Reliance fresh value chain analysisPresentation Transcript
Your friendly neighborhood store in an area
of 2000 – 4000 sq feet.
Fresh fruits, vegetables, staples, dairy and
First foray into retail by RIL.
More than 560 stores in 80 cities across 14
5 million customers following the Loyalty
Program `Reliance One`
Secondary Activity Description
Procurement This concerns how resources are acquired for a business (e.g. sourcing
and negotiating with materials suppliers)
Those activities concerned with recruiting, developing, motivating and
rewarding the workforce of a business
Activities concerned with managing information processing and the
development and protection of "knowledge" in a business
Infrastructure Concerned with a wide range of support systems and functions such as
finance, planning, quality control and general senior management
Daily Activities at the Store
Store opens by 5:30 AM with the help of an armed guard and the
Daily indent of fruits, vegetables and milk products reach by
Merchandise are received by the customer associates and the
store is made ready for customers by 6:30am
Store manager updates the opening stock
He Revises the rate list sent by the head office
He updates the discounts and the promotions on various product
Perishable merchandise are put on discount of 20% after 4 pm
The merchandise is checked properly from time to time by the supervisor
The house keeping people clean the outlet at least 7 times a day’s span
Refrigeration and temperature are checked regularly by the store manager
In the latter half of the day, indent of the next day merchandise is prepared
by the store manager with the help of the supervisor
At the end of the day the closing stock is checked and further details of
replenishment are forwarded to the head office by the supervisor
The cash manager checks the balance and compares it with the sale
The store winds up for customers around 10 pm
The accounting procedures are completed and the operators shut down the
outlet at 11 pm
Marketing strategies of reliance
Point of sale displays.
Catalogs and brochures.
Premium and Gifts.
Refund / Rebates.
DIRECT MARKETING : -
Use of mail, telephone, fax , e-mail or internet to communicate
directly with or solicit response or dialogue from specific
customers and prospects . this platform is used to inform the
‘reliance one’ members ( a loyalty programme ) through
e-mails , telephones and SMS . through this the information
regarding the latest offers , events are being communicated to
The advertising part of reliance fresh is done
with the help of : -
print & broadcast adds
symbols & logos
A variety of short term Incentives to
encourage trial or purchase of a product or
The sales promotion at reliance fresh
a) Premium & gifts
d) Offers like “BOGO” , “BXGY” etc.
Reliance Industries has invested nearly Rs. 3,000 crore to
expand the Reliance Fresh stores.
The stores work on The Ranger Format which means
selling of fresh vegetables to the road sellers.
Reliance plans to invest in excess of Rs 25000 crore in
the next 4 years in their retail division.
The company already has in excess of 650 reliance fresh
outlets across the country.
A typical Reliance Fresh store is approximately 3000-
4000 square feet and caters to a catchment area of 2–3
Procurement of vegetables, fruits, dairy
products, bakery items directly from the
suppliers based on the pre-negotiated contracts.
By procuring directly they weed out the
middleman commissions, costs of loading and
unloading, transportation costs and wastage due
to exchange of hands
Perishable products are procured from nearby
areas of distribution centers.
Non-perishable products such as FMCG products
which have longer shelf life are procured
centrally by their merchandising department.
Current supply chain of Reliance Fresh
Always buy from local
farmers never from the
Established the rural
business hubs in many parts
of the country.
The objective is to make the
entire value chain more
effective and responsive .
Fully customized & equipped with highly secured software.
Four major software used in reliance fresh : -
c) R CONNECT PORTAL
d) EUROPLEX SECURITIES
PE Extruded nets are used to pack
vegetables individually wrapped for
enhanced shelf life.
Thermoformed PP Trays to hold 4-6 large
fruits with Stretch Cling Wrapped films for
good visibility and shelf life.
Laminates are used to pack fresh / cut
vegetables and fruits, offer a clear view and
extended shelf life.
Preserves food by removing moisture
TOP LEVEL MANAGEMENT :
(a) STRATEGY MAKERS
(b) CLUSTER MANAGERS
MID LEVEL MANAGEMENT :
(a) AREA MANAGERS
(b) STORE MANAGERS
LOW LEVEL MANAGEMENT :
- ASST. STORE MANAGER
Strict Appraisal Policies.
Less Working Hours As Compared To Its
Timely Notice Prior To Termination.
Recruitment From Friends & Referrals.