market share. According to customer there is huge potential
for increasing market share of supermarket. Findings of this research suggest that the level of
31
customer satisfaction is highly dependent on various parameters such as price, brand,
customer service, quality and variety of the products. Hence it is very much important for the
retail stores to consider all those parameters to enhance the level of customer satisfaction.
Chapter 06
Bibliography
32
Bibliography
Books:
Websites:
http://www.researchindia.com
33
http://www.slideshare.net/jas.bhatia/reliancefresh
http://corporate.reliance.com/home.aspx
http://retail.about.com/od/location/a/selecting_site_2.htm
Questionnaire
Personal data
Name :
Age :
Sex :
Contact details :
Occupation :
Income :
34
4) Do you expect gifts, discounts etc from the company
i) Yes ii) No
9) Do you think the future trend – the market share of organized retail will increase
i) Strongly agree □ ii) Agree □ iii) Somewhat agree □
iv) Disagree □ v) Strongly disagree □
35