PROJECT ON SHOPPERS STOP AND

RELIANCE FRESH RETAIL STORES

Submitted to: Mrs. Aprajita Submitted by: Poonam thakur

MBA IIIrd semester
A30101909050
History of Retailing
1870’s : General Stores

1870’s onwards : Increase urbanization in west due to increase

industrialization; growth of specialty store.
1880’s Great Atlantic and Pacific Tea Company started as a modern chain of stores.
1890’s : Department store start appearing on the scene which is bigger in size and stock variety is
considerably increased.
1920’s supermarkets appear

1920’
Post world war Trend of discount stores starts where the products are
made available to buyers at lower than MRP prices; this
format catches on rapidly in the USA and UK and is a
huge success.
1970’s the bigger stores and malls start moving to the suburbs in USA.
1995+ : Evolution on Net based retailing.

Evolution of Indian Retail Industry

For Indian retailing, things started to change slowly in the 1980’s when India first began opening its
economy. Textiles sector was the first to see the emergence of retail chains.
Later on Titan, maker of premium watches successfully created an organized retailing concept in
India by establishing a series of elegant showrooms.
For long these remained the only organized retailers but the latter half of the 1990s saw a fresh wave
of entrants in the retailing business.
This time around it was not the manufacturer looking for and alternative sales channels. These were
pure retailers with no serious plans of getting into manufacturing. These entrants were in various
fields, like Food World, Subhiksha, Big- Apple and 6-ten in Food and FMCG; Planet M and music
World in music.

Some of the interesting facts about the Indian consumer markets are:
• Consumption not income differentiated the consumer segments
• The middle class comprises of three different segment viz. consuming class (upper middle),
climbers (middle) and aspirants (lower middle).
• Consumer durables are purchased by up to 30 m households whereas non-durables are
purchased by up to 90 m house holds annually.

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 • 40-60% of consumer durables are financed
• Market expansion power of smaller unit packs of FMCG’s has already been marked e.g.2/3rd
of the total shampoo sales in the country is through sachets.
• Exchange schemes which were launched with much fanfare in the metros in the earlier part
of the previous decade and drawn a tremendous response and continue to do so though at a
lower scale than before.
• The consumer India is not huge, homogeneous, and predictable as people expect. Instead, it
is schizophrenic and unpredictable.
• 75 million households, called ‘consuming classes’ with annual income
between 50000 to 3 lacs.
• 1 Million Households in creamy layer with income at par with International.
• Higher disposable income and easier financing options.
• Convenience overriding price consideration.

Indian Scenario of Retailing

The retail market size in India is estimated to be around $180 -200 billion. Retailing provides jobs to
almost 15 percent of employable Indian adults and it is perhaps the largest contributor to India’s
GDP. But the flip side of the coin is that the average size of each of the retail outlet in India is only
50 sq. feet and though a large employer, the industry is much unorganized, fragmented and with a
rural bias.
In India the vast middle class and its almost untapped retail industry are the key attractive forces for
global retail giants wanting to enter into newer markets, which in turn will help the Indian retail
industry to grow faster.
The food retail industry in India dominates the shopping basket.
The mobile phone retail industry in India is already a US$16.7 billion business, growing at over 20
% per year that is because of growing consumer demand, supply chain dynamics and marketing
interventions.
The segments expected to grow attractively are packaged water, fruit based, Beverages, dairy-based
beverages (fresh/chilled flavored milk and lassie) and packaged water. These have grown
attractively over the last few years and are expected to sustain growth following growing concerns
about hygiene and purity.

The trends that are driving the growth of the retail sector in India are:
• Low share of organized retailing
• Falling real estate prices
• Increase in disposable income and customer aspiration
• Increase in expenditure for luxury items.

