A Project Report on Merchandise Planning For Reliance Industries Ltd.

By

Kshitij Anand Under the guidance of Prof. Sharad Joshi

Submitted To University Of Pune In partial fulfillment of the requirement for the award of the degree of Master of Business Administration (MBA)

Through Vishwakarma Institute of Management Pune-48

CHAPTER I EXECUTIVE SUMMARY

The project covers the various aspects & parameters considered for merchandise planning in Reliance Fresh outlets. The main idea behind the study was to learn directly from the market, what consumers demand in a particular catchment area around each Reliance Fresh Store, so as to efficiently and effectively utilize every square feet of floor area of the stores in order to cut the extra cost and increase efficiency. Although all the markets look the same, they have huge differences within them. The customer, who is considered as the king in the retail sector, decides the kind of product he wants to use and not what is offered. With increase in competition, merchandise planning is fast becoming an integral part of the retail business. The topic was chosen to bring to light the various factors pertaining to customer preferences for particular SKUs or brands, so as to decide on the optimum product mix for each outlet independently, based on area wise competitor analysis. The study was conducted through market survey in Delhi & NCR for different kirana stores, confectionery shops, bakeries, and some organized retail stores. The project also included preparation of a list of all the products in the particular area which are stocked by most of the stores. The data was helpful for Reliance Fresh to maintain a good stock for all those products which have a high demand.

CHAPTER II COMPANY PROFILE

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

Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002 The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of USD 22 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. The Group exports products in excess of USD 7 billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited), Indian Petrochemicals Corporation Limited and Reliance Industrial Infrastructure Limited.

About Reliance Retail

Wednesday, June 28, 2006 was when Reliance Industries finally announced its mega foray into the Retail world. Calling retailing "the next big idea" in the company's plans, Reliance chairman Mukesh Ambani said the petrochemicals giant would set up a 100 per cent owned subsidiary, Reliance Retail, to "spearhead this revolution." The company will initially infuse Rs.10,000 Crore into the retail setup and gradually increase it to Rs. 25,000 Crore. Reliance Retail would have a footprint in 1,500 cities and towns through convenience stores, supermarkets, speciality stores, and hypermarkets; and will create 10 lakh jobs. The company would partner farmers, logistics operators, small shopkeepers and traders in this initiative. Reliance could emerge as the biggest single player in India's burgeoning retail market. The spending power of its estimated 300 million strong middle class has been on the rise, making the sector increasingly attractive to domestic and foreign investors. India's retail market is estimated to be worth around $200 billion but it is still hugely fragmented, with organised retail outlets comprising just two percent of the sector. Reliance entry in this segment is set to change the dynamics in this sector. Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, we are aggressively working on introducing a pan-India network of retail outlets in multiple formats. A world class shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique value-added services and above all, unmatched customer experience, is what this initiative is all about.

The company is targeting to open 100 more Reliance Fresh stores in New Delhi alone within four months, and a 1,000 new stores in 35 cities nationwide by the end of the year with a built-up area of over 4 million sq.ft. An investment of Rs.8,000 crore is envisaged for the NCR region alone.

Reliance Fresh stocks fresh fruits and vegetables, staples, fast moving consumer goods and dairy products. The stores are already selling over 1,000 tonnes of fresh produce daily and also 250 categories of commodities. The company is approaching farmers directly for the procurement of produce, seeking to reduce the 40% wastage that occurs through the traditional supply chain. The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity, will be an integral feature of this project. By creating value at all levels, we will actively endeavor to contribute to India's growth. The project will boast of a seamless supply chain infrastructure, unprecedented even by world standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch almost every Indian customer and supplier.

CHAPTER III OBJECTIVES OF THE STUDY

1.) Identifying the present & probable competitors of Reliance Fresh. 2.) Identifying & analyzing the pattern of product mix by Reliance & its competitors, 3.) Identifying the most preferred SKUs (Stock keeping units), area wise 4.) Identifying customer preferences for particular SKUs or brands, nature of competition etc.

CHAPTER IV MERCHANDISE PLANNING

"A systematic approach. It is aimed at maximising return on investment, through planning sales and inventory in order to increase profitability. It does this by maximising sales potential and minimising losses from mark - downs and stock - outs." It is a "systematic approach" in many ways. You need the systems to ensure that you have the right people, the right processes and the right computerised support. Without the people and processes you will get nowhere. The software available is merely an enabler - the final piece of a jigsaw. It is "aimed at maximising return on investment", but where is this investment made? Most obviously we are talking about a financial outlay in stock, but less evidently there is also considerable financial investment in retail space, people and corporate infrastructure. Again, whilst financial investment is the most obvious type, we should not overlook the "opportunity cost" of the investment in time that is required by planning. We achieve the goals "through planning sales and inventory". These two elements are inextricably linked and finding an optimum balance is the key to retail success. We are doing more here, though, than merely calculating a purchase quantity. We need to balance carefully the requirement to support sales with the constraints and tensions imposed by store layouts and warehousing and transportation issues. We put the effort into Merchandise Planning "in order to increase profitability". Profitability is the key driver of most businesses. Effective merchandise planning delivers margin increases directly to the bottom line. We achieve the increase in profitability "by maximising sales potential and minimising losses from mark - downs 8

and stock - outs". There are two major areas of profit leakage in retail. Firstly lost sales resulting from lack of stock and secondly forced margin reductions due to excessive stock.

How Does Merchandise Planning Fit Within The Business?

Merchandise Planning systems should be the vehicles for tactical implementation of an integrated strategic vision. In order to be able to control the business, the directors will define the Critical Success Factors (C.S.F.s) of the business. Achievement against these will be measured using Key Performance Indicators (K.P.I.s). A K.P.I. is a measure, which, if achieved or exceeded, means, in turn, that a critical success factor is being achieved. These K.P.I.s will typically be a part of high level plans that provide strategic direction over a period of several years. In order for these high level plans to be implemented we need to turn them into functionally based plans that can in turn be translated into concrete action. There may, for example, be a C.S.F. of increasing bottom line profitability by 5%. This may be translated into the setting of K.P.I.s in several discrete areas such as Human Resources, Property Management and Merchandising. Within Merchandising this goal might result in several K.P.I.s being set relating to targets for buying-in margin, stock-holding levels and mark-down percentages. The implementation and monitoring of a plan to meet these success factors will hopefully result in the eventual purchase by a customer of a specific item in a store. If measurement of the relevant K.P.I.s indicates that the success factors are being achieved, then the plan has been successfully implemented. If not then urgent tactical action may be required. This is why a plan must be seen as a living entity and not something that is done once and discarded until the variances are discovered at the end of the selling season. Understanding this strategic framework leads us to a clearer definition of what the processes are and how they must fit in with the company's overall processes.

