Sanket Final Report

7/27/2019 Sanket Final Report

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PART-I

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1.1 INTRODUCTION RETAIL

Evolution of RetailRetail, according to Concise Oxford English Dictionary, is the sale of goods to the

public for use or consumption rather than for resale.

The barter system was first known retail form; then the currency changed hands; we had

the handcart vendor selling goods in the streets; of late we have a pop & mom stores

which compliment the neighborhoods stores.

The first retailer in India includes Bata, Pantaloon, Bombay Dyeing, Spencers, and

Nilgiris & Higginbotham. The current retail scenario is controlled by the likes of

Shoppers Stop, Brand Outlets, Big Bazaars etc.

The top 4 world players include Wal-Mart, Carrefour, Tesco and Metro.

The opportunities as mentioned are aplenty with close to 15000000 sq.feet of retail space

is under construction for various malls & shopping centers across the country.

Retailing consists of the sale of goods or merchandise, from a fixed location such as a

department store or kiosk, in small or individual lots for direct consumption by the

purchaser. Retailing may include subordinated services, such as delivery. Purchasers

may be individuals or businesses. In commerce, a retailer buys goods orproducts in

large quantities from manufacturers orimporters, either directly or through a wholesaler,

and then sells smaller quantities to the end-user. Retail establishments are often called

shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see

the process of retailing as a necessary part of their overall distribution strategy.

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What is Retailing

The sale of goods or commodities in small quantities directly to consumers.

Buy, Sell & Move

Buy, Move & Sell

Having gone through some of the terminologies in retail and having seen a broad outline

of retail now lets look into the 3 basic things, which govern the retail market.

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1. Buy

Buying would involve the following activities, which would mean setting the guiding

principles for all the merchandise decisions that a retailer makes. It should reflect target

market desires, retailers institutional type, market place positioning, defined value

chain, supplier capabilities, costs, competitors & product trends.

2. Move

It can be easily said but the processes that are involved in the move part are complex

but simple. From the product stage through the processing stage to the packed ones the

move stage would continue.

Various levels that involves in move part are:

The buyer shortlists the product, places the order.

The vendors receives the order, process the same, packs and send it to the distribution

center from where it reaches the store for the customer to buy.

One of the fast picking up aspects of the logistic in India is the COLD CHAIN. More

and more organizations are looking for various aspects of cold chain to ensure that the

products where temperature plays a vital role is maintained and sustained till such time

the sale happens.The Merchandising and Category management is another important function of the retail

industry. In this we have to opt for right product, place, quantity, quality, mix, price and

time. Each of the stores would operate on certain basic business projection and all others

will follow a typical pattern. For this pattern to be arrived, the merchandise management

plays a big role. The merchandise can make or break an organization of its profitability.

When we say category management, it would amply the assortments of products the

customer sees as reasonable substitutes for each other with similar characteristics. It also

covers the process of managing merchandise in a retail business with the objective of

maximizing sales and profits of a category. The category manager is also responsible for

developing assortment plans for the entire category, buying pricing and coordinating

promotions.

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3. Sell

Finally of the Buy, Move & Sell comes the selling part of it which involves a running of

a retail stores. Operations as it is known are the crucial functions, which derive its

strength from various other faculties.

The beginning of the day is done with the store being opened by the competent person.

The first activity to happen will be the housekeeping activities followed by the staff

scheduling. The mornings meetings happen chaired by the head of the store. The stock

outs are established and the replenishments happen as the day progresses, though it is

suggested that replenishments of the stock should always happen when the customer is

not there. The head of the store usually inspects any one or all the departments of the

store, which is otherwise called the FLOOR WALK.

At the end of day the process of concluding the activities is called the END OF THE

DAY activities. As the person who is in charge of closing the store goes around

checking whether the locks are in place or not; the high value merchandise counters are

properly secured; check for any person hidden in the change rooms or cloaks rooms; the

cashier would ensure that all the money that has been given as float tallies apart from the

money that need to be submitted by the respective cashiers. There will be a checklist thatneeds to sign off together by the security as well as the in charge for having checked for

conformity at the end of the day.

1.2 - RETAIL IN DETAIL

The Indian Retail market is worth a whooping 930000 crores. If one has to divide

between the organized and unorganized sectors the major contribution comes from the

unorganized sector, which contributes close to 98% of the total retail market. The

balance of 2% amounts anywhere between 18-2000 crores.

The difference between organized and unorganized sectors in the US & some of the Far

East Asian countries are pretty low unlike in India. With the advent of seasoned players

in the field of retail in India, the gap is likely to be abridged in the coming years.

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The difference between them is 85:15 in favor of organized sector in the US and 81:19 in

the favor of the organized sector in Taiwan.

The employment opportunities in retail is pretty high. But again the ratio of organized

and unorganized is skewed towards the unorganized sector. While the organized retail

sectors deploys 500000 people & the unorganized sector deploys close to 80 times the

workforce.

Factors that influence the growth in retail

The DINK/HINK families, working women, working parents and the rising disposable

income has contributed to the growth of Retail across. The middle-income group is the

fastest growing segment in the country today. Further the electronic media is also aiding

the growth of the Retail industry.

To summarize the top 6 factors that drive the growth of the retail industry in India would

be as follows:

The Demographics

Lifestyles

Needs and Desires

Shopping Attitudes and Behavior

Retailers action

Environmental Factors

These six factors clubbed with a co-coordinated logistics make the sale happen. As in

any industry there is a social commitment also to be fulfilled. These can be recapitulated

as under:

Quality products

Competitive prices

Wide range to choose from

Employment opportunities that are created

The economy would experience sea of change and

Would mean a WIN WIN situation to everyone

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Support Functions:

The entire operation is possible with the help of a support team. This support team

consists of the following:

Human Relation-Involves itself in recruitment, training and welfare apart from their

regular activities

Good Receiving-This department is responsible not just for the receipt of goods but also

checking for their conformity and returns goods to the suppliers as need arises.

Maintenance-The entire stores furniture and fixtures are taken care of by the

maintenance team

Accounts-the department, which receives all the cash, charge slips and other types of

tenders; keeps a tag on the local store expenditure and also monitors any deviation in the

transactions.

Housekeeping- Mostly its an outsourced agency, which does the work. They keep the

premises clean and tidy at all levels.

Security-They are responsible for safeguarding men and material of the organization.

VM-This department maintains the displays and the signage across the stores.

CSD-Otherwise known as the customer service desk takes care of the customer

complaints and issuance of merchandise credit and taking care of the loyaltyprogrammed.

IT-The IT department takes care of all the Networking, data maintenance and upkeep of

all the tills.