Retail Market in India

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Size 2004 (Rs. Bn) 2010 (Rs. Bn)
Estimated size of retail in 9300 14000
India
Share of Organized retail (%) 3 10-12
in India
Size of organized retail in 280 1400-1500
India

Source: KSA Techno park

Challenges of Retail Industry

The kirana
The kirana practices customer relationship management (CRM) diligently. The shopkeeper knows
the customers’ families, their purchase history and their needs. Consumer familiarity runs downs
from generation to generation. There is no major dissatisfaction with these stores (open for long
hours, home delivery etc..) Consequently a large number of customers are not willing to pay a
premium for the shopping experience promised by the large format retail.

High cost for the organized sector

Traditional retailing has been established in India for some centuries. It has a low cost structure, is
mostly owner operated, and has negligible real estate and labour cost and little or no taxes to pay. In
contrast, players in the organized sector have high expenses to meet and yet have to keep prices low
enough to be able to compete with the traditional sector.

Strong IT support
The backbone of retailing is IT. It would require large investments that connect every aspect of the
operations seamlessly, from suppliers to the cash counters. For example shoppers’ stop can track
sales and place orders based on scientific demand projections.

Poor infrastructure
Indian infrastructure is not fully developed yet. Roads and railways infrastructure need to be
developed. The efficiency in supply chain is far below the international benchmark.

Retail Sector Classification

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Retailing is not bound or restricted by product categories, any consumer goods manufactured buy a
company can be retailed and made available in the market, can be retailed ranged from food to books
to toys etc.
Entire retailing market in India can be divided into traditional retail stores and modern retail stores.
While traditional retail stores form the unorganized segment of the market can be further categorized
in four different ways:
• On the basis of Area Covered by various stores.
• On the basis of Products Retailed by various stores.
• On the basis of Ownership Arrangement and product categories.
• On the basis of Readiness for riding the expected retail boom.

Categorization on the basis of area covered by various stores:

• Neighborhood stores: - they have an area in the range of 100-500 sq.ft. and keep items
pertaining to daily use ranging from food and grocery to stationery etc.
• High street stores: - They have an area ranging between 300-1000 sq.ft. and generally
specialty stores keeping only particular product category.
• Small department stores: - They have area in the range of 500 -2000 sq.ft. and these stores
generally keep grocery and other daily use items.
• Specialty stores: - They have an area in the range of 5000-50000 sq.ft. and keep items
pertaining to only one particular product category.
• Shopping Malls: - They come at top of this retail pyramid and keep products ranging all the
product categories.

Categorization on the basis of products retailed by various stores:

• Food Retailing Stores: Stores can be further subdivided into fast food retailing stores, other
fresh food stores and groceries stores.
• Apparel Retailing Stores: Can be sub-categorized into women apparel; men’s apparel and
children wear stores.
• Pharmaceutical Retailing Stores: Stock pharmaceuticals and cosmetics.
• Entertainment Retailing Stores: It can be further sub categorized into books music and
lifestyle stores.
• Fuel Retailing Stores: Attached with petrol pumps, they usually stock a limited range of
items of daily use.

Categorization on the basis of ownership arrangement and product categories:

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 • Department Stores: The retail outlets that offer a number of products and a number of
brands under one roof and the entire store is divided in to a number of department with each
department offering one category of products. These stores offer everything except grocery
products.
• Super Market: These offer products related to grocery and other food categories.
• Consumer Durable Stores: They can be sub categorized into electronic goods store, book
and music stores.
• Franchisee Stores: Can be categorized into apparel, footwear, gifts and cards, watches and
jewelers stores.

Categorization on the basis of readiness for riding the expected retail boom:
• Ready to Go: Those retail categories, which have all the inputs in place and all development
for the sector to take off has taken place.
• Shape and Adapt: These are those retail categories, which require development in logistics,
cold storage facilities and some development in sourcing arrangement.
• Wait and watch: These are the retail categories, which are waiting for regulatory permission
to take off.

Type of Market

Major formats of in-sector retailing have been listed in table given below:

Format Description The value proposition

Branded stores Exclusive showrooms either owned or Complete range available for a
franchised out by a manufacturer. given brand certified product
quality.

