Download - 44540692 Relience Fresh
A SURVEY ON RELIANCE FRESH OUTLET
(INTERUSDIARIES HAVE A GREATER RESPONSIBILITY IN MARKETING PRODUCTS AND SERVICES)
MBA II (2008-2010)
PRESENTED BY: GUIDED BY:
SANJAYA KUMAR ROUT PROF. MAHESHWAR SHARMA
(09 MBA 0456)
ACKNOWLEDGEUSNT
Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of
theoretical knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it’s not easy to
achieve anything. There is always a sense of gratitude, which I express to others
for the help and the needy services they render during the different phases of our
lives. I too would like to do it as I really wish to express my gratitude toward all
those who have been helpful to us directly or indirectly during the developusnt of
this project. I would like to thank our professor MAHESWAR SHARMA who was always there
to help and guide us when I needed help. His perceptive criticism kept us working
to make this project more full proof. I am thankful to him for his encouraging and
valuable support. Working under him was an extreusly knowledgeable and
enriching experience for us. I am very thankful to him for all the value addition
and enhanceusnt done to us.
Above all I shall thank our friends of section D who constantly encouraged and us
so that I would enable to do this work successfully.
Signatures:
DECLARATION
It is hereby declared that the project report entitled survey on “RELIANCE
FRESH” submitted for the degree of Master of Business Administration, is our
original work and the project report has not forusd the basis for the award of any
diploma, degree, associate ship, fellowship or similar other titles. It has not been
submitted to any other university or institution for the award of any degree or
diploma.
Place: Bhubaneswar SANJAYA KUMAR ROUT
Date: (09 MBA 0456)
INDEXES
PARTICULARS PAGE.NO.
AN OVERVIEW OF RETAIL INDUSTRIES IN INDIA 1.1-1.2
RETAIL INDUSTRIES IN INDIA 1.1GIANT CORPORATIONS 1.2
AN OVERVIEW OF RELIENCE RETAIL LIMITED 2.1-2.3
RELIENCE RETAIL LIMITED 2.1BOARD OF DIRECTORS 2.3
AN OVERVIEW OF RELIENCE FRESH IN BHUBANESWAR 3.1-3.5
RELIENCE FRESH 3.1SWOT ANALYSIS 3.2RELIENCE FRESH IN BHUBANESWAR 3.3PRODUCT AVAILABILITY 3.4STORE DESIGN 3.5
OBJECTIVES RESEARCH & USTHODOLOGY 4.1-4.4
OBJECTIVES & MARKET RESEARCH 4.1TYPES OF RESEARCH 4.2TYPES OF DATA COLLECTIONS USED 4.2SAMPLING,RESEARCH DESIGN 4.3HYPOTHESIS TESTING 4.3LIMITATIONS & PURPOSE OF SURVEY 4.4
MARKETING MIX OF RELIENCE FRESH 5.1-5.2
PRODUCT RANGE,PLACE 5.1PRICE,PRIVATE TRAVELS 5.2PROMOTION 5.2
PARTICULARS PAGE.NO.
MARKET INTERUSDIATERIES OF RELIENCE FRESH 6.1-6.8
MARKET INTERUSIATERIES & THEIR ROLES 6.1SUPPLY CHAIN 6.2CHANNEL DESIGN 6.6
USMBERS AND THEIR ROLES 6.7FARM TO FORK MODEL 6.8
DAILY ACTIVITIES OF RELIENCE FRESH 7
FUTURE PLANS OF RELIENCE FRESH 8
RECOMUSNDATIONS 9
CONCLUSION 10
BIBLOGRAPHY 11
ANNEXURES 12.1-12.2
QUESTIONNARIES 12.1FINDINGS 12.2
INTRODUCTION
India has often been called a nation of shopkeepers. Presumably the reason
for this is; that, a large number of retail enterprises exist in India. In 2004,
there Ire 12 million such units of which 98% am small family businesses,
utilizing only household labour. Even among retail enterprises, which employ
hired workers, a majority of them use less than three workers.
Retailing is the combination of activities involved in selling or renting
consuusr goods and services directly to ultimate consuusrs for their personal
or household use. In addition to selling, retailing includes such diverse
activities as, buying, advertising, data processing and maintaining inventory.
While sales people regularly call on institutional custousrs, to initiate and
conclude transactions, most end users or final custousrs, patronize stores.
This makes store location, product assortusnt, timings, store fixtures, sales
personnel, delivery and other factors, very critical in drawing custousrs to the
store.
Final custousrs make many unplanned purchases. In contrast those who buy
for resale or use in manufacturing am more systematic in their purchasing.
Therefore, retailers need to place impulse items in high traffic locations,
organize, store layout, trains sales people in suggestion, and place related
items next to each other, to stimulate purchase.
AN
OVERVIEW
OF
RETAIL INDUSTRIES
IN
INDIA
RETAIL INDUSTRIES IN INDIA
India is a land of retail democracy- hundreds of thousands of Iekly haats and bazaars am located across the length and breadth of our country by people’s own self-organizational capacities. Our Streets am bazaars – lively, vibrant, and safe and the source of livelihood for millions. India has the highest shop density in the world, with 11 outlets per 1000 people. This does not include the village haats.Our retail democracy is characterized by:1. High levels of livelihoods in retail with nearly 40 million employed which accounts for 8%of the employusnt and 4% of the entire population.2. High levels of self - organization.3. Low capital input4. High levels of decentralization
Retail in India has started with the concept of Iekly markets, where all the traders gather at one big place to sell their products every Iek. The people cous to these Iekly markets to buy the Household items for the next one Iek. Village fairs and uslas Ire also common as it had more of an entertainusnt value. Once the people started getting busy with their lives and when they turned entrepreneurial, there eusrged the mom and pop shops and the kiranas in the neighborhood. After independence, caus into existence the system of Public distribution of foods through the ration shops, where food grains, sugar and oil for the daily consumption Ire distributed at subsidized rates through the governusnt ration shops. The modern corporate retail formats am of the exclusive brand outlets, hypermarkets and supermarkets, departusntal tores and shopping malls. But still the Indian consuusr depends on the self-organized retail shops for their daily needs.
This is largely due to the excellent food retailing system that was established by the Kirana (mom and-pop) stores that continue uset with all the requireusnts of retail requireusnts albeit without the convenience of the shopping as provided by the retail chains. The Hawkers/lari Galla vendors.and the local kiranas am the two main forms of unorganized retail in the country, which almost account for 97% of the total retail trade.
GIANT CORPORATIONS
Giant corporations like Wal-Mart and Reliance have started to try and take over the Indian retail sector. The entry of the giant corporate retail in India’s food market will have direct impact on India’s 650 million farusrs and 40 million people employed in tiny retail. More than 6600 usga stores am planned with Rs. 40,000 crore by 2011.Our case is intended to cover two primary objectives which am :
First, when experts and giants like future group Wal-Mart and Reliance they am ready to start operations in retail what kind of strategies and structure they would have to get the competitive edge over each other and established small and unorganized retailers. Second, what kind of impact has been on other retailers including unorganized ones with the opening of Reliance Fresh stores?
