Reliance Retail Project
Reliance Retail Project
Reliance Retail Project
AT
VIKAS PURI
Submitted in partial fulfillment of the requirements for the Two Year Full Time Master of
Business Administration
By
RIA SINGH
A.K. AGARWAL
DECLARATION
It is hereby declare that the project report entitled “RELIANC RETAIL STORE OPERATION ”
submitted for the degree of Master of Business Administration, is my original work and the
project report has not formed the basis for the award of any diploma, degree, associateship,
fellowship or similar other titles. It has not been submitted to any other university or institution
for the award of any degree or diploma.
Place:
Date: RIA SINGH
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ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can substitute
which is possible while working in real situations. Application of theoretical knowledge to
practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it’s not easy to achieve anything.
There is always a sense of gratitude, which we express to others for the help and the needy
services they render during the different phases of our lives. I too would like to do it as I really
wish to express my gratitude toward all those who have been helpful to me directly or indirectly
during the development of this project.
I would like to thank my HOD Mr.Anil Agarwal and my mentor Mrs. Deepshikha who was
always there to help and guide me when I needed help. I would like to thank Mrs. Shipra Nigam
(Head HR) Reliance Retail at Vikaspuri. His perceptive criticism kept me working to make this
project more full proof. I am thankful to him for his encouraging and valuable support. Working
under him was an extremely knowledgeable and enriching experience for me. I am very thankful
to him for all the value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents whose support
helps me in all the way. Above all I shall thank my friends who constantly encouraged and
blessed me so as to enable me to do this work successfully.
RIA SINGH
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 labour. Even among
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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.
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.
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
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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.
Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for
understanding the retail structure and evolving a retail strategy."
Margin is defined as the percentage mark tip at which the inventory in the store is sold and
turnover is the number of times the average inventory is sold in a year. This is a
diagrammatic representation of the frame work and can be applied to almost any type of
retail business.
Depending upon the, combination of the two parameters, a retail business will fall into one
of the four quadrants. For instance L-L signifies a position which is low on both margin
and turnover; whereas, H-L indicates high margin and low turnover.
Such an operation assumes that low price is the most significant determinant of customer
patronage. The stores in this category price their products below the market level.
Marketing communication focuses mainly on price. They provide very few services; if
any, and they normally entail an extra charge whenever they do. The merchandise in these
stores are generally pre-sold or self sold. This means that the customers buy the product,
rather than the store selling them.
These stores are typically located in isolated locations and usually stock a wide . range of
fast moving goods in several merchandise lines. The inventory consists of well known
brands for which a consumer pull is created by the manufacturer through national
advertising. Local promotion focuses on low price. Wal-mart in the United States is an
example and Pantaloon Chain or Subhiksha are Indian examples of such stores.
This operation is based on the premise that distinctive merchandise, service and sales
approach are the most important factors for attracting customers. Stores in this category
price their products higher than those in the market, but not necessarily higher than those
in similar outlets. The focus in marketing communication is on product quality and
uniqueness.
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Merchandise is primarily sold in store and not pre-sold. These stores provide a large
number of services and sell select, categories of products. They do not stock national
brands which are nationally advertised. Typically, a store in this category is located in a
down town area or a major shopping center. Sales depend largely on salesmanship and
image of the outlet.
Most independent retailers fail because of the ease of entry, poor management skills and
inadequate resources.
Retail Chain
It involves common ownership of multiple units. In such units, the purchasing and
decision making are centralized. Chains often rely on, specialization, standardization and
elaborate control- systems. Consequently chains are able to serve a large dispersed target
market and maintain a well known company name. Chain stores have been successful,
mainly because they have the opportunity to take advantage of "economies of scale" in
buying and selling goods. They can maintain their prices, thus increasing their margins, or
they can cut prices and attract greater sales volume. Unlike smaller, independent retailers
with lesser financial means, they can also take advantage of such tools as computers and
information technology. Examples of retail chains in India are Shoppers stop; West side
and IOC, convenience stores at select petrol filling stations.
Retail Fvikaspurising
Cooperatives
A retail cooperative is a group of independent retailers that have combined their financial
resources and their expertise in order to effectively control their wholesaling needs. They
share purchases, storage, shopping facilities, advertising planning and other functions. The
individual retailers retain their independence, but agree on broad common policies. Amul
is a typical example of a cooperative in India.
