PART-I

1.1

INTRODUCTION RETAIL

Evolution of Retail
Retail, according to Concise Oxford English Dictionary, is the sale of goods to the public for use or consumption rather than for resale. The barter system was first known retail form; then the currency changed hands; we had the handcart vendor selling goods in the streets; of late we have a pop & mom stores which compliment the neighborhoods stores. The first retailer in India includes Bata, Pantaloon, Bombay Dyeing, Spencers, and Nilgiris & Higginbotham. The current retail scenario is controlled by the likes of Shoppers Stop, Brand Outlets, Big Bazaars etc. The top 4 world players include Wal-Mart, Carrefour, Tesco and Metro. The opportunities as mentioned are aplenty with close to 15000000 sq.feet of retail space is under construction for various malls & shopping centers across the country. Retailing consists of the sale of goods or merchandise, from a fixed location such as a department store or kiosk, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy.

What is Retailing The sale of goods or commodities in small quantities directly to consumers. Buy, Sell & Move

Buy, Move & Sell

Having gone through some of the terminologies in retail and having seen a broad outline of retail now lets look into the 3 basic things, which govern the retail market.

1. Buy Buying would involve the following activities, which would mean setting the guiding principles for all the merchandise decisions that a retailer makes. It should reflect target market desires, retailers institutional type, market place positioning, defined value chain, supplier capabilities, costs, competitors & product trends. 2. Move It can be easily said but the processes that are involved in the move part are complex but simple. From the product stage through the processing stage to the packed ones the move stage would continue. Various levels that involves in move part are: The buyer shortlists the product, places the order. The vendors receives the order, process the same, packs and send it to the distribution center from where it reaches the store for the customer to buy. One of the fast picking up aspects of the logistic in India is the COLD CHAIN. More and more organizations are looking for various aspects of cold chain to ensure that the products where temperature plays a vital role is maintained and sustained till such time the sale happens. The Merchandising and Category management is another important function of the retail industry. In this we have to opt for right product, place, quantity, quality, mix, price and time. Each of the stores would operate on certain basic business projection and all others will follow a typical pattern. For this pattern to be arrived, the merchandise management plays a big role. The merchandise can make or break an organization of its profitability. When we say category management, it would amply the assortments of products the customer sees as reasonable substitutes for each other with similar characteristics. It also covers the process of managing merchandise in a retail business with the objective of maximizing sales and profits of a category. The category manager is also responsible for developing assortment plans for the entire category, buying pricing and coordinating promotions.

3. Sell Finally of the Buy, Move & Sell comes the selling part of it which involves a running of a retail stores. Operations as it is known are the crucial functions, which derive its strength from various other faculties. The beginning of the day is done with the store being opened by the competent person. The first activity to happen will be the housekeeping activities followed by the staff scheduling. The mornings meetings happen chaired by the head of the store. The stock outs are established and the replenishments happen as the day progresses, though it is suggested that replenishments of the stock should always happen when the customer is not there. The head of the store usually inspects any one or all the departments of the store, which is otherwise called the FLOOR WALK. At the end of day the process of concluding the activities is called the END OF THE DAY activities. As the person who is in charge of closing the store goes around checking whether the locks are in place or not; the high value merchandise counters are properly secured; check for any person hidden in the change rooms or cloaks rooms; the cashier would ensure that all the money that has been given as float tallies apart from the money that need to be submitted by the respective cashiers. There will be a checklist that needs to sign off together by the security as well as the in charge for having checked for conformity at the end of the day. 1.2 RETAIL IN DETAIL

The Indian Retail market is worth a whooping 930000 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 total retail market. The balance of 2% amounts anywhere between 18-2000 crores. The difference between organized and unorganized sectors in the US & some of the Far East Asian countries are pretty low unlike in India. With the advent of seasoned players in the field of retail in India, the gap is likely to be abridged in the coming years.

The difference between them is 85:15 in favor of organized sector in the US and 81:19 in the favor of the organized sector in Taiwan. The employment opportunities in retail is pretty high. But again the ratio of organized and unorganized is skewed towards the unorganized sector. While the organized retail sectors deploys 500000 people & the unorganized sector deploys close to 80 times the workforce. Factors that influence the growth in retail The DINK/HINK families, working women, working parents and the rising disposable income has contributed to the growth of Retail across. The middle-income group is the fastest growing segment in the country today. Further the electronic media is also aiding the growth of the Retail industry. 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: 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

Support Functions: The entire operation is possible with the help of a support team. This support team consists of the following: Human Relation-Involves itself in recruitment, training and welfare apart from their regular activities Good Receiving-This department is responsible not just for the receipt of goods but also checking for their conformity and returns goods to the suppliers as need arises. Maintenance-The entire stores furniture and fixtures are taken care of by the maintenance team Accounts-the department, which receives all the cash, charge slips and other types of tenders; keeps a tag on the local store expenditure and also monitors any deviation in the transactions. Housekeeping- Mostly its an outsourced agency, which does the work. They keep the premises clean and tidy at all levels. Security-They are responsible for safeguarding men and material of the organization. VM-This department maintains the displays and the signage across the stores. CSD-Otherwise known as the customer service desk takes care of the customer complaints and issuance of merchandise credit and taking care of the loyalty programmed. IT-The IT department takes care of all the Networking, data maintenance and upkeep of all the tills. 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. Maximum Display Quantity It is the number of SKUs, which can be directly seen by the customer in the front side. Retail types There are three major types of retailing. The first is the market, a physical location where buyers and sellers converge. Usually this is done on town squares, sidewalks or designated streets and may involve the construction of temporary structures (market stalls). The second form is shop or store trading. Some shops use counter-service, where goods are out of reach of buyers, and must be obtained from the seller. This type of retail is common for small expensive itms (e.g. jewelry) and controlled items like medicine and liquor. Self-service, where goods may be handled and examined prior to purchase, has become more common since the Twentieth Century. A third form of retail is virtual retail, where products are ordered via mail, telephone or online without having been examined physically but instead in a catalog, on television or on a website. Sometimes this kind of retailing replicates existing retail types such as online shops or virtual marketplaces such as eBay or Amazon. Retail pricing The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailers cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. In Western countries, retail prices are often so-called psychological prices or odd prices: a little less than a round number, e.g. $6.95. In Chinese societies, prices are generally either a round number or sometimes a lucky number. This creates price points. Often prices are fixed and displayed on signs or labels. Alternatively, there can be price discrimination for a variety of reasons. The retailer charges higher prices to some customers and lower prices to others. For example, a customer may have to pay more if