Merchandise Planning needs to span the activities between setting long term , high level goals for sales, margin and investment for the business, right down to the allocation of space within an individual store for a defined S.K.U.. At each stage of the planning process the high level goals are tested and inputs from functional management enrich the detailed versions. Gaps are analysed and variances are explained or reconciled. The end result of the planning process should be a detailed set of targets (e.g. a purchase order budget) and instructions (e.g. a planogram) that can be reconciled with the original corporate targets, with any divergences being clearly explicable. These plans may be numeric (an Open to Buy) or graphical (the results of range creation collage software like that from Fashionyield, or space planning software like Spaceman) It is equally important to realise what they are NOT. Merchandise Planning is not a transactional process. Thus, setting a purchase order budget within an Open to Buy system IS merchandise planning. Creating a purchase order is not. Deciding how a certain line may be ranged and testing an allocation pattern is planning. Creating the actual allocation is not.

Merchandise planning is a strategic process. As such we need to create systems that lead us seamlessly and in an integrated way from top level strategy to tactical action. In creating a holistic system it is helpful to realise that we can split the planning process into five logical sections

Review Merchandise planning Range planning Assortment planning Space planning

Review The review process consists of two separate activities. Firstly we carry out a PreSeason Review of performance history to identify opportunities and problems. 10

Secondly we "normalise" it. Normalisation is the process of looking at history and ironing out the "bumps" to make it useful as a basis for planning. Merchandise Planning The first element in the merchandise plan is the Strategic Plan. This is normally high level, with perhaps a five year timescale. It is used to set the critical success factors for merchandising in terms of sales, margins & stocks. Next we would create a Channel Sales Budget. This would allow us to take into account the effect of new channels, new stores, closures and refits. Once complete we would create a Category Level Margin Plan. Here we are creating a weekly version of the strategic plan at category level for sales, margins and markdowns. We are now starting to get input from the individual merchandisers, and gap analysis between these plans and the strategic plan will ensure that we stay on course. At the same level we create a Category Level Weekly Sales, Stock & Intake Plan. It is here that we create our Open to Buy, normally the first significant win in the implementation of a planning system. These category level plans create the box within which the range plan will be created Range Planning We begin here with the Assortment Plan. In this plan we break down the goals of the merchandise plan into specific lines, or sometimes SKUs. The system should be capable of extending the results so that we can see the effect on overall margin mix, for example, of a change in cost price of an item. Once the assortment plan is underway we can start Distribution Planning. The lines that we plan are here given a distribution profile. From this we should be able to see both which stores a line is ranged to, and which lines a given store will receive. The link between available physical space and ranging done here is a key determinant of merchandise performance. In the ideal world we would now create a Line Level Weekly Sales, Stock & Intake Plan This would be the category level W.S.S.I., broken down by line to provide a detailed forecast of sales and stock requirements. However, volume & time constraints means that this may be for key items only. 11

At a basic level this provides us with the means to monitor and react to consumer demand. At a more sophisticated level this provides us with the hard currency that can make efficient consumer response systems function effectively. The advent of ecommerce is going to increase the value and importance of line level forecasts shared with our suppliers. There is another sort of assortment plan emerging now. This is the Graphical Range Plan. This sort of plan moves out of the purely numeric type of planning that has been used up until now and starts to allow the range to be put together in a visual way. Typically digitally stored images are manipulated into collage type storyboards. Assortment planning Implementing an effective assortment planning process may be the key to offering the right products to the right customers. The old adage, the right product, the right place, at the right time, still holds true in today's retail marketplace, but with one important change. Retailers - whether traditional, e-commerce or bricks-and-clicks - must have a compelling selection of merchandise for the right customer as well. To determine the best course of action for reaching the right customers, it is important to examine one of the most important factors that impacts the merchandising process: Assortment planning. Assortment planning - which involves asking questions such as: Which product? How much of it? What colors? What sizes? Where to place it? Who is the target customer? and so forth - although it directly affects product selection, price, timing and micromerchandising, has traditionally been de-emphasized due to hectic retail schedules. Extinguishing delivery fires and meeting marketing and financial planning obligations use valuable time, forcing companies to take the easy approach to merchandising: repeating assortment breadth and depth from previous seasons, creating store assortments based on store volume and ranking items by sales volume alone.

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Yet, to attract the right customer in today's increasingly competitive environment, assortment planning must focus on creating appropriate product breadth and depth based on the customer's desires and shopping patterns, taking into account lifestyles, climates and trends. Furthermore, assortment planning must present a compelling mix of products to illustrate the company's strategic vision. Benefits of Effective Assortment Planning The primary benefits of effective assortment planning fall into two categories: financial impact and personal impact. * The financial impact is a result of matching product assortment with market potential, while aligning inventory to sales. This leads to increased sales, fewer mark-downs and improved margins. In turn, these factors dramatically impact profit and shareholder value. * The personal impact of effective assortment planning is improved employee morale and overall efficiency. Increased store collaboration, buying and planning groups, more complete analytical information, clearly defined roles and responsibilities, and a detailed plan of action all work together proactively for this improvement. Assortment planning breaks the Merchandise Plan down into the components that enable the planner to address customer preference and need. These components are product attributes, styles, colors, and SKUs. By addressing these components, the assortment plan becomes the transition to the customer by way of the store. In developing a good assortment plan, the retailer hopes to: Manage inventory while addressing customer need and demand Develop a complete range of merchandise for presentation Enhance and maintain the company philosophy and image Support and execute the overall merchandising strategy Integrate with other planning processes, such as merchandise allocation

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The assortment plan, then, provides the most effective way to balance the presentation of merchandise to the customer. The properly assorted presentation ensures enough selection without overstocking and strikes the right balance between breadth (e.g. number of styles) and depth (quantity of each style). In addition, the good assortment plan considers seasonality, to provide the right merchandise flow. Because assortment planning addresses the most detailed element of merchandising to the customer - the items for sale - the process is often very detailed and time consuming. Space Planning Space planning systems can be split into two types - numeric and visual. Numeric planning systems simply allow users to take account of space available and to calculate ratios like return on space. Visual systems allow users to create 3 dimensional walk-through models of the stores and to preview the look of a store once ranging decisions have been made. Factors to Consider in Product Selection Choosing a product for your retail store to sell may very well be the most difficult decision you will need to make when starting a retail business. The choices are limitless and the task may be overwhelming at first. Not only should there be a demand for your products, but it must be profitable and something you enjoy selling. Before you commit to a product or product line, consider the following factors while deciding what products to sell. Marketability Let's face it, it won't matter what products you sell if your customers aren't buying. Before considering what product to sell, determine what market you want to sell to. Once you know what kind of customer you want, then you'll be able to determine their needs.

