A Summer Training

Undertaken at

RELIANCE INDUSTRIES LIMITED

Titled Competitive Analysis of Reliance Fresh with Other Retail Outlets

Submitted in partial fulfillment for the Award of degree of Master of Business Administration

Submitted By: Mahender Pal MBA Part IIIrd

Submitted To:Ms.Vaishali Jain Lecturer

ST.WILFREDS BUSINESS SCHOOL, JAIPUR

2009-2011
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PREFACE
Reliance Retail Jaipur gave me the opportunity to undergo practical summer in their organization.

I have done specific project on Competitive Analysis of Reliance Fresh With Other Retail Outlet during my training period.

The project report contains all the study covered in the project. The project helped me a lot to learn regarding the practical aspects of marketing and marketing research. I am thankful to Reliance Retail Ltd. for giving me such an opportunity which would be beneficial and helpful to me in future.

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mrs. ROOPALI KASLIWAL, Senior Manager, Marketing Dptt., for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he/she/they had provided to me with all stages of this project. I would also like to thank the supporting staff for their help and cooperation throughout our project.

MAHENDER PAL

EXECUTIVE SUMMARY
The research project was carried out for Reliance Industries Ltd, Jaipur for its retail format Reliance Fresh, the project mainly concentrated on mystery shopping, mystery audit, price benchmarking and also multi dimension scaling to draw perceptual map of different brands. In order to collect data from different stores visits were made to get the first hand experience of the stores in a number of aspects such as location, ambience, parking facilities, product quality and freshness ,staff behavior as well as billing facilities, a predetermined questionnaire was filled by the researcher himself as a customer after each store visit to rate it on the said parameters. In order to do the price benchmarking analysis the prices of given list of products were also collected from different stores of different retail companies to compare the prices and evaluate them against each other. In order to conduct multi dimensional scaling a MDS questionnaire was made and data was collected from respondents in the form of personal interview. The score suggested that Big Bazar and National Handloom Corporation were the best stores as a whole, while attributes wise results were as far as store was concerned big bazar appeared to be best followed by national handloom corporation. In case of product availability and product quality and freshness NHC has come out as best according to big bazar and reliance fresh shared equal and top most rank in promotions. Staff as whole was best in Reliance Fresh and More while in billing facilities Hyper city was rated best. When the price benchmarking data was analyzed it was observed that Reliance Fresh was offering the best deals. The perceptual map was drawn on three dimensions namely promotion measures, shopping experience and customer service. Retailing is the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. A retailer is one who stocks the producers goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. The retail industry in India is of late often being hailed as one of the sunrise sectors in the economy. AT Kearney, the well-known international management consultancy, recently identified India as the first most attractive retail destination globally from among thirty emergent markets. It has made India the cause of a good deal of excitement and the cynosure of
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many foreign and domestic eyes. The entry of foreign and Indian retail giants like Wal-Mart, Metro, Reliance, Birla, Tata etc. made Indian market more competitive which is at cut throat level. So how retailers can reach to their end customers, to win the mind share and increase the basket size of each shopping trip. India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demography patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.

The growth of scope in the Indian retail market is mainly due to the change in the consumers behaviour. For the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favourable. Reliance Retail is the retail chain division of reliance industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The reliance fresh supermarket chain is rils rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011to the company. . AS The twentieth century has come to and we have moved in to third millennium , we can see many development and changes taking place around us with all the industries and firms within each industry trying to keep pace with all the industries and firm within each industries trying to keep pace with the changes and diverse need of people . Marketer have regarded and importance today. customer as the king and evolved all activities to satisfy him or her, this concept gaining more momentum

More than a century ago, the father of our nation, Mahatma Gandhi, had made visionary and deep meaningful statement at Johannesburg, South Africa in 1980. A customer is the most important visitor of our premises. He is not dependent on us .We are dependent on him He is not interruption on our work. He is the purpose of it and not an outsider on our premises. He is a part of it. We are not doing him favour by serving him. Today the entire firm engaged in a process of creating a life time value and relationship with customers. This report start with discussion on the diversity of consumer behaviour and the need for studying consumer buying behaviour and consumer as a related field of marketing .this can be largely be attributed to the prevailing market situation .Today the company image is built and made known by its customers. Thus success of the firm determined how effective it has been in meeting the diverse consumer need and wants by treating each customer as unique and offering products and services to suit has or her need. Consumer buying behaviour will be a primary force in determining how this transition will evolve. Getting closer to the customer in todays highly competitive landscape is essential for the entire industry and is no longer just a retail issue. It requires all organisations across the supply chain to work as a single enterprise, sensing and responding rapidly to consumer demand in a coordinated manner. Detailed analysis of the changing patterns of consumer demand, shopping trends.

CONTENTS
1. Introduction to the Industry 2. Introduction to the Organization 3. Research Methodology 3.1 Title of the Study 3.2 Duration of the Project 3.3 Objective of Study 3.4 Type of Research 3.5 Sample Size and method of selecting sample 3.6 Scope of Study 3.7 Limitation of Study 4. Facts and Findings 5. Analysis and Interpretation 6. SWOT 7. Conclusion 8. Recommendation and Suggestions 9. Appendix 10. Bibliography 42-64 65-73 74-76 77-79 80-82 83-85 86-87 8-17 18-32 33-41

Chapter 1 INTRODUCTION TO THE INDUSTRY

INTRODUCTION TO INDUSTRY

The retail industry is one of the fastest growing industry in the world and so as well in india, the tremendous rate of growth and attractive outlook has resulted in large number of players in Indian market as well, although Indian retail market is still at nascent stage and the scope of growth is immense it is yet aprotected market as govt.of indian has strict guidelines and a number of restrictions for foreign and multinational giants in retail who are yet to enter into market in full swing, the situation is dynamic and it is going through a constant change as the govt. is liberalizing the stringent norms year after another, the indian retail industry is expected to see a sea change the govt. would allow 100% foreign direct investment in retail sector, the market will turn more comptitive and Darwins survival of the fittest theory will hold good in a market which is alreadycompetitive enough.

The study was carried out for Reliance Industries Ltd, Jaipur.The focus of the project is on the Retail business of RIL which is better known as Reliance Fresh. Reliance Fresh is one of the largest retail chains in jaipur having 26 stores well dispersed across the city,still reliance industries retail format i.e. Reliance Fresh is not the leader and it faces a lot of problem as well, the purpose of the report was to pool in information about all the retail formats operating in the city,draw up their strengths and weakness and compare it with Relince Fresh.

The first problem was to select the stores which were to be considered as competitors,the task was comlicated because of the presence of unorganized retail stores owned by private individuals,although the number of such stores were huge and it was beyond the scope to include all such stores in our study so decided upon few who had a sizable consumer base and was popular shopping destination of the people of jaipur, apart from them we included all the players in organized retail format under the preview of our studies.

