Radheju Final

8/7/2019 Radheju Final

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A Report on Customer Perception and Store Operation

At

Reliance Fresh

Submitted in partial fulfillment of the requirements for the award of

The degree of

Master of Business AdministrationSubmitted to:

Punjab Technical University (Jalandhar)

By:

Dwarka Sharma

Regd No:

Under the guidance of

N S R Murthy, Assistant Dean

#70, 2nd Main Road, 3rd Cross, Kanaka Nagar, Nagawara,

BANGALORE 560 032

2009 11


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DECLARATION

I hereby declared that this project titled A Report on Customer perceptionand Store operation at Reliance Fresh , is submitted to the Punjab Technical

University as a partial requirement for the award of Degree ofMaster of Business

Administration, during the year 2009-2011.

It is the record of an original & independent study carried out by me, under the

able guidance and supervision of Professor. N.S.R Murthy of International

Institute of Business Studies, Bangalore. This project report has not been

submitted earlier by me or by anybody else for the award of any other degree in

any University in India or abroad.

Date : Signature of the Student

Place : ( DWARKA SHARMA )


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ACKNOWLEDGEMENT

I would like to express my sincere thanks to the Director & Management of

International Institute of Business Studies, Bangalore, for their valuable guidance

& support. I am extremely thankful & grateful to Prof. N.S.R Murthy for his / her

constant guidance & encouragement throughout the study.

I would like to express my sincere thanks & gratitude to Mr. (Hemanth Nagraj), for

his / her support & guidance during my stay in their organization.

I would also like to express my devoted thanks to my beloved parents & my

friends for their relentless support & assistance to make this project a reality. Last

but not the least; I would like to thank all my respondents for their co-operation &

participation in data collection, which has enabled me to complete the project

successfully.

Date : Signature of the Student

Place : (DWARKA SHARMA)


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Executive Summary

Relevance of any data is a quality emphasized in every accounting framework. Relevance

belongs among the qualitative characteristics and consists of predictive value, confirmatory

value, and timeliness.

Reliability can be stated as the quality of information that assures that information is reasonably

free from error or bias and faithfully represents what it purports to represent. With respect to

measures, it states that the reliability of a measure rests on the faithfulness with which it

represents what it purports to represent, coupled with an assurance for the user, which comes

through verification, that it has that representational quality.

So, the crystallization of the data with respect to relevance and the level of reliability of the same

have been undertaken.


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TABLE OF CONTENT

SL No. Particulars Page No.

1 Introduction 6-7

2 Research Methodology 8-11

3 Review of Literature 12-26

4 Profile of the Company 27-35

5 Interpretation and analysis 36-53

6 Findings, Conclusion and

Recommendations

54-70

7 Annexure 71-73

8 Bibliography 74-74


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Abstract

The project was done at Reliance Fresh convenience store of Reliance Retail. This project is allabout to customer perception and store operations at Reliance Fresh. The mantra for marketing

professionals is service, service and more service! Thats right! One of the best ways of ensuring

your customers keep coming back to you is providing impeccable service. This includes

everything from service at the point of sale to after-sales service, which builds a lasting

relationship with the customer.

Perception is the act of discerning, realizing, and becoming aware of through the senses. The

customers perception is what counts, not what we think it is.

The art of marketing is the ability to differentiate products and services in a way that attracts and

retains customers. In order to do this well, having a handle on how the customer thinks and

feels is essential. There is no substitute for gauging how customers think and feel than by

assessing customer perception through intelligently designed and unbiased initiatives.

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

and dairy products and a whole lot of other categories at very competitive prices. All the stores

opened have an average area of about 1,800 sq ft and an average of about 20 sales associates

attending to customers in each store open from 8 a.m. to 10 p.m. on all seven days of the week.

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.


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There has been a great impact by the unorganized sector in the country. Customer prefer more

unorganized sector than the organized. 98% of the total retailing is contributed by the

unorganized sector and remaining by organized. So there is a huge difference lies here which

needs to be taken care.

Even though customer have more benefit in buying goods from super market and hypermarket as

they will be getting discounts, coupons, membership card, and buying will be easy as they can

buy all types of goods at one place, instead customer prefer to go for unorganized sector. It is

mainly due to organized sector does not have more concentration on the rural market; it is manly

focusing on urban and semi urban area. It can be concluded that if organized sector will focus on

the rural area, we could see the increment in its market share.


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Research Mothodology

Types of Research

Descriptive Research: Descriptive research embraces a large proportion of marketing research.The purpose is to provide an accurate snapshot of some aspect of the market environment. Indescriptive research, hypothesis often will exist, but them tentative and speculative.

Causal Research: When it is necessary to show that one variable causes or determines thevalues of other variables, a casual research approach must be used. Since data collection methodis from surveys,Hence Descriptive type of research is used for analysis of the data.

Exploratory Research: Exploratory research is used when one is seeking insights into the

general nature of the problem, the possible decision alternatives, and relevant variables that need

to be

Data Collection Method

Basically there are two types of data which are used in marketing research process.

1. Primary Data

A. ObservationB. InterviewC. Questionnaires

Interview: Interview is one of the chief means of collecting data in research process.

Interview may be defined as a systematic conversation initiated for a specific purpose and focus

on certain content areas.

Surveys: There are mainly three types of surveys, depending upon the method of data

gathering used: Personal surveys, telephone surveys and mail surveys.


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Advantages of Surveys

1. Wider Distribution

2. Less Distribution bias3. Thoughtful reply

The primary data under processing is collected from both direct filling the questionnaires and

through telephone interviews also.

2. Secondary Data: The data once collected by once person become the secondary data ifused by another person.

Sources of Secondary Data: The various sources of data are as follows:

1. Bibliography2. Directories3. Televisions4. Newspapers5. Journals6. Websites

The Secondary data like information of existing customers, information about company has been

taken from company website, companys yearly chronicles and employees of the company.

Sampling

A sample is a part of population. The sample should be representative of the population and the

information obtained must be reliable. In any survey where reliability is desired, the errors and

variances have to be controlled, measured and interpreted.


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RESEARCH DESIGN

The type of Research Design will be Descriptive

The types of Primary Data collection procedures that would probably be used.

Population Dealers, distributors, fleet owners, companys representative in Ranchi.

Process Sampling

Method of data collection Typed Questionnaire

DATA COLLECTION:

PRIMARY DATA Collected from consumers and suppliers, reliance fresh employees

SECONDARY DATA Collected from internet, articles, and news papers.

The information is the major part of any research proposal to attain certain objectives we require

both secondary and primary data which is discussed above

LIMITATIONS:

Every research has certain limitation. There is no research is free from limitation.Same way my

research also has some limitations:-

1. Lack of investment

2. Lack of time

3. Lack of expert advise

4. Lack of Primary Data

5. Data basically limited to Bangalore city only.


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NEED OF STUDY:-

1. To be aware about the customer perception about the company and strategy required to

be benefit from the same.

2. To know the store operations of the company and make some recommendations for

betterment.

3. To know the facilities or services offered by the company to retain customer and make

them loyal for the company.