Specialty stores Focus on a specific consumer need ,carry Greater choice to the consumer
most of the brands available comparison between brands
possible
Department stores Large stores having a wide variety of One stop shop catering to varied
products organized into different department consumer needs.
such as clothing, house-wares, furniture,
appliances, toys etc.
Supermarkets Extremely large self-services retail outlets. One stop shop catering to varied
consumer needs.
Discount stores Stores offering discounts on the retrial price Low prices
through selling high volumes and reaping
the economies of scale.

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Hyper-mart Larger than a supermarket sometimes with a Low prices vast choice available
warehouse appearance generally located in including services as cafeterias.
quieter part of the city
Convenience Small self service formats located in Convenient location and extended
stores crowded urban areas. operating hours.

Shopping malls An enclosure having different formats of in- Variety of shops available close to
store retailers, all under one roof. each other.

Role of Supply Chain in Indian Organized Retail Sector

The role of supply chain in Indian organized retail is very significant. The growth of this sector
depends on effective supply chain. The Indian Supply Chain Council have been formed to explore
the challenges that a retailer faces and to find possible solutions for India.
The role of supply chain in the organized retail sector in India should be a shelf- centric partnership
between the retailer and the manufacture for this it will create supply chains that are loss free.
In the organized retail sector in India the presence of fresh produce (vegetables and fruits) is very
small. This is so for the nature of supply chain is very fragmented. This shows the important role of
supply chain in the organized retail sector in India.
In the organized retail market in India the role of supply chain is very important for the Indian
customer demands at affordable prices a variety of product mix. It is the supply chain that ensures to
the customer in all the various offerings that a company decides for its customers, be it cost, service,
or the quickness in responding to ever changing tastes of the customer.

The infrastructure in India in terms of road, rail, and air links are not sufficient. And so warehousing
plays a major role as an aspect of supply chain operations. To overcome these problems, the Indian
retailer is trying to reduce transportation costs and is investing in logistics through partnership or
directly. The Indian organized retail sector is growing so the role of supply chain becomes all the
more important. It should become all the more responsive and adaptive to customers demand. There
is also need for the supply chain to be more cost efficient and collaborative to win the immense
competition in this sector.
Taking advantage of Accenture's long experience in retail and supply chain optimization, retailers
can:
• Understand and balance the three key dimensions— These are availability, inventory and
cost.
• Create strategy—Success comes from placing the supply into the context of the overall
strategy.
• Integrate demand and supply — Effectively integrating supply and demand will drive
efficiency and reduce cost.
• Integrate technology for collaboration— Develop an end-to-end supply chain view,

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 integrating advanced planning and scheduling software with enterprise resource planning,
customer and supplier systems.
• Create uniform performance measures— Many companies do not have established metrics
which are essential to creating high performance.
• Source optimally—Leverage partnerships and outsourcing intelligently to build sustainable
competitive advantage through the supply

RELIANCE FRESH RETAIL CHAIN

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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
Reliance Fresh Retail is the subsidiary of Reliance Mukesh Dhirubhai Ambani group. It is a part of
Reliance Mart which is the second largest hypermarket in Kolkata, West Bengal and has a big
presence in many states including utter Pradesh, Gujarat etc. The reliance is planning to open lot
more store in Delhi mean a Reliance Fresh store at every five kilometer radius to reach in every
small and big part of Delhi.
Reliance is targeting 20-25% of market share of the organized retail in near future.
Mukesh Ambani, the Chairman and Managing Director of Reliance Mukesh Dhirubhai Group said,
“Organized retail has the potential to trigger socio-economic transformation on an unprecedented
scale in our country and will bring about enormous spin-off benefits to the Indian economy and its
various constituents. The launch of Reliance Fresh is yet another step by Reliance Retail onwards
providing an international shopping experience to all our customers at unmatched affordability,
guaranteed quality and choice of products and services”.

Procedure and Functioning of Reliance Fresh:

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Reliance fresh is now a days very much popular among the people of NCR region but also known in
other state too. The reliance fresh provide the quality and economic product to its customer.
The procedure and functioning adopted by the Reliance Fresh is much better than the other retail
store of same category.
The Reliance Fresh management has divided its product in different category so that the procedure
and functioning can be smooth and effective and save time.

