Retail Marketing Retail Marketing MixMix of of

Reliance Reliance FreshFresh

Company OverviewCompany Overview Reliance fresh is the Convenience store format.Reliance fresh is the Convenience store format.

Part of Reliance Industries of India is headed by Part of Reliance Industries of India is headed by

Mukesh Ambani.Mukesh Ambani.

RIL’s dream of retail revolution got kicked-started RIL’s dream of retail revolution got kicked-started

when its Reliance fresh supermarket opened its door when its Reliance fresh supermarket opened its door

to the world.to the world.

Following the first, company opened 10 more stores at Following the first, company opened 10 more stores at

a first step towards creating a mega retail chain a first step towards creating a mega retail chain

across the country.across the country.

The Reliance fresh supermarket chain is RIL’s Rs. The Reliance fresh supermarket chain is RIL’s Rs.

25,000 crores venture.25,000 crores venture.

Contd….Contd…. It sells fruits, vegetables, staples, groceries, and dairy It sells fruits, vegetables, staples, groceries, and dairy

products.products.

It has almost more than 500 fresh across the country.It has almost more than 500 fresh across the country.

Reliance Industries launched its first retail format Reliance Industries launched its first retail format

called Reliance Fresh in Hyderabad.called Reliance Fresh in Hyderabad.

Retail chain closely follows the moves of global Retail chain closely follows the moves of global

players like Wal-Mart Store Inc and Metro AG seeking players like Wal-Mart Store Inc and Metro AG seeking

to open shop here in the country.to open shop here in the country.

The product offerings of the move super markets The product offerings of the move super markets includes a wide range across fresh fruits and includes a wide range across fresh fruits and vegetable, groceries, personal care, home care, vegetable, groceries, personal care, home care, general merchandise and a basic range of general merchandise and a basic range of apparels.apparels.

Product verities:Product verities: - - like, vegetables, dairy product, like, vegetables, dairy product, frozen items, groceries, cosmetics, detergents, frozen items, groceries, cosmetics, detergents, fruits & daily use items.fruits & daily use items.

Quantity: -Quantity: - in the reliance fresh vegetable direct in the reliance fresh vegetable direct purchase to the farmer & whole seller.purchase to the farmer & whole seller.

Design: -Design: - The product display’s is well organized The product display’s is well organized & facilitates ease of choice. Bright & clean store, & facilitates ease of choice. Bright & clean store, at convenient locations with layouts allow ease of at convenient locations with layouts allow ease of navigation.navigation.

Features: -Features: - Performance value & ranking get best Performance value & ranking get best information to help you shop.information to help you shop.

PRODUCT

Cont…Cont… Brand name: -Brand name: - Different brand of the product. Different brand of the product. E.g.: Product is detergents, Brand name is, surf excel, wheel, Tied, E.g.: Product is detergents, Brand name is, surf excel, wheel, Tied,

Ariel.Ariel.

Packaging: -Packaging: - It is a very similar to the branded counter part. It is a very similar to the branded counter part.

Service: -Service: - Good customer service is very important in order to retain a Good customer service is very important in order to retain a customer.customer.

Sizes: -Sizes: - Excepting some big brands of fmcg products they don’t Excepting some big brands of fmcg products they don’t

misuse their space. Because, PRIVATE LABLE offers better profit misuse their space. Because, PRIVATE LABLE offers better profit margin to the retailer than branded product of FMCG companies.margin to the retailer than branded product of FMCG companies.

Warranties: -Warranties: - Product or Accessories that repaired or replaced. Product or Accessories that repaired or replaced.

Return: -Return: - Product returns policy is their promise of satisfaction. Product returns policy is their promise of satisfaction.

Customer are not satisfied with a purchase you may returns the Customer are not satisfied with a purchase you may returns the product for a replacement or a refund with in 30day’s.product for a replacement or a refund with in 30day’s.

PRICING:PRICING:PRICING:PRICING: Discount pricing strategy.Discount pricing strategy. Wide price of each item.Wide price of each item. Credits card acceptance.Credits card acceptance. Accepts coupons.Accepts coupons. Competitive price.Competitive price. Price marked in. Price marked in. Comparable cost.Comparable cost.

