PROGRAMM MODULE: RETAIL MANAGEMENT
NAME: KUHU PATHAK
INSTRUCTOR: PROF BIBHAS BASUMATARY
STUDENT ID: st20057537
BATCH: CARDIFF AUGUST 2013
PROGRAMM CODE: MBA7003
Date of Issue: 09.04.2014
Date of Submission: 18.04.2014
Brief on Reliance fresh
Farm to Fork
Supply chain model of reliance fresh
SWOT analysis on the Reliance Fresh
Brief on Reliance fresh in Kolkata, West Bengal
Market communication in New digital world
Brand identify at Reliance Fresh
The Marketing Mix
I wish to express my appreciation and thank to all those with whom I have had the
opportunity to work and whose thoughts & insights have helped me in furthering my
knowledge and understanding of the subjects.
Every page of this report reminds me about the moral support and guidance that was
bestowed on me by the respected guide, professor, friends, and family members throughout the
duration of the assignment.
First of all I owe my special thanks to the management of Reliance fresh, for so kindly
providing me data and useful information for the purpose of the study.
My sincere gratitude goes to Store Manager without whose valued guidance,
encouragement and inspiration the assignment could ever have been possible.
I convey my regards to Mr. Bibhas Basumatary, UBS, Karjat, Mumbai for providing
ample opportunity and me to prepare this academic task.
I am also grateful to my parents for their encouragement.
I am unable to mention many other name who have helped me greatly but it gives
immense pleasure to appreciate and thanks all those without whose encouragement and help
this project would never have been completed.
These days’ organizations
are looking forward to obtain competitive edge over their
competitors through highly developed employee skills, excellent
market communication skills, distinctive organizational cultures,
management processes and systems which are in contrast to
traditional emphasis on transferable resources such as equipment
that can be purchased any time by competitors’.
Reliance Fresh is the retail chain division of Reliance Industries of
India which is headed by Mukesh Ambani. In reliance also much
work is done to develop the marketing competencies so as to have
better results. Reliance has entered into this segment by opening
new retail stores at Hyderabad on 3 November 2006. Reliance
plans to invest 25000 crores in the next 4 years in their retail
division and plans to begin retail stores in 784 cities across India.
In my study I have studied the socio-economic importance of the retailer in that particular area,
identified the Retail Type and its Product and or Service Categories, evaluated the key strategic
drivers of the industry in which this Retailer is part of, identified all the modern technology
deployed by the Retailer in its operations, identified the Marketing Mix Strategy applied by the
Retailer to gain competitive advantage. But apart from these I have tried to study the market
communication processes in digital world for Reliance Fresh. For that I had gone to different
reliance fresh retail stores and find out the communication ways they use.
I also did environmental analysis for my study. Types of Communication techniques used here.
Big retailers like Reliance have huge resources and network which directly impacted many of
the retailers some of whom are planning to quit. In our sample size of 75 retailers more than
30 agreed to have lost as much as 50% of their sales. This case also discusses pros and cons of
contract farming which on one part assures farmers of price for their crop and knowledge about
fertilizers and seed but on other side has some obvious drawbacks like monopoly of big
retailers. As a big market in which organized sector is poised to grow with 25% - 30% annually
our government must come with appropriate regulations to save small retailers and our
We care about
Health, safety &
With a vision to generate inclusive growth and prosperity for farmers, vendor partners,
small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL,
was set up to lead Reliance Group’s foray into organized retail.
The sale of goods or commodities in small quantities directly to consumers is known as
retailing. A "retailer" buys goods or products in large quantities from manufacturers
or importers either directly or through a whole selle and then sells smaller quantities to
the end user.
Retail is India’s largest industry, accounting for over 10 percent of the country’s GDP
and around eight percent of employment. Retail in India is at the crossroads. It has
emerged as one of the most dynamic and fast paced industries with several players
entering the market. That said, the heavy initial investments required make break even
hard to achieve and many players have not tasted success to date. However, the future is
promising; the market is growing, government policies are becoming more favourable
and emerging technologies are facilitating operations.
