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Retail Management -Reliancefresh

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  • 1. Sinhagad Institue Of BusinessManagement RETAIL MANAGEMENT Case Study – RELIANCE
  • 2. Vision GROWTH THROUGH VALUE CREATION
  • 3. Company Profile : Industry: Retail Type: Convenience Store 100% Subsidiary Of Relaince Industries Ltd Chairman & Managing Director: Mukesh Ambani Founded: 30th October 2006 Headquarter: Mumbai 453 Stores pan India Average Area: 1100-7500 sqft
  • 4. Business ModelStore Size – Small & Medium StoreMerchndise – Food & FMCG ProductsInvestment Per Store – Rs 5 To 6 MillionCatchment Area – 2 To 3 Sq Km RadiusMarket Positioning – Convinence Store
  • 5. Inefficient Agriculture Supply Chain in India 6
  • 6. Reliance Fresh : Supply Chain ModelModel 1: First Reliance Fresh Model 7
  • 7. Reliance Fresh : Supply Chain ModelModel 2: Wholesale Trading Model (WTS) 8
  • 8.  Supply Chain Model
  • 9. Operational StartegyBranded Direct Approach To ManufacturerPrivate LableBackward Integration StrtegyLocal Vendor Developement With Focus On “GOOD QUALITY AT CHEAP PRICE” Example : Buying Bakery Prodcuts From Tihar Jail
  • 10. Retail Mix – Reliance Fresh
  • 11. Product Range:ONLY VEGETERIAN Fresh Vegetables & Fruits Staple Processed Food Beverages Personal & Home Care Dairy Products
  • 12. MERCHANDISE DETAILSProduct width:Fruits, Vegetables, Juices and other FMCG Products.Product length:Fruits and vegetables both Indian and imported are available.FMCG Product length:Personnel & Home care
  • 13. Place: Located in small commercial complexes close to Residential areas Observation: Close to cross roads Metro & Tier I Cities
  • 14. Pricing: Low prized private labels Perishable merchandise are put on discount of 20% after 4 pm every day Discount on bulk buying Revises the rate list sent by the head office.
  • 15. Promotion: Main idea – Make bulk purchase Discount scheme days – Saturday and Sunday Promotions In Local Print Media Reliance fresh membership card – Reliance One
  • 16. SWOT Analysis
  • 17. Strength: Strong Financial s Of Holding Company & Brand Private Label Sale – Reliance Select Contract Farming Network – 1600 channels in villages Backward Integration Strategy
  • 18. Weakness: Poor inventory control Less Innovative Promotional Scheme Lack Of Use Of Advance Of Information Technology Lack Of Facilities To Customers like Parking,Compact Layout etc
  • 19. Opportunities: Increase In Net Margin Untapped Rural Market Potential Sale of Reliance Select products In Open Market Expansion In Metro & Tier Cities
  • 20. Threats: Domestic Competitors like Big Bazar Brand Cautious Customers Opposition From Unorganized Retailers Employee Attrition Rate Change In FDI Norms in Retail Sectors
  • 21.  Eg: Banjara hill outlets-sourced directly- vantimamdi, chevella, and nearby mandals in ranga reddy district. Recruiting People – Underprivileged Community Biometric Cards – Farmers – Loans upto Rs. 15000 Training the farmer Information centre: Increase productivity Market rates of different Corps Technical Help Quality of seeds and fertilizers
  • 22. Future Plans of Reliance Retail Ltd.
  • 23. 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 _ Reliance ConsumerExpansion To 800 cities Pan India Focus on Research & Development In Agriculture Sector Building Of Financial Institution For Agriculture Sector