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Retailers can be classified by retail store strategy mix, which is an integrated combination
of hours, location, assortment, service, advertising, and prices etc. The various categories
are:
(A)Convenience Store: Is generally a well situated, food oriented store with long
operating house and a limited number of items. Consumers use a convenience store; for
fill in items such as bread, milk, eggs, chocolates and candy etc.
(B)Super markets: Is a diversified store which sells a broad range of food and non food
items. A supermarket typically carries small house hold appliances, some apparel items,
bakery, film developing, jams, pickles, books, audio/video CD's etc. The Govt. run Super
bazaar, and Kendriya Bhandar in Delhi are good examples of a super market. Similarly in
Mumbai, we have Apna Bazar and Sahakari Bhandar.
(C)Department Stores: A department store usually sells a general line of apparel for the
family, household linens, home furnishings and appliances. Large format apparel
department stores include Pantaloon, Ebony and Pyramid. Others in this category are:
Shoppers Stop and Westside.
(D)Speciality Store: Concentrates on the sale of a single line of products or services, such
as Audio equipment, Jewellery, Beauty and Health Care, etc. Consumers are not
confronted with racks of unrelated merchandise. Successful speciality stores in India
include, Music World for audio needs, Tanishq for jewellery and McDonalds, Pizza Hut
and Nirula's for food services.
(E)Hyper Markets: Is a special kind of combination store which integrates an economy
super market with a discount department store. A hyper market generally has an ambience
which attracts the family as whole. Pantaloon Retail India Ltd. (PRIL) through its
hypermarket "Big Bazar", offers products at prices which are 28% - 30% lower than the
market price.
In non store retailing, customers do not go to a store to buy. This type of retailing is
growing very fast. Among the reasons are; the ability to buy merchandise not available in
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local stores, the increasing number of women workers, and the presence of unskilled retail
sales persons who cannot provide information to help shoppers make buying decisions
The major types of non store retailing are:
(A)In Home Retailing: Where, a sales transaction takes place in a home setting -
including door-door selling. It gives the sales person an opportunity to demonstrate
products in a very personal manner. He/She has the prospect's attention and there are
fewer distractions as compared to a store setting. Examples of in home retailing include,
Eureka Forbes vaccum cleaners and water filters.
(B)Telesales/Telephone Retailing: This involves contact between the prospect and the
retailer over the phone, for the purpose of making a sale or purchase. A large number of
mobile phone service providers use this method. Other examples are private insurance
companies, and credit companies etc.
(C)Catalog Retailing: This is a type of non store retailing in which the retailers offers the
merchandise in a catalogue, which includes ordering instructions and customer orders by
mail. The basic attraction for shoppers is convenience. The advantages to the retailers
include lover operating costs, lower rents, smaller sales staff and absence of shop lifting.
This trend is catching up fast in India. Burlington's catalogue shopping was quite popular
in recent times. Some multi level marketing companies like Oriflame also resort to
catalogue retailing.
(D)Direct Response Retailing: Here the marketers advertise these products/ services in
magazines, newspapers, radio and/or television offering an address or telephone number
so that consumers can write or call to place an order. It is also sometimes referred to as
"Direct response advertising." The availability of credit cards and toll free numbers
stimulate direct response by telephone. The goal is to induce the customer to make an
immediate and direct response to the advertisement to "order now." Telebrands is a classic
example of direct response retailing. Times shopping India is another example.
(E)Automatic Vending: Although in a very nascent stage in India, is the ultimate in non
personal, non store retailing. Products are sold directly to customers/buyers from
machines. These machines dispense products which enable customers to buy after closing
hours. ATM's dispensing cash at odd hours represent this form of non store retailing.
Apart from al820874100
l the multinational banks, a large number of Indian banks also provide ATM services,
countrywide.
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RETAILING DECISIONS
There are many factors for retailers to consider while developing and implementing their
marketing plans. Among the major retailing decisions are these related to (a) Target
markets (b) Merchandise management (c) Store location (d) Store image (e) Store
personnel (f) Store design (g) Promotion, and (h) Credit and collections.
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Target Markets: Although retailers normally aim at the mass market, a growing number are
engaging in marketing research and market segmentation, because they are finding it
increasingly difficult to satisfy everyone. Through a careful definition of target markets,
retailers can use their resources and capabilities to position themselves more effectively and
achieve differential advantage. The tremendous growth in number of speciality stores in
recent years is largely due to their ability to define precisely the type of customers, they want
to serve.