So finally the following names were decided for the Analysis:

1. Big Bazar/Food Bazaar

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2. Easy Day 3. Hyper City 4. More 5. National Handloom Corporation 6. Six Ten 7. Vishal Mega Mart

The research is more of a exploratory research as we use a lot of secondary data to compare the different retail formats, the study was carried out with the help of some primary data as well which helped to find out where competitors lie on a perceptual map. The study required to rate different retail formats on different papameters decided which were indicative of a retail stores performance on aspects such as:

1.About store like location, ambience, hygiene and parking facility 2.Product availability 3.Product quality/freshness of vegatables, staples, processed food, dairy products and Non food fast moving consumer goods. 4.Promotion measures 5.Staff behavior or response 6.Billing facilities

The project also tried its best to analyze from a customer point of view the shopping benefits he get, for this a hypothetical bucket of goods was taken into consideration and the entire bucket price of different stores were compared. The study also scrutinizes the promotion measures adopted by different retail company.
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OVERVIEW OF RETAIL SECTOR

Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoing an exponential growth, the road ahead is full of challenges. What is retailing? The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer. SCENARIO OF RETAILING IN INDIA Retailing is the most active and attractive sector of last decade. While the retailing industry itself has been present since ages in our country, it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased purchasing power of buyers, especially post-liberalization, increase in product variety, and increase in economies of scale, with the aid of modern supply and distributions solution. zzzzzzz

Indian retailing today is at an interesting crossroads. The retail sales are at the highest point in history and new technologies are improving retail productivity. though there are many
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opportunities to start a new retail business, retailers are facing numerous challenges. KEY CHALLENGES: 1) LOCATION: "Right Place, Right choice" Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan: * Investigate alternative trading areas. * Determine the type of desirable store location * Evaluate alternative specific store sites 2) MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store.

3) PRICING: Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today's customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change. 4) TARGET AUDIENCE: "Consumer the prime mover" "Consumer Pull", however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the
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retailing boom.

5) SCALE OF OPERATIONS: Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India.

PRESENT INDIAN SCENARIO * Unorganized market: Rs. 583,000 crores * Organized market: Rs.5, 000 crores * 5X growth in organized retailing between 2000-2005 * Over 4,000 new modern Outlets in the last 3 years * Over 5,000,000 sq. ft. of mall space under development * The top 3 modern retailers control over 750,000 sq. ft. of retail space * Over 400,000 shoppers walk through their doors every week * Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06 * Major players - Food and grocery - Fashion - Others - Food world - Shoppers' Stop - Vivek's - Subhiksha - Westside - Planet M - Nilgris - Lifestyle - Music World
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- Adani- Rajiv's - Pyramid - Crossword - Nirma-Radhey - Globus - Life spring TRADITIONAL RETAIL SCENE IN INDIA India is the country having the most unorganized retail market. Traditionally the retail business is run by Mom & Pop having Shop in the front & house at the back. More than 99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test & vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading & home are not maintained separately. Profits were accumulated in slow moving & non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. The Manufactures were to distribute goods through C & F agents to Distributors & Wholesalers. Retailers happen to source the merchandise from Wholesalers & reach to end-users. The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive & not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors &/or Wholesalers. Virtually there was only one format of retailing & that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based & truly very low range was available at any given single place. Almost all the purchases / (buying) by mass population was need oriented & next turn may be on festivals, Marriages, Birthdays & some specific occasions.

Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of Indian urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly
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seeping into the lifeline of Indian City folks. However electronic & electrical home appliances do hold appropriate image into the minds of consumers. Brand name does matter in these white goods categories. In the coming times also majority of organized retailers will find it difficult to keep balance with rest of the unbranded retail market which is very huge.

INDIAN RETAIL IS MOVING INTO SECOND GEAR 1) FIRST GEAR: (Create awareness) * New retailers driving awareness * High degree of fragmentation * Real estate groups starting retail chains * Consumer expecting 'value for money' as core value 2) SECOND GEAR: (Meet customer expectations) * Consumer-driven * Emergence of pure retailers * Retailers getting multi-locational and multi-format * Global retailers evincing interest in India

3) THIRD GEAR: (Back end management) * Category management * Vendor partnership * Stock turns * Channel synchronization * Consumer acquisition * Customer relation's management 4) FOURTH GEAR: (Consolidation) * Aggressive rollout
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* Organized retail acquitting significant share * Beginning of cross-border movement * Mergers and acquisitions

BACKGROUND OF RETAIL
India is a land of retail democracy- hundreds of thousands of weekly haats and bazaars are located across the length and breadth of our country by peoples own self-organizational capacities. Our streets are bazaars lively, vibrant, safe and the source of livelihood for millions. India has the highest shop density in the world, with 11 outlets per 1000 people. This does not include the village haats. Our retail democracy is characterized by 1. High levels of livelihoods in retail with nearly 40 million employed which accounts for 8% of the employment and 4% of the entire population. 2. High levels of self - organization. 3. Low capital input 4. High levels of decentralization Retail in India has started with the concept of weekly markets, where all the traders gather at one big place to sell their products every week. The people come to these weekly markets to buy the household items for the next one week. Village fairs and melas were also common as it had more of an entertainment value. Once the people started getting busy with their lives and when they turned entrepreneurial, there emerged the mom and pop shops and the kiranas in the neighborhood. After independence, came into existence the system of Public distribution of foods through the ration shops, where food grains, sugar and oil for the daily consumption were distributed at subsidized rates through the government ration shops. The modern corporate retail formats are of the exclusive brand outlets, hypermarkets and supermarkets, departmental stores
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and shopping malls. But still the Indian consumer depends on the self-organized retail shops for their daily needs. This is largely due to the excellent food retailing system that was established by the kirana (mom and-pop) stores that continue meet with all the requirements of retail requirements albeit without the convenience of the shopping as provided by the retail chains. The Hawkers/lari galla vendors and the local kiranas are the two main forms of unorganized retail in the country, which almost account for 97% of the total retail trade. Giant corporations like Wal-Mart and Reliance have started to try and take over the Indian retail sector. Currently the value of the retail market is estimated at around $ 270 billion with a growth rate of 5.7 per cent per annum according to the Indian retail report. The size of small retail is big, the size of big retail is small, a mere Rs. 250 billion in 2004 or 3% and Rs. 485 billion or 4.7% per cent of the retail market in 2006. However, the large scale corporate retail is projected to grow at the rate of 28% to 30% per annum, reaching Rs. 1000 billion or $ 70 billion by 2010 from the current size of US $ 8.7 billion. The tenfold increase in corporate retail will be at the cost of small scale retail, which employs nearly 10% of Indias population.

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Chapter- 2 INTRODUCTION TO THE ORGANIZATION

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1. INTRODUCTION TO THE ORGANIZATION

ABOUT THE FOUNDER:DHIRUBHAI AMBANI

Born

December 28, 1932 Chorwad,Gujrat July 6, 2002 (aged 69) Mumbai, India Indian Business tycoon, chair man of Reliance industry US $6.10 billion Hindu Kokilaben Ambani Mukesh Ambani & Anil Ambani

Died

Nationality

Occupation

Net worth Religion Spouse(s) Children

Dhirajlal Hirachand Ambani, also known as Dhirubhai, 28 December 1932, - 6 July 2002, was an Indian rags to riches business tycoon who founded Reliance industry with his cousin. Ambani
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took his company (Reliance) public in 1977, and by 2007 the combined fortune of the family (sons Mukesh and Anil) was 60 billion dollars, making the Ambani's the second richest family in the world, next to the Walton family. Dhirubhai has been one among the select Forbes billionaires and has also figured in the Sunday Times list of top 50 businessmen in Asia. Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmadabad. Dhirubhai founded Reliance Industries in 1958. After that it was a saga of expansions and successes. Reliance, acknowledged as one of the best-run companies in the world has various sectors like petrochemicals, textiles and is involved in the production of crude oil and gas, to polyester and polymer products. The companies refinery at Jamnagar accounts for over 25% of India's total refining capacity and their plant at Hazira is the biggest chemical complex in India. The company has further diversified into Telecom, Insurance and Internet Businesses, the Power Sector and so on. Now the Reliance group with over 85,000 employees provides almost 5% of the Central Government's total revenue. In 1986 after a heart attack he has handed over his empire to his two sons Anil and Mukesh. His sons are carrying on the successful tradition of their father

THE RELIANCE EMPIRE

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Reliance being the all encompassing company has entered into all the sectors, retail being their latest.

