CHAPTER 1

1.1 INTRODUCTION

Brand Awareness
The likelihood that consumers recognize the existence and availability of a company's product or service Creating brand awareness is one of the key steps in promoting a product. Brand awareness is an important way of promoting commodity-related products. This is because for these products, there are very few factors that differentiate one product from its competitors. Therefore, the product that maintains the highest brand awareness compared to its competitors will usually get the most sales. For example, in the soft drink industry, very little separates a generic soda from a brandname soda, in terms of taste. However, consumers are very aware of the brands Pepsi and Coca Cola, in terms of their images and names. This higher rate of brand awareness equates to higher sales and also serves as an economic moat that prevents competitors from gaining more market share.

1.2 NEED FOR STUDY

The changing trends in the Indian society lead consumers. The food industry is prospering in India with eleven existing companies and different models are being produced by each of the company. Heritage, Reliance fresh and Spencers being a standard company holds a major share in the Indian market. With increase in competition it is releasing new models of foods with a less time gap between one and the other. Due to the fewer gaps between one and the other, many models are left unaware. Thus, this study helps to know the level of brand awareness of Heritage, Reliance fresh and Spencers, and impact of advertisement in creating brand awareness.

1.3 OBJECTIVES OF THE STUDY

Primary Objective: The main objective of the study is to know the level of brand awareness of Heritage, Reliance fresh and Spencers Secondary Objectives: 1 2 3 4 5 6 To study the level of brand recall and brand recognition rate. To study the role of advertisements in motivating people towards brand To collect the response of the customers towards Brands To analyze the factors responsible in making the buying decisions of customers To know the customers readiness towards innovative products To study the processes that are implemented in Heritage, Reliance fresh and Spencers launching new products in to the store 7 To acquire the knowledge about present prevailing scenario in the field of innovative products

1.4 SCOPE OF THE STUDY

1 2 The scope of the study limits to only a particular store in Hyderabad The study is conducted on 50 customers selected by sampling methods in each store. 3 The study is of studying the customers trends and response towards the new and innovative products in particular stores.

1.5 Research Methodology

Research design: The study is undertaken to assess the customer trends and their
responses towards the efficient brands in Hyderabad.

Data collection: The information is collected through questionnaires and personal

interviews. Customers are selected randomly and survey is conducted. A Direct structured questionnaire has been asked to all the respondents in the sample followed by direct personal interviews.

Sources of data: The classification of data is very important procedure in this

concept. The collected data can be classified into two types.

1. Primary data 2. Secondary data Primary Data: The primary data is very important source for to make suggestions to
the title obtained. This data can be collected in various methods like survey, interviewing, feedback, i.e. Group Discussion etc., for collection of primary data the survey method is used, which involved predetermined questions. The structured questionnaire contained a form list of question framed so as to get the facts. But it involves high risk and huge expensive method to get the facts.

Secondary Data
Collection of secondary data is very easy compared with primary data. But this data is also very important for the growth of an organization, to predict the future and will help to make the future plan regarding sales and improve the measures of sales. This data can be collected from the magazines. Annual reports of the organization and other published data.

Sample selection
The information is planned to be collected by sample method, the sample method followed is random sampling method. The probability random sampling method is stratified random sampling.

Population
The survey was done in Hyderabad only according to my convenience. It is not giving the complete picture of Andhra Pradesh (or) India. Sample frame/unit: Students, corporates, House wives, Govt employees etc, who are shopping at Heritage, Reliance fresh and Spencers.

Sample size:
The sample size consists of 50 consumers in each store. The survey was conducted in the form of an interview among randomly chosen sample of 50 consumers of Heritage, Reliance fresh and Spencers.

Sample design: The sampling unit was confined to end consumers of the products i.e.
customers who shop at Heritage, Reliance fresh and Spencers to know their trends and response about brand.

Tools used for the study

Research procedure:
The questionnaire designed for the study in the structured & disguised in nature. It consists of multiple choice & short questions.

Analytical Method: Simple percentage method is used for the analysis purpose.

1.6. LIMITATIONS
1. The customers may not reveal their intentions freely and fairly ie, they may be biased 2. The respondents are impatient to answer the questionnaire. 3. The study is limited to a particular region, so the result may not be accurate and may not coincide with global scenario. 4. Findings are confined to specified period 5. The study is limited to HYDERABAD and SECUNDERABAD areas. 6. The study is conducted for 45days.

CHAPTER 2

10

2.1. REVIEW OF LITERATURE

Creating Brand awareness
The ultimate goal of all businesses is to increase sales and income. Ideally, we want to attract new customers to our products and encourage repeat purchases. Brand awareness refers to how aware customers and potential customers are of our business and products. To some, branding might not feel like a tangible aspect of running a business as it cannot be quantified directly in terms of money. But, branding is the reason people may pay three times for a product at one store over another. However, with limited resources, creating a brand identity can be a challenge. But here are some of the ideas on building brand awareness which would be beneficial for a company if integrated with other market research technologies. They are: 1. Identify and understand your target customers 2. Create a company name, logo, and slogans 3. Add value through packaging, location, service, special events, etc. 4. Do invest on Advertising 5. Have an after-sale follow-up and customer relations management .1. It is important that the message of what a brand is offering to the consumer should be consistent. Big Bazaar, for example, offers fresh, high-quality foods for purchase and advertises the advantages that their goods can provide. So the impressions we hope to make on consumers and potential consumers should be consistent across various mediums, situations, and promotional attempts.

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2. The image we present should be consistent in order to increase brand awareness. It is important that we are consistent in use of image so that we maximize recognition and positive impressions. For example, the image has to be consistent, on the products we produce, on the receipt consumers receive after purchase, on the bags customers carry out of the store, and in many of distributed informational material. 3. The slogans and taglines we use should be consistent throughout mediums and material. Once again, consistency is important in conveying a message that promotes awareness of a brand in an organized, recognizable manner. Big Bazaar tagline, Is se sasta aur accha kahin nahi!(Translation: None other offer such cheap and best products), is consistent throughout its promotional materials, website, and logo. It presents the consumer with an image that in the future the consumer can continue to associate with our products. Creating brand awareness, through a collaborative, welldeveloped overall image, is essential to develop a successful brand that achieves maximum benefits. The next point would be how to maintain Brand Awareness. It is important to keep working at the issues and activities identified above. We have to pay attention to how customers are responding to products, packaging, displays, and messages. Always we have to look for ways to improve the image we are trying to get across. Ask your customers for suggestions. Work to maintain a consistent presence in the market place. Author Jethendra. B. K

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Creating Brand Awareness through Effective Brand Names & Symbols

There is no disagreement that effective branding through use of a name, term, symbol or design, or a combination of these' (Quester et al, 2001) can create brand awareness and recognition in the quickest manner. Companies use different kinds of Brand Name', that is, a word, letter or a group of words such as AOL, Intel Pentium III etc to project their companies. Sometimes such words, symbols or marks are legally registered and copy righted to a single company known as trademarks ( for product oriented companies) and service marks ( for service offering companies) (Perreault & McCarthy, 2000). However in any form, branding can be used to create brand familiarity among consumers in terms of brand recognition and brand preference (Papers4you.com, 2006). The advantage of using branding effectively is both for consumers as well as marketers. For instance it becomes easy for a customer to choose preferred brand among 1000s of other items just because of famous well recognized symbol, word or trade mark that can not be possible with out effective branding (Quester et al, 2001). For instance imagine you are driving down the road with hunger and suddenly you see a symbol M' on a sign board with red background and yellow font. It is not difficult to realize that McDonalds is waiting for you, easily manifest effective projection of McDonalds' through brand symbol M'. Similarly imagine buying a computer accessory and among thousands of unknown brands, suddenly you observe Intel ' sign. A quick reminder will prompt that it's a well known brand symbol that you observe common everywhere in media and at your own computer.

