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IIPM Business School

REPORT ON RETAIL MANAGEMENT

On

Submitted to
Prof. Vijay kumar jayaram
In partial fulfillment of the requirements of the course

Submitted by
Ashok Kumar Samman
Hari
Prakash
Brook’s
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Introduction
• India has often been called a nation of shopkeepers. Presumably the reason for this is;
that, a large number of retail enterprises exist in India. In 2004, there were 12 million
such units of which 98% are small family businesses, utilizing only household labor.
Even among retail enterprises, which employ hired workers, a majority of them use
less than three workers.
• Retailing is the combination of activities involved in selling or renting consumer
goods and services directly to ultimate consumers for their personal or household use.
In addition to selling, retailing includes such diverse activities as, buying, advertising,
data processing and maintaining inventory.
• While sales people regularly call on institutional customers, to initiate and conclude
transactions, most end users or final customers, patronize stores. This makes store
location, product assortment, timings, store fixtures, sales personnel, delivery and
other factors, very critical in drawing customers to the store.
• Final customers make many unplanned purchases. In contrast those who buy for resale
or use in manufacturing are more systematic in their purchasing. Therefore, retailers
need to place impulse items in high traffic locations, organize, store layout , trains
sales people in suggestion , and place related items next to each other, to stimulate
purchase.

• THE IMPORTANCE OF RETAILING

• Organized retailing in India was estimated at Rs.18, 000 crores in 2002-2003 and has
grown at about 40% over the last 3 years (Source KSA Retail Outlook).
• Retailing has a tremendous impact on the economy. It involves high annual sales and
employment. As a major source of employment retailing offers a wide range of career
opportunities including; store management, merchandising and owning a retail
business.
• Consumers benefit from retailing in that, retailers perform marketing functions that
makes it possible for customers to have access to a broad variety of products and
services. Retailing also helps to create place, time and possession utilities. A retailer's
service also helps to enhance a product's image.
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• Retailers participate in the sorting process by collecting an assortment of goods and

services from a wide variety of suppliers and offering them for sale. The width and
depth of assortment depend upon the individual retailer's strategy.
• They provide information to consumers through advertising, displays and signs and
sales personnel. Marketing research support is given to other channels, members.
• They store merchandise, mark prices on it, place items on the selling floor and
otherwise handle products; usually they pay suppliers for items before selling ,,them to
final customers. They complete transactions by using appropriate locations, and
timings, credit policies, and other services e.g. delivery.
• Retailing in a way, is the final stage in marketing channels for consumer products.
Retailers provide the vital link between producers and ultimate consumers.

• RETAIL STRATEGY AND STRUCTURE

• Successful retail operations depend largely on two main dimensions: margin and
turnover. How far a retail enterprise can reach in margin and turnover depends
essentially on the type of business (product lines) and the style and scale of the
operations. In addition the turnover also depends upon the professional competence of
the enterprise.
• In a given business two retail companies may choose two different margin levels, and
yet both may be successful, provided the strategy and style of management are
appropriate.
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RELIANCE COMPANY PROFILE

RELIANCE GROUP

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private
sector enterprise, with businesses in the energy and materials value chain. Group's annual
revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited,
is a Fortune Global 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward
vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum
refining and oil and gas exploration and production - to be fully integrated along the materials
and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and
marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and
retail.

Reliance enjoys global leadership in its businesses, The Group exports products in excess of
USD 15 billion to more than 100 countries in the world. There are more than 25,000
employees on the rolls of Group Companies. Major Group Companies are Reliance Industries
Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail
Limited) and Reliance Industrial Infrastructure Limited.
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RELIANCE FRESH

India’s Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been first off the
blocks by launching its first Reliance Fresh outlets in Hyderabad,

Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India. Reliance plans to invest Rs 25000
crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities
across the country. The reliance fresh supermarket chain is ril’s rs 25,000 crore venture and it
plans to add more stores across different g, and eventually have a pan-India footprint by year
2011. 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 products. Besides, the stores would provide direct employment to 5 lakh young
Indians and indirect job opportunities to a million people, according to the company. The
company also has plans to train students and housewives in customer care and quality
services for part-time jobs.

Reliance Fresh will…

• Forge strong and lasting bonds with millions of farmers and will transform the
Relationship with customers to a new level
• Offer unmatched affordability, quality, convenience, service and choice
• Offer our customers the widest range of fruit and vegetables at the best prices in
the neighborhood
• Provide for the daily needs of our customers by offering staples, grocery and
household products at great prices
• Offer consistent high quality, unbeatable freshness and great service so that our
Customers know that we can be trusted every day.
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RETAILING ACTIVITIES/OPERATIONS WITHIN THE STORES

Getting Products to Shelf

1) Indenting & Purchase Orders (PO’s)

(a)Indenting – DC Delivery:-

Indenting will be happen after checking stock in the store and goods in transit. Or whenever if
required any changes in indenting due to season, weekends or any festivals then the quantity
is modified. For branded goods there is a automatic indenting system which is handled by the
head office (Mumbai). Delivery of fruit & vegetables is after 48hours after being raised.
Indenting for milk and dairy products is delivered after 36 hours.

