project report of “customer loyalty programme of reliace fresh

IBSAR Pune ([email protected])

PROJECT REPORT

O

“CUSTOMER LOYALTY PROGRAMME

OF RELIA�CE FRESH”

I

RELIACE RETAIL LTD.

SUBMITTED BY

Satish Prakash Goyal

MBA (MARKETING)

TILAK MAHARASHTRA UIVERSITY GULTEKDI,

PUE – 411037

2007-2009


ACKOWLEDGEMET

Acknowledging the debt is not easy to me as so many people. I will take this

opportunity in expressing the fact that this project report is the result of an

unbelievable amount of encouragement, cooperation, willing to help and

moral support that I have received from others.

It is beyond my literal and material means to express my heartfelt thanks to

Mr. Gopalkrishna Adhikarla, Director IBSAR College Pune for his

assiduous guidance, continuance encouragement and aspiring suggestion

during the Project study.

I am thankful to Prof. Sumit Roy & Prof. Vilas Chaudhary -- faculty

Guide for enlightening me on this subject with his valuable guidance from

time to time in completing this project.

I am grateful to my project Guide Mr. Dipesh Rai, MFT Area manager,

Reliance Retail Ltd, Jaipur

.

I am also thankful to Mr. Manish Sharma, Area Manager, in operation dept

of Reliance Retail Ltd Jaipur for his special guidance in completing this

project.

I am also thankful to Mr. Puneet Sharma and Miss.Preety Yadav MSR,

Reliance Fresh, Bhawani singh marg jaipur, for their valuable suggestions.

Finally, once again I would like to thank all without whom I would not have

been able to do this project.

Satish Prakash Goyal


TABLE OF COTETS SR.NO. CONTENTS PAGE

NO.

1. EXECUTIVE SUMMARY I

2.

CHAPTER-1 INTRODUCTION.

1.1 BASICS OF RETAIL.

1.2 RETAIL TERMINOLOGIES.

1

7

10

3. CHAPTER -2 REVIEW OF LITERATURE.

2.1 RETAIL SCENARIO IN INDIA.

2.2 RETAILING FORMATS IN INDIA.

14

17

4. CHAPTER -3 WORKS DONE.

3.1 PROJECT INTRODUCTION.

3.2 QUESTIONNAIRE.

3.3 FINDINGS OF QUESTIONNAIRE.

3.4 RELIANCEONE MEMBERSHIP CARD.

3.5 CUSTOMER INFORMATION CHANGE REQUEST.

3.6 UNDERSTANDING PLANOGRAM.

3.7 PROCEDURE OF REPLENISHMENT.

3.8 METHODOLOGY FOR ANALYSIS &

INTERPRETATION.

3.9 SWOT ANALYSIS.

39

47

49

52

53

58

62

63

70

5.

CHAPTER -4 CONCLUSIONS.

4.1 FINDINGS OF THE STUDY

4.2 RECOMMENDATIONS FOR APPLICATION.

4.3 CONCLUSION.

71

76

78

6. BIBLOGRAPHY 79


EXECUTIVE SUMMARY

The project was undertaken as a part of summer training in MFT

Department at Reliance Retail for 90 days. The project studies were

conducted at Reliance Fresh convenience store of Reliance Retail

situated at Bhawani singh marg, Jaipur.

The objectives of the project were as follows:

� To study & Increase the “Loyalty Sales Percentage”

� Better utilization of resources

� Increasing Loyalty Sales Percentage

� Aware customer about Reliance One Membership card

� Increasing store profit

� To study and evaluate the stock movement of Non Food Fast

Moving Consumer Goods (NF FMCG) & high value SKUs esp.

large chocolates and house wares and suggest appropriate low

value NF FMCG product mix.

� To study the correlation between the Maximum Bay Quantity

(MBQ) level of all SKUs (Fruits &Vegetables, Staples, Process

Food, FMCG etc.) and sales & suggesting the optimum level of

MBQ for each SKU for maximum sales.

� To study the effective utilization of Planogram of the store.


CHAPTER -1

INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION


INTRODUCTION

Evolution of Retail

Retail, according to Concise Oxford English Dictionary, is “the sale of

goods to the public for use or consumption rather than for resale”.

The barter system was first known retail form; then the currency

changed hands; we had the handcart vendor selling goods in the

streets; of late we have a pop & mom stores which compliment the

neighborhoods stores.

The first retailer in India includes Bata, Pantaloon, Bombay Dyeing,

Spencers, and Nilgiris & Higginbotham. The current retail scenario is

controlled by the likes of Shoppers’ Stop, Brand Outlets, Big Bazaars

etc.

The top 4 world players include Wal-Mart, Carrefour, Tesco and

Metro.

The opportunities as mentioned are aplenty with close to 15000000

sq.feet of retail space is under construction for various malls &

shopping centers across the country.

Retailing consists of the sale of goods or merchandise, from a fixed

location such as a department store or kiosk, in small or individual lots

for direct consumption by the purchaser. Retailing may include

subordinated services, such as delivery. Purchasers may be individuals

or businesses. In commerce, a retailer buys goods or products in large

quantities from manufacturers or importers, either directly or through

a wholesaler, and then sells smaller quantities to the end-user. Retail

establishments are often called shops or stores. Retailers are at the


end of the supply chain. Manufacturing marketers see the process of

retailing as a necessary part of their overall distribution strategy.

What is retailing?

� The sale of goods or commodities in small quantities directly to

consumers.

� Buy, Sell & Move

Buy, Move & Sell

Having gone through some of the terminologies in retail and having

seen a broad outline of retail now let’s look into the 3 basic things,

which govern the retail market.

1. Buy

Buying would involve the following activities, which would mean

setting the guiding principles for all the merchandise decisions that a


retailer makes. It should reflect target market desires, retailer’s

institutional type, market place positioning, defined value chain,

supplier capabilities, costs, competitors & product trends.

2. Move

It can be easily said but the processes that are involved in the “move”

part are complex but simple. From the product stage through the

processing stage to the packed ones the move stage would continue.

Various levels that involves in “move” part are:

The buyer shortlists the product, places the order.

The vendors receives the order, process the same, packs and send it to

the distribution center from where it reaches the store for the

customer to buy.

One of the fast picking up aspects of the logistic in India is the COLD

CHAIN. More and more organizations are looking for various aspects

of cold chain to ensure that the products where temperature plays a

vital role is maintained and sustained till such time the sale happens.

The Merchandising and Category management is another important

function of the retail industry. In this we have to opt for right product,

place, quantity, quality, mix, price and time. Each of the stores would

operate on certain basic business projection and all others will follow a

typical pattern. For this pattern to be arrived, the merchandise

management plays a big role. The merchandise can make or break an

organization of its profitability.

When we say category management, it would amply the assortments

of products the customer sees as reasonable substitutes for each other

with similar characteristics. It also covers the process of managing

merchandise in a retail business with the objective of maximizing sales


and profits of a category. The category manager is also responsible for

developing assortment plans for the entire category, buying pricing

and coordinating promotions.

3. Sell

Finally of the Buy, Move & Sell comes the selling part of it which

involves a running of a retail stores. Operations as it is known are the

crucial functions, which derive its strength from various other

faculties.

The beginning of the day is done with the store being opened by the

competent person. The first activity to happen will be the

housekeeping activities followed by the staff scheduling. The

morning’s meetings happen chaired by the head of the store. The stock

outs are established and the replenishments happen as the day

progresses, though it is suggested that replenishments of the stock

should always happen when the customer is not there. The head of the

store usually inspects any one or all the departments of the store,

which is otherwise called the “FLOOR WALK”.

The cashier would ensure that all the cashiers have enough and correct

float cash, whether the POS role, card swap machine and pen is in

place or not. In starting of the day head cashier gives all cashiers a sum

of Rs.1500 as loan. Having set everything in place, the store would

then be opened for the customers.

The department’s heads in turn would brief their team on the

achievements of the previous day and set target of the day. During this

brief any incidents worth mention would also be discussed and the

promotion offers, which are current, will also be taken up. Orders will

be placed for all the stock out SKU follows up will also be done for


those articles, which are delivered during the day. Cleaning of the self

and also ensuring that the stocks are kept as per the planogram are

checked. It’s just not the duties mentioned above but selling also

happen simultaneously.

At the end of day the process of concluding the activities is called the

“END OF THE DAY” activities. As the person who is in charge of

closing the store goes around checking whether the locks are in place

or not; the high value merchandise counters are properly secured;

check for any person hidden in the change rooms or cloaks rooms; the

cashier would ensure that all the money that has been given as float

tallies apart from the money that need to be submitted by the

respective cashiers. There will be a checklist that needs to sign off

together by the security as well as the in charge for having checked for

conformity at the end of the day.


BASICS OF RETAIL

The Indian Retail market is worth a whooping 930000 crores. If one

has to divide between the organized and unorganized sectors the

major contribution comes from the unorganized sector, which

contributes close to 98% of the total retail market. The balance of 2%

amounts anywhere between 18-2000 crores.

The difference between organized and unorganized sectors in the US &

some of the Far East Asian countries are pretty low unlike in India.

With the advent of seasoned players in the field of retail in India, the

gap is likely to be abridged in the coming years.

The difference between them is 85:15 in favor of organized sector in

the US and 81:19 in the favor of the organized sector in Taiwan.