1.3 RETAIL TERMINOLOGIES

Alike any other industry the retail industry also has a wide range of terminologies, which

are in use on a day-to-day basis. Few samples of them would include the following:

Till- The cash point

Tender- The type of payment the customer is making

SKU- Stock keeping unit

Merchandise Credit- Credit note

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Assortment- Range of products and so forth

Maximum Bay Quantity - It is the maximum quantity of each product, which can be

placed on each shelf.

Maximum Display Quantity It is the number of SKUs, which can be directly seen by

the customer in the front side.

Retail types

There are three major types of retailing. The first is the market, a physical location where

buyers and sellers converge. Usually this is done on town squares, sidewalks or

designated streets and may involve the construction of temporary structures (market

stalls). The second form is shop or store trading. Some shops use counter-service, where

goods are out of reach of buyers, and must be obtained from the seller. This type of retail

is common for small expensive itms (e.g. jewelry) and controlled items like medicine

and liquor. Self-service, where goods may be handled and examined prior to purchase,

has become more common since the Twentieth Century. A third form of retail is virtual

retail, where products are ordered via mail, telephone or online without having been

examined physically but instead in a catalog, on television or on a website. Sometimes

this kind of retailing replicates existing retail types such as online shops or virtual

marketplaces such as eBay orAmazon.

Retail pricing

Thepricing technique used by most retailers is cost-plus pricing. This involves adding a

markup amount (or percentage) to the retailers cost. Another common technique is

suggested retail pricing. This simply involves charging the amount suggested by the

manufacturer and usually printed on theproduct by the manufacturer.

In Western countries, retailprices are often so-called psychological prices or odd prices:

a little less than a round number, e.g. $6.95. In Chinese societies, prices are generally

either a round number or sometimes a lucky number. This createsprice points.

Often prices are fixed and displayed on signs or labels. Alternatively, there can beprice

discrimination for a variety of reasons. The retailer charges higher prices to some

customers and lower prices to others. For example, a customer may have to pay more if

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the seller determines that he or she is willing to. The retailer may conclude this due to

the customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Price

discrimination can lead to a bargaining situation often called haggling a negotiation

about the price. Economists see this as determining how the transaction's total surplus

will be divided into consumer and producer surplus. Neither party has a clear advantage,

because the threat of no sale exists, whence the surplus vanishes for both.

Retailers who are overstocked, or need to raise cash to renew stocks may resort to

"Sales", where prices are "marked down", often by advertised percentages - "50% off"

for example."Sales" are often held at fixed times of the year, for example January sales,

or end-of-season sales, orBlue Cross Sale.

Top Retailer Worldwide

Rank Retailer Home Country1 Wal-Mart Stores, Inc. U.S.A.2 Carrefour Group France3 The Kroger Co. U.S.A.4 The Home Depot, Inc. U.S.A.5 Metro Germany(Source: Stores/Deloitte Touche Tomahatsu)

1.4 RETAIL SECTOR IN INDIA

As the corporate the Piramals, the Tatas, the Rahejas, ITC Ltd, S.Kumars, RPG

Enterprises, Shoppers Stop, Pantaloons, Reliance Retail, Vishal Mega Mart, Aditya

Birla Group, Subhiksha, Landmark Group, True Mart race to revolutionize the retailing

sector, retail as an industry in India is coming alive.

Across the country, retail sales in real termss are predicted to rise more rapidly than

consumer expenditure during 2003-08. The forecast growth in real retail sales during

2003- 2008 is 8.3% per year, compared with 7.1% for consumer expenditure.

Modernization of the Indian retail sector will be reflected in rapid growth in sales of

supermarkets, departmental stores and hyper marts. Sales from these large-format stores

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are to expand at growth rates ranging from 24% to 49% per year during 2003-2008,

according to a latest report by Euro monitor International, a leading provider of global

consumer-market intelligence.

A. T. Kearney Inc. places India 6th on a global retail development index. The country

has the highest per capita outlets in the world - 5.5 outlets per 1000 population. Around

7% of the population in India is engaged in retailing, as compared to 20% in the USA.

The factors responsible for the development of the retail sector in India can be

broadly summarized as follows:

Rising incomes and improvements in infrastructure are enlarging consumer

markets and accelerating the convergence of consumer tastes.

Looking at income classification, the National Council of Applied Economic

Research (NCAER) classified approximately 50% of the Indian population as

low income in 1994-95; this has declined to 17.8% in 2006-07.

Liberalization of the Indian economy which has led to the opening up of the

market for consumer goods has helped the MNC brands like Kellogg, Unilever,

Nestle, etc. to make significant inroads into the vast consumer market by offering

a wide range of choices to the Indian consumers.

Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic,

etc.

The internet revolution is making the Indian consumer more accessible to the growing

influences of domestic and foreign retail chains. Reach of satellite T.V. channels is

helping in creating awareness about global products for local markets. About 47% of

Indias population is under the age of 25; and this will increase to 55% by 2015. This

young population, which is technology-savvy, watch more than 50 TV satellite channels,

and display the highest propensity to spend, will immensely contribute to the growth of

the retail sector in the country. As India continues to get strongly integrated with the

world economy riding the waves of globalization, the retail sector is bound to take big

leaps in the years to come.

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The Indian retail sector is estimated to have a market size of about $ 180 billion; but the

organized sector represents only 3% share of this market. Most of the organized retailing

in the country has just started recently, and has been concentrated mainly in the metro

cities.

India is the last large Asian economy to liberalize its retail sector. In Thailand, more than

40% of all consumer goods are sold through the super markets and departmental stores.

A similar phenomenon has swept through all other Asian countries. Organized retailing

in India has a huge scope because of the vast market and the growing consciousness of

the consumer about product quality and services.

A study conducted by Fitch, expects the organized retail industry to continue to grow

rapidly, especially through increased levels of penetration in larger towns and metros and

also as it begins to spread to smaller cities and B class towns. Fuelling this growth is the

growth in development of the retail-specific properties and malls. According to the

estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed

and will be available for occupation over the next 36-48 months. Fitch expects organized

retail to capture 15%-20% market share by 2010.

A McKinsey report on India says organized retailing would increase the efficiency and

productivity of entire gamut of economic activities, and would help in achieving higher

GDP growth. At 6%, the share of employment of retail in India is low, even whencompared to Brazil (14%), and Poland (12%).

Total Private Consumption Expenditure in India 375 Billion USD

Retail Sale 205 Billion USD

Organized Retail 6.2 Billion USD (3%)

Retailing 35% of GDP

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1.5 RETAILING FORMATS IN INDIA

Malls:The largest form of organized retailing today. Located mainly in metro cities, in

proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They

lend an ideal shopping experience with an amalgamation of product, service and

entertainment, all under a common roof. Examples include Shoppers Stop, Pyramid,

Pantaloon.