13

Now keeping these examples in mind, it is obvious that marketers can cash in such advantages as well (Papers4you.com, 2006). One best way to use word and symbols is while launching new products under same brand names (Quester et al, 2001). For instance, as every one is aware of Coca Cola ' , any new soft drink introduced under this brand name has highly probable chance to achieve awareness and attention of coca cola lovers. Similarly it is quite often that no matter IBM' entered in so many IT related services after initially famous for IBM computers but whenever you observe its trade mark of IBM' written in horizontal lines, consumer is not bothered about checking the background of the company. So as a result it also saves huge promotion costs that a company with less famous brand names and symbols needs to incur. To conclude discussion, the outcome of effective branding can be seen in terms of brand equity' that is the value of a brand in terms of its perceived brand awareness, recognition, loyalty and associations from customers. To give the advantage of effective branding, the brand equity of the Coca Cola brand is valued $ 43 Billion, IBM brand at $ 18 billion and Kodak's at $ 12 billion (Kotler & Armstrong, 1999). Author Kotler, P & Armstrong, G, (1999), Principles of Marketing', Eight Edition, New Jersey: Prentice- Hall Inc Quester, P, G, McGuiggan, R, L, McCarthy, E, J & Perreault, W, D (2001).

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Creating Business Brand Awareness Through Experimental Marketing Events

Marketing in its true nature is the most effective way to influencing brand awareness and hence help in business promotion. In this article I want to emphasis the importance of experimental marketing as a mode of adding meaning to your business brand message. By experimenting on new marketing options, it enables customers to be more receptive to the different kinds of marketing strategies you may opt to use. This is because customers sometimes become doubtful of commercial advertisements that appear on television or radio. Using other means of marketing like direct marketing where there is direct contact with customers helps to create trust, clarify and more so prove your product worth. In addition, it will assist your business fulfill its brand promise to the undecided clients A good example would be; if you are dealing with the manufacture of motor vehicles or maybe detergents, organize an experimental event where customers can ask questions, scrutinize and try out your product. The advantage of experimental marketing is that it gets your customers taking about your business. I therefore do not to remind business people that the best communication medium is where other people are spreading the word around about your products or services. The target market that appears to be mostly reached at through experimental marketing is the youth. This is mainly because they are more receptive to new ideas and also take advantage of such events to socialize and make new connections. So if you want to market your business brand, use the available selections of marketing tactics and do not be afraid to innovative. Author: Stephen

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Building Brand Awareness with Promotional Products

Companies are all the time looking for a great way in which they can promote the name and the brand of the company. This is something which is most often done through the use of promotional products. The problem which many companies run into is that the product they give out needs to be something which is highly useful. This is the only way that they will be able to get people to use the product on a daily basis. The reason why this is important is because the more people use your product, the more they think about your company. Creating a product which people will find useful can be tricky. This is because the kind of promotional products which are useful to one company will be useless to another company. This is because the product needs to target the demographic you are looking to reach. Frisbees emblazoned with your logo are great if your target demographic enjoys playing Frisbee but it will be lost on a finance company. This is the reason why so many medical companies give out pens, notepads and calendars. They are used by the people they want to reach every day. Of course, if your promotional products look just like everyone else's, it will just get lost in a sea of mediocrity. This is why you need something which will stand out and still get use every day. This can be something which will be fun to use or something which is a great way to take a break from the day-to-day grind. Since this is not easy to do, it is time to put on your thinking cap and figure something out which is completely unique to your company so that you can increase your brand awareness and really stand out from the rest of the crowd

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High Test Memorabilia Some of the best promotional products which were created throughout history are now collector's items. Think of the Coca-Cola tins which were given away to promote their brand. You are sure to be able to find these being sold in antiques stores and collector's stores. The same company is responsible for the modern image of Santa Claus and for the Polar Bear icon which many people relate to Christmas. This is something you can do as well, but it will cost a bit more than just the name of your company on a pen. If you do use a pen, it should be a pen which you do not normally see handed out every day. Use an actual brand name which your clientele will be able to identify. Make it Memorable One of the best ways in which you can make your promotional products memorable is to keep in mind those you would like to reach. Think about what kinds of interests they have. If they are into fast cars, include some imagery of this along with your product name on a shirt that they can wear when they go out to a race. If they are into golfing events, have a good golf shirt stitched with your product name and hand it out at a golf tournament you are sponsoring. Anything which will help them remember an event along with the article and your brand. This is because people will tend to hold on to something they received at an event they had fun at. They will also wear or use the product more often because it holds some kind of value for them.

Make it Unique It is also very important that the promotional products you give out are not something which can be purchased. The more unique the product is, the more value they will hold for those you give them to. There is nothing unique about something you can go to the company store to purchase. Try to make sure that the products you are giving out will stand out in some way from the competition. This can be through the use of company colors on the product. It can also be because you are using a higher quality product than the competition. No matter what you do, make sure that yours is the one they reach for every time. Author: Chris J. Carpenter

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Brand awareness strategies

So you finally have a website, can sit back and watch the world come knocking. Youre not sure what affiliate programs youre going to use to earn money but you figure that you cant really lose no matter what you decide. The minutes, hours, days past and very little if any visitors have dropped by your web page to say hi. You start to question the investment youve made and youre calling the day job you just quit pleading to take you back. Good move. Lets start from scratch before quitting your job and look at the little things you can do to slowly but surely raise brand awareness and ultimately drive traffic to your website. Many people have come under the impression that you can start a website and watch the money come rolling in with little or no effort. Truth is that in most cases it takes effort to earn a dollar and thats what this article is about. Its about doing the little things right and taking the time to do it. Taking the time at the beginning will help alleviate the workload later. If it were possible to spend a couple of years working really hard to achieve independent wealth would you do it? This isnt by any means a get rich article or even a make a part time income article. One never knows what the outcome will be in anything. This is merely a guide to a few free, easy steps Ive learnt along the way that you may or may not find helpful. 1) Search Engines Submit or Not? You can submit however it is very time consuming. The major search engines (Google, Yahoo, etc.) will spider your site on their own. All of the other mid-small search engines will follow suit. Save yourself time on submitting to hundreds of search engines and focus on back-links. Once you have these your site will be indexed fast.