The employment opportunities in retail is pretty high. But again the

ratio of organized and unorganized is skewed towards the unorganized

sector. While the organized retail sectors deploys 500000 people & the

unorganized sector deploys close to 80 times the workforce.

Factors that influence the growth in retail

The DINK/HINK families, working women, working parents and the

rising disposable income has contributed to the growth of Retail

across. The middle-income group is the fastest growing segment in the

country today. Further the electronic media is also aiding the growth

of the Retail industry.

To summarize the top 6 factors that drive the growth of the retail

industry in India would be as follows:

� The Demographics


� Lifestyles

� Needs and Desires

� Shopping Attitudes and Behavior

� Retailers action

� Environmental Factors

These six factors clubbed with a co-coordinated logistics make the sale

happen. As in any industry there is a social commitment also to be

fulfilled. These can be recapitulated as under:

� Quality products

� Competitive prices

� Wide range to choose from

� Employment opportunities that are created

� The economy would experience sea of change and

� Would mean a WIN WIN situation to everyone

Support Functions:

The entire operation is possible with the help of a support team. This

support team consists of the following:

Human Relation-Involves itself in recruitment, training and welfare

apart from their

regular activities

Good Receiving-This department is responsible not just for the receipt

of goods but also checking for their conformity and returns goods to

the suppliers as need arises.

Maintenance-The entire stores furniture and fixtures are taken care of

by the maintenance team


Accounts-the department, which receives all the cash, charge slips and

other types of tenders; keeps a tag on the local store expenditure and

also monitors any deviation in the transactions.

Housekeeping- Mostly it’s an outsourced agency, which does the work.

They keep the premises clean and tidy at all levels.

Security-They are responsible for safeguarding men and material of

the organization.

VM-This department maintains the displays and the signage across

the stores.

CSD-Otherwise known as the customer service desk takes care of the

customer complaints and issuance of merchandise credit and taking

care of the loyalty programmed.

IT-The IT department takes care of all the Networking, data

maintenance and upkeep of all the tills.


RETAIL TERMINOLOGIES

Alike any other industry the retail industry also has a wide range of

terminologies, which are in use on a day-to-day basis. Few samples of

them would include the following:

Till - The cash point

Tender - The type of payment the customer is making

SKU - Stock keeping unit

Merchandise Credit - Credit note

Assortment - Range of products and so forth

Maximum Bay Quantity (M.B.Q.) - It is the maximum quantity of

each

product, which can be placed on each shelf.

Maximum Display Quantity (M.D.Q.) – It is the number of SKUs,

which can

be directly seen by the customer in the front side.

Retail types

There are three major types of retailing. The first is the market, a

physical location where buyers and sellers converge. Usually this is

done on town squares, sidewalks or designated streets and may

involve the construction of temporary structures (market stalls). The

second form is shop or store trading. Some shops use counter-service,

where goods are out of reach of buyers, and must be obtained from the

seller. This type of retail is common for small expensive items (e.g.

jewelry) and controlled items like medicine and liquor. Self-service,


where goods may be handled and examined prior to purchase, has

become more common since the Twentieth Century. A third form of

retail is virtual retail, where products are ordered via mail, telephone

or online without having been examined physically but instead in a

catalog, on television or on a website. Sometimes this kind of retailing

replicates existing retail types such as online shops or virtual

marketplaces such as eBay or Amazon.

Retail pricing

The pricing technique used by most retailers is cost-plus pricing. This

involves adding a markup amount (or percentage) to the retailers cost.

Another common technique is suggested retail pricing. This simply

involves charging the amount suggested by the manufacturer and

usually printed on the product by the manufacturer.

In Western countries, retail prices are often so-called psychological

prices or odd prices: a little less than a round number, e.g. $6.95. In

Chinese societies, prices are generally either a round number or

sometimes a lucky number. This creates price points.

Often prices are fixed and displayed on signs or labels. Alternatively,

there can be price discrimination for a variety of reasons. The retailer

charges higher prices to some customers and lower prices to others.

For example, a customer may have to pay more if the seller determines

that he or she is willing to. The retailer may conclude this due to the

customer's wealth, carelessness, lack of knowledge, or eagerness to

buy. Price discrimination can lead to a bargaining situation often

called haggling — a negotiation about the price. Economists see this as

determining how the transaction's total surplus will be divided into


consumer and producer surplus. Neither party has a clear advantage,

because the threat of no sale exists, whence the surplus vanishes for

both.

Retailers who are overstocked, or need to raise cash to renew stocks

may resort to "Sales", where prices are "marked down", often by

advertised percentages - "50% off" for example."Sales" are often held

at fixed times of the year, for example January sales, or end-of-season

sales, or Blue Cross Sale.

Global Retail Scenario

Retail has played a major role world over in increasing productivity

across a wide range of consumer goods and services .The impact can

be best seen in countries like U.S.A., U.K., Mexico, Thailand and more

recently China. Economies of countries like Singapore,

Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by

the retail sector. Retail is the second-largest industry in the United

States both in number of establishments and number of employees. It

is also one of the largest worldwide. The retail industry employs more

than 22 million Americans and generates more than $3 trillion in

retail sale annually. Retailing is a U.S. $7 trillion sector.


Global Retail (Source: CSO, MGI Study)

Top Retailer Worldwide

Rank Retailer Home Country

1 Wal-Mart Stores, Inc. U.S.A.

2 Carrefour Group France

3 The Kroger Co. U.S.A.

4 The Home Depot, Inc. U.S.A.

5 Metro Germany

(Source: Stores/Deloitte Touche Tomahatsu)


CHAPTER -2

REVIEW OF REVIEW OF REVIEW OF REVIEW OF

LITERATURELITERATURELITERATURELITERATURE


RETAIL SCENARIO IN INDIA

As the corporate – the Piramals, the Tatas, the Rahejas, ITC Ltd,

S.Kumar’s, RPG Enterprises, Shopper’s Stop, Pantaloons, Reliance

Retail, Vishal Mega Mart, Aditya Birla Group, Subhiksha, Landmark

Group, True Mart race to revolutionize the retailing sector, retail as an

industry in India is coming alive.

Across the country, retail sales in real terms are predicted to rise more

rapidly than consumer expenditure during 2003-08. The forecast

growth in real retail sales during 2003- 2008 is 8.3% per year,

compared with 7.1% for consumer expenditure. Modernization of the

Indian retail sector will be reflected in rapid growth in sales of

supermarkets, departmental stores and hyper marts. Sales from these

large-format stores are to expand at growth rates ranging from 24% to

49% per year during 2003-2008, according to a latest report by Euro

monitor International, a leading provider of global consumer-market

intelligence.

A. T. Kearney Inc. places India 6th on a global retail development

index. The country has the highest per capita outlets in the world - 5.5


outlets per 1000 population. Around 7% of the population in India is

engaged in retailing, as compared to 20% in the USA.

The factors responsible for the development of the retail

sector in India can be broadly summarized as follows:

� Rising incomes and improvements in infrastructure are

enlarging consumer markets and accelerating the convergence of

consumer tastes.

� Looking at income classification, the National Council of Applied

Economic Research (NCAER) classified approximately 50% of

the Indian population as low income in 1994-95; this has

declined to 17.8% in 2006-07.

� Liberalization of the Indian economy which has led to the

opening up of the market for consumer goods has helped the

MNC brands like Kellogg, Unilever, Nestle, etc. to make

significant inroads into the vast consumer market by offering a

wide range of choices to the Indian consumers.

� Shift in consumer demand to foreign brands like McDonalds,

Sony, Panasonic, etc.

The internet revolution is making the Indian consumer more

accessible to the growing influences of domestic and foreign retail

chains. Reach of satellite T.V. channels is helping in creating

awareness about global products for local markets. About 47% of

India’s population is under the age of 25; and this will increase to 55%

by 2015. This young population, which is technology-savvy, watch

more than 50 TV satellite channels, and display the highest propensity

to spend, will immensely contribute to the growth of the retail sector

in the country. As India continues to get strongly integrated with the


world economy riding the waves of globalization, the retail sector is

bound to take big leaps in the years to come.

The Indian retail sector is estimated to have a market size of about $

180 billion; but the organized sector represents only 3% share of this

market. Most of the organized retailing in the countr y has just

started recently, and has been concentrated mainly in the metro cities.

India is the last large Asian economy to liberalize its retail sector. In

Thailand, more than 40% of all consumer goods are sold through the

super markets and departmental stores. A similar phenomenon has

swept through all other Asian countries. Organized retailing in India

has a huge scope because of the vast market and the growing

consciousness of the consumer about product quality and services.

A study conducted by Fitch, expects the organized retail industry to

continue to grow rapidly, especially through increased levels of

penetration in larger towns and metros and also as it begins to spread

to smaller cities and B class towns. Fuelling this growth is the growth

in development of the retail-specific properties and malls. According

to the estimates available with Fitch, close to 25mn sq. ft. of retail

space is being developed and will be available for occupation over the

next 36-48 months. Fitch expects organized retail to capture 15%-20%

market share by 2010.

A McKinsey report on India says organized retailing would increase

the efficiency and productivity of entire gamut of economic activities,

and would help in achieving higher GDP growth. At 6%, the share of

employment of retail in India is low, even when compared to Brazil

(14%), and Poland (12%).


