Sinhagad Institue Of Business Management

RETAIL MANAGEMENT

Case Study – RELIANCE FRESH

Mahesh DongaonkarMMM Sem IVRoll NO : 02

Vision

GROWTH THROUGH VALUE CREATION

Company Profile : Industry: Retail Type: Convenience Store100% Subsidiary Of Relaince

Industries Ltd Chairman & Managing

Director: Mukesh AmbaniFounded: 30th October 2006 Headquarter: Mumbai453 Stores pan IndiaAverage Area: 1100-7500

sqftTurnover- 2083 CrsNet Loss -135 Crs

Business Model

Store Size – Small & Medium Store

Merchndise – Food & FMCG Products

Investment Per Store – Rs 5 To 6 Million

Catchment Area – 2 To 3 Sq Km Radius

Market Positioning – Convinence Store

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Inefficient Agriculture Supply Chain in India

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Reliance Fresh : Supply Chain Model

Model 1: First Reliance Fresh Model

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Reliance Fresh : Supply Chain Model

Model 2: Wholesale Trading Model (WTS)

Supply Chain Model

Operational Startegy Branded

Direct Approach To Manufacturer

Private Lable

Backward Integration Strtegy

Local Vendor Developement With Focus On “GOOD QUALITY AT CHEAP PRICE”

Example : Buying Bakery Prodcuts From Tihar Jail

Retail Mix – Reliance Fresh

Product Range:ONLY VEGETERIAN

Fresh Vegetables & Fruits

Staple Processed Food Beverages Personal & Home Care Dairy Products

MERCHANDISE DETAILS

Product width: Fruits, Vegetables, Juices and other FMCG

Products.Product length: Fruits and vegetables both Indian and

imported are available.FMCG Product length:Personnel & Home care

Place:

Located in small commercial complexes close to Residential areas

Observation: Close to cross roads

Metro & Tier I Cities

Pricing: Low prized private labels Perishable merchandise are put on discount of

20% after 4 pm every day Discount on bulk buying Revises the rate list sent by the head office.

Promotion:

Main idea – Make bulk purchaseDiscount scheme days – Saturday and

SundayPromotions In Local Print MediaReliance fresh membership card –

Reliance One

SWOT Analysis

Strength:

Strong Financial s Of Holding Company & Brand Private Label Sale – Reliance Select Contract Farming Network – 1600 channels in villages Backward Integration Strategy

Weakness:

Poor inventory control Less Innovative Promotional Scheme Lack Of Use Of Advance Of

Information Technology Lack Of Facilities To Customers like

Parking,Compact Layout etc

Opportunities:

Increase In Net Margin Untapped Rural Market Potential Sale of Reliance Select products In

Open Market Expansion In Metro & Tier Cities

Threats:

Domestic Competitors like Big BazarBrand Cautious Customers Opposition From Unorganized RetailersEmployee Attrition RateChange In FDI Norms in Retail Sectors

Eg: Banjara hill outlets-sourced directly- vantimamdi, chevella, and nearby mandals in ranga reddy district.

Recruiting People – Underprivileged Community Biometric Cards – Farmers – Loans upto Rs. 15000 Training the farmer

Information centre: Increase productivity Market rates of different Corps Technical HelpQuality of seeds and fertilizers

Future Plans of Reliance Retail Ltd.

Future plans:

Plans to invest Rs 25000 Crore in next 4 year in their retail division

Train Students and Housewives – Customer care & Quality service – Part time job

Every Indian Consumer _ Reliance ConsumerExpansion To 800 cities Pan India Focus on Research & Development In

Agriculture SectorBuilding Of Financial Institution For Agriculture

Sector