Warehouse:
There are four warehouse of reliance fresh in Delhi which fulfills the demand of its customer
through providing the product available in its retail out let in different location in Delhi.
The warehouses are numerically numbered like warehouse 1,2,3,4 in such a way that they are related
to the particular type of product. Each warehouse deals in the particular type of product, like
warehouse 1is basically related to the storage and purchase of the vegetable and fruit and it is
situated in the AZADMANDI, so that the fresh vegetable and fruit can be available to its customer
on time.
The purchase department at this warehouse sometimes also deal and purchase the seasonal vegetable
from the FARMARS when ever required.
Warehouse no.2 deals with the product comes under the category of STAPLE items like
ATTA,DAL,SUGAR etc. warehouse no.2 purchase the product in bulk from the market in bulk so
that the some discount can be get. Sometime few products also purchased directly from the
manufacturers so that the quality can be maintained and price can be negotiated to the
manufacturers. Warehouse no..3 and no.4, similarly deals in different category of the product.

Warehouse of Reliance Fresh

S.No. Type of Ware house Products Location
Vegetable, Fruits
1 Warehouse No.1 Azad mandi
&Dairy item
2 Warehouse No.2 Staple item Naraina

3 Warehouse No.3 Toilet and cosmetics Naraina

4 Warehouse No.4 Grocery item Naraina

Packaging:
Reliance fresh also have a packaging department ,the main function of this department is the
packaging, means convert the bulk material into the small unit and packed by its own name (private
labeling) like Reliance spice, Reliance sugar and Atta, Dry fruit, Ghee etc. This procedure help in
keeping price low or economic for its customer in the mean time the quality is also maintained. This

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type of product which is available in the store satisfied the need of the customers who are less brand
minded and want the quality product and price concession.

Order Making:
This is the process by which the product can be made available to its customer all the time. The
order making start in a retail store when the product in a store is at its re-order point. This also
divided in three segments like ordering of vegetable and fruit, milk and butter is done on daily basis
depending upon the daily requirement of the product in a store. The ordering of other item is done
when they reached at a particular level called re- order point; usually the ordering in each store is
done on daily basis.

Retail Integration and Information sharing:

The order which is made by the retail store is usually done by the use of information technology.
The order is indent in the computer or in the system by using a particular format.

Supply Chain of Reliance Fresh:

Reliance Fresh is the retail out let which offer quality fruit and vegetable along with the other
grocery item to their customer at very economic price in pleasant environment. There are around
seventy stores including all part of Delhi. To provide the right product, at right place on right time to
its customer is at most important in this competitive market, to fulfill this requirement supply chain
of an organization plays a vital role. In this aspect supply chain of Reliance Fresh is very much
effective. The supply chain infrastructure of Reliance Fresh is owned by the company: The supply
chain of Reliance Fresh is also help in reducing the lead time so that the stock out can be tackle in
advance so that the customer can get the product on time or in minimum time

Supply chain design of Reliance Fresh:

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 Warehouse1
Retail 1
Farmers Mandi
Warehouse2
Customer
Retail 2

Manufacturer Distributor Warehouse3

Retail 3
Warehouse4

Delivery and lead time

In the Reliance Fresh stores supply chain the lead time is of two day, the store in charge indent the
order in the system which is centralized. All the order from different stores is collected at the central
store or in Head Office, which is situated in the Connaught Place; from there the information is
passed to different warehouse so that the particular product can be made available to the customer on
time.
The delivery pattern to the store from the different warehouse to each store is similar, all the stores
get the delivery of goods two times in a day, these are the items which are ordered or indent two
days back.,

Delivery of Vegetable and fruits:

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These are the items which are perishable in nature. The supply of these item is made on daily basis
each store received the fruits and vegetable according to their consumption. The Supply of these
items, including the dairy product, is made two times in a day one is around 7.00 a.m. and second
delivery is around 9p.m.