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If your products only appeal greatly to some people, it may not be enough to sustain a business. Your product selection doesn't have to appeal to all of the population but it should be something you can convince a large percentage of shoppers they need. Profit Margin Selling big ticket items is generally more profitable, but can require more credibility to sell. When you look at the price of the product, don't forget to calculate direct and indirect costs (like overhead) of selling your goods. If you think you can sell 50 widgets a day for $1.00 each and the widget cost you $.50 each, it may look like you have a profit of $25 per day. But when you learn your overhead expenses average $20 per day, you may find your profit isn't sufficient even though sales are good. The best selling products won't ever earn any real money if your margin is too small. Consumable Choose a product with recurring sales value. A consumable item that needs to be replaced on a regular basis is one way a retailer can establish long term sales. By establishing a customer base with recurring products, customers will continue to come back to you to buy more as they use up the products. Additionally, satisfied customers are more open to recommendations for related products. What's Popular? When it comes to selecting products to sell based on what's popular, timing is extremely important. New trends and products can be a great boost to your business but you'll need to be at the beginning of the product lifecycle in order to be successful. Learning to pick a hot product before it becomes hot is a valuable skill that comes from knowing your market. Competition Competition is healthy and there are ways other than volume and price a smaller store can compete with larger retailers. On the other hand, the more unique the product, the less chance of competition. 15

Private Label One way to guarantee having a truly unique product line is to make the item yourself. Another way is to partner with a small business that makes a product you would enjoy selling. Also consider private label products which will allow you to brand an item made by another person. Quality When deciding which products to sell in your store, ask yourself the following question. Is this product something I would give my dearest friend? If not, you may want to keep looking. Product quality is extremely important when your reputation is on the line. Diversity Keep your product offering simple in the beginning. If your product line is narrow and focused, then your marketing efforts can be just as tightly focused, which will bring you the best results for your marketing dollars. As your business grows, so can your product line as long as you keep new products compatible with the type of business, your location and your market. The key to having a successful business is to know your products and to believe in the merchandise that you are selling. If you do not believe in the product yourself, then you probably won't be successful at selling it. Keep brainstorming and you'll find a product or product line that meets both the needs of your target market and your own ability to locate it, purchase it and resell it.

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CHAPTER V RESEARCH METHODOLOGY

The data for this study was obtained through Primary & Secondary sources. Primary sources include: o Direct interaction with the customers:For knowing the purchasing habits and preferences. o Direct interaction with shopkeepers To find out the product assortment at their stores & the effect of the entry of organized retail outlets in their respective catchments on their business.

Secondary data was collected through company records.

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RESEARCH DESIGN
Data collection Data for this study is obtained from Primary & Secondary sources. Primary sources include observation, market surveys and interviews. Secondary data has been collected through company records. Research Design The research conducted was both observatory and descriptive in nature. The data was collected basically through a field survey using observation. The research design employed was descriptive research, as it was most suitable. Sampling size 40-50 stores were surveyed in each catchment area. Data source Primary data

The primary data was collected through observation and survey in competitor retailer stores in the segmented area prescribed by our leading manager, we carried with us the 3,500 SKU list which reliance fresh stocks along with informal interviews with the company personnel. Much of the information was collected this way.

18

The main aim of selecting the primary source is that it is necessary to know the current relevant data and information of retailers and consumers and also to know about the changing preferences and expectations of the consumers.

Secondary data

The secondary data was collected from Reliance Industries documents especially the 3,500 SKU list and other internet resources. The secondary data was also collected with the help of News paper and Journals.

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CHAPTER VI ANALYSIS AND FINDINGS

Every week we were assigned a particular location in Delhi and NCR. We used to go the location and conduct a market survey for some 40-50 kirana stores, confectionery shops, bakeries, and some organized retail stores with the aim to find out most preferred or most sold SKUs (or brands) in those locations. The report, then, was submitted to the management which helped them plan the SKUs to be kept in the Reliance Fresh outlets in the particular catchments. The total number of catchments covered was 8, and the products were categorized as business units under the following heads: S.No. 1 2 3 4 5 6 7 8 9 10 11 Analysis & findings hereby follow: Business Unit Apparel and Luggage Equipment Automotive Non Food Food Footwear Furnishing and Dcor CDIT Home Lifestyle Pharma

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Location I: NIT 5, Faridabad, Haryana

Market Overview: 1. 2. 3. 4. 5. 6. 7. 8. Consumers range from lower middle to middle class to price conscious Small stores lack proper infrastructure Lack of variety in branded items and exhibit haphazard display. Food category dominated by local unbranded items eg: flour, loose Non-Food market relatively scarce Lot of popular brands absent. Lower price brands more popular. Malls include: Eldeco group's Station One Mall Manhattan Eros Group's EF3 E Square New branded retail store coming up, adjacent to Reliance Fresh,

consumers.

pulses, rice, namkeens etc.

named '6 to 11'. Customer feedback for kirana stores 1. They feel that the kirana stores are fulfilling their needs and have an

edge over the retail stores as they extend credit facilities, home delivery and the customers have a long standing relationship with the consumers. 2. Kirana stores are experiencing a slight decrease in sales due to entry of the organized retail outlets. 21

For Reliance Fresh 1. They like the ambience and the service provided by the personnel while

shopping; in addition they were happy as they were provided the facilities of drinking water and washrooms not matched by any of the small retail stores. 2. Some people feel that most of the schemes are not very beneficial as they get almost the same amount of discount in the kirana and provisional stores.