2) Directories Instead of search engines put your focus on directories. There are literally thousands in existence. The main types are paid, non-paid and reciprocal. Be selective in which directories you submit to. Directories with high page rank are what you want to aim for as the quality of sites linking to you is important. 18

3) Online Classifieds There are many free online classifieds available and are great vehicles for advertisement. Sites like Craigslist, Myspace and Kijiji can almost instantly bring a few visitors and provide back-links. 4) Articles Try writing an article about the service or product you offer. Once youve done that submit it to article sites. Article sites are excellent sources of back-links and advertisement. Consider as well the possibility of a large site using your article on their web page. Like directories page-rank is important so be selective. 5) Post Blogs Create blogs that are separate from your website. This can create awareness, increase traffic and be an additional source of revenue on its own. 6) Social Network Sites Social Sites are more and more being used to promote web pages and are arguably the most effective way to win over an audience. You may or may not get traffic for this but its important to note that even if you dont youll get honest feedback. Feedback is good for any business in order to understand what can be done better. Social Sites are kind of like free market research or focus groups. 7) Web Forums Forums have been around since the beginning of the internet era and are still a very effective resource. Get involved with those of similar interest. Community Involvement is an integral part of running any business. Seem like a lot? It is! However utilizing these steps will steadily improve traffic and hopefully help you reap the rewards you desire. Author : Cory Cyr

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1. Brand recognition:
This level is the first stage of brand awareness. It is when the consumers can recognize a specific brand among others; "aided recall". Aided recall can also be explained as a situation where a set of given brand names from a given product class is shown. The task is then to identify the recognized names. Brand recognition is major when consumers face the buying procedure.

2. Brand recall:
This is upon the consumers to name the trademark in a product class. Apart from level one, this is an "unaided recall" since there are not given any examples of specific brands. The role of brand recall can also be vital for regularly purchased products like coffee, detergent, and headache remedies, for which brand decisions usually are made prior going to the store. Further on, in some categories (such as cereal) there are so many recognised alternatives that the shopper is overwhelmed.

3. Top of mind:
A brand that is "top of mind" is the first brand that consumers think of within a given product class (Aaker, 1991). Brand awareness is important since a lot of the consumers feel that if the brand is well known it has good quality. Most important is not that the brand is well known, it is what it is known for (Melin, 1999). Further, awareness is a very important brand advantage, but it cannot sell the product, especially not if the product is new (Aaker, 1991). In the literature there are many facts that show that brand awareness affects consumer choice and thereby their choice of brand. Lin and Chang (2003) found by their research that brand awareness had the strongest effect on purchase decision on habitual behavior of low involvement products. They also wrote that Hoyer and Brown (1990) examined the role played by brand awareness in consumer decision making process and found that it was a dominant factor. Likewise, Jiang's (2004) investigation also shows that brand name, in other words recognition of a brand, has an impact on consumers' choice.

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Be different, memorable: Today, many products seem alike and the communication in the product clusters is related. Therefore, it is important to differentiate the product, although, the bond between the product class and the brand has to exist for easier recognition. Involve a slogan or jingle: There can be a stronger linkage between a slogan and a brand because it involves a visual feature of the brand. By this, the jingle or slogan is powerful and can make a big change. Symbol exposure: It is important to have a known symbol, because it is easy to memorize and recall a visual illustration. A logo, either an already existing one or a developed one, which is connected to the brand, can take a huge part in forming and keeping awareness. Publicity: Advertising is a proficient way to get publicity and make awareness, since it can be customized to the communication and the addressees. Event sponsorship; The primary role of most event sponsorship is to create or maintain awareness. Consider brand extensions: To show the name or the logo on the products, and make the name more prominent, is one way to increase brand recall. Examples of names that can be found, promoted, shown and publicized on other products, than the key product, are Coca-Cola, Heinz and Sunkist. Using cues: The package is one of the most important cues to a brand, since that is what the purchaser sees when buying the product. If not knowing the brand or the product, the only contact to the brand is the package. Recall requires repetition: It is easier to build up recognition than to build up recall of a brand. It can be compared to the fact that one can recognize a face of a person but do not recall the name. Therefore the link between the brand and the product class needs to be stronger and the brand needs to be more prominent than in the recognition of the brand. To receive a top of mind recall is even harder.

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Brand is More Than a Name Attached-to Product

Branding is more than putting a label or identification mark on a product. If it were true than it would be quite acceptable to put the brand name Coca Cola on a food. Obviously, it would be a misfit. According to Jayant Kochar M.D., Amoreus Retail, 'People buy brands not products, they buy benefits not features and benefits that make a customer buy are benefit perceived by their heart and mind and not what the manufacturer may want to believe, i.e., benefit. Thus, one can say that it is customers who decide the fate of a brand through their perceptions in turn one shaped by the actual of the brand'.

A genuine brand is one which delivers something extra' i.e., provides added value. This differentiating 'extra' could be superior functional performance, excellent perceived quality, and excellent services and so on. It is important to remember that a brand should offer something unique so that it leaves a lasting impression on consumers mind.

Difference between product and brand The core product is what the company produces. However, to make this product differentiated, unique and desirable among its target consumers, it surrounds the product with images and creates different associations, leading to the formation of a unique brand image and positioning in consumers mind. The more differentiated a brand is in consumers mind, the less likely it is to be replaced by competing brands. Through brands, companies try to establish a lasting relationship with their customers, in the process making them brand loyal. The 'extras' or 'add ones' that differentiate one brand from another include; before and after sales service, self finance or credit service, guarantees and warranties, consumers perception of quality, value for money .

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BRAND POSITIONING
The idea of a well positioned product/brand has always intrigued companies and brand markets like. The concept of brand positioning has generated a lot of interest among brand enthusiasts and it is one branding concept backed by empirical research at paradoxical as it may seem it is one of the most misunderstood concepts of branding. Positioning invariably has been associated with creating the desired place for the product/brand in the market. Yet, this definition of positioning is too simplistic. The concept is far more abstract than it is perceived to be, at first glance. How ever this does not in any way diminish its importance in brand management as a matter of fact with increased research activity in the area, the positioning concept is fast becoming an important branding tool.