(b) Raising PO for Bakery

PO (purchase order) for bakery supply is raised in the store and also released to the vendors
by the stores. PO on vendors can be raised only once each day & it will be valid for 24 hours.

2) Receiving:-

(a) Checking of Delivery in DC

All the Dry DC delivery will be checked by a store staff in the DC staging area before
packing and loading. This is to minimize delivery count error and ensure that right quantity is
delivered to the stores. Behind this all the activity owner is Store Manager.

(b) Receiving Goods in Store: From DC & CPC

Receiving indented goods from the DC & CPC as per the delivery schedule. At the time of
receiving goods from DC many things which is followed by the SM, ASM,& CSA:-
 Check the seal in front of driver.
 Note down the air condition temperature.
 Inspect stocks for transit damages.
 If any HU (Handling unit) / article is found damaged, excess, or missing noted it on
the trip sheet for return to DC.
 Do the GRN (Goods return note) for the delivery for the actual received quantity.
 Stores are not unloading transit damaged stocks. Transit damages will be returned to
DC in the same delivery truck.
 The main focus during goods receiving must be to unload the crates/ cartons from the
truck as quickly and safely as possible.
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(c) Receiving from Vendors

Procedure for receiving goods directly from vendors. Behind this whole activity
owner is store manager/ asst. store manager. Reliance fresh stores indenting specially
bakery, beverage and books/magazines and music. SM/ASM Checks:-
 Check the deliveries for quantity, damages and freshness and accept only good
products as per shelf life norms.
 Do not accept any short shelf life or damage quantity from vendor and reduce it from
the invoice if required.
 Remove all expired products from the shelf and get them replaced with fresh product
without any GRN for the same.
 In case of books/magazines and music SM/ASM check bar-codes on the books or
music CDs delivered by the vendor & return the unsold items to the vendors.
 Vendors and store staff check physically check DSD deliveries for damages and
freshness and accept only fresh saleable products.

3) Replenishment of goods

(a) Replenish Shelf from Goods Receiving Area

Process of moving goods from goods receiving area to the respective bays/freezers/chillers as
per the priority fill rule.
 Frozen products received must have first priority for stacking in the Freezers.
 Strictly follow FIFO
 Place previous stock in the front/top of the shelf.
 Chilled product received must have second priority after frozen product for stacking
in the chillers.

4) Managing Price Changes

(a) Changing SELs for those SKU’s where price has been changed. All the changing
of SKU’s is done by headquarter Mumbai.

5) Managing Planogram

Implementation of changes of Planogram

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The Planogram indicates the location for each SKU on a shelf. This process describes how to
change Planogram. Changing of Planogram is wholly managed by headquarter. Headquarter
send new Planogram to store by mail. Changing of fixtures and shelf heights, at
per new Planogram. The major change of shelf is less than 5 bays. Check quality of stock
received as per Planogram, raise an indent of additional stock if required. Stack goods as per
Planogram and readjust SEL to align with the left hand side of the first facing going from the
left. All the changes made on shelf to be signed off by store manager. All the Planogram to be
provided in standard format. Planogram indicate shelf heights. Planogram is send to the store
at least 2 days in advance of the change. No stock to be displayed on the shelf if it not in the
Planogram. If the F& V section looks empty in the late evening because of stock outs, then
store manager may change only the F& V Planogram in a suitable manner to give appearance
of full store.

6) Getting Products from Shelf to customers

(a) Promotion management (setting up the store for new promotions)

 Store check that all new promotional stock has been received from the DC and the
free gift under promotional offer are bundle along with the promotional stock. If the
free gift is too large to be accommodated on the shelf – the gift should be provided to
the customer at the till.
 Put up new promotional signage above the end cap at the marketing defined
locations.
 ASM/SM briefs the staff at the morning and afternoon meeting on the promotion
details.
 Staff need to be briefed on the following :
 Details of the promotion
 Period of the promotion
 Advantages to the customer
 Any special arrangements at the till
 Sales target for the promotion
 Process for dealing with left over promotion stock
 If the customer brings the promotion item back for exchange / refund – the customer
has to bring back the free offer as well. Exception can be made at the customer’s
favour at discretion of store manager.

