BRACTs

Vishwakarma Institute of Management

(An ISO 9001-2008 Certified Institute)
(Approved by AICTE-New Delhi, Recognized by Government of Maharashtra and Permanently Affiliated to University of Pune)
MBA Programme Rated as MH-A by CRISIL
Recipient of the 19
th
Dewang Mehta B School Award for the Best B School with Academic Inputs in Marketing
Rewarded as Second Best Professional Institute in Urban Area Category by the University of Pune
A
Project Report
On
Store location analysis of Reliance Fresh
For the subject,
Business Research Method(Course Code: 104)
Submitted by
Nilesh Sanmukh Sorde
MBA I, Div B
Roll No 13012055
Guided by,
Prof. Meenal Dhotre








Page 2


INDEX
Sr. No. Topic Page No.
1 Executive Summary 3
2 Literature Review

5
3 Definitions of the Concepts

11
4 Objective of the study

12
5 Scope of the Study

13
6 Methodology and Research Design

14
7 Data Collection

17
8 Data Analysis

19
9 Findings

29
10

Limitations of the study

30

11 Conclusion

31
12

BIBLIOGRAPHY

32










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Executive Summary

Retail and service centers are often the final stocking points in a physical distribution network.
They include facilities like departmental stores, supermarkets, branch banks, medical centers etc.
Location analysis for these points is highly sensitive to revenue and accessibility factors rather
than cost factors.
The Location of the Retail Store plays a very important Role in its Success. It is an integral n
crucial part of the Retail Strategy as the location of the Store conveys a lot about its image. It
also influences the merchandising mix and layout of the store. As once Set-up, a retailer can
change its merchandise mix, adjust prices, improve communication/ services but its very
difficult to change the location. So a lot of Planning, Resources, and Research go in before
Deciding upon some Location, Be it about penetrating into a new city, new customer segment or
a new location within the city but a lot of thought goes into every single thing. Where you
choose to locate your retail business will have a major impact on everything your shop does. The
difference between selecting the wrong location and the right site could be the difference
between business failure and success. Before choosing a retail store location, defining the
business, both for now and in the future is important.
And thinking about the issues like:
Who are your target customers?
How do you want your store?
Determining the business area, store location and the store size.
Without the answers to these basic questions, it will be hard to find the perfect location for
generating the maximum amount of profit for the retail store.

This research does the store location analysis of Reliance Fresh. Reliance Fresh is the
convenience Store format and a part of the retail business of Reliance Industries of India. These
stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products.


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Reliance Fresh is gaining fast popularity among the masses of India and hence it is a good
subject for store analysis. This research tries to study the factors considered for selecting a
particular location for Reliance Fresh.






















Page 5

Literature Review
Store:
Meaning:
Store keeping is a service function which deals with the physical storage of goods under
the custodianship of a person called Store keeper or Stock controller.
Store is defined as the custodian of all goods that are received in the company until they
are consumed or sold and naturally it assumes the responsibility of receiving, storage,
preservation, issue and accounting functions.

Functions of Stores:
1. Requisitioning from the purchase department an economical quantity of material
for delivery at the most appropriate time.
2. Exercising control on quantity of materials received.
3. Storing and protecting materials against hazardous conditions, weather,
deterioration and pilferage.
4. Issue of materials against properly authorized material requisitions.
5. Maintaining exact records of all receipts, issues and balances to facilitate ordering
of required materials.
6. Maintaining adequate records of receipts and expenditures.
7. Keeping inventory investment within desired limits.