the seller determines that he or she is willing to. The retailer may conclude this due to the customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Price discrimination can lead to a bargaining situation often called haggling a negotiation about the price. Economists see this as determining how the transaction's total surplus will be divided into consumer and producer surplus. Neither party has a clear advantage, because the threat of no sale exists, whence the surplus vanishes for both. Retailers who are overstocked, or need to raise cash to renew stocks may resort to "Sales", where prices are "marked down", often by advertised percentages - "50% off" for example."Sales" are often held at fixed times of the year, for example January sales, or end-of-season sales, or Blue Cross Sale. Top Retailer Worldwide Rank Retailer 1 Wal-Mart Stores, Inc. 2 Carrefour Group 3 The Kroger Co. 4 The Home Depot, Inc. 5 Metro (Source: Stores/Deloitte Touche Tomahatsu) Home Country U.S.A. France U.S.A. U.S.A. Germany

1.4

RETAIL SECTOR IN INDIA

As the corporate the Piramals, the Tatas, the Rahejas, ITC Ltd, S.Kumars, RPG Enterprises, Shoppers Stop, Pantaloons, Reliance Retail, Vishal Mega Mart, Aditya Birla Group, Subhiksha, Landmark Group, True Mart race to revolutionize the retailing sector, retail as an industry in India is coming alive. Across the country, retail sales in real termss are predicted to rise more rapidly than consumer expenditure during 2003-08. The forecast growth in real retail sales during 2003- 2008 is 8.3% per year, compared with 7.1% for consumer expenditure. Modernization of the Indian retail sector will be reflected in rapid growth in sales of supermarkets, departmental stores and hyper marts. Sales from these large-format stores

are to expand at growth rates ranging from 24% to 49% per year during 2003-2008, according to a latest report by Euro monitor International, a leading provider of global consumer-market intelligence. A. T. Kearney Inc. places India 6th on a global retail development index. The country has the highest per capita outlets in the world - 5.5 outlets per 1000 population. Around 7% of the population in India is engaged in retailing, as compared to 20% in the USA. The factors responsible for the development of the retail sector in India can be broadly summarized as follows: Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Looking at income classification, the National Council of Applied Economic Research (NCAER) classified approximately 50% of the Indian population as low income in 1994-95; this has declined to 17.8% in 2006-07. Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogg, Unilever, Nestle, etc. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. The internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in creating awareness about global products for local markets. About 47% of Indias population is under the age of 25; and this will increase to 55% by 2015. This young population, which is technology-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country. As India continues to get strongly integrated with the world economy riding the waves of globalization, the retail sector is bound to take big leaps in the years to come.

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The Indian retail sector is estimated to have a market size of about $ 180 billion; but the organized sector represents only 3% share of this market. Most of the organized retailing in the country has just started recently, and has been concentrated mainly in the metro cities. India is the last large Asian economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold through the super markets and departmental stores. A similar phenomenon has swept through all other Asian countries. Organized retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services. A study conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially through increased levels of penetration in larger towns and metros and also as it begins to spread to smaller cities and B class towns. Fuelling this growth is the growth in development of the retail-specific properties and malls. According to the estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed and will be available for occupation over the next 36-48 months. Fitch expects organized retail to capture 15%-20% market share by 2010. A McKinsey report on India says organized retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. At 6%, the share of employment of retail in India is low, even when compared to Brazil (14%), and Poland (12%). Total Private Consumption Expenditure in India 375 Billion USD Retail Sale 205 Billion USD Organized Retail 6.2 Billion USD (3%) Retailing 35% of GDP

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1.5

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 7,00,000 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, Pantaloon. 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 variety of 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!. Hypermarts/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 sales. Super

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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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1.6 INTRODUCTION TO THE COMPANY

reliance group Founder Chairman of Reliance Group "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 Shri Dhirubhai Ambani was an exceptional human being and an outstanding leader. He dared to dream on a scale unimaginable before in Indian industry. His life and achievements prove that backed by confidence, courage and conviction, man can achieve the impossible. From a humble beginning, he went on to create an enviable business empire within a span of just 25 years. The US$ 54 billion Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals.