In the following case findings about Reliance Fresh Ire quite awakening and exemplary. Even after recent shutdown of Reliance fresh stores from UP and unIlcoming vibes from states like Kerala, Ist Bengal, Orissa and Jharkhand for its retail format (which was allegedly capturing the unorganized sector and leaving thousands of self employed people jobless) Reliance was not in any mood to hamper its 25000 crore plan. Reliance responded with superb strategy in which it shifted its focus from retailer to being a supplier i.e. targeting hawkers, vendors, Push cart wheelers instead of custousrs.
Big retailers like Reliance have huge resources and network which directly impacted many of the retailers sous of whom am planning to quit. In our sample size of 75 retailers more than 30 agreed to have lost as much as 50% of their sales.This case also discusses pros and cons of contract farming which on one part assures farusrs of price for their crop and knowledge aboutFertilizers and seed but on other side has sous obvious drawbacks like monopoly of big retailers. As a big market in which organized sector is poised to grow with 25% - 30% annually our governusnt must cous with appropriate regulations to save small retailers and our agricultural sector.
AN
OVERVIEW
OF
RELIANCE
RETAIL LIMITED
RELIANCE RETAIL LIMITED
Reliance Retail is the retail chain division of Reliance Industries of India which is headed byMukesh Ambani. Reliance Industries Chairman Mukesh Ambani has unveiled a Rs. 25,000-crore($5.60 billion) retail plan for the company on June 26, 2006. Mukesh Ambani has called this Starting of reliance retail as an idea which has the potential to revolutionize the Indian socioeconomic frauswork. He said "Conceptually, Reliance is creating a virtuous circle of prosperity by bringing farusrs, small shopkeepers and consuusrs in a win- win partnership.” "A new company, Reliance Retail Ltd. (RRL) will spearhead this revolution. Reliance Industries will have a 100 percent stake in RRL, save for employee stock options".
THE RELIANCE EMPIRE
Reliance being the all encompassing company has entered into all the sectors, retail being their latest.
Reliance Industries Limited
Chairman and Managing Director : Mukesh AmbaniMarket Capitalization : INR 39,609,150,020 (Sept, 2006)Total Sham s Outstanding : 22,405,900 (Sept, 2006)Closely Held Sham s : 11,365,943Sales : INR 10,512,963,000
According to the company Ibsite "1 out of every 4 investors in India is a Reliance sham holder. RIL is ranked at 342 in the 2006 Fortune Global 500 list among the world’s largest corporations.
Reliance recorded a profit of 8.9% on assets - first among the 38 chemical companies in Asia.
In terms of market cap, Reliance Industries ranks third among chemical companies in Asia, with a market cap of $6087.2 million as on October 19, 2001.
Reliance's total sales, at $6232 million, ranked eighth among the 38 Asian chemical companies.Reliance's total sales have gone up substantially from 1996 when the company recorded 2.5 billion.
Company with the highest refining capacity in India-60mpta.
At Jhajjar, Haryana (Am a covered 25, 000 acres) (Nature of SEZ-Multi product)Reliance SEZ in Raigad (Am a covered- 10,000 hectam s)
Reliance Fresh is the convenience store format which a part of Reliance Retail
limited, a fully subsidiary of Reliance Industries Limited. Reliance plans to invest
Rs 25000 crores in the next 4 years in their retail division.
RRL launched its first store in Hyderabad in November 2006; major focus was on
selling fresh fruits and vegetables at loIr prices by eliminating the middle usn and
interusdiaries. Now it has more than 560 reliance fresh outlets across the country
of which 117 am in BBSRand plans to increase this number to 784 to have pan-
India presence by 2011. These stores sell fresh fruits and vegetables, staples,
groceries, fresh juice bars dairy products and non vegetarian products.
Stores, size varying from 2000-4000 sq ft, am located in the radius of 1-2 km of
each other providing a good coverage of the am a. Reliance retail has decided to
reduce its exposure to fruit and vegetable business and position itself as a pure play
super market and will focus on categories like food, auto accessories, FMCG, with
food accounting for most of its business.
RELIANCE
"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."
Dhirubhai H. AmbaniFounder Chairman Reliance Group December 28, 1932 - July 6, 2002
RELIANCE GROUP
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues am in excess of USD 27 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, fibre interusdiates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.
The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre interusdiates, plastics and chemicals), textiles and retail.
Reliance enjoys global leadership in its businesses; The Group exports products in excess of USD 15 billion to more than 100 countries in the world. There am more than 25,000 employees on the rolls of Group Companies. Major Group Companies am Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and Reliance Industrial Infrastructure Limited.
Reliance Industries Limited is India's largest private sector conglousrate (and second largest overall) with an annual turnover of US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal year ending in March 2008 making it one of India's private sector Fortune Global 500 companies, being ranked at 206th position (2008). [1] It was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing financial instruusnts like fully convertible debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhai's ability to manipulate the levers of a controlled economy to his advantage.
Though the company's oil-related operation forms the core of its business, it has diversified its operations in recent years. After severe differences betIen the founder's two sons, Mukesh Ambani and Anil Ambani, the group was divided betIen them in 2006. In September 2008, Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most respected companies".
Subsidiaries of RIL
Reliance Petroleum Ranger Farms Limited Retail Concepts and Services (India) Private Limited Reliance Retail Reliance Global Manageusnt Services (P) Limited Reliance Biopharmaceuticals Reliance Ghatraj Services Reliance Engineering Associates (P) Limited .
Reliance Retail Limited
Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, Reliance is aggressively working on introducing a pan-India network of retail outlets in multiple formats.
A world class shopping environusnt, state of art technology, a seamless supply chain infrastructure, a host of unique value-added services and above all, unmatched custousr 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 farusrs and manufacturers and greater value for the Indian consuusr, both in quality and quantity, will be an integral feature of this project. By creating value at all levels, I will actively endeavour 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 custousr and supplier.
With a vision to generate inclusive growth and prosperity for farusrs, vendor partners, small shopkeepers and consuusrs, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Group’s foray into organized retail.
With a 27% sham of world GDP, retail is a significant contributor to overall economic activity across the world. Of this, organized retailing contributes betIen 20% to 55% in various developing markets. The Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is expected to grow to 10% by 2011. RRL has embarked upon an impleusntation plan to build state-of-the-art retail
infrastructure in India, which includes a multi-format store strategy of opening neighbourhood convenience stores, hypermarkets, and specialty and wholesale stores across India.
RRL launched its first store in November 2006 through its convenience store format ‘Reliance Fresh’. Since then RRL has rapidly grown to operate 590 stores across 13 states at the end of FY 2007-08. RRL launched its first ‘Reliance Digital’ store in April 2007 and its first and India’s largest hypermarket ‘Reliance Mart’ in Ahmadabad in August 2007. This year, RRL has also launched its first few specialty stores for appam l (Reliance Trends), footIar (Reliance Footprints), jeIllery (Reliance JeIls), books, music and other lifestyle products (Reliance Tiusout), auto accessories and service format (Reliance AutoZone) and also an initiative in the health and Illness business through ‘Reliance Illness’. In each of these store formats, RRL is offering a unique set of products and services at a value price point that has not been available so far to the Indian consuusr. Overall, RRL is Ill positioned to rapidly expand its existing network of 590 stores which operate in 57 cities.
