shariq s project relience retail

“Reliance-A Foray Into Retail”

By:

Shariq Abdullah.Galgotias College of Engineering & Technology.Gr. Noida. U.P

A project report submitted in fulfillment for the requirements for Master of Business Administration.

To,

Reliance Industries Limited.

Under the guidance of :

Corporate Guide: Faculty Guide: Mr. Amit Varma Dr. Dinesh Sharma Sr. Manager, Operations. Head of Department. Hyper Markets.Mr. Manish Khanna Miss. Shruti Aggrawal. Manager, Hyper Markets. MBA Faculty.

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UNDERTAKING

“Reliance-A Foray Into Retail”

I hereby declare that this report is a sincere output of my work with the only objective to learn and explore the territory of Retail in Reliance a very famous and respected company. The sources of information have been both primary & secondary sources and have been marked with their sources for authentication of the material. This project is original and has not been submitted elsewhere.

Date: Place: New Delhi

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ACKNOWLEDGEMENT

A project is never the work of an individual. It is moreover a combination of ideas, suggestions, review, contribution & work involving many folks. It would not have been completed without the guidelines.

The present work is an effort to throw light on Retail in Reliance and also what aspects are dealt with while opening of a Hyper Market. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.

With the deep sense of gratitude i acknowledge the encouragement and guidance received from Mr. Amit.Varma (Sr. Manager, Operations, Hyper Market) and also Mr. Manish Khanna (Manager, Hyper Market) who were my project guide.

6 weeks training at RELIANCE RETAIL was an amazing experience, as this training inculcated in me a great deal of confidence and enthusiasm, ability to work hard and perform in team and there by facing challenges in life.

Shariq Abdullah.MBA-IVth Semester.Galgotias College of Engineering & Technology,Gr.Noida.

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TABLE OF CONTENTS

S.NO. TOPIC PAGE NO.

1. Reliance Group 05

2. Founder Chairman- A Tribute 06

3. Board of Directors 09

4. Board Composition 11

6. Growth through Governance 12

7. Products and Brands 13

9. Performance of the organization 17

10. Major Subsidiaries and Associates 28

11. Retail Industry: An Overview 29

12. Reliance Retail 45

13. Introduction of the Topic 49

14. Competitors Analysis 55

15. Aims & Objectives 64

16. Research Methodology 65

17. Data Analysis and Interpretation 66

18. Summary of Findings 82

19. Conclusion 83

20. Suggestion 84

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21. References 85

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 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.

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.

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FOUNDER CHAIRMAN-A TRIBUTE

"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

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses.

He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and

learn to excel'.

The US$ 20 billion Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals.

The world, they say, steps aside for the man who knows where he is going

Our respected Chairman, Shri Dhirubhai Ambani was an exceptional human being and an outstanding leader. A man far ahead of his times, he epitomized the dauntless entrepreneurial spirit. He dared to dream on a scale unimaginable before in Indian

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industry. His life and achievements prove that backed by confidence, courage and conviction, man can achieve the 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.

Under Shri Dhirubhai Ambani's visionary leadership, the Reliance Group emerged as the largest business conglomerate in India, and carved out a distinct place for itself in the global pantheon of corporate giants. 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.

Shri Dhirubhai Ambani was not just firmly rooted in traditional Indian values, but was also the quintessentially modern man, the man of the new millennium. This was clearly reflected in his passion for mega-sized projects, the most advanced technology and the highest level of productivity. 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.

Prestigious awards and titles were conferred on him by national and international organizations. He was acclaimed as the top businessman of the twentieth century and lauded for his dynamic, pioneering and innovative genius. His success story fired the imagination of the younger generation of Indian entrepreneurs, business leaders and progressive companies. He was an icon for them, a role model to be emulated.

The number of revolutionary precedents set by Shri Dhirubhai Ambani are legion. His unique vision redefined the potential of the Indian corporate sector as he challenged conventional wisdom in several areas.

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.

And the investors never let him down. Shri Dhirubhai Ambani succeeded in creating an investor base of historic proportions for the Reliance Group. An unbreakable bond of implicit trust existed between him and the shareholders. They placed their savings in his care and he worked with unflinching sincerity to get them the best returns. He brought happiness and prosperity into the homes of millions of investors.

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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 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.

We are fortunate to have had a man of Shri Dhirubhai Ambani's stature in our midst. His sterling leadership qualities, remarkable foresight, uncompromising pursuit of excellence, humility, prodigious capacity to motivate and trust people will continue to guide and inspire future generations at Reliance. We are proud and privileged to inherit this invaluable legacy.

Truly, men like Shri Dhirubhai Ambani are rare. They come gifted with the power and the vision to change the destiny of nations, to alter the course of corporate history. They are the empire builders, the stuff that legends are made of. The legend called Shri Dhirubhai Ambani will never die. His spirit will live on forever.

Spirit of Shri Dhirubhai H. Ambani (Quotes)

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

"Think big, think fast, think ahead. Ideas are no one's monopoly."

"Our dreams have to be bigger. Our ambitions higher. Our commitment deeper. And our efforts greater. This is my dream for Reliance and for India."

"You do not require an invitation to make profits."

"If you work with determination and with perfection, success will follow."

"Pursue your goals even in the face of difficulties, and convert adversities into opportunities."

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BOARD OF DIRECTORS

"Between my past, the present and the future, there is one common factor: Relationship and Trust. This is the foundation of our growth."

Dhirubhai H. AmbaniFounder Chairman Reliance Group December 28, 1932 - July 6, 2002

Board of Directors of Reliance Industries Limited

Mukesh D. AmbaniChairman & Managing Director

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Nikhil R. Meswani Executive Director

Hital R. MeswaniExecutive Director

H.S.Kohli Executive Director

Ramniklal H. Ambani Mansingh L. Bhakta

Yogendra P. Trivedi Dr. D. V. Kapur

M. P. Modi S. Venkitaramanan

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Prof. Ashok Misra Prof. Dipak C Jain

BOARD COMPOSITION

The Company's policy is to maintain optimum combination of Executive and Non-Executive Directors. The Board consists of 12 Directors, out of which 7 are Independent Directors. Composition of the Board and category of Directors are as follows:

Promoter Director Mukesh D. Ambani Chairman & Managing Director

Executive Directors Nikhil R. Meswani

Hital R. MeswaniH.S.Kohli

Non-Executive,Non-Independent Director Ramniklal H. Ambani

Independent Directors Mansingh L. Bhakta Yogendra P. TrivediDr. D. V. Kapur M. P. Modi S. Venkitaramanan Prof. Ashok Misra Prof. Dipak C Jain

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GROWTH THROUGH GOVERNANCE

Reliance is in the forefront of implementation of Corporate Governance best practices.

Corporate Governance at Reliance is based on the following main principles:

Constitution of a Board of Directors of appropriate composition, size and commitment to discharge its responsibilities and duties.

Ensuring timely flow of information to the Board and its Committees to enable them discharge their functions effectively.

Independent verification and safeguarding integrity of the Company's financial reporting.

A sound system of risk management and internal control. Timely and balanced disclosure of all material information concerning the

Company to all its stakeholders. Transparency and accountability. Compliance with all the applicable laws and regulations. Fair and equitable treatment of all its stakeholders including employees,

customers, shareholders and investors.

PRODUCTS AND BRANDS

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The Company expanded into textiles in 1975. Since its initial public offering in 1977, the Company has expanded rapidly and integrated backwards into other industry sectors, most notably the production of petrochemicals and the refining of crude oil.

The Company now has operations that span from the exploration and production of oil and gas to the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals and synthetic textiles and fabrics.

The Company from time to time seeks to further diversify into other industries. In January 2006, the Company approved a plan to establish a retail business through a subsidiary Reliance Retail Limited that will operate, among other things, supermarkets, convenience stores and specialty stores across India. The Company approved initial expenditure of US$ 750 million to fund the initial stages of this plan.

The Company's subsidiary Reliance Infrastructure Ltd. is currently establishing infrastructure facilities such as roads and buildings for the proposed Special Economic Zone (SEZ) at Jamnagar, Gujarat.

The Company's major products and brands, from oil and gas to textiles are tightly integrated and benefit from synergies across the Company. Central to the Company's operations is its vertical backward integration strategy; raw materials such as PTA, MEG, ethylene, propylene and normal paraffin that were previously imported at a higher cost and subject to import duties are now sourced from within the Company. This has had a positive effect on the Company's operating margins and interest costs and decreased the Company's exposure to the cyclicality of markets and raw material prices. The Company believes that this strategy is also important in maintaining a domestic market leadership position in its major product lines and in providing a competitive advantage.

The Company's operations can be classified into three segments namely:

Petroleum Refining and Marketing business Petrochemicals business Others (including Crude Oil and Natural Gas Exploration & Production business.

The Company's refinery at Jamnagar is the third largest refinery at a single location in the world.

The Company is:

The world's largest producer of Polyester Fiber and Yarn 4th largest producer of Paraxylene (PX) 5th largest producer of Purified Terepthalic Acid (PTA)

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COMMITMENTS

We care about

QualityResearch & Development

Health, Safety & EnvironmentHuman Resource Development

Energy ConservationCorporate Citizenship

Reliance believes that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring.