The Indian retail industry in valued at about $300 billion and is expected to grow to
$427 billion in 2010 and $637 billion in 2015. Only three percent of Indian retail is
organised. Retailers of multiple brands can operate through a franchise or a cash-and-
carry wholesale model.
Retailing in India is gradually inching its way to becoming the next boom industry. The
whole concept of shopping has altered in terms of format and consumer buying
behavior, ushering in a revolution in shopping. Modern retail has entered India as seen
in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping,
entertainment and food all under one roof.
The Indian retailing sector is at an inflexion point where the growth of organised retail
and growth in the consumption by Indians is going to adopt a higher growth trajectory.
The Indian population is witnessing a significant change in its demographics. A large
young working population with median age of 24 years, nuclear families in urban areas,
along with increasing working-women population and emerging opportunities in the
services sector are going to be the key growth drivers of the organised retail sector.
RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure
in India, which includes a multi-format store strategy of opening neighborhood convenience
stores, hypermarkets, specialty and wholesale stores across India.
Reliance Fresh is the convenience store format
which forms part of the retail business of
Reliance Industries of India which is headed
by Mukesh Ambani. Reliance plans to invest
in excess of Rs 25000 crores in the next 4 years
in their retail division. The company already
has in excess of 560 reliance fresh outlets
across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice
bars and dairy products.
A typical Reliance Fresh store is approximately 3000-4000 square feet and caters to a
catchment area of 1-2 km.
Post Lunch, in a dramatic shift in its positioning and mainly due to the circumstances prevailing
in UP, West Bengal and Orissa, it was mentioned recently in news Dailies that, Reliance Retail
is moving out of stocking fruits and vegetables. Reliance Retail has decided to minimize its
exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super
market focusing on categories like food, FMCG, home, consumer durables, IT and wellness,
with food accounting for the bulk of the business.
The company may not stock fruit and vegetables in some states. Though Reliance Fresh is not
exiting the fruit and vegetable business altogether, it has decided not to compete with local
vendors partly due to political reasons, and partly due to its inability to create a robust supply
chain. This is quite different from what the firm had originally planned.
When the first Reliance Fresh store opened in Hyderabad last October, not only did the
company said the store’s main focus would be fresh produce like fruits and vegetables at a
much lower price, but also spoke at length about its “farm-to-fork’’ theory. The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way.
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 &
Reliance Fresh Supermarkets
Type : Supermarket
Founded : 3- October 2006
Headquarters : Mumbai, India
Key people : Mukesh Ambani, CEO
grocery organized retail sales.
Super 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.
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 non-vegetarian
Currently, selling through company-owned stores currently totals just $8 billion in India.
Industry estimates say that the country's 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.
FARM TO FORK
The Reliance retail company sources say it is setting aside Rs 50,000 crore to build its farm-
to-fork linkage. Reliance has drawn up plans for a presence in 784 towns and 6,000 mandi
(wholesale market) towns with 1,600 rural business hubs to service these. It has already rolled
out 177 Reliance Fresh stores across major towns in 11 states. According to a company report,
RIL is targeting a turnover of Rs 40,000 crore in the next few years.
After Future Group, Reliance Retail plans to introduce private label sale to kirana stores
Reliance Retail is understood to be exploring ways to supply its private labels in food and
groceries to kirana stores and small retailers in the country. A separate entity, most likely to be
named Reliance Foods, will carry out the private label business. Reliance Fresh head
Gunender Kapur was made head of private labels business in the company.
Its formats such as apparel chain Reliance Trends, beauty and wellness format Reliance
Wellness, consumer durable chain Reliance Digital have private labels or are in the process of
launching private labels.
The whole idea of private labels is based on pricing and retailers get enough volumes on their
shelf at marginal costing. Retailers have an opportunity to sell their private labels to kirana
stores. Supplying to kiranawalas is a tedious job as you need to have different points of sale,
enough manpower and transport and delivery systems. But selling products through cash and
carry stores is a viable
Reliance Europe limited
Reliance industrial infrastructure limited
SUPPLY CHAIN MODEL OF RELIANCE FRESH
Reliance started its retail operations of reliance fresh stores with following supply chain model.