Delivery of Staple Item:

The delivery of Atta, Sugar, and Dal etc is done two or once in a week according to the need of the
store but minimum of two to three days are required for receiving a product after making or indent is
made.

Store timing and staff in a store:

The Reliance Fresh store opens at 5 a.m. in the morning for the staff. At this time the staff receives
the goods from the head office and arranges it on the shelf. The store remains open for public from
8.a.m. to 9 p.m. but for working staff its closes at 11p.m. in the night. There are two shifts of the
workers who worked in the store. The no. of people employed in a store is around 22.

To the question, ” number of visit to a particular store”, the

response is as follow:

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Number of visit
Type of Reliance
Response Fresh
Daily 3 Figure-8:

Weekly 6
Fortnightl
3
y
monthly 1

Rarely 7

No. of Visit
12

10
8
8
nt
onde
Resp

6 5

4 3

2 2
2

0
Daily Weekly Fortnightly Monthly Rarely
Frequency

Inference:
I did the survey to know the visiting pattern of the customer in Reliance fresh.
This survey was done with the help of the questionnaire prepared in advance.
From the data or feedback we got, a graph was constructed to compare the
visiting patterns of the customers to the particular retail store. From the graph
we find that the customer visiting to retail outlet is still not as per the
expectation, more number of customers usually visit daily to the near by local

14
store for their daily need of grocery item, the frequency of their visit to other
retail outlet is weekly and fortnightly as per their convenience.

To the question”, from the service variables, how you

Gauge the following:” I get the following response:
Response from the customer for selected variables
Parameter Reliance
fresh
BE APE ME
Quality of
6 10 4
products
Price of
5 10 5
products
Freshness 1
7 1
of product 2
Convenienc
1
e of 5 3
2
location
Availability
5 10 5
of product

Variety of 1
7 2
product 1

Behaviour 1
5 3
of staff 2
Ambiance
1
with in 8 2
0
store
Billing
5 12 3
system

Timing of 1
5 2
store 3
Customer 1
6 4
Satisfaction 0

15
Note:
BE: Below Expectation
APE: As per Expectation
ME: More than Expectation

12

10

Quality of Products in the

Selected Outlet
4

0
BE APE ME

Inference:
The quality is the major parameter among the service parameter. This plays a
important role in the customer satisfaction. In this comparative study the
quality of the products belongs to different retail outlet is compare with the help
of the questionnaire, this comparison of quality is done by using the three step
scale i.e. below expectation to more than expectation.
The quality here includes the both branded as well as the owned packed
products. The response we got is analyzed and a comparative graph is having
branded as well as local good quality products. At Reliance Fresh the quality is
as per expectation and few customers find it above expectation.

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 Reliance Fresh
11

10

Price of the Products

8

5
Count

4
not as per expectati as per expectation above expectation

price

Inference:
From This comparative chart we find that the pricing is also a important
parameter of customer perception and satisfaction besides the quality and
availability of the product.
Customers are comfortable with pricing of reliance fresh.

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 14

12

10

Freshness of the Fruits 8

and Vegetables: 6

Count 2

0
below expectation as per expectation above expectation

freshness

Inference:
The freshness of the fruits and vegetable at Reliance fresh is below expectation .

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 14

12

10

Convenience of 6

Location
4

2
Count
0
below expectation as per expectation above expectation

convenience

Inference:
In today busy life everyone is in hurry, today the customer has very little time
to shop. If the customer has some time he/she expect it to spend it with the
family. So the convenience of the location is also very important besides the
other factors. Like Quality, freshness, price etc. today the customer want that
the shop of the grocery item is better to be in nearby place so that the time can
be saved.

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 11

10

Availability Of 8

Product in the Retail

Store 7

Count 5

4
belowexpectation as per expectiopn above expectation

availability

Inference:
Besides the other factor like Quality, price, Freshness, location the main factor
which plays a important role in satisfying the customer or to change the
perception of the customer is the Availability of that product in the store, if
product is not available in sufficient quantity than all other things are useless.
So the products should be available on time, in sufficient quantity and variety,
which is only possible if the supply chain, is effective and integrated. Here
supply chain plays a vital role.
Reliance and Local store have the availability of product as per the expectation,
means more than 50% customer said this.