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The Group's track record of consistent growth is unparalleled in Indian industry and perhaps internationally too. Today, the Group's turnover represents nearly 3 percent of India's GDP. The corporate philosophy he followed was short, simple and succinct - "Think big. Think differently. Think fast. Think ahead. Aim for the best". He inspired the Reliance team to do better than the best - not only in India but in the world. He was probably the first Indian businessman to recognize the strategic significance of investors and discover the vast untapped potential of the capital markets and channelise it for the growth and development of industry. He was supremely confident that finance would never be a constraint in executing his projects because, as he said proudly, Indian investors would provide him with the necessary resources. For him, his people were his most important asset. He scouted around for the best and most talented professionals, nurtured them and continuously propelled them to aim for still higher goals. These highly motivated people comprise the core of what he named: "The Reliance Family". Shri Dhirubhai Ambani visualized the growth of Reliance as an integral part of his grand vision for India. He was convinced that India could become an economic superpower within a short period of time and wanted Reliance to play an important role in realizing this goal. The Bhagavad Gita states, "The actions of a great man are an inspiration for others. Whatever he does, becomes a standard for others to follow." This certainly applies to Shri Dhirubhai Ambani. The Reliance Group 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, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.

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The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles and retail. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fiber 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.

Mr. Mukesh Ambani Chairman & Managing Director Mr. Mukesh D. Ambani, age 49, is a Chemical Engineer from the University of Bombay and pursued MBA from Stanford University, USA. He is the son of Mr. Dhirubhai H. Ambani, Founder Chairman of the Company Mukesh Ambani is the chairman, managing director and the largest shareholder of Reliance Industries, India's largest private sector company and a Fortune 500 Company. His personal stake in Reliance Industries is 48%. His wealth is US$ 20.1 billion as of March 2007, making him the world's 14th richest person and the second richest person in India. Mukesh and younger brother Anil are sons of the late founder of Reliance Industries.

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Mukesh Ambani joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibres and further into petrochemicals. In this process, he directed the creation of 60 new, world-class manufacturing facilities involving diverse technologies that have raised Reliance's manufacturing capacities from less than a million tonnes to twelve million tonnes per year. Mukesh Ambani is also steering Reliance's initiatives in a world scale, offshore, deep water oil and gas exploration and production program, a pan-India petroleum retail network involving 5,800 outlets and a research-led life sciences initiative covering medical, plant and industrial biotechnology. Mr. Mukesh D. Ambani joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibers and further into petrochemicals. In this process, he directed the creation of several new and large world-class manufacturing facilities involving diverse technologies that have raised Reliance's petrochemicals manufacturing capacities from less than a million tones to over thirteen million tones per year. He directed and led the creation of the world's largest grassroots petroleum refinery at Jamnagar, India, with a present capacity of 660,000 barrels per day (33 million tones per year) integrated with petrochemicals, power generation and port and related infrastructure. He had set up the Reliance's communications technology initiative that is the largest and most complex information and communications technology initiative in the world. Mr. Ambani is steering Reliance's initiatives in a world scale, offshore and onshore oil and gas exploration and production program, creation of a pan-India petroleum retail network and setting up of a new export oriented refinery through RIL's subsidiary Reliance Petroleum Limited (RPL) with a capacity of approximately 580,000 barrels per stream day integrated with a 0.9 MMTPA polypropylene plant. Mr. Ambani's Achievements include: Conferred 'ET Business Leader of the Year' Award by The Economic Times (India) in the year 2006. Had the distinction and honor of being the co-chair at the World Economic Forum Annual Meeting 2006 in Davos, Switzerland.

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Ranked 42nd among the 'World's Most Respected Business Leaders' and second among the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and published in Financial Times, London, November 2004. Conferred the World Communication Award for the 'Most Influential Person in Telecommunications in 2004' by Total Telecom, October 2004. Chosen 'Telecom Man of the Year 2004' by Voice and Data magazine, September 2004. Ranked 13th in Asia's Power 25 list of 'The Most Powerful People in Business' published by Fortune magazine, August 2004. 30 Growth is Life Conferred the 'Asia Society Leadership Award' by the Asia Society, Washington D.C., USA, May 2004. Ranked No.1 for the second consecutive year, in The Power List 2004 published by India Today, March 2004. Mr. Mukesh D. Ambani is the Chairman of Indian Petrochemicals Corporation Limited, Reliance Petroleum Limited and Reliance Retail Limited. He is member of the Shareholders'/ Investors' Grievance Committee of the Company. 1.7 Major Subsidiaries & Associates:The Reliance Industries Limited is the flagship company of Reliance Group which has ownership interest in the following subsidiaries & associates Major Subsidiaries Reliance Petroleum Limited Reliance Netherlands BV (including Trevira) Reliance Retail Limited Ranger Farms Private Limited Retail Concepts and Services Private Limited Reliance Retail Insurance Broking Limited Reliance Dairy Foods Limited Reliance Retail Finance Limited RESQ Limited Reliance digital Retail Limited

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Reliance Service Solutions Limited Reliance Jamnagar Infrastructure Limited Reliance Haryana SEZ Limited Reliance Industrial Investment & Holdings Limited Reliance Ventures Limited Reliance Strategic Investments Limited Reliance Exploration & Production - DMCC Reliance Industries (Middle East) DMCC Reliance Global Management Services (P) Limited Reliance Commercial Associates Private Limited RIL (Australia) Pty Limited Major Associates Indian Petrochemicals Corporation Limited Reliance Industrial Infrastructure Limited

Reliance Fresh 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. These stores sell fresh fruit and vegetables besides staples (dal, atta, rice) as well the companys in-house brand Reliance Select and Reliance Value. 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 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