Reliance Industries Limited

Chairman and Managing Director Market Capitalization Total Shares Outstanding Closely Held Shares Sales

: : : : :

Mukesh Ambani INR 39,609,150,020 (Sept, 2006) 22,405,900 (Sept, 2006) 11,365,943 INR 10,512,963,000

According to the company website "1 out of every 4 investors in India is a Reliance shareholder. RIL is ranked at 342 in the 2006 Fortune Global 500 list among the worlds largest corporations.

The Reliance Industries Business Brand

Product

End uses

Petroleum (Exploration& production)

Crude oil and Natural gas

Refining,power,petrochemicals and other industries.

Refining

LPG, Propylene, Gasoline, Jet/Aviation turbine fuel, High Speed Diesel, Superior kerosene oil

Domestic and industrial fuel Feed stock for petrochemicals,Trasnsport fuel, Aviation fuel, Domestic Fuel, Transport Fuel, Feedstock for fertilizers, feed stock for power plants and cement plants

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Polymers Repol Relene

Polypropylene High Density Polyethylene

Reclair Reon

Linear low density polyethylene Poly Vinyl Chloride

Relpipe

Poly-Olefin pipes

Chemicals Relab

Linear Alkyl Benzene

Detergents

Acrylic Recrylon Recrylic

Wet spun Acrylic fibre Dry spun Acrylic fibre

Fibre Intermediates

Paraxylene Mono Ethylene

Texltiles Vimal

Suitings, shirtings, Dress material, Sarees

Fabrics

Furnishing Fabrics, Day Harmony curtains, Automotive upholstery

Furnishing, home textiles

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RueRel V2

Suitings Ready to stitch take away fabri

Fabrics Fabrics

Reance Readymade garments

Suits, shirts and trousers.

Polyester Recron Staple fibre, filament yarn

Recron cotluk Recron Dyefast Recron superblack Recron superdye

Cotton luk,cotton feel yarn Easy dyeable yarn Dope dyed staple fibre Cationic Dyeable staple fibre

Reliance recorded a profit of 8.9% on assets - first among the 38 chemical companies in Asia. In terms of market cap, Reliance Industries ranks third among chemical companies in Asia, with a market cap of $6087.2 million as on October 19, 2001. Reliance's total sales, at $6232 million, ranked eighth among the 38 Asian chemical companies. Reliance's total sales have gone up substantially from 1996 when the company recorded $2485 million. Company with the highest refining capacity in India-60mpta Reliance SEZ At Jhajjar, Haryana (Area covered 25, 000 acres) (Nature of SEZ-Multi product) Reliance SEZ in Raigad (Area covered- 10,000 hectares)

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CORPORATE SOCIAL RESPONSIBILITY

Today when most of the companies are busy in making profits by any means, there are few Ones who are focused to return this society, a part of what they have earned through this society. Reliance retail is one of them. Following efforts of reliance retail are aimed at benefiting the society making reliance socially responsible:
1)

Reliance Retail aims at recruiting people from the underprivileged community in society. "Hence, we are planning to train students from corporation schools and schools run by NGOs. And, we consider this as a part of our corporate social responsibility," he said. Asked whether the company will take students on an employment basis and pay them a stipend during the course period, he said that actually, it is planning to charge a "small fee" from those who want to join the course "as we want to bring in some discipline and regularity among the students", and will reimburse that once they are inducted into service.

2) Farming in India is highly fragmented and subject to harsh climatic conditions: once harvested, it is very difficult to keep fruits and vegetables fresh. To secure high quality, Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers from villages through Collection Centers. With this concept, Reliance has built a business model generating shared value that links the company supply chain more closely to poor farmers in Indian villages. Reliance is providing a guaranteed market for the farmers produce, reducing transaction costs and training the farmers in better and sustainable farming practices. This initiative results in higher income and upgrading of skills for the farmers, and reduced spoilage of produce (up to 35 percent) .

3) Reliance retail has adopted farm to fork theory which means it is procuring directly from the farmers thus offering them quite reasonable prices for their produce as now no intermediaries are involved. In return Reliance is giving farmers information about how can farmers improve their productivity. They have centers in villages who apart from providing information make farmers aware of market rates of different crops so that farmers can choose crops they want to sow to become profitable. farmers are provided technical help as well like information about quality of seeds and fertilizers.

A GLANCE AT EXISTING RELIANCE

FACILITIES :

MORE THAN 200 STORES IN 12 CITIES.

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PROCESSING CENTERS IN PUNJAB, DELHI, RAJASTHAN, M.P, GUJARAT, JHARKHAND, ORISSA, KERALA, TAMILNADU, BENGAL, ANDHRA PRADESH, KARNATAKA.

INVENTORY

FRESH FRUITS AND VEGETABLES, STAPLES, GROCERIES, FMCGs, MILK ETC.

TRANSPORTATION : RELOGISTICS , 2000 CRORE RELIANCE COMPANY.. . TATA 407, TATA 409, TATA 909 AND COLD TRUCKS. USE THIRD PARTY LOGISTICS ALSO

INFORMATION

ADVANCED STORES WITH UPGRADED SOFTWARES.

SOURCING

NEARBY VILLAGES OF ABOVE MENTIONED PROCESSING CENTERS + FEW INHOUSE LABELS + KNOWN SUPPLIERS.

PRICING

PROCUREMENT FROM FARMERS HAS GIVEN RELIANCE COMPETITIVE EDGE OVER THE OTHER RETAILERS.

Formats of Reliance RETAIL

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Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super,

ABOUT RELIANCE FRESH:APKA FRESH APKE PADAOS ME

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Reliance Retail
TYPE INDUSTRY Founded Headquarters Key people Website SUPERMARKET RETAIL 30 October 2006 MUMBAI, INDIA MUKESH AMBANI WWW.RIL.COM

Reliance Fresh is the convenience store format which forms part of the retail business of RELIANCE INDUSTRY OF INDIA which is headed by MUKESH AMBANI Reliance plans to invest in excess of Rs 25000 CRORES In the next 4 years in their retail division. The company already has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products. A typical Reliance Fresh store is approximately 3000-4000 square. Feet and caters to a catchment area of 2-3 km.
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In Rajasthan it has 41 outlets, out of which Jaipur has 26 Reliance fresh Stores and recently it opens it MARTS in jodhpur.

FARM TO FORK
The Reliance retail company sources say it is setting aside Rs 50,000 crore to build its farm-to-fork linkage. Reliance has drawn up plans for a presence in 784 towns and 6,000 mandi (wholesale market) towns with 1,600 rural business hubs to service these. It has already rolled out 177 Reliance Fresh stores across major towns in 11 states. According to a company report, RIL is targeting a turnover of Rs 40,000 crore in the next few years.

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TRADITION AL MODEL OF RETAIL RELIANCE FARM TO FORK

SUPPLY CHAIN MODELS of Reliance Retail

Reliance started its retail operations of Reliance Fresh stores with following supply chain model. Procuring directly from the farmers and operating with moderate margin but mass selling was key to Reliance fresh operation for first few months. The following figure depicts the first Reliance fresh model

RELIANCE FRESH

29

FARMERS CATEGOR Y1

FARMERS CATEGOR Y2

FARMERS CATEGOR Y3

Fa rm ers

Ow nT

ran

sp ort at

ion

COLLECTIO N POINT/UNI T
RELIANCE OWN

O ers rm Fa

wn

n atio ort nsp Tra

Re

RF tics gis Lo wn eo nc lia

PROCESSIN LOGISTICS G UNIT/POINT

Re li

an ce

RF
ow nL og ist ics

RELIANCE FRESH OUTLETS

RELIANCE FRESH OUTLETS

RELIANCE FRESH OUTLETS

WHOLESALE TRADING (WST) : Reliance formalized its second supply chain model to shift itself from grocery retailer to grocery supplier by focusing and establishing itself in Mandis.