4. To know the factors which make Reliance Fresh different from its competitors and have

good image about the company in customers mind.


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Review of Literature

Who is a customer?

A customer, also called client, buyer, or purchaser, is usually used to refer

to a current or potential buyer or user of the products. This is typically through

purchasing or rentinggoods or services. The slogans "the customer is king" or "the

customer is god" or "the customer is always right" indicate the importance of

customers to businesses - although the last expression is sometimes used ironically.

What is Perception?

Perception is the process of attaining awareness of understanding of sensory

information, in order to understand and describe process of perception we have to

find all input and out of information.

Customer Perception:

Perception is the act of discerning, realizing, and becoming aware of through the senses. The

customers perception is what counts, not what we think it is.

The art of marketing is the ability to differentiate products and services in a way that attracts and

retains customers. In order to do this well, having a handle on how the customer thinks and

feels is essential. There is no substitute for gauging how customers think and feel than by

assessing customer perception through intelligently designed and unbiased initiatives.

To understand this point it helps to consider perception categorized into (4) quadrants (Table 1):


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Table 1

How a Graphic Arts

Company views itself

How the customer views the

Graphic Arts company

The real view of the

Graphic Arts company

How a Graphic Arts Company

thinks the customer views the

company

The first quadrant has value, but includes obvious blind-spots. Some of us score higher in self

objectivity than do others. The second quadrant is the one that counts most and the goal of

assessing customer perception is to develop as accurate a picture of the customers view as

possible. The third quadrant is a companys perception of how its customers perceive it. Bias

creeps into this quadrant as well. The fourth quadrant is an amalgam of 1 3 and deals with a

philosophical discussion similar to, If a tree falls in the forest .

In practice, our profile of customer perception resides in the third quadrant because our ability to

vision, listen, and interpret is in itself a perception which carries filters. A quick review of

concepts related to perception helps attain higher degrees of accuracy when assessing customer

perception because it is wise to remember that beauty is in the eyes of the beholder and in this

case the beholder writes the check.

When we have completed the assessment activity,

what information about how our customers perceive us

do we want to ensure that we obtain?


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Building Customer Perception and loyalty

1. SERVICE NETWORK:The mantra for marketing professionals is service,

service and more service! Thats right! One of the best ways of ensuring your

customers keep coming back to you is providing impeccable service. This includes

everything from service at the point of sale to after-sales service, which builds a

lasting relationship with the customer. Most manufacturers of white goods

understand relationship marketing like no one else. The peculiarity lies in the

product itself, where it might need to be serviced long after it is bought. Moreover,

the purchase might have taken place somewhere different from where the service is

required. Companies like Eureka Forbes and Whirlpool pride themselves on superb

customer service satisfaction levels. They manufacture a wide range of durables

which can be serviced at various locations throughout the country.

2. QUALITY CONTROL:You never get a second chance to make a first

impression was the tagline for Head and Shoulders shampoo years ago.

Impeccable service too cannot save you if you do not deliver a good quality

product each and every time. This is true especially for restaurants, where the food

served has to be of the same quality time and again to keep customers coming back

to you. Here, quality is conveyed via word-of-mouth. One bad experience is

enough to ruin the impression forever.


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3. CONSTANT INNOVATION:Once a customer, always a customer, is no

longer true in these days of fluctuating brand usage. Customers now have more

choices than before and are more willing to try out new brands. This fickle-minded

buying warrants a constant focus on the changing mindset of the customer. The

brand too has to change with customer tastes. Nestle India does it best with its

brand of Maggi food products. They now have variants for their instant noodles

like Dal Atta Noodles and Rice Noodle Mania. Their competitors in the food

segment, HLL (Hindustan Lever Limited, now called Hindustan Unilever Limited)

tickled the Indian palate by making multiple variants of the traditional Tomato

Ketchup in flavors like mint, tamarind and chilli. Amul, which has a strong

presence in the ice-cream segment, sensed the need to keep the health-conscious

customer in its kitty by adding the new Probiotic range of sugar free ice-creams!

4. DIVERSIFICATION INTO SIMILAR PRODUCT LINES: If a customer

feels that Dove Soap is the best for her skin, why not make her think the same way

about shampoos as well? Thats exactly why the brand name has now been

extended to shampoos in the Indian market. Stretch the loyalty and benefits

associated with a brand to include other similar products.

Lotus Herbals, for instance, makes chemical-free skincare products like creams,

lotions and sunscreens. It has a strong base of happy customers because of its USP

- herbal ingredients. Now, it has also launched its herbal range of cosmetics on

the shelves.


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5. STRONG DISTRIBUTION CHAINS:If I want to buy a product, it must

simply be available. For fast moving consumer items, it means availability at the

nearest grocer. From personal experience, I can tell you how important this is. I

like Nestls Munch chocolate a lot, but many a time I end up coming home with a

Cadburys Perk in hand, due to unavailability of the other brand. Perk tastes just as

good, and pretty soon I ended up asking for Perk at the local grocery shop instead

of Munch. This shows how just availability or lack of it can affect the customers

brand choices forever. For a long period Amul faced a similar problem with its

products. Originating from Gujarat, the availability of its products was restricted to

the home state and a few neighboring ones. Consciously, after a lot of effort Amul

successfully expanded its distribution chains throughout the country. An effective

media campaign helped pass this advantage on to the customers. If you want

people to keep buying your brands, make sure the grocery store around the corner

stocks it.

6. REINFORCE THE DECISION: Lastly, after people have tried your product,

tell them that they have made the right decision. What better example to give you

than the Pepsi ad which said, Yehi hai right choice baby, aha! You will have

customers hanging on to you forever. The human mind looks for signals to

reinforce the decision made by it, to tell itself that yes, you were correct! Its no

wonder then that the LOreal ad shows Aishwarya Rai spouting the phrase

Because youre worth it!

Benefits

Customer loyalty towards your brand can give you the advantage of decreased

cost of advertising.


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You can also increase the price of your brand to capitalize on the same.

Loyalty Sales % = Sales through the Loyalty Card X 100

Total Sales

Customer Loyalty programs need to stay fresh is easy to administer, and tightly

integrate with the central price file and all the customer touch points. Successful

Loyalty programs pinpoint value to a specific group of consumers. The continuous

change in programs keeps consumers engaged and avoids the attitude of

entitlement.

The Retalix customer loyalty application suite, however, is not your run-of-the-

mill solution. It is comprehensive, easy to administer, and effective.

Retalix Loyalty is a real time, online, centralized system that manages the Loyalty

and Promotional marketing campaigns for Grocery and Convenience Store

Retailers.

Coupled with the Retalix 1-to-1 Targeted Marketing Analysis tool, a retailer can

easily reward customers according to their specific taste and loyalty level via a

multitude of reward programs to keep it fresh and fun.