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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. The Fresh stores at Hyderabad are part of a pilot project, which will help company understand customer needs. The pilot for this format will be taken to many other cities over the next few months. Next on the companys list are bigger cities including Delhi and Mumbai RIL intends to invest close to Rs 25,000 crore over the next five years in the retail business. The company plans to establish 4,000 retail outlets across various formats by then, and is eyeing sales of Rs 1,00,000 crore over the 5-year period from the retail business. Besides Reliance Fresh, the company also plans to launch larger format stores called Feel Fresh Plus which will be spread over 10,000-15,000 sq ft. The Fresh Plus stores will stock fruit and vegetables as well as apparel, consumer electronics, FMCG items and even medicines. From Hyderabad, these stores will travel to Mumbai and Delhi where Reliance has identified up to 80 locations each. But even as the retail debut kicks off with fruit and vegetables, it seems the company is doing a rethink on whether to get into the larger formats such as hypermarkets and supermarkets. These two formats require over 1 lakh sq ft of space and may not come up at prime city locations. Instead, Reliance is contemplating tapping alterative sites such as the SEZs for opening hypermarket The strategy is to open one Reliance Fresh store in a radius of three to four km to serve 1,000-2,000 families. This means about 30-40 stores in the major metros. Reliance Fresh is selling vegetables and fruits sourced from farmers through the companys agri hubs. Reliance Fresh would carry fresh fruits and vegetables, staples, top-up grocery, nonfood 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.

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A targeted sales turnover of Rs 90,000 crore (US$ 20 billion) by 2010 with a planned investment of Rs 30,000 crore 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! Culling information from all possible sources, Images F&R Research attempts to put the Reliance Retail jigsaw in order and see how the concept and strategy differentiates from the existing competition, how it impacts the intermediaries and consumers, and more interestingly, how will it stand up to the real competition from global retail powerhouses like Wal-Mart, Carrefour, Target, Metro, Sears and Tesco that are eager to enter the Indian retail arena once the FDI barrier is lifted. Read on for the full story 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. Amidst all sorts of speculations in the media circles about RIL's intended retail foray, the word finally came out on January 23, 2006, when the Mukesh Ambani-controlled Reliance Industries Limited presented the mega retail initiative plans to its board of directors who subsequently gave their consent to pursue the retail business through a wholly-owned subsidiary of the company likely to be christened Reliance Retail Limited. The Reliance Retail blueprint envisages nation-wide chains of hypermarkets, supermarkets, discount stores, department stores, convenience stores and specialty stores, in about 800-odd cities and towns across the length and breadth of India. The RIL board of directors approved the initial phase of the retail foray at an estimated cost of Rs 3,350 crore (US$ 750 million). That was big news for both the national and international media, which went all agog again with intense speculation. Giving full respect to the importance of this announcement, more than one leading international daily chiefly, The Financial Times gave this news a front-page treatment, speculating (like many others) that this

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investment could just be an initial tranche of a much larger commitment from Reliance Industries towards the retail project. Just how big and grand this investment is for the Indian retail sector can be gauged by the simple fact that the entire Indian retail sector is estimated to be at Rs 1050,000 crore (US$ 233 billion) growing at five per cent annually and the estimated share of organised retail is only Rs 36,000 crore (US$ 8 billion), at present, albeit growing at over 30 per cent every year. That makes Reliance Retail's proposed investments equivalent to about 10 per cent of India's organised retail market such a level of investment in the Indian retail arena has been unprecedented in the country's most promising sunrise industry retail. So much so, projections by the Images-KSA India Retail Report 2005 of an organised retail market of Rs 100,000 crore (US$ 22 billion) by 2010 now appears conservative, likely to be achieved much earlier than 2010. If Indian retail was lacking a whole-hearted and full-blooded thrust from a big and large corporate house (apart from the lukewarm investments made by the Tatas and ITC), it is now all set to change. Mukesh Ambani, who has been nourishing retail ambitions for quite some time now, has clearly positioned himself in to the role of redefining the entire landscape of Indian retail. RIL Set To Become World's Largest Real Estate Property Owner What is even more interesting is that Reliance Industries Limited will far out-surpass the Catholic Church in becoming the world's largest owner of real-estate property by virtue of its mega Retail and Satellite Township plans, in the next two to three years! Now what exactly does this mega retail plan portend for the Indian retail sector? In fact, what exactly are RIL's plans, in terms of retail strategy? How will RIL differentiate its stores and concept from existing players who have already moved into the retail space earlier, and have already established a good foothold? How will this impact the existing retail majors the likes of Pantaloon Retail, Trent India, Shoppers' Stop, RPG, etc? How will the consumer benefit from RIL's venture and how will intermediaries like traders, suppliers and farmers all along the supply chain network benefit? What will be the USP of Reliance Retail?

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And, more significantly, how will this impact the major international retailers who plan to enter the Indian retail market? Reliance Retail is in fact giving India for the first time a real feel of the scale at which these global retail powerhouses actually operate, it is preparing India to stand up to the ensuing competition and in the process, allow consumers the full benefits of modern retail. 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. 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 crore (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

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vegetables at affordable prices to consumers. Currently, Reliance Fresh has over 100 stores across the country. 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 crore. Reliance Fresh is the companys brand for neighborhood fresh-food outlets. It will also sell kitchen equipment and other edibles. Besides, it has planned hypermarkets, supermarkets, discount stores, department stores, convenience stores and specialty stores, to be unveiled shortly. The Reliance Fresh supermarket chain is RILs Rs 25,000 crore 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 nonvegetarian products. Currently, selling through company-owned stores currently totals just $8 billion in India. Industry estimates say that the countrys retail industry is worth $300 billion, that is about Rs 13, 50,000 crore. This stands a chance to blossom to $427 billion in the next four years. Organized retail accounts for just over Rs 35,000 crore. Reliance Fresh bids to tap the potential for organized retail in the country. Point of Sale Software System Retalix StoreLine is an open-standards, fully integrated and cross-functional Point of Sale (POS) and store management software system. Its uniqueness is in the functionality, world-wide install base, and hardware independence. Multi-Concept Functionality that delivers a fully integrated POS solution to meet all of your business needs

