1. Reliance Fresh A case of Channel Management By Susovit Kumar Nandy Page No.1 2. Introduction - It is the subsidiary of Reliance Industry. - 920 stores , 80 cities and 14 states - Reliance fresh is the retail chain division of reliance Industries of India which is headed by Mukesh Dhirubhai 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 2 years in their retail division and plans to begin retail store in 784 cities across the country. Page No.2 3. - 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. - No. of Reliance fresh in India 560. Page No.3 4. - Besides, employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. - The company also has plans to train students and housewives in customer care and quality services for part-time jobs. - Reliance fresh uses segmentation to reach customer in different geographic markets with its new store of community concept. - Now No. of Reliance fresh have been designed to reflect the communities in which there located. Page No.4 5. Target Segment - It is targeting all the people who go grocery shopping. - On a demographic point of view the consumer is a family or a household, which is not characterized by a particular income. - The environment of the consumer is often an urban or residential area, which explains the fact that most of consumers are families and households and especially housewives. Page No.5 6. Pricing Policy - Reliance Fresh follows at-the-market pricing, with the prices of most products being same as the market. - If a product is fast moving, there is no need to reduce the price. - It is believed that the local markets quickly adjust their prices so as to make the two almost the same Page No.6 7. Promotion Strategy The promotion strategy can be broadly classified in two types: - In-store promotions This class contribute most of the promotional strategies of Reliance. Their in-house promotion strategy is further divided in two forms. First is through signboards inside the store, and secondly through announcements. - Outside Promotions Very few promotions are done outside the stores. However, they come with few print ads at the time of their launch of some different product category or some big discount/promotion scheme. Sometimes, promotions are done on Radio-Mirchi i.e. on the local radio F.M. channel, as well Page No.7 8. Problem facing in India - Vegetable vendors are against reliance fresh, for obvious reasons as its thought of as ushering in cheap veggies. - Most of the peoples are not giving interest to the Reliance fresh because of the fresh Vegetable. - It is entering the food-trading business as part of a major restructuring of its food and grocery initiative. It has created two supply chains: one to trade commodities in the open market through mandi shops while the second one will supply to its Reliance Fresh outlets. Page No.8 9. Supply Chain Management - Approaching farmers directly , there by reducing procurement wastage. - Better returns to Indian farmers and manufacturers - Greater value for the Indian consumers Page No.9 10. Page No.1 11. Page No.1 12. Push Strategy - Point of sale displays. - Special Displays. - Catalogs and brochure. - Events. Page No.12 13. Pull Strategy - Coupons - Samples - Premium and gifts - Refunds/Rebates - POP advertisement Page No.13 14. SWOT Analysis Strength - Experienced Management team - Strong IT and Backend operations - Vertical Integration - Backward Integration - Good financial position - Brand Equity Page No.14 15. Weakness - Losses due to Joint ventures - Absence at Prime Locations - Limited Multi-Format Presence Page No.15 16. Opportunities - Growing retail market - Increasing buying power of Indian consumers - Many Untapped Markets in India Page No.16 17. Threats - Increase in the operating costs. - Low Price Competition. - Increasing competition Page No.17 18. Supply Logistics - Always buy from local farmers, never from the mandies. - Established the rural business hubs in many parts of the country. - The objective is to make the entire value chain more effective and responsive. Page No.18 19. Conclusion With the growing retail concept Reliance Fresh is really a fresh air in the arena of vegetable and fruit market. But due to some political and local problems all Reliance stores are not allowed to keep vegetables and fruits according to their goal. But it has the one of the good channel management system in the country. Page No.19 20. Thank You Page No.20