The essence of these commitments is that each employee conducts the company's business with integrity, in compliance with applicable laws, and in a manner that excludes considerations of personal advantage.

We do not lose sight of these values under any circumstances, regardless of the goals we have to achieve. To us, the means are as important as the ends.

For Reliance…

Growth is care for good health

Reliance's occupational health centers carry out pre-employment and periodic medical checkups as well as other routine preventive services. Specialized tests like biological monitoring, health risk assessment studies and audits for exposure to various materials are also performed. Health education and awareness form an integral part of the health care programme at Reliance

Growth is care for safety

We believe that the safety of each employee is the responsibility of the individual as well as of the whole community of employees

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Growth is care for the environment

Reliance believes that a clean environment in and around the workplace fosters health and prosperity for the individual, the group and the larger community to which they belong. Environmental protection is an integral part of the planning, design, construction, operation and maintenance of all our projects.

Growth is conservation

At Reliance, energy conservation efforts seek to reduce the unit cost of fuels and to improve efficiencies in energy intensive processes.

Growth is betting on our people

Reliance builds with care a workplace that proactively fosters professional as well as personal growth. There is freedom to explore and learn; and there are opportunities that inspire initiative and intrinsic motivation. We believe that people must dream to achieve, that these dreams will drive the company's excellence in all its businesses. Reliance thinks, behaves, lives and thrives with a global mindset, encouraging every employee to reach his / her full potential by availing opportunities that arise across the group.

Growth is thinking beyond business

As corporate citizens, we invest in social infrastructure, believing strongly that our business strength fuels our social contributions. To this end, Reliance encourages, funds and develops numerous education, health, human capital and infrastructure initiatives. These initiatives are undertaken through partnerships with non-governmental organizations, corporates and trusts.

Quality

Six Sigma

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In the Six Sigma Excellence Awards 2005 contest held by Symbiosis Center for Management and Human Resource Development, Pune the Black Belt project of Patalganga on Instrument Spares Inventory Level won “Runner up” trophy under the manufacturing category.

E-Rose, a Six Sigma quarterly e-Journal released from Patalganga has helped to enhance the culture of six-sigma spread at the site.

A project from Hazira on reduction in naphtha loss in tank farm, won the Qualtech National award.

To promote the spirit of competition and to accelerate the six sigma culture in the group, an annual inter-site competition of six sigma projects was held for the first time in March 2006.

Quality Management

RIL continues to take quality improvement measures and strengthen quality management systems at all manufacturing locations.

Shell Global Services has conferred 42 Golden Certificates on cumulative basis to RIL's Jamnagar facility for excellence in reliability of product certification.

RIL's Glycol Division QA/QC laboratory at Kurkumbh was commissioned with state-of-the-art Laboratory Information Management System (LIMS).

RIL Jamnagar polymer laboratory was accredited by NABL for conforming to Quality Management System (QMS) as per ISO/IEC 17025.

Total Quality Management (TQM) was introduced at all sites. "Five S" programme was implemented complex-wide at all locations. Quality Loss Index (QLI), a statistical tool to enhance performance and

productivity was implemented in all the laboratories at all RIL locations. Occupational Health and Safety Assessment System (OHSAS) certification was

implemented at all RIL sites. The significance of OHSAS is to identify and eliminate all occupational health related concerns.

PERFORMANCE OF THE ORGANISATION

Reliance's commitment to excellence has won several national and international awards and accolades.

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2005 - 2006

Corporate Ranking

Our Chairman & Managing Director Shri Mukesh D. Ambani had the distinction and honour of being the co-chair at the World Economic Forum in Davos, Switzerland.

RIL is the only private sector company from India to feature in the Fortune Global 500 list of World's largest Corporation, for the second year in a row.

In terms of growth, RIL found place in the elite world's top 25 climbers in the Fortune Global 500 companies.

'Best Overall Company' at the Stevie Awards.

Health Safety and Environment (HSE)

CII 'National Award for Excellence in Water Management'. National Award for Research and Development Efforts in Industry.

'International Safety Award' presented by the British Safety Council, UK.

Energy Management

First Prize' from Petroleum Conservation Research Association. CII "National Award for Excellence in Energy Management - 2005". PCRA Energy Conservation Award for 2005, Ministry of Petroleum and Natural

Gas. CII Award for Excellence in Energy Management. ICMA Award for Excellence in Energy Conservation and Management. Certificate of Merit' in the Refinery Sector for the 'National Energy

Conservation Awards-2005' from Ministry of Power.

Oil and Gas Conservation Fortnight Award, Ministry of Petroleum and Natural Gas.

Quality

Silver' at the 20th International Team Excellence Competition organized by the American Society for Quality (ASQ).

Quality Circle Pragati PSF unit of Hazira won silver medal at International convention of Quality Circles in Singapore.

IMC Ramakrishna Bajaj National Quality Commendation Certificate.

Golden Appreciation from Shell for Quality Pacesetting under SMPCS, Shell Global Solutions, Netherlands.

Exports

Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) awards for

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exports.

Management Awards

Golden Peacock Innovation Award. 2005 ASTD BEST Award. IMC 'Super Brand Award'. Golden Jubilee Memorial Trust Excellence Award. Mahatma Gandhi Shram Sahyog Puraskar.

DSIR national award for R&D efforts in industry for Absorption / up gradation of imported technology.

Retail and Franchising Awards

Franchise Award 2005. o Innovative Retail Concept of the year - Special Award o Best Franchiser of the year Award - 2005 Star Award, Hall of Fame

across all categories Innovation and Technology in Franchising - (The Reid & Taylor Awards for

Retail excellence) at The India Retail Summit 2005 for its various innovations in Petroleum Retailing.

Retail Concept of the year for Reliance Truck Stops- Images Retail Awards at India Retail Forum 2005.

Major Milestones

2006

RIL commences the setting up of a new export-oriented refinery through its subsidiary, Reliance Petroleum Limited (RPL). The refinery will have a total atmospheric distillation capacity of approximately 580,000 barrels per stream day with a Nelson Complexity of 14.0 and an integrated polypropylene plant with a capacity of 0.9 Million TPA. The capital cost of the RPL project is estimated at Rs 27,000 crore (approximately US$ 6 billion). RPL completes its US$ 1.2 billion Initial Public Offering of equity shares which received an overwhelming response across different classes of investors.

Reliance's debt ratings from S&P and Moody's pierce India's sovereign ratings.

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Reliance becomes India's first private sector enterprise to cross US$2 billion profit mark.

2005

The Mumbai High Court, shareholders and creditors approve demerger proposal

2004

Reliance Industries Limited (RIL) emerged as the 'Petrochemicals Company of the Year' at the prestigious sixth annual Platts Global Energy Awards ceremony in New York, USA

The Board of Directors of Reliance Industries Limited approved the buyback of its fully paid up equity shares of Rs.10 each, at a price not exceeding Rs 570 per share, payable in cash, up to an aggregate amount not exceeding Rs 2,999 crore. This amount represents the limit of 10% of the total paid up equity share capital and free reserves of the Company as on March 31, 2004.

The European Commission approved the acquisition of the German specialty polyester manufacturer 'Trevira' by Reliance.

Reliance Industries emerged as the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of World's Largest Corporations.

Reliance announced it had struck gas off the Orissa Coast in the Bay of Bengal. RIL became the first private sector company in India to record a net profit of US

dollar of over 1 billion.

Reliance Associate, Sunbright, signed a Memorandum of Understanding (MoU) with National Organic Chemicals Industries Limited (NOCIL) to take over its Petrochemicals and Plastics Products Divisions.

2003

Reliance announces Strategic Alliance with Bongaigaon Refinery & Petrochemicals Ltd. (BRPL) to restart PSF manufacturing at BRPL.

Reliance Infocomm acquires FLAG Telecom, a multinational telecom company providing bandwidth through its undersea cable network comprising of over 50,000 kms of undersea fiber optic cable that spans four continents and connects the key regions of Asia, Europe, Middle East and the USA.

State-of-the-art Research and Technology Centre is inaugurated at Reliance's Patalganga complex to develop differentiated polyester products.

Reliance strikes oil in an onshore block in Yemen, where it has an equity oil position.

Reliance's refinery at Jamnagar was ranked best in Shell Benchmarking for the third consecutive year in 'Energy and Loss' performance from amongst 50 refineries worldwide.

Reliance dedicates 23rd January as Shareholder's Day on the occasion of 25 years of the company going public - A story of Relationship and Trust.

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BSES, one of the premier utility companies of the country, engaged in the generation, transmission and distribution of electricity becomes part of the Reliance Group and Mr. Anil D Ambani is appointed its Chairman.

2002

Reliance Infocomm to launch various telecom services on 28th December - beginning with Gujarat, the Infocomm revolution will cover thousands of villages and hundreds of cities across the country. Reliance Infocomm will become a major catalyst for changing the face of India and improving the quality of life of Indians.

Reliance announced India's biggest gas discovery in nearly three decades and one of the largest gas discoveries in the world during 2002. The in place volume of natural gas is in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels of crude oil. This is the first ever discovery by an Indian private sector company.