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Open by Design supports industry standards and is hardware independent plus integration with other third-party retail applications is straightforward, affordable and low risk Advanced Promotion Features enable a single point of update for pricing and promotions across all retail formats Graphical, Easy to Use flexible intuitive user interface, touch-screen capabilities and even graphical customer screens, means that cashier training is minimal and customer interaction is effortless Quick Service Deli, provides a powerful method of managing fresh-made sandwiches and deli items Fuel provides full support for operating an onsite fuel station, supporting a full range of fuel station and supermarket services Retalix BackOffice is tightly integrated with Retalix StoreLine, and offers POS item management and reporting, DSD receiving, label and sign printing, handheld RF communications, host communications and in-store ordering Retalix PocketOffice is a mobile platform that enables users to manage store operations anywhere in the store, taking the application to the business decision point, while on the sales floor or receiving dock. Retalix StoreLine is installed in more than 250,000 POS terminals worldwide, and is the selected POS solution of top-tier retailers such as Tesco, Publix, Sainsbury's, Woolworths Australia, Delhaize Group, Hy-Vee, and the A.S. Watson Group.

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1.8 Supply Chain Management A supply 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.

Farmers

Collection center

Reliance Fresh

Distribution center

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 arborescent network, various modes of transportation may be considered, and the bill of materials for the end items may be both deep and large.

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1.9 RELIANCE ONE MEMBERSHIP CARD This is a card which was given to the customer at free of cost. This card helps to increase the loyalty sales percentage of the store. Benefits of this card are: Customer will get 1% point of his purchasing amount added to his\her membership card. When these points will become 25, it means that 25 points is equivalent to 25/-. He\she will be able to redeem his\her points & get a discount of 25/With this card customer will get Accidental Death Insurance of 50000/- by default. If customer will recharge their Hutch, Reliance, Airtel & Idea mobile from CSD then also 15 point of the amount he recharge will be added to his card. In starting customer will get temporary card, which is valid for 180 days. Within 180 days customer will get permanent card, which is look like plastic card at postal address given by the customer in the form for issuing of RelianceOne Membership Card. The customer has fill up all the required details mentioning his Reliance One Membership card number, first name and last name. 1. The MSR has to handover the new temporary card to the customer and fill up the new card number in the space provided. The MSR has to destroy the corresponding application form by tearing it. 2. The customer has to sign the request form and hand it over to the MSR. 3. The MSR checks for the following on the form a. Reliance One membership number b. First Name c. Last Name

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d. If the card is damaged, the MSR has to collect the damaged card and tick the appropriate option on the application form. If the card is lost, then the appropriate option is ticked. e. Date f. Customer Signature 4. The MSR has to inform the customer that he\she will not be able to earn points using the old card since it will be deactivated. 5. The MSR should inform the customer that he\she would be able to use the new card with immediate effect. However, the customer can start redeeming only after a period of 21 working days, which are required for processing the replacement request. 6. The MSR then fills up the information in the FOR OFFICE USE space. 7. The format for request ID is store code- date in DDMYY- serial number stating from 0001. 8. The MSR fills up the MSR code and signs in the space provided. 9. All these damaged cards and application for replacement cards should be filled separately and kept at store under lock and key. 10. Once the system for making these changes is live, all these forms have to be sent to the data entry center for the processing. The data for dispatch will be notified later. The format of Application Form for Request for Replacement Card is: Application Form for Request for Replacement Card

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PART-II

29

2.1 Literature review

The use of consumer preference in retailing has increased rapidly in recent times, yet more often than not promotions are being implemented with an inadequate understanding of which mechanisms are most effective, for which products and for which shopper segments (Felgate et al, 2011). Despite this growth in the use of promotions, particularly in the Fast Moving Consumer Goods (FMCG) sector, consideration of their impact and effectiveness amongst academics has been limited. It has been identified as an important area for future research, as has the greater use of supermarket panel data to provide insights into how different shoppers respond to price changes, including promotions (Grewal and Levy, 2009). Moreau et al (2001) assert that a lack of understanding by retailers about consumer perceptions of promotions can lead to weaknesses in their marketing strategies. Thus, as the use of promotions continues to grow, it is increasingly important to gain a more complete understanding of how consumers actually behave in response to different promotional activities. This paper reports the use of loyalty card data from one of the biggest retailers in the world Tesco - to analyse the impact of promotions. The aim of the paper is to demonstrate how such data can bring significant benefits to retailers and manufacturers when deciding promotional strategies, over and above traditional scanner datasets, which the majority of existing research is based around. While the case study is based on data from the UK, it demonstrates how other major retailers with similar loyalty card schemes (e.g. Kroger in the USA, and Casino in France) could make use of this powerful source of behaviour data to gain a better understanding of the effectiveness of promotions in

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key (destination) categories. The paper also contributes to the existing promotions literature, through presenting a conceptual framework to test the moderating effect of shopper specific characteristics such as life-stage and region on promotional impacts. Spotlights that a number of consumer preference benefits flow to manufacturers and consumers. Manufacturers can adjust to short-term variations in supply and demand and test how high a list price they can charge, because they can always discount it. consumer preference induce consumers to try new products and lead to more varied retail formats, such as everyday low pricing and promotional pricing; for retailers, promotions may increase sales of complementary categories (cake mix promotions may drive frosting sales) as well as induce store switching. They promote greater consumer awareness of prices. They help manufacturer sell more than normal at the list price and adapt programs to different consumer segments. Service marketers also employ sales promotions attract new customers and establish loyalty. Roger A. Stang (1976) indicates that several factors contributed to rapid growth of sales promotion, particularly in consumers markets. Promotions have become more accepted by top management as an effective sales tool; the number of brands has increased; competitors are using promotions frequently; many brands are seen similar; consumers have become price oriented; trade is demanding more deals from manufacturers; and advertising efficiency has declined. consumer preference is a key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Likewise, KusumAilawadi, Karen Gendenk and Scott A. Neslin (1999), observe that sellers useincentive-type promotions to attract new triers, to reward loyal customers, and to increase the repurchase rates of occasional users. Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premiums. If some of them would not have otherwise tried the brand, promotion can yield long-term increases in market share.

