Project Report On RAZ
Project Report On RAZ
An Empirical study”
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Content:
1) Abstract
2) Introduction
3) Advent of Reliance Autozone
4) Literature Review
5) Objective and purpose of the study
6) Significance of study
7) Research methodology
8) Finding and analysis
9) Discussion and conclusion
10) Recommendation
11) Limitation
12) Reference
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ABSTRACT
The number of vehicles in India is growing, and so is the demand for their services, spare parts
and accessories. However, there are not many reliable options in terms of retailers or service
providers for automobiles. Customer have either an organized service station of a particular
manufacturer (who may not provide all services or additional accessories), or an unorganized
workshop owner (you may not be willing to rely on his product). AutoZone seeks to break the
jinx, as it has not only brought experts on board for better services, but also offers genuine
products that a customer can rely on.
This paper provides the information about Reliance Auto Zone, its concept and realities and it
also depicts the picture about the acceptance and survival of Reliance Auto Zone in today’s
dynamic environment and also shows respondents mindset towards such type of AutoZone.
The research is an attempt to examine the Awareness of the respondents toward this new
concept of sales and servicing and is they ready to accept this new format of sales and servicing.
The importance of the paper lies in the fact that such type of concept would survive in Indian
market or not, As we know that in this turbulent environment the respondent do not have
sufficient time for taking care of their vehicle, therefore customer preferences are changing and
they are looking for a concept that provides each and everything under one roof. This will
change the respondent preferences and their attitude is shown in our research paper.
The paper also highlights the future research directions in this area for Indian consumer’s
preference and attitude regarding the AutoZone.
Key Words: Reliance Auto Zone, Consumer, Automobiles, Organized Service, Acceptance
Information, Preferences & attitude
INTRODUCTION:
Reliance AutoZone, a subsidiary of Mukesh Ambani-led Reliance Industries Limited, after the
successful launch of 10 Reliance retail formats, Reliance has now entered the auto sector and
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launched its first automotive specialty store "Reliance AutoZone” at Ambience Mall, Jamnagar
Gujarat, adjacent to the national capital.
Speaking at the launch, Arun Dey, chief executive, Reliance Autozone, said, “Indian auto
accessory retail market is quite fragmented and unorganized and is concentrated mainly in the
metros which feed the nearby markets.
We at Reliance Autozone have ambitious plans to capitalize upon this business opportunity.”
About Reliance:
Reliance Industries Limited:
Reliance Industries Limited (RIL) is India's largest private sector company on all major financial
parameters with turnover of Rs1,18,354 crore (US$ 27.23 billion), cash profit of Rs17, 678 crore
(US$ 4.07 billion), net profit of Rs11,943 crore (US$ 2.75 billion) and net worth of Rs63, 967
crore (US$ 14.72 billion) as of March 31, 2007.RILis the first and only private sector company
from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks
amongst the world's Top 200 companies in terms of profits. RIL is amongst the 25 fastest
climbers ranked by Fortune. RIL also features in the Forbes Global list of world's 400 best big
companies and in FT Global 500 list of world's largest companies.
Reliance AutoZone:
AutoZone in Jamnagar Spread over an area of 15000 sq ft this unique facility is located adjacent
to Reliance Mart, the hypermarket. Reliance AutoZone offers 4 wheeler and 2 wheeler services
under one roof.
The product offerings at Reliance AutoZone include a comprehensive range of car and bike
accessories, electric scooters, tyres, batteries and many more useful accessories.
Mr Arun Dey, Chief Executive of Reliance AutoZone, said, “This new format provides a one-
stop solution to automobile owners who face inconvenience by having to crisscross between
various touch points for accessories, batteries, tyres and lubes etc. at different locations at
different times.”
For instance, as of now, RELIANCE AUTO ZONE does not offer major services like engine
repairs, denting and painting, or re-modeling. The main reason is that these services are very
space consuming and should be located in a favorable area. Most of the company-owned service
centers are located in far-off places, away from the city proper. This makes it inconvenient for
the customer to take the car there for all types of repairs.
Each staff member at AutoZone is well qualified for the job assigned. Automobile engineers, for
instance, have years of industry experience, and they know their capabilities before assigning
them any job.
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Reliance AutoZone shall focus on service of multi make passenger cars & 2 Wheelers under one
roof, Retail of 2 wheelers & Pre owned Cars, Retail & installation of Accessories, Tyres &
Batteries.