Retail Store:
Retail is the sale of something in general.
Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers
are part of an integrated system called the supply chain. A retailer purchases goods or products in
large quantities from manufacturers directly or through a wholesale, and then sells smaller
quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores
or markets, door-to-door or by delivery. Retailing includes subordinated services, such as


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delivery. The term "retailer" is also applied where a service provider services the needs of a large
number of individuals, such as for the public. Shops may be on residential streets, streets with
few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes
a shopping street has a partial or full roof to protect customers from precipitation. Online
retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and
mail order, are forms of non-shop retailing.
Types of retail outlets:
A marketplace is a location where goods and services are exchanged. The traditional market
square is a city square where traders set up stalls and buyers browse the stores. This kind of
market is very old, and countless such markets are still in operation around the whole world.
In some parts of the world, the retail business is still dominated by small family-run stores, but
this market is increasingly being taken over by large retail chains.
Types by products
Retail is usually classified by type of products as follows:
Food products typically require cold storage facilities.
Hard goods or durable goods ("hardline retailers") appliances, electronics, furniture,
sporting goods, etc. Goods that do not quickly wear out and provide utility over time.
Soft goods or consumables clothing, apparel, and other fabrics. Goods that are
consumed after one use or have a limited period (typically under three years) in which
you may use them.

Sales techniques
Behind the scenes at retail, there is another factor at work. Corporations and independent store
owners alike are always trying to get the edge on their competitors. One way to do this is to hire
a merchandising solutions company to design custom store displays that will attract more


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customers in a certain demographic. The nation's largest retailers spend millions every year on
in-store marketing programs that correspond to seasonal and promotional changes. As products
change, so will a retail landscape. Retailers can also use facing techniques to create the look of a
perfectly stocked store, even when it is not.
A destination store is one that customers will initiate a trip specifically to visit, sometimes over a
large area. These stores are often used to "anchor" a shopping mall or plaza, generating foot
traffic, which is capitalized upon by smaller retailers.
Customer service
Customer service is the "sum of acts and elements that allow consumers to receive what they
need or desire from your retail establishment." It is important for a sales associate to greet the
customer and make himself available to help the customer find whatever he needs. When a
customer enters the store, it is important that the sales associate does everything in his power to
make the customer feel welcomed, important, and make sure he leaves the store satisfied. Giving
the customer full, undivided attention and helping him find what he is looking for will contribute
to the customer's satisfaction. For retail store owners, it is extremely important to train yourself
and your staff to provide excellent customer service skills. By providing excellent customer
service, you build a good relationship with the customer and eventually will attract more new
customers and turn them into regular customers. Looking at long term perspectives, excellent
customer skills give your retail business a good ongoing reputation and competitive advantage.

Store Location:
Meaning:
Store location is the choosing, fixing or selecting site for the store building in the organization.
Location also means proper placing of materials inside a store so that they can be easily
identified, located and issued.


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Store location is the process of selecting the appropriate site for the store building in the
organization and deciding how materials are to be place inside the store so as to provide efficient
and prompt service to the user department.

Principles of Good Store Location:

1. Location of a store building has a bearing on the cost of transportation. So the store
location should be such that unnecessary material handling is avoided.
2. Location of the store should be well approachable by rail/road transport.
3. Location of the store should result in efficient service to the user department.
4. Materials should be stored in locations which minimize fire hazards.
5. For security reasons, stove room should be away from the main gate of the premises.
6. Store location should be flexible considering future expansion.
7. Store location should be such that it results in overall integration of factors.

Store location analysis:
Definition:
Store location analysis is defined as an evaluation of the density of demand and supply
within each market with the goal of identifying the best retail site(s).

It is a process of looking at all aspects like consumer base, accessibility, visibility,
location cost, proximity with competitors before selecting a location for setup of a store.