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 12

10

Variety of Products in 6

a Retail Store
4

2
Count

0
b e lo w e x p e ac st a pt ioe rn e x p ea cb t oa vt ioe ne x p e c t a t io n

v a r ie t y

Inference:
Variety of the products of a product in retail store also one of the factor to fulfill
the need of the customer. Variety of the products is also an important aspect of
customer satisfaction. Usually this factor is taken care in the specialty store but
it can be used to gain the competitive advantage over the other and to attract
more and more customer.

To the Question”, providing carry bags”.

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Response to carry bag provision
Type of Reliance
Response Fresh
Always 10

Rarely 4
When
6
required

Providing carry bags

16
14
12
10
8
6
4
2
0
Always Rarely When required

Inference:
Provision for the carry bags is required at a retail store because it is very
difficult to carry own bag, because today it is very uncertain when and where to
visit a retail store.
It is also old fashion to carry own bags for shopping. Provision for the carry bags
plays two roles for the company first it give more value to its customer by
increase in the convenience in carrying goods form the store, second it helps in
promotion of the company and it is economic also for the company.

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To the Question”, Promotional scheme’, the response is as
follow:
Response to the promotional scheme
Type of Reliance
Response Fresh
Sometim 10
es
Frequentl 6
y
Rarely 4

Promotional Schemes

18
Response

16
14
12
10
8
6
4
2
0
Sometimes Frequently Rarely

Inference:
Promotional scheme is to attract the more and more customer to the retail
store, it helps in conversion of the non buyer into buyer. The promotional
schemes usually play a vital role in increasing the foot fall in a retail store.

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Question,” Day of visit” the following response:
Response to day of visit
Type of Reliance
Response Fresh
Any 4
particular
day
Weekends 6

Not fixed 10

Days of Visit

14
Response

12
10
8
6
4
2
0
Any particular day Weekends Not fixed

Inference:
In our comparative study we also try to find out the visiting pattern of the
customer to these retail outlets, like are they visiting to these retail outlets daily
,weekly or it is not fixed. They visit these stores only for the new experience.

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THE SHOPPERS STOP

Shoppers stop is a department store format. Shoppers Stop Limited was founded by K Raheja Corp
in 1991 laying the foundation of the modern retail industry in India. It started operations with the
first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department
stores and online presence.
From its inception, Shoppers Stop has progressed to become a premier Fashion & Lifestyle
destination for the family. Today, Shoppers Stop is known for its superior quality products, services
and above all, for providing a complete shopping experience.
With an immense amount of expertise and credibility, Shoppers Stop has become the highest
benchmark for the Indian retail industry. In fact, the company’s continuing expansion plans aim to
help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does
today. Pioneers in organized retailing in India, Shoppers' Stop Ltd., was started in 1991 with a retail
area of 4500 sq.ft. It now holds around 1,95,000 sq.ft. of retail space from Shoppers' Stop alone. It

25
also has chain of stores in other formats, with Cross words and Shoppersstop.Com under its wings.
Shoppers' Stop is a specialty chain of garment and accessory retail stores with outlets in Mumbai,
Bangalore, Hyderabad, Jaipur, and New Delhi.

Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain
of department stores under the name “Shoppers’ Stop” in India. Currently Shoppers Stop has 33
stores across the country. Shoppers Stop has also begun operating a number of speciality stores,
namely Crossword Bookstores, Mothercare, Brio, Desi Café, Arcelia.

Shoppers Stop retails a range of branded apparel and private label under the following categories of
apparel, footwear, fashion jewellery, leather products, accessories and home products. These are
complemented by cafe, food, entertainment, personal care and various beauty related services.

Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website
retails all the products available at Shoppers Stop stores, including apparel, cosmetics and
accessories.

Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe,
Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magppie, Nike, Reebok, LEGO, and Mattel. Shoppers
Stop retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini,
Elliza Donatein, Acropolis etc. The company also licensees for Austin Reed (London), an
international brand, who’s men's and women's outerwear are retailed in India exclusively through the
chain. In October 2009, Shoppers Stop has bought the license for merchandising Zoozoo the brand
mascot for Vodafone India.

Shoppers Stop connects with the youth audience through adopting the communication routes
relevant to youth, up the fashion quotient through merchandising, and create ambience that
connects with the mindset. The brand campaign addresses environment-related issues in a
youthful, tongue-in-cheek manner. Shoppers Stop as a brand active on social media marketing
platforms with Facebook and Twitter to connect with this audience.

Customers

Shoppers’ Stop’s achievements are a result of their customer focus. The new Indian consumer, one
who has higher aspirations and is more empowered, courtesy India's economic boom and new

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market scenario. A consumer who is also more discerning and demanding of quality products and
quality service.

They offer their customers a range of the finest national and international brands, and a quality and
price assurance that is backed by their guarantee, stamped on every bill: "We are responsible for the
goods we sell.

Store philosophy

"We don't sell, we help you buy."

And if, while you browse, something catches your fancy, take a moment at one of their many cash
counters and they will deal with it in a jiffy. After all, you are on vacation. They have world class in-
store facilities that include impeccably maintained trial rooms. They also provide special care like
wheel chairs. Their car parking, central air conditioning and power back-ups, gift-wrapping service
and overnight alteration service.

Exchange and Redemption Policy

They accept exchanges within 14 days from the date of purchase. The customer must furnish the
Invoice. The merchandise must be returned undamaged and in saleable condition. Items, which are
made to order or items such as Cosmetics, Lingerie, Undergarments, Jewellery, or Watches cannot
be exchanged due to hygiene reasons.

Consumer behavior model

Consumer behavior is the study of how people buy, what they buy, when they buy and why they
buy. It attempts to understand the buyer decision making process, both individually and in groups. It
studies characteristics of individual consumers such as demographics, psychographics, and
behavioral variables in an attempt to understand people's wants.

Stages of consumer buying process

Consumer buying decision process includes six stages. They are:

27
  Problem Recognition
 Information Search
 Evaluation of alternatives
 Purchase Decision
 Purchase
 Post-Purchase Evaluation

Problem recognition
Difference between the desired state and the actual condition.
Example:
By seeing a commercial for a new pair of shoes, stimulates your recognition that you need a new
pair of shoes.
Hunger stimulates your need to eat.

Information search
Internal Search: Memory
External Search: Friends and Relatives
A successful information search leaves a buyer with possible alternatives.
Example:
Hungry, want to go out and eat, evoked set is
 Chinese food
 Indian food

Evaluation of alternatives
Need to establish criteria for evaluation, features the buyer wants or does not want.
Rank/weight alternatives.
Example:
If you want to eat something spicy, then Indian food gets the highest rank etc…

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Purchase decision
Choose buying alternative, includes product, package, store, method of purchase etc.
Purchase May differ from decision, time lapse between purchase decision and the actual purchase,
product availability.

Post purchase evaluation

It is the outcome Satisfaction or Dissatisfaction. This can be reduced by warranties, after sales
communication etc.
Example:
After eating an Indian meal, you may think that really you wanted a Chinese meal instead.

Types of consumer behavior

There are four types of consumer buying behavior, they are :

Routine Response/Programmed Behavior

Buying low involvement, frequently purchased, low cost items.
Examples : Soft drinks, snack foods, milk etc.

Limited Decision Making

Buying product occasionally.That is when you need to obtain information about unfamiliar brand in
a familiar product category.
Example: Clothes--know product class but not the brand.

Extensive Decision Making

Complex high involvement, unfamiliar, expensive and infrequently bought products. Spend a lot of
time seeking information and deciding. High degree of risk.
Example: Cars, homes, computers, education.