Value pricing EDLP more than 2000 product

below pricing.Product bundle pricing.Promotional pricing. (Buy one get one free).Special events pricing. (Diwali, Dhanteresh).Measure taken to reduce of supply chain

thereby. Purchase directly from farmers which is in

turn sent to distribution centre. Two times supply of vegetable and fruits daily

to ensure fresh. Give to higher margin most of staples are

under its own

What else…What else…

Membership card to benefit the consumer if Membership card to benefit the consumer if consumer make a member purchase to consumer make a member purchase to goods got to pointgoods got to point

Private level brand name.

Credit card acceptance.

Accept coupons.

Competitive price.

Price marked in paisas.

LOCATIONLOCATIONThe first store was launched in Hyderabad; The first store was launched in Hyderabad; apart from this it has also various stores in apart from this it has also various stores in different places like different places like Chennai, New Delhi, Chennai, New Delhi, Hyderabad, Jaipur, Mumbai, Chandigarh, Hyderabad, Jaipur, Mumbai, Chandigarh, Ludhiana, Orissa, UP and West Bengal.Ludhiana, Orissa, UP and West Bengal.

RRL is well positioned to rapidly expand its RRL is well positioned to rapidly expand its existing network of 590 stores which operate in existing network of 590 stores which operate in 57 cities.57 cities.

The place where it located is traffic and hassle The place where it located is traffic and hassle

free.free.As the Reliance Fresh store is situated beside As the Reliance Fresh store is situated beside the main road so it’s an advantage to the store to the main road so it’s an advantage to the store to increase footfall.increase footfall.Generally located in small commercial Generally located in small commercial complexes close to 3-4 big residential areas. complexes close to 3-4 big residential areas. Observation: found close to ‘Crossroads’.Observation: found close to ‘Crossroads’.Enjoy a clear view from the road.Enjoy a clear view from the road.

COVERAGECOVERAGE

The Reliance Fresh group target to

establish their store in a area where the

catchments area is very large.

They target all age group in their coverage.

They target customer of all type of social

status.

TRANSPORTTRANSPORT

As the store is located just beside a high way

so it become easy for them to transport their

merchandise.

Advantage of the location of the store is that,

a customer can easily avail public transport to

reach their home.

Raw material is procured from the vendors,

transformed in to finished goods in a single

step, and then transported to distribution

centres, and ultimately to the consumers.

Cont…Cont…

Transportation from farm to wholesalers:Transportation from farm to wholesalers:

Rikshow van – mango, banana, guava, Rikshow van – mango, banana, guava,

jackfruit.jackfruit.

Trucks – banana, mango.Trucks – banana, mango.

No control on temperature/ humidity.No control on temperature/ humidity.

Packaging bags/ boxes of different weight, Packaging bags/ boxes of different weight,

size, commodity in the same carrier.size, commodity in the same carrier.

PromotionPromotion Promotion is a single term used to group Promotion is a single term used to group

together all activities intended to increase the together all activities intended to increase the sales of a product.sales of a product.

Advertising:Advertising: Advertisement in Tata yellow pages, MTNL Advertisement in Tata yellow pages, MTNL

telephone directory and through just dial.telephone directory and through just dial. Billboard outside the store.Billboard outside the store. Providing carry bags including brand names & Providing carry bags including brand names &

logo.logo. Print or broadcast ads with the help of National Print or broadcast ads with the help of National

and Local Newspaper.and Local Newspaper.

Sales Promotion:Sales Promotion:

The main idea behind every effort is to make a The main idea behind every effort is to make a bulk purchase.bulk purchase.

Saturday and Sunday are considered as discount and scheme day.

Two types of offer: 1. BOGO 2. BXGY

Rebates and Premiums focusing on bill value.Auto material inside the store including the latest promotions & offers.Point of Purchase displays are used at reliance fresh to communicate the benefits of a product.Festive season special offers.Live announcement & Spot discount.

Cont….

Reliance Fresh Membership Cards.

Social events & store tour.

Providing gifts- free goods.

What Reliance Fresh is doing?