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Reliance Fresh:

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 250 billion in the next 4 years in their retail division. The company already has 453
Reliance Fresh outlets across the country. These stores sell fresh fruits and vegetables, staples,
groceries, fresh juice, bars and dairy products.
A typical Reliance Fresh store is approximately 30004000 square feet and caters to a catchment
area of 23 km
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 3, offering fresh vegetables, fruits, flowers and grocery items. It plans
to touch a figure of 40 stores in the twin cities in the coming days. Reliance Fresh is the retail
chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has
entered into this segment by opening new retail stores at Hyderabad on 3 November 2006.
Reliance plans to invest 25000 crores in the next 4 years in their retail division and plans to begin


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retail stores in 784 cities across India. Reliance Fresh recently (24th Jan, 2007) opened 12
"Fresh" outlets in Chennai increasing its total store count to 40. Reliance is still testing its retail
concepts by controlled entry beginning in the southern states. The company is planning on
opening up 6 stores in Bangalore by the middle of February (2006) and an additional 7 stores by
the end of February. The stores size would vary from 1,500 sq ft to 3,000 sq ft, which will stock
fresh fruits and vegetables, staples, FMCG products and dairy products. Each store is said to be
within a radius of 1-2 km of each other, in relation to the concept of a neighbour store. However,
this is only the entry roll-out that the company has planned. Bangalore is said to have 40 stores in
all by the end of the year.


















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Definitions of the Concepts

1. Store:

Store is defined as the custodian of all goods that are received in the company until they
are consumed or sold and naturally it assumes the responsibility of receiving, storage,
preservation, issue and accounting functions.

2. Retail Store:
A Retailer or a Retail Store is a business enterprise which sells primarily to the ultimate
consumers for non-business use.
3. Retailing :
Retailing is defined as a set of business activities that adds value to the products and
services sold to the final consumers for their personal, family or household use.

4. Store Location:
Store location is the process of selecting the appropriate site for the store building in the
organization and deciding how materials are to be place inside the store so as to provide
efficient and prompt service to the user department.

5. Store Location analysis:
Store location analysis is defined as an evaluation of the density of demand and supply within
each market with the goal of identifying the best retail site(s).









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Objective of the study


To determine the factors influencing the selection of the location of the store (Reliance
Fresh).





















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Scope of the Study
The current store analysis of Reliance Fresh throws light on different aspects for
choosing a perfect store location. About the scope, it will be helpful researcher who
wants to do a store analysis of a retail outlet like Reliance Fresh.





















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Methodology and Research Design

Meaning:
Research Methodology is a set of various methods to be followed to find out various
informations regarding market strata of different products. Research Methodology is required in
every industry for acquiring knowledge of their products.

Area of study:
The study is exclusively done in the area of marketing. It is a process requiring care,
sophistication, experience, business judgment, and imagination for which there can be no
mechanical substitutes.
Sources of Data:

Primary Source
Secondary Source

Primary Source:
The primary data was collected by means of a survey. Questionnaires were prepared and
customers of the Reliance Fresh were approached to fill up the questionnaires. The questionnaire
contains 10 questions which reflect on the type and quality of services provided by the Big
bazaar to the customers. The response of the customer is recorded on a grade scale of strongly
disagree, disagree, uncertain, agree and strongly agree for each question. The filled up
information was later analyzed to obtain the required interpretation and the findings.
Secondary Source:
In order to have a proper understanding of the customer service of Reliance Fresh a depth study
was done from the various sources such as books, a lot of data is also collected from the official
websites of the Reliance Fresh and the articles from various search engines like Google, yahoo
search and answers.com.






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RESEARCH DESIGN:
The research design is exploratory till identification of customer services parameters. Later it
becomes descriptive when it comes to evaluating customer perception of customer service of the
Reliance Fresh.
Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the questions
who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a causal relationship,
where one variable affects another. In other words, descriptive research can be said to have a low
requirement for internal validity.
The description is used for frequencies, averages and other statistical calculations. Often the best
approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative
research often has the aim of description and researchers may follow-up with examinations of
why the observations exist and what the implications of the findings are.
RESEARCH SAMPLE:
SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take sample from the
universe to know about its characteristics.