In other words it is a comprehensive solution to all vehicle owners. Being a part of Reliance
Retail, Reliance AutoZone would leverage on its Prime location, Pan India Presence, Supply
Chain Strength, CRM & Strong Brand equity.
Reliance AutoZone shall offer Innovative Service Packages at convenient locations for all makes
of 4 wheelers & 2 wheelers.
Apart from regular maintenance & running repairs it also provides unique value added services
like car care, car detailing and many other services not catered by usual automotive workshops.
At Reliance AutoZone, customers can get the vehicles serviced quickly at reasonable prices.
“Reliance AutoZone will give the customers unmatched Value Proposition. The vision of
reliance auto zone is to create customer delight by delivering world class automotive products &
services with wide choice at best prices”. Arun Dey, Chief Executive, Reliance Autozone.
The world class systems installed at Reliance AutoZone. It includes state of the art facility
including high performance equipments, smokeless exhaust system, water treatment with recycle
facility and well trained manpower.
Reliance AutoZone is also one of the few auto retailers investing in SAP R/3 for tracking of
customer’s vehicle ownership life cycle and Integrated CRM system for scheduling of customer
service activities. Apart from vehicle service, in future Reliance AutoZone shall also enter into
vehicle retailing arena. It plans to enter the 2-wheeler retail space by offering multi brand choice
under one roof.
In the pre-owned car space Reliance AutoZone shall attempt to provide wide choice of multi
make & multi model pre owned cars at various price points.
Reliance AutoZone plans to have a pan India presence by opening 400 such stores in the next
three-four years. In India, an approx of 104 million cars are sold. This figure is expected to touch
2.2 million by 2010. However, Reliance has not tied up with any of the auto companies.
With all these initiatives Reliance AutoZone is all set to create new industry benchmarks in the
automotive retail space and the biggest beneficiary shall be the end customer after all he remains
“The King”.
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ADVENT OF
The vision of RELIANCE AUTOZONE is to create customer delight by delivering world class
automotive products & services with wide choice at best prices.
“Reliance Autozone is amongst early entrants in India who have brought structured auto retail
matching global standards. This move is likely to change the Auto retail scenario in India as a
significant share of the market share would be captured by organized players,” added Dey.
Apart from regular maintenance & running repairs it also provides unique value added services
like car care, car detailing and many other services not catered by usual automotive workshops.
At Reliance AutoZone, customers can get the vehicles serviced quickly at reasonable prices. The
store also offers fitment facility, warranty and service backup to its customers.
This new format will definitely change the mindset of Indian consumer because this new format
provides a one-stop solution to automobile owners who face inconvenience in servicing.
Reliance Autozone is one of the few auto retailers which have invested heavily in SAP R/3 for
tracking of customer’s vehicle ownership life cycle and Integrated CRM system for scheduling
customer service and other particulars.
Apart from vehicle service, in future Reliance Autozone shall also enter into vehicle retailing
arena. It plans to enter the 2-wheeler retail space by offering multi brand choice under one roof.
We are not inclined to any make or model," says Arun Dey, chief executive of Reliance
AutoZone. "Everyone can come in. Today, most of the outlets are so crowded and use spurious
parts…people have no choice", he adds
Reliance AutoZone plans to have a pan India presence by opening 400 such stores in the next
three-four years. In India, an approx of 104 million cars are sold. This figure is expected to touch
2.2 million by 2010.
LITERATURE REVIEW:
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Automobile Sector is one of the World’s fastest growing market as a result many big players like
Reliance, Castrol etc. are entering with the chain of specialty stores that will sell auto
accessories, and service cars in a bid to get a share of the wallets of car owners. Today, most of
the outlets are so crowded and use spurious parts…people have no choice. That is why reliance is
coming up with “Reliance Autozone which will provide the customers unmatched Value
Proposition & deliver world class automotive products & services with wide choice at best prices
there by creating customer delight. Reliance Autozone will focus on service of multi make
The key difference between Traditional service centre and Reliance Auto Zone is that in
traditional service centre they only provide service and you have to buy spare parts from
outside while in Reliance Auto Zone everything is available under one roof.
Another player that has entered into automobile sector with a similar concept as that of Reliance
Autozone is Castrol. They have recently launched a specialty store named Castrol Bike Zone that
is especially for bikes, it provides personalized attention to every individual customer and
solutions are tailor made to suit their needs. There is absolute transparency in transaction. No
work is done without prior consumer approval and every cost element is explained in detail.