BRAND CUSTOMER RELATION SHIP:

The relationship between brand and customers is a complex one. The purpose of brand marketing is more than attraction, acquisition and retention of customers. It is necessary to build a long-term relationship between brand and customer as it is portable for both the parties. While building a long-term relationship with customers ensures a steady stream of income, a consistent market base and, stability in share market, for the company. For consumers, besides the utilitarian value of having to dispense with the time and money spend in searching for new brands, there are other social and emotional values that brands provide. A meaningful relationship is one where in both the customers and the brand provides value to each other. Customers view brands as a means of self expression and hence brands need to exploit the idea by developing closer links with its target audience, who share similar values and beliefs Loyalty and faithfulness are just one aspect of brand customer relationship and signal a servile attitude of customers towards brands. This is not always the case, infarct many a times the relationship between brand and customer is more like that of a friend or an advisor. For instance Perk, establishes a fun and friendly sort of relationship with its customers.

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BRAND LOYALITY
All brand marketers want their brands to command a high degree of brand loyalty the desire of having a large set of brand loyal customers is ultimately linked to long term profitability of the brand. It is a well-know fact that profits accrue mainly due to repeat purchases and brand loyal customers are known to make frequent purchases of their favorite brands, leading to a steady stream of profits from comparatively lesser outlays on advertising and promotions. But with thousands of brands vying for consumers limited mind space, achieving this elusive level of brand loyalty seems to be
QUITE

impossible.

Yet brands have large brand following and in certain cases customers refuse to buy any other brand in case the desired brand is not available. This chapter examines and analyzes the cause of brand loyalty and the strategy for and means of nurturing and developing loyalty among consumers

BRAND REVITALIZATION
Even the strongest brands loose their sheen, with the passage of time. These

brands may be under performing but not extinct and with a little bit of redirection and refocusing they may still emerge as a force to reckon with. The effort to infuse a new life into a dying brand is referred to as revitalization. It is not just an attempt to increase turnover or provide support to the ailing brand rather it is a sustained effort to increase brand's equity and create a new image and positioning for the brand it also involves creating a new set of associations and perceptions regarding the brand expanding brand consumer base.

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CHAPTER - 3

25

3.1. INDUSTRY PROFILE

INDIAN RETAILING INDUSTRY
The history of retail has included countless ways in which retailers have attempted to get their products in front of the consumer. But it seems that the businesses that have provided their customers with the most convenience have generally proven to be the most successful. For centuries, most retail sales were made by the street vendor or the small family owned shop, which provided their customers with the convenience of not having to grow their own food or make their own clothes. By the mid nineteenth century, most of the goods that we find in today's superstores were supplied by craftsmen or local manufacturers who dealt directly with their customers. Needed, not to mention that they probably had to travel all over town to get their shopping done. As manufacturing methods improved, and as the road and rail transport network extended, there developed specialist manufacturers who needed retail stores to sell their goods. Over time, the small retail store concept grew, and by the mid 1950's small stores blanketed every high street. While most people loved the individual attention and great service that the small store provided, it became more and more difficult for the small store to offer the kind of prices and selection that the consumer really. The next big revolution in retailing was the emergence of the retail chains, and later the superstores. The consumer of the 70's demanded the convenience of having their favorite stores in one enclosed location where they could easily hop from store to store without having to concern them about the weather. This shopping mall concept was quickly embraced by the consumer, but unfortunately the crowds and traffic of today's mega malls can often turn what should 26

have been a convenient and comfortable shopping experience into a mission of hand-tohand combat!

In recent years, the mail order business has experienced some of the most impressive growth, which would also seem to echo the continuing consumer demand for convenience. Most retailers are recognizing that they simply have to offer their customers the ability to order products or services from the comfort of their own home or office in order to compete in today's retail marketplace.Retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that bymodern retail industry in India will be worth US$ 275- 350 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 expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the 27

Indian grocery basket consists of non-branded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. Global retail giants are also entering the retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next 5 years. The India retail industry contributes 10% of the countries GDP and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005. The organized retailing sector in India is only 3% and is expected to rise to 2530% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market. This led to increase in foreign direct investments Global retail giants are also entering the retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. The global retail giants who are entering the organized retail sector in India are: Wal-Mart, Tosco, Carrefour SA, Metro AG.

Top Retail players in India

1 2 3 4 5 FUTURE GROUP SPENCERS RETAIL SUBHIKSHA PIRAMYD RETAIL SHOPPERS STOP

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6 7

RELIANCE RETAIL TRENT

3.2 COMPANY PROFILE

HERITAGE COMPANY PROFILE. BRANCHES OF HERITAGE.
HFIL has 3 wings. They are 1. Dairy 2. Retail 3. Agribusiness 1. Dairy: It is the major wing among all. The dairy products manufactured by HFIL are Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream. 2. Retail: In the retail sector HFIL has outlets namely Fresh@. In those stores the products sold are vegetables, milk& milk products, grocery, pulses, fruits etc. In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4 respectively are there. Totally there are 26 retail shops are there. Fresh@ is a unique chain of retail stores, designed to meet the needs of the modern Indian consumer. The store rediscovers the taste of nature every day making grocery shopping a never before experience. The unique& distinctive feature of Fresh@ is that it offers the widest range of fresh fruits and vegetables which are directly hand picked from the farms. Freshness lies in their merchandise and the customers are always welcomed with fresh fruits and vegetables no matter what what time they walk in. 3. Agri Business: In this business HFIL employees will go to farmers and have a deal with 29

them. Those farmers will sell their goods like vegetables, pulses to HFIL only. And HFIL will transport the goods to retail outlets. The agricultural professors will examine which area is suitable to import vegetables from and also examine the vegetables, pulses and fruits in the lab. And finally they report to the Head-Agribusiness. Representatives as per the instructions given by the agri professors will approach the farmers directly and make a deal with them. It is the process of registering the Customers: 1 2 3 4 5 6 1 2 3 4 Timely Supply of Quality & Healthy Products Supply high quality milk and milk products at afMAGNAable prices Focused on Nutritional Foods More than 4 lakh happy customers High customer satisfaction 24 hours help lines ( <10 complaints a day) Enhancing the Technical and Managerial skills of Employees through continuous training and development Best appraisal systems to motivate employees Incentive, bonus and reward systems to encourage employees Heritage forges ahead with a motto "add value to everything you do"

Employees:

Returns: Consistent Dividend Payment since Public Issue (January 1995) Service: 1 Highest impotence to investor service; no notice from any regulatory authority since 2001 in respect of investor service 2 1 2 Very transparent disclosures Potential Employment Generation more than 3500 employees are working with heritage more than 9500 procurement agents got self employment in rural areas more than 5000 sales agents associated with the company 30 .Society:

3 4

Employment for the youth by providing financial and animal husbandry support for establishing MINI DAIRIES Producing highly health conscious products for the society.