STEPS IN WTS MODEL: 1) Reliance has owned farms on contract basis for production of specific crop which is decided after extensive research depending on SOIL CONDITIONS, CLIMATE CONDITIONS,
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RETURN OVER COSTS INCURRED. So as to yield best possible results.

2) Different vegetables and fruits from such farms are collected through reliance own Logistics and brought to collection Processing centres where quality check and other required processing is done. In processing centres workers wearing balaclavas, woollen trousers and bulky jackets work inside a room kept at a constant 3oC, peeling and chopping vegetables, spinning them dry and then heaping them in small plastic packets before placing them in plastic transport crates. At the other end of the 5,000-sq-m warehouse, men unload crates of fruits from a truck pulled up to a spotless loading dock. A quality-control expert samples every tenth crate; if the fruits are good a team will ready them for delivery within hours to Reliance fresh stores around different places like U.P and as far away as Hyderabad and even Mumbai (formerly Bombay). If they are not, workers will inspect the entire shipment and discard anything below standard. 3) Merchandise from these collection processing centers are collected and loaded for Wholesale mandis. As this merchandise is to be made available by 4 A.M in morning thus deliveries in trucks are sent at time depending upon: TRANSIT TIME. Time required reaching destination i.e. mandis. MARGIN TIME. Time period between a truck reaching mandi and then Unloads. Can be 2 to 3 hours. LOADING AND UNLOADING TIME.

4) From mandis where the trucks have been unloaded, roadside vendors and Buy fruits and vegetables to supply in households. 5) In case still some vegetables and fruits are not sold reliance logistics own Transportation sends them to reliance fresh stores.

pull carters

ABOUT COMPETITORS

1.

Hyper CITY:

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HyperCITY provides a truly international shopping experience, where customers can shop in comfort in a large, modern, & exciting environment. It offers a wide and contemporary range of innovative products, sourced from both local and international markets. The product range covers: Foods, Homeware, Home Entertainment, Hi-Tech, Appliances, Furniture, Sports, Toys & Fashion.

2.

BIG BAZAR:

Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices - that's what we guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience. Click here to find out where you can shop at the Big Bazaar closest to you.
3.

MORE:

The more. Chain of supermarkets, are bright and clean stores, at convenient locations with layouts that allow ease of navigation. The product display is well organised and facilitates ease of choice. The stores have been designed by Fitch, the leading international retail design firm. The stores promise a range of benefits to consumers and are a solution to the many problems faced by housewives while shopping for their daily needs. The retail offering from the Aditya Birla Group, has been crafted after in-depth research of the needs and expectations of the Indian consumers. more. is the answer to the shopping needs of the Indian housewife who wants a modern and convenient option in her neighbourhood, with an attractive and consistent range of products? more. assures consumers the security of knowing that they are paying the best price in the market for good quality products.

4. NATIONAL HANDLOOM CORPORATION:

32

National Handloom Corporation (A Unit of Rational Handloom Corporation Private Limited) is one of business conglomerates, it is the fastest growing groups in India since 1979. National Handloom Provide the wide range of Food items, Fmcg, Grocery, Clothes, Vegetables, Staples. NHC Provides Family Bazar, Food Cort, Online Shopping. Main Stores of NHC are in Jodhpur, Jaipur, Barmer, Ahmadabad.

33

Chapter-3 RESEARCH METHODOLOGY

34

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY: It is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by researchers, in studying our research problem along with the logic behind it. It is essential for the researchers to know not only the research method technique but also the methodology. RESEARCH PROCESS It consists of a series of action necessary to effectively carry out research and the desired sequence of these steps.

Defining the problem and research objectives Develop the research plan Collect the information Analyze the information Present the findings Make the decision

35

3.1 TITLE OF THE STUDY

COMPETITIVE ANALYSIS Competitive analysis in marketing and strategic management is an assessment of the strengths and weakness of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.

Competitors of Reliance fresh are:

More, Hyper City, Big bazaar, National Handloom.

Methodology:

First of all a questionnaire was prepared. The questionnaire was filled by visiting different stores. On the basis of questionnaire analysis was done to find out major competitors. On the basis of those findings major competitors was sorted out. Then analysis of those major competitors was performed.

On the basis of schemes and offers it was seen that customer engagement program it was analyzed that there are only two major competitors of Reliance fresh, those are Big bazaar and National handloom.

36

3.2 DURATION OF THE PROJECT:I have done training during the time period 23rd June to 7th August 2010. During the training period I worked on the COMPETITIVE ANALYSIS OF RELIANCE FRESH WITH ANOTHER RETAIL OUTLETS at Reliance Industries Limited. I made personal meeting with consumer and receive their response.

3.3 OBJECTIVE OF THE STUDY:-

To study consumer behavior and customer relationship management for the purpose of business process transformation and to analyze the competitor strides on the same parameters and price benchmarking. Data is collected to provide the administrative purpose, making decision about important issues or they may be required to pass information on to others. The best way to study the consumer behavior is to take feedback from the customers visiting the stores and data is collected about their satisfaction level, acknowledgement and problems. Through this document the company will be able to know about the customer behavior and will be able to transform its process according to expectation and desired utility of the consumers. Moreover the study covered some activities related to customer relationship management (CRM) and to build brand equity.

3.4 TYPE OF RESEARCH :There are three types of research design: 1) Exploratory research design:

ER is also termed as formulative research. This type of research is conducted when problem is not clear and it is in vague. ER is used at the initial stages of study where no or very less previous studies are available. It is conducted to clarify and define the nature of a problem. Used to increase the researchers familiarity with the problem The sample size is small. No definite recommendations are made from results. For data collection structured forms are not used.
37

2)

Descriptive Research Design- Longitudinal and cross sectional: Descriptive research is used when the problem is more clear and objective of the study is/are specific. DR is not used at the initial stages of study but used at later on stages where previous studies are available. In business DR is used to describe the characteristics of a group such as customer, market, companies etc. DR is also used to explain the association between two variables.Like people under a specific income group and place of shopping or association between age and preferences etc. The sample size is large.

3) Casual Research Design: A descriptive research suggest a relationship,if any, between the variables but the Casual research is used to identify the cause and effect relationship between variables

For example: i. ii. iii. iv. Impact of retail prices on sales Effect of advertising on sales Impact of a social movement on brand image Good nutrition leads to intelligence.

In this project we have used both the Descriptive and Exploratory research design because: In this project the problem is clear and objective of the study is specific as we have to just find out the offers and schemes of the products given by the different competitors of Reliance Fresh on weekends and other week days. We do not had previous data or any idea available with us of the schemes and the offers which were to be taken out by the different competitive stores in the coming days.
38

In this we have also prepared a questionnaire which was filled by the customers at the reliance fresh and other competitive stores. In this we have taken a sample size of 100.

3.5 Sample Size and method of selecting sample:

Data collection process starts after a research problem has been defined and research design has been chalk out. A research can collect data from two sources viz primary sources and secondary source. The selection of source depends upon nature, time and cost of research. Primary Data: Primary data are those which are collected by researcher himself for the purpose of a specific study. This is also called as first-hand data. The primary data is original in nature and highly specific to the study and unbiased.

Methods to collect primary data: 1. 2. 3. 4. Obsevation Method Survey Method Case Study Method Experimentation Method

In this project we have used the SURVEY METHOD:

In this method data are collected by asking some predetermined question to respondent is called survey research. In survey research data can be collected from following methods:

A. Through Interview B. Through Questionnaire

In this category we have opted the Questionnaire Method:

A questionnaire is the set of question to be asked from respondent in an interview. This is a popular method of data collection.