Specialty Stores:Chains such as the Bangalore based Kids Kemp, the Mumbai books

retailer Crossword, RPG's Music World and the Times Group's music chain Planet M,

are focusing on specific market segments and have established themselves strongly in

their sectors.

Discount Stores:As the name suggests, discount stores or factory outlets, offer discounts

on the MRP through selling in bulk reaching economies of scale or excess stock left over

at the season. The product category can range from a variety of perishable/ non

perishable goods.

Department Stores:Large stores ranging from 20000-50000 sq. ft, catering to a varietyof consumer needs. Further classified into localized departments such as clothing, toys,

home, groceries, etc.

Department Stores: Departmental Stores are expected to take over the apparel business

from exclusive brand showrooms. Among these, the biggest success is K Raheja's

Shoppers Stop, which started in Mumbai and now has more than seven large stores (over

30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!.

Hypermarts/Supermarkets:Large self service outlets, catering to varied shopper needs

are termed as Supermarkets. These are located in or near residential high streets. These

stores today contribute to 30% of all food & grocery organized retail sales. Super

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Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq

ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong

focus on food & grocery and personal sales.

Convenience Stores:These are relatively small stores 400-2,000 sq. feet located near

residential areas. They stock a limited range of high-turnover convenience products and

are usually open for extended periods during the day, seven days a week. Prices are

slightly higher due to the convenience premium.

MBOs:Multi Brand outlets, also known as Category Killers, offer several brands across

a single product category. These usually do well in busy market places and Metros.

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1.6 INTRODUCTION TO THE COMPANY

reliance group

Founder Chairman of Reliance Group

"Growth has no limit at Reliance. I keep revising my vision.Only when you can dream it,

you can do it."

Dhirubhai H. Ambani

Founder Chairman Reliance Group

December 28, 1932 - July 6, 2002

Shri Dhirubhai Ambani was an exceptional human being and an outstanding leader. He

dared to dream on a scale unimaginable before in Indian industry. His life and

achievements prove that backed by confidence, courage and conviction, man can achievethe impossible. From a humble beginning, he went on to create an enviable business

empire within a span of just 25 years. The US$ 54 billion Reliance Group is a living

testimony to his indomitable will, single-minded dedication and an unrelenting

commitment to his goals.

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The Group's track record of consistent growth is unparalleled in Indian industry and

perhaps internationally too. Today, the Group's turnover represents nearly 3 percent of

India's GDP.

The corporate philosophy he followed was short, simple and succinct - "Think big.

Think differently. Think fast. Think ahead. Aim for the best". He inspired the Reliance

team to do better than the best - not only in India but in the world. He was probably the

first Indian businessman to recognize the strategic significance of investors and discover

the vast untapped potential of the capital markets and channelise it for the growth and

development of industry. He was supremely confident that finance would never be a

constraint in executing his projects because, as he said proudly, Indian investors would

provide him with the necessary resources. For him, his people were his most important

asset.

He scouted around for the best and most talented professionals, nurtured them and

continuously propelled them to aim for still higher goals. These highly motivated people

comprise the core of what he named: "The Reliance Family".

Shri Dhirubhai Ambani visualized the growth of Reliance as an integral part of his grand

vision for India. He was convinced that India could become an economic superpower

within a short period of time and wanted Reliance to play an important role in realizing

this goal.The Bhagavad Gita states, "The actions of a great man are an inspiration for others.

Whatever he does, becomes a standard for others to follow." This certainly applies to

Shri Dhirubhai Ambani.

The Reliance Group is India's largest private sector enterprise, with businesses in the

energy and materials value chain. Group's annual revenues are in excess of USD 22

billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500

company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of

Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of

backward vertical integration - in polyester, fiber intermediates, plastics, petrochemicals,

petroleum refining and oil and gas exploration and production - to be fully integrated

along the materials and energy value chain.

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The Group's activities span exploration and production of oil and gas, petroleum refining

and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals),

textiles and retail.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and

fiber producer in the world and among the top five to ten producers in the world in major

petrochemical products.

The Group exports products in excess of USD 7 billion to more than 100 countries in the

world. There are more than 25,000 employees on the rolls of Group Companies. Major

Group Companies are Reliance Industries Limited (including main subsidiaries Reliance

Petroleum Limited and Reliance Retail Limited), Indian Petrochemicals Corporation

Limited and Reliance Industrial Infrastructure Limited.

Mr. Mukesh Ambani

Chairman & Managing Director

Mr. Mukesh D. Ambani, age 49, is a Chemical Engineer from the University of Bombay

and pursued MBA from Stanford University, USA. He is the son of Mr. Dhirubhai H.

Ambani, Founder Chairman of the Company

Mukesh Ambani is the chairman, managing director and the largest shareholder of

Reliance Industries, India's largestprivate sectorcompany and a Fortune 500 Company.

His personal stake in Reliance Industries is 48%. His wealth is US$ 20.1 billion as of

March 2007, making him the world's 14th richest person and the second richest person in

India. Mukesh and younger brother Anil are sons of the late founder of Reliance

Industries.

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Mukesh Ambani joined Reliance in 1981 and initiated Reliance's backward integration

from textiles into polyester fibres and further into petrochemicals. In this process, he

directed the creation of 60 new, world-class manufacturing facilities involving diverse

technologies that have raised Reliance's manufacturing capacities from less than a

million tonnes to twelve million tonnes per year.

Mukesh Ambani is also steering Reliance's initiatives in a world scale, offshore, deep

water oil and gas exploration and production program, a pan-India petroleum retail

network involving 5,800 outlets and a research-led life sciences initiative covering

medical, plant and industrial biotechnology.

Mr. Mukesh D. Ambani joined Reliance in 1981 and initiated Reliance's backward

integration from textiles into polyester fibers and further into petrochemicals. In this

process, he directed the creation of several new and large world-class manufacturing

facilities involving diverse technologies that have raised Reliance's petrochemicals

manufacturing capacities from less than a million tones to over thirteen million tones per

year. He directed and led the creation of the world's largest grassroots petroleum refinery

at Jamnagar, India, with a present capacity of 660,000 barrels per day (33 million tones

per year) integrated with petrochemicals, power generation and port and related

infrastructure. He had set up the Reliance's communications technology initiative that is

the largest and most complex information and communications technology initiative inthe world.

Mr. Ambani is steering Reliance's initiatives in a world scale, offshore and onshore oil

and gas exploration and production program, creation of a pan-India petroleum retail

network and setting up of a new export oriented refinery through RIL's subsidiary

Reliance Petroleum Limited (RPL) with a capacity of approximately 580,000 barrels per

stream day integrated with a 0.9 MMTPA polypropylene plant.

Mr. Ambani's Achievements include:

Conferred 'ET Business Leader of the Year' Award by The Economic Times (India) in

the year 2006.