Reliance acquired control of Indian Petrochemicals Corporation Limited (IPCL) - India's second largest petrochemicals company.

Reliance signed MOU with DuPont Polyester Technologies to license the revolutionary resin technology NG-3 from DuPont. Reliance announced its plan for the expansion of PET capacity by 220,000 tonnes per year.

The merger of Reliance Petroleum Limited with Reliance Industries Limited was announced - largest ever merger in India - Reliance Industries became the largest private sector company in India on all major financial parameters including sales, profits, net worth, assets, and exports.

2001

Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest companies in terms of all major financial parameters

Dhirubhai Ambani was conferred The Economic Times Award for Corporate Excellence for Lifetime Achievement

1999-2000

Jamnagar Petrochemicals complex and bulk of integrated refinery complex commissioned comprising:

World's largest grassroots refinery India's largest port with capacity of 50 million tpa World's largest PX Plant of 1.4 million tpa World's largest PP plant of 0.6 million tpa Captive power plant of over 300 MW World-class product handling, storage, and despatch facilities

Reliance started commercial production of 27 million tpa refinery, the 5th

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largest in the world

1998

Dhirubhai Ambani was awarded the Dean's Medal by the Wharton School, University of Pennsylvania, USA, for setting an outstanding example of leadership.

Reliance completed phase-II expansion of Hazira Petrochemicals Complex including world's largest multifeed cracker, PET plant, MEG plant, PTA plant, PE plant

1996-1997

First corporate in Asia to issue 50 and 100 years bond in US debt market

Reliance became the first private sector company to be rated by international credit rating agencies. S&P rated BB+, stable outlook, constrained by the Sovereign Ceiling. Moody's rated Baa3, Investment grade, constrained by the Sovereign Ceilings.

1995

Net profit crossed the Rs 1,000 crore mark (Rs 1,065 crores or US$ 338 million), unparalleled in the Indian Private sector

1994

Reliance offered the second Euro issue of GDR

1993

Reliance Petroleum Limited public issue - India's largest public offering.

Reliance pioneered the first ever Euro Convertible Bond issue by an Indian company.

1992

Reliance raised funds by pioneering foray into overseas capital markets with first ever international GDR offering by an Indian corporate.

Reliance commenced the production of High Density Polyethylene (HDPE) at Hazira.

1991

Reliance commissioned phase-I of Hazira Petrochemicals Complex - consolidated its position in polyesters and entered into attractive polymers business - started VCM and PVC plants.

1988

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Reliance started the PX plant at Patalganga

1987

Reliance commenced the Linear Alkyl Benzene (LAB) plant at Patalganga

1986

Reliance started PTA plant at Patalganga.

Reliance commissioned Polyester Staple Fibre (PSF) plant at Patalganga.

1985

Reliance entered phase-II of the Polyester Filament Yarn (PFY) plant at Patalganga.

1982

Reliance launched phase-I of the Polyester Filament Yarn (PFY) plant at Patalganga.

1977

Reliance went public with IPO - Dhirubhai Ambani introduced equity cult in India, a new model of business leadership from a base of the broadest public shareholding.

Financial Milestones

2006

RIL places $300 million in US Private Placement Market. First ever Indian company to raise money through this route.

RIL declares Dividend of 100%. Payout of Rs 1,394 Crore, Highest In Private Sector.

RPL a subsidary of RIL completes its US$ 1.2 billion Initial Public Offering of equity shares with an overwhelming response across different classes of investors. Chevron to Purchase 5 % Stake in RPL for USD 300 Million. Option to Increase Stake to 29 %.

2005

Launches US $ 348 Million Syndicated Term Loan Facility. Aims To Replace Existing High Cost Loans.

Reliance Successfully Closes US$ 350 Million Multi Currency Term Loan.

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2004

Reliance signs EUR 116.2 million Export Credit Agency (ECA) backed Buyer's Credit Facility provided by Deutsche Bank. RIL avails an ECA cover for the first time in 22 years.

Reliance emerges as India's Greenest private sector company amongst the private sector with an overall rank of number two in a BT - ACNielsen ORG-MARG survey of shareholder perception published in Business Today's October issue.

Reliance Industries concludes re-pricing of USD 687.50 million Syndicated Term Loan facilities.

Reliance Group emerges as India's Largest Wealth Creator in the private sector for the Year 2003-04.

2003

RIL - First Indian private sector company to record net profit of over Rs 4,000 crore in one financial year.

2002

RIL - First Indian private sector company to record Net Profit of over Rs. 1,000 crores in one quarter.

Reliance among ten most creditworthy companies in Asia.

Reliance Completes Acquisition of IPCL.

2001

RPL raises USD 750 million syndicated loan - deal named capital market deal of the year by IFR Asia.

Group revenues cross Rs. 60,000 crore (Rs. 60,160 crores), Reliance becomes largest business group in India.

RIL and RPL become India's two largest companies in terms of all major financial parameters.

2000

Group profits cross Rs. 2,500 crore mark, Revenues cross Rs. 20,000 crore mark (Rs. 21,541 crores) and Total assets cross Rs. 50,000 crore (Rs. 52,094 crores).

1998

Total Assets cross Rs. 35,000 crore (Rs. 35,445 crore) and Revenues cross Rs. 14,000 crore (Rs. 14,115 crore).

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1997

First corporate in Asia to issue 50 and 100 years bond in US debt market.

1996

Reliance became the first private sector company to be rated by international credit rating agencies. S&P rated BB+, stable outlook, constrained by the Sovereign Ceiling. Moody's rated Baa3, Investment grade, constrained by the Sovereign Ceilings.

Net profit crossed the Rs.1,000 crore mark (Rs 1,065 crores or US$ 338 million), unparalleled in the Indian Private sector.

1994

Offered the second Euro issue of GDR.

1993

India's largest public offering - Reliance Petroleum Issue.

Offered the first Euro Convertible bond issue

1992

Set a record with Reliance Twin issues that received over 1 million investor applications.

Offered the first ever Euro Issue of Global Depository Receipts by an Indian company

1991

Reliance commissioned phase-I of Hazira Petrochemicals Complex - consolidated its position in polyesters and entered into attractive polymers business - started VCM and PVC plants.

1988

Sales cross Rs. 1,000 crores mark (Sales for the year Rs. 1,778 crores).

1987

Reliance commenced the Linear Alkyl Benzene (LAB) plant at Patalganga.

1986

Reliance started PTA plant at Patalganga.

Reliance commissioned Polyester Staple Fibre (PSF) plant at Patalganga.

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1985

Total Assets cross Rs. 1,000 crores.

First IPO to the Indian Public.

MAJOR SUBSIDIARIES & ASSOCIATES

RIL 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

Reliance Service Solutions Limited

Reliance Jamnagar Infrastructure Limited

Major Associates :

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Indian Petrochemicals Corporation Limited

Reliance Industrial Infrastructure Limited

Reliance Europe Limited

Retail Industry: An Overview

Retailing is emerging as a sunrise industry in India and is presently the largest employer

after agriculture. In the year 2004, the size of Indian organized retail industry was Rs

28,000 Crore, which was only 3% of the total retailing market. Retailing in its present

form started in the latter half of 20th Century in USA and Europe and today constitutes

20% of US GDP. It is the 3rd largest employer segment in USA. Organized retailing in

India is projected to grow at the rate of 25%-30% p.a. and is estimated to reach an

astounding Rs 1,00,000 Crore by 2010. The contribution of organized retail is expected to

rise from 3% to 9% by the end of the decade. The projection for the current year ie 2005

is Rs 35,000 Crore. In India it has been found out that the top 6 cities contribute for 66%

of total organized retailing. With the metros already been exploited, the focus has now

been shifted towards the tier-II cities**. The 'retail boom', 85% of which has so far been

concentrated in the metros is beginning to percolate down to these smaller cities and

towns. The contribution of these tier-II cities to total organized retailing sales is expected

to grow to 20-25%. In the year 2004, Rs 28,000 Crore organized retail industry had

Clothing, Textiles & fashion accessories as the highest contributor (39%), where as

health & beauty had a contribution of 2%. Food & Grocery contributed to 18% whereas

Pharma had a contribution of 2%.

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** Tier-II cities: Surat, Lucknow, Dehradun, Vijaywada, Bhopal, Indore, Bhubasehwar,

Varanasi to name a few.

Introduction

Retailing includes all activities involved in selling goods or services directly to final

consumers for personal, non-business use. A retailer or retail store is any business

enterprise whose sales volume comes primarily from retailing.

Any organization selling to final consumers – whether a manufacturer, wholesaler or

retailer- is doing retailing. It does not matter how the goods or services are sold (by

person, mail, telephone, vending machine or internet) or where they are sold (in store, on

the street, or in consumer's home).

There are 3 types of retailers:

1. Store retailer

2. Non Store retailer

3. Retail Organization

From the assortment point of view, Store retailers* are of 5 types:

1. Specialty Store

2. Departmental Store

27

3. Super market

4. Convenience Store

5. Discount Store

From customers service point of view:

1. Self-service retailing : Many customers are willing to carry out their own locate-

compare-select process to save money.