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2.2 Research methodology

EXECUTIVE SUMMARY The project studies were conducted at Reliance Fresh convenience store of Reliance Retail situated at GandhiNagar Sec-21. The Summary of the project is as follows: Project title is Promotional Activities In Reliance Fresh of , GandhiNagar Sec-21., Research methodology is Sampling plan :Non Probability (convenience) Research design :-

Exploratory research. Data collection method :Interrogation through personal interview. 32

Objectives of the study : To study and analyse the promotional activities at reliance fresh Gandhinagar To study the most preferred promotional schemes by customers of reliance fresh To identify the impact of promotional schemes on shopping behavior

Limitation of the study: The study was restricted to theoretical ground only so it was difficult to draw the true interpretations of the study. It is also having the geographical limitation as the customers of Gandhinagar zone were selected as respondent for the study. The conclusion arrived at are based on vary less experience of researcher in this field.

Sampling plan :Non Probability (convenience) Research design :-

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Exploratory research. Data collection method :Interrogation through personal interview.

2.3 Data Analysis and Finding

Q1. Is Reliance fresh your first preference in comparison with other retail competitors such as Big Bazaar, V Mart.. ?

Comparison with other retail competitor Valid Frequency Percent Valid yes no 54 46 54.0 46.0 100.0 Percent 54.0 46.0 100.0 Cumulative Percent 54.0 100.0

Total 100

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above chart we can analyse that 54 of the respondent said yes that Reliance fresh is their first in comparision with other retail .And remaining 46 of the respondent said no that Reliance fresh in comparision with other retail.

Q2. Do advertisement and promotion activities influence your shopping decision?

Advertisement and promotion Valid Frequency Percent Valid yes no 51 49 51.0 49.0 100.0 Percent 51.0 49.0 100.0 Cumulative Percent 51.0 100.0

Total 100

In the above chart 51 of the respondent said yes that reliance fresh in advertisement and promotion of the retail. And remaining 49 of the respondent said no that reliance fresh in promotion with other retail.

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Q3. From where do you come to know promotion activity of Reliance Fresh?

Promotion activity Valid Frequency Percent Valid Sms newspaper Pamphlets Total 17 47 36 100 17.0 47.0 36.0 100.0 Percent 17.0 47.0 36.0 100.0 Cumulative Percent 17.0 64.0 100.0

In above chart 17% of respondents are said sms on promotion activity for Reliance fresh ,47% are respondent said newspaper, 36% of respondents are said on promotion activity for Reliance fresh.

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Q4. Which promotional strategy offered by reliance fresh you prefer the most? 4.1 Discounts on MRP

promotionalstrategy1 Valid Frequency Percent Valid highly preferred least prefered Total 49 51 100 49.0 51.0 100.0 Percent 49.0 51.0 100.0 Cumulative Percent 49.0 100.0

In above chart 49% respondents are said highly prefered on promotion activity for discount on MRP ,51% of respondents are said least preferred for discount on mrp.

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4.2 Buy one get one free promotionalstrategy2 Valid Frequency Percent Valid highly preffred Total 49 49.0 51.0 100.0 Percent 49.0 51.0 100.0 Cumulative Percent 49.0 100.0

least preffered 51 100

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In above chart 49% respondents are said highly preferred on promotion activity for Buy one get one free ,51% of the respondents are said least preferred for buy one get one free

4.3

Budhwa ki mandi

promotionalstrategy3 Valid Frequency Percent Valid highly preferred Total 54 54.0 46.0 100.0 Percent 54.0 46.0 100.0 Cumulative Percent 54.0 100.0

least preffered 46 100

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In above chart 54% respondents are said highly preferred on promotion activity for Budhwar ki mandi ,45% of the respondents are said least preferred for Budhwar ki mandi

Q5. How you find in store promotion communication Store promotion communication Valid Frequency Percent Valid very poor 11 Poor Good Total 31 36 100 11.0 31.0 36.0 22.0 100.0 Percent 11.0 31.0 36.0 22.0 100.0 Cumulative Percent 11.0 42.0 78.0 100.0

very good 22

40

chart 11% respondents are said very poor store promotion communication ,respondents are poor 31% respondents are need to 22% of store promotion communication

Q6. Are you aware about Point Card System of Reliance Fresh? Point Card System Valid Frequency Percent Valid yes no 54 46 54.0 46.0 100.0 Percent 54.0 46.0 100.0 Cumulative Percent 54.0 100.0

Total 100

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In above chart 54% respondents are said yes for point card system,46% respondents are no point card system.

