A

Project Report On

Submitted to Submitted by

Prof.Amit Hans Vishakh kumar

PGDM 2009-11

Roll No 109352 A-3

MANAGEMENT EDUCATION &RESEARCH INSTITUTE

(Approved by AICTE,Ministry of HRD ,Govt. of India)
About Reliance fresh
Reliance Retail is moving out of stocking fruits and vegetables. Reliance Retail has
decided to minimize its exposure in the fruit and vegetable business and position
Reliance Fresh as a pure play super market focusing on categories like food,
FMCG, home, consumer durables, IT and wellness, with food accounting for the
bulk of the business.

The company may not stock fruit and vegetables in some states. Though Reliance
Fresh is not exiting the fruit and vegetable business altogether, it has decided not to
compete with local vendors partly due to political reasons, and partly due to its
inability to create a robust supply chain. This is quite different from what the firm
had originally planned.

When the first Reliance Fresh store opened in Hyderabad last October, not only did
the company said the store’s main focus would be fresh produce like fruits and
vegetables at a much lower price, but also spoke at length about its “farm-to-fork’’
theory. The idea the company spoke about was to source from farmers and sell
directly to the consumer removing middlemen out of the way.

Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance

Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance
Super are various formats that Reliance has rolled out.

RELIANCE FRESH STORES IN DELHI

Reliance Fresh is the retail chain division of Reliance Industries of India which is
headed by Mukesh Ambani. Reliance has entered into this segment by opening
new retail stores at Hyderabad on 3 November 2006. Reliance plans to invest
25000 crores in the next 4 years in their retail division and plans to begin retail
stores in 784 cities across India.

Reliance Fresh recently (24th Jan, 2007) opened 12 "Fresh" outlets in Chennai
increasing its total store count to 40. Reliance is still testing its retail concepts by
controlled entry beginning in the southern states.
Reliance Fresh is the convenience store format which forms part of the retail
business of Reliance Industries of India which is headed by Mukesh Ambani.
Reliance plans to invest in excess of Rs 25000 crores in the next 4 years in their
retail division. The company already has in excess of 560 reliance fresh outlets
across the country. These stores sell fresh fruits and vegetables, staples, groceries,
fresh juice bars and dairy products.

A typical Reliance Fresh store is approximately 3000-4000 square. Feet and caters
to a catchment area of 1-2 km

Problems In August 2007, Uttar Pradesh Chief Minister Mayawati ordered to close
10 new stores keeping view of Law & order situation. In November 2007, Reliance
Fresh stores are attacked by Bharatiya Janshakti Party supporters headed by Uma
Bharti.

Suicide’ squad against Reliance Fresh outlets .Bhubaneswar: Traders and roadside
vendors opposing the opening of Reliance Fresh outlets in Orissa on Saturday
formed a “suicide” squad. “As many as 100 youth today joined the squad as they
prefer to die while fighting rather than facing starvation,” All-Orissa Roadside
Vendors and Small Shop Owners Association president Pratap Sahu

Number of years in Business

Years in 0-2 years 2-5 years 5-10 years 10+ years Total
business
Number 01 08 15 51 75
 Years in Business

1%
11%

0-2 years
20%
2-5 years
5-10 years
68% 10+ years

The following table and shows the effect of opening of Reliance fresh shop, on the
existing market.

Effect of opening of Reliance shop

Change in Decrease in sale Increase in sale No change
business

Number 66 03 06

Number

70 66

60

50

40
Number
30

20

10 6
3
0
Decrease in sale Increase in sale No change
The impact of the corporate entry into retail was huge and the brunt of it was faced
maximum by the low income group retailers. There was a huge decline in the
business of most of the retailers in and around Reliance fresh stores. This was the
scene in less than two months of opening of the stores. If these shops continue for
long and spread most parts of the city, the condition of the existing retailers will be
really appalling.

Decline in sales
Percentag 1-10 10-20 20-30 30-40 40-50 50+ Total
e
Number 3 1 3 12 15 32 66

Products
Strictly vegetarian product mix consist of fresh fruits,vegetables, Dariy 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 super market range includes regular fruits & vegetables , reliance
own brands of packed pulses , maggi products , pepsi and other grocery product
products available at the reliance fresh super market are fruits, vegetables etc ...It
has all grocery items.

Strictly vegetarian product mix consist 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 .

Strategy of Marketing
 Farm to Fork strategy
 A seamless supply chain infrastructure and unmatched customer experience.
 They have consciously segregated its vegetarian and non-vegetarian items.
 Reliance Fresh along with other domestic corporation have a moral standing.
 It will also sell kitchen equipment and other edibles.
 The strategy is to open one Reliance fresh store in a radius of three to four
km. to serve 1000-2000 families.

According to statistical Data

This data based on virtual concept, Purchase behavior of Customers of Reliance
Fresh -
For ungrouped data based conclusion ,With Average (x) Method

S.NO. Quarter Sales(Lakh)X

1. JAN-MAR 2,00,000

2. APR-JUNE 2,50,000

3. JULY-SEPT 3,75,000

4. OCT-DEC 3,00,000
 N=4 ∑x=11,25000

BASIC FORMULA-

X=∑X/N

=11.25(Lakh)/4

Answer …….= 2.8125(Lakh) , This is quarter sales of Reliance Fresh

Sales
Sales

375000
300000
250000
200000

Jan-Mar Apr-June July-Sept Oct-Dec

Method -2 Represented by chart ………………………………..

INFERENCE- This is presented whole situation in quarterly ,that is three quarter

always increasing sales but only fourth quarter is decreasing sales . Thus Reliance
fresh is main role play in retail sector.