39

In this questionnaire method the response format that we have used in the closed ended question. Close Ended Question: It restricts the respondent answers to apre defined response option. It is useful when narrative information is not needed. And there is a finite number of ways to answer a question.

There are major structures for close ended question like: 1. Binary questions (Yes or no,True or False, Agree or Disagree) 2. Ranking questions (respondent require to rank the response listed on a continum basis in order of preference) 3. Multi Choice Questions (pick up one option which describe the best) 4. Checklist Questions (respondents may choose one or more of the option available)

In this we have opted the mix of all the close ended questions.

3.6 SCOPE OF STUDY

This study covers customers of Reliance Fresh in the area of Jaipur. The catchment area of the Reliance Fresh is 26 stores in Jaipur.

The study makes effort to ascertain the satisfaction level of customer of Reliance Fresh through survey so that company would be able to come up to the expectation level of its customer.

The company can come up to the expectation only by finding out the problem that customer are facing during their purchase from Reliance Fresh.

The subject has been taken for the research as it plays key role in the success of retail sector.

40

No company can think of selling their product without having satisfied customer. No company can survive in long run without coming up to the expectation level of customer. So to know the customer satisfaction level such research is very important.

In short it is the level of satisfaction that is link between end-user and company. As long as the company is able to satisfy its customer, customer would remain in the bracket of loyal customer.

Hence it is very essential to understand the customer satisfaction and to measure the satisfaction level time to time as there is always scope of improvement.

The research will also be beneficial in analyzing the overall market position of the company and measures which should be adopted by the Reliance Retail Ltd. to increase their market share in the region of Jaipur.

3.7 LIMITATION OF THE STUDY:-

1. Time factor: the time for study is less 2. Sampling may not be sufficient or appropriate as only loyal customers visit the stores. 3. The responses given by the respondents are assumed to be true however chances of getting false and biased information cannot be overlooked fully. 4. The limitation of simple random sampling cannot be avoided. 5. Being a kind of Mall intercept survey customers might be in hurry in giving the feedbacks. This proves as a limitation as they do not give true opinions for an open ended questionnaire.

41

BASIS OF THE STUDY:

In order diagnose the customer response about the reliance fresh store question about following parameters were asked:

About store Product availaibility Product quality and freshness Fruits and vegetables Staples Processed food
42

 Dairy products Non food fmcg Promotions Staff Billing

43

Chapter-4 FACTS & FINDINGS

Facts and Findings

There are about 26 Reliance fresh stores located in the Jaipur region

44

S.n o. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Tot al

Store location Shastri nagar Khirni phatak Khatipura Jhotwara Vidhya dhar nagar Pareek college Malviya nagar Raja park C-scheme Barkat nagar Maharani farms Subhash chowk Kishanpole Gopalpura Shiprapath Sanganer II New Sanganer road Brijlalpura Vijay path Vaishali nagar Mahesh nagar Kaleen Adarsh nagar Ramganj Murlipura Bhawani singh marg
4 5

Date on which survey was done

23-6-2010 24-6-2010 26-6-2010 27-6-2010 28-6-2010 29-6-2010 30-6-2010 31-6-2010 2-7-2010 3-7-2010 4-7-2010 5-7-2010 6-7-2010 7-7-2010 8-7-2010 9-7-2010 10-7-2010 11-7-2010 15-7-2010 24-7-2010 25-7-2010 26-7-2010 27-7-2010 28-7-2010 29-7-2010 30-7-2010

No. Of customers interviewed

20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 520

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

Analysis

Here in the analysis as per our field of survey, which is customer response, we have derived the percent of satisfied customer in the quality and price of the product available in the store. Products are categorized as Product Availability Fruits and vegetables Staples Processed food Dairy products
63

 Non food fmcg Also we have overall satisfaction of all the customers which includes feedback of all the store in the following categories:

Quality of Fruits and vegetables Staples Processed food Dairy product Staples

Price of Fruits and vegetables Staples Processed food Dairy product

Location of the store Availability of the product Promotions carried on by Reliance fresh Staff of the store Billing counter of the store

64

Overall satisfaction in:

Here in quality we have observed that out of 520 customer observed around 240 customers are satisfied with the quality of the fruits and vegetables and 280 says that it needs to be improved.

QUALITY O PRIC VEGE

While in price 353 customers are satisfied while 167 still feels that price Reliance is offering is not competitive. These figures as per observation are not satisfactory for Reliance fresh as their main business of the store which they started with is providing good quality of fruits and vegetables in best price.

65

Overall satisfaction in:

66

QU PRIC
Out of 520 about 426 customers are satisfied with the quality of staples. These figures also include those customer who do not purchase these products from the store so staples is not the area of concern for the Reliance fresh.

18%

SATISF

In price 411customers are satisfied while 109 are not satisfied with it. In price of staples feedback was that the price in stores does not change with the change in market so many a times prices in store are more than the market price which leaves the customer unsatisfied.

67

Overall satisfaction in:

PR QUALIT
478 customers are satisfied with quality of processed food and 473 with the price. The figures of satisfied customer is good in this category.

SATISFI

68

Over all satisfaction in:

69

QU

Dairy products overall status is not good. Out of 520 customers 312 in quality and in price 343 customers are satisfied. There is huge scope of improvement in this area. People are very much concerned about the quality of the Dairy Product.

SA

70

Overall satisfaction of customer in:

In NON_FMCG section out of 520 customers 483 customers are satisfied. So these area is less concerned and also unsatisfied customer also includes customers who do not purchase these products.

71

OVERALL SATISFACTION IN

72

These figures provide us with the operation of the store and its efficiency. In this main areas of problem are that customer are not aware about the ongoing promotion and discount and also that sometimes even the promotion are not displayed properly in the store also. Also the billing counter is most of the time busy and customer have to stand in long queue as all the counters are not in working.

Rankings to the stores:-

73

RANKING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

STORE NAME KHIRNI PHATAK SANGANERII KHATIPURA SHASTRI NAGAR PAREEK COLLEGE DURGAPURA BARKAT NAGAR BRIJLALPURA SUBHASH CHOWK ADARSH NAGAR BHAWANI SINGH MARG VIDHYADHAR NAGAR KALEEN MURLIPURA JHOTWARA VIJAYPATH C-SCHEME SHIPRAPATH GOPALPURA MAHESH NAGAR RAMGANJ NEW SANGANER RAJA PARK KISHANPOLE VAISHALI NAGAR MALVIYA NAGAR

SCORE/140 122 120 118.276 117.931 115.385 114.815 114.4 114 114.286 113.667 113.667 113.667 111 109.615 109.333 109 109 109 109 108.889 108 107.667 107.037 107 103 98.8

74

Chapter-5
75

ANALYSIS & INTERPRETATION

A) B)

It is found that major 72% of the respondents are monthly shopper and respondents are occasionally visitor as per their requirement.

