Sales Promotion for Reliance Fresh (APKA FRESH APKE PADAOS ME)

By Moumita Shatabdi Sundari

COMPANY PROFILE
Industry: Retail Type: Supermarket Chairman & Managing Director: Mukesh Ambani First Outlet: Hyderabad( Banjara Hills) Founded: 30th October 2006 Headquarter: Mumbai

Product Range
Vegetables and Fruits: Household items Food and Beverages- all private labelled and premiere brands. Groceries only private labelled items Dairy products Refrigerated products Non-Food items

Positioning
Reliance has positioned itself as a convenience store or neighbourhood store. It is also related itself with freshness in the customers mind.

Reliance Fresh : Place

Generally located in small commercial complexes close to 3-4 big residential areas Observation: found close to Crossroads Enjoy a clear view from the road

Reliance Fresh : Promotion

The main idea behind every effort is to make a bulk purchase Saturday and Sunday are considered as discount and scheme day. Rebates and Premiums focusing on bill value Audio visual tools been employed

Reliance Fresh : Products

Product Mix consists of Fresh Fruits, Vegetables, Dairy products, Frozen Items, Groceries, cosmetics and Daily Use products. Less Assortment but focus on specific product categories like vegetables, dairy products, detergents, fruits and daily use items

Reliance Fresh : Presentation

The pure foods convenience store model of Reliance Fresh requires far less space than a full-fledged supermarket Most of these outlets need around only 2,000-5,000 sq. ft Simple, colorful but cramped Separate entry and exit point Chocolates and other kids items were nearby cash counter Vegetables and Fruits items were in display near entry gate

Layout and ambience Well Lit, Neat, Bright and Easy to read Signs

Reliance Fresh : Pricing

Low prized Private labels Discount on bulk buying Measures taken to reduce the length of Supply Chain thereby purchase directly from farmers, which is in turn sent to distribution centre. Two times supply of vegetable and fruits daily to ensure fresh

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Reliance Fresh : Personnel

2 shift staff for small stores and 3 shift staff for larger ones 5 to 6 sales persons per shift Staff uniform: red, green and blue 1 week training given to staff

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THE FARM TO FORK MODEL (RELIANCE FRESH)

Reliance Fresh : Private labels

Reliance Freshs shelves provide an indication that the group is looking for higher margins. Most of the staples are under its own private label brand Reliance Select. Excepting a few packets of Nestl's Maggi, or MTRs masalas or Pepsis Lays chips, there is very little shelf space given to the big brand owners in the country. Reason: Private labels offer far better profit margin to the retailer than branded products of FMCG companies.

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STATEGY
Highlights the saving Affordable brands Wide Range to choose from

BRANDS
GLEN Cooktops-GL 1046 PLCB INALSA Cooktop 2 Burner Harmony PREETHI GAS STOVE DUAL FLAME GS610

STATEGY
Highlights the saving Affordable brands Wide Range to choose from Excellent aesthetics

BRANDS
Aristo Pratap Signoraware

Sales Promotion:
The main idea behind every effort is to make a bulk purchase.
Saturday and Sunday are considered as discount and scheme day. Two types of offer: 1. BOGO (Buy one get one free) 2. BXGY (Buy X product get Y product free) Rebates and Premiums focusing on bill value. Auto material inside the store including the latest promotions & offers. Point of Purchase displays are used at reliance fresh to communicate the benefits of a product. Festive season special offers. Live announcement & Spot discount.

Cont.
Reliance Fresh Membership Cards. Social events & store tour. Providing gifts- free goods.

What Reliance Fresh is doing?

To increase sales volume:
Concentrate on Visual Merchandising. New concept of promotional strategy. One to One Marketing. Direct & long term relationship with farmers and manufacturers.

Providing concessional long term loans to farmers.

Push v/s pull strategies

PUSH STRATEGY Point of sale displays. Special Displays. Dealers Premium, Gifts. Advertising materials. Catalogs and brochure. Events. Sampling.

PULL STRATEGY

Coupons Samples Premium and gifts Refunds/Rebates POP advertisement.

Private label sale own products (Reliance Select) Contract Farming

Swot analysis
SWOT

Network 1600 channels in villages

Poor inventory control Staff Lack of knowledge about products Parking

Farm to fork, No middlemen, Farmers Customer Hundreds of farmers 1 million farmers next five years

International Retail Giants: Carrefour, Metro AG, Tesco. Bharti Wallmart (Farm to Fork) Operating cost are too high

COMPETITORS
MORE Total Mall Spencers Daily Namdhari Fresh Food World Nilgiris Auchan Spar Hypermarket Hyper City

Benefits Customers

COMPANY

1.All under one roof 1. Increased Footfall 2.Wide range to choose 2. Increase in sales from 3. Ability to manage 3.Information regarding merchandise based various offers on customer 4.Loyalty programs and information benefits

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 New format of food and caf Reliance food Private label sale Kirana store Pharmacy retail store 6000 outlets 784 cities Launch soaps, detergents, cosmetics and non FMCG products Private label