Retalix Loyalty includes:

Integrated POS and Pump interface to collect data, print Loyalty program

information on the receipt, display messages to the cashier and customer,


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discount items, and redeem e-gift certificates, tender credits, and loyalty

points

Net-based online communications architecture

Multiple set of basic programs (Charity, Continuity, Sweepstakes, e-

Coupons, Points)

Tiered pricing rewards (electronic discounts) including fuel, according to

loyalty levels

Reports to measure loyalty not only by gross spending but also by gross

profit

Reports to measure program participation by store and chain

Net-based Centralized Management System

Retalix 1-to-1, Targeted Marketing

Why the card is not being used?

Customer forgets their card.

Customer doesnt know the benefits of card.

Quality of temporary card is very poor.

Cashier forgets to ask about the card.

Many unwanted details are to be filled in form by customer.


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1.2 - RETAIL IN DETAIL

The Indian Retail market is worth a whooping 93000 crores. If one has to

divide between the organized and unorganized sectors the major contribution

comes from the unorganized sector, which contributes close to 98% of the totalretail market. The balance of 2% amounts anywhere between 18-2000 crores.

Factors that influence the growth in retail

To summarize the top 6 factors that drive the growth of the retail

industry in India would be as follows:

The Demographics

Lifestyles

Needs and Desires

Shopping Attitudes and Behavior

Retailers action

Environmental Factors

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

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

recapitulated as under:


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Quality products

Competitive prices

Wide range to choose from

Employment opportunities that are created

The economy would experience sea of change and

Would mean a WIN WIN situation to everyone

1.3 RETAIL TERMINOLOGIES

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

terminologies, which are in use on a day-to-day basis. Few samples of them would

include the following:

Till - The cash point

Tender - The type of payment the customer is making

SKU - Stock keeping unit

Merchandise Credit - Credit note

Assortment - Range of products and so forth

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

be placed on each shelf.


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

by the customer in the front side.

Top Retailer Worldwide

Rank Retailer Home Country

1 Wal-Mart Stores, Inc. U.S.A.

2 Carrefour Group France

3 The Kroger Co. U.S.A.

4 The Home Depot, Inc. U.S.A.

5 Metro Germany

2.2 Indian Retail Industry:

Indian retail industry is the largest industry in India, contributing to over 13% of the

country's GDP. Organized retail industry in India is expected to rise 35% yearly being driven by

strong income growth, changing lifestyles, and favorable demographic patterns. It is expected

that by 2011-12 modern retail industry in India will be worth US$ 590 billion. It has further been

predicted that the retailing industry in India will amount to US$ 833 billion by 2013 and US$ 1.3

trillion by 2018. Shopping in India has witnessed a revolution with the change in the consumer

buying behavior and the whole format of shopping also altering. Industry of retail in India which

has become modern can be seen from the fact that there are huge shopping centers, malls and

sprawling complexes which offer food, shopping, and entertainment all under the same roof.


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Indian retail industry is expanding itself most aggressively; as a result a great demand for real

estate is being created. Indian retailers preferred means of expansion is to expand to other

regions and to increase the number of their outlets in a city.

In the Indian retailing industry, food is the most dominating sector and is growing at a

rate of 9% annually. The branded food industry is trying to enter the India retail industry and

convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket

consists of non- branded items. Indian retail industry is progressing well and for this to continue

retailers as well as the Indian government will have to make a combined effort. Indian retailing

industry has seen phenomenal growth in the last five years. Organized retailing has finally

emerged from the shadows of unorganized retailing and is contributing significantly to the

growth of Indian retail sector. The India Retail Sector Analysis report helps clients to analyze

the opportunities and factors critical to the success of retail industry in India.

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.

2.2.1 Key Challenges:

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:

o Investigate alternative trading areas.

o Determine the type of desirable store location


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o Evaluate alternative specific store sites

Merchandise:The primary goal of the most retailers is to sell the right kind of merchandise.

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.

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

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, which is influencing the retail industry to a

great extent, a variety of other factors also seem to fuel the retailing boom.

2.2.2 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.


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1.4 RETAILING FORMATS IN INDIA

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

metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00000

sq ft and above. They lend an ideal shopping experience with an amalgamation of

product, service and entertainment; all under a common roof. Examples include

Shoppers Stop, Pyramid, and Pantaloon.


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

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

Planet M, are focusing on specific market segments and have established

themselves strongly in their sectors.

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

discounts on the MRP through selling in bulk reaching economies of scale or

excess stock left over at the season. The product category can range from a varietyof perishable/ non perishable goods.

Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a

variety of consumer needs. Further classified into localized departments such as

clothing, toys, home, groceries, etc.

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

business from exclusive brand showrooms. Among these, the biggest success is K

Raheja's Shoppers Stop, which started in Mumbai and now has more than seven

large stores (over 30,000 sq. ft) across India and even has its own in store brand for

clothes called Stop!.

Hyper marts/Supermarkets: Large self service outlets, catering to varied shopper

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

streets. These stores today contribute to 30% of all food & grocery organized retail


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sales. Super Markets can further be classified in to mini supermarkets typically

1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to

5,000 sq ft. having a strong focus on food & grocery and personal sales.

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

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

products and are usually open for extended periods during the day, seven days a

week. Prices are slightly higher due to the convenience premium.

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

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

Metros.


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FOUNDER PROFILE

"Growth has no limit at Reliance. I keep revising my vision.

Only when you can dream it, you can do it."

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

BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED

Mukesh D. AmbaniChairman & Managing Director

Nikhil R. Meswani

Executive DirectorHital R. Meswani

Executive DirectorH.S.Kohli

Executive Director

APKA FRESH APKA PADAOS ME

Indias Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been first off the

blocks by launching its first Reliance Fresh outlets in Hyderabad,


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Reliance fresh 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 2011. The super

marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products

and also will sport a separate enclosure and supply-chain for non-vegetarian products. Besides,

the stores would provide direct employment to 5 lakh young Indians and indirect job

opportunities to a million people, according to the company. The company also has plans to trainstudents and housewives in customer care and quality services for part-time jobs.

Reliance Fresh will

` Forge strong and lasting bonds with millions of farmers and will transform the

Relationship with customers to a new level

Offer unmatched affordability, quality, convenience, service and choice

Offer our customers the widest range of fruit and vegetables at the best prices in

the neighborhood

Provide for the daily needs of our customers by offering staples, grocery and

household products at great prices

Offer consistent high quality, unbeatable freshness and great service so that our

Customers know that we can be trusted every day.

The main aim is to provide good quality products in lower price & customer service & customer

satisfaction.


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Reliance Industries launched its first retail format called Reliance Fresh in

Hyderabad. Spread over 2,000-5,000 sq ft, 11 such Reliance Fresh neighborhood

convenience stores were come up in the city.

Branches:

y Chennai,

y New Delhi,

y Hyderabad,

y Jaipur,

y Mumbai,

y Chandigarh,

y Ludhiana,

y Orissa,

y Karnatka

y UP

y West Bengal

y Jharkhand

Relianceis gearing up to revolutionize the retailing industry in India. Towards

this end, we are aggressively working on introducing a pan-India network of retailoutlets in multiple formats. A world class shopping environment, state of art

technology, a seamless supply chain infrastructure, a host of unique value-added

services and above all, unmatched customer experience, is what this initiative is all

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

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

and greater value for the Indian consumer, both in quality and quantity, will be an

integral feature of this project. By creating value at all levels, we will actively

endeavor to contribute to India's growth.