Even the replaced parts are returned to the consumer, post service. Each Bike Zone has an expert
team of mechanics specially trained by the Castrol training team. The mechanics are sufficiently
trained to handle any brand of two wheeler. Customer convenience is given importance as they
can relax at the air-conditioned clubhouse while their vehicles are being serviced. They can
browse through reading material or watch their bike being serviced if they wish to.
There has been a change in consumer perception towards service centre because of these
specialty stores that are providing service and other accessories under one roof , earlier consumer
was not so much concerned with the type of servicing being provided or valid spare parts being
used or not because there was not much transparency in the working. But now the consumer has
become more aware about the servicing being provided as there is transparency and also
consumer are being given personalized attention.
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OBJECTIVES & PURPOSE OF STUDY:
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To measure the acceptance level of consumers about RELIANCE AUTOZONE.
To know and analyze the future and growth of AUTOZONE in Indian Context.
To know the various features in service station which customers consider the most while
taking decision of servicing of their vehicle.
SIGNIFANCE OF STUDY:
Reliance AutoZone is a very different concept for the Indian context. In today’s scenario
we found that most of the people have their own vehicle and most of them are less
concerned about the servicing because of time.
But new format provides a one-stop solution to automobile owners who face inconvenience by
having to crisscross between various touch points for accessories, batteries, tyres and lubes etc.
at different locations at different times.”
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The customers who have expensive cars like Mercedes, BMW, etc. they prefer for the
authorized service centre. According to the study, 84% of people are satisfied with
service they get by authorized service centre.
Now reliance started with new format of servicing and some other add on services for the
Indian customer. They also act as well-wisher of the customer, and help the customer’s
query regarding servicing and service station.
This study shows that people prefer quality service and quality spare parts. Most of the
respondents prefer authorized service stations than any other auto service stations.
With such data it is interpreted that the Reliance AutoZone is emerging as a key and buzz
word which will change the way marketers market their products and services but it will
take time because the data says that 64% of customers are not aware about Reliance Auto
Zone. There is lot of promotion and advertising required to make Indian population aware
about this concept of AutoZone. The concept will explore in the Indian market when
company use more marketing concepts and promotional activities. Retaining the
customers is very important for any business as it increases the customer base and word
of mouth is the best publicity for any company.
RESEARCH METHODOLOGY:
Area scope-
o Study was conducted at various market places in Delhi/NCR.
Time scope-
o Time taken to conduct this survey was around 28 days.
Research Design-
o Adopted by us was descriptive research with the help of Questionnaire.
Research Instrument
o QUESTIONNAIRE, designed to gather the information from consumer, having
objective type, dichotomous type, multiple choice questions.
Pretesting of Questionnaire-
As a general rule, a questionnaire should not be used in the field survey without adequate
pretesting. So, pretesting of questionnaire was done on 10 customers and whatever
shortcomings were found in the questionnaire, we eliminated it and then we carried out
the final survey.
Sampling Plan
Information is gathered from a sample drawn from 3 different segment’s consumer.
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Lower income group (LIG)
Middle income group (MIG)
Higher income group (HIG)
Sampling Size
According to Gender
Male - 67 Female – 13
According To Occupation
Working-41 Non- Working-39
Judgmental sampling
Customers were chosen on our discretion in the market places. However in case of non
cooperation by the respondent it was substituted by the next customer. Respondents mainly
constituted who owned the car and involved in Buying of spare parts and servicing.
Field work
With the questionnaire we carried out the survey, where we interviewed the customers
And whatever data we got, we recorded that properly.
No. of customers-80
Location- Sec-62, 18, 58, Mohan Nagar Ghaziabad, Faridabad , Patparganj and other
Market places and offices in Delhi/NCR.
We formulated the following hypotheses during the course of the study. These were
tested using Chi Square test. Chi square test was used to find out the dependency between
various variables highlighted in the questionnaire. During the analysis phase SPSS
software was used extensively.
Hypothesis 1: Is there is a significant association between the age of respondent and the
awareness of the concept of Reliance Auto Zone.
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Hypothesis 2: Is there is a significant association between the occupation of respondent
and the awareness of the concept of Reliance Auto Zone
Hypothesis 3: Is there is significant association between the age of the respondent and
the survival of Reliance Auto Zone.