Merchandise Management: The objective here is to identify the merchandise that
customers want, and make it available at the right price, in the right place at the right
time. Merchandise Management includes (i) merchandise planning (ii) merchandise
purchase, and (iii) merchandise control. Merchandise planning deals with decisions
relating to the breadth and depth of the mix, needed to satisfy target customers to
achieve the retailers return on investment. This involves sales forecasting, inventory
requirements, decisions regarding gross margins and mark ups etc. Merchandise
buying involves decisions relating to centralized or decentralized buying, merchandise
resources and negotiation with suppliers. Merchandise Control: deals with maintaining
the proper level of inventory and protecting it against shrinkage (theft, pilferage etc.).
Store Location: Location is critical to the success of a retail store. A store's trading-
area is the area surrounding the store from which the outlet draws a majority of its
customers. The extent of this area depends upon the merchandise sold. For example
some people might be willing to travel a longer distance to shop at a speciality store
because of the unique and prestigious merchandise offered. Having decided on the
trading area a specific site must then be selected. Factors affecting the site include,
traffic patterns, accessibility, competitors' location, availability and cost and
population shifts within the area.
Store Image: A store image is the mental picture, or personality of the store, a retailer
likes to project to customers. Image is affected by advertising, services; store layout,
personnel, as well as the quality, depth and breadth of merchandise. Customers tend to
shop in stores that fit their images of themselves.
Store Personnel: Sales personnel at a retail store can help build customer loyalty and
store image. A major complaint in many lanes of retailing, is the poor attitude of a
salesperson. There is a growing trend now, to provide training to, these sales clerks to
convert them from order takers to effective sales associates.
Store Design: A store's exterior and interior design affect its image and profit
potential. The exterior should be attractive and inviting and should blend with the
"
store's general surroundings. The term Atmospherics" is used to refer to the retailer's
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Non Store Retailing: Non store retailing is accelerating at a faster rate than in store
retailing. This includes direct marketing. In Home shopping TV shopping and e-tailing
etc.
Diversification of Offerings: Scrambled (unrelated products or services)
merchandising is taking on a broader meaning and inter type competition among
retailers is growing. For instance Citibank is organizing tourist trips and sending mail
order catalogues to its credit card customers.
Impact of Technology on Shopping Behaviors: The way retailers present their
merchandise and conduct their transactions are changing. Cable TV Channels are used
to present merchandise, Videos have replaced catalogues and computer linkages to
acquire information and make purchases are on the increase. Virtual shopping through
PDA's is another possibility.
Multi Channel Retailing: Traditional store based and catalogue retailers are placing more
emphasis on their electronic channels and evolving into multi channel retailers, because they
can reach new markets and overcome limitations posed by traditional formats.
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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 800 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 18 billion to more than 100 countries in the world. There are more than 28,000
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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FOUNDER PROFILE
"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream
It, you can do it."
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global
leader in the materials and energy value chain businesses.
H.S.Kohli
Nikhil R. Meswani Executive Hital R. Meswani
Executive
Director Executive Director
Director
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RELIANCE FRESH
India’s Fortune 800 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 28000 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 28,000 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 8 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.
• 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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RELIANCE FRESH
NEW
Pira Garhi 487/35 Natioanl market peera garhi New delhi 110087
DELHI
Milap
Nagar,Mangal NEW WZ-50/51,Mangal Bazar Road Milap Nagar, Uttam
110059
BazaarUttam DELHI Nagar,New Delhi
nagar(E)
NEW
Bali Nagar F-99 Ground Floor Bali Nagar , New Delhi 110015 110015
DELHI
Mansarovar
DELHI F-227/228 mansarovar Garden 110015
Garden
Paschim Vihar DELHI A-6/1,Paschim Vihar. Oppsite Indraprastha School, New Delhi 110063
Fateh Nagar á DELHI D- 28&29 fateh nagar , new delhi, Pin code--- 110018 110018
NEW
Nangloi Saiyed Property No.- 4&5, Sayed Nangloi, New Delhi. 110087
DELHI
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On an average turnover is 80, 000 in Vikaspuri, where as compare to others cities it is too
low.
Their main aim is to provide good quality products in lower price & customer service &
customer satisfaction.
According to reliance fresh store manager they were satisfying 78% of customer expectations.