Summary of SKUs for Business Units after a survey of 42 retail shops in vicinity of Reliance Fresh, Faridabad, Delhi Not in any S.No. Business Unit 1 Non Food 2 Food Total No. of SKUs 225 2025 2240 Reliance SKUs list 30 307 337

2500 2000 1500 1000 500 0 Non-Food Food No. Of SKUs Not in any Reliance SKUs List

22

List of SKUs preferred in Faridabad, but not present in the original list of 3,500 SKUs prepared by Reliance Retail Ltd. Food Shri Sai Bhog Atta Ajanta Baking Powder Jindal Blended oil Coca Cola 300ml Pepsi 300ml Thumsup Ducks Waffy biscuits strawberry Ducks Waffy choco biscuits Ducks waffy vanilla Doaba Ghee 5kg Paras 1 ltr, mineral water Non-Food V-John Shaving Cream Hari Darshan Aggarbatti Madhusudan Ghee Joe Aggarbatti Axe Deo Cobra Deo Nippo AA size battery Shakti AA size Battery Wills classic ultra mild cigarettes Wills classic Mild cigarettes Drainex Pipe Unblocker Super Max Shaving Blade

Competitor Analysis The following stores have the largest stocking of different SKUs in foods category which present a serious competition to Reliance Retail in Faridabad Area. S.No. 1 2 3 4 5 Store Name Mangla Provision Store Bajrang Kirana Kataria Gen. Store Jindal Store Bhagat Gen. Store No. Of SKUs 470 347 334 330 309

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Bhagatt Genral Store

Mangala Provision Store

Jindal Store

`
Bajrang Kirana Kataria General Store

Mangala Provision Store

Bajrang Kirana

Kataria General Store

Jindal Store

Bhagatt Genral Store

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Location II: Uttam Nagar, New Delhi

Market Overview 1. Consumers range from lower middle to middle class to price conscious consumers. 2. Stores provide all essential commodities, with an emphasis on food items. They however lack proper infrastructure, and exhibit haphazard display. 3. Presence of essential commodities with emphasis on food items. 4. Small stores cover most of the popular branded food items but lack in variety. 5. Popularity of local brands in the category of namkeens and biscuits. 6. Lower price brands more popular. 7. Market was dominated by wholesale shops. 8. It was surprising to find that the dairies and bakeries stocked an assortment of kirana items. 9. Other retailing giants include Big Apple & Subhisksha Customer feedback for kirana stores 1. 2. They feel that the kirana stores should stock the essential items, due to Long standing relationships with customers relevant and valued.

which customers are drawn towards the organized retail outlets.

For Reliance Fresh 1. 2. 3. Presence of essential commodities is appreciated, The ambience gives them a wholesome shopping experience. More schemes should be introduced.

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Summary of SKUs for Business Units after a survey of 42 retail shops in vicinity of Reliance Fresh, Uttam Nagar, Delhi Not in any S.No. Business Unit 1 Non Food 2 Food Total No. of SKUs Reliance SKUs list 319 46 1942 335 2261 381

2000 1500 1000 500 0 Non-Food Food No. Of SKUs Not in any Reliance SKUs List

List of SKUs preferred in Uttam Nagar, but not present in the original list of 3,500 SKUs prepared by Reliance Retail Ltd.

Food
Hathi Brand Atta Gokul flour mills Sai brand Gowardhan flour mills Parle Poppins Satmola Coffee Bite Vicks Fun Flips Nat-Khat Crax Coca Cola 300 ml bottle Harvest Gold bread Perfect bread Uttam Sugar 1 kg Modi Sugar 1 kg

Non-Food
Cycle agarbatti 20 stick Haridarshan 20 sticks aggarbati Nippo Alkaline AA Battery Sony AA size pack of 4 Wills classic regular cigarettes Wills classic mild Wills classic ultra Milds Ship matches Home matches Vi-John Navy Cut regular Red and White Vicco toothpaste 100gm Ghadi detergent

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Raj Hans brand atta Rose Brand Chlormint Hajmola Candy Competitor Analysis:

Pepsi 300 ml bottle Thums Up 300 ml bottle Anmol Yummy 75 gm Jindal oil 1 litre

Following stores have the largest stocking of different SKU's in foods category which present a serious competition to Reliance retail in Uttam Nagar catchment area. S.no 1 2 3 4 5 6 Store name Big Apple Subhiksha Saraswati Arora Gen. Store Khandelwal Store Aggarwal Traders No. of SKU's 1543 1347 1297 1285 1230 969

Big Apple

Subhiksha

Aggarw al Traders

Sarasw ati

Khandelw al Store

Arora Gen Store

Subhiksha

Saraswati

Arora Gen Store

Khandelwal Store

Aggarwal Traders

Big Apple

Location III Welcome, Seelampur

Market Overview 27

1. Consumers range from lower middle to price conscious consumers. 2. Stores predominantly provide food FMCG items. They however lack proper infrastructure, and exhibit haphazard display. 3. There is a sabzi mandi closeby, which suffices the FNV demands of customers, resulting in less people coming to retail stores for food items 4. Popularity of local brands in the category of food FMCG. 5. Lack of variety in non-food FMCG products 6. Lower price brands more popular. 7. Market dominated by kirana stores. 8. Organized retail outlets scarce. Customer feedback for kirana stores Kirana stores should stock more non-food FMCG products.

For Reliance Fresh 1. 2. 3. More variety in food & non-food items is appreciated. The ambience gives them a total shopping experience. Customer loyalty programmes are very popular.

Summary of SKUs for Business Units after a survey of 48 retail shops in vicinity of Reliance Fresh, Welcome, Delhi Not in any Reliance S.No. Business Unit 1 Non Food No. of SKUs 326 SKUs list 51

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2 Food Total

2006 2332

435 486

2500 2000 1500 1000 500 0 Non-Food Food No. Of SKUs Not in any Reliance SKUs List

List Of SKUs preferred in Seelampur but not present in the original list of 3,500 SKUs prepared by Reliance Retail Ltd.

Food
Mango sip 200 ml juice Ashoka loose atta Postman 1 litre edible Oil Chloromint Candy Nat-Khat Snacks Crax Snacks Amul Chocolates Jindal Oil 1Ltr

Non-Food
Cycle agarbatti 20 stick Haridarshan 20 sticks aggarbati Nippo Alkaline AA Battery Sony AA size pack of 4 Wills classic regular Wills classic mild Wills classic ultra Milds Ship matches Home matches Vi-John Navy Cut regular Red and White Vicco toothpaste 100gm Ghadi detergent

Satmola Candy Baba Mustard Oil Nilons mango pickle Baba Mustard Oil 300 gm Fun Flips Snacks Baba mustard oil 500ml Competitor Analysis 500ml Shahji mixture

Following Stores have the largest stocking of different SKU's in Foods category, which pose a serious competition to Reliance Fresh in Subash Nagar catchment Area.