Qualities of management principles:

1. 2. 3. 4. 5. 6. 7. 8. Customer focus to understand and meet the changing needs and expectations of customers. People involvement to promote team work and tap the potential of people. Leadership to set constancy of purpose and promote quality culture trough out the organization. Process approach to assess the efficiency and effectiveness of each process. Systems approach to understand the sequence and interaction of process. Factual approach to decision making to ensure its accuracy. Continual improvement processes for improved business results. Development of suppliers to get right product and services in right time at right place. Product/Market wise performance: The total turnover is Rs 341 Crores during the financial year 2006-07 against the turnover of 292.02 Crores in 2005-06. Today Heritage distributes quality milk & milk products in the states of A.P, Karnataka, Kerala & Tamil nadu. During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs against Rs.24525.23 lakhs in the previous year. The sales of miik products including bulk sales of cream, ghee and butter were recorded Rs 5781.59 lakhs against Rs 4677.21 lakhs. Outlook: Considering the growth potential in the liquid milk market, the company has drawn plans to increase its market share in the existing markets and to enter into new markets there by doubling revenues in dairy business in the next 3 years. To achieve this object, company is undertaking major expansion in dairy business by inverting over Rs20 crores during 2006-07 and over Rs10 crores during the current year to strengthen the milk procurement. 31

Heritage Slogan When you are healthy, we are healthy When you are happy, we are happy We live for your "HEALTH & HAPPINESS"

SPENCERs company profile

Since 1863, Spencers has been a part of the Indian retail landscape. At one time, the Spencers Empire stretched from Peshawar to Cochin, from Karachi to Chittagong, spanning the length and width of undivided India. Originally owned by a British gentleman yes, there was a Mr. Spencer (John William Spencer, to beprecise) it acquired Indian ownership in the 1960s, and became part of the RPG Group in 1989. In 1995, RPG Enterprises, the flagship company of the RPG Group, launched Foodworld as a joint venture with Hong-Kong based Dairy Farm International. The joint venture, which operated supermarkets under the name Foodworld and hypermarkets under the name Giant, was terminated in 2006. RPG retained 48 of the 93 stores it owned. These were re-furbished and their launch under the brand name, Spencers, kicked off a newphase in both the history of the Spencers brand, and the retailin India. The following characteristics distinguish the Spencers brand and create memorable 360 shopping experiences for consumers: Products we offer the widest range of food and lifestyle (fashion, home, entertainment) brands, with a special expertise in food Quality we lay a huge emphasis on all-round quality: in products, stores, service standards, and customer engagement programs and that too since our inception at 1863 Multiple Formats from daily to weekly and specialty shopping, we fulfill every need and provide maximum convenience Promotions we seek to offer the right products at the right time at the right price, with 32

promotions carefully designed to suit the buying cycle and shopping basket of the consumer Brand Imagery our stores and staff seek to make our customers feel right at home, being international, contemporary, accessible, empathetic and trusted Heritage we are Indias oldest retailer, with many firsts to our credit.

INNOVATIONS
Throughout its long history (the first ever Spencers store opened in 1895), Spencers has been a recognized zand respected player in the Indian grocery business, synonymous with quality goods and services, trusted byIndias exploding population of the upwardly mobile middle class. Spencers has continually helped reshape the retail landscape in India, introducing a host of innovations to make shopping even more convenient and enjoyable for the consumer. These include:

RETAIL DESIGN INITIATIVES

The Retail Design team helps Spencers deliver its brand promise in a way that is sophisticated, but not snobbish. This results in differentiation without alienation of loyal customers or loss of the brand equity acquired over the years. Central to the retail design strategy is a unique brand position - Taste the World, derived from the consumers own transition from a price-conscious purchaser to a global-minded, well-travelled citizen of the world, looking out for authentic international flavors and experiences. Spencers has consequently evolved from being a preferred grocery retailer to being a passport to a stimulating world. This is evident in: Storefront Design the store entrance resembles that of an entrance arch, leading in the shopper to a world that is welcoming and exciting Interior Design to ensure that shoppers enjoy a warm and friendly ambience, an upscale look and feel, the joy of exploring and the convenience of locating what they 33

want Shopfit Design from chefs tables to signage aids, the emphasis is on attractive, spaceefficient, and low-maintenance presentation of modern, international goods alongside local flavors and product experiences

PRODUCT INITIATIVES
All supermarkets and hypermarkets sell the same things, right? Wrong. While we do stock popular ranges, we go to a great deal of effort to ensure you a unique range of product Gourmet Centre - Run by an expert Food Scientist cum Cordon Bleu Chef, our food innovation wing researches world cuisines and develops recipes for a wide range of popular and trendsetting dishes. These form the basis for developing our own range of products, which include delicious cookies and sauces, pickles and jams. Ingredients for these dishes are also retailed through our stores, for those whod like to prepare the dishes at home. Spencer's Patisserie - The Fresh Baked Daily -Spencers Patisserie is Spencers LIVE Bakery offering simple, specialty and exotic range of freshly made bakery and confectionery items. The recipes are authentic, gathered from the best ones from all across the world, including Indian favorites. The products are an ideal mix of simple, specialty and exotic varieties from all across the world, including Indian favorites. Be it Focaccia-the Italian flat bread, Baguette-the French classic, Spicy Salsa Picante Breadthe Mexican twist, Masala Bread-pure Indian, White Bread-the simple one, Multigrain & Whole Wheat Bread-for the health conscious are some of the breads. Hot Puffs, the dry fruit cakes, Exotic cookies , mouth-watering cakes and pastries like Blueberry Cheese Cake, Trio of Chocolate ,Black Forest cater to all.

34

STORE EVENT INITIATIVES

In-store event initiatives ensure that a visit to Spencers is always a memorable experience. Live Kitchen - Live Counters with Master Chefs preparing gourmet delights are always popular at buffets we brought the concept to our stores in the form of the Spencers Chef Corner, a first-of-its-kind in-store experience that involves customers even as it showcases the ingredients displayed in our Specialty Bays. From Salads to Sushi, from Pastas to Satays and from Cheese Fondue to Cool mocktails, Spencers Chef Corner gives customers an opportunity to learn more about their favourite world cuisines. Modern Menu Footsore and still not done with your shopping? Stop by at our food court and treat yourself to a shake, swirl or savoury. OWN BRANDS Private Brands in Spencers offer a wide range of products from food, personal care, fashion to home utility items. Spencers Smart Choice, Tasty Wonders, Clean Home and Maroon are some of our brands which host a varied choice that fulfils almost all needs of a modern household. Rice, pulses, whole spices, dry fruits and nuts, sauces, instant noodles, breakfast cereals, honey, breads, beverage, wafers, pickles, jams and cookies- to name a few in our food range. While our personal care range covers face wipes, tissues, baby needs, hand wash etc. Detergents, dish wash, toilet cleaners, floor cleaners support the home needs. Whats more- our pickles are customized to regional flavours as well. Our South Indian range of pickles has a wide assortment catering to regional tastes. All our private brand products are conveniently priced and come with a promise of great quality. All these brands and products are available in all stores.

RELIANCE company profile

Reliance Fresh is the convenience store format which forms part of the retail business of 35

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.