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Product range of reliance fresh

Vegetables and fruits: this is the specialty of the store as they provide fresh fruits

and vegetables at a rate lower than the market price.

Households Items: In the stores we can get items which are at slight premium rate

than market price, but usually of high quality.

Food and Beverages: This area of the product line they stock all the premier

brands and also their private label.

Groceries: In this sector reliance is promoting its private label as they are

promoting their own brands and they do the packaging of the product and then

label it privately and then sell it at premium as compared it to the loose items.

Dairy Products: The dairy products in some locations are procured from the

farmers themselves and some places they procure it from the manufacturers.

Refrigerated products: This product line is dominated by the brands available in

market and very less private labeling is done.

Non food items: Here we get many petty non food items at a premium than market

price.


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

grocery, non-food items and dairy products and a whole lot of other categories at

very competitive prices. All the stores opened have an average area of about 1,800

sq ft and an average of about 20 sales associates attending to customers in each

store open from 8 a.m. to 10 p.m. on all seven days of the week.

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

planned investment of Rs 30,000 crores over the next five years that's the retail

vision of Mukesh Ambani and his RIL retail team. RIL's retail venture seems all

set to achieve the status of being the flag-bearer of India Retail Inc, and that too in

record time!

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

was only whispered in close industry circles. Slowly the whispers become louder,

and the word gained ground that India's largest private sector company, Reliance

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

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

retail plans; this has to be one of the most closely guarded secrets of India's

corporate story.

Retail Will Become Core Business of RIL:

Reliance Industries Limited is the largest and one of the

fastest growing private sector companies in India, with business activities

encompassing almost all major growth sectors of the Indian economy. The

company manufactures and markets a wide range of products with market

leadership in almost all its businesses.


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

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

company is truly emerging as a well diversified conglomerate with global

competence in technology, management and financial capabilities to meet the

needs of a rapidly growing Indian market.

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

among the top 10 producers globally, for all its major product segments. It is one

of India's largest business conglomerates with total revenues of Rs 1, 00,650 crores

(US$ 22.6 billion).

It is being speculated within the industry that the ROIs made by RIL in the retail

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

retail will become the core business for the Mukesh Ambani-controlled Reliance

empire.

Future Planning:

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

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

time it hopes to complete Phase 1. In the first phase company plans to employ

500,000 people. It is following an all-inclusive model giving the right affordability

across all income groups. Company is aggressively partnering farmers by

following a farm-to-fork strategy in its supply chain management model and

ensures that it delivers fresh fruits and vegetables at affordable prices to

consumers. Currently, Reliance Fresh has over 100 stores across the country.


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

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

loyalty customers across Hyderabad, Jaipur and Chennai.

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

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

investment of Rs 25,000 crores.

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

also sell kitchen equipment and other edibles.

The Reliance Fresh supermarket chain is RILs Rs 25,000 crores venture and it

plans to add more stores across different geographies, and eventually have a pan-

India footprint by year 2011.

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

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

for non-vegetarian products.

Supply Chain Management:

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

functions of procurement of materials, transformation of these materials into

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

to customers. Supply chains exist in both service and manufacturing organizations,although the complexity of the chain may vary greatly from industry to industry

and firm to firm.


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From the above pictorial representation of supply chain management of reliance

fresh it is clear that raw material is procured from vendors, transformed into

finished goods in a single step, and then transported to distribution centers, and

ultimately, customers. Realistic supply chains have multiple end products with

shared components, facilities and capacities. The flow of materials is not always

along an arbores cent network, various modes of transportation may be considered,

and the bill of materials for the end items may be both deep and large.

Farmers

Collectioncenter

Distribution centerReliance Fresh


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Interpretation and Analysis

Analysis Of Store Operations - Presentation Transcript

1. ANALYSIS OF STORE OPERATIONS RELIANCE FRESH

2. RELIANCE FRESH

o Reliance Fresh is the convenience store format which forms part of the retail business of

Reliance Industries of India.

o Headed by Mukesh Ambani.

o The company already has in excess of 560 reliance fresh outlets across the country.

o These stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars, dairy

products and other FMCG products.

o A typical Reliance Fresh store is approximately 3000-4000 square. feet and caters to a

catchment area of 1-2 km.

o Reliance plans to invest in excess of Rs. 25000 crores in the next 4 years in their retail

division.

3. MERCHANDISE DETAILS

o Product width: Fruits, Vegetables, Juices and other FMCG Products.

o Product length: Fruits and vegetables both Indian and imported are available.

o FMCG Product length includes detergents, hair products, perfumes, cosmetics, household

products etc.

4. DAILY OPERATIONS OF THE STORE

o 1. Store opens by 5:30 am with the help of guard and the supervisior.

o 2. Daily indent of fruits, vegetables and milk products reach by 5:30.

o 3. Merchandise laid by the customer associates and makes the store ready for customers by

6:30am.

o 4. Store manager updates the opening stock.

o 5. Revises the rate list sent by the head office.

o 6. Updates the discounts and the promotions on various product categories.

o 7. Perishable merchandise are put on discount of 20% after 4 pm.


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5. DAILY OPERATIONS OF THE STORE

o 8. The merchandise is checked properly from time to time by the supervisor.

o 9. The house keeping people does the cleaning at least 7 times a days span.

o 10. Refrigeration and temperature are checked regularly several times a day by the store

manager.

o 11. In the later half of the day indent of the next day merchandise is given by the store

manager with the help of the supervisor.

o 12.In the end closing stock is checked and further details of replenishment is forwarded to

the head office by the supervisor.

o

13.The cash manager checks the balance and compares it with the sale.o 14. The store gets wind up for customers around 10 pm.

o 15. After all the accounting procedures done the operators shut down at 11 pm.

6. STORE OPERATORS

o STORE MANAGER

o VISIUAL MERCHANDISER

o CATEGORY HEADS

o SUPERVISIOR

o CASH MANAGER

o CUSTOMER ASSOCIATES

o HOUSE KEEPER

o GAURDS

7. STORE MANAGER

o Every reliance fresh has one store manager.

o The store manager is appointed by the HR department of the Centre Head Reliance Fresh.

o Experience required: At least 4 years in retail.

o Pay packet ranges from 12k-22k.

o The undergo a 15 days training sessions before they work on the floor.

o His working hours are 11 a.m to 9 p.m

8. DAILY WORK PROFILE OF STORE MANAGER IN RELIANCE FRESH


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o

He is responsible for day to day operations of the store.o Coordinate with the store supervisors: His work is to give instructions to the store

supervisors.

o Coordinate with the category heads.

o Product management, including ordering, receiving, price changes, handling damaged

products, and returns.

o Full check on the inventory control.

o Convey about different promotion schemes to the supervisors.

o Store performance of the day is reported to by him on daily basis to the head office.

o To check the closing stock of all the merchandise and give the indent for the next order

accordingly.

o To handle any customer complaints which are not managed by the supervisors.

o He has to inspect and manage all the sales record daily, monthly and annually

8. VISUAL MERCHANDISER

o Every store has a visual merchandiser who has to set up the merchandise as per the

instructions given by the head office.

o Every store is given a set of standard laying patterns which are supposed to be strictly

followed.

o His work is basically to set the merchandise in order to increase the sales of the store.