7) Stock Display Management

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 Filling up the gaps on the shelves for SKU sold during the day is defined as spot fill.
 Fill F&V in a similar manner using crates stored in the bottom shelf of the wall racks,
below heapers and in back room. Follow FEFO, FIFO rules.
 In case of F&V, remove the old crates, place the new crates on the racks and then
place the older products on top of the newer products – FIFO
 Checking of temperature of chillers and freezers is also a part of SDM.
 It is the process of checking and moving stocks to ensure that the older stock gets
sold before the newer ones.
 FEFO / FIFO to be followed for stock rotation for non F&V SKUs.
 The thing which is strictly followed is removal of damaged part of the F&V will not
be carried out at the shop floor under any circumstances.
 In every store every day employees check for date code check schedule for the day in
store perform.
 Employees removed expired products from the shelves and take them to the back of
the store.
 Employees identify & segregate near expiry products for mark down as per
markdown policy and guidelines.
 Procedure for selling loose staple products to the customer in desired quantity.
 Procedure for managing the concessionaire in our stores like the Pickles counters,
Sweet counters etc.
 Home delivery: for this there is some procedure which is followed by stores.
 Purchase a detailed street map of the local area e.g. Eicher
map
 Outline on the map the catchments which fall in 2 Km
radius of the store.
 Prepare a list of roads / building with in that area.
 They appoint two employees for Home delivery champions
(HDC) – for order taking, picking and billing.
 Home delivery associate (HDA) – billing and delivery.
 There is two type of home delivery which is given by the
RF: Convenience order – this is a situation in which the
customer has come to the store, picked items, got them
billed and then request RF store team to deliver to his
residence. The payment in this case for the goods has
already been received.
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Phone Orders - This is a situation in which the customer

does not carry out the activities of physically picking,
billing etc. but places an order on phone by calling either at
the store or at the call centre. The payment in this case
would be received once the delivery CSA goes to the
customer destination and hands over the goods.

 Big orders store hire auto, rickshaws & it is decided by

store manager.

8) Managing waste and markdowns :

(a) Segregation of damaged and expiry in store :-

(a) For F&V crates are received carefully for the item not for sale as per reliance retail
quality and are removed from the shelf.
(b) It is done by CSA / F&V champion.

EXPIRY:-
(a) Near expiry product is markdown as per the RR rule.
(b) An expired product is segregated and are treated as per following.

PRODUCT TYPE TREATMENT

DSD supply Exchange with fresh stock from the
vendor at the time of next delivery
DC supply Dump in store.

(b)Markdown for damages and near expiry:-

Damaged and near expiry products are markdown as per the following rules:

Markdown criteria:-
Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager.

Up to Rs 30 or 30% of SP(whichever is lower) & it is also done by DM / AM.

Beyond Rs 30 or 30% of SP & it is done by state fresh head.

Dumping of damages & expiry product:- Treatment for damaged & expired product are
done in following manner:-

Loss type Action

(a) Type C damage • Dump in store (shown in SAP)
• Dispose in store.
(b) All expiry – (DC supply & DSD • Dump in system (SAP)
without RTV) • Display in store
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(c) Expiry – (DC supply with RTV) • Exchange with fresh stock, fresh
vendor at the time of next delivery

 For processing of dump (damaged & expired) approval is obtained from store
manage.
 After dumping, all the dump are entered into dump register in the presence of SM
with his /her signature.
 The entire dumped product is then get hand overed to garbage collection agency.
 For type C damaged product some part of each product is kept as proof.
 Finally the dump register is present near DM/AM for approval (signature).

(c)Dump on arrival:-
 On arrival of goods (F&V stock received from DC) poor quality goods are
segregated.
 It is kept in separate place in the store with the sticker “dumped on arrival – not
for sale” along with receiving date.
 And the respective SM is informed.
 In the GRN (goods received roles) for the delivery, poor quality stocks are
entered as “Damaged Quality”.
 Further it is kept for inspection and area F&V executive is informed. E-mail is
send to the F&V head / F&V category head.
 Finally dumped stocks are hand over to garbage agency.
 In case the GRN is done at the back end maintain a record of the DUA and also
record the some on the invoice that is sent to the commercial team.

(9) Returns:-

(a) Goods Return to DC:-

 A finalized list of good stock article for return to DC is obtained from state
merchandising team.
 According to the list stock of articles are segregated and are moved to the
back office.
 Return schedule is obtained from the state merchandising team and packing
of goods carton are planned.
 They are packed properly. Food and non-food items are packed separately.
 And GRDC is created in SAP for the quality to be returned.
 Finally it is loaded and dispatched to DC in DC truck and return to DC
documents is get signed by the truck driver and is kept with itself.