To increase sales volume:

Concentrate on Visual Merchandising.

New concept of promotional strategy.

One to One Marketing.

Direct & long term relationship with farmers and manufacturers.

Providing concessional long term loans to farmers.

PHYSICAL EVIDENCE:PHYSICAL EVIDENCE:The pure foods convenience store model of Reliance Fresh requires far less space than a full fledged supermarket.

Most of these outlets need around only 2000-5000sq.ft.

Simple, colourful but cramped.

Separate entry and exit point.

Chocolates and other kids items are nearby cash counter.

Vegetables and fruit items were in display near entry gate.

Staff uniform: red green and blue.

Amiable staff but poorly informed.

peoplepeople

People are broadly divided People are broadly divided into two heads:into two heads:

Employees and customersEmployees and customers

EMPLOYEEEMPLOYEE There are 15 employee working in which 12 are There are 15 employee working in which 12 are

looking in sales and maintenance and other 3 are looking in sales and maintenance and other 3 are working as cashier.working as cashier.

The employee were working in shifts.The employee were working in shifts. The working environment was healthy.The working environment was healthy. The company cares about the employeesThe company cares about the employees The vm was also looked by the employeesThe vm was also looked by the employees The employee were not so qualified.The employee were not so qualified. The cashier was qualified.The cashier was qualified. The dress of the employee was not standardized.The dress of the employee was not standardized. The employees were also not well informed about The employees were also not well informed about

the products of the store.the products of the store.

CUSTOMERSCUSTOMERS

The customers were mainly from middle The customers were mainly from middle

class.class.

They are basically price sensitive.They are basically price sensitive.

They want good products at affordable They want good products at affordable

prices.prices.

PROCESSPROCESS The methods and process of providing a service

RRL is gearing up to revolutionize the retailing industry in India.

Provides a world class shopping environment

Provides returns to Indian farmers and manufacturers.

Reliance is aiming to touch almost every Indian customer and supplier

How do people consume services? How do people consume services?

What processes do they have to go through to What processes do they have to go through to

acquire the services?acquire the services?

Where do they find the availability of the Where do they find the availability of the

services?services?

1.1. ContactsContacts

2.2. RemindersReminders

3.3. RegistrationRegistration

4.4. SubscriptionSubscription

5.5. Form fillingsForm fillings

6.6. Degree of technologyDegree of technology

Cont…Cont… Home Delivery:Home Delivery: Customer appreciate that Reliance people Customer appreciate that Reliance people

are always ready to deliver the 0rder at home within the are always ready to deliver the 0rder at home within the

vicinity of 2 KMs and the minimum amount is Rs. 500/-. vicinity of 2 KMs and the minimum amount is Rs. 500/-.

• Trolleys, and baskets & Staff: They provide trolleys,

baskets to their customer and Staff are always eager to

serve the customer from the moment they enter in the

store.

• Reliance Card: Reliance Card: On top of everything Reliance staff On top of everything Reliance staff

members keep asking every customer at the time of billing if members keep asking every customer at the time of billing if

they have taken RELIANCE CARD or not. Which helps to they have taken RELIANCE CARD or not. Which helps to

increase loyal customer.increase loyal customer.

Billing: The billing process is painful, as it Billing: The billing process is painful, as it

takes as much time as one spend on total takes as much time as one spend on total

purchasing. They have to look into it if this purchasing. They have to look into it if this

billing process can be fastened up. Most of billing process can be fastened up. Most of

the times, all billing counters (3 or 4) do not the times, all billing counters (3 or 4) do not

have an attendant most of the time this is a have an attendant most of the time this is a

negative point of Reliance Fresh .negative point of Reliance Fresh .

Parking: This is an issue on some of the Parking: This is an issue on some of the

stores duestores due

to lack of space but no charges, and is purely to lack of space but no charges, and is purely

on the risk of the vehicle owner.on the risk of the vehicle owner.

THANK YOU

AMIT PRADHAN 09RM025

ASISH SINGH 09RM026

NIMISHA KABI 09RM027

SUBHASISH HALDER 09RM028

SENHA BHADANI 09RM029

PRIYANKA PATI 09RM030