HISTORY
Post launch, in a dramatic shift in its positioning and mainly due to the circumstances prevaling in UP, West Bengal and Orissa, it was mentioned recently in news dailies that, Reliance Retail is moving out of stocking fruits and vegetables. 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 and wellness , with food accounting for the bulk of the business. 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 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. Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various formats that Reliance has rolled out. Reliance Fresh opens six more retail stores in AP The Reliance Fresh retail rush is on. The company opened six more stores at Saket, Dilsukhnagar, Bowenpally, Vengalraonagar, Miyapur and Uppal, taking the total to 17 in the city. According to company sources, "It is an ongoing process and only six more stores have been opened. But when we reach a substantial figure, we will definitely come out in a big way." The sources said that the 17 stores put together have been averaging around Rs 15-16 lakh daily and around 800-1,200 footfalls daily. The six stores with a size of 2,500-4,000 sq ft each made around Rs 6.5 lakh in the first one week, he added. In the first phase, the company opened 11 pilot stores on November 36

3, offering fresh vegetables, fruits, flowers and grocery items. It plans to touch a figure of 40stores in the twin cities in the coming days. Talking to media persons at the China Waltair store on the occasion, its' customer operations head, K.S. Venugopal, said Reliance Fresh would carry fresh fruits and vegetables, staples, top-up grocery, non-food items and dairy products and a whole lot of other categories at very competitive prices. All the stores opened in the city have an average area of about 1,800 sqft and an average of about 20 sales associates attending to customers in each store open from 8 a.m. to 9 p.m. on all seven days of the week. "I am glad we are opening about 40 stores in Andhra Pradesh alone by this March end. By June, we hope to open between 75 and 100 stores in the State on the Fresh format. There are 21 stores in Hyderabad, and seven in Vijayawada and Guntur bringing the total to 56 excluding the three opened here," he said. VAST STOCK Replying to questions, Mr. Venugopal said all the stores there were roughly 200 varieties of fruits and vegetables at the stores. The stock value would be to the tune of Rs.25 lakhs on the average. Apart from the fresh vegetable and fruits procured within 50 km. of the stores, there were also many varieties from elsewhere in the State and country and imported apples from the US, grapes from California, and other parts of the world, he said. RIL is targeting not only the households but also streetside vegetable sellers. According to sources, RIL is setting up Ranger Farms outlets that will specifically service streetside vegetable sellers who can stock up on fresh farm produce. The Ranger outlets will open at 2 a.m. and continue selling produce to vendors till 9 a.m. The Ranger format is something in the lines of German major Metro Cash & Carrys operations in India. But while Metro targetsnlarger retailers such as restaurant chains and bulk consumers, RIL is expected to forge a relationship with streetside vegetable sellers through the Ranger concept. It is not yet clear whether separate outlets will be opened for Ranger Farm or the existing Fresh outlets will function as Farms by the night. Guninder Kapoor, president and CEO of Food Business at RIL, says the Fresh stores at Hyderabad are part of a pilot project. This is a pilot project which will help us 37

understand customer needs. The pilot for this format will be taken to many other cities over the next few months. Next on the companys list are bigger cities, including Delhi and Mumbai. RIL has already said that it will invest close to Rs 25,000 crore over the next five years in the retail business. The company plans to establish 4,000 retail outlets across various formats by then, and is eyeing sales of Rs 1,00,000 crore over the five-year period from the retail business. Besides Reliance Fresh, the company also plans to launch larger format stores called Feel Fresh Plus which will be spread over 10,000-15,000 sq ft. The Fresh Plus stores will stock fruit and vegetables as well as apparel, consumer electronics, FMCG items and even medicines. From Hyderabad, these stores will travel to Mumbai and Delhi where Reliance has identified up to 80 locations each. But even as the retail debut kicks off with fruit and vegetables, it seems the company is doing a rethink on whether to get into the larger formats such as hypermarkets and supermarkets. These two formats require over 1 lakh sq ft of space and may not come up at prime city locations. Instead, Reliance is contemplating tapping alterative sites such as the SEZs for opening hypermarkets. ORGANIZED RETAIL Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organisation that caters to millions of customers, thousands of farmers and vendors. Based on its core growth strategy of backward integration, RRL has made rapid progress towards building an entire value chain starting from the farmers to the end consumers. In the last year, Reliance Retail Limited (RRL) continued to fulfill its commitment of enriching Indian consumers shopping experience and providing quality merchandise at an attractive value proposition. More than 3 years into operation, RRL has now expanded its presence in more than 85 cities across 14 states in India. RRL forged ahead with its expansion plans and rolled out stores across the country. RRLs footprint now spans a network of more than 1,000 stores. RRL operates several value & specialty formats. The value formats that RRL 38

operates are: Reliance Fresh, a neighborhood concept, Reliance Mart, an all under one roof supermarket concept & Reliance Super, a mini-mart concept. The value formats offer a wide range and assortment of products required for daily household needs. The specialty formats are: Reliance Digital, a consumer durables & information technology concept,Reliance Trends, an apparel & accessories concept, Reliance Wellness, a health, wellness & beauty concept, iStore by Reliance Digital, an exclusive Apple products concept, Reliance Footprint, a footwear concept, Reliance Jewels, a jewellery concept, Reliance TimeOut, a books, music & entertainment concept,Reliance AutoZone, an automotive products & services concept and Reliance Living, a homeware, furniture, modular kitchens, furnishings concept. RRL rapidly expanded the stores network it operates through strategic partnerships with world-class companies such as Marks & Spencer and Pearl Europe. RRL also entered into an exclusive distribution arrangement with Asics Corporation Japan to market Asics brands of shoes. and accessories in India. OFFICE DEPOT Through Reliance One, RRLs loyalty membership program, RRL enjoys the patronage of over 5.5 million customers. In the coming year, RRL will continue on its mission to delight the customers every visit. RRL will continue to provide unprecedented value to customers across all its formats and stores 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. GROWTH THROUGH VALUE CREATION With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Groups foray into organized retail.

39

CHAPTER - 4

40

4.1. DATA ANALYSIS AND INTERPRETATION Table: 1 Which among the following feature/factors were influenced you to Purchase? Super market Heritage Opinion No of Percentage responds Price 13 26% Performance 20 40% Low 12 24% maintenance Stylish look 5 10% Total 50 100% Reliance No of Percentage responds 10 20% 15 30% 13 26% 12 50 24% 100% Spencers No of Percentage responds 20 40% 15 30% 8 16% 7 50 14% 100%

40 35 30 25 20 15 10 5 0

H e r ita g e R e lia n c e S p e n c e r 's

p r ic e

p e rfo rm a n c e L o w S tylis h lo o k m a in t e n a n c e

INTERPRETATION: From the above table, 40% of the respondents feel that Heritage super market 41

performance are very well, 30% of the respondents think the Reliance super market performance are good, 40% of the respondent think the Spencers super market prices are very good.