Procuring directly from the farmers and operating with moderate margin but mass selling was
key to reliance fresh operations for first few months.
The following figure depicts the reliance fresh model
MODEL 1 :-
MODEL 2 :-
Model 2: Whole Sale Trading (WST) Reliance formalized its second supply chain model to
shift itself from grocery retailer to grocery supplier by focusing and establishing itself in
Steps in WST model:
1. Reliance has owned farms on contract basis for production of specific crop which is decided
after extensive research depending on
•RETURN OVER COSTS INCURRED.
2. Different vegetables and fruits from such farms are collected through reliance own logistics
and brought to collection Processing centers where quality check and other required
processing is doneA quality-control expert samples every tenth crate; if the fruits are good
a team will ready them for delivery within hours to Reliance fresh stores around different
places like U.P and as far away as Hyderabad and even Mumbai (formerly Bombay). If
they are not, workers will inspect the entire shipment and discard anything below standard.
3. Merchandise from these collection processing centers are collected and loaded for
Wholesale mandi’s. As this merchandise is to be made available by 4 A.M in morning thus
deliveries in trucks are sent at time depending upon:
TRANSIT TIME. – Time required reaching destination i.e mandi’s.
MARGIN TIME. – Time period between a truck reaching mandi and then Unloads.
Can be 2 to 3 hours.
4. From mandi’s where the trucks have been unloaded, roadside vendors and pull carters buy
fruits and vegetables to supply in households.
5. In case still some vegetables and fruits are not sold reliance logistics own transportation
send them to reliance fresh stores
SWOT ANALYSIS ON THE RELIANCE FRESH
first into enter into this
unorganized sector of
vegetables and fruits.
have100% farm fresh foods in
their new retail stores
over 60 per cent of the floor
space has been dedicated to
fresh fruits and vegetables
the industries like Food world,
introducing new Reliance full-
fledged supermarket called
staples are under its own
private label brand —
A supermarket may need as
much as 8,000-10,000sq.ft.
this could be irksome
it may miss out on the
opportunity to capture a
greater share of the customer’s
fix this problem by adding a
few small counters for some
basic non-food products
to their official this format is
not final one they are accepting
the new changes which are
required to attract the large
number of customers.
Poor inventory control
Staff – Lack of knowledge
RELIANCE FRESH IN KOLKATA
Reliance fresh stores in opened on 25th
October, 2007. Core business of Reliance Fresh is
selling Fruits and Vegetables to the ultimate customer. When it opened, traders and rode side
vendors opposed. Reliance Fresh is hampering local vegetables vendors business. After that
blow Reliance Fresh decided not to sell fruits and vegetables in Orissa. There are 14 reliance
fresh stores in Orissa.
Stores in West Bengal:
Farm to fork, No
middlemen, Farmers –
Hundreds of farmers – 1
million farmers – next five
Giants: Carrefour, Metro
Bharti – Wallmart (Farm
Operating cost are too high
Store location Date of
Total area of
New Town 30/10/2007 2200
Bangur Avenue 07/11/2007 6368
Lake Town 17/11/2007 4935
Jodhpur Park, 24/11/2007 4176
Desapriya Park 23/02/2008 3428
Sreerampur 22/12/2007 4749
Budge Budge 22/12/2007 2999
Kadamtala 08/03/2008 5349
In 2008, without selling fruits and vegetables, Reliance Fresh stores of Orissa are performing
well in nationwide. The average Sq. feet sale of Reliance Fresh in India is Rs. 22 and in Orissa
Sq. Feet sale is Rs. 17 without selling fruits and vegetables. Reliance fresh is targeting the
Upper class and Middle class customers. But according to location of these stores Upper class,
Middle class, and Lower class customers are visiting to the store. But, now in the every store
in Orissa, are selling fruits and vegetables.