28% of the

It is found that Reliance Fresh is not able to come up to the expectation level of major percentage of the respondents fully.Hence it can be said that concrete measure should be taken by the company to come up to the customer expectation. It is found that major percentage of the respondents are attracted to the Reliance Fresh because of all the factors like Price, Product Assortment, Product quality, Promotional offer, Employee Behavior. And remaining have different point of attraction. Like some attracted because of price, some because of product assortment, some because of product quality, some because of promotional offer/scheme, some because of employee behaviour etc. Only 6% of the total respondent are attracted because of Location of Reliance Fresh. Customer Service Desk plays vital role in retail. It is found that major percentage of the respondent are satisfied with the CSD. Most of the respondents are satisfied with the billing process but some of have grievance that some time when there is long queue some time there is no attendant on one or two POS (Billing counter). Major percentage of respondents are satisfied with the ambience of store. It is found that major percentage of respondents view that CSA help them during purchase.
76

C)

D) E)

F) G)

H) I) J) K)

Promotions are attractive but not so in comparison with others like Big Bazar some thing more is needed to be done regarding promotions. Major percentage of the respondents are in the bracket of some what satisfied related to gift redemption process as the process is time taking. Regarding price different respondents have different feeling but respondents feel that price is nominal here. major percentage of

Some of the customer view that they do not find each and every Product available but major percentage of the respondents say what ever product they require it is available in Reliance Fresh. Regarding F&V it is found that the distribution takes time as the van carrying F&V always come late between 10 am to 11 am. Hence supply of F&V should be on time as early in the morning as it possible. More than half of the total percentage of the respondent view that there is benefit of holding Reliance One membership card But remaining things it has no benefit. It is found that Reliance Fresh has 71% share in its catchment area.

L) M)

N)

Strategy should be made keeping in mind the age group also to increase sale. There should be something special to attract this age if sale is to be increase. Major 36% of the respondents are doing Service having one day leave in a week. It means there must be increase in footfall on that day. So there should be some thing special for them during that day. 25% of the respondents are housewife so strategy must be made to attract this segment .

O)

P) The sale of Reliance Fresh increased due to promotional event gradually.

Q)

Here in quality we have observed that out of 520 customer observed around 240 customers are satisfied with the quality of the fruits and vegetables and 280 says that it needs to be improved. These figures as per observation are not satisfactory for Reliance fresh as their main business of the store which they started with is providing good quality of fruits and vegetables in best price.

R) While in price 353 customers are satisfied while 167 still feels that price Reliance is offering is not competitive.

S) Out of 520 about 426 customers are satisfied with the quality of staples.These figures also include those customer who do not purchase these products from the store so staples is not the area of concern for the Reliance fresh.
77

T)

In price 411customers are satisfied while 109 are not satisfied with it. In price of staples feedback was that the price in stores does not change with the change in market so many a times prices in store are more than the market price which leaves the customer unsatisfied.

U)

478 customers are satisfied with quality of processed food and 473 with the price. The figures of satisfied customer is good in this category.

V) Dairy products overall status is not good. Out of 520 customers 312 in quality and in price 343 customers are satisfied. There is huge scope of improvement in this area. People are very much concerned about the quality of the Dairy Product.

W) In NON_FMCG section out of 520 customers 483 customers are satisfied. So these area is less concerned and also unsatisfied customer also includes customers who do not purchase these products.

X)

These figures provide us with the operation of the store and its efficiency. In this main areas of problem are that customer are not aware about the ongoing promotion and discount and also that sometimes even the promotion are not displayed properly in the store also.Also the billing counter is most of the time busy and customer have to stand in long queue as all the counters are not in working.

PRICE BENCHMARKING

In this section, we considered the weekend promotions. The no of articles given for the promotion are compared on the basis of their prices in different stores. The stores under consideration are: Reliance fresh More Big Bazaar National Handloom Corporation

78

The prices of the offer articles are reducted from the original price of Article compared, in this if some articles are unavailable in some stores we droped those article. After this the price per article is calculated on the basis of each store. The Store with minimum total price is ranked one in best promotion

Price benchmarking

79

PRICE
BENCHMARKING [Items on RVF Ad dated 5th June ]

Article

Reliance Fresh
Daawat Devayya Basmati Rice 5 Kg MRP Rs.496, Get R Select Atta 5 Kg Chambal Soya Oil1L R Value Sugar 1 Kg X 2 EA Free Daawat Devayya Basmati Rice 5 Kg MRP Rs.496,Get R Select Atta 5 Kg Chambal Soya Oil1L R Value Sugar1 Kg X 2 EA Free Our Price Rs 30.90 Free Sundrop Goldlite Blended Refine Oil 1 Lt BOGO Buy 1 kg Tomato, Get 1/2 kg Tomato Free Buy F&V worth Rs. 99, get Mango Dusheri @ Rs. 20 Rs.10, Buy 2 Get 1 Free MRP Rs.13x3=Rs.39 MRP Rs.60x2=Rs.120 Our Price Rs.105 for 2 MRP - Rs 35, Our Price - Rs 30/MRP Rs 75, Get Maggi Masala Noodles 90gm Free MRP Rs 75, Our Price Rs. 65 MRP Rs.75 onwards, Our Price Rs. 49 MRP Rs.27, Buy 3 Get 1 Free MRP Rs.34 , Buy 3 Get 1 Free MRP Rs.25 , Buy 3 Get 1 Free MRP Rs.25 , Buy 3 Get 1 Free MRP Rs.175, Our Price Rs.131.25 MRP Rs.295, Get Surf Excel Detergent Bar 400 Gm Rs.40 MRP Rs.77, Our Price Rs.57 MRP Rs.135 onwards , Buy Axe Get coke/Thums Up Can worth Rs.20

Big Bazaar

JAIPUR More

NHC

Daawat Devayya Basmati Rice 5 Kg

NA

Devaya345,Rojana248,super-600

NA

Chambal Soya OIL 1 LTR PP Loose Chana Dal1 Kg HIMALAYAN CROWN REGULAR BASMATI RICE 1KG Mahakosh Soyabean oil1 LTR PP Tomato 1kg (Rs.12) F&V ( Rs. 99)

Rs.50 save rs 25=MRP.75 Rs.35(unpack) Rs38(Pack) NA Rs 59 save Rs13 MRP 72 Rs.11 per Kg No Offer NA NA 1 -Rs 60 2Rs97(save Rs 23) 2.25 ltr MRP=120 NA

Rs.55 save Rs, 20 Rs44 save Rs 10 NA Rs.51 save Rs21 Hybrid-11, local-13 per kg. No Offer Rs.10 Rs. 10

Rs50 Rs32 NA Rs49 11 per kg No Offer (2+1) pack of Rs.19 N.A.

Britannia Little Hearts 60gm Cadbury Dairy Milk Wowie 22gm Coca Cola,Limca,Fanta,Sprite,ThumsUp 2lt Amul masti butter milk spiced 1ltr Tropicana Premium Juice 1Lt (Select Variants) Real Juice 1Lt (Select Variants) B Natural Juice 1Lt (Select Variants) Lux Strawberry & Cream Soap 150 Gms Liril 2000 Soap125 Gms Hamam Sampoorna Snan 150 Gms Rexona Cucumber Soap 150 Gms Surf Excelmatic TopLoad 1kg

2.25 lt. Rs.104(two) Rs.35

53 (2.25) (1 bottle) NA

1pack -75,2 pack-125 1(pack) -75 and 2(pack)-130 NA Rs.27 NA Rs25 rexona(aloe vera148gm) Rs.27 Rs. 175 Rs.295 Rs.77 Rs. MRP 160 save Rs 25=Rs135

Rs85(2 piece) Rs. 75 NA Rs.27 per pack Rs.32 per pack

MRP Rs.25 , Buy 3 Get 1 Free

NA Rs.75 NA NA NA NA NA Rs.167 Rs. 285 NA

NA Rs.175 Rs.275.5 (save RS.14) ,Free ship of rs.27 Rs. 77 Rs.160 save Rs 10= Rs150

Surf Excel Quickwash 2kg Pepsodent Germicheck Valuepack 150+150 Gms

Axe Deodorant 150ml (Variants)