OBJECTIVES:
Other R
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Marketing Research
as compared to other field. All decisions in modern business organization revolve around the
marketing information. Because the success of the business does not depend upon the guess
work rather have the correct information about the customer, what they want, how want,
how much they are able to pay, and the substitute available in the they market etc. This
Types of Research
All research approaches can be classified into three general categories research:
3. Exploratory Research: Exploratory research is used when one is seeking insights into
the general nature of the problem, the possible decision alternatives, and relevant
variables that need to be
Basically there are two types of data which are used in marketing research process.
1. Primary Data
A. Observation
B. Interview
C. Questionnaires
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Interview: Interview is one of the chief means of collecting data in research process.
Interview may be defined as a systematic conversation initiated for a specific purpose and
focus on certain content areas.
Surveys: There are mainly three types of surveys, depending upon the method of data
gathering used: Personal surveys, telephone surveys and mail surveys.
Advantages of Surveys
1. Wider Distribution
2. Less Distribution bias
3. Thoughtful reply
The primary data under processing is collected from both direct filling the questionnaires
and through telephone interviews also.
2. Secondary Data: The data once collected by once person become the secondary
data if used by another person.
1. Bibliography
2. Directories
3. Televisions
4. Newspapers
5. Journals
6. Websites
The Secondary data like information of existing customers, information about company has
been taken from company website, company’s yearly chronicles and employee’s of the
company.
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Sampling
A sample is a part of population. The sample should be representative of the population and
the information obtained must be reliable. In any survey where reliability is desired, the
errors and variances have to be controlled, measured and interpreted.
RESEARCH DESIGN
The types of Primary Data collection procedures that would probably be used.
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Process – Sampling
Attitude Measurement
Types of Attitude measurements Scale: There are four types of measurement scale as
follows.
2. Ordinal Scale: An ordinal scale is obtained by arranging them in order with regards
to some common variable. The question is simply whether each object has more or
less of this variable than some other objects.
3. Interval Scale: In an interval scale the numbers used to rank the objects also
represent equal increments of the attributes being measured.
4. Ratio Scale: A ratio scale is a special kind of interval scale that has a natural zero
point.
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The Nominal Scale is used while designing the questionnaire. Both close ended and open
ended questions are put together in the questionnaire.
DATA COLLECTION:
PRIMARY DATA – Collected from consumers and suppliers, reliance fresh employees
The information is the major part of any research proposal to attain certain objectives we
require both secondary and primary data which is discussed above
HYPOTHESIS TESTED:
LIMITATIONS:
Every research has certain limitation so there is no research is free from limitation same thing
happen in this research which is discussed below:
- NEED OF STUDY:-
A detailed study in Reliance Retail focusing primarily on two areas of their operations.
(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.
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:-
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.
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.
Vendors and store staff check physically check DSD deliveries for damages and
freshness and accept only fresh saleable products.
3) Replenishment of goods
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.
(a) Changing SELs for those SKU’s where price has been changed. All the changing
of SKU’s is done by headquarter Mumbai.
8) Managing Planogram
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 8 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.
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.
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.
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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.
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.
(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.
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Markdown criteria:-
Up to Rs. 18 or 18 % of selling price (whichever is lower) & it is done by Store manager.
Dumping of damages & expiry product:- Treatment for damaged & expired product are
done in following manner:-
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:-
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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 :-
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Catchment area: - the area and population from which a region attracts visitors or customers
FOOT TICKET
DATE FOOT FALL TICKET SIZE DATE FALL SIZE
8/16/2018 462 208 6/1/2018 408 204
8/17/2018 368 198 6/2/2018 846 308
8/18/2018 487 348 6/3/2018 846 438
8/19/2018 867 342 6/4/2018 483 397
8/20/2018 482 384 6/8/2018 486 198
8/21/2018 384 189 6/6/2018 483 231
8/22/2018 436 301 6/7/2018 823 303
8/23/2018 648 403 6/8/2018 438 382
8/24/2018 367 300 6/9/2018 843 342
8/28/2018 864 402 6/10/2018 438 241
8/26/2018 483 278 6/11/2018 864 312
8/27/2018 843 308 6/12/2018 843 309
8/28/2018 483 436 6/13/2018 426 189
36
100%
80%
60%
40%
162 304
20%
0%
MALE
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 availibilty also.
37
250
91
200
60
150 149 female
119 47 male
100
30 65
50 45
0
7-15 YEAR 16-22 YEAR 23-32 YEAR 32-55 YEAR
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.
The targets for the current month to any store are assigned according to the sales figures of
the preceding month. Usually the target for the current month is greater than the sales
achieved for the last month by 10-18 % in normal conditions. They can also exceed to almost
28% in some cases where there is large scale supply of stocks of certain kind seeing upon the
arising opportunity for their sale.