Total Private Consumption Expenditure in India – 375 Billion USD

Retail Sale – 205 Billion USD

Organized Retail – 6.2 Billion USD (3%)

Retailing – 35% of GDP

RETAILING FORMATS IN INDIA

Malls:

The largest form of organized retailing today. Located mainly in

metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft

to 7,00,000 sq ft and above. They lend an ideal shopping experience

with an amalgamation of product, service and entertainment, all

under a common roof.Examples include Shoppers Stop, Piramyd,

Pantaloon.

Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai

books retailer Crossword, RPG's Music World and the Times Group's

music chain Planet M, are focusing on specific market segments and

have established themselves strongly in their sectors.

Discount Stores:

As the name suggests, discount stores or factory outlets, offer

discounts on the MRP through selling in bulk reaching economies of


scale or excess stock left over at the season. The product category can

range from a variety of perishable/ non perishable goods.

Department Stores:

Large stores ranging from 20000-50000 sq. ft, catering to a

variety of consumer needs. Further classified into localized

departments such as clothing, toys, home, groceries, etc.

Department Stores:

Departmental Stores are expected to take over the apparel

business from exclusive brand showrooms. Among these, the biggest

success is K Raheja's Shoppers Stop, which started in Mumbai and

now has more than seven large stores (over 30,000 sq. ft) across India

and even has its own in store brand for clothes called Stop!.

Hyper marts/Supermarkets:

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 & 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.

Convenience Stores:

These are relatively small stores 400-2,000 sq. feet located near

residential areas. They stock a limited range of high-turnover


convenience products and are usually open for extended periods

during the day, seven days a week. Prices are slightly higher due to the

convenience premium.

MBO’s:

Multi Brand outlets, also known as Category Killers, offer several

brands across a single product category. These usually do well in busy

market places and Metros.

RELIANCE GROUP

Founder Chairman of Reliance Group

"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

Shri Dhirubhai Ambani was an exceptional human being and an

outstanding leader. He dared to dream on a scale unimaginable before


in Indian industry. His life and achievements prove that backed by

confidence, courage and conviction, man can achieve the impossible.

From a humble beginning, he went on to create an enviable business

empire within a span of just 25 years. The US$ 54 billion Reliance

Group is a living testimony to his indomitable will, single-minded

dedication and an unrelenting commitment to his goals.

The Group's track record of consistent growth is unparalleled in

Indian industry and perhaps internationally too. Today, the Group's

turnover represents nearly 3 percent of India's GDP.

The corporate philosophy he followed was short, simple and succinct -

"Think big. Think differently. Think fast. Think ahead. Aim for the

best". He inspired the Reliance team to do better than the best - not

only in India but in the world. He was probably the first Indian

businessman to recognize the strategic significance of investors and

discover the vast untapped potential of the capital markets and

channelise it for the growth and development of industry. He was

supremely confident that finance would never be a constraint in

executing his projects because, as he said proudly, Indian investors

would provide him with the necessary resources. For him, his people

were his most important asset.

He scouted around for the best and most talented professionals,

nurtured them and continuously propelled them to aim for still higher

goals. These highly motivated people comprise the core of what he

named: "The Reliance Family".

Shri Dhirubhai Ambani visualized the growth of Reliance as an

integral part of his grand vision for India. He was convinced that India

could become an economic superpower within a short period of time

and wanted Reliance to play an important role in realizing this goal.


The Bhagavad Gita states, "The actions of a great man are an

inspiration for others. Whatever he does, becomes a standard for

others to follow." This certainly applies to Shri Dhirubhai Ambani.

The Reliance Group 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 22 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, fiber 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, fiber

intermediates, plastics and chemicals), textiles and retail.

Reliance enjoys global leadership in its businesses, being the largest

polyester yarn and fiber producer in the world and among the top five

to ten producers in the world in major petrochemical products.

The Group exports products in excess of USD 7 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), Indian Petrochemicals

Corporation Limited and Reliance Industrial Infrastructure Limited.


Mr. Mukesh Ambani

Chairman & Managing Director

Mr. Mukesh D. Ambani, age 49, is a Chemical Engineer from the

University of Bombay and pursued MBA from Stanford University,

USA. He is the son of Mr. Dhirubhai H. Ambani, Founder Chairman of

the Company

Mukesh Ambani is the chairman, managing director and the largest

shareholder of Reliance Industries, India's largest private sector

company and a Fortune 500 Company. His personal stake in Reliance

Industries is 48%. His wealth is US$ 20.1 billion as of March 2007,

making him the world's 14th richest person and the second richest

person in India. Mukesh and younger brother Anil are sons of the late

founder of Reliance Industries.

Mukesh Ambani joined Reliance in 1981 and initiated Reliance's

backward integration from textiles into polyester fibres and further

into petrochemicals. In this process, he directed the creation of 60

new, world-class manufacturing facilities involving diverse

technologies that have raised Reliance's manufacturing capacities

from less than a million tonnes to twelve million tonnes per year.


Mukesh Ambani is also steering Reliance's initiatives in a world scale,

offshore, deep water oil and gas exploration and production program,

a pan-India petroleum retail network involving 5,800 outlets and a

research-led life sciences initiative covering medical, plant and

industrial biotechnology.

Mr. Mukesh D. Ambani joined Reliance in 1981 and initiated

Reliance's backward integration from textiles into polyester fibers and

further into petrochemicals. In this process, he directed the creation of

several new and large world-class manufacturing facilities involving

diverse technologies that have raised Reliance's petrochemicals

manufacturing capacities from less than a million tones to over

thirteen million tones per year. He directed and led the creation of the

world's largest grassroots petroleum refinery at Jamnagar, India, with

a present capacity of 660,000 barrels per day (33 million tones per

year) integrated with petrochemicals, power generation and port and

related infrastructure. He had set up the Reliance's communications

technology initiative that is the largest and most complex information

and communications technology initiative in the world.

Mr. Ambani is steering Reliance's initiatives in a world scale, offshore

and onshore oil and gas exploration and production program, creation

of a pan-India petroleum retail network and setting up of a new export

oriented refinery through RIL's subsidiary Reliance Petroleum

Limited (RPL) with a capacity of approximately 580,000 barrels per

stream day integrated with a 0.9 MMTPA polypropylene plant.

Mr. Ambani's Achievements include:

Conferred 'ET Business Leader of the Year' Award by The Economic

Times (India) in the year 2006.


Had the distinction and honor of being the co-chair at the World

Economic Forum Annual Meeting 2006 in Davos, Switzerland.

Ranked 42nd among the 'World's Most Respected Business Leaders'

and second among the four Indian CEOs featured in a survey

conducted by Pricewaterhouse Coopers and published in Financial

Times, London, November 2004.

Conferred the World Communication Award for the 'Most Influential

Person in Telecommunications in 2004' by Total Telecom, October

2004.

Chosen 'Telecom Man of the Year 2004' by Voice and Data magazine,

September 2004.

Ranked 13th in Asia's Power 25 list of 'The Most Powerful People in

Business' published by Fortune magazine, August 2004. 30 Growth is

Life

Conferred the 'Asia Society Leadership Award' by the Asia Society,

Washington D.C., USA, May 2004.

Ranked No.1 for the second consecutive year, in The Power List 2004

published by India Today, March 2004.

Mr. Mukesh D. Ambani is the Chairman of Indian Petrochemicals

Corporation Limited, Reliance Petroleum Limited and Reliance Retail

Limited. He is member of the Shareholders'/ Investors' Grievance

Committee of the Company.

Major Subsidiaries & Associates:-

The Reliance Industries Limited is the flagship company of Reliance

Group which has ownership interest in the following subsidiaries &

associates


Major Subsidiaries

Reliance Petroleum Limited

Reliance Netherlands BV (including Trevira)

Reliance Retail Limited

Ranger Farms Private Limited

Retail Concepts and Services Private Limited

Reliance Retail Insurance Broking Limited

Reliance Dairy Foods Limited

Reliance Retail Finance Limited

RESQ Limited

Reliance digital Retail Limited

Reliance Service Solutions Limited

Reliance Jamnagar Infrastructure Limited

Reliance Haryana SEZ Limited

Reliance Industrial Investment & Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments Limited

Reliance Exploration & Production - DMCC

Reliance Industries (Middle East) DMCC

Reliance Global Management Services (P) Limited

Reliance Commercial Associates Private Limited

RIL (Australia) Pty Limited

Major Associates

Indian Petrochemicals Corporation Limited

Reliance Industrial Infrastructure Limited

RELIANCE RETAIL LIMITED


Growth through Value Creation

Reliance is gearing up to revolutionize the retailing industry in India.

Towards this end, they are aggressively working on introducing a pan-

India network of retail outlets in multiple formats. A world class

shopping environment, state of art technology, a seamless supply

chain infrastructure, a host of unique value-added services and above

all, unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and

spread and make India proud. Ensuring better returns to Indian

farmers and manufacturers and greater value for the Indian consumer,

both in quality and quantity, will be an integral feature of this project.

By creating value at all levels they will actively endeavor to contribute

to India's growth.

The project will boast of a seamless supply chain infrastructure,

unprecedented even by world standards. Through multiple formats

and a wide range of categories, Reliance is aiming to touch almost

every Indian customer and supplier.

