RDM

REPORT OF VISIT TO RELIANCE MART,

CROWN INTERIORZ

Submitted By:

Gaurav Nagpal

Roll No.21

MBA (IB) 08-10 Batch

HYPERMARKET

In commerce, a hypermarket (from the French hypermarché) is a store which combines a

supermarket and a department store. The result is a gigantic retail facility which carries an
enormous range of products under one roof, including full lines of fresh groceries and apparel.
When they are planned, constructed, and executed correctly, a consumer can ideally satisfy all of
their routine weekly shopping needs in one trip to the hypermarket.

The concept was pioneered by the French retail group Carrefour, which opened the first
hypermarket in 1962 in Sainte-Geneviève-des-Bois near Paris. Carrefour is now the second-
largest retail group in the world.

Some hypermarket chains in India

Saravana Stores,Chennai
Big Bazaar
Star Bazaar
.more for you
Spencer's Retail
HyperCITY
Vishal Megamart
Metro Cash and Carry
Marks & Spencers
Reliance Fresh, Trends

GROWTH OF HYPERMARKETS

Liberalization of the economy in the nineties and the entry of large players in the retail business
have brought the retail industry into spotlight. Big players and national retail chains are changing
the rules of the game. After supermarkets, departmental stores and convenience stores, Indian
retail has seen concept of hypermarkets coming of age. The hypermarkets are not new to the
western countries.
Players like Wal-mart, Metro have established hypermarkets in many countries. In India,
hypermarket concept is in nascent stage, retailers like Pantaloons and RPG have started
hypermarket operations and they are having plans to expand aggressively to all the regions of
India. A large number of international retailers have evinced interest in India, despite the absence
of favorable government policy for foreign players.

India has one of the largest unorganized retail markets in the world. More than 96% retailers
function in less than 500Sq.Ft of area. India's per capita retailing space is thus the lowest in the
world. Given the size, and the geographical, cultural and socio-economic diversity of India, there
is no role model for Indian suppliers and retailers to adapt or expand in the Indian context. The
industry is witnessing the development of region-specific formats. With organized retail
penetrating into B class towns, larger discount formats, popularly known as hypermarkets, are
now emerging as major competitors for both unorganized and organized retailers. Penetration of
organized retail into the lower income groups and increasing consumer demand for value-for-
money has improved the prospects of these formats. It offers customers a wide array of low-
priced products ranging over categories like groceries, processed food, fresh food, apparel and
consumer durables. On an average in India it is spread over 50,000 sq. ft. There are more than
25,000 SKUs (Stock Keeping Units). The margins and discount rates on various product
categories have been discussed. In case of Hypermarket the largest part of their operating cost
goes towards rentals. High costs arises from labor, social security to employees, high quality real
estate, bigger premises, comfort facilities such as air-conditioning, back-up power supply, taxes
etc. Degree of personal involvement and information dependency are the two crucial factors
which affect the purchasing behavior of the customer.

Recent years have witnessed a sizeable growth in organized retail space in the major Indian
cities. Real estate is the most important parameter deciding the profitability of any store. Real
Estate in terms of location as well as the cost associated with it will affect the footfalls and the
finances of the company. Major development happenings in the area of retail space in India are
hypermarkets and malls. India is witnessing an exponential growth in the space occupied by
organized retailers. The major places where these malls are coming up are Mumbai, Delhi,
Bangalore and Pune. Indian retail industry is still a "protected industry" from foreign direct
investment (FDI). Though FDI can help generate employment in this sector, it is likely to pose
stiff competition for existing small businesses. Unlike the country's FDI investment objective of
technology transfer and export promotion in 1980s, today's infusion of capital can bring in issues
like size of investment, percentage of stake or ownerships in the company and takeovers of
domestic companies by foreign giants.

Reliance Mart

Reliance Retail has launched its hypermarket under the brand name Reliance Mart at Crown
Interiorz Mall, Delhi-Mathura Road. This is the first Reliance Mart to be launched in Faridabad
in the NCR region. This has come up after the successful launch of hypermarkets in Tirupati,
Pune, Gurgaon, Bangalore, Ranchi, Hyderabad and two hypermarkets in Gujarat at Ahmedabad
and Jamnagar.

Modern retail formats such as hypermarkets have a future in India and will exist alongside the
neighbourhood kirana store. The format offers a diametrically different shopping experience —
large and clean spaces, shelves stacked with a wide range of products and brands, special
discounts and offers — that he believes will appeal to customers and drive the business forward.