2. Self-selection retailing : Customers find their own goods, although they can ask

for assistance.

3. Limited service retailing : These retailers carry more shopping goods, and

customers need more information and assistance. The stores also offers services

such as credit & merchandise-return privileges.

4. Full service retailing : Salespeople are ready to assist in every phase of the

locate-compare-select process.

Although majority of goods & services is sold through stores, non-store retailing has been

growing much faster than store retailing.

Major Non-store retailer types:

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1. Direct Selling: It deals with door-to-door or at home sale parties i.e. it involves one-to-

one or one-to-many selling.

Example > Eureka Forbes, Amway, Mary Kay Cosmetics.

2. Automatic Vending: Example > ATM

3. Buying services: Is a store less retailer serving a specific clientele-usually employees

of large organizations-who are entitled to buy from a list of retailers who have agreed to

give them discounts in return for membership.

Example > Amazon.com

4. Direct marketing: It involves direct response marketing. The different forms of direct

marketing are: Direct mail, catalog marketing, telemarketing, television direct response

marketing and electronic shopping.

Example: Dell Computers

Retail Organization mainly falls into 4 major categories:

1. Corporate chains: Example > Pantaloons, Westside

2. Retail Co-operative: Example > Amul, Samavaika, Khadi Gram Yudog

3. Consumer Co-operative: Example > Apna Bazaar

4. Franchise Organization: Example > Monginis, Cafe Coffee day.

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Global Scenario

Retail stores constitute 20% of US GDP & is the 3 rd largest employer segment in

USA. China on the other hand has attracted several global retailers in recent times.

Retail sector employs 7% of the population in China. Major retailers like Wal-Mart &

Carrefour have already entered the Chinese market. In the year 2003, Wal-Mart &

Carrefour had sales of US $ 70.4 Crore & US $ 160 Crore respectively.

The global retail industry has traveled a long way from a small beginning to an

industry where the world wide retail sales is valued at $ 7 x 10 5 Crore. The top 200

retailers alone accounts for 30 % of the worldwide demand. Retail turnover in the EU

is approximately Euros 2,00,000 Crore and the sector average growth is showing an

upward pattern. The Asian economies (excluding Japan) are expected to grow at 6%

consistently till 2005-06.

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On the global Retail stage, little has remained same over the last decade. One of the

few similarities with today is that Wal-Mart was ranked the top retailer in the world

then & it still holds that distinction. Other than Wal-Mart's dominance, there's a little

about today's environment that looks like the mid-1990s. The global economy has

changed, consumer demand has shifted & retailers' operating systems today are

infused with far more technology than was the case six years ago.

Given below a list of World's top 15 retailers:

DT

Rank

04

Country of

Origin

Company name Formats 2003 retail

sales (US $

Crore)

1 US Wal-Mart Discount,

Hypermarket,

Supermarket,

Superstore,

Warehouse

25,632.9

2 France Carrefour Discount,

Hypermarket,

Supermarket,

Specialty,

7,979.6

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Convenience, Cash

& Carry

3 US Home Depot DIY 6,481.6

4 Germany Metro Hypermarket,

Superstore,

Specialty,

Convenience, Cash

& Carry,

Departmental, DIY,

Food Service

6,050.3

5 US Kroger Discount,

Convenience,

Supermarket, Super

center, Warehouse,

Specialty

5,379.1

6 UK Tesco Department,

Hypermarket,

Supermarket,

Superstore,

5,153.5

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Convenience

7 US Target Department,

Discount, Super

center

4,678.1

8 Netherlands Ahold Discount,

Hypermarket,

Supermarket,

Specialty,

Convenience, Cash

& Carry, Drug

4,458.4

9 US Costco Warehouse 4,169.3

10 Germany Aldi Einkauf Discount,

Supermarket

4,006.0 e

11 Germany Rewe Hypermarket,

Superstore, Super

market, Specialty,

Convenience, Cash

& Carry,

Departmental, DIY,

3,893.1e

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Food Service,

Discount, Drug

12 France Intermarche Superstore, Super

market, Specialty,

Convenience, Cash

& Carry, DIY, Food

Service, Discount

3,747.2e

13 US Sears Department, mail

order, Specialty

3,637.2

14 US Safeway, Inc. Supermarket 3,555.3

15 US Albertsons Convenience, Drug,

Supermarket

3,543.6

e= estimate.

Indian Scenario

Retailing in India is the largest employer after agriculture. It employs almost 7% of the

total work force in India and has a contribution of 14% to the national GDP. In the year

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2004 , the size of Indian organized retail industry was Rs 28000 Crore, which was only

3% of the total retailing market. Organized retailing is projected to grow at the rate of

25%-30% p.a. and is estimated to reach an astounding Rs 1,00,000 Crore by 2010. The

contribution of organized retail is expected to rise from 3% to 9% by the end of the

decade. The projection for the year 2005 is Rs 35000 Crore.

Though with a population of a billion and a middle class of 300 million (upper middle

class= 40, Middle class =150 & lower middle class = 110), organized retailing is still at

its infancy in India. The great Indian middle class is estimated to grow to over 60 Crore

by 2010 making India one of the largest consumer markets of the world. It is projected

that by the year 2010, 65% of the Indian population will be in the age group of 10-49

years, which makes the scenario even more attractive. India has the largest retail network

with 1.2 Crore outlets but only 4% of them are larger than 500 sq. feet in size. USA on

the other hand has 9 Lakh outlets catering to more than 13 times the total retail market

size of India. Thus India has the highest number of outlets per capita in the world with a

widely spread retail network but with the lowest per capita retail space (@ 2 sq.ft. per

person). AT Kearney has ranked India as the 2nd most attractive retail market after

Russia, in its Global Retail Development Index 2004 report.

Retailing, one of the largest sectors in the global economy, is going through a transition

phase in India. For a long time, the corner grocery store was the only choice available to

the consumer, especially in the urban areas. This is slowly giving way to international

formats of retailing.

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Let us look at the evolution process:

Detailing reasons why Indian organized retail is at the brink of revolution, the IMAGES-

KSA report says that the last few years have seen rapid transformation in many areas and

the setting of scalable and profitable retail models across categories. Indian consumers

are rapidly evolving and accepting modern formats overwhelmingly. Retail Space is no

more a constraint for growth. India is on the radar of Global Retailers and suppliers /

brands worldwide are willing to partner with retailers here. Further, large Indian

corporate groups like Tata, Reliance, Raheja, ITC, Bombay Dyeing, Murugappa &

Piramal Groups etc and also foreign investors and private equity players are firming up

plans to identify investment opportunities in the Indian retail sector. The quantum of

investments is likely to skyrocket as the inherent attractiveness of the segment lures more

and more investors to earn large profits. Investments into the sector are estimated at

INR 2000 - 2500 Crore in the next 2-3 years, and over INR 20,000 Crore by end of 2010.

Few of India's top retailers are:

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1. Big Bazaar-Pantaloons : Big Bazaar, a division of Pantaloon Retail (India) Ltd is

already India's biggest retailer. In the year 2003-04, it had revenue of Rs 658.31

crores & by 2010; it is targeting revenue of Rs 8,800 Crore.

2. Food World : Food World in India is an alliance between the RPG group in India

with Dairy Farm International of the Jardine Matheson Group.

3. Trinethra : It is a supermarket chain that has predominant presence in the

southern state of Andhra Pradesh. Their turnover was Rs 78.8 Crore for the year

2002-03.

4. Apna Bazaar : It is a Rs 140-crore consumer co-operative society with a

customer base of over 12 lakh, plans to cater to an upwardly mobile urban

population.

5. Margin Free : It is a Kerala based discount store, which is uniformly spread

across 240 Margin Free franchisees in Kerala, Tamil Nadu and Karnataka.

Wholesale trading is another area, which has potential for rapid growth. German giant

Metro AG and South African Shoprite Holdings have already made headway in this

segment by setting up stores selling merchandise on a wholesale basis in Bangalore and

Mumbai respectively. These new-format cash-and-carry stores attract large volumes from

a sizeable number of retailers who do not have to maintain relationships with multiple

suppliers for all their needs.

SWOT Analysis

37

A SWOT analysis of the Indian organized retail industry is presented below:

Strength:

1. Retailing is a " technology-intensive" industry. It is technology that will help the

organized retailers to score over the unorganized retailers. Successful organized

retailers today work closely with their vendors to predict consumer demand,

shorten lead times, reduce inventory holding and ultimately save cost. Example:

Wal-Mart pioneered the concept of building competitive advantage through

distribution & information systems in the retailing industry. They introduced

two innovative logistics techniques – cross-docking and EDI (electronic data

interchange).

2. On an average a super market stocks up to 5000 SKU's against a few hundreds

stocked with an average unorganized retailer.

Weakness

1. Less Conversion level : Despite high footfalls, the conversion ratio has been very

low in the retail outlets in a mall as compared to the standalone counter parts. It is

seen that actual conversions of footfall into sales for a mall outlet is

approximately 20-25%. On the other hand, a high street store of retail chain has

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an average conversion of about 50-60%. As a result, a stand-alone store has a ROI

(return on investment) of 25-30%; in contrast the retail majors are experiencing a

ROI of 8-10%.