Reliance Fresh is the establishment of Reliance Group Of Industries and one of the popular
family shopping malls in Kolkata. Reliance Fresh is known for its product availabilities like
Cooking Utensils, Groceries, Personal Care Products, Jewellery and Apparel, Home Care
Products etc and for Cheap Rate / Price of Products in Kolkata.
Reliance Fresh often comes up with Deals and Discounts like ‘Bachat Badi, Fayda Bada’,
‘Saving Big as you Shop’, ‘Winter Offer’, ‘Puja / Festival Offers’ etc at Reliance Fresh
attracts more customers of Kolkata.
Reliance Fresh Mall Condition at Kolkata is fabulous with Centrally Air Conditioned, Car
Parking Area, Credit/Debit Card Acceptance and many other facilities. Reliance Fresh Store
opens all seven days a week between early mornings 7am till night 10pm.
PRODUCT MIX OF RELIANCE FRESH
Sodepur Barasat 12/03/2008 4921
PRODUCT MIX OF RELIANCE FRESH
PF, BEVERAGE, F&V
Although Reliance Fresh is mainly concerned about stocking fresh
vegitables and fruits but due to some political controversy they mainly
focus on the household products and FMCG products.
The product displayed in shelves in such a height so that they can be
easily availed by the customers and customers can compare the product
specifications and price.
The retail store is the place where customers take a decision on the purchase of the products
offered by the retailer. The store also influences the perception that customers form in their
minds about the store, the products services and staff. Therefore from management’s point of
view, operations of the store are a major element of costs. Therefore store becomes a critical
asset of the retail business and it is imperative that the operations are managed well to achieve
and sustain customer satisfaction and be cost effective.
Managing store operations for a retail business is a challenging task. It requires integration
among various functions within the store. When all the functions are performed in an integrated
manner then only the store can run smoothly achieving full customer satisfaction.
The retail store becomes of prime importance to the retail organisation, for basically two
1. Retail store is the primary source for revenue for the retailer.
2. It is the point where the customer actually interacts with the retail store and its offering.
The primary responsibility within the environment of a retail store lies with the Store Manager.
COMPONENTS OF RETAIL OPERATIONS
Each and every process taking place in the store is defined in the Store Operations Manual. It
states the responsibility and the time period in which these tasks need to be carried out. The
task in the store can be broadly classified into following:
1. Store Administration and Management of the Premises;
2. Managing Inventory and display;
3. Managing Receipts;
4. Customer Service; and
5. Managing Promotion, Events, Alliances and Partnerships.
Figure: Tasks to be performed at the Store Level
As seen in the figure we can easily observe that each and every task is revolving around
Customer Service as it is always at centre stage. Every task is aimed at providing customer an
experience which leads to customer delight which is the only way Reliance Fresh can stay
ahead of its competitors and still run profitably.
After receiving a service the customer evaluates post purchase and three possible outcomes
1. Actual performance matches expectation, leads to satisfaction.
2. Performance exceeds expectation and the consumer is Delighted and here customer is
excited and does repeat purchases and involves himself into mouth to mouth publicity
for the Store. This can do a very damaging impact on the store image and it becomes a
very tough job to get back such a customer.
Store Layout: The store layout should be planned in such a manner
that customer finds enough space for movement. The layout should be in such a systematic
manner that customer can easily locate products he/she wants to purchase. At Reliance Fresh
a very impressive layout has been put in place where customer easily finds what he wants.
Store Admininistration and Management of
Managing Alliance / Partnerships and
Promotions / Events
Store Layout: Reliance Fresh Model
HOME FURNISHING PROCESSED FOOD
MARKET COMMUNICATION IN NEW DIGITAL WORLD
“Few industries are under as much pressure as media…thanks to a growing number
of delivery channels and formats, consumers have virtually unlimited options when it
comes to how and when they consume information. While audiences’ appetite for
information and entertainment is truly staggering, providers are finding they must
spread the wealth in a buyer’s market now glutted with delivery points. It’s not
surprising that enterprises — from entertainment, broadcasting and cable
companies, to publishers and digital media innovators — are seeing once-predictable
revenue structures give way as consumers get used to information available virtually
on demand — whenever, however and from wherever they choose to absorb it.”