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S.No 1 2 3 4 5

Store Name Man Moti Store Prem General store Singh General Store Mahesh Store Satya Prakash & Sons

No. of SKU's 341 256 241 233 230

Satya Prakash & Sons

Man Moti Store

Mahesh Store

`
Prem General Store Singh General Store

Man Moti Store

Prem General Store

Singh General Store

Mahesh Store

Satya Prakash & Sons

Location IV Subhash Nagar, New Delhi

Market Overview 1. 2. 3. 4. them. 5. 6. Large number of small & medium retail shops. Dairies and bakeries in plenty. Consumers ranging from lower middle to middle class. Consumers more utility conscious than just price conscious. Presence of essential commodities with emphasis on food items. Covering most of the popular branded food items but lack of variety in

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Customer feedback for kirana stores 1. 2. Kirana stores should stock more variety in non-food FMCG products. Long standing relationships with customers relevant and valued.

Customer feedback for Reliance Fresh 1. 2. Variety in popular branded food items appreciated. The ambience gives them a wholesome shopping experience.

Summary of SKUs for business Units after survey of 38 Retail Shops in the vicinity of Reliance Fresh Store, Subhash Nagar, New Delhi Not in any Reliance S.No. Business Unit 1 Apparel and Luggage 2 Non Food 3 Food TOTAL No. of SKUs 83 225 391 699 SKUs list 63 22 26 111

400 350 300 250 200 150 100 50 0 Apparel & Luggage Non-Food Food

No. Of SKUs Not in any Reliance SKUs List

List of major SKUs preferred in Subash Nagar but not present in the original lists of 3,500 SKUs prepared by Reliance Retail Ltd.

Brick Atta

FOOD Article Description Shakti Bhog loose Fibre rich loose

NON-FOOD Brick Air fresheners/deodorisers (non powered) Agarbatti Article Description Garden fresh 200ml spray Shubhmangalam (20 sticks 31

Basmati rice Besan Blended oil Bubble gums Candies Ghee Core biscuits Dates Egg Maida Mouth fresheners

Lal quila loose Aashirwad 10 kg Anmol 5 kg Amanat basmati 10kg Hatthi besan 1 kg Sweekar 5l Sweekar 1l Big bubble Cloro mint 50 ps. Coffee bite Local/ unbranded Anmol ghee 500 ml Anmol 50gm Loose unbranded Regular white shell eggs Local/Unbranded Paas-Paas

Baby feeding bottles Battery Cigarettes Shaving accessories Household disinfectants Laundry detergents Oral care aids (0n powered) Matches Pipe unblockers Shaving blades

box) Haridarshan(10 sticks box) Johnson & johnson 250ml Nippo(aa size) Wills (10 pcs) large Gold flake (10 pcs) large Classic (10 pcs) Godrej shaving brush Rocky phenol (local) 500ml Trishul 500ml Genda phenol 500ml 555 bar Classic soft (med.size) Home lite rs.5 box Haathi (Rs.0.50 box) Smart Lite(Local)(Re.0.50 box) Kiwi Drainex 50gm pp Vijay (10 pcs)

Competitor Analysis Following Stores have the largest stocking of different SKU's in Foods category, which pose a serious competition to Reliance Fresh in Subash Nagar catchment Area. S.No 1 2 3 4 5 Store Name Subhiksha Goel store Vishal store Manocha store Om Prakash & Sons No. of SKU's 363 366 363 361 239

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Om Prakash & Sons

Subhiksha

Manocha Store

`
Goel Store Vishal Store

Subhiksha

Goel Store

Vishal Store

Manocha Store

Om Prakash & Sons

Location V: Gandhi Nagar, Delhi

Market Overview 1. Consumers range from lower middle to price conscious consumers. 2. Stores predominantly provide food FMCG items. They however lack proper infrastructure, and exhibit haphazard display. 3. Popularity of local brands in the category of food FMCG. 4. Lack of variety in non-food FMCG products 5. Lower price brands more popular. 6. Market dominated by kirana stores. 7. Slump market conditions. 8. Organized retail outlets absent. 9. Dairies & chemists in plenty. Customer feedback for kirana stores

33

1.

Kirana stores should stock a variety of essential items, absence of which

draws customers towards the organized retail outlets. Customer feedback for Reliance Fresh 1. 2. 3. More variety in food & non-food items is appreciated. The ambience gives them a total shopping experience. Some people feel that most of the schemes are not very beneficial as they

get almost the same amount of discount in the kirana and provisional stores.

Summary of SKUs for business Units after survey of 32 Retail Shops in the vicinity of Reliance Fresh Store, Gandhi Nagar, Delhi

No. of SKUs S.No. 1 2 3 4 Business Unit Equipment FMCG-Non Food Food Pharma Total present in the list 6 391 825 51 1273

Not in any Reliance SKUs list 4 13 142 0 159

1000 800 600 400 200 0 Equipm ent Non-Food Food Pharm a No. Of SKUs Not in any Reliance SKUs List

List of major SKUs preferred in Gandhi Nagar but not present in the original lists of 3,500 SKUs prepared by Reliance Retail Ltd. FOOD 34

Brick Noodles

Article Description Mayos Himalya Snacks Local Frugo apple Frugo mix apple Tuk 3 Apna bhog (unbranded) Green Soy atta Ahaar 500gm Aahar 1kg Jindal oil 1litre Amul chocolate Nutune gulkand box Pan pasand box Milk Man Amul Milk Chocolate Renia Maini Gopal Jee Ghee 1 kg Unbranded Dahi Jodhpuri moong dal halwa Awadhi badam halwa Bombay halwa mix local Basundi mix Gits rabri mix Gits phirni mix Gits kaleva Gopal elaichi Gopal soft kesar elaichi Gopal pista badam Gopal butterscotch Perfect Vasudev 500ml Origano Grade group kaju Grade group pista Grade group acrot Smith & Jones Corn flours Chings green chilli

Brick

Article Description Anmol Golmol Funfill orange Funfill cream Funfill strawberry Coconutty Smackles Anmol-g Choco bite Don Cheese cracker Spigadora crackers Wheat man cookies Wheatman milk suji toast Notty Eaton Energiser Power horse Mehsons honey Weikfeild orange Weikfeild strawberry Post man 500gm Post man 1kg Unbranded maida Volga Chaudhary cheese Local brand Moti mustard oil Hardil mustard oil Golden sabut 500gm Golden moong sabut1 kg Organic dals unbranded Kanodia brand mustard oil 1 litre,2 litre,20 litre Ricela 1litre Veer jee rusk 100 gm skimed milk powder poly pouch Godrej-sofit 35

Core biscuits

100 % juice

Atta Besan Blended oil Block chocolates Candies and bubble gum Cheese spread Chocolates Chutneys Cooked ghee Dahi

