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RELIANCE FRESH
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Trade or retailing is the single largest component of the services sector in terms of
contribution to GDP. Its massive share of 14% is double the figure of the next
largest broad economic activity in the sector. The retail industry is divided into
organised and unorganised sectors. Organised retailing refers to trading activities
undertaken by licensed retailers, that is, those who are registered for sales tax,
income tax, etc. These include the corporate-backed hypermarkets and retail
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chains, and also the privately owned large retail businesses. Unorganised retailing,
on the other hand, refers to the traditional formats of low-cost retailing, for
example, the local kirana shops, owner manned general stores, paan / beedi shops,
convenience stores, hand cart and pavement vendors, etc.
Unorganized retailing is by far the prevalent form of trade in India –constituting
98% of total trade, while organised trade accounts only for the remaining 2%.
Efficiency enhancements and increase in the food retail sales activity would have a
cascading effect on employment and economic activity in the rural areas for the
marginalized workers. Thus, the corporate owned sector is expanding at a furious
rate.
2. Manpower Planning: The next most important thing that a customer looks
after entering the store is how Customer Care Associates (CCA) attend to
them, how well a CCA and other staff members at the front end are dressed,
educated and competent enough to respond to their queries.
b. In charge: For every task in the store a staff member is made incharge
of that task so that no confusion is there on the floor and in the store as a
whole.
Various tasks like opening of store, indenting of F & V and milk, GRN,
stock correction etc. is assigned among supervisors shift wise.
CCAs are assigned bays and responsibility given to them regarding their
bay regarding maintenance of Planogram, FIFO, FEFO, proper stacking
etc. By doing the above the store can manage display efficiently and
ensure the service of the store to an optimal level.
MSRs are assigned to regularly make announcements of schemes offered
by the store as it is very crucial as communication helps consumer make
decision and push sales
.
STORE EXTERIORS AND INTERIORS
The explanation and diagram of store exteriors and interiors is given in
the adjacent pages.
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ATMOSPHERICS
SWOT ANALYSIS
The SWOT ANALYSIS on Reliance largely depends on the growth of the
Retail Sector and the SCM ( supply chain management). However it is
really ironical on the part of SCM that it is really in a very bad shape. Our
SWOT analysis hinges on the part of SCM and its effective utilization. The
figure in the adjoining represents the diagram of the inefficient SCM.
Reliance is the first into enter into this unorganized sector of vegetables and fruits.
According to them its intentions to have100% farm fresh foods in their new retail
stores. It is also adding shortly a juice bar, and even a large counter for puja
flowers. In fact, over 60 per cent of the floor space has been dedicated to fresh
fruits and vegetables, the rest to other food products like staples, spices, bakery,
etc. But reliance has decided not to add any bar soap or toothpaste and detergent in
its shelves. So by using this strategy they are positioning themselves different from
other players of the industries like Food world, Big Bazaar and Nilgiris. But over
come the short comings of these specialized stores they are also introducing new
Reliance full-fledged supermarket called Shakhari Bhandar which offers each and
everything from the staple to soap. Most of the staples are under its own private
label brand — ‘Reliance Select’. There is a 500g channa dal pack priced at Rs 28,
a 500g urad dal pack for Rs 39, all under Reliance’s own brand. Excepting a few
packets of Nestle’s Maggi, or MTR’s masalas or Pepsi’s Lays chips, there is very
little shelf space given to the big brand owners in the country. Reason: private
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labels offer far better profit margin to the retailer than branded products of FMCG
companies. Most of these outlets will need only 2,000-5,000 sq. ft. A supermarket
may need as much as 8,000-10,000sq.ft.
Weakness:
This is definitely an interesting business venture but it may miss out on the
opportunity to capture a greater share of the customer’s wallet. For customers, too,
this could be irksome, as they would have to visit another store to pick up
essentials. Reliance could easily fix this problem by adding a few small counters
for some basic non-food products. According to their official this format is not
final one they are accepting the new changes which are required to attracr large
number of customers.
Opportunities
Reliance wants to build a high-profitability business and food is, perhaps, the best
venture to start. That is because the Indian food supply chain is grossly inefficient.
There are several intermediaries, each of whom adds his own profit margin to the
cost. Besides, there is huge wastage in transit. This offers potential for savings and
profits. To reduce the cost and increase the profit it has been sourcing out its
requirements from the farmers. For example, the leafy vegetables, brinjals,
tomatoes and green chilies in the Banjara Hills outlet were sourced directly from
farmers in Vantimamdi, Chevella and nearby mandals in Ranga Reddy district of
Andhra Pradesh. The supply chain already has been backed by few hundred
farmers the number is estimated to touch million in next five years. The main aim
of the reliance is to eliminate the intermediaries in the sector and reduce the cost.
Smaller stores have two advantages. They bring down the cost of real estate (and
increase profits). It is easier to find space for small convenience stores in a quiet
neighborhood than for supermarkets in high streets.
Threats:
Competition:
In the next few years reliance will be facing strict competition from companies
like Spencer, More and Dorabjee. It’s high Reliance Fresh should understand the
dominant nature of these industries and formulate its policies and strategies
accordingly.
TATA Group: Has set up Star Bazaar and Westside all over
country .
1. Reliance Fresh has a tremendous potential where it can improve its revenue
drastically by concentrating on its existing customer base.
3. Reliance Fresh should improve its operations in its Fruits and Vegetable
section as it has been seen that people coming just to buy F&V go ahead and
buy other products in the store. F&V is the major footfall driver in the
Reliance Fresh Store.
Hence high Standards of Freshness and Quality in the F & V section has to
be maintained by the Reliance Fresh Store to keep driving customers.
5. During the course of study it was found that Queuing problem exists at the
billing counters which need immediate attention. This problem can be sorted