Sampling Units: Customers of Reliance Fresh .
Sample Technique: Random Sampling.
Research Instrument: Structured Questionnaire.
SAMPLE SIZE:
The work is a case of Reliance Fresh one of the Retail Sector industry together representing great
per cent of the market share of Indian retail sector. The survey was conducted in the city of Pune
with 50 customers as respondent.
DATA COLLECTION TOOL:
Data is collected from various customers through personal interaction. Some other information is
collected through secondary data also. Data was collected through a structured questionnaire,
likert technique is used. Likert scale is simply a statement which the respondent is asked to


Page 16

evaluate according to any kind of subjective or objective criteria, generally the level of
agreement and disagreement is measured
Likert scaling is a bipolar scaling method, measuring either positive or negative response to a
statement.























Page 17

Data Collection



Questionnaire:

Q.1) How frequently do you visit Reliance Fresh?
Twice in a week Once in a week
During Special offers Whenever the need arises
Q.2) Do you think, this reliance fresh store is easily accessible to you?
Yes No
Q.3) Do you agree accessibility to store is a factor while going to any store?
Strongly Agree Agree
Disagree Strongly disagree
Q.4) Do you think, price of the product and services different according to location?
Yes No
Q.5) Do you find, price in other stores less than Reliance Fresh?
Yes No
Q.6) How is the quality of the products or services you get at Reliance Fresh compared to other nearby
stores?
Very Good Good Bad Very Bad
Q.7) Do you think, this area is appropriate location for Reliance Fresh?
Yes No
Q.8) According to you, what percentage of customer of Reliance Fresh live in this area?
More than 50% Less than 50%


Q.9) Does the merchandising mix at this Reliance Fresh attract you?


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Yes No


Q.10) Rate the following infrastructural factors?
a) Parking space

Good Average Bad

b) Signage

Good Average Bad

c) Restroom facilities

Good Average Bad

d) Interior of the store

Good Average Bad















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Data Analysis

Q.1) How frequently do you visit Reliance Fresh?

SCALE FREQUENCY PERCENTAGE
Twice in a week 7 14
Once in a week 18 36
During Special offers 15 30
Whenever the need arises 10 20
TOTAL 50 100





INTERPRETATION:
This is aimed at understanding how frequently customer visit shops & buy their product
or avail their services. The highest responses have been attributed to once a week
shopping. Such customer can be presumed to have high disposal income & may buy
more daily & fashion products. Whereas 30% of them visit during special offers, 20%
when need arises, 14% twice in a month.


14
36
30
20
0
5
10
15
20
25
30
35
40
Twice in a week Once in a week During Special
offers
Whenever the
need arises
PERCENTAGE
PERCENTAGE


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Q.2) Do you think, this reliance fresh store is easily accessible to you?

SCALE FREQUENCY PERCENTAGE
Yes 33 66
No 17 34
TOTAL 50 100





INTERPRETATION:
66% of the respondents say that this store is easily accessible to them while 34% say
that it is not easily accessible.




66%
34%
PERCENTAGE
Yes No


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Q.3) Do you agree accessibility to store is a factor while going to any store?















INTERPRETATION:
Most of the respondents (36%) agree that accessibility to store is a factor they consider
while going to any store.
32% strongly agree to this while 24% of the respondents disagree and a mere 8%
strongly disagree.
32%
36%
24%
8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Strongly Agree Agree Disagree Strongly disagree
PERCENTAGE
PERCENTAGE
SCALE

FREQUENCY

PERCENTAGE

Strongly Agree 16 32%
Agree 18 36%
Disagree 12 24%
Strongly disagree 4 8%
Total 50 100%


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Q.4) Do you think, price of the product and services different according to location?

SCALE FREQUENCY PERCENTAGE
Yes 33 66%
No 17 34%
Total 50 100%





INTERPRETATION:
A large amount of respondents (66%) believe that price of the products and services varies
according to location while 34% dont believe this.






66%
34%
PERCENTAGE
Yes No


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Q.5) Do you find, price in other stores less than Reliance Fresh?