Core Biscuits

Dry bakery cookies Energy drinks Honey Jellies

Dessert ready mixes

Maida Mineral water Mozzarella cheese Murmurre Mustard oil

Flavoured milk

Fresh cream cake Ghee Herbs spices Other dry fruits

Moong dal

Ready to serve (RTS) Rusks & baked biscuits SMP Soya milk

Other flours Other sauces

Pacranga Carrot Pickles Pickle Achar Pachranga Doon Mini Dubar 5 kg Doon Mini Dubar 10 kg Unbranded Rice Raw Rice Type1 Unbranded Hyderabadi Pulao Unbranded Standard Rice Veetee rice Sugar Tea packed leaf Shagun 5 kg. CTC Leaf Tea Spices - others Dabur garlic ginger Home made masala Smith jones fish curry Whole Wheat Bread paste Harvest Gold Soy day Ahaar soya granules Soya nuggets Nutrela Savour nutri Dabur garlic Dabur ginger

Blood pressure monitor First aidaccessories First aid-ice/heated pack Thermometers

EQUIPMENTS Sphygmomameter Chi Swing IBP J&J forehead hot & cold pad Digital thermometer Mt 301-IBP

NON-FOOD Brick Baby diapers (disposable) Article Description Teddy SML 5 pcs Wills Navy Cut Light 10pcs. Large Gold Flake 10 pcs. Large Hawda bidis 10pcs. Large Flake 10pcs. Large Four square 10pcs. Large India Kings 10pcs. Large Wills Classic 10pcs. Large Vicco 100gm

Cigarettes

Dental cleansing

36

Hair colour Laundry detergents Matches Shaving preparations

Neha mehendi 100gm Ghadi detergent powder 200gm Home lite Vi-john

Competitor Analysis Following Stores have the largest stocking of different SKU's in Foods category, which pose a serious competition to Reliance Fresh in the Gandhi Nagar catchment Area

S.No 1 2 3 4 5

Store Name Venus Store Mahaveer General Store Uttam General Store Ramesh Store Bhola Shanker Namkeen Bhandar

No. of SKU's 336 336 335 326 321

Bhola Shanker Namkeen Bhandar

Venus Store

`
Ram esh Store Mahaveer General Store Uttam General Store

Venus Store Ramesh Store

Mahaveer General Store Bhola Shanker Namkeen Bhandar

Uttam General Store

37

Location VI: Khandsa Road (Near Anaaj Mandi), Gurgaon

Market overview: 1. Majority of population belongs to middle and upper middle group. 2. Highly commercial market. 3. Local/unbranded products are more popular. 4. Presence of large number of retail giants in the vicinity. 5. Wholesale transactions predominant. 6. Kirana stores scarce. 7. Wholesalers sell to retailers 8. There is a food grain market close by, which suffices the demands of customers living around, resulting in lesser people coming to retail stores for food items.

38

Customer feedback for Reliance Fresh 1. 2. More variety in food & non-food items is appreciated. The ambience gives them a total shopping experience.

Summary of SKUs for business Units after survey of 38 Retail Shops in the vicinity of Reliance Fresh Store, 422/18, Khandsa Road (Near Anaaj Mandi), Gurgaon. No. of SKUs 429 828 50 59 31 1397 SKUs not found in any list 70 36 43 15 3 167

S.No. 4 5 9 10 11

Business Unit Non Food Food Home Lifestyle Pharma Total

1000 800 600 400 200 0 Non-Food Food Hom e Lifestyle Pharm a No. Of SKUs Not in any Reliance SKUs List

List of major SKUs preferred in Khandsa Road but not present in the original list of 3,500 SKUs prepared by Reliance Retail Ltd. FOOD Article Description Real Twist Haldiram Fresh gold Mishrambu Gagan Loose Anmol Vita Loose Kissan bisleri mountain water

Brick 100 % juice Cow Milk Dahi Ghee Jaggery Jellies Mineral water

39

Mouth fresheners

Passpass Harvest Burger Bread Buns 225 gm Harvest Bread Healthy Whole Wheat Bread 400 gm Harvest Bread Soften French Bread 250 gm

Whole

NON-FOOD Article Brick After Shave Care Description Vi-john Haridarshan agarbatti Haridarshan dhoop Air fresheners/Deodorisers Lotus Mysore sandal (non powered) Premium Taj Goodlook Cycle Antiperspirants/deodorants Axe 100ml Playboy 125 ml MTV 125 ml Baby feeding bottles Bonny Nippo Battery Bpl Energizer Bleach Ala bleach Laundry detergents Ghadi 1kg pwd Classic tooth Oral care/aids (non brush Aquafresh tooth powered) Pipe unblockers Shaving blades brush Drainex 555 blades Vijaya blade Cigarettes Brick Article Description Wills Gold flake Scissors Benson & hedges 555 pataka Four square Kartoos Fair & lovely 75

Cleansing/Washing/Personal gm. Joy 75 gm. J & J Ear buds Cotton wool products 75pcs. Dental cleansing Vicco Powder Biotique Facial tissue/handkerchiefs Beeta Jolly (disposable) All day wipes General/Personal Daffodils hygiene/Other S R foils Colormate Moon star Black rose Sunny 100 ml. Simco Lomani

Hair colour

Hair shampoo Hair styling (non powered)

40

Vidut blade Shaving Razors Disposable (non powered) Vidyut Vi-john shaving cream Emami shaving Shaving preparations cream Nivea shaving cream Cobra shaving cream Sun protection products Garnier Chand toilet cleaner Sun toilet cleaner Taj toilet cleaner S R Toilet Roll Beeta HOME Brick Fridge bottle Jug Facial tissue (wet & dry) Brick Article Description Fridge bottle - Pearlpet Milton Beeta tissue box 100 sheet LIFESTYLE Article Description Cello Montex Reynolds Pentek Pierre Cardin Parker 6 water col CK/5 Wax crayon-pencil, notepad Unbranded Faber-castle Apsara Fa Variants -175ml Vaseline Lipguard Apsara Nataraj Skin drying powder Household cleaning/care aids Hair care products other

Rahat rooh Cantheridin Local Fabler bright Household disinfectants Local Boroft talcum powder Vaseline talcum powder Liril talcum powder Z talcum powder Nivea Home Classic lite

Toilet cleaning products

Toilet paper

Matches

Ball pens

Combi kit Elastic bands Erasers Fragrances Lip balm Lip gloss Sharpners

41

PHARMA Brick Antacids/Indigestion/Flatulence Remedies Antiseptics Dietary Aids/Other