9. DAILY WORK PROFILE OF VISUAL MERCHANDISER

o His job is to communicate with store managers to work out the floor layout and display

points, as well as how and what items are to be displayed. It includes:

o His work includes moving merchandise, shelving and putting fixtures.

o Proper presentation of the merchandise kept.


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o Taking care of the perishable merchandise and keeping it under proper

refrigeration's.

o Proper placements of the promotional schemes and banners on daily basis.

10.SUPERVISIOR

o Every Reliance Fresh has two supervisors.

o The supervisor is appointed by the HR department of the Centre Head Reliance Fresh with

the help of the store manager.

o Exp. required: At least 2 years in customer service.


o

The undergo a 20 days training sessions before they work on the floor.o His working hours are 8a.m to 11p.m.

11.DAILY WORK PROFILE OF SUPERVISIOR IN RELIANCE FRESH

o Coordinate with the cash manager, customer associates, house keeping and security guards

and give them instructions.

o Keep a check on the stock as well as the expiry dates of the merchandise.

o Checks about the stock replenishment and sends details to the head office by using the

software called SAP.

o Reports to the store manager about day to day activities.

o Takes care of the customer complaints.

o He is given incentives to promote products and are also given bonus on crossing sales

targets.

o To keep fruits and vegetables in right temperature and moisture.

12.CASH MANAGER

o Every reliance fresh has two cash manager.

o The store manager is appointed by the HR department of the Centre Head Reliance Fresh

with the help of store manager.

o Exp. required: At least 1.5 years in retail.


o The undergo a 15 days training sessions before they work on the floor.


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o His working hours are 6:30a.m to 11 p.m

13.WORK PROFILE OF CASH MANAGER IN RELIANCE FRESH

o All the transactions are managed by him.

o He scans the goods that the consumer wishes to purchase. After all of the goods have been

scanned, the cashier then collects payment for the goods, make change and handout recipts.

o The place of his operation is known as Point Of Sale.

o Software used in Reliance Fresh is called Retalix.

o At the end of their shift, he balances the amount of money they have taken in with the total

sales recorded.

o At the end of the day he has to collect the cash and get it deposited with Companys account

in ICICI Bank.

14.CUSTOMER ASSOCIATES

o Every reliance fresh has 11 customer associates.

o The store manager the customer associates.

o Exp. required:0-6 months.

o Pay packet ranges from 4.5k-5.5k.

o His working hours are 6:30a.m to 11 p.m

15.DAILY WORK PROFILE CUSTOMER ASSOCIATES IN RELIANCE FRESH

o To set all the fresh merchandise in the store early morning.

o To put the rate list and price tags on merchandise.

o To help the customers during their purchase.

o Inform about the usage of the product and suggest various other alternatives for his need

satisfaction.

o To inform customers about various promotional schemes and discounts at the store.

o To check the refrigeration, temperature at which perishable merchandise is kept.

16.DAILY WORK PROFILE OF HOUSE KEEPING

o The house keeping people has the responsibility of the cleanliness and hygiene of the store.


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o Every Reliance Fresh Store has at least two house keepers.

o Cleaning is done 7 times a day.

o A regular check on their attendance is kept by the supervisor.

17.DAILY WORK PROFILE OF SECURITY GUARD

o Every Reliance Fresh Store has two security guards working in two shifts of morning and

evening.

o He comes in the morning to help supervisor to open the shop and lock it in the morning.

o He helps to prevent any kind if theft.

o He checks the bill of the product purchased.

o His pay scale in Reliance Fresh is Rs.3000 pm.

18.DAILY WORK PROFILE OF CATEGORY HEADS

o Reliance Fresh has different categories of product hence every categories has a product

head.

o There are basically two categories Fruits Vegetables and FMCG Products.

o He helps to lay various promotion schemes and discounts with the help of the head office.

o To inform the store manager about the performance of various products in the store which

come under his product categories.

ACTIVITIES GROUPS WITHIN THE STORES

Getting Products to Shelf

1) Indenting & Purchase Orders (POs)

(a)Indenting DC Delivery:-

Indenting will be happen after checking stock in the store and goods in transit. Or whenever if

required any changes in indenting due to season, weekends or any festivals then the quantity is


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modified. For branded goods there is a automatic indenting system which is handled by the head

office (Mumbai). Delivery of fruit & vegetables is after 48hours after being raised. Indenting for

milk and dairy products is delivered after 36 hours.

(b) Raising PO for Bakery

PO (purchase order) for bakery supply is raised in the store and also released to the vendors by

the stores. PO on vendors can be raised only once each day & it will be valid for 24 hours.

2) Receiving:-

(a)Checking of Delivery in DC

All the Dry DC delivery will be checked by a store staff in the DC staging area before packing

and loading. This is to minimize delivery count error and ensure that right quantity is delivered

to the stores. Behind this all the activity owner is Store Manager.

(b) Receiving Goods in Store: From DC & CPC

Receiving indented goods from the DC & CPC as per the delivery schedule. At the time of

receiving goods from DC many things which is followed by the SM, ASM,& CSA:-

Check the seal in front of driver.

Note down the air condition temperature.

Inspect stocks for transit damages.

If any HU (Handling unit) / article is found damaged, excess, or missing noted it on the

trip sheet for return to DC.

Do the GRN (Goods return note) for the delivery for the actual received quantity.


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Stores are not unloading transit damaged stocks. Transit damages will be returned to DC

in the same delivery truck.

The main focus during goods receiving must be to unload the crates/ cartons from the

truck as quickly and safely as possible.

(c) Receiving from Vendors

Procedure for receiving goods directly from vendors. Behind this whole activity owner is

store manager/ asst. store manager. Reliance fresh stores indenting specially bakery,

beverage and books/magazines and music. SM/ASM Checks:- Check the deliveries for quantity, damages and freshness and accept only good products

as per shelf life norms.

Do not accept any short shelf life or damage quantity from vendor and reduce it from the

invoice if required.

Remove all expired products from the shelf and get them replaced with fresh product

without any GRN for the same.

In case of books/magazines and music SM/ASM check bar-codes on the books or music

CDs delivered by the vendor & return the unsold items to the vendors.

Vendors and store staff check physically check DSD deliveries for damages and

freshness and accept only fresh saleable products.

3) Replenishment of goods

(a) Replenish Shelf from Goods Receiving Area

Process of moving goods from goods receiving area to the respective bays/freezers/chillers as per

the priority fill rule.

Frozen products received must have first priority for stacking in the Freezers.

Strictly follow FIFO


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Place previous stock in the front/top of the shelf.

Chilled product received must have second priority after frozen product for stacking in

the chillers.