The magnitude and strategy of RIL's retail foray is sure to have far

reaching social and economic implications by directly influencing the

lifestyles of hundreds of millions of consumers, besides indirectly

impacting the livelihood of tens of millions. This indirect impact will

be on those engaged in a wide range of economic activities including

farming, consumer goods manufacturing, and a host of myriad other

services that bring hundreds of categories of goods and services from

the producers to the final consumers.

Business analysts feel that Mukesh Ambani's advantage is his huge

financial strength coupled with a track record of implementing mega


projects in record time, at globally competitive capital costs. Mukesh

Ambani has learned to dream big from his great visionary father, the

late Dhirubhai H Ambani, who is acknowledged as one of India's

tallest, most ambitious and successful business leaders for his sharp

business acumen and skilled people management ability. If the

announced retail project is any indication, Mukesh Ambani has indeed

inherited all these skills from his father. Re-writing the rules of

business has been the forte of Dhirubhai and Mukesh is attempting

the same in retail.

Quite clearly, RIL is now all set and ready to conquer the organized

retail domain. The Indian retail scene is now going to witness some

real fast-paced action, with the consumer – as always – having the

best deal.

So, as they say, let the action begin!

Reliance Digital

Mukesh Ambani's Reliance Industries Ltd launched a second group of

retail stores called RELIANCE DIGITAL which will sell consumer

electronics and other household appliances. Reliance Digital Store has

been launched five months after the company first introduced its fresh

food format outlets, Reliance Fresh, that stock its own label of

groceries under the brand, Reliance Staple.

The first of the stores was unveiled at the Shipra Mall at Indirapuram

in Ghaziabad on the outskirts of the national capital

New Delhi April 24 Reliance Retail Ltd, the mega retail venture from

the Mukesh Ambani stable, marked its foray into speciality retail with


the launch of its first consumer durable outlet, Reliance Digital, in the

NCR region.

Reliance is planning to open a total of 150 Reliance Digital stores

across 70 cities with investment of Rs 1,000 crore over the next three

to four years

One-stop shops

The stores size approx 15,000-30,000 sq. ft, will function as one-stop

shops for all technological solutions in the consume durables and IT

telecommunications segment to cater to the tastes and requirement of

customers.

Reliance Digital stores would sell everything from TV sets, home

theatres, refrigerators, cooking ranges, dishwashers to computers and

mobile phones from across brands. Each store would be set up at an

investment of Rs4 to Rs7 crore and also provide after-sales services

On private labels, RELIANCE DIGITAL has on offer of more than

4,000 products from over 150 brands. As part of their overall business

strategy they will have their own consumer durable private labels, but

not immediately. With its own labels in the consumer durables

segment, Reliance Retail will be fighting for a share of the $5.6-billion

domestic market, which is dominated by South Korean brands LG and

Samsung and Japan's Sony.

The domestic consumer electronics market is growing by 10 per cent

annually and is split between imported South Korean brands such LG

and Samsung and Japan’s Sony on the one hand and Indian market

leaders like Videocon and BPL


The prices being offered at the Reliance Digital stores will be most

competitive and if any consumer finds a cheaper product in the market

within 30 days they will not hesitate to match the offer.

Besides, the stores will also provide pre- and post sales services

through its in-house RelianceresQ vertical.

The stores will also offer finance schemes for consumers for which the

retail majors are in talks for tie-ups with several financial institutions,

Citi Financial being one of them.

Reliance Digital will also be offering customers Reliance One, a

common membership and loyalty Programme across all its formats,

which means users, would be able to redeem points earned on

purchases. Other formats of Reliance Retail such as supermarkets and

hypermarkets are soon to launch.

Reliance Industries had last year announced an investment of Rs

25,000 crore for the retail business, which it hopes would help the

company earn around Rs 100,000 crore revenues in the next five

years, 10-15 per cent of which will be contributed through retailing of

consumer durables at its Reliance Digital stores and hypermarkets.

Industry estimates suggest India's retail market is worth $320 billion,

of which organized retail accounts for $7.5 billion and expected to

grow to $21.5 billion by 2010.

Reliance Fresh

Reliance Industries launched its first retail format called Reliance

Fresh in Hyderabad. Spread over 2,000-5,000 sq ft, 11 such Reliance

Fresh neighborhood convenience stores were come up in the city.


These stores sell fresh fruit and vegetables besides staples (dal, atta,

rice) as well the company’s in-house brand Reliance Select and

Reliance Value.

Reliance is gearing up to revolutionize the retailing industry in India.

Towards this end, we are aggressively working on introducing a pan-

India network of retail outlets in multiple formats. A world class

shopping environment, state of art technology, a seamless supply

chain infrastructure, a host of unique value-added services and above

all, unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and

spread and make India proud. Ensuring better returns to Indian

farmers and manufacturers and greater value for the Indian consumer,

both in quality and quantity, will be an integral feature of this project.

By creating value at all levels, we will actively endeavor to contribute

to India's growth.

The project will boast of a seamless supply chain infrastructure,

unprecedented even by world standards. Through multiple formats

and a wide range of categories, Reliance is aiming to touch almost

every Indian customer and supplier.

The Fresh stores at Hyderabad are part of a pilot project, which will

help company understand customer needs. The pilot for this format

will be taken to many other cities over the next few months. Next on

the company’s list are bigger cities including Delhi and Mumbai

RIL intends to invest close to Rs 25,000 crore over the next five years

in the retail business. The company plans to establish 4,000 retail

outlets across various formats by then, and is eyeing sales of Rs

1,00,000 crore over the 5-year period from the retail business.


Besides Reliance Fresh, the company also plans to launch larger

format stores called “Feel Fresh Plus” which will be spread over

10,000-15,000 sq ft. The Fresh Plus stores will stock fruit and

vegetables as well as apparel, consumer electronics, FMCG items and

even medicines. From Hyderabad, these stores will travel to Mumbai

and Delhi where Reliance has identified up to 80 locations each.

But even as the retail debut kicks off with fruit and vegetables, it seems

the company is doing a rethink on whether to get into the larger

formats such as hypermarkets and supermarkets. These two formats

require over 1 lakh sq ft of space and may not come up at prime city

locations. Instead, Reliance is contemplating tapping alterative sites

such as the SEZs for opening hypermarket

The strategy is to open one Reliance Fresh store in a radius of three to

four km to serve 1,000-2,000 families. This means about 30-40 stores

in the major metros. Reliance Fresh is selling vegetables and fruits

sourced from farmers through the company’s agri hubs.

Reliance Fresh would carry fresh fruits and vegetables, staples, top-up

grocery, non-food items and dairy products and a whole lot of other

categories at very competitive prices. All the stores opened have an

average area of about 1,800 sq ft and an average of about 20 sales

associates attending to customers in each store open from 8 a.m. to 10

p.m. on all seven days of the week.

A targeted sales turnover of Rs 90,000 crore (US$ 20 billion) by 2010

with a planned investment of Rs 30,000 crore over the next five years

– that's the retail vision of Mukesh Ambani and his RIL retail team.

RIL's retail venture seems all set to achieve the status of being the flag-

bearer of India Retail Inc, and that too in record time!


Culling information from all possible sources, Images F&R Research

attempts to put the Reliance Retail jigsaw in order and see how the

concept and strategy differentiates from the existing competition, how

it impacts the intermediaries and consumers, and more interestingly,

how will it stand up to the real competition from global retail

powerhouses like Wal-Mart, Carrefour, Target, Metro, Sears and Tesco

that are eager to enter the Indian retail arena once the FDI barrier is

lifted. Read on for the full story…

It's been in the news for quite some time now. Earlier, about a year

ago, it was only whispered in close industry circles. Slowly the

whispers become louder, and the word gained ground that India's

largest private sector company, Reliance Industries Limited (RIL), is

entering the Indian retail sector in a real big way.

But with virtually nothing coming from anyone in the know inside RIL

about their retail plans, this has to be one of the most closely guarded

secrets of India's corporate story.

Amidst all sorts of speculations in the media circles about RIL's

intended retail foray, the word finally came out on January 23, 2006,

when the Mukesh Ambani-controlled Reliance Industries Limited

presented the mega retail initiative plans to its board of directors who

subsequently gave their consent to pursue the retail business through

a wholly-owned subsidiary of the company – likely to be christened

Reliance Retail Limited.

The Reliance Retail blueprint envisages nation-wide chains of

hypermarkets, supermarkets, discount stores, department stores,

convenience stores and specialty stores, in about 800-odd cities and

towns across the length and breadth of India. The RIL board of


directors approved the initial phase of the retail foray at an estimated

cost of Rs 3,350 crore (US$ 750 million).

That was big news for both the national and international media,

which went all agog again with intense speculation. Giving full respect

to the importance of this announcement, more than one leading

international daily – chiefly, The Financial Times – gave this news a

front-page treatment, speculating (like many others) that this

investment could just be an initial tranche of a much larger

commitment from Reliance Industries towards the retail project.

Just how big and grand this investment is for the Indian retail sector

can be gauged by the simple fact that the entire Indian retail sector is

estimated to be at Rs 1050,000 crore (US$ 233 billion) – growing at

five per cent annually – and the estimated share of organised retail is

only Rs 36,000 crore (US$ 8 billion), at present, albeit growing at over

30 per cent every year.