NA

80

Price benchmarking

PRICE Article

BENCHMARKING Reliance Fresh

Daawat Devayya Basmati Rice 5 Kg MRP Rs.496, Get R Select Atta 5 Kg Chambal Soya Oil 1 Lt R Value Sugar 1 Kg X 2 EA Free Daawat Devayya Basmati Rice 5 Kg MRP Rs.496, Get R Select Atta 5 Kg Chambal Soya Oil 1 Lt R Value Sugar 1 Kg X 2 EA Free Our Price Rs 30.90 get reliance select besan 500gm free BOGO get water melon free worth rs.10 Buy F&V worth Rs. 99, get Mango Dusheri @ Rs. 20 MRP Rs.10, Buy 2 Get 1 Free MRP Rs.10*2 =Rs.20 save rs 5 MRP Rs.60x2=Rs.120 Our Price Rs.105 for 2 get sugar worth rs.30 free MRP.-93 save rs8 our price 85 MRP. Rs 54, our price 45 Save Rs.9 MRP Rs.27, Buy 3 Get 1 Free BOGO MRP Rs.175, Our Price Rs.131.25 MRP Rs.77, Our Price Rs.57 MRP Rs.135 onwards , Buy Axe Deo, Get coke/Thums Up Can worth Rs.20

[Items on RVF Big Bazaar

Ad dated 12th June ] More

JAIPUR NHC

Daawat Devayya Basmati Rice 5 Kg

Rs.496 buy 1 get 1 free

DevayaRs.Around 300

NA

Chambal Soya OIL 1 LTR PP Loose Chana Dal1 Kg Fortune soya oil 5ltr. Mahakosh Soyabean oil1 LTR PP Mango Dushari1kg (Rs.32) F&V ( Rs. 99) Britannia Little Hearts 60gm Parle monaco smart chips Coca Cola,Limca,Fanta,Sprite,T humsUp 2lt Red Label 950 gm Britannia cheese slice plain Dettol soap 70gm Lux Strawberry & Cream Soap 150 Gms Expelz/Mopz cleaner 500ml Surf Excelmatic TopLoad 1kg Pepsodent Germicheck Valuepack 150+150 Gms Axe Deodorant 150ml (Variants)

RS.50 save rs 25=MRP.75 Rs.35(unpack) oil+India gate basmati rice+1 kg sugar Rs.915 rs 49 save rs 23 = MRP72 Rs. 30 no offer Rs10 NA 1 - RS 60 rs.240 , 1 kg sugar free Rs. 99 Rs.45 pack of 3 Rs,27 per pack NA Rs. 175 Rs,77 RS. MRP 160 save Rs 25=Rs135, Rs 150(diff. variant)

Rs.51 save Rs 24= MRP 75 Rs. 34 MRP RS.375 Rs.51 save Rs21=MRP=72 Rs.37 no offer Rs.10 NA 2.25 lt. Rs.104(two) Rs. 240 NA rs.45 of 3 pack

Rs.50 save Rs.25=Mrp75 Rs. 37 Rs.276 save Rs99=MRP=375 Rs49 save Rs23=MRP 72 Rs.35 No Offer (2+1) pack of rs.19= 3 of Rs.19 N.A. 53 (2.25)(1 bottle) Rs229 save Rs11= MRP240 NA rs.45 pack of 3 pack of 4=Rs.84 NA Rs. 175 77 Rs.143,Rs.152(d iff. variants)

pack 0f 4= 88 NA RS.175 Rs. 73 Rs.25 off rs.135 Mrp=160

81

Price benchmarking

Articles
Loose Chan

Mango Dush (Rs.32) Britannia Lit

Price benchmarking
82

According to data it is clear that the store which is providing all the common articles in lowest price is best. The Ranking according to the data is: 1. Reliance 2. Big Bazaar 3. National handloom Corporation 4. More.

COMPETITORS ANLYSIS
83

S.NO

P A

1
In competitor analysis we rated the competitor on the same parameters which we used for customer response and then then compaired. The result came out to be : A) BIG BAZAAR B) HYPERCITY C) RELIANCE FRESH D) NHC E) MORE

Lo

2 3

Pr

84

Chapter-6 SWOT ANALYSIS

6.SWOT
Internal
85

Strength: 1. Brand reliance 2. Maximum number of retail store: Reliance fresh has maximum number of retail stores
i.e. 26. Thus reaching the maximum population which gives a great edge over the competitors.

3. Fruits and vegetables are cheap: Reliance fresh provides the cheapest f n v in the market
this is the usp of RF.

4. CSD and announcements : This is a unique feature of reliance fresh stores GRAHAK
DEVO BHAV is the tag line on which RF works and customer service desk is provided at each store along with regular announcements of the schemes and discounts this delights the customers.

5. Variety and range of products: RF is adding more and more products at its store and
more range of products so that customer finds easy shopping under one roof.

6. Promotional schemes: Promotional schemes and discounts are good at rf. The discounts
and other schemes are provided for the customers for good shopping experience.

7. Backward integration of reliance: Reliance has policy of backward integration means

either it directly acquire product from the manufacturer or itself produce the product so as to reduce the middleman expenses and to maintain the quality of the product as per its standard.

8. Forward integration at reliance: It makes the enables the direct reach to customer and
reduce the distributors cost.

9. Reliance select, reliance value, dairy pure products: There are some of the products of
reliance fresh which are preferred by the customers.

10.

Timings of the store: RF has this specialty its store opens at 7:30 in the morning. This gives it an edge over its competitors as customers need the basic things of their need like milk, vegetables at early hours.

Weaknesses:
1.

F N V: In this section customer specify many problem like unsorted, stale vegetables unavalaibility of seasonal fruits and vegetables. Rates : Some products are sold at MRP which makes it price non-attractive. Staples are expensive: Price of staples are not changed with change in market price. It enabled problems : Problems of membership cards, problem in updating scheme, biling problems.
86

2. 3. 4.

5.

Stocks outs and lack of sorting : These are very frequent at the stores.

External

Opportunities:
1.

Increasing market for organized retailing: People are now interested in shopping from retail stores rather than traditional kirana stores. Providing all things under one roof is what customer looking for: people do not have time, so they need all things. Customer activities: Customer has a large number of options today. All they look for is unique benefits which if any stores provide they would go for it. Promotional activities: Providing more and more discounts and schemes attracts Indian customers very much so RF should try to provide schemes and offers to customers. Good services: As products offered by every retail outlet are more or less the same. Difference can be created by providing good services.

2.

3.

4.

5.

6. Changing lifestyles, mind sets and increasing disposable income of customers.

Threats:
1.

Other market players entering the market in a large number: A large number of retail outlets like Spencers, 6-10 stores, India bulls mart, National Handloom Corporation, Aditya Birla, More etc are there in the market which is giving competition to the Reliance fresh . Increasing customer expectation: Expectation of customer is increasing and they demand more benefit at less price. Government policies and taxes: Any policy change of the government can heavily influence the running business as is the case of west Bengal where many retail businesses were not allowed to open the retail stores especially reliance fresh.

2.

3.

