Reliance fresh value chain analysis

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Reliance fresh value chain analysis

  1. 1.  Your friendly neighborhood store in an area of 2000 – 4000 sq feet.  Fresh fruits, vegetables, staples, dairy and FMCG products.  First foray into retail by RIL.  More than 560 stores in 80 cities across 14 states.  5 million customers following the Loyalty Program `Reliance One`
  2. 2. Secondary Activity Description Procurement This concerns how resources are acquired for a business (e.g. sourcing and negotiating with materials suppliers) Human Resource Management Those activities concerned with recruiting, developing, motivating and rewarding the workforce of a business Technology Development 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
  3. 3. PRIMARY ACTIVITIES
  4. 4. Daily Activities at the Store  Store opens by 5:30 AM with the help of an armed guard and the supervisor  Daily indent of fruits, vegetables and milk products reach by 5:30 AM  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 categories  Perishable merchandise are put on discount of 20% after 4 pm
  5. 5.  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
  6. 6. Marketing strategies of reliance fresh PUSH STRATEGY Point of sale displays. Special Displays. Catalogs and brochures. Events.
  7. 7. Coupons. Samples. Premium and Gifts. Refund / Rebates. POP advertisement.
  8. 8.  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 customers.
  9. 9. The advertising part of reliance fresh is done with the help of : -  print & broadcast adds  packaging outer  catalogue  directories  billboards  symbols & logos  audio materials.
  10. 10.  A variety of short term Incentives to encourage trial or purchase of a product or service.  The sales promotion at reliance fresh includes :- a) Premium & gifts b) Sampling c) Rebates d) Offers like “BOGO” , “BXGY” etc.
  11. 11. Infrastructure Procurement Technology Development Human Resource Development Secondary Activities
  12. 12.  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 km.
  13. 13.  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.
  14. 14. Current supply chain of Reliance Fresh  Always buy from local farmers never from the mandis .  Established the rural business hubs in many parts of the country.  The objective is to make the entire value chain more effective and responsive .
  15. 15.  Fully customized & equipped with highly secured software.  Four major software used in reliance fresh : - a) SAP b) RETALIX c) R CONNECT PORTAL d) EUROPLEX SECURITIES
  16. 16.  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 (Drying)
  17. 17. TOP LEVEL MANAGEMENT : (a) STRATEGY MAKERS (b) CLUSTER MANAGERS MID LEVEL MANAGEMENT : (a) AREA MANAGERS (b) STORE MANAGERS LOW LEVEL MANAGEMENT : - ASST. STORE MANAGER
  18. 18.  Strict Appraisal Policies.  Less Working Hours As Compared To Its Competitors.  Timely Wages.  Timely Notice Prior To Termination.  Recruitment From Friends & Referrals.

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