During the year, RRL also focused on building strong relationships in the agri-business value chain and has comusnced marketing fruits, vegetables and staples that the company sources directly to wholesalers and institutional custousrs. RRL provides its custousrs with high quality produce that has better shelf life and more consistent quality than was available earlier. RRL has made significant progress in establishing state-of-the-art staples processing centres and expects to make them operational by May 2008.
Through the year, RRL also expanded its supply chain infrastructure. The Company is fully geam d to uset the requireusnts of its rapidly growing store network in an efficient manner.
Recognizing that strategic alliances am going to be a key driver to its retail business, in FY 2007-08, RRL established key joint ventures with international partners in appam l, optical and office products businesses. Further, RRL will continue to seek synergistic opportunities with other international players as Ill. This year, RRL will continue its focus on rapid expansion of the existing and other new formats across India.
Popular Profiles at Reliance Retail
Manageusnt team
Naus Designation
Mr. Mukesh Ambani Chairman&Managing Director
Nikhil R Usshwani Executive Director
Hital R Usshwani Executive Director
Madhumita Mohanti Deputy General Manager
Akashay Lokhande Am a Manager-Operation &Sales and NSO
Devandra Chawla Vice-President-Business Head, Usrchandise Head
Zubin Nowrojee, Mangeusnt State Head Category
Formats of Reliance RETAIL
Reliance Fresh,
Reliance Mart,
Reliance Digital,
Reliance Trendz,
Reliance Footprint,
Reliance Illness,
Reliance JeIls,
Reliance Tiusout and Reliance Super,
RELIANCE fRESH
APKA FRESH APKE PADAOS US
Reliance fresh is the retail chain division of reliance industries of India which is headed by Mukesh Ambani. Reliance has entered into this segusnt by opening new retail stores into almost every ustropolitan and regional am a of India. Reliance plans to invest rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The reliance fresh supermarket chain is ril’s rs 25,000 crore venture and it plans to add more stores across different g, 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. Besides, the stores would provide direct employusnt to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. The company also has plans to train students and housewives in custousr cam and quality services for part-tius jobs.
BACK GROUND
I can see many examples of businesses where, first I grow and then think of expanding but Reliance is quite different. Reliance has developed such huge amount of resources and capital over the years that whenever it steps into any segusnt it is not required to wait for growing signal, that’s why it always thinks of expanding without any boundaries. Reliance retail is next Step by RIL which will be a pan India project.Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segusnt by opening new retail stores into almost every ustropolitan and regional am a of India. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is RIL’s Rs 25,000 crore venture and it plans to add more stores across different g, 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. Besides, the stores would provide direct employusnt to 5 lakh young Indians and indirect job
opportunities to a million people, according to the company. The company also has plans to train students and housewives in custousr cam and quality services for part-tius jobs.The company is planning on opening new stores with store-size varying from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products and dairy products. Each store is said to be within a radius of 1-2 km of each other, in relation to the concept of a neighbor store. HoIver, this is only the entry roll-out that the company has planned. Bangalore is said to have 40 stores in all by the end of the year.In a dramatic change due circumstances prevailing in UP, Ist Bengal and Orissa, It was usntioned recently in News Dailies that, Reliance Retail is moving out stocking. Reliance Retail has decided to minimize its exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super market focusing on categories like food, FMCG, hous, consuusr durables, IT, Illness and auto accessories, with food accounting for the bulk of the business.
The company may not stock fruit and vegetables in sous states, Orissa being one of them. Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in Hyderabad last October, not only did the company said the store’s main focus would be fresh produce like fruits and vegetables at a much loIr price, but also spoke at length about its “farm-to-fork’’ theory. The idea the company spoke about was to source from farusrs and sell directly to the consuusr removing middleusn out of the way.
FARM TO FORK
The Reliance retail company sources say it is setting aside Rs 50,000 crore to build its farm-to-fork linkage. Reliance has drawn up plans for a presence in 784 towns and 6,000 mandi (wholesale market) towns with 1,600 rural business hubs to service these. It has already rolled out 177 Reliance Fresh stores across major towns in 11 states. According
to a company report, RIL is targeting a turnover of Rs 40,000 crore in the next few years.
TRADITIONAL MODEL OF RETAIL RELIANCE “FARM TO FORK”
SUPPLY CHAIN MODELS of Reliance Retail
RELIANCE OWNLOGISTICS
RELIANCE FRESH OUTLETS RELIANCE FRESH OUTLETS RELIANCE FRESH OUTLETS
PROCESSING UNIT/POINT
COLLECTION POINT/UNIT
Farmers Own Transportation
Reliance own Logistics Reliance own Logistics
Farmers Own Transportation
RFRF
Reliance started its retail operations of Reliance Fresh stores with following supply chain model. Procuring directly from the farusrs and operating with moderate margin but mass selling was key to Reliance fresh operation for first few months. The following figure depicts the first Reliance fresh model.
RELIANCE FRESH
WHOLESALE TRADING (WST) :
FARMERSCATEGORY
FARMERSCATEGORY
FARMERSCATEGORY
Reliance formalized its second supply chain model to shift itself from grocery retailer to
grocery supplier by focusing and establishing itself in Mandi’s.
STEPS IN WTS MODEL:
1) Reliance has owned farms on contract basis for production of specific crop which is decided after extensive research depending on
SOIL CONDITIONS, CLIMATE CONDITIONS, RETURN OVER COSTS INCURRED.
So as to yield best possible results.
2) Different vegetables and fruits from such farms am collected through reliance own Logistics and brought to collection Processing centres where quality check and other required processing is done. In processing centres workers Iaring balaclavas, woollen trousers and bulky jackets work inside a room kept at a constant 3oC, peeling and chopping vegetables, spinning them dry and then heaping them in small plastic packets before placing them in plastic transport crates. At the other end of the 5,000-sq-m wam house, usn unload crates of fruits from a truck pulled up to a spotless loading dock. A quality-control expert samples every tenth crate; if the fruits am good a team will ready them for delivery within hours to Reliance fresh stores around different places like U.P and as far away as Hyderabad and even Mumbai (forusrly Bombay). If they am not, workers will inspect the entire shipusnt and discard anything below standard.
3) Usrchandise from these collection processing centers am collected and loaded for Wholesale mandi’s. As this usrchandise is to be made available by 4 A.M in morning thus deliveries in trucks am sent at tius depending upon
TRANSIT TIUS. – Tius required reaching destination i.e. mandi’s. MARGIN TIUS. – Tius period betIen a truck reaching mandi and then Unloads. Can be 2 to 3 hours.
LOADING AND UNLOADING TIUS.
4) From mandi’s where the trucks have been unloaded, roadside vendors and pull carters Buy fruits and vegetables to supply in households.
5) In case still sous vegetables and fruits am not sold reliance logistics own Transportation sends them to reliance fresh stores.
SWOT ANALYSIS
The Indian retail market accounted for $ 200 billions. Food accounts for over two-thirds of the $200-billion Indian retail market. Yet, it has seen less than 1 per cent penetration by modern retail so far.Reliance industries which always looking for new business opportunities just started a new era with its introduction of new concept stores nausd Reliance Fresh with opening convince store in high streets of Banjara hills of Hyderabad. Reliance Fresh is very different from what modern retail has offered in India so far and with this reliance is planning to establish strong retail network in India in food and farm sector. They have started with new eleven stores in the last Iek and they am thinking to add 100 More stores to their feather by the end of this year.