SCALE FREQUENCY PERCENTAGE
Yes 12 24%
No 38 76%
Total 50 100%





INTERPRETATION:
A very less amount i.e. 24% of respondents believe that prices are less in other stores
while 76% disagree to this fact.





24%
76%
PERCENTAGE
Yes No


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Q.6) How is the quality of the products or services you get at Reliance Fresh compared to other
nearby stores?










INTERPRETATION:
40% of people find the quality good at reliance fresh, 32% find the quality very good on
the contrary 20% of people find the quality bad and a very low 8% find it very bad.



40%
32%
20%
8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Good Very Good Bad Very Bad
PERCENTAGE
SCALE

FREQUENCY

PERCENTAGE

Good 20 40%
Very Good 16 32%
Bad 10 20%
Very Bad 4 8%
Total 50 100%


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Q.7) Do you think, this area is appropriate location for Reliance Fresh?
SCALE FREQUENCY PERCENTAGE
Yes 42 84%
No 8 16%
Total 50 100%







INTERPRETATION:
A high percentage (84%) of people think that this area is appropriate for reliance fresh as
compared to 16% of people who dont think so.




84%
16%
PERCENTAGE
Yes No


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Q.8) According to you, what percentage of customer of Reliance Fresh live in this area?









INTERPRETATION:
60% of people believe that there are more than fifty per cent of customers live in this area while
40% believe that there are less than fifty per cent customers in this area.




60%
40%
PERCENTAGE
More than 50%
Less than 50%
SCALE FREQUENCY PERCENTAGE
More than 50% 30 60%
Less than 50% 20 40%
Total 50 100%


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Q.9) Does the merchandising mix at this Reliance Fresh attract you?

SCALE FREQUENCY PERCENTAGE
Yes 30 60%
No 20 40%
Total 50 100%




INTERPRETATION:
Merchandising mix at Reliance Fresh attracts 60% of customers as compared to 40%
who dont like it.





60%
40%
PERCENTAGE
Yes No


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Q.10) Rate the following infrastructural factors?
e) Parking space
f) Signage
g) Restroom facilities
h) Interior of the store

SCALE PARKING SPACE SIGNAGE RESTROOM
FACILITIES
INTERIOR
OF THE
STORE
Good 22 (44%) 20 (40%) 18 (36%) 21 (42%)
Average 24 (48%) 22 (44%) 24 (48%) 23 (46%)
Bad 4 (8%) 8 (16%) 8 (16%) 6 (12%)
Total 50 (100%) 50 (100%) 50 (100%) 50 (100%)



INTERPRETATION:
About parking space 48% find it average, 44% good and only 8% find it bad.
40% find signage good, 44% find it average and 16% bad.
36% find restroom facilities good, 48% find it average and 16% find it bad.
Interior of the sore is good for 42%, average for 46% and bad for 12% of people.


44%
48%
8%
40%
44%
16%
36%
48%
16%
42%
46%
12%
0%
10%
20%
30%
40%
50%
60%
Good Average Bad
PARKING SPACE SIGNAGE RESTROOM FACILITIES INTERIOR OF THE STORE


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Findings


It is found from this research study that the most influencing factors for the selection of
the store are consumer base, visibility to store and location cost.
























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Limitations of the study

The store analysis of only Reliance Fresh situated at sahakarnagar is done.
Some respondents did not respond properly
Less availability of time.





































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Conclusion


It is concluded from the above store analysis that before choosing a location for a store a
research on the consumer base, visibility, nearness to competitors, accessibility to store for
the consumers should be taken into account.

Reliance Fresh can attract more customers by different variety and assortments.

Working environment is good and also the various facilities is provided.






















Page 32


BIBLIOGRAPHY

References:

1. Philip Kotler, marketing management
2. Research Methodology, By C.R.Kothari.


Internet web sites:

www.google.co.in

www.wikipedia.com

www.scribd.com