PRESENTATION ON RELIANCE FRESH

BY :SIDDHARTH MOHAN SIDDHARTH PARAKH SIDDHARTH GAUTAM B. SHASHANK GUPTA

CONTENTS
ABOUT RELIANCE GROUP FOOD AND GROCERY SEGMENT IN INDIA RELIANCE IN RETAIL ABOUT RELIANCE FRESH ( ASPECTS OF RETAILING)

SPAR
RELIANCE FRESH VS SPAR

ACKNOWLEDGEMENT
I WOULD LIKE TO THANK PROF. MEGHNA VERMA FOR GIVING US THIS PROJECT AS A PART OF CURRICULAM. I WOULD ALSO LIKE TO THANK MY CLASSMATES FOR GIVING US VITAL INFORMATION AND ADVICE, WITHOUT WHOM THIS PROJECT WOULD HAVE BEEN INCOMPLETE. AT LAST BUT ABOVE ALL I WOULD LIKE TO THANK MY PARENTS FOR THEIR UNCONDITIONAL LOVE AND SUPPORT THROUGHOUT MY LIFE.

RELIANCE GROUP
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 US$ 58 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
4

FOOD AND GROCERY RETAILING IN INDIA

HE FOOD AND GROCERY MARKET IN INDIA IS CURRENTLY VALUED AT $236 BILLION, MAKING IT THE SIXTH LARGEST GROCERY MARKET IN THE WORLD. THE UNORGANIZED SEGMENT STILL CONSTITUTES 99 PER CENT OF THE TOTAL FOOD AND GROCERY MARKET, AND IS CHARACTERIZED BY THE TRADITIONAL MOMAND-POP KIRANA STORES. THE MODERN FORMATS ACCOUNT FOR JUST 1 PER CENT OF THE TOTAL FOOD AND GROCERY MARKET AND ARE CHARACTERIZED BY CASH AND CARRY STORES, HYPERMARKETS, SUPERMARKETS, DISCOUNT SUPERMARKETS AND CONVENIENCE STORES

TOTAL RETAIL MARKET

RELIANCE RETAIL LTD OVERVIEW

920 Stores 80 Cities

14 States

Reliance Mart (Hypermarket) 95000 Products Unique Services - Tailoring, shoe & watch repair, Laundry. Future Plan: Saloon

Reliance trends ( Apparels and accessories) Reliance wellness (Medicine, health care and Beauty Products)

 Reliance footprint Reliance time out (Books, toys, music and gifts)

10

Reliance digital Reliance i Store

11

o Reliance jewels o Reliance AutoZone (Auto accessories and services) o Reliance Living Homeware.

12

RELIANCE FRESH :
Industry: Retail

Type: Supermarket
Chairman & Managing Director: Mukesh Ambani

First Outlet: Hyderabad( Banjara Hills)

Founded: 30th October 2006 Headquarter: Mumbai Area: 2000-4000 Sq. Ft. 13

About Reliance Fresh

14

SWOT ANALYSIS

15

STRENGTH:

Private label sale own products (Reliance Select)

Network 1600 channels in villages

16

WEAKNESS:
Poor inventory control

Staff Lack of knowledge about products

Parking

Opportunities:
Farm to fork, No middlemen, Farmers Customer

Hundreds of farmers 1 million farmers next

five years
17

THREATS:

International Retail Giants: Carrefour, Metro AG, Tesco. Bharti Wallmart (Farm to Fork) Operating cost are too high

18

Retail Mix Reliance Fresh

19

PLACE:
Located in small commercial complexes close to 3-4 residential areas
Observation: Close to cross roads Almost in all Major areas: Banashankari, Banaswadi, Bannerghatta road, RMV extension, Doddaballapur , Mattikhere (approx. 16 outlets across bangalore)

20

PRODUCT RANGE:
Vegetables and fruits

House hold items

Food and beverages All premiere brand + Private label

Groceries only private label

Dairy products Non veg food items Ready to eat items
21

PROMOTION:
Main idea make bulk purchase Discount scheme days Saturday and Sunday Reliance fresh membership card Reliance One

22

PRICING:
Low prized private labels Discount on bulk buying

Private Labels:
Maximum Space: Own Products

Less Space: Nestle Maggi, MTR Masala, Pepsi, Lays Chips.

Reasons: High Margin

23

DISTRIBUTION STRATEGY
Inefficient food chain supply

Intermediatory profit margin Wastages in transit Sourcing out requirement Eg. Banjara hill outlet
(A.P)

24

COMMUNICATION MIX
Reliance Group

25

COMMUNICATION MIX:
Reliance Fresh communicates largely about its promotions. The communication is observed in the following ways: a) Through advertising in Newspapers: About location of their stores or opening up of new stores, product range, festive offers. b) Through Fliers: About product range, current promotions. c) Through Events: To spread awareness. d) In store promotions: Largely Sales promotion for example, spot discounts, live announcements, free gifts on a minimum purchase/bill amount.

26

27

STORE DESIGN AND DISPLAY:

Reliance Fresh like other organized retailers in food & grocery has a Grid Layout format. This could be because of the following reasons: a) They get more shelves to stock products

b) Lesser space is wasted in Aisles

c) Customer Familiarity d) Higher Space productivity

28

29

ABOUT DISPLAYS
we found that following displays are usually spotted in a Reliance Fresh store: a) Jackets in corners: These are stands which have Hot Offer written on the white boards b) Racks, Bins c) Weighing Machine next to racks d) Customer Service Desk e) Point Of Sales with frequent Promotion displays on it as well

30

levels of employees in any Reliance Fresh Store : There is a Customer Desk in each Reliance Fresh store which is operated by Customer Service Associates but our understanding through personal experiences suggest that Customer Service Staff needs training as they lack focus on solving customer problems and are also a little apprehensive about receiving customer complaints.

31

FUTURE PLANS
Plans to invest Rs 25000 Crore in next 4 year in their retail division Train students and housewives Customer care & Quality service Part time job Every Indian Consumer New format of food and caf Reliance food Private label sale Kirana store Pharmacy retail store 6000 outlets 784 cities Launch soaps, detergents, cosmetics and non FMCG products Private label
32

PROBLEMS FACED

Roadside vegetable vendors demonstrated in front of a Reliance Fresh Store in Ranchi, Jharkhand on 8 May 07

33

SUGGESTIONS:
Expand Service Give training to staff Improve inventory control

http://www.reliancefresh.info/

34

SPAR LIVE LIFE

BETTER

35

36

SPAR
SPAR Hypermarkets and Supermarkets in India is the result of a license agreement between the Dubai based Landmark Groups Max Hypermarkets India Pvt. Ltd. and SPAR International.
SPAR is the worlds largest independent food retail chain and is present in 34 countries.
37

 SPAR currently has 12 stores in India Shoppers have the option to choose from a wide variety of quality products in every category ranging from grocery, fruits and vegetables, bakery, dairy and take away foods, meat, poultry and fish, wine, beer and spirits, home textiles, personal care, crockery utensils and kitchen appliances, electronics and IT accessories and much more SPAR serves 3 million customers annually In Bangalore alone, SPAR has 14,000 SKUs in the food and grocery category http://www.sparindia.com/

38

39

Reliance fresh
vs SPAR
40

Reliance fresh 441 stores in over 45 towns .

Spar 12 stores in 6 major cities.

stores with size of 2,500-4,000 sq ft

stores size of 66000 sq ft

Only deals with food & grocery

wider range of products

41

42