Hypermarkets are a relatively new phenomenon in India, but already the business has seen
several players who have opened dozens of outlets and then been forced to shut down or
downsize. Realisation has dawned that this is not an easy business. People thought that they
could expand rapidly, but the key is getting the model right.
The interiors, colours and lighting are appealing, and the simple layout and large signage makes
it easy for customers to find the merchandise they are looking for.

The shopping experience is really about how you structure your store, about customers easily
getting what they want. Of course, it’s not possible to have every item, but if customers can’t
find half of the things they want, then they won’t come back.

The large store area ensures shelves and aisles are not crowded, and there is ample parking space
available

The Reliance Mart provides the shoppers a never before experienced shopping delight. A range
of more than 40,000 products can be seen in the store for the entire family.

Shoppers can choose from a wide array of products in every category ranging from fresh
produce, daily needs, home, books & music, gifts and toys, footwear, eyewear, cosmetics and
fragrances, furniture, furnishing & décor, computers and entertainment, health and wellness
products.

The launch of Reliance Mart at Faridabad has provided an international shopping experience to
all our customers at unmatched affordability, guaranteed quality and choice of products and
services. The Reliance Mart marks another milestone in our effort to unleash the retail revolution
in India.

This store has dedicated 25000 sq ft shopping area to apparel and 10000 sq ft consumer durable
and electronics lovers. In addition to other products & services Reliance Mart also offers fashion
jewellery, auto accessories, membership, free home delivery, telecom services, ResQ, the
consumer durable service and consumer finance services.

The store layout and ambiance has been designed specifically to provide customers comfort and
ease while shopping. Reliance Mart has 17 check-out counters and 4 express check-out counters
aimed at reducing the customer waiting time. The store will remain open from 10:00 a.m. to
10:00 p.m. seven days a week, serviced by over 210 highly skilled and trained customer sales
representatives.

Reliance Mart offers its customers Reliance One, Membership & Loyalty program, designed to
deliver customized benefits to frequent shoppers. The customers can earn Reliance One Points
on all shopping in the store which can be redeemed after accumulation under this scheme.
Reliance One already has a membership base of more than 4 million customers.

Reliance Mart is yet another step by Reliance Retail towards providing international shopping
experience to all their customers at unmatched affordability, guaranteed quality and choice of
products and services. Reliance Mart marks the achievement of another milestone in our effort to
unleash a retail revolution in India.

Reliance Mart offers some unique services to the shoppers like tailoring, shoe repair, watch
repair, a photo shop, gift services and laundry services, all within the store. The store also houses
its own fresh bakery, serving ―hot, off-the-oven‖ bread and bread products throughout the day
and local savouries, an ice-cream train for the kids, a chakki, ready-made batter and loose tea and
pickle for the housewives. Reliance Mart will also sell fine jewellery and fashion jewellery as
part of its lifestyle section.

Reliance Mart will also house a health and wellness store providing pharmaceutical drugs and
other wellness products. For the shopper’s convenience, the store has a cafeteria providing
quality food and beverages for ready consumption, an ATM machine and a consumer service /
membership desk to provide the customer a truly international shopping experience.

The hypermarket also launched a host of Reliance’s own brands in select categories with
superior quality and affordable prices like ―First Class‖, ―Network, Netplay, Team Spirit‖ and
Sparsh in Men’s and Women’s Formal / Casual and Ethnic wear, ―DNM- X‖ in the jeans
category for men and women, ―Panda‖ for kids clothing and ― Grip‖ in the luggage section. The
footwear category will carry ―Zig‖ in formal wear. ―Hi Attitude‖ for semi -formal, ―Tosco‖ for
party wear and ―Monza‖ for the sports enthusiast. There are many products that will be
exclusively available in Reliance Mart stores only.
FOOD AND GROCERY SECTION

This is the most crucial and most important section for any mart.
People necessarily come for purchase of grocery, and end up doing impulse purchases in other
sections. For this reason, the way to Food and Grocery Section leads through other sections such
as accessories.
Another note-worthy point is that the mart cannot afford to compromise on the quality of
products in this section.
Also, this section is a very low margin section in any mart.
ATTRACTIVE DISPLAYS: A few learnings:

Customers can be won by using retail display systems that are customer friendly: in other
words, harness the powerful psychology of shopping. People love to shop. In fact, a great
number of people consider shopping a relaxing leisure activity or even their hobby, with
Business Network (BNET) stating that 39 percent people in the United States "love to
shop." So, retailers in general have an eager audience that is ready and willing to buy its
products – but, they also have significant competition and so they must woo and win the
attention of their potential customers.