Had the distinction and honor of being the co-chair at the World Economic Forum

Annual Meeting 2006 in Davos, Switzerland.

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Ranked 42nd among the 'World's Most Respected Business Leaders' and second among

the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and

published in Financial Times, London, November 2004.

Conferred the World Communication Award for the 'Most Influential Person in

Telecommunications in 2004' by Total Telecom, October 2004.

Chosen 'Telecom Man of the Year 2004' by Voice and Data magazine, September 2004.

Ranked 13th in Asia's Power 25 list of 'The Most Powerful People in Business' published

by Fortune magazine, August 2004. 30 Growth is Life

Conferred the 'Asia Society Leadership Award' by the Asia Society, Washington D.C.,

USA, May 2004.

Ranked No.1 for the second consecutive year, in The Power List 2004 published by

India Today, March 2004.

Mr. Mukesh D. Ambani is the Chairman of Indian Petrochemicals Corporation Limited,

Reliance Petroleum Limited and Reliance Retail Limited. He is member of the

Shareholders'/ Investors' Grievance Committee of the Company.

1.7 Major Subsidiaries & Associates:-

The Reliance Industries Limited is the flagship company of Reliance Group which has

ownership interest in the following subsidiaries & associates

Major Subsidiaries

Reliance Petroleum Limited

Reliance Netherlands BV (including Trevira)

Reliance Retail Limited

Ranger Farms Private Limited

Retail Concepts and Services Private Limited

Reliance Retail Insurance Broking Limited

Reliance Dairy Foods Limited

Reliance Retail Finance Limited

RESQ Limited

Reliance digital Retail Limited

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Reliance Service Solutions Limited

Reliance Jamnagar Infrastructure Limited

Reliance Haryana SEZ Limited

Reliance Industrial Investment & Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments Limited

Reliance Exploration & Production - DMCC

Reliance Industries (Middle East) DMCC

Reliance Global Management Services (P) Limited

Reliance Commercial Associates Private Limited

RIL (Australia) Pty Limited

Major Associates

Indian Petrochemicals Corporation Limited

Reliance Industrial Infrastructure Limited

Reliance Fresh

Reliance Industries launched its first retail format called Reliance Fresh in Hyderabad.Spread over 2,000-5,000 sq ft, 11 such Reliance Fresh neighborhood convenience stores

were come up in the city. These stores sell fresh fruit and vegetables besides staples (dal,

atta, rice) as well the companys in-house brand Reliance Select and Reliance Value.

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end,

we are aggressively working on introducing a pan-India network of retail outlets in

multiple formats. A world class shopping environment, state of art technology, a

seamless supply chain infrastructure, a host of unique value-added services and above

all, unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make

India proud. Ensuring better returns to Indian farmers and manufacturers and greater

value for the Indian consumer, both in quality and quantity, will be an integral feature of

19
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this project. By creating value at all levels, we will actively endeavor to contribute to

India's growth.

The project will boast of a seamless supply chain infrastructure, unprecedented even by

world standards. Through multiple formats and a wide range of categories, Reliance is

aiming to touch almost every Indian customer and supplier.

The Fresh stores at Hyderabad are part of a pilot project, which will help company

understand customer needs. The pilot for this format will be taken to many other cities

over the next few months. Next on the companys list are bigger cities including Delhi

and Mumbai

RIL intends to invest close to Rs 25,000 crore over the next five years in the retail

business. The company plans to establish 4,000 retail outlets across various formats by

then, and is eyeing sales of Rs 1,00,000 crore over the 5-year period from the retail

business.

Besides Reliance Fresh, the company also plans to launch larger format stores called

Feel Fresh Plus which will be spread over 10,000-15,000 sq ft. The Fresh Plus stores

will stock fruit and vegetables as well as apparel, consumer electronics, FMCG items

and even medicines. From Hyderabad, these stores will travel to Mumbai and Delhi

where Reliance has identified up to 80 locations each.

But even as the retail debut kicks off with fruit and vegetables, it seems the company isdoing a rethink on whether to get into the larger formats such as hypermarkets and

supermarkets. These two formats require over 1 lakh sq ft of space and may not come up

at prime city locations. Instead, Reliance is contemplating tapping alterative sites such as

the SEZs for opening hypermarket

The strategy is to open one Reliance Fresh store in a radius of three to four km to serve

1,000-2,000 families. This means about 30-40 stores in the major metros. Reliance Fresh

is selling vegetables and fruits sourced from farmers through the companys agri hubs.

Reliance Fresh would carry fresh fruits and vegetables, staples, top-up grocery, non-

food items and dairy products and a whole lot of other categories at very competitive

prices. All the stores opened have an average area of about 1,800 sq ft and an average of

about 20 sales associates attending to customers in each store open from 8 a.m. to 10

p.m. on all seven days of the week.

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A targeted sales turnover of Rs 90,000 crore (US$ 20 billion) by 2010 with a planned

investment of Rs 30,000 crore over the next five years that's the retail vision of

Mukesh Ambani and his RIL retail team. RIL's retail venture seems all set to achieve the

status of being the flag-bearer of India Retail Inc, and that too in record time!

Culling information from all possible sources, Images F&R Research attempts to put the

Reliance Retail jigsaw in order and see how the concept and strategy differentiates from

the existing competition, how it impacts the intermediaries and consumers, and more

interestingly, how will it stand up to the real competition from global retail powerhouses

like Wal-Mart, Carrefour, Target, Metro, Sears and Tesco that are eager to enter the

Indian retail arena once the FDI barrier is lifted. Read on for the full story

It's been in the news for quite some time now. Earlier, about a year ago, it was only

whispered in close industry circles. Slowly the whispers become louder, and the word

gained ground that India's largest private sector company, Reliance Industries Limited

(RIL), is entering the Indian retail sector in a real big way.

But with virtually nothing coming from anyone in the know inside RIL about their retail

plans, this has to be one of the most closely guarded secrets of India's corporate story.

Amidst all sorts of speculations in the media circles about RIL's intended retail foray, the

word finally came out on January 23, 2006, when the Mukesh Ambani-controlled

Reliance Industries Limited presented the mega retail initiative plans to its board ofdirectors who subsequently gave their consent to pursue the retail business through a

wholly-owned subsidiary of the company likely to be christened Reliance Retail

Limited.

The Reliance Retail blueprint envisages nation-wide chains of hypermarkets,

supermarkets, discount stores, department stores, convenience stores and specialty

stores, in about 800-odd cities and towns across the length and breadth of India. The RIL

board of directors approved the initial phase of the retail foray at an estimated cost of Rs

3,350 crore (US$ 750 million).