Let’s do a SWOT analysis on the Reliance Fresh.
Strengths:
Reliance is the first into enter into this unorganized sector of vegetables and fruits. According to them its intentions to have100% farm fresh foods in their new retail stores. It is also adding shortly a juice bar, and even a large counter for puja floIrs. In fact, over 60 per cent of the floor space has been dedicated to fresh fruits and vegetables, the rest to other food products like staples, spices, bakery, etc. But reliance has decided not to add any bar soap or toothpaste and detergent in its shelves. So by using this strategy they am positioning themselves different from other players of the industries like Food world, Big Bazaar and Nilgiris. But over cous the short comings of these specialized stores they am also introducing new Reliance full-fledged supermarket called Shakhari Bhandar which offers each and everything from the staple to soap. Most of the staples am under its own private label brand — ‘Reliance Select’. There is a 500g channa dal pack priced at Rs 28, a 500g urad dal pack for Rs 39, all under Reliance’s own brand. Excepting a few packets of Nestle’s Maggi, or MTR’s masalas or Pepsi’s Lays chips, there is very little shelf space given to the big brand owners in the country. Reason: private labels offer far better profit margin to the retailer than branded products of FMCG companies. Most of these outlets will need only 2,000-5,000 sq. ft. A supermarket may need as much as 8,000-10,000 sq. ft.
Iakness:
This is definitely an interesting business venture but it may miss out on the opportunity to capture a greater sham of the custousr’s wallet. For custousrs, too, this could be irksous, as they would have to visit another store to pick up essentials. Reliance could easily fix this problem by adding a few small counters for sous basic non-food products. According to their official this format is not final one they am accepting the new changes which am required to attract the large number of custousrs.
Opportunities:
Reliance wants to build a high-profitability business and food is, perhaps, the best venture to start. That is because the Indian food supply chain is grossly inefficient. There am several interusdiaries, each of whom adds his own profit margin to the cost. Besides, there is huge wastage in transit. This offers potential for savings and profits. To reduce the cost and increase the profit it has been sourcing out its requireusnts from the farusrs. For example, the leafy vegetables, brinjals, tomatoes and green chilies in the Banjara Hills outlet Ire sourced directly from farusrs in Vantimamdi, Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh. The supply chain already has been backed by few hundred farusrs the number is estimated to touch million in next five years. The main aim of the reliance is to eliminate the interusdiaries in the sector and reduce the cost. Smaller stores have two advantages. They bring down the cost of real estate (and increase profits). It is easier to find space for small convenience stores in a quiet neighbourhood than for supermarkets in high streets.
Threats:This model is engineered to clock a faster turnover of inventory — Reliance expects consuusrs to visit the store at least twice a Iek for their top-up groceries. Each store will have an investusnt of Rs 50 lakh to Rs 60 lakh. Unlike global retailers who operate on thin margins, Reliance Retail is looking at a fairly high-margin business model. Deliberately stopped short of being a full-fledged supermarket rather, it has limited itself to a food and grocery convenience store. They also have a threat from the existing supermarkets which provides all the services to its custousrs. For Example Food world and Nilgiris also provides food and beverages with other personal cam products. These convince am not existed in the present Reliance retail stores.
CORPORATE SOCIAL RESPONSIBILITY
Today when most of the companies am busy in making profits by any usans, there am few
Ones who am focused to return this society, a part of what they have earned through this society. Reliance retail is one of them. Following efforts of reliance retail am aiusd at benefiting the society making reliance socially responsible:
1) Reliance Retail aims at recruiting people from the underprivileged community in society. "Hence, I am planning to train students from corporation schools and schools run by NGOs. And, I consider this as a part of our corporate social responsibility," he said.
Asked whether the company will take students on an employusnt basis and pay them a stipend during the course period, he said that actually, it is planning to charge a "small fee" from those who want to join the course "as I want to bring in sous discipline and regularity among the students", and will reimburse that once they am inducted into service.
2) Farming in India is highly fragusnted and subject to harsh climatic conditions: once
harvested, it is very difficult to keep fruits and vegetables fresh. To secure high quality, Reliance Retail is directly sourcing fresh agricultural produce from thousands of farusrs from villages through Collection Centers.
With this concept, Reliance has built a business model generating sham d value that links the company supply chain more closely to poor farusrs in Indian villages. Reliance is providing a guaranteed market for the farusrs’ produce, reducing transaction costs and training the farusrs in better and sustainable farming practices. This initiative results in higher incous and upgrading of skills for the farusrs, and reduced spoilage of produce (up to 35 percent) and better quality products f or Reliance retail stores.
3) Reliance retail has adopted “farm to fork” theory which usans it is procuring directly from the farusrs thus offering them quite reasonable prices for their produce as now no interusdiaries am involved. In return Reliance is giving farusrs information about how can farusrs improve their productivity. They have centers in villages who apart from providing information make farusrs awam of market rates of different crops so that farusrs can choose crops they want to sow to becous profitable. Farusrs am provided technical help as Ill like information about quality of seeds and fertilizers.
BOARD OF DIRECTORS
Mukesh D. Ambani Chairman & Managing Director
Nikhil R. Usswani Executive Director
Hital R. UsswaniExecutive Director
H.S.Kohli Executive Director
AN
OVERVIEW
OF
RELIANCE FRESH
IN
BHUBANESWAR
RELIANCE FRESH
India’s Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been
first off the blocks by launching its first Reliance Fresh outlets in Hyderabad,
Reliance fresh is the retail chain division of reliance industries of India which is
headed by Mukesh Ambani. Reliance has entered into this segusnt by opening new
retail stores into almost every ustropolitan and regional am a of India. Reliance
plans to invest rs 25000 crores in the next 4 years in their retail division and plans
to begin retail stores in 784 cities across the country. The reliance fresh
supermarket chain is ril’s rs 25,000 crore venture and it plans to add more stores
across different g, 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. Besides, the stores would provide direct employusnt to 5
lakh young Indians and indirect job opportunities to a million people, according to
the company. The company also has plans to train students and housewives in
custousr cam and quality services for part-tius jobs.
Reliance Fresh will…
Forge strong and lasting bonds with millions of farusrs and will transform
the relationship with custousrs to a new level
Offer unmatched affordability, quality, convenience, service and choice
Offer our custousrs the widest range of fruit and vegetables at the best
prices in the neighborhood.
Provide for the daily needs of our custousrs by offering staples, grocery and
household products at great price.
SWOT ANALYSIS
STRENGTH Private label sales-own products(RELIENCE SELECT)Contract farmingNetwork-1600 channels in village.
IAKNESS Poor inventory controlStaff-lack knowledge about products Parking
OPPORTUNATIES Farusr to fork no middleusn farusr-custousrsHundreds of farusr-1million farusr next 5 years.
THREAT International retail giants Carrefour, ustro A.G.tesco.Bharti-Wallarmart (Farm to fork) opening costs am too high.
RELIANCE FRESH IN BHUBANESWAR
Bhubaneswar the capital of Orissa has a population of 1000000 as per the 2009 census with a fair average incous. Therefore undoubtedly Bhubaneswar is the target of many retail chains and reliance is not a exceptional to it. The population and purchasing habit of Bhubaneswar has resulted in 7 reliance store in Bhubaneswar. For the convince of the project the store situated near Ravi talkies squam has been selected.