Table : 2 What is the first thing that comes to your mind when you think about super market? Super market Heritage opinion No of Percentage responds Price 17 34% Offers 6 12% No.of 13 26% Products Response 14 28% Total
35 30 25 20 15 10 5 0 p r ic e O ffe r N o . o f p r o d u c ts Re s pons e H e r ita g e R e lia n c e S p e n c e r 's

Reliance No of Percentage responds 15 30% 9 18% 15 30% 11 50 22% 100%

Spencers No of Percentage responds 16 32% 13 26% 12 24% 9 50 18% 100%

50

100%

INTERPRETATION: From the above table, 34% of the respondents feel that Heritage super market prices, 30% of the respondents think the Reliance super market prices and no of products, 32% of the 42

respondent think of Spencers super market prices are concerned when they think about super market.

Table :3 How do you rate prices offered by this super market? Super market Heritage Reliance opinion No of Percentage No of Percentage responds responds High 8 16% 12 24% Medium 18 36% 20 40% Low 15 30% 13 26% Very Low 9 18% 5 10% Total 50 100% 50 100%

Spencers No of Percentage responds 8 16% 14 28% 18 36% 10 20% 50 100%

40 35 30 25 20 15 10 5 0 High M e dium Low V e ry Low He r ita ge Re lia nc e S pe nc e r's

43

INTERPRETATION: From the above table, 36% of the respondents rated Heritage super market prices as medium and 40% of the respondents rated Reliance super market prices as medium and 36% respondents rated Spencers super market prices as low

Table : 4 What comes to your mind when you think of this super market? Super market Heritage opinion No of Percentage responds Reputed 15 30% known brand Low 15 30% maintenance Good service 8 16% High 12 24% performance Total 50 100% Reliance Spencers No of Percentage No of Percentage responds responds 18 36% 13 26% 6 12 14 50 12% 24% 28% 100% 20 9 8 50 40% 18% 16% 100%

40 35 30 25 20 15 10 5 0 H e r ita g e R e lia n c e S p e n c e r 's

R e p u te d Lo w hn o w n b ran d m a in ta n c e

Good H ig h s e r v ic e p e r fo r m a n c e

44

INTERPRETATION From the above graph it is understood that the reputed brand influenced most of the respondents in case of Heritage and Reliance fresh respondents think about its low maintenance. but in Spencers most of the

Table : 5 How did you first hear about this super market? Super market Heritage opinion No of Percentage responds T.V 9 18% News paper 20 40% Magazine 15 30% Internet 6 12% Total 50 100% Reliance No of Percentage responds 15 30% 17 34% 8 16% 10 20% 50 100% Spencers No of Percentage responds 10 20% 21 42% 12 24% 7 14% 50 100%

45 40 35 30 25 20 15 10 5 0

He rita ge Re lia nce S pe nce r's

T.V

Ne w s pa pe r M a ga z ine

Inte rne t

INTERPRETATION: From the above table, 40% of the respondents know about Heritage super market in News paper, 34% of the respondents know about Reliance super market in News paper, 42% of the respondents know about Spencers super market in News paper. 45

Overall the most of the respondents are aware about the super market by means of News paper.

Table : 6 If you have seen the advertisement of this super market, what did you feel about the advertisement? Super market Heritage opinion No of Percentage responds Excellent 10 20% Good 16 32% Satisfactory 18 36% Bad 6 12% Total 50 100% Reliance No of Percentage responds 9 18% 20 40% 15 30% 6 12% 50 100% Spencers No of Percentage responds 7 14% 17 34% 20 40% 6 12% 50 100%

40 35 30 25 20 15 10 5 0 Ex ce lle n t Good S a tisfa cto ry Ba d H e rita g e R e lia n ce S p e n ce r's

INTERPRETATION: From the above graph it is clear that 36% of advertisement given by respondents felt satisfied with the Heritage and 40% of respondents felt satisfied with 46

advertisement given by Spencers. In case of Reliance fresh about 40% felt good about the advertisement.

Table : 7 Were the advertisement motivated you to buy from the super market? Super market Heritage opinion No of Percentage responds Strongly 14 28% agree Agree 29 58% Disagree 4 8% Strongly 3 6% disagree Total 50 100% Reliance Spencers No of Percentage No of Percentage responds responds 10 20% 10 20% 27 5 8 50 54% 10% 16% 100% 30 7 3 50 60% 14% 6% 100%

60 50 40 30 20 10 0 S to r n g l y a g re e A g re e D i sa g r e e S tro n g l y d i sa g r e e H e ri ta g e R e lia n ce S p e n c e r 's

INTERPRETATION: From the above graph it is clear that most of the respondents i.e., more than 50% agreed 47

that the advertisement given by the super market motivated them to buy from the super market.

Table : 8 What is the source of influence to purchase a product from this super market? Super market Heritage Reliance Spencers opinion No of Percentage No of Percentage No of Percentage responds responds responds Advertisement 10 20% 12 24% 6 12% Friends 13 26% 6 12% 13 26% Schemes 7 14% 8 16% 10 20% Brand 20 40% 24 48% 21 42% Total 50 100% 50 100% 50 100%

50 40 30 20 10 0 Ad ve rtism e n t F rie nd 's S ch e m e s Bra n d He rita g e Re lia n ce S p e n ce r's

INTERPRETATION: From the above table, 40% of the respondents in Heritage super market and 48% of the 48

respondents in Reliance super market and 42% of the respondents in Spencers super markets felt that Brand was influenced them to purchase products.

Table : 9 Are you aware of new products launched by this super market? Super market opinion Yes No Total Heritage No of Percentage responds 38 76% 12 24% 50 100% Reliance No of Percentage responds 40 80% 10 20% 50 100% Spencers No of Percentage responds 35 70% 15 30% 50 100%

80 70 60 50 40 30 20 10 0 Yes No Heritage Reliance Spencer's

INTERPRETATION: From the above table most of the respondents i.e. above 75% are Aware of new product launched by the super market.

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Table : 10 Overall, are you satisfied with this super market? Super market opinion Yes No Total Heritage No of Percentage responds 33 66% 17 34% 50 100% Reliance No of Percentage responds 40 80% 10 20% 50 100% Spencers No of Percentage responds 37 74% 13 26% 50 100%

80 70 60 50 40 30 20 10 0 Yes No Heritage Reliance Spencer's

INTERPRETATION: From the above table 66% of respondents in Heritage super market and 89% of the respondents in Reliance super market and 74% of the respondents in Spencers super 50

market were satisfied.