4) Managing Price Changes

(a)Changing SELs for those SKUs where price has been changed. All the changing of

SKUs is done by headquarter Mumbai.

5) Managing Plano gram

Implementation of changes of Plano gram

The Plano gram indicates the location for each SKU on a shelf. This process describes how to

change Plano gram. Changing of Plano gram is wholly managed by headquarter. Headquarter

send new Plano gram to store by mail. Changing of fixtures and shelf heights, at

Per new Plano gram. The major change of shelf is less than 5 bays. Check quality of stock

received as per Plano gram, raise an indent of additional stock if required. Stack goods as per

Plano gram and readjust SEL to align with the left hand side of the first facing going from the

left. All the changes made on shelf to be signed off by store manager. All the Plano gram to be

provided in standard format. Plano gram indicates shelf heights. Plano gram is send to the store

at least 2 days in advance of the change. No stock to be displayed on the shelf if it not in the

Plano gram. If the F& V section looks empty in the late evening because of stock outs, then store

manager may change only the F& V Plano gram in a suitable manner to give appearance of full

store.


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6) Getting Products from Shelf to customers

(a)Promotion management (setting up the store for new promotions)

Store check that all new promotional stock has been received from the DC and the free

gift under promotional offer are bundle along with the promotional stock. If the free gift

is too large to be accommodated on the shelf the gift should be provided to the

customer at the till.

Put up new promotional signage above the end cap at the marketing defined locations.

ASM/SM briefs the staff at the morning and afternoon meeting on the promotion details.

Staff need to be briefed on the following :

Details of the promotion

Period of the promotion

Advantages to the customer

Any special arrangements at the till

Sales target for the promotion

Process for dealing with left over promotion stock

If the customer brings the promotion item back for exchange / refund the customer has

to bring back the free offer as well. Exception can be made at the customers favour at

discretion of store manager.

7) Stock Display Management

Filling up the gaps on the shelves for SKU sold during the day is defined as spot fill.

Fill F&V in a similar manner using crates stored in the bottom shelf of the wall racks,

below heapers and in back room. Follow FEFO, FIFO rules.

In case of F&V, remove the old crates, place the new crates on the racks and then place

the older products on top of the newer products FIFO

Checking of temperature of chillers and freezers is also a part of SDM.


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places an order on phone by calling either at the store or at the

call centre. The payment in this case would be received once the

delivery CSA goes to the customer destination and hands over the

goods.

Big orders store hire auto, rickshaws & it is decided by store

manager.

8) Managing waste and markdowns:

(a) Segregation of damaged and expiry in store:-

(a)For F&V crates are received carefully for the item not for sale as per reliance retail

quality and are removed from the shelf.

(b)It is done by CSA / F&V champion.

EXPIRY:-

(a)Near expiry product is markdown as per the RR rule.

(b)An expired product is segregated and is treated as per following.

PRODUCT TYPE TREATMENT

DSD supply Exchange with fresh stock from the

vendor at the time of next delivery

DC supply Dump in store.

(b)Markdown for damages and near expiry:-

Damaged and near expiry products is markdown as per the following rules:

Markdown criteria:-


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Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager.

Up to Rs 30 or 30% of SP (whichever is lower) & it is also done by DM / AM.

Beyond Rs 30 or 30% of SP & it is done by state fresh head.

Dumping of damages & expiry product:- Treatment for damaged & expired product are

done in following manner:-

Loss type Action

(a)Type C damage y Dump in store (shown in SAP)

y Dispose in store.

(b)All expiry (DC supply & DSD

without RTV)

y Dump in system (SAP)

y Display in store

(c)Expiry (DC supply with RTV) y Exchange with fresh stock, fresh

vendor at the time of next delivery

For processing of dump (damaged & expired) approval is obtained from store manage.

After dumping, all the dump are entered into dump register in the presence of SM with

his /her signature.

The entire dumped product is then get hand overed to garbage collection agency.

For type C damaged product some part of each product is kept as proof.

Finally the dump register is present near DM/AM for approval (signature).

(c)Dump on arrival:-


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On arrival of goods (F&V stock received from DC) poor quality goods are

segregated.

It is kept in separate place in the store with the sticker dumped on arrival not for

sale along with receiving date.

And the respective SM is informed.

In the GRN (goods received roles) for the delivery, poor quality stocks are entered

as Damaged Quality.

Further it is kept for inspection and area F&V executive is informed. E-mail is send

to the F&V head / F&V category head.

Finally dumped stocks are hand over to garbage agency.

In case the GRN is done at the back end maintain a record of the DUA and also

record the some on the invoice that is sent to the commercial team.

(9) Returns:-

(a) Goods Return to DC:-

A finalized list of good stock article for return to DC is obtained from state

merchandising team.

According to the list stock of articles are segregated and are moved to the back

office.

Return schedule is obtained from the state merchandising team and packing of

goods carton are planned.

They are packed properly. Food and non-food items are packed separately.

And GRDC is created in SAP for the quality to be returned.

Finally it is loaded and dispatched to DC in DC truck and return to DC

documents is get signed by the truck driver and is kept with itself.

(b) Goods Return to Vendor:-

Stocks which are to be returned to vendor are taken out to the back room..


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DSD returns are segregated as per category guidelines.

Return to vendor document is created in the store.

Returns are loaded to the vendors vehicle.

2 copies of vendor document are made and is got signed by the vendor.

One copy is issued to the vendor and 2nd

copy is filled as record.

Security control register for returns are updated regularly

(c) Physical verification of stock:-

All PI documents present in the system are checked and closed.

Stocks take checklist is updated.

It is managed with DC to ensure that there is no afternoon or evening delivery on

the stocks count day.

Following are checked and ensure:-

(i) GRN for all DC deliveries have been prepared.

(ii) GRN for all DSD deliveries have been completed.

(iii) All damaged products (type c) have been dumped.

(iv) All expiry products have been dumped.

(v) PI documents for stocks take are generated.

(vi) HHTs are managed and ensured that they working properly etc.

(d)Stocks count and reconciliation:-

Objective of the count, the layout of the stores and the process are briefly

explained to the staff.

For stock count staffs are delivered for counting of articles in fixtures and for

entering the count in the HHT.

Back of store store take

SKUs by weight (F&V, loose staples, etc)

(i) Each loose article is weighed separately and quantity stickers are pasted.


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(ii) It is continued until all SKUs are weighed.

SKUs by count:-

(i) Product variants are segregated. Numbers of units are counted and stickers are pasted

with the quality on SKUs.

(ii) It is continued until all the SKUs are not counted.

(iii) PI count in the HHT is opened (all PI document together) and quantity is entered after

scanning the EAN / article code of the SKUs from the product in the HHT PI

document.

(iv)

It is continued in this manner till all the SKUs in the back of store is counted and thequantity is entered in the PI documents with the help of HHT.

(e) Store Opening :-

(i) Store shutter is opened.

(ii) Burglar alarm is put off.

(iii) Entry for collection of keys and store opening details are recorded in the register

kept at the security.

(iv) Lights are switched on and all the equipments are checked for working made.

(v) Generators are checked for water level, engine oil and Diesel.