87

Chapter-7 CONCLUSION

88

CONCLUSION

Need for government regulation

Corporate retailing in India is witnessing considerable growth. The share of corporate retail in overall retail sales is projected to jump from around 3% currently to around 9-10% in the next three years. A number of large domestic business groups have entered the retail trade sector and are expanding their operations aggressively. Several formats of corporate retailing like hypermarkets, supermarkets and discount stores are being set up by big business groups besides the ongoing proliferation of shopping malls in the metros and other large cities. This will have serious implications for the livelihood of millions of small and unorganized retailers across the country. Large organized retail is controlled across the world by many governments. An appropriate regulatory framework for the organized retail sector in India has to be framed keeping in mind the Indian specificities. India has the highest shop density in the world with 11 shops per 1000 person. If the corporate retail starts spreading in India without any control and if the Government brings in Foreign Direct Investment in the sector, the potential social costs of the growth and consolidation of organized retail, in terms of displacement of unorganized retailers and loss of livelihoods will be enormous. Regulation needs to be more stringent and restrictive. In this wake it is important to take note of the recent meeting which was held by the Indian Government with the EC officials in Brussels on june28- 29 2007. According to trade experts India could technically open a preferential FDI window for European retail companies that are clamouring for an increased market access and a higher investment map. Through this preferential treatment being given, European retail majors like TESCO and Carrefour may find their way in to the Indian markets. The policy on FDI on retail will stand no good to such an entry through preferential treatment. Once the market share of the corporate retail players increases the unorganized retail in the country is set to experience a slide in their sales. According to an NSSO survey there is already a significant decline of more than 12.5 lakhs in the number of self-employed retailers in urban India between 1999-2000 and 2004-05. With the coming in of more and more bigger players it will be almost impossible for the small unorganized retailers in the country to do business. That will only lead to more social tension, violence, as witnessed in the attack on Reliance fresh in Ranchi, and also economic deprivation and joblessness. About 20 million urban workers and 12 million rural workers depended on small retailing in India.

Threat to the agricultural sector

With the coming in of big retail there will be more instants of contract farming, which in turn will lead to monopoly buying powers and monopolistic control over the farmers and their products.
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Contract farming is a system for the production and supply of agricultural produce under forward contacts between farmers, suppliers and buyers. The suppliers of the inputs and the buyers of the produce will be the big retail companies. In contract farming, the contract basically entails that a cultivator would sell his crops to the company that will leave the suppliers with no choice at all. They will have to be satisfied with the price the company gives them for the produce. The contract can give the company the power to make the choice of refusing to pick the contracted produce and can even be penalized for defaulting the commitment. If such uncontrolled retail is allowed, it will lead to more such situations of more and more land coming under contract farming. There will be further escalation of the real estate prices owing to the increased demand in lucrative areas by the big retailers who have deep pockets to fund such acquisitions. Given the unplanned and chaotic path of urban development witnessed in India over the past decade and a half, and the pathetic state of urban infrastructure, the proliferation of large format retailers will only accelerate the undesirable trends of predatory real estate development and unsustainable pressures on urban infrastructure and the environment. For the consumers rather than enhancing choice, especially the lower income groups, proliferation of large format retail stores would kill competition, lead to closure of neighbourhood markets and make consumers solely dependent upon the organized retailers at a later stage. India will not be able to withhold the fall out of so many people being thrown out of employment. The government should come out with a proper policy to rein in such unrestricted growth of corporate retail in the country taking cue from the experiences of other countries where big retail have created havoc with the society and economy of the country.

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Chapter-8 RECOMMENDATION & SUGGESTIONS

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Recommendation and Suggestions

RECOMMENDATIONS: To come up to the satisfaction level of customer it is very necessary to consider the points written below.

There should be customer Feedback box in the name of Customer Complain box. It must be accessible only to H.R. One person should be deputed to handle it daily. By doing this customer grievances can be monitored closely. (One of the most efficient way to achieve customer satisfaction). If it is done more than 50% of the problem is solved. CSD should aware customer regarding Customer complain box. Some of the CSA behavior is very rude. These CSA should be monitored closely and should be trained properly as they foment dissatisfaction among customers which can cause decrease in sale. It can also play the role of negative word of mouth. F&V supply always delay by 1.30 hr to 2hr in the morning during peak hour of sale. F&V must reach to the store floor befre 9 am. Hence distribution of F&V is needed to be improved or monitored. Most of the promotional offer confused customer. It also cause dissatisfaction. Communication of promotional offer must be clear to customer. Regular announcement of promotional offer from CSD is needed. As it is found that CSD has lackluster approach. It announces but announcement is not frequent. Watches and Cosmetics should be in one side and should not surround by apparel especially in case of Cosmetics then only its sale would increase. There is no proper arrangement to display the cosmetics to customer. There should be some furniture so that sales girl can show Cosmetics to customer comfortably and customer can feel easy to purchase it. Then only customer can satisfy and sale of Cosmetics can increase. Reliance should give those offers which can facilitate more money saving as the customers are price sensitive. A better strategy to satisfy customer is only the way to gain customer attention and to penetrate more in its own catchment area.Strategy must be in all area like Promotional offer/Scheme, Product Pricing, Employee behaviour, Billing process, Product Assortment, Product Quality, Service quality in terms of RATER etc.

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SUGGESTIONS:
NEGATIVE SUGGESTIONS FROM CUSTOMERS

1. No announcement about the schemes 2. Products on which schemes announced were not available. 3. Promotions are not well communicated. 4. Less no of cash counters are working 5. Products are selling on MRP. 6. Some stores are congested. Very less space to move and for the products. 7. Quality of Dairy products and Fruits n Vegetables are not Satisfactory.

POSITIVE SUGGESTIONS FROM CUSTOMERS

1. Staff is cooperating. 2. No. of stores are quite satisfactory 3. Product range is good 4. Store locations are very good 5. Products are available

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Chapter- 9 APPENDIX
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QUESTIONNAIRE

Customers: 1.About Store a).Are you satisfied with the Store Location in terms of Convenience of Access? b)Do you find the store ambience good c) Are you satisfied with the store cleanliness and hygiene? d)Do you find the parking facility convinient. 2.Product Availability a)Were desired product available? b)Did the shelves look full? c)Were the products easy to access?
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1 2 3 4 5 6 7 8

d)Were products of same group placed together? Was phone home delivery no. displayed clearly at the store? 2.Product Quality/ FreshnessA. fruits and vegetables Are you satisfied with the quality & freshness of vegetables&fruits being offered? Do you find the price of vegetables and fruits appt. Are you satisfied with the availability of seasonal fruits and vegetables? B. Stapies Are you satisfied with the quality & availability of different staples being offered? Do you find the price of different staples appt. Do you prefer our private label staples over others?

Did you get more than one choice of pack size? C.Processed Food Are you satisfied with the quality & availability of different Processed Food being offered? Do you find the price of different Processed Food apt. Do you prefer our private label Processed Food over others? Did you get more than one choice of pack size? D.Dairy Products Are you satisfied with the quality & freshness of different dairy products being offered? Do you find the price of different dairy products appt.

CUSTOMERS Do you prefer our private label dairy products over others? Did you get more than one choice of pack size? E. Non Food FMCG Do you get different brands of products over here
Do you agree that our private range of products is better than other brands

Did you get more than one choice of pack size? 3.Promotions a)Do you get attracted by different promotional schemes being offered b) Were the promotions well displayed? c) Was the promotion easy to understand? d) Do you participate in different events being organized by us.
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4.Staff a) Were you greeted by employees in the store? b) Were all staff courteous and helpful? (In case of query/ assistance sought) c)Did at least one employee proactively inform you of on-going promotions and offers?
d) Did at least one employee make suggestions to cross-sell/up-sell?

5.Billing a) Do you find the cash counters hassle free? b) Are different modes of payment available? c) Did the cashier have loose change? d) are you satisfied with the benefits of reliance one membership card?

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Chapter- 10 BIBILIOGRAPHY

BIBLIOGRAPHY

The followings have proved to be valuable and helpful to me while preparing the report.

Marketing Management: -

Philip Kotler

Research Methodology: -

C.R Kothari

Retailing Management: -

Levy Weitz

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Internet website

www.ril.com

www.google.com

www.answer.com

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