Q7. If yes than how did you find the system? The system Valid Frequency Percent Valid Good Fair Poor need improvement Total to 11 29 33 27 100 11.0 29.0 33.0 27.0 100.0 Percent 11.0 29.0 33.0 27.0 100.0 Cumulative Percent 11.0 40.0 73.0 100.0

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In above chart 11% respondents are said good system, 29% respondents are fair system 33% respondents are poor, 27% respondents are need to improveme

Q8. How does u compare Reliance fresh with big Bazaar Compare Reliance fresh with big Bazaar Valid Frequency Percent Valid Price factor Availability products Customer service Total of 19 46 35 100 19.0 46.0 35.0 100.0 Percent 19.0 46.0 35.0 100.0 Cumulative Percent 19.0 65.0 100.0

43

In above chart 19% respondents are said price factor of reliance fresh same with big bazaar and 46% respondents are said product available and 35% respondents are said good service provide compare to big bazaar.

Q9. What segment of product do you preferbuying from Reliance fresh Stores? 9.1 Food and bakery

Valid Frequency Percent Valid highlyprefred 53 leastprefered 47 Total 100 53.0 47.0 100.0 Percent 53.0 47.0 100.0

Cumulative Percent 53.0 100.0

44

In above chart 53% respondents are said prefered

high preferred ,47% respondents are least

9.2 Fruits and Vegetables

Valid Frequency Percent Valid higlyprefered 43 leastprefered 57 Total 100 43.0 57.0 100.0 Percent 43.0 57.0 100.0

Cumulative Percent 43.0 100.0

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In above chart 43% respondents are said high preferred for fuits and vegitables and 57% respondents are said leastpreffred.

9.3 Dairy Products

Valid Frequency Percent Valid higlyprefered 51 leastprefered 49 Total 100 51.0 49.0 100.0 Percent 51.0 49.0 100.0

Cumulative Percent 51.0 100.0

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In above chart 51% respondents are said high prefferd for daily product and 49% respondents are least preffred for daily product.

9.4 Toiletries and cosmetics

Valid Frequency Percent Valid higlyprefered 45 leastprefered 55 Total 100 45.0 55.0 100.0 Percent 45.0 55.0 100.0

Cumulative Percent 45.0 100.0

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above chart 45% respondents are highly preffred for Toiletries and cosmetics and 55% respondents are least preffred for Toiletries and cosmetics.

9.5 Health Care preferbuying5 Valid Frequency Percent Valid Highlyprefere d Total 41 41.0 59.0 100.0 Percent 41.0 59.0 100.0 Cumulative Percent 41.0 100.0

Leastprefered 59 100

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In above chart 41% respondents are highly preffred for health care And 59% respondents are least preffred for health care products.

9.6 Processed food

Valid Frequency Percent Valid higlyprefered 45 leastprefered 55 Total 100 45.0 55.0 100.0 Percent 45.0 55.0 100.0

Cumulative Percent 45.0 100.0

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In above chart 45% respondents are highly preffred for processed food And 55% respondents are least preffred for processed food.

9.7 Beverages

Valid Frequency Percent Valid Highlyprefere d Leastprefred Total 52 48 100 52.0 48.0 100.0 Percent 52.0 48.0 100.0

Cumulative Percent 52.0 100.0

50

In above chart 52% respondents are highly preferred for beverages And 48% of respondents are least preferred

9.8 Herbs & Spices

Valid Frequency Percent Valid Highlyprefere d Total 52 52.0 48.0 100.0 Percent 52.0 48.0 100.0

Cumulative Percent 52.0 100.0

Leastprefered 48 100

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In above chart 52 % respondents are highly proffered for Herbs & Spices 48% respondents are least preffred for Herbs & Spices.

9.9 Confectionaries

Valid Frequency Percent Valid Highlyprefere d Total 52 52.0 48.0 100.0 Percent 52.0 48.0 100.0

Cumulative Percent 52.0 100.0

leastprefered 48 100

52

In above chart 52 % respondents are highly preffred for Confectionaries and 48% respondents are least preffred for Confectionaries.

Q10. As compared to other shops, what do you think of the pricing of the products of Reliance fresh?

Pricing of the products Valid Frequency Percent Valid Low High Veryhigh Total 11 29 27 100 11.0 29.0 33.0 27.0 100.0 Percent 11.0 29.0 33.0 27.0 100.0 Cumulative Percent 11.0 40.0 73.0 100.0

almostsame 33

53

In above chart 11% respondents are said to low pricing compare of other store ,29% respondents are said high price ,33% respondents are said same rice, 27% respondent are said very high price.

Q11. In your experience, how long is the time taken for the billing? Time taken for billing Valid Frequency Percent Valid <2mints 2-5mints 12 29 12.0 29.0 37.0 21.0 100.0 Percent 12.0 29.0 37.0 21.0 100.0 Cumulative Percent 12.0 41.0 78.0 100.0

6-10mints 37 >10mints 21 Total 100

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In above chart 12% respondents are said <2 minit taken of billing And29% respondents are said 2-5 minits taken for the billing ,37% respondents are said 6-10 minits taken for billing and 21% respondents are said >10 minits taken for the billing.

Q12 How frequently do you visit Reliance Fresh?

Visit Reliance Fresh Valid Frequency Percent Valid Once week Twice in a week Once month Total in a in a 18 47 35 100 18.0 47.0 35.0 100.0 Percent 18.0 47.0 35.0 100.0 Cumulative Percent 18.0 65.0 100.0

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In above chart 18% respondents are visit once in a week in Reliance Fresh ,47% respondents are visit twice in a week in reliance fresh , 35% respondents are visit once in month.

Q13. Do u feel easy to find out the product?

Easytofindout Frequency Percent Valid Percent Cumulative Percent yes Valid no Total 43 57 100 43.0 57.0 100.0 43.0 57.0 100.0 43.0 100.0

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in above chart 43% of respondents are easy find the product and 57% of respondents are not find the product.