(b) Goods Return to Vendor:-

 Stocks which are to be returned to vendor are taken out to the back room..
 DSD returns are segregated as per category guidelines.
 Return to vendor document is created in the store.
 Returns are loaded to the vendor’s vehicle.
 2 copies of vendor document are made and is got signed by the vendor.
 One copy is issued to the vendor and 2nd copy is filled as record.
 Security control register for returns are updated regularly

(c) Physical verification of stock:-

 All PI documents present in the system are checked and closed.
 Stocks take checklist is updated.
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 It is managed with DC to ensure that there is no afternoon or evening

delivery on the stocks count day.
 Following are checked and ensure:-
(i) GRN for all DC deliveries have been prepared.
(ii) GRN for all DSD deliveries have been completed.
(iii) All damaged products (type c ) have been dumped.
(iv) All expiry product have been dumped.
(v) PI documents for stocks take is generated.
(vi) HHTs are managed and ensured that they working properly etc.

(d) Stocks count and reconciliation:-

 Objective of the count, the layout of the stores and the process are briefly
explained to the staff.
 For stock count staffs are delivered for counting of articles in fixtures and for
entering the count in the HHT.

Back of store – store take

SKUs by weight (F&V, loose staples, etc)
(i) Each loose article are weighed separately and quantity stickers are pasted.
(ii) It is continued until all SKUs are weighed.

SKUs by count:-
(i) Product variants are segregated. Number of units are counted and stickers are pasted
with the quality on SKUs.
(ii) It is continued until all the SKUs are not counted.
(iii) PI count in the HHT is opened (all PI document together) and quantity is entered after
scanning the EAN / article code of the SKUs from the product in the HHT PI
document.
(iv) It is continued in this manner till all the SKUs in the back of store is counted and the
quantity is entered in the PI documents with the help of HHT.
(e) Store Opening :-
(i) Store shutter is opened.
(ii) Burglar alarm is put off.
(iii) Entry for collection of keys and store opening details are recorded in the
register kept at the security.
(iv) Lights are switched on and all the equipments are checked for working made.
(v) Generators are checked for water level, engine oil and Diesel.

(f) Store closing:-

(i) Announcement is made for store closing 10 min before closing.
(ii) No. of tills to be closed or operated fully depends upon the no. of customer
in the store.
(iii) Ensure that no customer is present inside the store.
(iv) POS & EDC closure process is performed.
(v) It is checked that equipment is in order or not after which the store is closed.
(vi) Security guard is got to put paper seal on safe and almirah.
(vii) All air-conditioners are switched off except server room a/c (which must be
maintained between 22-24 degree c )
(viii) Display lights and façade lights are switched off.
(ix) Back room lock is sealed with a paper seal.
(x) Burglar alarm in the store is updated and key register is signed in.
(xi) Finally shutters are locked.

On the sales floor-stock take:-

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(i) Counting and weighing of bays are started, and quantity or count stickers are pasted.
(ii) PI documents are opened , EAN/ article code on the products are scanned using the
HHT and the counted number is entered.
(iii) Similarly all the SKUs shelves and bays counted on sales floor and the count entry is
entered in the PI document.
(iv) Control sheet for the fixtures that has been counted are updated.
(v) Once all the articles in the store are counted and count entry is done in the HHT , post
the count data by pressing the “ post count” button in the HHT only.
(vi) HHT would display the list of SKUs for which count has been not entered then the
article in the store is looked upon and count is updated in case the article is
present in the store and count entry was missed earlier.
(vii) The final counted data is posted once again by pressing the “post count” button.
(viii) Success log is checked to ensure that all the PI documents are successfully
posted.
(ix) The stock take report is generated is SAP and inventory differences is listed.
(x) In case of major variations record is performed and the count in the PI document is
changed and the count is reported.
(xi) The variation is checked and confirmed and then the difference is posted by posting
the PI documents in ZSTORE, using the ‘Post ‘option under “Phy inv. Post” in
the physical inventory menu.
(xii) The stock take check list lifted in the store.

ANALYSIS OF RELIANCE RETAIL STOREIN MONTH OF MAY 2009

AVERAGE NUMBER OF VISITOTS BASED ON MALE AND FEMALE:-

Considering the above chart it can be concluded that female visit more as compare to the male
counterpart and hence reliance fresh owner should consider about the female and should take
more care of female in the sphere of services, protection and product availability also.
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AVERAGE NUMBER OF VISITOR BASED ON DIFFERENT AGE GROUP:-

if we consider the above chart it can be easily concluded that the people between the age
group 23-32 visit more and more in the reliance fresh store and hence store manager
should take care of this age group peoples so that they may captivate them by giving
various discount or facilities etc.

RECOMMENDATION
COMMUNICATION:

 Based on my observation I found that reliance fresh is not

able to make an advertisement properly as compare to big bazaar
or other retail store which is its competitor. so company should
make a proper team to let the people aware about their schemes
and offers being given by reliance fresh.
 Company should increase the number of counter so that it may
minimize the quie of the customers.
 Company should acquire more and more skilled people so that it
may satisfy their customer in all areas.

BEHAVIOR AND COMMITMENT:

Behavior and commitments of sales man towards the dry outlets should be improved.