Findings and Analysis have been discussed under the following sub- headings
It become clearly evident that out of the 80 respondents 36 % (29 respondents) were
aware of the concept of Reliance AutoZone, which indicates that many respondents were
aware of the concept, however 64 % (51 respondents) were not aware, showing that the
respondents were almost having the same opinion as far as the awareness of the Reliance
AutoZone was concerned, which showed that still the concept is in its infancy stage. This
had also revealed that the concept was known to few respondents only, not for all the
respondents.
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Awareness of Reliance AutoZone According to Age of the Respondents.
Hypothesis 1
Null Hypothesis (H o) = There is no association between the age of respondent and the
awareness of the concept Reliance AutoZone.
Alternate Hypothesis (H 1) = There is association between the age of respondent and the
awareness of the concept of Reliance AutoZone
From the output table 2 it can be seen that the null hypotheses is rejected and it become
clear that there was difference among the age groups regarding the awareness of
Reliance AutoZone.
Table 2:
Chi-Square Test for Testing Awareness of Reliance AutoZone ,
across Age (n = 80)
Chi-Square Tests
N of Valid Cases 80
a. 1 cells (16.7%) have expected count less than 5. The minimum expected count is 3.63.
On the basis of the age pattern of the respondents, it can be interpreted that young
people were supposed to be more concerned and affected by the concept of
Reliance AutoZone.
This exists because of the fact that young respondents were more educated and
were more concern for the latest techniques of marketing.
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The output table reveals that the null hypothesis is rejected showing that the
occupation of the respondents and the awareness Reliance AutoZone are
associated and people in different occupation had different awareness level.
N of Valid Cases 80
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 14.14.
On the basis of the occupation, it can be interpreted that there was difference
among the respondents in different occupations for the concept of Reliance
AutoZone.
According to study it reveals that respondents who were working people were
more aware of the concept in reference to the other such groups.
Alternate Hypothesis (H 1) = There is association between the age of respondent and the
survival of Reliance Autozone.
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The output table 4 reveals that the null hypothesis is rejected showing that the age
of the respondent has no impact on survival of Reliance Autozone.
Table 4: Chi-Square Test for testing survival of Reliance Autozone across Age
(n = 80)
Chi-Square Tests
N of Valid Cases 80
a. 7 cells (58.3%) have expected count less than 5. The minimum expected count is .50.
On the basis of the age, it can be interpreted that there was difference among the
groups for the concept of Reliance Autozone. This clearly interprets that age
cannot be a single due the survival of the concept of Reliance Autozone.
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Chi-Square Tests
N of Valid Cases 80
a. 2 cells (25.0%) have expected count less than 5. The minimum expected count is 3.63.
Calculation of chi- square test reveals that there is difference between respondents
who were having different educational level as far as the concept of Reliance
AutoZone is concerned among the general masses. It becomes evident that education
is one of the basis due to which difference exists in the awareness of this concept in
particular.
Hypothesis 5
Null Hypothesis (Ho) = There is no association between the outlets and replacement of the
parts.
Alternate Hypothesis (H 1) = There is association between the outlets and replacement of the
parts.
The output table reveals that the null hypothesis is accepted showing that exists
such relationship between outlets and replacement of the parts.
Table 6: Chi-Square Test for Testing outlets and replacement of the parts by the
respondent (n = 80)
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Chi-Square Tests
N of Valid Cases 80
a. 6 cells (75.0%) have expected count less than 5. The minimum expected count is .75.
Closer analysis revealed that there exists such relationship between outlets where
respondent buy parts and replacement or primary concern of choosing such outlets
In order to find relationship between the frequency of servicing of the vehicle and
satisfaction level of servicing, the following hypothesis was formulated and Chi
Square Test of independence was used.
Hypothesis 6
Null Hypothesis (H o) = There is no association between the frequency of frequency of
servicing of the vehicle and satisfaction level of servicing .
Alternate Hypothesis (H 1) = There is association between the frequency of frequency
of servicing of the vehicle and satisfaction level of servicing.
The output table reveals that the null hypothesis is accepted showing that exists no
such relationship between frequency of frequency of servicing of the vehicle and
satisfaction level of servicing.
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Table 7: Chi-Square Test for Testing frequency of servicing and satisfaction
level of respondent (n = 80)
Chi-Square Tests
N of Valid Cases 80
a. 3 cells (37.5%) have expected count less than 5. The minimum expected count is 1.46.