Q14. Are you satisfied with the variety of products at Reliance fresh?

varietyofproducts Frequency Percent Valid Percent Cumulative Percent yes Valid no Total 47 53 100 47.0 53.0 100.0 47.0 53.0 100.0 47.0 100.0

57

in above chart 47% respondents are satisfied with product and 53% respondents not satisfied with product.

Q15. Is store provides sufficient quantity of promotional product?

quantityofpromoitionalproduct Frequency Percent Valid Percent Cumulative Percent yes Valid no Total 44 56 100 44.0 56.0 100.0 44.0 56.0 100.0 44.0 100.0

58

In above chart 44% respondents are said store provide sufficient quantity and 56% respondents are said store not provide sufficient quantity.

Q16. How do you fell about the customer service of Reliance Fresh?

Customerserviceofreliancefresh Frequency Percent Valid Percent Cumulative Percent good Valid verygood excellent Total 20 46 34 100 20.0 46.0 34.0 100.0 20.0 46.0 34.0 100.0 20.0 66.0 100.0

59

In above chart 20% respondents are said good service provide reliance fresh ,46% respondents said very good service provide and 34% respondents are said excellent service provide.

17.age

gender Frequency Percent Valid Percent Cumulative Percent male Valid female Total 50 50 100 50.0 50.0 100.0 50.0 50.0 100.0 50.0 100.0

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In above chart 50% respondents are male and 50% respondents are female.

18.Age

age Frequency Percent Valid Percent Cumulative Percent 16-25 26-35 Valid 36-45 46-55 Total 8 47 44 1 100 8.0 47.0 44.0 1.0 100.0 8.0 47.0 44.0 1.0 100.0 8.0 55.0 99.0 100.0

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In above chart 8% respondens are comes under 16-25 ,47% respondents are comes under 26-35,44% respondents are comes under 36-45 and 1% respondent come under 46-55.

19.occupation

occupation Frequency Percent Valid Percent Cumulative Percent student Valid business job Total 8 48 44 100 8.0 48.0 44.0 100.0 8.0 48.0 44.0 100.0 8.0 56.0 100.0

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In above chart 8% respondents arestudents.48% respondents are doing business and 44% respondents doing job.

20.income

annualincome Frequency Percent Valid Percent Cumulative Percent <2lacs Valid 2lacsto5lacs 6lacs10lacs Total 6 47 47 100 6.0 47.0 47.0 100.0 6.0 47.0 47.0 100.0 6.0 53.0 100.0

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In above chart 6%respondents are comes under below 2 laces ,47%respondents comes under 2 laces to 5 laces ,47% respondents are comes under 6laces to 10 laces.

2.4 CONCLUSIONS Conclusions 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. 64

2.5 SUGGESTIONS

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. Effective utilization of space should be done. Sample of wheat and other staple items can be kept for better exposure.

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 Announcement for the Membership card should be there.

2.6 BIBLIOGRAPHY

1) Kotler Philip, Marketing Management, New Delhi, Pearson Education Inc, 2006. 2) Kothari,C.R,Research Methodology methods and techniques, New Delhi, New Age International (p) Ltd,1990.

3) List of SKUs

66

3) 4) Websites: www.ril.com www.businessworldindia.com www.ORG-GFK.com www.india-reports.com www.wikipedia.org www.economictimes.indiatimes.com

2.7 QUESTIONNAIRE
SECTION - I

Q1. Is Reliance fresh your first preference in comparison with other retail competitors such as Big Bazaar, V Mart?

67

Yes

No

Q2. Do advertisement and promotion activities influence your shopping decision?

Yes

No

Q3. From where do you come to know promotion activity of Reliance Fresh?

SMS

Pamphlets

News Paper

Q4. Which promotional strategy offered by reliance fresh you prefer the most?

Discount on MRP Buy one get one free Budhwar ki mandi

Highly Preferred 7 6 5 7 6 5 7 6 5

4 4 4

Least Proffered 3 2 1 3 2 1 3 2 1

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Q5. How you find in store promotion communication?

Very Poor

Poor

Good

Very Good

Q6. Are you aware about Point Card System of Reliance Fresh?

Yes

No

Q7. If yes than how did you find the system?

Good

Fair

Poor

Needs improvement

Q8. How does u compare Reliance fresh with big Bazaar

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Price factor Availability of products Customer service

Q9. What segment of product do you prefer buying from Reliance fresh Stores?

Segment of product Food and bakery Fruits and Vegetables Dairy Products Toiletries and cosmetics Health Care Processed food Beverages Herbs & Spices Confectionaries

Highly Preferred 7 7 7 7 7 7 7 7 7 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5 5 5 4 4 4 4 4 4 4 4 4

Least Preferred 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1

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10. As compared to other shops, what do you think of the pricing of the products of Reliance fresh? Low High. Almost Same. Very high.

Q11. In your experience, how long is the time taken for the billing? <2 mints. 6 10 mints. 2 5 mints. >10 mints.

Q12. How frequently do you visit Reliance Fresh? Once in a week

Twice in a week

Once in a month

Q13. Do u feel easy to find out the product? Yes No

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Q14. Are you satisfied with the variety of products at Reliance fresh? Yes No Q15. Is store provides sufficient quantity of promotional product? Yes No Q16. How do you fell about the customer service of Reliance Fresh? Good Very good

Excellent

SECTION - II
1. What is your gender? 2. What age group do you belong to? 16-25 46-55 26-35 Over 55 36-45 Male Female

3. What is your occupation?

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Student Job 4. What is your total yearly annual income? < 2 laces 6 laces to 10 laces

Business Others

2 laces to 5 laces > 10 laces

73