That makes Reliance Retail's proposed investments equivalent to

about 10 per cent of India's organised retail market – such a level of

investment in the Indian retail arena has been unprecedented in the

country's most promising sunrise industry – retail.

So much so, projections by the Images-KSA India Retail Report 2005

of an organised retail market of Rs 100,000 crore (US$ 22 billion) by

2010 now appears conservative, likely to be achieved much earlier

than 2010.

If Indian retail was lacking a whole-hearted and full-blooded thrust

from a big and large corporate house (apart from the lukewarm

investments made by the Tatas and ITC), it is now all set to change.

Mukesh Ambani, who has been nourishing retail ambitions for quite


some time now, has clearly positioned himself in to the role of

redefining the entire landscape of Indian retail.

RIL Set To Become World's Largest Real Estate Property Owner

What is even more interesting is that Reliance Industries Limited will

far out-surpass the Catholic Church in becoming the world's largest

owner of real-estate property by virtue of its mega Retail and Satellite

Township plans, in the next two to three years!

Now what exactly does this mega retail plan portend for the Indian

retail sector? In fact, what exactly are RIL's plans, in terms of retail

strategy? How will RIL differentiate its stores and concept from

existing players who have already moved into the retail space earlier,

and have already established a good foothold? How will this impact

the existing retail majors – the likes of Pantaloon Retail, Trent India,

Shoppers' Stop, RPG, etc? How will the consumer benefit from RIL's

venture and how will intermediaries like traders, suppliers and

farmers all along the supply chain network benefit? What will be the

USP of Reliance Retail?

And, more significantly, how will this impact the major international

retailers who plan to enter the Indian retail market? Reliance Retail is

in fact giving India for the first time a real feel of the scale at which

these global retail powerhouses actually operate, it is preparing India

to stand up to the ensuing competition and in the process, allow

consumers the full benefits of modern retail.

Retail Will Become Core Business of RIL

Reliance Industries Limited is the largest and one of the fastest

growing private sector companies in India, with business activities

encompassing almost all major growth sectors of the Indian economy.


The company manufactures and markets a wide range of products

with market leadership in almost all its businesses.

All of Reliance Group production and services ventures have one

common feature – global scale operations employing state-of-the-art

technology in all fields. The company is truly emerging as a well

diversified conglomerate with global competence in technology,

management and financial capabilities to meet the needs of a rapidly

growing Indian market.

With domestic market shares ranging from 40-80 per cent, RIL is also

ranked among the top 10 producers globally, for all its major product

segments. It is one of India's largest business conglomerates with total

revenues of Rs 1,00,650 crore (US$ 22.6 billion).

It is being speculated within the industry that the ROIs made by RIL

in the retail space will far out-shadow its existing core flagship

businesses – and very soon retail will become the core business for the

Mukesh Ambani-controlled Reliance empire.

Future Planning:-

Company plans to have a pan-India presence by opening stores in 784

cities and 600 small towns and achieve a target of Rs.10 billion

revenue by 2010 by which time it hopes to complete Phase 1. In the

first phase company plans to employ 500,000 people. It is following

an all-inclusive model giving the right affordability across all income

groups. Company is aggressively partnering farmers by following a

farm-to-fork strategy in its supply chain management model and

ensures that it delivers fresh fruits and vegetables at affordable prices


to consumers. Currently, Reliance Fresh has over 100 stores across the

country.

Reliance Fresh also offers a membership and loyalty programme -

Reliance One - to deliver customized benefits to frequent shoppers.

Currently, it has 200,000 loyalty customers across Hyderabad, Jaipur

and Chennai.

Reliance Retail, the 100% subsidiary of Reliance Industries, on

October 28 unveiled Reliance Fresh, the first of its multi-format retail

foray involving an investment of Rs 25,000 crore.

Reliance Fresh is the company’s brand for neighborhood fresh-food

outlets. It will also sell kitchen equipment and other edibles.

Besides, it has planned hypermarkets, supermarkets, discount stores,

department stores, convenience stores and specialty stores, to be

unveiled shortly.

The Reliance Fresh supermarket chain is RIL’s Rs 25,000 crore

venture and it plans to add more stores across different geographies,

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.

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.

Point of Sale Software System


Retalix StoreLine is an open-standards, fully integrated and cross-

functional Point of Sale (POS) and store management software system.

Its uniqueness is in the functionality, world-wide install base, and

hardware independence.

Multi-Concept Functionality that delivers a fully integrated POS

solution to meet all of your business needs

Open by Design supports industry standards and is hardware

independent plus integration with other third-party retail applications

is straightforward, affordable and low risk

Advanced Promotion Features enable a single point of update for

pricing and promotions across all retail formats

Graphical, Easy to Use flexible intuitive user interface, touch-screen

capabilities and even graphical customer screens, means that cashier

training is minimal and customer interaction is effortless

Quick Service Deli, provides a powerful method of managing fresh-

made sandwiches and deli items

Fuel provides full support for operating an onsite fuel station,

supporting a full range of fuel station and supermarket services

Retalix BackOffice is tightly integrated with Retalix StoreLine, and

offers POS item management and reporting, DSD receiving, label and

sign printing, handheld RF communications, host communications

and in-store ordering

Retalix PocketOffice is a mobile platform that enables users to manage

store operations anywhere in the store, taking the application to the

business decision point, while on the sales floor or receiving dock.

Retalix StoreLine is installed in more than 250,000 POS terminals

worldwide, and is the selected POS solution of top-tier retailers such


as Tesco, Publix, Sainsbury's, Woolworths Australia, Delhaize Group,

Hy-Vee, and the A.S. Watson Group.

Supply Chain Management

A supply chain is a network of facilities and distribution options that

performs the functions of procurement of materials, transformation of

these materials into intermediate and finished products, and the

distribution of these finished products to customers. Supply chains

exist in both service and manufacturing organizations, although the

complexity of the chain may vary greatly from industry to industry and

firm to firm.

From the above pictorial representation of supply chain management

of reliance fresh it is clear that raw material is procured from vendors,

transformed into finished goods in a single step, and then transported

to distribution centers, and ultimately, customers. Realistic supply

chains have multiple end products with shared components, facilities

and capacities. The flow of materials is not always along an arbores

Farmers Collection center

Distribution center Reliance Fresh


cent network, various modes of transportation may be considered, and

the bill of materials for the end items may be both deep and large.

CHAPTER -3

WORK DONEWORK DONEWORK DONEWORK DONE


PROJECT INTRODUCTION

The project was undertaken as a part of summer training in MFT

Department in Reliance Retail for 90 days. The project was done at

Reliance Fresh convenience store of Reliance Retail situated at

Bhawani singh marg, and Jaipur.

Other stores were also visited to understand the operations of an

organized retail store. The stores are at following locations:

Vaishali nagar store

Vidhyadhar Nagar

Khirni phatak store

Khatipura store

Kings road store


New Sanganer road

Malviya Nagar

This project is all about to increase the Loyalty Sales Percentage

of the individual stores.

What is Loyalty?

The degree to which customers are predisposed to stay with one

company and resist competitive offers.

Six Ways in Building Customer Loyalty

1. SERVICE NETWORK

The mantra for marketing professionals is service, service and more

service! That’s right! One of the best ways of ensuring your customers

keep coming back to you is providing impeccable service. This includes

everything from service at the point of sale to after-sales service, which

builds a lasting relationship with the customer. Most manufacturers of

white goods understand relationship marketing like no one else. The

peculiarity lies in the product itself, where it might need to be serviced

long after it is bought. Moreover, the purchase might have taken place

somewhere different from where the service is required. Companies

like Eureka Forbes and Whirlpool pride themselves on superb

customer service satisfaction levels. They manufacture a wide range of

durables which can be serviced at various locations throughout the


country. Remember, the customer is smart. He will judge your

company even on small things like whether the salesperson reached in

time. If he is late, the customer will never trust any claims of “zero

error” quality made by you. So, watch out for service, the buzzword of

the industry.

2. QUALITY CONTROL

“You never get a second chance to make a first impression” was the

tagline for ‘Head and Shoulders’ shampoo years ago. Impeccable

service too cannot save you if you do not deliver a good quality product

each and every time. This is true especially for restaurants, where the

food served has to be of the same quality time and again to keep

customers coming back to you. Here, quality is conveyed via word-of-

mouth. One bad experience is enough to ruin the impression forever.

Another good way of assuring customers value the quality of your

product is to get an outside agency or someone else to endorse the

results. For instance, Colgate Toothpaste continually reminds the

customer that it is endorsed by IDA, the Indian Dental Association and

it is the brand trusted by most dentists. HLL gets customers to talk

about their “Pond’s Age Miracle” range of cosmetics and Dove soaps in

their television ads, to endorse the quality of their products. That is

also the psyche behind prompting a customer to try out the product. If

a Vim Bar is a good dishwashing bar for Mrs X, a housewife, it has to

be good for you too! If others say that your product is good, it’s gotta

be good!