Market communication techniques:
Market communication are means by which firms attempt to inform, persuade, and remind
consumers -directly or indirectly- about the products and brands that they sell.
There are various technologies through which companies can interact to consumer and provide
information about a product or services. They are:
Pull vs. Push
Use of mail, telephone, fax, e-mail or internet to communicate directly with or solicit response
or dialogue from specific customers & prospects.
Customized: The message can be prepared to appeal to the addressed individual.
Up-to-date: A message can be prepared very quickly.
The internet is a global system of interconnected computer networks that use the standardized
Internet Protocol Suite (TCP/IP).it is a network of networks that consists of millions of private
and public, academic, business, and government networks of local to global scope.
The internet carries a vast array of information resources and services, most notably, the inter
linked hypertext documents of the World Wide Web(WWW) and the infrastructure to support
electronic mail, in addition to popular services such as online chat, file transfer and file sharing,
online gaming and voice over internet protocol(VoIP) person-to-person communication via
voice and video.
Since the Internet has a central role in the changes that are studied in this thesis, let us take a
look on how fast and how widespread its usage actually is.
This first map shows the differential levels of network connectivity in September 1991:
Map of International Connectivity, 1991. the next map is from June
1997 and the vast proliferation after only six years is very evident.
Map of International Connectivity, 1997.
Even though the last map shows how nearly the entire world is connected, it is still from 1997
and thus quite old. Nowadays the whole world is more or less considered to have Internet access
and it is instead the number of Internet users within each country that is studied. Antonio
Scarponi (2005) has created an animated map of the world showing the growth of Internet users
from 1993 and predicted to 2015, the following map depicts the predicted Internet usage 2015
and uses a cartogram representation where the size of the country is based on the number of
Internet users rather than the geographical area.
Internet Users World Map, 2015.
It is evident that the Internet is extremely widespread, and that its formation was quite rapid,
particularly in comparison with that of television which was discussed earlier. The point here
is that changes and evolvements in technology and society take place with varying paces and
with varying effects. We believe that the changes that are explored in this thesis will have a
dramatic impact on how companies communicate in their markets, how consumers retrieve
information, communicate, buy commodities and receive services in their daily lives. it is much
more important to realize that the changes are actually occurring, and that they are gradually
imposing companies to respond as it was made clear in the introduction of the thesis, and it is
thus even more important to try to grasp the changes and try to realize what they imply – which
is exactly why the authors have dedicated themselves to this thesis.
Streaming Audio and Video:
Traditional techniques for receiving multimedia over the Internet required that you first
download the content, and not until the completion of the download could you watch or listen
to it. Nowadays, however, you can watch or listen to content on the Internet at the same time
as you are receiving it, this is what is called “streaming”. It implies major benefits in regards
to not having to wait and it generally enriches the experience of the Internet, making it more
vibrant and dynamic.
YouTube is a video streaming site owned by GOOGLE, it grows by an addition of 65,000 new
videos every day and over 100 million video clips are watched each day by people allover the
Joost is a new computer based, ad financed television service that differs from YouTube in the
sense that all material is straightly from the content producers which resolves any copyright
issues. On YouTube, on the other hand, many members upload recorded content from other
sources, such as movies or TV shows, which can cause copyright issues with the original
content producer and/or provider.
MySpace.com, which was launched less than two years ago, is the fifth ranked web domain in
terms of page views. It integrates web profiles, blogs, instant messaging, e-mail, music
downloads, photo galleries, classified listings, events, groups, chat rooms, and user forums,
and MySpace.com has thus created a connected community where users put their lives online.
RSS (Rich Site Summary or Real Simple Syndication) is a format for delivering regularly
changing web content. Many news-related sites, weblogs and other online publishers syndicate
their content as an RSS Feed to whoever wants it.
RSS solves a problem for regular users of the web. It allows you to easily stay informed by
retrieving the latest content from the sites you are interested in, you thus save time by not
needing to visit each site individually and you ensure your privacy by not needing to join each
site's email newsletter.