2. Customer Loyalty: Retail chains are yet to settle down with the proper

merchandise mix for the mall outlets. Since the stand-alone outlets were

established long time back, so they have stabilized in terms of footfalls &

merchandise mix and thus have a higher customer loyalty base.

Opportunity

1. The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore

by 2010 making India one of the largest consumer markets of the world. The IMAGES-

KSA projections indicate that by 2015, India will have over 55 Crore people under the

age of 20 - reflecting the enormous opportunities possible in the kids and teens retailing

segment.

2. Organized retail is only 3% of the total retailing market in India. It is estimated to grow

at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2010.

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3. Percolating down : In India it has been found out that the top 6 cities contribute for

66% of total organized retailing. While the metros have already been exploited, the focus

has now been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far

been concentrated in the metros is beginning to percolate down to these smaller cities and

towns. The contribution of these tier-II cities to total organized retailing sales is expected

to grow to 20-25%.

4. Rural Retailing: India's huge rural population has caught the eye of the retailers

looking for new areas of growth. ITC launched India's first rural mall "Chaupal Saga"

offering a diverse range of products from FMCG to electronic goods to automobiles,

attempting to provide farmers a one-stop destination for all their needs." Hariyali Bazar"

is started by DCM Sriram group which provides farm related inputs & services. The

Godrej group has launched the concept of 'agri-stores' named "Adhaar" which offers

agricultural products such as fertilizers & animal feed along with the required knowledge

for effective use of the same to the farmers. Pepsi on the other hand is experimenting

with the farmers of Punjab for growing the right quality of tomato for its tomato purees &

pastes.

Threat

1. If the unorganized retailers are put together, they are parallel to a large supermarket

with no or little overheads, high degree of flexibility in merchandise, display, prices and

turnover.

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2. Shopping Culture: Shopping culture has not developed in India as yet. Even now

malls are just a place to hang around with family and friends and largely confined to

window-shopping.

Conclusion

To conclude, it can be said that though the global retail industry has reached its maturity,

the Indian retail industry is still at its infancy. But with the huge potentiality existing in

the Indian market, it is expected to grow in leaps and bounds in the near future.

Instead of comparing the total global retail industry with the Indian retail industry, lets

compare Wal-Mart alone with the Indian retail industry & put forward few interesting

facts:

1. Retail Sales of Wal-Mart for the year 2003 was US $ 25,632.9 Crore; higher than

the size of Indian retail industry.

2. The size of any Wal-Mart store is much higher than the size of any existing

shopping mall in India.

3. Wal-Mart has over 4,800 stores, which is unparallel to any of the India's large

format store.

4. New stores opened annually by Wal-Mart are about 420, much higher than all

organized Indian retailers put together.

5. The sales per hour of $2.2 Crore are incomparable to any retailer in the world.

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6. Wal-Mart has around 30,000 suppliers throughout the world and more than

600,000 SKU's on its web site, a number that cannot be compared.

7. Daily customers are about 1.57 Crore (almost equivalent to Mumbai's entire

population).

8. Time between each Barbie Sale at Wal-Mart is just two seconds (same rate at

which babies are produced in India!)

Overall, it can be said that " Retail Industry" in India will emerge as one of the best 5

Business sectors in this decade.

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RELIANCE RETAIL

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 company’s 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 next stop for Reliance Retail will be Ahmedabad, where the company will launch an outlet on December 28, the birthday of RIL founder Dhirubai Ambani. After that, it will move to West Bengal and Punjab, followed by simultaneous launches in Delhi and Mumbai. “These stores, ranging from 2,000 to 5,000 sq feet, will provide customers with a variety of fresh fruits, vegetables, staple foods and other products in a world-class ambience,” said Gunender Kapur, president, foods business, at the unveiling ceremony. 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. The air-conditioned stores recorded combined sales of Rs 22 lakh on the inaugural day itself. Reliance Fresh is selling vegetables and fruits sourced from farmers through the company’s agri hubs.

The cash & carry format, which pitches it in direct competition with German major Metro AG, had started operation, with no fanfaronade, at least a month before the launch of its first official format Reliance Fresh.Ranger farm whole sells fresh fruits and vegetables to push –cart vendors and other bulk customers .It is very different from what modern retail has offered in INDIA so far .Second, unlike global retailers who operate on thin margins, Reliance Retail is looking at afairly high margin business model .Reliance Retail is looking at a fairly high margin business model .Reliance Fresh is a unique format.It has deliberately stopped short of being a full fledged super market (a tried and tested model in India).Rather, it has limited itself to a food and grocery convenience store.Reliance fresh, stocks plenty of fresh merchandise –fruits ,vegetables a juice bar and even a large counter for puja flowers .In fact ,over 60 pecent of the floor space has been dedicated to fresh fruit and vegetables ,the rest to other food products like staples ,spices ,bakery ,etc.Other such as Big Bazaar and Spencer’s both big –box hyper markets ,and Subhiksha ,a discount store ,invariably stock a mixture of food products ,largely in a 50-50 mix .But Reliance Fresh is different .

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Reliance Retail is going after the very core of the great Indian Retail opportunity. Food accounts for over two third of the $200 billion Indian retail market.

Reliance wants to build a high profitability business and food is perhaps the best place to start. That is because the Indian food supply chain is grossly inefficient .There are several intermediaries ,each of whom adds his own profit margin to the cost .This offers potential for savings and profits.

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 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.

44

Reliance Retail can be divided into two Categories:

Reliance Fresh Reliance Hypermarket (upcoming project)

Reliance Fresh:

Reliance Fresh is a store which is like other middle size stores and has various categories of items including the fruits and vegetables and other perishable items like bread, butter etc. reliance fresh has been started in the month of march and till date the store count is 50+.

Reliance Hypermarket:

Reliance Hypermarket is the current upcoming project in Reliance Retail. This hypermarket means a huge store and has many categories of products. It aims to provide almost every merchandise under one roof with good service levels, quality & reasonable price.

The first Hyper Market of Reliance Retail called “Reliance Mart” is ready to go on stream in Ahmedabad by 15th August, 2007.

Occupying 2,50,000 square feet of space, 90,000 of which will be on ground floor itself, in the Iskon Mega Mall, on S.G. Highway of the city, the new large store format of the Retail arm of the group, expects to attract daily footfall of 10,000 persons on week days and 15,000 persons on week ends.

Reliance Mart would be offering 5,00,000 products (SKU’s) from 95 stocklines under 3,900 product categories. It will also unveil a number of private labels at the new hyper market. All products at the Mall would be offered at competitive prices.

45

The categories include the following:

Apparels Cosmetics Automotive Car Accessories Furnishing and Décor Stationery Books Music Fruits and Vegetables General Merchandise FMCG Bakery Confectionary Electronics Footwear

46

Hyper Market

In commerce, a Hypermarket or Multi-Department Store is a superstore which combines a supermarket and a department store. The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise. When they are planned, constructed, and executed correctly, a consumer can ideally satisfy all of his or her routine weekly shopping needs in one trip.

Hypermarkets, like other big-box stores, typically have business models focusing on high-volume, low-margin sales. Because of their large footprints — a typical Wal-Mart Supercenter covers 14,000 m² (150,000 square feet), a typical Carrefour 19,500 m² (210,000 square feet) — and the need for many shoppers to carry large quantities of goods, many hypermarkets choose suburban or out-of-town locations that are easily accessible by automobile.

The concept was pioneered by Hendrik Meijer in the US when he opened his first hypermarket, Meijer Thrifty Acres (now Meijer Stores), in Grand Rapids, Michigan in 1962.

In the 1980s and 1990s, the three major discount store chains in the United States—Wal-Mart, Kmart and Target—started developing discount stores in the hypermarket format.

Advantages of Hyper Market:

1. Comfort2. Choice3. Huge Variety of Products4. Quality5. Lowest Prices6. Shopping Ambience7. Good Service Levels8. Huge Savings9. Discount Retail10. Maintain Customer Data Base

47

INTRODUCTION

Topic: Competition Tracking & Catchment Analysis

In this project we have visited the stores of the competitors like:

Big Bazaar Spencer’s Shoppers Stop Lifestyle Westside Vishal Mega Mart Globus Home Town

In which we collected the data about the promotional schemes, discounts, presence of various brands and other promotional offers and also carried out a catchment study of the new hyper stores of reliance which are coming in Ahmadabad and also in Delhi and Ncr.

In the catchment Analysis we were told to go to the respected under construction sites of the reliance hyper stores and study the area in which the stores are about to open and also about the nearby societies and the apartments and on the basis of the following study we have to submit a PowerPoint presentation containing all the information like:

Name of the mall in which the store is about to come. The nearby competitive malls and the retail stores present in it. The nearby apartments, houses and societies with the number of families

living and also their status in terms of the apartment cost. The map of the store. Status of the catchment. Demographical factors like age, sex, income level etc.

48

It has many benefits such as:

It will tell whether it is feasible to open the retail business in that location.

It will tell all about the potential customers and if your business will thrive or fail.Different parts of the country have different populations and parts of the same town often have very different areas.