That was big news for both the national and international media, which went all agog

again with intense speculation. Giving full respect to the importance of this

announcement, more than one leading international daily chiefly, The Financial Times

gave this news a front-page treatment, speculating (like many others) that this

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investment could just be an initial tranche of a much larger commitment from Reliance

Industries towards the retail project.

Just how big and grand this investment is for the Indian retail sector can be gauged by

the simple fact that the entire Indian retail sector is estimated to be at Rs 1050,000 crore

(US$ 233 billion) growing at five per cent annually and the estimated share of

organised retail is only Rs 36,000 crore (US$ 8 billion), at present, albeit growing at over

30 per cent every year.

That makes Reliance Retail's proposed investments equivalent to about 10 per cent of

India's organised retail market such a level of investment in the Indian retail arena has

been unprecedented in the country's most promising sunrise industry retail.

So much so, projections by the Images-KSA India Retail Report 2005 of an organised

retail market of Rs 100,000 crore (US$ 22 billion) by 2010 now appears conservative,

likely to be achieved much earlier than 2010.

If Indian retail was lacking a whole-hearted and full-blooded thrust from a big and large

corporate house (apart from the lukewarm investments made by the Tatas and ITC), it is

now all set to change. Mukesh Ambani, who has been nourishing retail ambitions for

quite some time now, has clearly positioned himself in to the role of redefining the entire

landscape of Indian retail.

RIL Set To Become World's Largest Real Estate Property OwnerWhat is even more interesting is that Reliance Industries Limited will far out-surpass the

Catholic Church in becoming the world's largest owner of real-estate property by virtue

of its mega Retail and Satellite Township plans, in the next two to three years!

Now what exactly does this mega retail plan portend for the Indian retail sector? In fact,

what exactly are RIL's plans, in terms of retail strategy? How will RIL differentiate its

stores and concept from existing players who have already moved into the retail space

earlier, and have already established a good foothold? How will this impact the existing

retail majors the likes of Pantaloon Retail, Trent India, Shoppers' Stop, RPG, etc? How

will the consumer benefit from RIL's venture and how will intermediaries like traders,

suppliers and farmers all along the supply chain network benefit? What will be the USP

of Reliance Retail?

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And, more significantly, how will this impact the major international retailers who plan

to enter the Indian retail market? Reliance Retail is in fact giving India for the first time a

real feel of the scale at which these global retail powerhouses actually operate, it is

preparing India to stand up to the ensuing competition and in the process, allow

consumers the full benefits of modern retail.

Retail Will Become Core Business of RIL

Reliance Industries Limited is the largest and one of the fastest growing private sector

companies in India, with business activities encompassing almost all major growth

sectors of the Indian economy. The company manufactures and markets a wide range of

products with market leadership in almost all its businesses.

All of Reliance Group production and services ventures have one common feature

global scale operations employing state-of-the-art technology in all fields. The company

is truly emerging as a well diversified conglomerate with global competence in

technology, management and financial capabilities to meet the needs of a rapidly

growing Indian market.

With domestic market shares ranging from 40-80 per cent, RIL is also ranked among the

top 10 producers globally, for all its major product segments. It is one of India's largest

business conglomerates with total revenues of Rs 1,00,650 crore (US$ 22.6 billion).It is being speculated within the industry that the ROIs made by RIL in the retail space

will far out-shadow its existing core flagship businesses and very soon retail will

become the core business for the Mukesh Ambani-controlled Reliance empire.

Future Planning:-

Company plans to have a pan-India presence by opening stores in 784 cities and 600

small towns and achieve a target of Rs.10 billion revenue by 2010 by which time it

hopes to complete Phase 1. In the first phase company plans to employ 500,000 people.

It is following an all-inclusive model giving the right affordability across all income

groups. Company is aggressively partnering farmers by following a farm-to-fork strategy

in its supply chain management model and ensures that it delivers fresh fruits and

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vegetables at affordable prices to consumers. Currently, Reliance Fresh has over 100

stores across the country.

Reliance Fresh also offers a membership and loyalty programme - Reliance One - to

deliver customized benefits to frequent shoppers. Currently, it has 200,000 loyalty

customers across Hyderabad, Jaipur and Chennai.

Reliance Retail, the 100% subsidiary of Reliance Industries, on October 28 unveiled

Reliance Fresh, the first of its multi-format retail foray involving an investment of Rs

25,000 crore.

Reliance Fresh is the companys brand for neighborhood fresh-food outlets. It will also

sell kitchen equipment and other edibles.

Besides, it has planned hypermarkets, supermarkets, discount stores, department stores,

convenience stores and specialty stores, to be unveiled shortly.

The Reliance Fresh supermarket chain is RILs Rs 25,000 crore venture and it plans to

add more stores across different geographies, and eventually have a pan-India footprint

by year 2011.

The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars

and dairy products and also will sport a separate enclosure and supply-chain for non-

vegetarian products.

Currently, selling through company-owned stores currently totals just $8 billion in India.Industry estimates say that the countrys retail industry is worth $300 billion, that is

about Rs 13, 50,000 crore. This stands a chance to blossom to $427 billion in the next

four years. Organized retail accounts for just over Rs 35,000 crore. Reliance Fresh bids

to tap the potential for organized retail in the country.

Point of Sale Software System

Retalix StoreLine is an open-standards, fully integrated and cross-functional Point of

Sale (POS) and store management software system. Its uniqueness is in the functionality,

world-wide install base, and hardware independence.

Multi-Concept Functionality that delivers a fully integrated POS solution to meet all of

your business needs

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Open by Design supports industry standards and is hardware independent plus

integration with other third-party retail applications is straightforward, affordable and

low risk

Advanced Promotion Features enable a single point of update for pricing and promotions

across all retail formats

Graphical, Easy to Use flexible intuitive user interface, touch-screen capabilities and

even graphical customer screens, means that cashier training is minimal and customer

interaction is effortless

Quick Service Deli, provides a powerful method of managing fresh-made sandwiches

and deli items

Fuelprovides full support for operating an onsite fuel station, supporting a full range of

fuel station and supermarket services

Retalix BackOffice is tightly integrated with Retalix StoreLine, and offers POS item

management and reporting, DSD receiving, label and sign printing, handheld RF

communications, host communications and in-store ordering

Retalix PocketOffice is a mobile platform that enables users to manage store operations

anywhere in the store, taking the application to the business decision point, while on the

sales floor or receiving dock.

Retalix StoreLine is installed in more than 250,000 POS terminals worldwide, and is theselected POS solution of top-tier retailers such as Tesco, Publix, Sainsbury's,

Woolworths Australia, Delhaize Group, Hy-Vee, and the A.S. Watson Group.

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1.8 Supply Chain Management

A supply chain is a network of facilities and distribution options that performs the

functions of procurement of materials, transformation of these materials into

intermediate and finished products, and the distribution of these finished products to

customers. Supply chains exist in both service and manufacturing organizations,

although the complexity of the chain may vary greatly from industry to industry and firm

to firm.