Impulse buying
No conscious planning.
The purchase of the same product does not always elicit the same Buying Behavior. Product can
shift from one category to the next.
For example: Going out for dinner for one person may be extensive decision making (for someone
that does not go out often at all), but limited decision making for someone else. The reason for the
dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also
determine the extent of the decision making.

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Response to how much time would you spend in one trip of shopping while
shopping for apparel, footwear, accessories

0-0.5hr
1-2 hr
2-3 hr
more than3hr

Response to Whom do you generally go with for shopping.

Alone
family
withafriend
inagroup

Response for outlet ranked on the basis of preference.

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 35

30
25 shoppers stop
pantaloons
20
westside
15
globus
10 lifestyle
5
0

Response to how much a person spends on a single visit to shoppers stop.

200-500
501-2000
2001-5000
5000+

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Response to shoppers stop does not have all my favorite brands.

stronglydisagree
somewhat disagree
neutral
somewhat agree
stronglyagree

Response to I never get my size at Shoppers Stop.

stronglydisagree
somewhat disagree
neutral
somewhat agree
stronglyagree

Response to shoppers stop is not helpful in return and exchanges.

stronglydiagree
somewhat disagree
neutral
somewhat agree
stronglyagree

Response to shoppers stop is a sophisticated outlet.

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 stronglydisagree
somewhat disagree
neutral
somewhat agree
stronglyagree

Responses to Employees in Shoppers’ Stop do not give prompt service to

customers.

stronglydisagree
somewhat disagree
neutral
somewhat agree
stronglyagree

ANNEXURE

For Reliance fresh

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 QUESTIONNAIRE

1. Number of visit: Daily  Monthly 

Weekly  Rarely 
Fortnightly 

2. Whether visited to other retail outlet:

Daily Weekly Rarely

  

3. From the Service Variables, How you Gauge the following:

Below As per More-than

Expectation Expectation Expectation
a. Quality of product   
b. Price of product   
c. Freshness of fruit & veg.   
d. Convenience of location   
e. Availability of product   
f. Variety of product available   
g. Behaviour of Staff:   
h. Ambience with in the store   
i. Billing System   
j. Timing of Store   
K. Brand Image of Retail   
l. customer Satisfaction   

4. Providing Carry Bags:

Always Rarely when required

34
   

5. Promotional Schemes:
a. Sometimes 
b. Frequently 
c. Rarely 

6. Time Of Visit:
a. Morning 
b. Afternoon 
c. Evening 

7. Days of visit:

a. Any Particular day 

b. Weekend s 
c. Not Fixed 
Place Gender:

Age:
“Thank you very much for your valuable time”

For Shoppers stop

35
 Questionnaire

1. Please give information about yourself:

Name
Age
Sex Male Female

2. Please choose your education level from the list below

3. Please choose your occupation from the List below:

4. How much time would you spend in one trip of shopping while shopping for apparel,
footwear, accessories etc?

0 to 0.5 hrs
0.5 to 1 hr
1 to 2 hrs
2 to 3 hrs
more than 3 hrs

5. Whom do you generally go with for shopping on such a trip?

Alone
Family
With a friend
In a group

6. Please rank the following outlets between 1 to 5 based on your preference. (1 being the most
preferred and 5 being the least)

36
 STORE RANK
Lifestyle

Globus

Pantaloons

Shoppers Stop

Westside

7. Have you been to Shoppers Stop?

Yes No

8. Are you or anybody in your immediate family a First Citizen Card holder in Shoppers Stop?

Yes No

9. On an average how much do you spend on a single visit to Shoppers Stop?

Rs 200 - 500
Rs 501 - 2000
Rs 2001 - Rs 5000
Rs 5000+

10. Please choose the option which is the closest to what you feel.

Strongly Somewhat Neutral Somewhat Strongly

Disagree Disagree Agree Agree

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Shoppers Stop does not have all
my favorite brands
I never get my size at Shoppers
Stop.
Shoppers’ Stop is not helpful
with returns and exchanges
Shoppers’ Stop is a
sophisticated outlet
Employees in Shoppers’ Stop
do not give prompt service to
customers.

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39