By understanding the types of people in the local market and the shape of your existing catchment areas you can avoid property in poor locations and maximize the performance of your existing outlets.

Competitive Analysis :

Examine the main competitors serving the same target market.

Describe direct competitors in terms of: o Target markets served o Product attributes o Pricing o Promotion o Distribution including the distributor network o Services offered

Discuss competitor’s strengths and weaknesses: o May need to consider much more than just marketing issues such as:

financial standing target market perception R & D capabilities

Discuss competitive trends:o May need to include discussion of future competitive threats

49

The role and benefits of competitive analysis

Competitive analysis, as the name implies, is an exploration of the companies in a given industry sector or market niche that are competing with your company’s products or services for market share. The analysis may be an in-depth exploration of the top five competitors, or a larger number of competitors could be examined (typically with less depth in the analysis). In most cases, the client will have identified the target competitors for you.

While this article focuses on competitive analysis in the for-profit arena, it is worth noting that non-profit organizations can benefit equally from this analysis (which they might term a comparative analysis, if they viewed the other organizations as working toward a common goal with them).

Understand the competitionThe primary benefits of any competitive analysis are a better understanding of what your competitors are doing, what they are offering to customers, and how to maintain your competitive advantage. The findings from this analysis are likely to factor strongly into your own company’s strategic planning. However, this is definitely not the only take-away from the process of analyzing competitors.

Build domain knowledgeanother benefit of competitive analysis involves expanding the knowledge base of those working on your website or web application. The analysis offers information about content and functionality that they have probably not considered. This is especially true for newcomers to your industry and should be fairly common; not everyone will be a subject matter expert. Looking longer-term, this educational process benefits not only the current project, but also any future project in that same industry.

Identify best practicesExploring competitor websites offers the opportunity to discover what is working well for them, as well as what is commonly being offered via the Web. For

50

example, if all the competitors are offering specific content and functionality, users will likely expect your site to offer similar content and functionality. If they

are absent, users may go to the competitor site instead. It is important to note that user expectations often go beyond just giving the information or offering the functionality, and move into questions of information design and interaction design. In other words, what is the quality of the user experience? Poor implementations are unlikely to result in higher conversion rates.

Expand the dialogue and the possibilitiesthe final benefit comes from expanded dialogue within the development team, and with other units in your company, about what competitive data means to your strategic direction. Such dialogue can open up new options that would not otherwise have been considered. Competitors may be taking various approaches to reaching the customer base, so multiple possibilities exist. In this situation, a completely novel approach might be best, since no standard is emerging.

Tips for Doing Competitive Analysis

For anyone trying to grow a business, one of the first tasks is to map the competitive landscape. With a good understanding of the competition facing your company, you'll be able to spot and exploit opportunities as they develop. These dozen points should help you draw and refine your map, beginning with your earliest efforts to plan your new venture and continuing for as long as you stay in business

. 1. Be a customer.

Bring a notepad and pencil to competing establishments and ask a lot of questions. Testing a firm's ability to serve you will reveal much about their business. And don't just pretend to shop from competitors. Buy something. It's the only way to gain first-hand experience with the company's products and services.

2. Find out as much as you can about the people who run competing businesses.

Where did they go to school? Where have they worked? How long have they been in the business? What are their strengths and weaknesses? This information can help

51

you anticipate your competition's moves. For example, a local, life-long farmer will run an Indiana seed company very differently than will a young MBA.

3. Buy stock in your competitors.

If you're competing against a publicly traded firm, consider buying a few shares of its stock. That way you'll receive regular updates on the firm's financial results and business strategies.

4. Talk to your competitors' customers.

Why do they buy from your competitors? Is it because of the quality of the product or service, the price, the location, or the customer support? What do they dislike about the company? What do they wish that company would provide? Why don't they buy from you?

5. Use the Internet.

Online services such as Dow Jones Interactive allow you to search through thousands of publications for information about your competitors, especially if they include large companies. Searches are free, but you'll have to pay a fee for articles on Dow Jones or for a monthly subscription. You also can learn a great deal about competing businesses simply by going to their Web sites. Check public filings.

As an entrepreneur, you already know that companies must disclose information to government agencies. Such disclosures are required to undertake public offerings, receive building permits, register for patents or trademarks and so on. Many of those filings are public record and contain information about the company's goals, strategies, and technologies.

6. Get to know local librarians. Many are virtuoso researchers and can save you a great deal of time and effort. Your library also will have local publications that may have information on competitors in your area.

7. Attend industry conferences and trade shows.

Your competitors' representatives will be pounding their chests about their firms' products or services. Take advantage of the opportunity to familiarize yourself with their product offerings and strategies, and how they sell themselves.

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8. Assess the competition's goals.

A competitor trying to increase its market share might lower prices; a firm attempting to increase profits may cut costs; and a business that wants to accelerate sales growth might kick off a marketing campaign. If you know your competitors' goals, you'll be better able to anticipate their strategies.

9. Be aware of the potential for new competition.

These days, the competitive landscape can change faster than Net-stock valuations. A national chain may not have entered your region yet — but what if it does? Likewise, companies that don't currently compete with yours might shift their focus and pit themselves against your firm.

10. Don't delegate the job of keeping up with competitors.

You might appoint someone to work with you on the task, doing research and the like. But as the entrepreneur, you're in the best position to appreciate and act upon information about your competitors.

11. Define the competitive landscape broadly.

Your competition includes anything that could draw customers away from your business. For example, movie theaters compete not only with other cinemas, but also with restaurants, live music venues, theater —l even cable TV, video rentals, and video games.

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COMPETITORS ANALYSIS

• Lifestyle

• Shoppers Stop

• Spencers

• Home Town

• Big Bazaar

• Vishal Mega Mart

• West side

Globus

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Swot Analysis of Westside

Strength :

Offers good value for money.

Service is good.

Branded merchandise.

Good quality merchandise.

Weakness:

Customer flow is less.

Absence of fresh products (F&V).

Absence of FMCG products.

Store range is less.

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Swot Analysis of Lifestyle

Strength :

Good customer flow.

Size of store is large.


Service is good.

Loyalty program is well strengthened.

Product range is good.

Weakness:



56

Swot Analysis of Shoppers Stop

Strength :





Service is good.

Loyalty program is well strengthened.

Weakness:



Low footfall.

57

Swot Analysis of Spencers

Strength:


Good Planogram.

Good quality and range of F&V.

Weakness:

Lack of branded apparels.

Service level is low.

Low footfall.

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Swot Analysis of Big Bazaar

Strength:

Good customer flow.

Rates are comparatively lower.


Special discount scheme.


Weakness:

Lack of brand in apparels.



No planogram.

59

Swot Analysis of Vishal Mega Mart

Strength:

Good customer flow.



Rates are comparatively lower.

Weakness:

Branded product range is less.


60

Swot Analysis of Globus

Strength :


Service is good.


Weakness:





Swot Analysis of Home Town

61

Strength :


Service is good.


Weakness:





Deals in only Electronics Goods.

AIMS AND OBJECTIVES

62

To understand how Retail in Reliance functions and also the various techniques used by Reliance.

To study the market or the catchment area of the place where the stores are about to open.

To carry out a competitive analysis so as to know the various promotional schemes, offers etc. the competitors were offering after every 2 weeks.

To understand the classes of the people who lives in the catchment area.

To analyse the spending power of the potential consumers.

To know about the local SKU’s which are available in the market.

To know about the pricing strategies which the existing retailers were providing.

RESEARCH METHODOLOGY

Every project requires genuine research. Success of any project and getting genuine results from

that depends upon the research method used by the researcher. Research in common parlance

63

refers to “search for knowledge”. One can also define research as a scientific and systematic

search for pertinent information on a specific problem.

This research project has a specified framework that guides collection and analysis of data

during the course of research.

Research Design

The research conducted was both observatory and descriptive in nature.The data was collected basically through a field survey using observation The research design employed was descriptive research as it was most suitable.

Data Sources:Data was collected both from the primary as well as secondary sources.

Primary Sources:The primary sources include the actual market study of the area in which the mall or the reliance store is expected to open. In the collection of primary data we actually visited the place where the mall or store is going to open and conducted a detailed primary study through face to face interactions and also by observing how things are being done and the areas which will include its customer base.

Secondary Sources:In order to meet and comply with the objectives all the details about Reliance was mainly collected from internet. Also to know about the area in which Reliance is opening the stores and also to study the catchment area of that place the information like history of the area, map of the area etc. was collected from internet.

DATA ANALYSIS AND INTERPRETATION

The actual data what we have collected for our project assigned to us is as follow,

1. Ansal Plaza, Greater Noida

64

Location map of the Store

Principle Catchment (Ansal Plaza, Greater Noida)

S.no Name of the Apartment Number of FlatsApprox. Distance From PARI CHOWK

1 NRI City 320 0.5 Km. T-1- Madison T-2- Cape Town T-3- Prince Town T-4- Kingston T-5- George Town T-6- Bridge Town T-7- Queen Town T-8- Green Ville

65

T-9- Florenz T-10- Royal retire T-11- Royal Carat T-12- Magnum 2 PUTTING GREEN CITY 48 T-1- Ok mount T-2- Lognenta T-3-Grand Sai T-4-Pabul Pitch T-5-Way Hill T-6- S.T.Andrews 3 Kachnar Estate 900 6 Km.4 Tata Steel Estate 144 4 Km.5 Gamma Sec1 1412 5.5 Km.