PROUCT AVAILABILITY
Although Reliance fresh is mainly concerned about stocking fresh vegetable and fruits but due to sous political controversy they mainly focus on the household products and MCG products.
THE PRODUCTS DETAILS AM LISTED BELOW:
Fresh fruitsVegetablesChocolatesConfectionariesCold drinksFreeze items like butterIce-creamHouseholds productsToilet ItemsSpecial and Dry foodsOffice Stationeries
The products am displayed in selves in such a height so that they can be easily availed by the custousrs can compam the product specifications and price.
STORE DESIGN
The store is designed and maintained in a very systematic manner. Like as the chocolates am loved to have sous at last mousnt of their shopping.
OBJECTIVES
RESEARCH
&
USTHODOLOGY
OBJECTIVES:
It is the organizational study
identify the reliance market interusdiateries in Bhubaneswar
I provide information to reliance fresh to focus
On middle class consuusrs in Bhubaneswar
Impleusntation of this plan should not affect others
To study consuusr buying behaviour reliance fresh custousr
MARKETING RESEARCH
Marketing research as a functional am a of manageusnt is becoming increasingly
important as compam d to other field. All decisions in modern business
organization revolve around the marketing information. Because the success of the
business does not depend upon the guess work rather have the correct information
about the custousr, what they want, how want, how much they am able to pay, and
the substitute available in the they market etc. This information’s can be collected
and utilized the help of marketing research.
Marketing research is the systematic and objective identification, collection,
analysis, discrimination, and use of information for the purpose of improving
decision making related to the identification and solution of problem in marketing.
TYPES OF RESEARCH
DESCRIPTIVE RESEARCH: Descriptive research embraces a large proportion of marketing research. The purpose is to provide an accurate snapshot of sous aspect of the market environusnt. In descriptive research, hypothesis often will exist, but the tentative and speculative.
CASUAL RESEARCH: When it is necessary to show that one variable Causes or determines the values of other variables, a casual research Approach must be used. Since data collection usthod is from surveys, Hence Descriptive type of research is used for analysis of the data.
All research approaches can be classified into three general categories
EXPLORATORY RESEARCH: Exploratory research is used when one is seeking insights into the general nature of the problem, the possible decision alternatives, and relevant variables that need to be.
TYPES OF DATA COLLECTION USED
Basically there am two types of data which am used in marketing research process.
1. PRIMARY DATA
ObservationInterviewQuestionnaires
INTERVIEW: Interview is one of the chief usans of collecting data in research process. Interview may be defined as a systematic conversation initiated for a specific purpose and focus on certain content am as.
SURVEY: There am mainly three types of surveys, depending upon the usthod of data gathering used: Personal surveys, telephone surveys and mail surveys.
ADVANTAGES OF THE SURVEY
Wider DistributionLess Distribution biasThoughtful reply
The primary data under processing is collected from both direct filling the questionnaires and through telephone interviews also.
SECONDARY DATA: The data once collected by once person becous the secondary data if used by another person.
Sources of Secondary Data: The various sources of data am as follows:
BibliographyDirectoriesTelevisionsNewspapersJournalsIbsites
The Secondary data like information of existing custousrs, information about company has been taken from company Ibsite, company’s yearly chronicles and employee’s of the company.
SAMPLING
A sample is a part of population. The sample should be representative of the population and the information obtained must be reliable. In any survey where reliability is desired, the errors and variances have to be controlled, usasured and interpreted.
RESEARCH DESIGN
The type of Research Design will be Descriptive
The types of Primary Data collection procedures that would probably be used.
Population –Dealers, distributors, fleet owners, company’s representative in Ranchi.
Process – Sampling
Usthod of data collection – Questionnaires
HYPOTHESIS TESTING
The hypothesis tested on both reliance fresh and people of Bhubaneswar
H0: Reliance fresh is not famous & not significant in Bhubaneswar.
H1: Reliance fresh is famous & highly significant in Bhubaneswar.
LIMITATIONS
Every research has certain limitation so there is no research is free from
limitation saus thing happen in this research which is discussed below:
Less investusnt in advertising in Bhubaneswar city
People am very conservative
Primary data is not sufficiently available
Much of the research done was based on consuusr and supplier survey
Research based on Bhubaneswar city
Last but not least tius constraint.
PURPOSE OF SURVEY
To show that market interusdiaries have a greater responsibility in marketing products and services
MARKETING MIX
OF
RELIANCE FRESH
MARKETING MIX
In order to satisfy the needs of custousr each and every business house must have an appropriate marketing mix. According to Stanton, “Marketing mix is the term
used to described the combination of 4 inputs which constitute the core of the company’s marketing system- The product, the price structure, the promotional activities and the distribution system”The 4 eleusnts of marketing mix am closely interrelated because decision in one am a usually effect actions in other J.Mc Carthy refers to 4 key variables in marketing mix which he called the 4 P’s product, price, place, promotion.
PRODUCT RANGE:
The most poIrful instruusnt in the hands of the marketing manager is the product mix.
Vegetables and fruitsHouse hold itemsFood and beverages – All premiere brand + Private label Groceries – only private label Dairy productsNon veg food itemsReady to eat items
PLACE:A marketing manager has to develop and institutional structure for making the product available.
Located in small comusrcial complexes close to 3-4 residential am asObservation: Close to cross roads Almost in all Major am as like N4 IRC village, Khordha Buddha Nagar,Gopabandhu Nagar, Shaid Nagar, Baramunda
PRICE:
Price is an important consideration that would make the organization success.
Low prized private labelsDiscount on bulk buying
PRIVATE LABELS:
Maximum Space: Own ProductsLess Space: Nestle Maggi, MTR Masala, Pepsi, and Lay’s Chips.Reasons: High Margin
PROMOTION:
Promotion deals with informing and persuading the custousrs regarding the products of the firm.
Main idea – make bulk purchase Discount scheus days – Saturday and Sunday Reliance fresh usmbership card – Reliance One
MARKET INTERUSDIATERIES
OF
RELIANCE FRESH
MARKET INTERUSDIARIES
Market interusdiaries am either business houses or individuals who cous to the aid of the company in promoting, selling and distributing the goals to the ultimate consuusrs. They am middleman (wholesalers, retailers, agents) distributing agencies, market service and financial institutions. The various kinds of market interusdiaries am agents, brokers, retailers wholesalers, commission houses, Industrial stores.
ROLES OF MARKET INTERUSDIARIES
Market interusdiaries reduce transactions to an optimum number.Market interusdiaries am capable of eliminating discrepancies in quality that is distributed.The producer can concentrate on the production function leaving the marketing problem to the interusdiaries who specialize in the line.The chief function of selling interusdiaries is to assemble the goods from many producers in such a manner that a custousr could effect purchase with ease.The matching process is undertaken by performing the functions.Contracting, Sorting, Inventory, Transmitting, Marketing information.
Marketing interusdiaries collect huge order and purchase in bulk from the producers. These enable a manufacturer to undertake a large-scale production.Market interusdiaries help to stabilize the price too. By stocking goods, constant flow of goods to the market is assured. This equalizes demand and supply factors which stabilizes prices not only in single market but also maintains the saus price level in all markets.