3. CONSTANT INNOVATION


“Once a customer, always a customer”, is no longer true in these days

of fluctuating brand usage. Customers now have more choices than

before and are more willing to try out new brands. This fickle-minded

buying warrants a constant focus on the changing mindset of the

customer. The brand too has to change with customer tastes. Nestle

India does it best with its brand of Maggi food products. They now

have variants for their instant noodles like ‘Dal Atta Noodles’ and ‘Rice

Noodle Mania’. Their competitors in the food segment, HLL

(Hindustan Lever Limited, now called Hindustan Unilever Limited)

tickled the Indian palate by making multiple variants of the traditional

Tomato Ketchup in flavors like mint, tamarind and chilli. Amul, which

has a strong presence in the ice-cream segment, sensed the need to

keep the health-conscious customer in its kitty by adding the new

Probiotic range of sugar free ice-creams! Kellogg’s Chocos are now

available in a new flavour – Chocos Toffee to keep the children happy

and dedicated! Innovation is the name of the game and timing is

everything!

4. DIVERSIFICATION INTO SIMILAR PRODUCT LINES

If a customer feels that Dove Soap is the best for her skin, why not

make her think the same way about shampoos as well? That’s exactly

why the brand name has now been extended to shampoos in the

Indian market. Stretch the loyalty and benefits associated with a brand

to include other similar products.

Lotus Herbals, for instance, makes chemical-free skincare products

like creams, lotions and sunscreens. It has a strong base of happy

customers because of its USP - ‘herbal ingredients’. Now, it has also

launched its ‘herbal’ range of cosmetics on the shelves. So the same


customers have a choice of using herbal preparations for their lipsticks

and eye shadows as well. Chances are, they will be only too eager to try

them out! Even when it comes to food products, brand loyalties can be

stretched further. Knorr Soups, manufactured by HLL, extended their

“instant soup powder” mixes to include “instant make-a-meal”

powders for Chinese recipes. They now offer instant Chinese

Manchurian, Hot & Sour, Chilli and other preparations for a quick

meal at home. Amul too capitalized on its distribution network to

deliver different products to its customers. They started from milk and

now provide butter, ghee, cheese and even ice-creams.

5. STRONG DISTRIBUTION CHAINS

If I want to buy a product, it must simply be available. For fast moving

consumer items, it means availability at the nearest grocer. From

personal experience, I can tell you how important this is. I like Nestle’s

Munch chocolate a lot, but many a time I end up coming home with a

Cadbury’s Perk in hand, due to unavailability of the other brand. Perk

tastes just as good, and pretty soon I ended up asking for Perk at the

local grocery shop instead of Munch. This shows how just availability

or lack of it can affect the customer’s brand choices forever. For a long

period Amul faced a similar problem with its products. Originating

from Gujarat, the availability of its products was restricted to the

home state and a few neighboring ones. Consciously, after a lot of

effort Amul successfully expanded its distribution chains throughout


the country. An effective media campaign helped pass this advantage

on to the customers. If you want people to keep buying your brands,

make sure the grocery store around the corner stocks it.

6. REINFORCE THE DECISION

Lastly, after people have tried your product, tell them that they have

made the right decision. What better example to give you than the

Pepsi ad which said, “Yehi hee hai right choice baby, aha!” You will

have customers hanging on to you forever. The human mind looks for

signals to reinforce the decision made by it, to tell itself that yes, you

were correct! It’s no wonder then that the L’Oreal ad shows Aishwarya

Rai spouting the phrase “Because you’re worth it!

Customer loyalty towards your brand can give you the advantage of

decreased cost of advertising. You can also increase the price of your

brand to capitalize on the same. So, go ahead and take the plunge into

the world of brand loyalty!

Benefits

•Customer loyalty towards your brand can give you the advantage of

decreased cost of advertising.

•You can also increase the price of your brand to capitalize on the

same.

Loyalty Sales % = Sales through the Loyalty Card X 100

Total Sales

Customer Loyalty programs need to stay fresh, be easy to administer,

and tightly integrate with the central price file and all the customer

touch points. Successful Loyalty programs pinpoint value to a specific


group of consumers. The continuous change in programs keeps

consumers engaged and avoids the attitude of entitlement.

The Retalix customer loyalty application suite, however, is not your

run-of-the-mill solution. It is comprehensive, easy to administer, and

effective.

Retalix Loyalty is a real time, online, centralized system that manages

the Loyalty and Promotional marketing campaigns for Grocery and

Convenience Store Retailers.

Coupled with the Retalix 1-to-1 Targeted Marketing Analysis tool, a

retailer can easily reward customers according to their specific taste

and loyalty level via a multitude of reward programs to keep it fresh

and fun. Moreover, through a tight integration with the Pricebook,

POS and Fuel Pumps, electronic rewards can be fulfilled for the

consumer right at their purchase location.

Retalix Loyalty includes:

� Integrated POS and Pump interface to collect data, print Loyalty

program information on the receipt, display messages to the

cashier and customer, discount items, and redeem e-gift

certificates, tender credits, and loyalty points

� Net-based online communications architecture

� Multiple set of basic programs (Charity, Continuity,

Sweepstakes, e-Coupons, Points)

� Tiered pricing rewards (electronic discounts) including fuel,

according to loyalty levels

� Reports to measure loyalty not only by gross spending but also

by gross profit


� Reports to measure program participation by store and chain

� Net-based Centralized Management System

� Retalix 1-to-1, Targeted Marketing

Why the card is not being used?

� Customer forgets their card.

� Customer doesn’t know the benefits of card.

� Quality of temporary card is very poor.

� Cashier forgets to ask about the card.

� Many unwanted details are to be filled in form by customer.

Target given to us is to increase the loyalty sales up to 75% from 53%

within the period 2 months

79 76.68.65.60.4 59.6 56.53.4 Loyalt

VIII VII VI V IV III II I Weeks

0

10

20

30

40

50

60

70

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90

I II III IV V VI VII VIII

Loyalty Sales %


There was a questioner, which was filled by me from the customer to

know the feedback of the customer about the “Cut Fruits &

Vegetables” which was put in the chiller section of the store.

The format of questioner is as follows:

QUESTIONNAIRE

Name:

_______________________________________________

1. Quality of Fruits & Vegetables Of Reliance Fresh

a. Excellent b. Good c. Average d. Poor

2. If the answer of question no. 1 is C or D then name the Fruits &

Vegetables which is not satisfying you.

________________________________________________

______________________________________________

3. Are you getting all the products, which you want?

a. Yes b. Almost c. No

4. If the answer of question no. 2 is B or C then name the products

which is not satisfying you

a. Fruits & Vegetables b. Processed Foods c. F.M.C.G.

d. Dairy e. Bakery

5. Whether we are fulfilling your requirement timely.

a. Always b. Not Every time c. No


6. If the answer of question no. 6 is B or C then why you are not getting

the product at right time.

a. Not available in the store b. Bad quality c. Price d. Any

other

7. Are you consuming our packed Fruits & Vegetable?

a. Regular b. Not regular c. No

8. If the answer of question no. 7 is C then why you are not buying.

a. Quality b. Price c. Not Attractive

9. If in future Reliance Fresh gives you more cut Fruits & Vegetables

then you will purchase it.

a. Yes b. Not sure c. No

10. If the answer of question no. 9 is A or B then at which price you

will like to buy 250 grams of food

a. 10-15 b. 15-20 c. 20-25

Findings of the questionnaire

Quality of Fruits & Vegetables Of Reliance Fresh


20%

40%

30%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Excellent Good Average Poor


Are you getting all the products, which you want?

35%

55%

10%

0%

10%

20%

30%

40%

50%

60%

Yes Almost No


Are you consuming our packed Fruits & Vegetable?

5%

15%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Regular Not Regular No


Why you are not buying cut F & V?

The result of the survey is that, any of the customers no like

to buy cut F & V from Reliance Fresh. Major reasons for this

are Quality, Indian Culture & Price.

RELIANCEONE MEMBERSHIP CARD

88%

5% 7%

0%10%20%30%40%50%60%70%80%90%

100%

Qua

lity

Price

Not Attractiv

e


This is a card which was given to the customer at free of cost. This card

helps to increase the loyalty sales percentage of the store. Benefits of

this card are:

Customer will get 1% point of his purchasing amount added to his\her

membership card.

When these points will become 25, it means that 25 points is

equivalent to 25/-. He\she will be able to redeem his\her points & get

a discount of 25/-

With this card customer will get “Accidental Death Insurance” of

50000/- by default.

If customer will recharge their Hutch, Reliance, Airtel & Idea mobile

from CSD then also 15 point of the amount he recharge will be added

to his card.

In starting customer will get temporary card, which is valid for 180

days. Within 180 days customer will get permanent card, which is look

like plastic card at postal address given by the customer in the form for

issuing of RelianceOne Membership Card. Conditions for eligibility of

permanent card are as follows:

Customers have to do a purchasing of 1500/- with the help of card

within 3 months from the issuing date OR he have to scan his card at

least 10 times.

If above criteria is not fulfill then in next 2 months customers have to

do a purchasing of 600/- with the help of card OR he have to scan his

card at least 6 times.


CUSTOMER INFORMATION CHANGE REQUEST

If customer wants to change his Postal address, Telephone Number or

Email ID then customer have to fill the “Customer Information

Change request”.

Process to be followed for change of Customer Information

Take a printout of the Customer Information Change Request form.

The customer has fill up all the required details mentioning his

Reliance One Membership card number. The customer has to sign the

request form and hand it over to the MSR. The MSR checks for the

following on the form

Reliance One membership number

First Name

Last Name

Information regarding change request

Date

Customer Signature

The MSR then fills up the information in the “FOR OFFICE USE”

space. The format for request ID is store code- date in DDMYY- serial

number stating from 0001. The MSR fills up the MSR code and signs

in the space provided. This entire request should be filled separately

and kept at the store under lock and key. Once the system for making

these changes is live, all these forms have to be sent to the data entry

center for the processing. The data for dispatch will be notified later.