6 Gamma Sec2 1412 4.5 Km.7 Chakarsia Estate (Gamma -2) 250 4.5 Km.8 Pulmonary Estate (Gamma-2) 55 5 Km.9 Sigma Appartment (Alpha-1) 130 3.5 Km.10 Gharonda Apartment (Alpha-1) 60 3.5 Km.11 Arsh Apartment 104 3 Km.12 Millenium Apartment 62 2.5 Km.13 Nipco Co-operative Society 64 2 Km.14 Harmukh Apartment 112 2.5 Km.15 Chitvan Estate 2500 3 Km.16 Samvad Apartment 500 5 Km.17 Palm Court 295 5.8 Km.18 IRWO 100 6 Km.19 Parasvanath Edens (Omega-2) 214 5.2 Km.20 Chandani Estate 500 5.6 Km.21 Golf Garden 2000 9.2 Km.22 Golf Vista 800 9 Km.

23Parasvanath Estate under construction) Omega-1) 2000 7.2 Km.

24Senior Citizen Apartment (Omega-2) 800 8 Km.

25 Jal Vayu Apartment (Omega-2) 830 9 Km.26 Anand Ashray (Omega-2) 346 9.5 Km.

27Him Sagar Apartment (Omega-2) 250 10 Km.

28 AWHO(under construction) 3600 7 Km.29 V.L.Gold 105 7.5 Km.30 Engineers Park 300 8.7 Km.

66

31 Military Appart 240 9.4 Km.32 Gandharva Apartments 150 8 Km.33 Golf Links-I 195 1 km.

Segment (Ansal Plaza, Greater Noida)

2. D.T Mega Mall, Gurgaon

Location map of the store

67

Segment

A -68

B -25

C -7

0

10

20

30

40

50

60

70

80

Classes

Pe

rce

nta

ge

3. Crown Interiors, Mathura Road, Faridabad


68

DT MEGA MALL

METROP0LITAN 3.5 Km.

DT CITY CENTER 3.7Km.

SAHARA MALL 2.9 Km

MGF Mega City2.6 Km

Grand Mall 2.4 Km

BRISTOL HOTEL 400 m.

VLCC300 m.

GALLERIAComplex 2.5 Km.

Super Market 3.4 Km.

Center Plaza3.4 Km.

IFFCO CHOWK

DELHI –MEHRAULI RAOD

Towards sec-56

CrownInterior

Kanis

hka

Resid

ency

Sec

. 35

NHPC

Chowk

Sec.

31, F

arida

bad

To Agra

Anan

gpur

Villa

geSu

rajku

ndBadarpurBorder

200 m.300 m.500 m.

2.8 Kms.

Kanishka Towers

NHPC

Delhi Mathura Road NH-2

Mc Donald’s

Nirula’s

SSI’sSSI’sSSI’s

SSI’s

Green

Valley

NHPC Society

3.5 Km. from Store

5.5 Km from Store

1 Km. from store

1 Km. from store

SSI’s- Small Scale Industries

Principal Catchment ( Crown Interiors, Faridabad )

S. No Name of Society No. of Flats Approx. DistanceFrom Store

Segment

1 Kanishka Towers 198 1 Kms. A = 20%

69

B = 80%

2 Green Valley 800 3.5 Kms. A = 94%B = 06%

3 NHPC Apartments 400 5.5 Kms. B class

Total Number of Plotted Houses within the Range of 6 Kms.---------- Approx 9,000

B = 75%C = 25%

Segment ( Crown Interiors, Faridabad )

4. Star City, Mayur Vihar


70

Sec A – HH 25.1%Sec B – HH 21.6%Sec C – HH 19.2%Sec D – HH 16.7%Sec E – HH 17.2%

0

5

10

15

20

25

30

SEC A SEC B SEC C SEC D SEC E

SEC

% Series1

STAR CITY MALL

U.P LINK ROAD DELHI

GAZIPURROAD

CLUB

AVENUE

AVENUE

MERTO STATION

2KM

CHILLA VILLAGE COLONY

SADHBHAWNA MARGASHOK

NAGAR

0.1KM

HIGHWAY

INDIAN

OIL

CNGGAS

APARTMENT

APARTMENT’

Apartment

Apartment

Apartment

Apartment

ASN

SCHOOL

MAHARAJA

AGRASEN

COLLEGE

ACHARYA

NIIKETAN

APPARTMENT

TRILOKPURI

guruvayoorappantemple

District park

amityinternational

queenMaryschool

Phase-III6kmPhase-II

4 K.M

Principle Catchment ( Mayur Vihar, Phase I )

S.No NAME OF THE SOCITY No of the flats Approimate Distance From store

71

1 Punjabi Apartment 109 0.1 km

2 Vasant Apartment 89 0.1Km

3 Rose Apartment 84 0.1 Km

4 Samachar Apartment 250 0.1Km

5 Vardhman Apartment 110 0.1Km

6 Lovely Apartment 160 0.1Km

7 United Apartment 163 01Km

8 Vigyapan Apartment 80 0.1Km

9 Kriti Apartment 143 0.1Km

10 Glaxo Apartment 101 0.1Km

11 River View Apartment 98 0.1Km

12 Shekhar Apartment 105 0.1Km

13 Upkar Apartment 146 0.1Km

14 Sadar Apartment 112 0.1Km

15 Drona Apartment 85 0.1Km

16 Ashiana Apartment 160 0.1Km

17 Medha Apartment 180 0.1Km

18 Ocs Apartment 139 0.1Km

19 Nirman Apartment 130 0.1Km

20 Kala Apartment 85 0.1Km

21 Parwana Apartment 140 0.1Km

22 East Apartment 350 0.1Km

23 Naga Apartment 165 0.1Km

Principle Catchment ( Mayur Vihar, Phase II )

S.NoName Of The Apartments No. Of Flats ClassDistance From RR

1 Appaji Enclave Apartments 30 B 3.0k.m

72

2 Sri Sampora Apartments 30 B 3.0k.m

3 Prerna Apartments 40 B 3.0k.m

4 Sai Balaknath Apartments 20 A 3.0k.m

5 Sai Chalam Apartments 30 B 3.2k.m

6 Gayatri Apartments 40 B 3.2k.m

7 Nedumuri Mansion Apartments 40 A 3.2 k.m

8 Sai Residency 20 B 3.2 k.m

9 Trimula Venkatadri Apartments 25 B 3.2 k.m

10 Sipra Apartments 25 B 3.5k.m

11 Hardik Mansi 30 B 3.5k.m

12 Narayana Residency 30 B 3.5k.m

13 Gayatri Ganga Prasad Apartments 20 B 3.5k.m

14 Archies Classic 35 B 4.0k.m

15 Sai Amuratha residency 30 A 4.0k.m

16 Balaji Arcade 40 B 4.5k.m

17 Brahmaramba Apartments 15 B 4.7k.m

18 Vijaya Apartments 10 B 5.0k.m

19 Hema Shiva Apartments 40 B 5.0k.m

Principle Catchment ( Mayur Vihar, Phase III )

S.noName Of The Apartment No of Flats ClassDistance

From Store1 RR Residency 25 B 2.7k.m2 Vijaya Complex 50 A 2.7k.m3 Jaya Castle 20 B 2.7k.m4 Sai Seela 30 B 3.0k.m

73

5 Jayalakshmi 20 B 3.0k.m6 Dhramataru 30 B 3.0k.m7 Saket Apartment 20 A 3.2k.m8 Surya Paradise 25 B 3.2k.m9 Sivam Apartment 30 A 3.2k.m10 Kausulya Apartment 50 B 3.2k.m11 Srinivasa Sai Villa 15 B 3.5k.m12 Vasavi Height 50 B 3.5k.m13 Shirdi Sai Residency 25 B 3.5k.m14 Sonata 30 B 3.8k.m15 Hardhik Residency 25 A 3.8k.m

16 Drapvi Residency 30 A 3.8k.m

17 Mauya Towers 50 B 4.0k.m

18 Modern Towers 20 B 4.0k.m

19 J.N.Rao Residency 30 A 4,0k.m

20 Ashoka Amber Residency 30 B 4.0k.m

21 Sai Srinivasa Residency 30 B 4.5k.m

22 Arunaodhaya Apartments 30 B 4.5k.m

23 Achuthanandha Reddy Apartments 35 A 5.0k.m

24 Bhawans K.L. Rao Resudency 70 B 5.0k.m

25 Rohit Towers 30 B 5.0k.m

26 Krishna Nivas 40 A 5.0k.m

27 Jaganadha Residency 30 B 5.0k.m

Segment ( Star City, Mayur Vihar )

740

10

20

30

40

50

60

A Class. B Class C Class

5. U & I, Gurgaon, Sector-29.

75

U & I

Signature Tower HLL

HotelCrownPlaza

LemonTree Hotel

Kshitij Hotel

Bikanerwala

Pind Balluchi

Leisure Valley

NH-8 Fly Over

ParkingArea

50m

100m

80m

125m

50m

250m

800m.(approx)from thestore

IFFCO ChowkMehrauli Road

Open Land

Open Land

Open Land

Open Land Open Land

Open Land

Open Land

Principle Catchments ( U & I, Gurgaon )