(f) Store closing:-

(i) Announcement is made for store closing 10 min before closing.

(ii) No. of tills to be closed or operated fully depends upon the no. of customer in the

store.

(iii) Ensure that no customer is present inside the store.

(iv) POS & EDC closure process is performed.

(v) It is checked that equipment is in order or not after which the store is closed.

(vi) Security guard is got to put paper seal on safe and almirah.

(vii) All air-conditioners are switched off except server room a/c (which must be

maintained between 22-24 degree c )


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(viii) Display lights and faade lights are switched off.

(ix) Back room lock is sealed with a paper seal.

(x) Burglar alarm in the store is updated and key register is signed in.

(xi) Finally shutters are locked.

On the sales floor-stock take:-

(i) Counting and weighing of bays are started, and quantity or count stickers are pasted.

(ii) PI documents are opened, EAN/ article code on the products are scanned using the

HHT and the counted number is entered.

(iii)

Similarly all the SKUs shelves and bays counted on sales floor and the count entry isentered in the PI document.

(iv) Control sheet for the fixtures that has been counted are updated.

(v) Once all the articles in the store are counted and count entry is done in the HHT, post

the count data by pressing the post count button in the HHT only.

(vi) HHT would display the list of SKUs for which count has been not entered then the

article in the store is looked upon and count is updated in case the article is present in

the store and count entry was missed earlier.

(vii) The final counted data is posted once again by pressing the post count button.

(viii) Success log is checked to ensure that all the PI documents are successfully posted.

(ix) The stock take report is generated is SAP and inventory differences is listed.

(x) In case of major variations record is performed and the count in the PI document is

changed and the count is reported.

(xi) The variation is checked and confirmed and then the difference is posted by posting

the PI documents in ZSTORE, using the Post option under Phy inv. Post in the

physical inventory menu.

(xii) The stock take check list lifted in the store.


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An overview of companys supply chain management

RELIANCE OWN

LOGISTICS

RELIANCE FRESH

OUTLETS

RELIANCE FRESH

OUTLETS

RELIANCE FRESH

OUTLETS

PROCESSING

UNIT POINT

COLLECTION

POINT/UNITFarmers Own

Trans ortation

Relianceown

Lo isticsRelianceown

Lo istics

Farmers Own

Trans ortation

RF

RF

FARMERS FARMERS FARMERS


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Findings, Conclusion and RecommendationsThere was a questioner, which was filled by the customer to know the

feedback of the customer about the Customer Perception.There were 50

sampling had filled up by the customer who were coming to the Reliance fresh

store.

Findings

People prefer smaller quantities and good quality products. There are less

retail shops nearby the store. Instead some small grocery stores and local

vegetable mandies at Cuttack road

There is always a gap analysis between Retailer & customer.

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

to outside if we provide them a quality.

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

good vegetables.

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

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

case when quality is good. While for other categories some changes like

introducing more variety and keeping competitive prices can be done to

increase their sales.

Data gathered through sales report and CSAs were analyzed to adjust the

MBQlevel of each SKU and to increase the store profit.


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Reliance Fresh needs to adjust its Planogram according to the tastes and

preferences of customer. Since store does not offer NF FMCG and toiletries

most of the customers are switching to other players.

AVERAGE NUMBER OF TICKET SIZE BASED ON MALE AND FEMALE:-

Note:- Considering the above chart it can be concluded that female visit more as compare to the

male counterpart and hence reliance fresh owner should consider about the female and should

take more care of female in the sphere of services, protection and product availability also.

0%

20%

40%

60%

80%

100%

MALEFEMALE

162 304

AVERAGE NUMBER OF VISITORS PER DAY BASED ON GENDER


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AVERAGE NUMBER OF VISITOR BASED ON DIFFERENT AGE GROUP:-

Note:- if we consider the above chart it can be easily concluded that the people between the age

group 23-32 visit more and more in the reliance fresh store and hence store manager should take

care of this age group peoples so that they may captivate them by giving various discount or

facilities etc.

The targets for the current month to any store are assigned according to the sales figures of the

preceding month. Usually the target for the current month is greater than the sales achieved for

the last month by 10-15 % in normal conditions. They can also exceed to almost 25% in some

cases where there is large scale supply of stocks of certain kind seeing upon the arising

opportunity for their sale.

45

119

149

6530

60

91

47

0

50

100

150

200

250

300

7-15YEAR 16-22YEAR 23-32YEAR 32-55YEAR

AVERAGE NUMBER OF VISITOR PER DAY BASED ON AGE

female

male


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Reliance Retail calculates its input per store in form of sales / ft / day in total no. of hrs. of

operation (from 7:00 AM till 9;30 PM). This cost of operation / input includes rentals, logistics

cost, labor costs, electricity charges and up keep and maintenance charges. FTD (fixed till date)

sale / sq ft. represents the break-even point for the company. In case of NOVEMBER 2010 FTD

takes into consideration. 31st days of operation from 1st NOV 2010 to 31st NOV 2010. FTD

sale/sq ft is assigned to each individual store from the Mumbai based headquarters of Reliance

Retail

37.62

9.55

20.25 18.91

32.67

7.72

26.47 22.9617.56

34.58

8.84

17.59 17.65

32.83

6.81

22.5821.08

16.6

0

10

20

30

40

50

60

7080

MTD TARGETAND ACHIEVED IN A PARTICULARMONTH

MTD Achieved

MTD Target

0

41.2

17.5

34.1 32.7 32.5

11.3

40.3

15.9

24

0

25.5

12.8

26.9

20.4 19.4

11.1

23.3

11.2

20.1

0

26.8

12.8

26.9

22.2 21.9

11.4

26

11.8

21.9

0

10

20

30

40

50

60

70

80

90

100

SALES PERSQUARE FT

MTD

LMTD

FTD


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So it can be seen that none of the nine operating. Reliance fresh stores in HUBLI have been able

to achieve their break-even point for the month of NOVEMBER 2010. Reliance Fresh stores are

on verge of completing almost 2yrs of their operation in Bangalore they are yet to reach their

breakeven point.

GROSS

Reliance Retail has a policy of not letting to exceed the shrinkage (loss of goods due to theft &

pilferage) & dumping (loss of goods due to expiry) to individually exceed 2% of the total sales.

It was observed that due to practices like better in-store upkeep, supply close to demand , better

surveillance etc. the shrinkage & dumping were restricted to the desired level in almost of thestores.

15.30%13.10%

8.90%

15.40%

12.10%11.60%

15.00%16.10%16.40%

15.80%

15.10%

14.70%

15.90%

14.70%13.90%

16.20%14.70%14.50%

14.50%

14.30%

6.80%

11.30%

13.10%

6.80%

15.50%14.10%

12.90%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

GROSSMARGIN UPTO 31STMAY

Store Name MTD

Store Name LMTD

Store Name FTD


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Sales / tickets (ticket size) FTD represents the value of sales per purchase that the stores should

make in order to reach the BEP margin.

SALES PER TICKET IN HUBLI:-

In this case also it was seen that none of the 9 stores have reached the BEP.