The format of Customer Change Request Form is:

Customer Information Change request

Please incorporate the following changes in my RelianceOne

membership details


(Please tick the appropriate box)

The format of Customer Change Request Form is:

Customer Information Change request

Please incorporate the following changes in my RelianceOne membership details (Please tick the appropriate box)

Reliance One Membership No. First Name Last Name

I have moved to a new house. Please send all communication to my new address given below

Address Line 1* Address Line 2 Landmark City\ Taluka* Pincode*

My Phone Number has changed

Std Code Phone (Res) Mobile Std Code Phone (Off)

I have a new email address

Email Date D D M M Y Y Y Y Signature

FOR OFFICE USE ONLY

Store Code Request ID: CIC - D D M M Y Y - Store code Date Serial No MSR Code MSR Signature


Replacement Card Request

If the card of the customer is damaged or lost then he has to fill a

“Application Form for Request for Replacement Card”.

Process to be followed for Request for Replacement Card

1. Take a printout of the Application form for request for

Replacement Card.

2. The customer has fill up all the required details mentioning his

RelianceOne Membership card number, first name and last

name.

3. The MSR has to handover the new temporary card to the

customer and fill up the new card number in the space provided.

The MSR has to destroy the corresponding application form by

tearing it.

4. The customer has to sign the request form and hand it over to

the MSR.

5. The MSR checks for the following on the form

a. RelianceOne membership number

b. First Name

c. Last Name

d. If the card is damaged, the MSR has to collect the damaged

card and tick the appropriate option on the application

form. If the card is lost, then the appropriate option is

ticked.

e. Date

f. Customer Signature


6. The MSR has to inform the customer that he\she will not be able

to earn points using the old card since it will be deactivated.

7. The MSR should inform the customer that he\she would be able

to use the new card with immediate effect. However, the

customer can start redeeming only after a period of 21 working

days, which are required for processing the replacement request.

8. The MSR then fills up the information in the “FOR OFFICE

USE” space.

9. The format for request ID is store code- date in DDMYY- serial

number stating from 0001.

10. The MSR fills up the MSR code and signs in the space

provided.

11. All these damaged cards and application for replacement cards

should be filled separately and kept at store under lock and key.

12. Once the system for making these changes is live, all these forms

have to be sent to the data entry center for the processing. The

data for dispatch will be notified later.

The format of Application Form for Request for Replacement Card is:

Application Form for Request for Replacement Card

Reliance One Membership No. First Name Last Name This is to inform you that my Reliance One membership card is lost/ damaged. I have been issued a replacement card with card number


I request you to deactivate my old card and transfer all the points to my new card number mentioned above. I understand that I would not earn any points on usage of my old card. I declare that I have surrendered the damaged card at the customer service desk I declare that I will destroy the lost card if found. Date D D M M Y Y Y Y Signature

FOR OFFICE USE ONLY Store Code Request ID: RRC - D D M M Y Y - Store code Date Serial No MSR Code MSR Signature


UNDERSTANDING PLANOGRAM

A planogram is a diagram of fixtures and products that illustrates how

and where retail products should be displayed, usually on a store shelf

in order to increase customer purchases. It is an arrangement of

different products in the most appropriate order with optimum

utilization of available space. It also shows the exact quantity of each

product in the store as well as its position on a particular bay & shelf.

They may also be referred to as plannograms, plano's, plano-grams,

plan-o-grams, schematics (archaic) or POGs. A planogram is often

received before a product reaches a store, and is useful when a retailer

wants multiple store displays to have the same look and feel. Often a

consumer packaged goods manufacturer will release a new suggested

planogram with their new product, to show how it relates to existing

products in said category.

Planograms differ significantly by retail sector. Fast-moving consumer

goods organizations and supermarkets largely use text and box based

planograms that optimize shelf space, inventory turns, and profit

margins. Apparel brands and retailers are more focused on

presentation and use pictorial planograms that illustrate "the look"

and also identify each product.

Since the purpose of a planogram is to communicate how to set the

merchandise to increase customer purchases, much research often

goes into the layout of a planogram. Attention is given to adjusting the

visibility, appearance and presence of products to make them look


more desirable, or to ensure sufficient inventory levels on the shelf or

display. There are some consulting firms which specilize in retail space

layout and planogramming. Some chain stores and wholesalers also

create and maintain planograms for their stores.

Planogramming is a skill developed in the fields of merchandising and

retail space planning. A person with this skill can be referred to as a

planogrammer.

Scope

To study and re-engineer the existing Planogram.

Purpose

• To communicate how to set the merchandise.

• To increase customer purchases.

• To adjusting the visibility, appearance and presence of products

• To make them look more desirable.

• To ensure sufficient inventory levels on the shelf or display.

• To use space effectively whether floor, page or virtual.

• To optimize short- and long-term returns on investment into retail

space.

• To provide a logical, convenient and inspiring product-customer

interface.

• To make right selection of products available.

• To facilitate communication of retailer’s brand identity.

• To maximize profit per centimeter of shelf space.

• Understand the relationship between space, sales and profit


Merchandising

Merchandising refers to the methods, practices and operations

conducted to promote and sustain certain categories of commercial

activity.

Visual Merchandising (VM) is the art of presentation, which puts the

merchandise in focus. It educates the customers, creates desire and

finally augments the selling process.

Visual Merchandising helps in:

� Educating the customers about the product/service in an

effective and creative way.

� Establishing a creative medium to present merchandise in 3D

environment, thereby enabling long lasting impact and recall

value.

� Setting the company apart in an exclusive position.

� Establishing linkage between fashion, product design and

marketing by keeping the product in prime focus.

� Combining the creative, technical and operational aspects of a

product and the business.

� Drawing the attention of the customer to enable him to take

purchase decision within shortest possible time, and thus

augmenting the selling process.


Sample Planogram Image


PROCEDURE OF REPLENISHMENT OF STOCK

The whole system of RELIANCE FRESH is connected through an ERP

SOFTWARE i.e. SAP and the replenishment procedure is based on

auto indenting & manual indenting.

Auto Indenting

MBQ of each SKU is already stored in the system of DISTRIBUTION

CENTRE. (D.C. is the place from where the required quantity of stock

is sent to the respective stores.)

As & when sales of a particular SKU takes place it is automatically

recorded in the system.

Within 3 days D.C. dispatches the required quantity of each SKU to

the store, to maintain the MBQ level of each shelf.

Manual Indenting

Before closing the store daily CSA of each category identify

therequirement of each SKU and communicate it to supervisor and

finally it is feed to SAP or mailed to Distribution Centre (D.C.) to

maintain the required level of inventory.


METHODOLOGY FOR ANALYSIS &

INTERPRETATION

Step 1: Per day sales of each SKU was obtained. The SKUs list

of Reliance Fresh which contains approximately 6000 SKUs/products

of all different categories (Fruits & Vegetables, Staples, Process Food,

Non-Food Fast Moving Consumer Goods, House wares, Beverages,

Dairy, Backery, Frozen, etc.) is provided by the head office. With the

help of this list, at store, daily sales of each SKU was obtained from

CSAs by interviewing them in depth. The probable demand of those

SKUs which were not in the Planogram of the store were also obtained

so that these could also be introduced if found appropriate.

Step 2: Per day sales was then multiplied by 3 so as to

maintain the required stock level for 3 days. After getting the

daily sales of each SKU, it was then multiplied by 3. Since, the supply

of SKUs other than Fruits & vegetables and Dairy from Distribution

Center is made after every 3 days and in order to maintain the

required MBQ level the sales figure is multiplied by 3.

For example, the daily sales of Parle Krackjack 75-

gram biscuit were 5 units approximately told by the CSA. This

projection of MBQ level was totally based on the judgments of CSAs

and on the previous month’s sales report. Therefore, its required MBQ

level should be 5x3, i.e., 15 units in the store. This approach was

applied for all SKUs of each category in order to adjust the MBQ level

of all SKUs of Planogram.


Step 3: Figure obtained in step 2 was then compared with

MBQ figure of current planogram for each SKU. The figure so

obtained for all the SKUs, by applying the same approach, was then

compared with the actual MBQ level of respective SKUs in the

Planogram. By this comparison the difference between actual and

obtained MBQ level was found. This difference was then used to adjust

the MBQ level.

For example, the MBQ level as per current Planogram of

FORTUNE SOYA OIL 1 LT POLY PACK was 56 units but actual per

day sales of this were 32 units, therefore, according to this sales figure

MBQ level should be 96 units. But this figure is more then actual MBQ

level, therefore, its MBQ level was increased to 96 units by providing it

single facing and double vertical stacking.

Step 4: MBQ level of each SKU was adjusted by either

increasing or decreasing its quantity. Similarly the MBQ level of

each SKU was adjusted by either increasing or decreasing its quantity

which was required for the optimum utilization of available bay space

and better inventory management. This approach helped in better

visibility of the SKUs and raising the profitability of the store. This

step resulted in the empty spaces on the different bays.