• Sectors 29, 30, 31, 41-45, 55,56,57

• Sushant Lok Phase 1

• DLF City Phase 1,2, 4 & 5

• Sectors 15, 14 & 17 and South City 1

Principle Catchments ( U & I, Gurgaon )

76

Segment ( U & I, Gurgaon )

77

COMPETITION TRACKING

78

A

B

0

10

20

30

40

50

60

70

Class

Pe

rce

nta

ge

Series1 60 40

A B

S.No. Retailer Category Offer

1 Big Bazaar Apparel Buy Men's T-shirt above MRP Rs. 200 & get 2nd at Rs. 99.

2 Big Bazaar Apparel Buy Ladies Jeans above Rs. 399 & get 1 free.

3 Big Bazaar Food Buy Mango Dushehri at Rs.14.90 per kg

4 Big Bazaar Non Food Buy Homefoil Tray 450 mtr at RSs.40.

5 Big Bazaar GM Buy 1 Loose Steel Utensils & get 10% off & on purchase of 2 get 20% off.

6 Westside Apparel Buy Lee denim Jeans & get a Lee t-shirt free.

7 Westside ApparelBuy 2Fast4U denim worth Rs. 599 & get a voucher of Rs. 200 valid on 2Fast4U shirt.

8 Westside Apparel Buy SRC Ladies trouser worth Rs. 1000 & get a voucher of Rs. 200.

9 WestsideStore Offer Special discount of 20% for member on his birthday.

10 WestsideStore Offer

Buy product worth Rs. 2000 or pay Rs. 150 to become a member and gain redemption on purchases.

11Shoppers Stop Apparel

Buy Lee jeans worth Rs. 1500 & get t-shirt free & a Jansport bag worth Rs. 1100 on purchase of Rs. 3000.

12Shoppers Stop Apparel

Buy Wrangler jeans worth Rs. 1500 & get branded t-shirt & a branded watch on purchase of Rs. 2500.

13Shoppers Stop

ApparelBuy Provogue ladies wear worth Rs. 1599 & get a branded watch free.

14Shoppers Stop

ApparelBuy I-Jeans and Life garment worth Rs. 2199 & get 5 in 1 wireless head phone worth Rs. 999 free.

15Shoppers Stop

ApparelBuy Giny n Jony kids wear worth Rs. 2000 & get school bag free & on purchase of Rs. 3000 get a travel bag free.

16 Lifestyle Apparel Buy 2 get 1 free

17 Lifestyle GM Buy 20 pcs. Hangers for Rs.695 & 21 pcs. For Rs. 995.

18 Lifestyle Apparel Buy Red Tape shoes of Rs. 2295, 2195 & 1995 for Rs. 1195.

19 Lifestyle GMBuy BAGGIT Bags worth Rs. 1500 & get 5% discount & 10% discount on more than Rs. 1500.

20 Lifestyle GM Get 15% discount on double bed sheets & double comfortors.

21 Spencer's GM Get Rs.361/- Off On Panther Duffle Bag MRP Rs. 1400/- Offer Price Rs.1039/-

22 Spencer's GM Get Rs.201/- Off On 24 ps Cutlery Set MRP Rs. 550/- Offer Price Rs.349/-

23 Spencer's Non Food Buy 1 Get 1 Free Mistique Paper Napkin MRP Rs.21/-

24 Spencer's Non FoodBuy Full Range Of Maybelline Sultry Eyes & Get Water Shine Lip Diamonds Worth Rs.199/- Free

25 Spencer's GM Free Oil & Vinager Jar Worth Rs.290/- Kosoni Flask 1500ml: MRP Rs.900/-

26 Pantaloon GM Buy Ola jewellary worth Rs. 1500 get a silver chain worth Rs. 500 free

27 Pantaloon Apparel Bare Leisure offer buy 1 shirt for Rs. 599 & 2 shirts for Rs. 999

28 Pantaloon Apparel Buy Jockey worht Rs. 1000 get an attractive travelling bag free

29 Pantaloon Apparel Indigo Nation buy garments worth Rs. 2000 get a neck tie worth Rs. 499 free

30 PantaloonStore offer

Shop for Rs. 2500 or above get enrolled for Pantaloon Green Card and get a Gift voucher worth Rs. 150

31 GLOBUS Apparel Buy One Trouser And Get 50% Discount On Another One.

32 GLOBUS Apparel Buy One Formal Shirt And get 30% Discount on MRP.

33 GLOBUS Apparel Buy One Half Sleeves T-Shirt and Get 15% Discount on MRP.

34 GLOBUS Apparel Buy One Full Sleeves T-Shirt and Get 25% Discount on MRP.

35 GLOBUS Apparel Buy One Formal Shirt And get Upto 50% Discount on MRP.

INTERPRETATION

79

From the overall study of catchment analysis and competition tracking we interpret that in area like GURGAON and MAYUR VIHAR where the presence of organized retail like Big Bazaar, Vishal Mega Mart, Subhiksha, West Side, Lifestyle and Shopper Stop will certainly pose some challenges for the upcoming Reliance Hyper stores.

Whereas in areas like FARIDABAD and GREATER NOIDA where no such organized retail exists so it will be an huge opportunity to trap the potential market for the upcoming Reliance Hyper stores. This data is made keeping in view the current scenario of the market

The organized retail like Reliance Hyper Market will certainly pose huge challenges for the small kirana stores to survive in the market place because of its capacity to provide almost every merchandise under one roof at least possible price with good quality.

SUMMARY OF FINDINGS

80

While completing this project we came to certain important characteristics like consumer behaviour has changed to a great extent. Previously the major chunk of customers used to order their household products from the small kirana shops and the products were delivered to his / her doorsteps with free home delivery service where there was limited satisfaction but the products were received easily and for various other categories of products like Apparels, Furniture, Books, Music, Electronics, Kitchen Ware, Fruit & Vegetables he has to go to new stores which are specially for these items but with the coming of huge hyper stores like Reliance, Spencer’s, Big Bazaar, etc the consumer himself goes to the store where he gets all the products under one roof with maximum amount of satisfaction and hence can be said as one stop shop for all the needs of the consumers.

This new process increases the satisfaction level of the consumer and he himself chooses the product and is responsible for himself. The time involved in this process is huge enough as he has to visit the store himself but this time factor is not the deciding factor with these stores coming in the consumers experience best service as they get everything under one roof and also at affordable prices under good and soothing environment and other essential benefits.

While doing COMPETITION TRACKING we came to know about the various promotional offers, schemes etc which the organized retail outlets like Spencer’s, Big Bazaar, Westside, Lifestyle, Globus, Vishal Mega Mart, Shopper Stop etc which leads to increase their sales volume ,revenue, increase their customer footfall and converting the potential customers into the actual customers. This process was carried after every one week. This ultimately helps in setting the prices of various products of our organization.

In CATCHMENT ANALYSIS we also came to know about the potential customer base around those upcoming Reliance Hyper Markets. It includes the demographical factors like age, income level, population, sex etc. It ultimately helps in targeting the potential customers. It also helps in knowing the frequency of buying and what product does the prospective consumers purchase on a regular basis.

CONCLUSION

81

Retail in India is still at a very early stage. Most retail firms are companies from other industries that are now entering the retail sector on account of its amazing potential. There are only a handful of companies with a retail background.

Besides the urban market, India’s rural market has just started to be seen as a viable option and companies who understand what the rural consumer wants will grow to incredible heights. The bulk of India’s population still live in rural areas and to be able to cater specifically to them will mean generating tremendous amounts of business.Business, specifically retail business must focus on the most important factor in the Indian mind-set----Value for Money. Indian consumers are ready to pay almost any amount of money for a product or service as long as they feel they are getting good Value for Money. This is often misconstrued as being tight fisted or interested in lower priced and/or lower quality products.

In the end i conclude this project by admitting the fact that opening up a Hyper Market by Reliance will be really advantageous because of the ongoing boom in retail industry which is expected to grow at a pace of 25-30 % in the coming 3-5 Years. Because of the changing consumer behaviour it will be a great opportunity for the Hyper Markets to target their potential customers and to grow their business.

SUGGESTIONS

82

1. Aggressive advertising campaigns should be taken so as to make Reliance Hyper Market more popular among common masses.

2. The Company should try to explore new formats in retail operations where there is no competition to be the pioneer.

3. More attractive promotional offers should be devised to achieve customer loyalty and retaining them for a longer period of time.

4. Company and sales force should concentrate more on strengthening their retail and distribution relationship and communication.

5. Better storage facility, timely supply of goods and an effective system to redress complaints.

6. The company should make all out efforts to retain the competitive edge in pricing over its competitors.

7. There should be the facility for home delivery of the products.

8. Local Taste should be considered while opening a store.

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REFERENCES

www.ril.com

www.retailonline.com

www.hindustantimes.com

www.timesofindia.com

www.google.com

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shariq s project relience retail

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