Article Description Crorepati goli Boroline Glucon - D 100 Gm

Competitor Analysis Following stores have the largest stocking of different SKU's in foods category, which pose a serious competition to Reliance Fresh in Khandsa Road catchment Area. S.No 1 2 3 4 5 Store Name Today Store Tapodhani Store Jagdamba Store Hemant Store Needs Store No. of SKU's 646 633 562 560 513

Needs Store

Today Store

Hemant Store

`
Tapodhani Store Jagdam ba Store

Today Store

Tapodhani Store

Jagdamba Store

Hemant Store

Needs Store

42

Location VII: Zamroodpur, GK-1, New Delhi - 48

Market Overview 1. Plethora of markets with designer wear stores and modern retail outlets. 2. Greater Kailash hosts one of the busiest markets in New Delhi (The M-Block market), which sells an assortment of products and commodities as well as very good eateries. 3. There are life-style shops and restaurants like Mcdonalds, Pizza Hut, and twolevel Benetton and so on. 4. Wide range of inexpensive items from the roadside stalls. 5. Kirana stores less in number 6. Limited number of SKUs stocked at kirana stores.

43

Summary of SKUs for business Units after survey of 32 Retail Shops in the vicinity of Reliance Fresh Store, Zamroodpur, GK-1, New Delhi - 48 (Near Lady Sriram College) Not in any S.No. 1 2 3 Business Unit Equipment Non Food Food TOTAL No. of SKUs 8 353 487 848 Reliance SKUs list 4 53 127 174

500 400 300 200 100 0 Equipm ent Non-Food Food No. Of SKUs Not in any Reliance SKUs List

List of major SKUs preferred in Zamroodpur but not present in the original lists of 3,500 SKUs prepared by Reliance Retail Ltd. FOOD Article Brick Atta Blended oil Block chocolates Candies Candies Candies Chips Description Ashoka Loose Jindal Oil 1 litre Amul chocolate 50 gm. Hajmola candy re. 0.50 per pcs Chloromint Vijeta orange Re. 0.50 per pcs. Haldiram classic chips 15g pp (rs.3) Lays masala chips Brick Egg Fruit based (mango) Health supplements others Jams Maida Namkeens Mustard oil Article Description Loose: regular white shell eggs Slice 300 ml btl Glucon-D orange 200 gm Kissan mixed fruit jam Rs.2 pouch Loose maida Murmurre 50gm (local) Baba oil 1litre pet Baba oil 500ml pet

44

Clear

15g pp (Rs.5) 7 Up 300 ml bottle Sprite 300 ml bottle Mountain Dew 300 Limca 300 ml bottle Coca-cola 300 ml bottle Namkeens

Baba oil 15litre tin Baba oil 5litre Hardil mustard oil Duggar mikture Shahji mixture Magic: Fry Noodles noodles, ready to eat 10gm pack

Colas

Pepsi 300 ml bottle Thums Up 300 ml bottle Krown gold cookies 100 gm pp Krown gold premium biscuits 250 gm pp Anmol yummy

Kala chana 1kg Other dals Kala chana 500gm

Cookies

Malka red 500gm Royal blue 500 ml Packaged water pet Royal blue 1 lt pet

Core Biscuits

75gm Anmol-G 75gm pp Britania Tiger cream biscuits 165gm pp P goldMarie Lite

Poha Loose poha Rava / sooji Loose unbranded Loose rice type 1-4 Loose sona masoori Loose parmal regular Loose standard rice Royal blue soda 500 Nutrela Dabur garlic ginger paste Bikaneer mix namkeen 400 gm Bikaneer pouch Crax-Mast mattar 45

Urad dal 100 % juice

Biscuit 16 gm pp Loose urad dal Mango sip 200ml Safal 200ml Good health 5 litre

Raw rice Raw rice Soda / mixers Soya nuggets Spices - others Namkeens

Blended oil Candies Nafed 5 litre Coffee bite Loose candies Nancy Solano re.0.50 per pcs Vicks

10 gm pack Haldiram Taka-Tak Chut kut Fun flips Golmaal Chips Krackkur Krishna Lip chip Yellow's diamond Glucon-D Bru instant coffee 13gm sachet Kingfisher 1litre Rajdarbar Mouth fresheners Rajnigandha Balaji Mustard oil Ashirwad 1lt Rusks & baked Golden OK meat Masala 100gm MDH Garam Spices masala Masala 100gm OK Garam Masala 100 gm pack Satmola Jaljira pow. Re.1 sachet Local turmeric Competitor Analysis Salt Tea packed leaf Ketchups biscuits Wah taj 350 gm Britania rusk 350 gm pack Shaktimaan toast Surya 1kg Nova tea 100 gm pack Hilltop 500ml Packaged water Packaged 15gm pack Pooja all in one 150g pack Pooja aloo bhujia 400g pack Pooja chana chor 150 gm Pooja falhari chiwda 150g pp Pooja kashmiri mix 200g pack Pooja panchratan Other dry fruits mix 150g pack Batashe loose Amrit Taaza bread Golden bite bun Farmer's city fresh max 400 gm bread Lord's bite bread 200gm Oxyizer 1ltr

Health supplements Instant coffee Mineral water

46

Following Stores have the largest stocking of different SKU's in Foods category, but none of them pose much competition to Reliance Fresh in the Zamroodpur catchment area as almost all of them are small retail shops having limited number of SKUs. S.No 1 2 3 4 5 Store Name Brij Lal Senjay Kumar Shiv Store Dinesh Store Sukda Store Vijay Store No. of SKU's 299 276 263 256 249

Vijay Store

Brij Lal Senjay Kum ar

`
Sukda Store Shiv Store Dinesh Store

Brij Lal Senjay Kumar

Shiv Store

Dinesh Store

Sukda Store

Vijay Store

Location VIII: Majlis Park, Adarsh Nagar, New Delhi 33

Market Overview:

47

1. Mix Population ranging from lower income group to higher middle income group 2. HLL has an efficient distribution network in the area because of regular and frequent visits of their sales men and Supervalue Stores 3. Presence of Retailors like Subhiksha and 6 Ten in the vicinity. Big Bazar and Big Apple are in negotiations with many people regarding site for opening their outlets 4. Majority of the stores had large number of SKUs 5. Almost whole population in the area feel that big organised retailers like Reliance, Subiksha, Big Apple etc. are operating in loss, as they aim at eliminating small unorganised retailers 6. Nearby there is Azadpur Mandi which results in less people coming to Retail Stores for Food items.