From the above pictorial representation of supply chain management of reliance fresh it

is clear that raw material is procured from vendors, transformed into finished goods in a

single step, and then transported to distribution centers, and ultimately, customers.

Realistic supply chains have multiple end products with shared components, facilities

and capacities. The flow of materials is not always along an arborescent network, various

modes of transportation may be considered, and the bill of materials for the end items

may be both deep and large.

Farmers

Collectioncenter

Distribution centerReliance Fresh

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1.9 RELIANCE ONE MEMBERSHIP CARD

This is a card which was given to the customer at free of cost. This card helps to increase

the loyalty sales percentage of the store. Benefits of this card are:

Customer will get 1% point of his purchasing amount added to his\her membership card.

When these points will become 25, it means that 25 points is equivalent to 25/-. He\she

will be able to redeem his\her points & get a discount of 25/-

With this card customer will get Accidental Death Insurance of 50000/- by default.

If customer will recharge their Hutch, Reliance, Airtel & Idea mobile from CSD then

also 15 point of the amount he recharge will be added to his card.

In starting customer will get temporary card, which is valid for 180 days. Within 180

days customer will get permanent card, which is look like plastic card at postal address

given by the customer in the form for issuing of RelianceOne Membership Card. The

customer has fill up all the required details mentioning his Reliance One Membershipcard number, first name and last name.

1. The MSR has to handover the new temporary card to the customer and fill up the

new card number in the space provided. The MSR has to destroy the

corresponding application form by tearing it.

2. The customer has to sign the request form and hand it over to the MSR.

3. The MSR checks for the following on the form

a. Reliance One membership number

b. First Name

c. Last Name

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d. If the card is damaged, the MSR has to collect the damaged card and tick

the appropriate option on the application form. If the card is lost, then the

appropriate option is ticked.

e. Date

f. Customer Signature

4. The MSR has to inform the customer that he\she will not be able to earn points

using the old card since it will be deactivated.

5. The MSR should inform the customer that he\she would be able to use the new

card with immediate effect. However, the customer can start redeeming only after

a period of 21 working days, which are required for processing the replacement

request.

6. The MSR then fills up the information in the FOR OFFICE USE space.

7. The format for request ID is store code- date in DDMYY- serial number stating

from 0001.

8. The MSR fills up the MSR code and signs in the space provided.

9. All these damaged cards and application for replacement cards should be filled

separately and kept at store under lock and key.

10. Once the system for making these changes is live, all these forms have to be sent

to the data entry center for the processing. The data for dispatch will be notifiedlater.

The format of Application Form for Request for Replacement Card is:

Application Form for Request for Replacement Card

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PART-II

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2.1 Literature review

The use of consumer preference in retailing has increased rapidly in recent times, yet

more often than not promotions are being implemented with an inadequate

understanding of which mechanisms are most effective, for which products and for

which shopper segments (Felgate et al, 2011). Despite this growth in the use of

promotions, particularly in the Fast Moving Consumer Goods (FMCG) sector,

consideration of their impact and effectiveness amongst academics has been limited. It

has been identified as an important area for future research, as has the greater use of

supermarket panel data to provide insights into how different shoppers respond to price

changes, including promotions (Grewal and Levy, 2009). Moreau et al (2001) assert thata lack of understanding by retailers about consumer perceptions of promotions can lead

to weaknesses in their marketing strategies. Thus, as the use of promotions continues to

grow, it is increasingly important to gain a more complete understanding of how

consumers actually behave in response to different promotional activities.

This paper reports the use of loyalty card data from one of the biggest retailers in the

world Tesco - to analyse the impact of promotions. The aim of the paper is to

demonstrate how such data can bring significant benefits to retailers and manufacturers

when deciding promotional strategies, over and above traditional scanner datasets, which

the majority of existing research is based around. While the case study is based on data

from the UK, it demonstrates how other major retailers with similar loyalty card schemes

(e.g. Kroger in the USA, and Casino in France) could make use of this powerful source

of behaviour data to gain a better understanding of the effectiveness of promotions in

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key (destination) categories. The paper also contributes to the existing promotions

literature, through presenting a conceptual framework to test the moderating effect of

shopper specific characteristics such as life-stage and region on promotional impacts.

Spotlights that a number of consumer preference benefits flow to manufacturers and

consumers. Manufacturers can adjust to short-term variations in supply and demand and

test how high a list price they can charge, because they can always discount it. consumer

preference induce consumers to try new products and lead to more varied retail formats,

such as everyday low pricing and promotional pricing; for retailers, promotions may

increase sales of complementary categories (cake mix promotions may drive frosting

sales) as well as induce store switching. They promote greater consumer awareness of

prices. They help manufacturer sell more than normal at the list price and adapt

programs to different consumer segments. Service marketers also employ sales

promotions attract new customers and establish loyalty. Roger A. Stang (1976) indicates

that several factors contributed to rapid growth of sales promotion, particularly in

consumers markets.

Promotions have become more accepted by top management as an effective sales tool;

the number of brands has increased; competitors are using promotions frequently; many

brands are seen similar; consumers have become price oriented; trade is demanding moredeals from manufacturers; and advertising efficiency has declined.

consumer preference is a key ingredient in marketing campaigns, consists of a collection

of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of

particular products or services by consumers or the trade. Likewise, KusumAilawadi,

Karen Gendenk and Scott A. Neslin (1999), observe that sellers useincentive-type

promotions to attract new triers, to reward loyal customers, and to increase the

repurchase rates of occasional users. Sales promotions often attract brand switchers, who

are primarily looking for low price, good value, or premiums. If some of them would not

have otherwise tried the brand, promotion can yield long-term increases in market share.

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2.2 Research methodology

EXECUTIVE SUMMARY

The project studies were conducted at Reliance Fresh convenience store of Reliance

Retail situated at GandhiNagar Sec-21.

The Summary of the project is as follows:

Project title is Promotional Activities In Reliance Fresh of , GandhiNagar Sec-21.,

Research methodology is

Sampling plan :-

Non Probability (convenience)

Research design :-

Exploratory research.

Data collection method :-

Interrogation through personal interview.

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Objectives of the study :-

To study and analyse the promotional activities at reliance fresh

Gandhinagar

To study the most preferred promotional schemes by customers of reliance

fresh

To identify the impact of promotional schemes on shopping behavior

Limitation of the study: -

Thestudy was restricted to theoretical ground only so it was difficult to draw the true

interpretations of the study. It is also having the geographical limitation as the customers

of Gandhinagar zone were selected as respondent for the study.

The conclusion arrived at are based on vary less experience of researcher in this field.