One key way to attract and keep the attention of shoppers is to create an environment that
is conducive to shopping – and one key way to do that is to use compelling,
interchangeable store fixtures and retail display systems to keep your store fresh,
interesting and appealing. Though, retailers are using increasingly sophisticated ways to
capture the attention of shoppers – which means that you, as a retailer, also need to use
contemporary strategies, which include attractive retail fixtures, to keep customers
satisfied.
 Retail displays and fixtures should be chosen that are uniquely suited to your target
market. Take a detailed look at your own store. In what ways are the store fixtures and
retail displays that you're using not compatible with your customers' needs?

Space should be designed using retail display systems that make it easy for the customers
to keep shopping. The BizEd article also pointed out how successfully some retailers lay
out their stores using retail displays that allow and even encourage a customer to keep
browsing. Nothing blocks the customers from this path. So, again, take a look at your
own store.

The way in which retail fixtures are arranged, can have a tremendous psychological
impact upon the customers who walk inside your front door. Make your retail space a
friendly welcoming place through the strategic use of contemporary compelling store
fixtures today!

Creating an attractive product display can draw the customer in, promote a slow-moving
item, announce a sale, or welcome a season. If your store front is fortunate enough to
feature one or more windows, then you have one of the most proven (and least expensive)
forms of advertising at your disposal.

Elements of Effective Visual Merchandising

Balance: Asymmetrical rather than symmetrical balance with the display.

Size of Objects: Place the largest object into display first.
Color: Helps set mood and feelings.
Focal Point: Where product and props/signage and background come together.
Lighting: Should accent focal point, if possible.
Simplicity: Less is more so know when to stop and don't add too many items.
Grid Layout

In this layout, all sections are arranged in the form of a rectangular grid. Reliance Mart follows
this type of layout.

The rows of Gondola directing towards checkout is the layout called Grid Layout. This is
commonly used in Provision and Grocery stores.

Hypermarkets generally use grid layout because there are many kind of products and there are limit
merchandisers, It has to separate products into categories for using space usefully, easy to find products
The lighting should allow for large obstructions such as signage and seasonal decorations to be displayed
without causing shadowing; and there are always have music or announcement in the stores to let people
know about promotion in products

End cap

In the retail marketing world, location is everything. One of the most popular display areas for
merchandise in a grocery or department store is the hub at the end of an aisle, also known as the
endcap. An endcap is highly visible from the popular perimeter shopping areas, and each aisle
section contains four endcaps. Competition for the right to display products on an endcap can be
very fierce, especially among beverage and snack food companies.

An endcap usually contains items which have a higher profit margin, such as carbonated sodas,
savory snack foods and seasonal offerings. Quite often the endcap will be stocked with a small
supply of items available in a neighboring aisle. The hope is that a customer will visit the regular
aisle if a particular flavor or size is no longer available at the endcap. In this way, an endcap
display serves as a teaser for the larger assortment of products in the aisles. Even if a customer
has no need to venture down a particular aisle, the convenience factor of grabbing a beverage or
snack at the endcap has its own appeal.

The endcap is a valuable piece of real estate in any store's layout, so vendors are often willing to
pay a premium for the privilege. The endcap display often contains special promotional materials
and a prominent sign which appears to promote a discounted or promotional price. Since the
product displayed in an endcap may be situated far away from similar products, the customer
may easily assume the price is a relative bargain.

Gondolas

Gridwall gondolas, displays and grid merchandisers are lightweight, flexible fixtures. Generally
available in black, white or chrome, grid fixtures allow retailers to display a larger volume of
merchandise in a smaller space. Grid fixtures are mobile and offer a sleek look to modern retail
stores. These highly functional pieces are great for window displays, on the sales floor, or even
trade shows.
Top Shelf is a gondola style shelving system that is perfect for the retail sector. It is ideal for a
wide range of shop premises such as supermarkets, chemists, pharmacies, grocery stores, mini
markets, general stores, pet shops, bakers and so on.
Billing

Billing points use Barcode Scanners to find the price of the purchased items.