Summary of SKUs for business Units after survey of 35 Retail Shops in the vicinity of Reliance Fresh Store, Majlis Park, Adarsh Nagar, New Delhi-33 (Near NDPL office) Not in any S.No. 2 4 5 Business Unit Equipment Non Food Food Total No. of SKUs 15 353 734 1102 Reliance SKUs list 4 32 119 155

800 600 400 200 0 Non-Food Food Equipm ent No. Of SKUs Not in any Reliance SKUs List

List of major SKUs preferred in Adarsh Nagar but not present in the original lists of 3,500 SKUs prepared by Reliance Retail Ltd.

48

Food Brick 100 % juice Atta Article description Tuk 3 (1litre) orange Ashoka loose Apna bhog loose Safal loose atta Jindal oil 1 lit Amul chocolate Hajmola candy re.0.50 each Mango mood re.0.50 each Pan pasand re.0.50 each Chana dal regular Channa dal Cheese spread Chocolates Core biscuits Cream biscuits 500gm Chana dal 2 kg Milk man Amul milk chocolate Golmol 100gm Funfill orange cream 100gm Gopaljee milkshake pwdr kulfi flavour 200gm Goaljee milkshake pwdr strawberry flavour 200gm Gopaljee badam shake powder 200gm Anmol yummy 75gm pp Gopaljee thandai powder 200gm Tea bags 100 % juice Spices - others Dabur garlic ginger paste 150gm Homemade masala 200gm tp Brooke bond Safal orange juice 250ml Other flours Pickles Salted biscuits Soya nuggets Brick Ghee Health supplements others Jaggery Maida Mustard oil Article description Madhusudan 5 litre jar Glucon-D orange 200 gm Jaggery (Gur) loose Loose Maida Tez mustard oil 500ml kanodia brand mustard oil 1ltr,2ltr Bombay Chana 200 gm pack (Local) Shahji Mixture 250 gm (Local) Sanskriti Mixture (Local) Gopaljee Dalia 500gm pack Mothers Madras Onion Pickle 400gm Time Pass 150 gm Nutrela 200 gm Loose Dabur garlic paste 50gm Dabur ginger paste 50 gm.

Blended oil Block chocolates

Candies

Namkeens

Instant powders

Cream biscuits Instant powders

49

Core biscuits Cow ghee Dahi Egg

Anmol-g 75gm pp Paras cow ghee 1ltr Loose dahi Regular white shell fresh eggs loose Gopaljee elaichi flavour 200ml Gopaljee kesar

Spices - powder Salt Cookies

Shyam jeera pwd 100 gm cbd Divya salt 1kg pp Parle may fair mini butter cookies 20g pp Parle may fair butter cookies 70g pp Dip trix biscuit (free

Core biscuits

spiderman mask) 18g pp Boomer jelly mango

Flavoured milk

200ml Gopaljee pista badam 200ml Gopaljee butterscotch 200ml Nutune gulkand box 50 gm. Dabur homemade tomato puree 200g

Bubble gums

100pcs box Boomer jelly watermelon 100pcs Parle kaccha mango bite re.0.50 each Bonkers chews re.0.50 each Bonkers chews stick

Candies

Ketchups

Candies

Rs.5 each Cadbury's mr. Pop lollypop (55gx55pcs) box Anmol Lemon Maza

Chips Funflips 35g pp Chips Haldiram's Whoopies 11g pack Pansari Mustard oil Mustard oil Ghee Maida Pickles Mineral water 1 litre Pet Pansari mustard oil 1/2 litre Pet Madhusudan 15L tin Maida, Delhi Mill Stag Local: thakurjimango 500g H2G0 1 litre bottle Paras 1 litre bottle Spices - masala Chocolates Muffins Namkeen Cream biscuits

Cream Biscuits 250g pp Cadbury's Celebrations Lotto Choco Pie Local/Unbranded Kakaji Moong 35 gm. Harnarayan Amla Murabba 1kg Harnarayan gajar Murabba 1kg Chaman Achaar Masala 1/2 kg tp

Pickles

50

Top Ramen 100 gm Spicy Veg Cup Noodles noodles Top Ramen 100 gm Mast Masala Cup Noodles Canned food

Chaman achaar masala 1 kg jar Ching's Secret Sweet Corn kernels 500gm tin

Competitor Analysis Following Stores have the largest stocking of different SKU's in Foods category, which pose a serious competition to Reliance Fresh in Adarsh Nagar catchment Area. S.No 1 2 3 4 5 6 Store Name Subhiksha Randhir Store Barnala Store Mahadev Store Ahuja Store Gurunanak Store No. of SKU's 725 615 501 437 368 345

Subhiksha

Randhir Store

`
Gurunanak Store Ahuja Store Barnala Store

Mahadev Store

Randhir Store

Barnala Store

Mahadev Store

Ahuja Store

Gurunanak Store

Subhiksha

51

Suggestions

52

CHAPTER VII SUGGESTIONS FOR RELIANCE FRESH

A. Reliance fresh should change their product assortment according to the catchment areas. B. The company should strive to stock local brands that are popular in a given area to boost their sales. C. In order to differentiate itself from other big retailers, the company should come up with newer and more effective customer loyalty schemes. D. Reliance can give the option of shopping on credit to its customers. E. Reliance fresh can benefit from starting a home delivery service in areas close to the shop. F. More aggressive advertising campaigns should be undertaken so as to make Reliance Fresh more popular and recognizable among common masses. G. The Company should try to explore new formats in retail operations where there is no competition to be the pioneer. H. Company and sales force should concentrate more on strengthening their retail and distribution relationship and communication. I. Better storage facility, timely supply of goods and an effective system to redress complaints. J. More attractive promotional offers should be devised to attain customer loyalty and retaining them for a longer time. K. The company should make all out efforts to retain the competitive edge in pricing over its competitors.

53

LIMITATIONS

54

CHAPTER VIII LIMITATIONS

1) The storekeepers were reluctant to give data regarding their shops and hence we had to continuously probe for information. 2) To wait patiently, as we were on the learning front. 3) Some of the respondents were sometimes too casual while giving interviews 4) Respondents sometimes had opposite views while having a discussion with us on the retail sector coming up in India.

55

BIBLIOGRAPHY

56

CHAPTER IX REFERENCES AND BIBLIOGRAPHY

BIBLIOGRAPHY

Marketing Management by Philip Kotler Statistical Measures by S.P.Gupta

REFERENCES

www.ril.com accessed on Friday 15th June, 2007 www.about.com accessed on 1st July, 2007 www.retailindia.com accessed on 8th July, 2007

57