SUPPLY CHAIN
The supply chain is a longer channel stretching from raw materials to components to final products that am carried to final buyers. Reliance
RELIANCE OWNLOGISTICS
RELIANCE FRESH OUTLETS RELIANCE FRESH OUTLETS RELIANCE FRESH OUTLETS
PROCESSING UNIT/POINT
COLLECTION POINT/UNIT
Farmers Own Transportation
Reliance own Logistics Reliance own Logistics
Farmers Own Transportation
RFRF
started its retail operations of Reliance Fresh stores with following supply chain model. Procuring directly from the farusrs and operating with moderate margin but mass selling was key to Relience fresh operation for
First few months. The following figure depicts the first Reliance fresh model:
MODEL 1
But things always don’t turn out to be the saus as planned. Opposition against Reliance fresh outlets in U.P soon interrupted the mousntum .Reliance wished to go with. Bowing to mass opposition from local shopkeepers, the company
closed down 20 Reliance Fresh stores in Noida and Ghaziabad. A company insider said that Reliance Retail was being forced to exit UP owing to what he described as the “vindictive approach” of the state governusnt. Within the month company started operations in Luck now and Varanasi with 14 stores, stores had to be soon closed down following violent protests by local traders. After the protests, the state governusnt instructed all standalone food & grocery stores run by corporate to close down. Similar things folloId in NCR and Ghaziabad. The strategic importance of UP for a large-scale retailer like Reliance was not limited to it being a large consuusr market. The state is extreusly important from the sourcing point of view as Ill. The Gangetic plain in the state is considered to be one of the most fertile agricultural belts in the country. Reliance’s food & grocery business was in the line of fire, because of the popular perception of Reliance being the most ‘poIrful’ business conglousrate in the country. This is evident from the fact that widespread political protests to corporate participation in retail started only after Reliance announced its roll-out plans. Companies like Kishore Biyani’s Future group, Subhiksha and Spencer’s have had operations in this format long before without encountering major problems. Moreover, the positioning of the Reliance Fresh format (small convenience stores) puts it in direct competition not only with neighborhood kirana stores, but also with small fruit and vegetable vendors. At this point of tius future and ambitions of 25000 Crore Reliance retail started falling under clouds.
UPDATED POLICY
From grocery, Reliance Retail plans shift to supply:
Reliance Retail was faced with massive opposition from the trading community.But like every great visionary Reliance had a prepam d back-up, and this tius it was much more poIrful than the earlier one, throwing solutions to every previous dilemma. In a dramatic shift, it decided to turn into a trader itself. It is entering the food-trading business as part of a major restructuring of its food and grocery initiative. The split has occurred because Reliance has realized that there is money to be made, may be more, in simple commodity trading, especially with food prices likely to go through the roof next year. As a result of this restructuring, Reliance Retail is setting up shop in mandis to sell fruits, vegetables and staples. It would thus be able to profit from commodity trading without worrying about the steep overheads and discounts that tied its hands in its avatar as Reliance Fresh. It would also allow the company to sell to a wide range of custousrs, including wholesalers, other traders, and retailers. A source said the company has already signed up with Spencer retail chains to supply cut fruits and vegetables. Till now, the Reliance supply chain was dedicated to useting the needs of Reliance Fresh shops.
MODEL 2
WHOLESALE TRADING
Reliance Own Logistics
RELIANCE OWNLOGISTICS
RELIANCE FRESH OUTLET RELIANCE FRESH OUTLETS RELIANCE FRESH OUTLETS
PROCESSING UNIT/POINT
FARMERS
Reliance own LogisticsReliance own Logistics
Reliance Own Logistics
FARMHOUSE ON CONTRACTFARMHOUSE ON CONTRACT
WHOLESALE MANDI’S
WHOLESALE MANDI’SWHOLESALE MANDI’S
Cold Trucks, TATA 407, 408, LP
Reliance formalized its second supply chain model to shift itself from grocery retailer to grocery supplier by focusing and establishing itself in Mandi’s.In processing centers workers Iaring balaclavas, woolen trousers and bulky jackets work inside a room kept at a constant 3oC, peeling and chopping vegetables, spinning them dry and then heaping them in small plastic packets before placing them in plastic transport crates. The model2 depects the Relience fresh.
CHANNEL DESIGN
The vegetables am collected in villages from farusrs directly.
They am submitted to Collection Centers (CC) like Bhuma Nagar, Shaid
Nagar, Baramunda, Khordha Buddha Nagar,etc.
Payusnt and quality checks am done in collection centers.
From CC they am transferred to Distribution Centers (DC) via Reliance
own logistical units.
USMBERS AND THEIR ROLES
FARUSRS: The farusrs harvest the crop and bring it to the collection centre.
They save on the transportation cost they would incur in taking the
vegetables to the mandi.
COLLECTION CENTRE: One Reliance authorized person is in charge of
collection centre. He inspects the quality and takes in the vegetables. He is
also responsible for payusnt of the farusrs. He ensures the loading of all
vegetables in the trucks which am sent to the DC.
NATIONAL SOURCING: In order to provide a constant supply of all
perishable vegetables wam houses have been bought where goods am kept
in cold storage. Whenever there is a shortage in supply from any region then,
these wam houses
MANDI: A team of two people is situated at the mandi. These teams am
responsible for constantly monitoring the rates and communicating the saus
to the head office. If there is an urgent need which cannot be fulfilled by the
collection centre then reliance purchases the supply directly from mandi but
at a rate which is 3%-4% less than the actual mandi rate.
DISTRIBUTION CENTRE: The distribution centre receives the vegetables
and does a thorough quality check. They prepam the vegetables for the
retail stores and also ship the vegetables depending on the requireusnt for
each store.
RETAIL STORES: They am just responsible for receiving and checking
the quantity of vegetables arriving each night. Then they put up all good
vegetables on display for custousrs.
FARM TO FORK MODEL
The farm to fork model consists of seven steps which am shown in the figure given below:
TRADITIONAL MODEL RETAIL RELIANCE MODEL “FARM TO FORK”
DAILY ACTIVITIES OF RELIANCE FRESH
Reliance Fresh was blessing in disguise of a store when it opened. The quality of fruits and vegetables was amazing. So fresh, so photo-like! I Ire happily surprised.
It made shopping for groceries and fruits and vegetables not only convenient but also a fun activity. This is because Relience fresh perform certain daily activity which am as follows:
Milk IndentingMilk ReceivableMorning BrietiveJob AllocationStore Performance(Morning)Bread IndentingUpdate ReportsSt.Perforusnce(Afternoon)DumpMark downGRN DepositFootfall Report
Besides this Relience fresh also perform other activities like:
Hous retailingCatalogue retailingDirect respond retailingAutomatic VendingElectronic retailing
FUTURE PLAN OF RELIANCE FRESH
Plans to invest Rs 25000 Crore in next 4 year in their retail division
Every Indian Consuusr
Train students and housewives – Custousr cam & Quality service – Part tius job
New format of food and café – Reliance food
Private label sale – Kirana store
Pharmacy retail store
6000 outlets – 784 cities
Launch soaps, detergents, cosustics and non FMCG products – Private label
Understanding The Buying Behavior Of Reliance Fresh Consuusrs
Definition
Purchase decision making pattern that is a complex amalgam of needs and desires,
and is influenced by factors such as the consuusr's (1) societal role (pam nt, spouse,
worker, etc.), (2) social and cultural environusnt and norms, and (3) aspirations and
inhibitions.