Reliance retail expected its Reliance Fresh venture to reach its BEP within a span of 1 1.5 of

their operation and to become a profit making entity after that out of 9 stores in KARNATAKA

all have completed their at least 1 2 years of existences but are yet to achieve their BEP.

4163

2234

2111

25604832 1935

2800

5764

2440

298 126

156

146 248 92

212

170

172

227 112 128 118 192 82 176 145 151

80%

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

SALES PERTICKET

MTD

FTD

Area


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y It can be seen from the above graph, Reliance Fresh has the dominant

position in the market. This only proof customer perception about the

company is on the positive side.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Reliance Fresh Modern Outlet LocalMarket

Where did you purchase yourmonthly house

hold provision?


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y More number of customers thinks, they are buying quality products fromReliance Fresh. This is why company is having good image among

customers.

y Availability of all items shows the efficiency of store management of the

company.

0%

5%

10%

15%

20%

25%

30%

35%

40%

Quality Stuffs Availability of all items Good ambiance Other

Specify reason forregular/occasional purchase

fromReliance Fresh


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y Employees of the company has played a major role in building image for thecompany and having good perception about the company among customers

through providing quality of service and better Store Management.

ExcelentGood

Needs to improvePoor

15% 25%

45%

15%

How do you find customer service staffofReliance Fresh?


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yCustomer has experience very less amount of problem while buying

products with the company and hence has good perception about the

company.

Never

Sometimes

Often

Have you ever faced any problem with

Reliance Fresh store manager during your purchase?


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0%

10%

20%

30%

40%

50%

60%

Grocery Vegetable Cosmetics &

stationary

Grocery 25%

Vegetable 55%

Stationary 20%

Which section ofReliance Fresh you likemost


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Comitment levelRelationship

building with

customer

Understanding of

customer need Friendly approach

towards customer

15%

25%

30% 30%

WhichaspectofReliance Freshattract you most?


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Yes

AlmostNo

35%

55%

10%

Are you getting all yourhousehold requrements during yourvisit?


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0% 0%

Yes

55%

No

45%

Do you feelthe product in more demand are notavailable in

yourvisit?

YesNo

58%

42%

Do you thinkthatthe perished items are not properly differenciated

fromfresh items?


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Conclusion

Corporate retailing in India is witnessing considerable growth. The share of corporate retailinoverall 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.

There has been a great impact by the unorganized sector in the country. Customer prefer more

unorganized sector than the organized. 98% of the total retailing is contributed by the

unorganized sector and remaining by organized. So there is a huge difference lies here which

needs to be taken care. Even though customer have more benefit in buying goods from super

market and hypermarket as they will be getting discounts, coupons, membership card, and

buying will be easy as they can buy all types of goods at one place, instead customer prefer to go

for unorganized sector. It is mainly due to organized sector does not have more concentration on

the rural market; it is manly focusing on urban and semi urban area. It can be concluded that if

organized sector will focus on the rural area, we could see the increment in its market share.


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Recommendations

Announcement for the Membership card should be there.

Effective utilization of storage space is possible.

Rigidity in following Planogram should be avoided.

Possibility of Non-Food FMCG

Effective utilization of empty Shelves

Consistency in quality should be maintained.

Proper training should be imparted to CSAs.

Effective utilization of space should be done. Mark down of SKUs especially for Fruits & Vegetables should be done at proper time.

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

Consistency in quality should be maintained

Proper training should be imparted to CSAs

Effective utilization of space should be done

Mark down of SKUs, especially for Fruits & Vegetable should

be done at proper time.

Sample of wheat & other staples items can be kept for better Exposure

Fine Line Product Differentiation of SKUs should be done.

Announcement for the Membership card should be there.

Effective utilization of storage space is possible.

Rigidity in following Planogram should be avoided.

Possibility of Non-Food FMCG

There should not be any communication barrier; company should have norms regarding

communication process.

Planogram should be systematic in a way that products categories can be identified at

ease.


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Store manager needs to give more focus on employees as well as customer to have

efficient work flow and better customer relationship which will result in enhancement of

companys goodwill in the market, and will have better working environment.

Spoiled F & V champion should be taken off. So that, remaining goods can be prevented

from spoilage. This will save companys cost. Hence, companys profit will increase.

There should have proper cleanliness in the store, to attract customer.

Temperature should be maintained in chiller display.

Store manager needs to see that Job Implementation Card gets updated at regular

intervals or properly on time.


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Annexure

Questionnaire

(This questionnaire is just to make a study report on Reliance Fresh)

Name : ..

Coampany Name :

Designation : .

Sex :.. Age :..

Contact No. :

E-mail ID :..

1. Do you know about Reliance Fresh Store?

YES NO

2. How do you know about Reliance Fresh?

a. Advertisement

b. Information from social network

c. From the employee of the company.

d. Marketing campaign

3. Where do you purchase monthly house hold provision?

a. Reliance Fresh

b. Modern Store

c. Local Market

4. How often you visit Reliance Fresh for your daily needs?

a.

Rarelyb. Twice or thrice a month

c. Regularly

d. Only when you have any extraordinary offer from them

5. Specify the reason for your regular purchase from Reliance Fresh?

a. Quality Stuffs


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b. Availability of all items

c. Good ambiance

d. Others

6. With whom all you visit Reliance Fresh?

a. Alone

b. Friends

c. Family members

d. Anybody from the above

7. Are you satisfied with the facilities by Reliance Fresh?

a. Not satisfied

b. Somewhat satisfied

c. Satisfiedd. Very satisfied

e. Delighted

8. Do you think Reliance Fresh is giving you better product at better price?

a. No

b. Dont know

c. May be

d. Yes

9. How do you rate the facilities and store environment and layout of Reliance Fresh?

a. Not satisfied

b. Somewhat satisfied

c. Satisfied

d. Very satisfied

e. Delighted

10.How do you rate the services and customer relationship by the Reliance Fresh?

a. Not satisfied

b.

Somewhat satisfiedc. Satisfied

d. Very satisfied

e. Delighted

11.How do you find customer service staff of Reliance Fresh?

a. Excellent


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b. Good

c. Needs to improve

d. Poor

12.Have you ever faced any problem with Reliance Fresh store manager during your

purchase?

a. Never

b. Sometimes

c. Often

13.Do you think that the perished items are not properly differentiated from fresh items?

YES NO

14.Are you getting your entire house hold requirement during your visit?

a. Yes

b. Most of the time

c. No

15.Which aspect of Reliance Fresh attracts you most?

a. Commitment level

b. Relationship building with customer

c. Understanding customer needs

d. Friendly approach towards customer

16.Which section of Reliance Fresh you like the most

a. Grocery

b. Vegetables

c. Cosmetics and stationery

Any Comment:..

Signature


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BIBLIOGRAPHY

1. Magazines

2. Newspaper

3. Books

4. Questionnaire

5. Internet

www.ril.com

www.reliancefreshinfo.com

www.google.com

www.wikipedia.com

www.outlook.com

www.economitimes.com

www.4psof marketing.com

Radheju Final

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