Table : 11 Please give your opinion on following aspects? HERITAGE: Product Very satisfied Food Vegetables Daily used products Clothing Furniture 10 16 18 6 15 Some what Neutral satisfied 20 15 12 10 12 9 7 10 15 14 Some what dissatisfie d 5 7 5 10 5 Very dissatisfied 6 5 5 9 4

RELIANCE: Product Very satisfied Food Vegetables Daily used products Clothing Furniture 15 18 16 4 6

Some what Neutral satisfied 18 12 10 8 10 8 10 11 12 14

Some what dissatisfie d 5 7 8 14 11

Very dissatisfied 4 3 5 12 9

SPENCERS: Product Very satisfied Food 9

Some what Neutral satisfied 15 12

Some what Very dissatisfie dissatisfied d 8 6

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Vegetables Daily used products Clothing Furniture

8 10 14 10

15 14 10 12

15 16 12 13

5 4 8 8

7 6 6 7

Weighted average mean: Product Food Vegetables Daily used products Clothing Furniture Heritage 0.46 0.6 0.66 -0.12 0.58 Reliance 0.7 0.7 0.48 -0.44 -0.06 Spencers 0.26 0,24 0,36 0,36 0,2

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CHAPTER - 5

53

5.1 FINDINGS
1. Customers of the age group 20-30 showed interest in giving their response compared to others. 2. Majority of the respondents ie, adults are interested in trying new products. 3. Many customers income ranges from 15000-25000 per month who shop at super market. 4. Heritage and Reliance fresh have 100% recognition rate. 5. Heritage, Reliance fresh and Spencers have 100% recall rate, but it is not on the top mind of all the respondents. 6. USP of Heritage, Reliance fresh and Spencers are reasonable price, but only 58% of people reel the same with it. 7. T.V and News paper are very effective means of advertisement. 8. Majority of the respondents Agrees that Brand motivates in buying a product. 9. Majority of the surveyed customers rate the new products introduced into super market are better and satisfactory. 10. Though majority of the models produced by Heritage, Reliance fresh and Spencers are awareness in market, still there are many brands in the market. 11. From the survey it is clear that respondent's on the whole opinion about Heritage, Reliance fresh and Spencers are good. 12. Customers feel that they should be informed about new products by executives and announcements. 13. Some customers also feel discounts should be offered for products at super market. 14. The customers trends & buying behavior are influenced by many factors like price, quality of the products and also external factors like friends and neighbors in buying new products.

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5.2. Conclusion

1. Brand awareness, In general, means the extent to which a brand associated with a particular product is documented by potential and existing customers either positively or negatively. Creation of brand awareness is the primary goal of advertising at the beginning of any product's life cycle in target markets. In fact, brand awareness has influence on buying behaviour of a buyer. Brand awareness can be measured by showing a consumer the brand and asking whether or not they knew of it beforehand 2. Brand Recognition is the extent to which a brand is recognized for stated brand attributes or communications 3. In some cases brand recognition is defined as aided recall - and as a subset of brand recall. In the case, brand recognition is the extent to which a brand name is recognized when prompted with the actual name. 4. A broader view of brand recognition is the extent to which a brand is recognized within a product class for certain attributes. Logo and tagline testing can be seen as a form of brand recognition testing. The customers have been shifting form using traditional products, mostly the younger generation, this is a good opportunity in capturing a huge market share, but competition from rivals should also be taken care off and more product innovations must be done such a way that it should satisfy the customers to a maximum extent which would improve the sales volume. There are wide range of factors which influence the attitudes of the customer which are internal factors like quality of the products, price of the products and advertisements and promotional issues and external factors like substitutes from competitors, and majority are influenced by neighbors and friends in using a new products which may cater their need or increase their prestige levels.

55

5.3 Suggestions
1. Heritage, Reliance fresh and Spencers has good recognition and recall rate but it is not on the top of the mind of all the respondents. Thus it is clear that it still has scope in creating awareness. It can be attained by aggressive advertisement and dominate the ads of other brands with Unique advertisements. 2. As majority of the respondents feel that advertisement plays a major role in motivating and it is the driving factor in buying a product, thus it is essential to concentrate on advertisement to increase their market share. 3. From the survey it is clear that all the models are not equally aware in the market, this is because of the impact of the previous model produced, i.e. if a model produced by Heritage, Reliance fresh and Spencers becomes very successful then the successive model is left unaware by most of the people as their concentration is on the successful model, to over come this problem, Heritage, Reliance fresh and Spencers has to use various means to communicate the people about the new model, some of such means are, Event sponsorships, and using Sports men as Brand ambassadors etc.. 4. Store personnel must effectively use visual merchandising strategies like attractive and special displays, announcements to let the customers know about newly launched products. 5. Customers are interested in trying new products but some ask for small trial packs for testing, this must be provided to possible extent. 6. Rapid advertisements must be done in order to ensure the awareness of customers about new products. 7. Customer mindsets have been changing from using traditional products, as this is chance marketers and retail firms must concentrate on new and innovative products more and more. 8. As the customers are satisfied with Heritage, Reliance fresh & Spencers, it should be maintained and improved to a possible extent to ensure future business growth. 9. As on the whole opinion of respondent about Heritage, Reliance fresh and Spencers is very good, it needs to maintain it with good Service. 56

ANNEXURE

57

Questionnaire
I am student of MBA conducting a survey as a part of curriculum and would be grateful if you could spare some of your precious time and please fill this questionnaire Personal profile Name Age Gender Qualification Profession Income Area : : : : : : : ( )

1).Which among the following feature/factors are influenced you to purchase items? A. Price B. Performance
C. Low maintenance D. Stylish look

2).What is the first thing that comes to your mind when you think about super market?
A. Price C. No. of products A. High C. Low B. Offers D. Response

3). How do you rate prices offered by this super market?

B. Medium D. Very Low

4). What comes to your mind when you think of super market?
A. Reputed known brand C. Good service B. Low maintenance D. High performance

5). How did you first hear about super market?

A. TV C. Magazine B. News paper D. Internet

6). If you have seen the advertisement of this super market, what did you feel about the advertisement? (
A. Excellent C. Satisfactory B. Good D. Bad

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7). Where advertisement motivated you to buy from the super market? A. Strongly agree B. Agree C. Disagree D. Strongly disagree 8). what is the source of influence to purchase from super market? A. Advertisement B. Friends C. Schemes D. Brand 9). Are you aware of new products launched by super market? A. Yes B. No 10). Overall, are you satisfied with super market? A. Yes B. No 11). Please give your opinion on following aspects? A. Yes B. No

( ( (

) ) )

12). Any suggestions to improve ____________________________________________ ___________________________________________

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Bibliography

BOOKS:
1. DAVID.A.AKER {Managing Brand Equity} 2. PHILLIP KOTLER&KELLER {Marketing management}(13th edition) 3. SWETHA JOHRI {Brand management}

Websites: 1. http://w\vw.HERITAGEFRESH.com/ab/aboutus_landing.asp 2.
http://www.HERITAGEFRESH.com/knowing-HERITAGE-

FRESH.aspx http://www.RELIANCE.in/corporate_profile.asp
3. http://www.futuregroup.in/awards.asp 4. http://www.scribd.com/search? Cat=redesign&q=SPENCER 5. http://imvp.mit.edu/papers/96/Krishnan.pdf

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