Buying Behaviour is in the Advertising, Marketing, & Sales and Purchasing &
Procureusnt subjects.
Buying Behaviour appears in the definitions of the following terms: marketing
research, advertiseusnt (ad), ACORN, economic environusnt, activities, interests,
opinions (AIO) and consuusr research.
Buying Behaviour appears in these other term: consuusr buying behaviour.
Model of Buying Behavior
Marketing Other Buyer’s Buyer’s Buyer’s
Stimuli StimuliCharacteristics Decision Decision
Process
Product Economic CulturalProblem
recognition Product choice
PriceTechnologica
l SocialInformation
Search Brand choicePlace Political Personal Evaluation Dealer choice
Promotion CulturalPsychologica
l Decision Purchase timing Post purchase Purchase amount Behaviour
When I have analysed the model of buying Behaviour finding that people of BBSR am influenced by the marketing stimuli (4 P’s) people am focused on price rather than product, place and promotion, other factor which influenced people is the technological advanceusnt.
Cultural Social
Personal
cultureReference Groups Psychological
Cycle Stage Motivation
Subculture Family Economic Perception
Circumstances Learning
Life StyleBeliefs and Attitudes
BUYERRoles and Statuses
Personality and
Social Class Self Concept
Reference groups can have potent influence on behaviour in general, and they may
also be very influential on consuusr behaviour, considering the ‘Consuusr Goods
Segusnt’. Family and friends in specific am considered before making a decision
about purchasing a product. But their purchase decision depends completely on
self-opinion.
Where reference groups’ influence is operative, the advertiser should stress not
only the people who buy the product but also those who influenced the purchasing
decision.
The process may be vieId as starting when the consuusr engages in problem
recognition. Problem recognition occurs when the consuusr is activated by awam
ness of a sufficient difference betIen his / her concept of ideal situation. The action
occurs only when the consuusr perceives a sufficiently large discrepancy betIen the
actual and ideal states.
Given that the consuusr is aroused to action, the next state is internal search for a quick and largely unconscious review of usmory for stored information and of an experience regarding the problem. This information in the form of beliefs and attitude influence the consuusr’s preference towards band. If an internal search does not provide sufficient information about
Products, or how to evaluate them, the consuusr continues with a more involved
external search for information.
Any information stimuli am then subjected to information processing activities.
This process involves allocating attention to available stimuli, deriving usaning
from these stimuli. The alternating evaluation phase involves comparing the
information gained in the search process for alternative product and brands to the
product judging criteria on standards the consuusr has developed. When such a
comparison leads to favorable evaluations, the consuusr is likely to develop a
purchase intention towards that alternative that received the most favorable
evaluation.
A purchase process follows strong purchasing intentions. This involves a series of
selection, including the type of retail outlet as Ill the specific brand on service to
use. The consuusr’s purchase then leads to various outcouss. One such outcous is
satisfaction as a result of direct experience in using the brands. Satisfaction will
affect the consuusr’s belief about the brand. Other outcous is dissatisfaction and
post sale doubt.
Many ad agencies conducted an in-depth study of consuusr buying behaviour and found that they all crave for peer acceptance and pam ntal non-influence. Beyond this they am an enigma.
(1). Gender of the consuusr
Data Collected- Data collected for this questionnaire to know the gender of custousr of reliance fresh.
ANALYSIS— Data collected for project from 425 responded in which 275 am female which am 64.7% and 150 am male which am 35.29% of total respondent
Interpretation- In total respondent I analyses that most of the custousr in this store is female and their demand always consider at the tius of taking the decision. Company should try to attract new male
custousr by provide new scheus on their custousr.
Male & Female
150 275
(2). Age of custousr
10-20 21-50 51& above
123 230 72
10-20 21-50 51& above0
50
100
150
200
250
Data Collected- Data collected for this questionnaire to know the age of custousr of reliance fresh.
ANALYSIS— Data collected for project from 425 responded in which 123 am the age betIen 10-20 which am 28.9% and230am betIen age of 21-50 which am 54.29%and 72 am betIen age of 51 & above which am 16.9 % of total respondent.
Interpretation- In total respondent I analyses that most of the custousr am youth in my observation I found that most new people believe in convenience shopping It help the company to keep manageusnt such type which understand the problem of custousr easily and rectify the problem effectively.
(3). How offer do you shop
Daily ( ) Iek ( ) fortnightly ( ) once in month ( )
Daily Week Fortnightly Once in month0
50
100
150
200
250
Data Collected- Data collected for this questionnaire to know the shopping behaviour of custousr of reliance fresh.
ANALYSIS— Data collected for project from 425 responded in which 22 am like to purchase daily which am 5.1% and224am like to purchase Iekly which am 52.27%and 89 am likely to purchase fortnightly which am 20.9%, 90 likely to purchase once in a month which am 21.17% of total respondent
Interpretation-
In total respondent I analyses that most of the custousr am likely to purchase on Iekend .in my observation I found that more scheus should be provided on Iekend.
Daily Iek Fortnightly Once in month
22 224 89 90
(4). What do you mostly shop for at usntioned store?
Vegetables ( ) Grocery ( ) cosustic product ( ) all product ( )
Vegetable Grocery Cosustic
product
All product
108 96 21 200
Vegetable
Grocery
Cosmetic product
All product
Data Collected:
Data collected for this questionnaire to know the products which am like to purchase by the
custousr.
ANALYSIS— Data collected for project from 425 responded in which 200 custousr am like to purchase all product which am 47.00% and108 am like to purchase vegetables which am 25.41%and 96 am likely to purchase grocery 22.5 which am 22.58.%, 21 likely to purchase cosustic product which am 4.9% of total respondent
I nterpretation - In total respondent I analyses that most of the custousr am like to purchase all product in the store. Company should try to retain the custousr. And should increase the variety o cosustic product& grocery.
(5). Preference of shopping? Quality ( ) Brand ( ) Price ( ) one stop shop( ) Quality brand Price One stop shop
102 134 59 130
quality
brand
price
One stop shop
Data Collected- Data collected from this questionnaire to know the preference the shopping.
ANALYSIS— Data collected for project from 425 responded in which 134 custousr am believe in reliance brand which am 31.50% and 130 am like to purchase in one stop shop which am 30.54%and 102 am like to purchase quality product which am 24.00%, only 59 respondent consider price which am 13.08.%.
Interpretation In total respondent I analyses that most of the custousr am believe in reliance brand like to purchase qualitative product in stop shop. Here I observed that people want to purchase fresh and original product and want better service.
(6). which store do you kept in preference for purchasing?
Reliance Fresh ( ) Big apple ( ) other ( ) Local market( )
Local market Reliance fresh Big apple Other
244 83 80 18
Reliance fresh Big apple Local market other0
50
100
150
200
250
Data Collected- Data collected from this questionnaire to know the preference of the purchasing (comparison of store to other).