Sampling plan :-

Non Probability (convenience)

Research design :-

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Exploratory research.

Data collection method :-

Interrogation through personal interview.

2.3 Data Analysis and Finding

Q1. Is Reliance fresh your first preference in comparison with other retail

competitors such as Big Bazaar, V Mart.. ?

Comparison with other retail competitor

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid yes 54 54.0 54.0 54.0

no 46 46.0 46.0 100.0

Total 100 100.0 100.0

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above chart we can analyse that 54 of the respondent said yes that Reliance fresh is

their first in comparision with other retail .And remaining 46 of the respondent said no

that Reliance fresh in comparision with other retail.

Q2. Do advertisement and promotion activities influence your shopping

decision?

Advertisement and promotion

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid yes 51 51.0 51.0 51.0no 49 49.0 49.0 100.0

Total 100 100.0 100.0

In the above chart 51 of the respondent said yes that reliance fresh in advertisement and

promotion of the retail. And remaining 49 of the respondent said no that reliance fresh in

promotion with other retail.

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Q3. From where do you come to know promotion activity of Reliance Fresh?

Promotion activity

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Sms 17 17.0 17.0 17.0

newspaper 47 47.0 47.0 64.0Pamphlets 36 36.0 36.0 100.0

Total 100 100.0 100.0

In above chart 17% of respondents are said sms on promotion activity for Reliance

fresh ,47% are respondent said newspaper, 36% of respondents are said on promotion

activity for Reliance fresh.

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Q4. Which promotional strategy offered by reliance fresh you prefer the most?

4.1 Discounts on MRP

promotionalstrategy1

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid highly

preferred49 49.0 49.0 49.0

least prefered 51 51.0 51.0 100.0

Total 100 100.0 100.0

In above chart 49% respondents are said highly prefered on promotion activity for

discount on MRP ,51% of respondents are said least preferred for discount on mrp.

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4.2 Buy one get one free


Frequency Percent

Valid

Percent

Cumulative

Percent

Valid highly

preffred49 49.0 49.0 49.0

least preffered 51 51.0 51.0 100.0Total 100 100.0 100.0

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In above chart 49% respondents are said highly preferred on promotion activity for

Buy one get one free ,51% of the respondents are said least preferred for buy one get one

free

4.3 Budhwa ki mandi


Frequency Percent

Valid

Percent

Cumulative

Percent

Valid highly

preferred

54 54.0 54.0 54.0

least preffered 46 46.0 46.0 100.0

Total 100 100.0 100.0

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In above chart 54% respondents are said highly preferred on promotion activity for

Budhwar ki mandi ,45% of the respondents are said least preferred for Budhwar ki

mandi

Q5. How you find in store promotion communication

Store promotion communication

Frequency Percent

Valid

Percent

Cumulative

PercentValid very poor 11 11.0 11.0 11.0

Poor 31 31.0 31.0 42.0

Good 36 36.0 36.0 78.0

very good 22 22.0 22.0 100.0

Total 100 100.0 100.0

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chart 11% respondents are said very poor store promotion communication ,respondents

are poor 31% respondents are need to 22% of store promotion communication

Q6. Are you aware about Point Card System of Reliance Fresh?

Point Card System

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid yes 54 54.0 54.0 54.0

no 46 46.0 46.0 100.0Total 100 100.0 100.0

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In above chart 54% respondents are said yes for point card system,46% respondents

are no point card system.

Q7. If yes than how did you find the system?

The system

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Good 11 11.0 11.0 11.0

Fair 29 29.0 29.0 40.0

Poor 33 33.0 33.0 73.0

need to

improvement27 27.0 27.0 100.0

Total 100 100.0 100.0

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In above chart 11% respondents are said good system, 29% respondents are fair system

33% respondents are poor, 27% respondents are need to improveme

Q8. How does u compare Reliance fresh with big Bazaar

Compare Reliance fresh with big Bazaar

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Price factor 19 19.0 19.0 19.0

Availability of

products 46 46.0 46.0 65.0

Customer service 35 35.0 35.0 100.0

Total 100 100.0 100.0

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In above chart 19% respondents are said price factor of reliance fresh same with big

bazaar and 46% respondents are said product available and 35% respondents are said

good service provide compare to big bazaar.

Q9. What segment of product do you preferbuying from Reliance fresh Stores?

9.1 Food and bakery

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid highlyprefred 53 53.0 53.0 53.0

leastprefered 47 47.0 47.0 100.0

Total 100 100.0 100.0

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In above chart 53% respondents are said high preferred ,47% respondents are least

prefered

9.2 Fruits and Vegetables

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid higlyprefered 43 43.0 43.0 43.0


Total 100 100.0 100.0

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In above chart 43% respondents are said high preferred for fuits and vegitables and

57% respondents are said leastpreffred.

9.3 Dairy Products

Frequency Percent

Valid

Percent

Cumulative

Percent



Total 100 100.0 100.0

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In above chart 51% respondents are said high prefferd for daily product and 49%

respondents are least preffred for daily product.

9.4 Toiletries and cosmetics

Frequency Percent

Valid

Percent

Cumulative

Percent



Total 100 100.0 100.0

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above chart 45% respondents are highly preffred for Toiletries and cosmetics

and 55% respondents are least preffred for Toiletries and cosmetics.

9.5 Health Care

preferbuying5

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Highlyprefere

d41 41.0 41.0 41.0

Leastprefered 59 59.0 59.0 100.0Total 100 100.0 100.0

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In above chart 41% respondents are highly preffred for health care

And 59% respondents are least preffred for health care products.

9.6 Processed food

Frequency Percent

Valid

Percent

Cumulative

Percent



Total 100 100.0 100.0

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In above chart 45% respondents are highly preffred for processed food

And 55% respondents are least preffred for processed food.

9.7 Beverages

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Highlyprefere

d52 52.0 52.0 52.0

Leastprefred 48 48.0 48.0 100.0

Total 100 100.0 100.0

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In above chart 52% respondents are highly preferred for beverages

And 48% of respondents are least preferred

9.8 Herbs & Spices

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Highlyprefere

d

52 52.0 52.0 52.0

Leastprefered 48 48.0 48.0 100.0

Total 100 100.0 100.0

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In above chart 52 % respondents are highly proffered for Herbs & Spices

48% respondents are least preffred for Herbs & Spices.

9.9 Confectionaries

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Highlyprefere

d52 52.0 52.0 52.0


Total 100 100.0 100.0

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In above chart 52 % respondents are highly preffred for Confectionaries and 48%

respondents are least preffred for Confectionaries.

Q10. As compared to other shops, what do you think of the pricing of the

products of Reliance fresh?