Step 5: Empty spaces obtained because of step 4 was then

filled by new SKU which was obtained in consultation with

CSAs, FDM, Franchisee Manager, on the basis of our


judgment & based on feedback from store staff . After getting

the empty shelves, those SKUs were finalized in consultation with

CSAs, FDM, and Franchisee manager and on the basis of our own

judgments, which were mostly demanded by customers other than

those SKUs which were available in the store. This helped in

introducing some new SKUs in Planogram.

Methodology Used

For re-engineering Planogram, following research was done:

1. Research Design

Research Design is the overall plan to conduct research. It covers:

• data collection methods

• sampling decisions

• data analysis methods

Often constraints on resources limit research design so that it is less

ideal.

For e.g. smaller sample size. The purpose of research design is to

decide approach that answers our problem in best way, given

constraints on resources.

Types of Research Design

There are three types of research designs:

1. Exploratory research design

Used for discovering ideas and insights

2. Descriptive research design – longitudinal and cross-sectional

Used for describing characteristics of population

3. Causal research design


Used for proving cause-effect relationship

The research design used in re-engineering Planogram is Exploratory

Research.

2. Exploratory Research

Following designs (methods) are used for exploratory research:

I. Secondary data

II. Focus groups

III. Depth interviews

Projective techniques: It consists of following techniques

I. Word Association

II. Sentence completion

III. Third person & Role playing

IV. Thematic Apperception Test

The tool used for research required in re-engineering Planogram is

Depth interview.

3. Depth Interview

Principle of Depth Interview

� Respondent will reveal truth about sensitive issue after taking

him in

confidence.

� Respondent’s answer will be obtained by probing

Characteristics of Depth Interview

� An unstructured interview of the respondent is taken

� Only one respondent is interviewed at a time


� Usually conducted by experienced researcher

� Interviewer’s role is extremely important since the emphasis is

on probing

� For re-engineering Planogram, the respondents selected were

CSAs, store supervisors, FDM, Franchisee manager & customers.

Collection of Data

Secondary Data

Secondary data is the data gathered by someone else prior to the

current needs of the researcher. It is already available to the

researcher before he starts conducting his research work.

Advantages of secondary data

� Quickly available

� Economical

� Dependable

� Easy to Use

� Accessible

� Understandable

While conducting study for re-engineering Planogram, the secondary

data was collected as follows:

� Analyse the following data from Management Information

Systems (MIS)

� Current Plano gram

� Category vise Net Sales

� SKU vise Net Sales

� Category vise unit sales

� SKU vise unit sales


� Maximum Bin/Bay Quantity (MBQ)

Primary Data

The researcher originates the primary data. The primary data for re-

engineering Planogram was collected as follows:

� Feedback from

� CSA

� FDM

� Franchisee

� Customer (limited to people known)

� Customer demographics

Feed Back Questions asked from CSAs

1. Which SKUs have the maximum queries?

2. Which SKUs have maximum complains?

3. Which SKUs customers are happy with?

4. Are there any SKUs that you suggest as a substitute?

a.) For what SKUs?

b.) What is the substitute?

5. Do you receive any queries for any SKUs which are not

stocked?

6. How much does each SKU is being sold on daily basis?

7. Is the customer satisfied with the quality of products

available in the store?

8. Is the customer happy with the pack size available

(especially for staples, ghee

& vegetable oil) or they need big or small one?

Feedback received from CSAs


� Maximum demand is for Fruits & Vegetables (F&V)

category.

� Customers are happy with F&V and Process Food (P.F.)

but for P.F. introduce some more products.

� Substitute suggested is mainly for staples and P.F.

category. For example:- Customer demanded a particular

brand of atta but sometimes due to unavailability of stock,

atta of other brand was offered.

� Customers query more about NF FMCG & toiletries

(Currently this category of SKUs is not available in the

store.)

� Sometimes customers complain about the freshness of

F&V as they find it rotten and also fresh ones mixed with

rotten ones.

� Some customer also asks for smaller pack size for staple

SKUs.

All the findings were communicated to Franchisee

Manager for which necessary steps were taken.


SWOT ANALYSIS

Strengths • Brand Name • Strong Financial Backup • Good employee base • Easily Reachable • First Mover advantage

Opportunities •Potential Market

Weaknesses • More time in billing • Fruits & Vegetables are not always fresh • Offer’s announcements are not proper

Threats •Local retailers •Opposition by Govt. •Big retailers are entering


CHAPTER -4

CONCLUSIONCONCLUSIONCONCLUSIONCONCLUSION


FINDINGS

� Lack of professionalism in the behavior of CSAs.

� Customers are not aware with the benefits of the card.

� Customer forgets their card at home.

� Customer has no time.

� MSR not asking for the cards major of the time.

� No one is there who give card number from Membership Master

Dump.

� Time taken in recharging.

� Rigid ness to follow planogram in spite of non-availability of

SKUs.

� Place for Mobile counter is not proper.

� Dummy of some mobile handsets were not available.

� Required SKUs were not available in the store, as these SKUs

were not sending by the D.C. instead of repeated demand by the

store.

� Customers feel inconvenience to purchase wheat without seeing

& touching its sample.

� Store becomes too congested during peak hours.

� Many a times fresh F&V are mixed with rotten ones.

� Non-availability of NF FMCG (Toiletries etc.).

� Consistency in quality in case of F&V is not maintained.

� Planogram of F&V changes as per its supply & sorting, therefore,

its planogram changes frequently.


� Planogram of staple, P.F., beverages, dairy etc. exits for longer

duration, therefore, these are emphasized.

� Some items were not available in the store given in planogram.

� Sorting of F&V was not done at right time.

� Customers` feel inconvenience to purchase wheat without seeing

& touching it’s sample.

� Non-Planogram SKUs were continuously sent by the D.C. to

store.

� Required SKUs were not available in the store as these SKUs

were not send by the D.C. instead of repeated demand by the

store.

� The problem of storage space was solved in time, which helped

in effective inventory management.

� The store has ample but unorganized parking space.

� There are possibilities of introducing NF FMCG & toiletries in

the store as customer frequently ask about these and required

space for these can also be created.


� Category contribution to total sales

� Category contribution to gross margin

57%

5% 5%

9%

3%5%

17%

4%

0%

10%

20%

30%

40%

50%

60%

Fresh Fruits & Vegetable

Food & Beverages Services

Beverages

Dairy

Confectionary & Snacks

Proccessed Food

Staples

Others

49%

9%11%

5%8%

13%

5%

0%

10%

20%

30%

40%

50%

60%

Fresh F&

V

Food

& Beverag

e Se

rvices

Dairy

Con

fectionary & Sna

cks

Proc

essed Fo

od

Staples

Others


� Empty Shelves

0

20

40

60

80

100

120

Fresh F&V

Food

& Beverages Services

Dairy

Confectio

nary & Sna

cks

Processed Fo

od

Staples

Others

ContributionTo GrossMargin

Contributionto Total Sales

Empty space that can

be utilized.


RECOMMENDATIONS.

� Announcement for the Membership card should be there.

� Effective utilization of storage space is possible.

� Rigidity in following planogram should be avoided.

� Possibility of Non-Food FMCG

� Effective utilization of empty Shelves

� Consistency in quality should be maintained.

� Proper training should be imparted to CSAs.

� Effective utilization of space should be done.

� Mark down of SKUs especially for Fruits & Vegetables should be

done at proper time.

� Sample of wheat and other staple items can be kept for better

exposure.

� Consistency in quality should be maintained

� Proper training should be imparted to CSA’s

� Effective utilization of space should be done

� Mark down of SKU’s, especially for Fruits & Vegetable should

be done at proper time.

� Sample of wheat & other staples items can be kept for better

exposure

� Fine Line Product Differentiation of SKUs should be

done.Announcement for the Membership card should be

there.Effective utilization of storage space is possible.Rigidity in

following planogram should be avoided.

� Possibility of Non-Food FMCG.


CONCLUSION

� Bhawani Singh Marg is a price sensitive area. People prefer

smaller quantities and good quality products. There are less

retail shops nearby the store. Instead some small grocery stores

and local vegetable mandies at V.T. road and SFS are situated at

some distance.

� There is always a gap analysis between Retailer & customer.

� Customers are ready to buy even at same rate or more than as

compared to outside if we provide them a quality.

� Customer has no time. They don’t want to waste their time in

selecting good vegetables.

� By analyzing the primary and secondary data it was identified

that majority of sales is from F&V category instead of mandi

near to store only in the case when quality is good. While for

other categories some changes like introducing more variety and

keeping competitive prices can be done to increase their sales.

� Data gathered through sales report and CSAs were analyzed to

adjust the MBQ level of each SKU and to increase the store

profit.

� Reliance Fresh needs to adjust its Planogram according to the

tastes and preferences of customer. Since store does not offer NF

FMCG and toiletries most of the customers are switching to

other players.


BIBLIOGRAPHY

1) Kotler Philip,” Marketing Management”, New Delhi, Pearson

Education Inc, 2006.

2) Kothari,C.R,Research Methodology methods and techniques ,New Delhi, New Age International (p) Ltd,1990.

3) Websites: - www.ril.com - www.businessworldindia.com - www.ORG-GFK.com - www.india-reports.com - www.wikipedia.org - www. economictimes.indiatimes.com

4) Magazine � Business Today � Business World

project report of “customer loyalty programme of reliace fresh

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