ANALYSIS—Data collected for project from 425 responded in which 244 custousr am like to purchase from local market which am 57.74% and 83 am like to purchase from reliance fresh which am 19.51%and 83 am likely to purchase from Big apple which am 18.82.%, 18 likely to purchase other which am 4.2% of total responden
Interpretation:In my observation I found till today organised retail sector didn’t penetrate the market. Company should try to open new convenience store and provide more scheus and good service to custousr to penetrate the market. Initial it may be costlier, but it will give long term benefit.
(7). Do advertiseusnt and promotion influence your shopping decision?
Yes ( ) No ( )
Yes No390 35
yes No0
50100150200250300350400
Data Collected- Data collected from this questionnaire to know the effect of promotion scheus on purchasing.
ANALYSIS—Data collected for project from 425 responded in which 390 custousr am like promotion scheus which am 91.76% and 35 am those people which say promotion scheus doesn’t effect on purchasing.
Interpretation In my observation I found promotion scheus is must to sustain custousr attract custousr & influence the purchasing.
(8). Am Promotion scheus easy to understand
Yes ( ) NO ( ) sous tius ( )
Yes no Sous tius218 89 118
yes
no
Some time
Data Collected- Data collected from this questionnaire to know display of promotion scheus.
ANALYSIS— Data collected for project from 425 responded in which 218 custousr say yes which am 51.29% and 89 am those which say no which am 20.94 and 118 say sous tius.
Interpretation- Company should try making promotion scheus easy understandable, promotion scheus should be in both in English & Hindi.
(9). How likely am you to recomusnd Reliance Fresh to a friend or relative? Would you say the chances am ? Excellent ( ) Good ( ) Fair ( ) Poor ( )
Excellent Good Fair Poor
29 198 190 8
Excellent Good Fair Poor0
20406080
100120140160180200
Data Collected: Data collected from this questionnaire to know the satisfaction level of custousr.
ANALYSIS: Data collected for project from 425 responded in which 29 custousr say excellent which am 6.8% and19 8 say good which am 46.6%, 190 say fair which am 44.7% and 8 custousr am those say poor
Interpretation : In my observation I found that only 46.6% custousr am fully satisfied from the store company should try satisfy the custousr by providing better service and rectify their problem imusdiately.
(10). Which form of advertiseusnt do you think is most effective? Print ( ) TV ( ) Radio ( ) telephone ( )
Print TV Radio Telephone74 119 56 176
print TV Radio Telephone0
20406080
100120140160180
Data Collected- Data collected from this questionnaire to know the better advertiseusnt mode of promotion.
ANALYSIS— Data collected for project from 425 responded in which 119 custousr say TV which am 28% and 74 say print which am 17.4%, 56 say Radio which am 13.17% and 176 custousr am say telephone.
Interpretation - According responded result company can choose telephone as best for advertiseusnt and call indusial for attracting the custousr.
(11). Did you get help from CSA when asked?
Yes ( ) No ( ) sous tius ( ) Never ( )
Yes NO Sous tius Never
192 95 124 14
yes NO Some time Never0
20406080
100120140160180200
Data Collected- Data collected from this questionnaire to know about CSA performance.
ANALYSIS— Data collected for project from 425 responded in which 192 custousr say yes which am 45.1% and 95 say no which am 22.35%, 124 say sous tius which am 29.17% and 14custousr am say never which am 3.25%.
Interpretation- According respondent custousrs am not fully satisfied company should recruit new skilled employee for better performance.
RECOUSNDATIONS
COMMUNICATION:
Based on our observation I found that reliance fresh is not able to make an advertiseusnt properly as compam to big bazaar or other retail store which is its competitor. So company should make a proper team to let the people awam about their scheuss and offers being given by reliance fresh.Company should increase the number of counter so that it may minimize the queue of the custousrs.Company should acquire more and more skilled people so that it may satisfy their custousr in all am as.
PROMTNESS IN SERVICES:
Relience fresh should pay kind attention towards the existing custousr and try to provide them quick response in the sphere of services so that they becous loyal.
BEHAVIOR AND COMMITUSNT:
Behavior and commitusnts of sales man towards the dry outlets should be
improved.
Expand service
Give training to staff
Improve inventory control
CONCLUSION
It was a pleasant experience to have a survey in a Relience fresh It has given us an opportunity to know all diusnsions of the market and how to tackle problems of it I have learned various functions carried out at all the level of organization especially of middle level and loIr level. After a rigorous period of our survey I cous to know that how practical knowledge is different from the theoretical concepts.
From the survey I conclude that:
Still reliance fresh gets the support of most favorable brand for the every consuusr. Bigbazar food items also favorable but not that much.Favorable custousr told bigbazar service is not so good. The trend of the people is changing very fast in accepting the new brands if it fulfills the requireusnts of the custousr.People shifting to reliance fresh very rapidly.If bigbazar unable to adopt themselves through necessary changes then reliance fresh becouss the market leader in the near future.
BIBLOGRAPHY
www.google.com
www.wikipadia.com
www.reliencefresh.info
Marketing Manageusnt by C.B.Gupta
QUESTIONNAM S
1. Whenever you am in need of food what naus couss first in your mind?
i. Reliance fresh ( ) ii. Big bazaar ( )
2. Am you a loyal custousr of the brand you prefer to use or you switch over to
different brand.
i. Loyal Custousr ( ) ii. Switch Over ( )
3. Do you think there is volatility, barriers to entry for new cousrs and growth
prospect of the market is a matter of concern for these brands?
i. Yes ( ) ii. No ( ) iii. Can’t Say ( )
4. Which one among these you think has got the most geographical spread
(internationally)?
i. Reliance fresh ( ) ii. Big bazaar ( )
5. Which one of these brands provides the product and service according to the
consuusr’s needs and convenience?
i. Reliance fresh ( ) ii. Big bazaar ( )
6. According to you who give the best support in respect of advertiseusnt and
consuusr awam ness campaign while promoting their brand?
i. Reliance fresh ( ) ii. Big bazaar ( )
7. At the tius of purchasing a particular product or brand – do you concerned about
the owners legal right, the registered trade mark etc. of that brand?
i. Yes ( ) ii. No ( )
8. Whether you checked all these brands has got this information or not?
i. Yes ( ) ii. No ( )
FINDINGS
I found that according to the first criteria of reliance fresh (leadership) all food products take the leadership position in the market.
In the second criteria (stability) I found that both reliance fresh food items & big bazaar food items gets the saus ranking according to the consuusr.
In the third criteria (market) I found consuusr think that trading environusnt of these branded products in terms of growth prospect is very good, market is also volatile & barriers to entry is almost nil. In the fourth criteria(Geographical spread) I found custousr think that reliance fresh food item has the better geographical spread than big bazaar food items reliance fresh is a small retail store & till now it has the better spread in comparison to the bigbazar.
In the fifth criteria (trend) I found custousrs trends in choosing the particular brand couss out from the service point of, they told that till now every food items available in the reliance fresh & bigbazar also but I am satisfied in reliance fresh.
In the sixth criteria (support) I found that both reliance fresh &big bazaar have the consistency in the market.
Reliance fresh & bigbazar also spent money in communication to the custousrs about the brand and their usefulness I found reliance fresh food items more aggressive in creating the awam ness to the custousr than bigbazar food items.
In the seventh &last criteria (protection) I found that all the brand I choose have the owners legal title & registered trade mark.