SALES
Sr Store Store Area LMTD MTD MTD MTD LMTD
. code Name Achieve Targe Achieve Archive Vs MTD
No d t d d%
1 2118 SPG mart 4163 32.87 37.62 34.88 92 % 8%
2 2119 Trikuta hill 2234 8.66 9.88 8.84 93 % 2%
3 2120 Rathoid 2111 17.60 20.28 17.89 87 % 0%
C.R
4 2121 Vyas 2860 16.18 18.91 17.68 93 % 9%
Enclave
8 2122 L N 4832 29.09 32.67 32.83 100 % 13 %
Complex
6 2377 M R Tower 1938 6.68 7.72 6.81 88 % 2%
7 2448 Eyelex 2800 20.26 26.47 22.88 88 % 11 %
hinoo
38
80
70 34.58 32.83
60
50 22.58
21.08 MTD Achieved
40 37.62 17.59 17.65
30 32.67 16.6 MTD Target
26.47 22.96
20 8.84 20.25 18.91 17.56
10 6.81
9.55 7.72
0
Reliance Retail calculates its input per store in form of sales / ft / day in total no. of hrs. of
operation (from 7:00 AM till 9;30 PM). This cost of operation / input includes rentals,
logistics cost, labor costs, electricity charges and up keep and maintenance charges. FTD
(fixed till date) sale / sq ft. represents the break-even point for the company. In case of May
2018 FTD takes into consideration. 31st days of operation from 1st may 2018 to 31 August
2018. FTD sale/sq ft is assigned to each individual store from the Mumbai based headquarters
of Reliance Retail
So it can be seen that none of the nine operating. Reliance fresh stores in Vikaspuri have been
able to achieve their break-even point for the month of May 2018. Reliance Fresh stores are
on verge of completing almost 2yrs of their operation in Vikaspuri district but they are yet to
reach their breakeven point.
Out of the 47 Reliance fresh outlets in eastern region (including 9 from Vikaspuri) none
have yet reached their BEP.The Company assigns gross margin of operation to each
individuals stores based on their past performances of sales, inputs in current month,
shrinkages and dumping.
It can be seen that except store no Trikuta Hill, L N Complex & Eyelex, none of these stores
have been able to give the assigned levels of gross margin.
Reliance Retail has a policy of not letting to exceed the shrinkage (loss of goods due to theft
& pilferage) & dumping (loss of goods due to expiry) to individually exceed 2% of the total
sales. It was observed that due to practices like better in-store upkeep, supply close to demand
, better surveillance etc. the shrinkage & dumping were restricted to the desired level in
almost of the stores.
Trikuta hill store, Vyas Enclave store, & M R Tower had above restricted limit shrinkage &
dumping. For Prasad motor store only % age & shrinkage was high.
Whereas in Rathod circular road ,Eyelex hinoo & Booty more store only (%) age dumping
was high than the restricted limit.
Number of tickets means the total number purchases that were made during the entire month.
It was observed that against the target on only 4189 purchase all the 9 Reliance Fresh stores
of Vikaspuri registered combinedly 118,893 purchases.
Sales / tickets (ticket size) FTD represents the value of sales per purchase that the stores
should make in order to reach the BEP margin.
Sales /ticket (MTD) represents the value of sales per purchase actually achieved by the store.
In this case also it was seen that none of the 9 stores have reached the BEP.
Reliance retail expected its Reliance Fresh venture to reach its BEP within a span of 1 – 1.8 of
their operation and to become a profit making entity after that out of 9 stores in Vikaspuri all
have completed their at least 1 – 2 years of existences but are yet to achieve their BEP.
43
RECOMMENDATION
COMMUNICATION:
PROMTNESS IN SERVICES:
Company should pay kind attention towards the existing customer and try to
provide them quick response in the sphere of services so that they become
VIKASPURI’S loyal customers.
Many corporate houses was there who were reluctant to use Vikaspuri lease line
provided that someone assure them to have a promt services from them.
SCHEMES:
Main competitor Airtel Tata and Reliance comes with various schemes and margins
on the other hand Vikaspuri is not giving any sort of scheme and discount that is why
many clients were inclined toward using the lease line offered by other players..
After all business is all about profit and retailer wants some profit and margins.
Behavior and commitments of sales man towards the dry outlets should be improved.
44