A webcast is a media file distributed over the Internet using streaming media technology. A
webcast may either be distributed live or on demand. Essentially, webcasting is “broadcasting”
over the Internet.
The generally accepted use of the term webcast is the "transmission of linear audio or video
content over the Internet".
A webcast uses streaming media technology to take a single content source and distribute it
to many simultaneous listeners/viewers.
Podcasting is quickly becoming a buzzword today and it simply implies online audio content
that is delivered through an RSS feed. Many people describe podcasting as radio on demand.
However, podcasting gives significantly more options in terms of content than radio does. In
addition, with Podcasting, listeners can determine the time and the place, meaning they decide
what programming they want to receive and when they want to listen to it.
A blog (a contraction of the term "weblog") is a type of website, usually maintained by an
individual with regular entries of commentary, descriptions of events, or other material such as
graphics or video. Entries are commonly displayed in reverse-chronological order. "Blog" can
also be used as a verb, meaning to maintain or add content to a blog.
Peer-to-Peer (P2P) Computing:
Peer-to-peer (P2P) networking is a method of delivering computer network services in which
the participants share a portion of their own resources, such as processing power, disk storage,
network bandwidth, printing facilities. Peer-to-peer network participants are providers and
consumers of network services simultaneously, which contrasts with other service models,
such as traditional client-server computing.
Today, however, we have the same server-client structure across the entire Web and each
separate computer can act as a server as well as being a client, this consequently implies a
significant decentralization of the Internet.
Websites are organized around two types of e-hubs: vertical hubs centered on industries
(plastics, steel, chemicals, and paper) and functional hubs (logistics, media buying, advertising,
energy management). In addition to using these web sites, companies can do e-procurement in
Direct extranet links to major suppliers: companies can setup extranet links to its major
Buying alliances: Several companies buying same goods join together to form
purchasing consortia and gain deeper discounts on volume purchases.
Audio and video streaming generally enriches the experience of the Internet, making it more
vibrant and dynamic, however, streaming technology not only enriches the Internet but it may
also be the strongest force for significantly extending the Internet to cell phones. Mobile
Internet involves a trade-off between reach (portability) and richness (small screens and
keyboards), where the latter is sacrificed for higher reach and mobility. In Japan, use of the
mobile Internet really has gained foothold.
Mobile commerce also known as M-commerce, M-Commerce or U-Commerce, owing to the
ubiquitous nature of its services) is the ability to conduct commerce, using a mobile device e.g.
a mobile phone (cell phone), a PDA, a Smartphone and other emerging mobile equipment such
as dashtop mobile devices. Mobile commerce has been defined as follows:
Mobile commerce is any transaction, involving the transfer of ownership or rights to use goods
and services, which is initiated and/or completed by using mobile access to computer-mediated
networks with the help of an electronic device.
The advertising industry is extremely excited about the idea of reaching high-income earners
anywhere and everywhere for promoting the products and services of its sponsors, and that
wireless internet makes this technically possible.
BRAND IDENTIFY AT RELIANCE FRESH
In this part of brand identity the outer core level is taken in consideration. The major levels are
Picture of Brand Identify
Design: The design of the brand reflects which it wants to communicate to its customers.
In s Reliance fresh being a store its design of reflects that it is a low cost because the fixtures
and the cost of the store looks very low and gives a feel of budget shopping and use of graphics
throughout the store and outside the store attracts the customers and communicate the
deliverables of the store.
Logo/Symbol: The logo of Reliance fresh includes a leaf structure which represents
Brand name: The brand name consists of two parts one is ‘Reliance’ which means the
name of parent company ‘Reliance Industries Limited and secondly the “Fresh” means
‘provides fresh merchandise’.
The Marketing Mix Strategy
House hold items
Food and beverages
– All premiere brand
+ Private label
Groceries – only
Non veg food items
Ready to eat items
With the growing retail concept Reliance Fresh is really a fresh air in
the arena of vegetable and fruit market. But due to some political and
local problems all Reliance stores are not
allowed to keep vegetables and fruits according to their goal.