Pricing of the products

Frequency Percent

Valid

Percent

Cumulative

PercentValid Low 11 11.0 11.0 11.0

High 29 29.0 29.0 40.0

almostsame 33 33.0 33.0 73.0

Veryhigh 27 27.0 27.0 100.0

Total 100 100.0 100.0

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In above chart 12% respondents are said 10 minits taken for the

billing.

Q12 How frequently do you visit Reliance Fresh?

Visit Reliance Fresh

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Once in a

week18 18.0 18.0 18.0

Twice in a

week 47 47.0 47.0 65.0

Once in a

month35 35.0 35.0 100.0

Total 100 100.0 100.0

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in above chart 43% of respondents are easy find the product and 57% of respondents are

not find the product.

Q14. Are you satisfied with the variety of products at Reliance fresh?

varietyofproducts

Frequency Percent Valid Percent Cumulative

Percent

Valid

yes 47 47.0 47.0 47.0

no 53 53.0 53.0 100.0

Total 100 100.0 100.0

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in above chart 47% respondents are satisfied with product and 53% respondents not

satisfied with product.

Q15. Is store provides sufficient quantity of promotional product?

quantityofpromoitionalproduct


Percent

Valid

yes 44 44.0 44.0 44.0

no 56 56.0 56.0 100.0

Total 100 100.0 100.0

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In above chart 44% respondents are said store provide sufficient quantity and 56%

respondents are said store not provide sufficient quantity.

Q16. How do you fell about the customerservice of Reliance Fresh?

Customerserviceofreliancefresh


Percent

Valid

good 20 20.0 20.0 20.0

verygood 46 46.0 46.0 66.0

excellent 34 34.0 34.0 100.0

Total 100 100.0 100.0

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In above chart 20% respondents are said good service provide reliance fresh ,46%

respondents said very good service provide and 34% respondents are said excellent

service provide.

17.age

gender


Percent

Valid

male 50 50.0 50.0 50.0

female 50 50.0 50.0 100.0

Total 100 100.0 100.0

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In above chart 50% respondents are male and 50% respondents are female.

18.Age

age


Percent

Valid

16-25 8 8.0 8.0 8.0

26-35 47 47.0 47.0 55.0

36-45 44 44.0 44.0 99.0

46-55 1 1.0 1.0 100.0

Total 100 100.0 100.0

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In above chart 8% respondens are comes under 16-25 ,47% respondents are comes under

26-35,44% respondents are comes under 36-45 and 1% respondent come under 46-55.

19.occupation

occupation


Percent

Valid

student 8 8.0 8.0 8.0

business 48 48.0 48.0 56.0

job 44 44.0 44.0 100.0

Total 100 100.0 100.0

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In above chart 8% respondents arestudents.48% respondents are doing business and

44% respondents doing job.

20.income

annualincome


Percent

Valid


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In above chart 6%respondents are comes under below 2 laces ,47%respondents comes

under 2 laces to 5 laces ,47% respondents are comes under 6laces to 10 laces.

2.4 CONCLUSIONS

Conclusions

There is always a gap analysis between Retailer & customer.

Customers are ready to buy even at same rate or more than as compared to

outside if we provide them a quality.

Customer has no time. They dont want to waste their time in selecting goodvegetables.

By analyzing the primary and secondary data it was identified that majority of

sales is from F&V category instead of mandi near to store only in the case when

quality is good. While for other categories some changes like introducing more

variety and keeping competitive prices can be done to increase their sales.

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2.5 SUGGESTIONS

Announcement for the Membership card should be there.

Effective utilization of storage space is possible.

Rigidity in following planogram should be avoided.

Possibility of Non-Food FMCG

Effective utilization of empty Shelves

Consistency in quality should be maintained.

Effective utilization of space should be done.

Sample of wheat and other staple items can be kept for better exposure.

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Announcement for the Membership card should be there.

2.6 BIBLIOGRAPHY

1) Kotler Philip, Marketing Management, New Delhi, Pearson Education Inc,

2006.

2) Kothari,C.R,Research Methodology methods and techniques, New Delhi, New

Age International (p) Ltd,1990.

3) List of SKUs

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3)

4) Websites:

- www.ril.com

- www.businessworldindia.com

- www.ORG-GFK.com

- www.india-reports.com

- www.wikipedia.org

- www.economictimes.indiatimes.com

2.7 QUESTIONNAIRE

SECTION - I

Q1. Is Reliance fresh your first preference in comparison with other retail

competitors such as Big Bazaar, V Mart?

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Yes No

Q2. Do advertisement and promotion activities influence your shopping

decision?

Yes No

Q3. From where do you come to know promotion activity of Reliance Fresh?

SMS Pamphlets

News Paper

Q4. Which promotional strategy offered by reliance fresh you prefer the most?

Highly Preferred Least Proffered

Discount on MRP 7 6 5 4 3 2 1

Buy one get one free 7 6 5 4 3 2 1

Budhwar ki mandi 7 6 5 4 3 2 1

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Q5. How you find in store promotion communication?

Very Poor

Poor

Good

Very Good

Q6. Are you aware about Point Card System of Reliance Fresh?

Yes No

Q7. If yes than how did you find the system?

Good Fair

Poor Needs improvement

Q8. How does u compare Reliance fresh with big Bazaar

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Price factor

Availability of products

Customer service

Q9. What segment of product do you prefer buying from Reliance fresh Stores?

Segment of product Highly Preferred Least Preferred

Food and bakery 7 6 5 4 3 2 1

Fruits and Vegetables 7 6 5 4 3 2 1

Dairy Products 7 6 5 4 3 2 1

Toiletries and cosmetics 7 6 5 4 3 2 1

Health Care 7 6 5 4 3 2 1

Processed food 7 6 5 4 3 2 1

Beverages 7 6 5 4 3 2 1

Herbs & Spices 7 6 5 4 3 2 1

Confectionaries 7 6 5 4 3 2 1

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10. As compared to other shops, what do you think of the pricing of the

products of Reliance fresh?

Low Almost Same.

High. Very high.

Q11. In your experience, how long is the time taken for the billing?

10 mints.

Q12. How frequently do you visit Reliance Fresh?

Once in a week

Twice in a week

Once in a month

Q13. Do u feel easy to find out the product?

Yes

No

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Q14. Are you satisfied with the variety of products at Reliance fresh?

Yes

No

Q15. Is store provides sufficient quantity of promotional product?

Yes

No

Q16. How do you fell about the customerservice of Reliance Fresh?

Good

Very good

Excellent

SECTION - II

1. What is your gender? Male Female

2. What age group do you belong to?

16-25 26-35 36-45

46-55 Over 55

3. What is your occupation?

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Student Business

Job Others

4. What is your total yearly annual income?

< 2 laces 2 laces to 5 laces

6 laces to 10 laces > 10 laces

Documents

Sanket Final Report