Closer analysis revealed that there exist no such relationship between frequency of
servicing and the satisfaction level of respondent.
In order to find relationship between the frequency of promotions on mobile phone
and conversion of permission marketing into buying decision making, the
following hypothesis was formulated and Chi Square Test of independence was
used.
Hypothesis 7
The output table reveals that the null hypothesis is rejected showing that exists no
such relationship between Respondent awareness about Reliance Autozone and
Respondent Preference towards Reliance Autozone.
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Table 8: Chi-Square Test for Respondent awareness about Reliance AutoZone
and Respondent Preference towards Reliance AutoZone.(n=80)
Chi-Square Tests
N of Valid Cases 80
a. 1 cells (25.0%) have expected count less than 5. The minimum expected count is 3.63.
The study reveals that more promotions and advertisement results into changing the
preferences of consumer. The relevancy should be the prime aspect which is clearly
depicted from the table above as most of the respondents were not considering if they are
aware about the Reliance AutoZone, they will definitely go for it.
CONCLUSIONS
In the survey we found that the gender of the respondent does not make any significant
influence in the opinion of the respondents as far as Reliance Autozone is concerned. The
various other demographics like age, education, occupation would make a considerable
impact on the awareness of this concept of importance.
Various external sources like media, hoardings, mails, and websites were basically
contributed for the awareness of Reliance Autozone. Also, we found that most of the
respondent who have branded or expensive cars, they prefer to go to the authorized
service station.
But there is a positive outcome is that if the company makes them aware about the
Reliance Autozone, they will go there for servicing because of following reason:
A) Brand name of reliance
B) Quality of service
C) Less cost
From the study it was concluded that respondents used company’s own service center
and most of them are satisfied with it. But study reveals that if they get their vehicle
serviced along with other facilities like spare parts, etc. under one roof at low-cost they
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will definitely go for it. It becomes evident from the study that advertisement on media is
becoming a major technique of marketing.
During the study it was also came to know that those respondents who are aware of
Reliance AutoZone they haven’t approach because they are satisfied by the service
provided to them by their authorized company service station.
Despite of all other facts, we had revealed that majority of the respondents agrees that the
concept of Reliance AutoZone will be a useful concept in the future for them, and it will
help them to save time and money both.
RECOMMENDATIONS
After research and analysis, we found that most of the respondents are not aware about the
concept of Reliance AutoZone.
But after the awareness they will give their preference to Reliance AutoZone, because of the
brand name of the Reliance Company.
After completing the research work we came to know that following recommendations will be
helpful for the Reliance AutoZone to survive in India.
Advertisement plays a crucial role in promotion of any brand and also to provide
information about latest launches. The company must focus on creative advertisement
in the most effective media create an impact in the mind of the customers.
To attract Low Income Group & Middle Income Group, offer service that are having
latest features but at a slightly lower cost.
Increase focus on distribution channel so as to ensure the availability of all the spare
parts for all brand of vehicle and is easily available to customers at their nearby
locations.
The companies must conduct marketing survey at the regular intervals to know the
market condition, taste and preferences of the customers and technological awareness
of customers to enhance Sales and service quality.
LIMITATIONS
Every survey has certain limitations to it and the same is true with our survey. The main issue
was the casual behavior of people towards this research. Many of the respondents were not
interested in replying to our questions initially. Other issues regarding our research are-
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Our attempt was to cover most of the service stations of Delhi and NCR, but it was difficult to
travel to unknown places and gather information.
Many people may have given false information about their brand preferences, just to show their
status and might have misled us.
Lack of awareness among people about the new concept of AutoZone and brands also created
some troubles for us.
Since, it was not possible to include a lot many questions in the questionnaire, many aspects
related to the Reliance AutoZone and behavior of customers could not be studied.
Lastly but not the least, as this was our first MARKET SURVEY we were not very well aware
about the practical aspects of a marketing research. So, there are the chances that we may not be
able to present the findings and analyze it.
REFERENCES
Books:
MARKETING RESEARCH- AN APPLIED ORIENTATION
By- Naresh K. Malhotra
BUSINESS RESEARCH METHOD –
By-COOPER & SCHINDLER
10TH ED., TATA McGRAWHILL,2008
MARKETING RESEARCH – TEXT AND CASES
By- RAJENDRA NARGUNDKAR
Internet:
www.autozone.com
www.relianceindia.com
www.reliancemoney.com
www.google.com
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