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SUMMER PROJECT/INTERNSHIP REPORT ON “RELIANCE RETAIL STORE OPERATION”
Introduction • India has often been called a nation of shopkeepers. Presumably the reason for this is; that, a large number of retail enterprises exist in India. In 2004, there were 12 million such units of which 98% are small family businesses, utilizing only household labour. Even among retail enterprises, which employ hired workers, a majority of them use less than three workers. • Retailing is the combination of activities involved in selling or renting consumer goods and services directly to ultimate consumers for their personal or household use. In addition to selling, retailing includes such diverse activities as, buying, advertising, data processing and maintaining inventory. • While sales people regularly call on institutional customers, to initiate and conclude transactions, most end users or final customers, patronize stores. This makes store location, product assortment, timings, store fixtures, sales personnel, delivery and other factors, very critical in drawing customers to the store. • Final customers make many unplanned purchases. In contrast those who buy for resale or use in manufacturing are more systematic in their purchasing. Therefore, retailers need to place impulse items in high traffic locations, organize, store layout , trains sales people in suggestion , and place related items next to each other, to stimulate purchase. • • • • • WHAT DOES THE RETAILING INDUSTRY INCLUDE? Department Stores Discount Stores Clothing Stores Specialty retailers
• • • • • • • Convenience Stores Grocery Stores Drug Stores Home furnishing retailers Auto Retailers Direct Sales Catalog and mail order companies Some e-commerce businesses
• • •
THE IMPORTANCE OF RETAILING Organized retailing in India was estimated at Rs.18, 000 crores in 2002-2003 and has grown at about 40% over the last 3 years (Source KSA Retail Outlook). Retailing has a tremendous impact on the economy. It involves high annual sales and employment. As a major source of employment retailing offers a wide range of career opportunities including; store management, merchandising and owning a retail business.
Consumers benefit from retailing in that, retailers perform marketing functions that makes it possible for customers to have access to a broad variety of products and services. Retailing also helps to create place, time and possession utilities. A retailer's service also helps to enhance a product's image.
Retailers participate in the sorting process by collecting an assortment of goods and services from a wide variety of suppliers and offering them for sale. The width and depth of assortment depend upon the individual retailer's strategy.
They provide information to consumers through advertising, displays and signs and sales personnel. Marketing research support is given to other channels, members. They store merchandise, mark prices on it, place items on the selling floor and otherwise handle products; usually they pay suppliers for items before selling ,,them to final customers. They complete transactions by using appropriate locations, and timings, credit policies, and other services e.g. delivery.
Retailing in a way, is the final stage in marketing channels for consumer products. Retailers provide the vital link between producers and ultimate consumers.
RETAIL STRATEGY AND STRUCTURE
• Successful retail operations depend largely on two main dimensions: margin and turnover. How far a retail enterprise can reach in margin and turnover depends essentially on the type of business (product lines) and the style and scale of the operations. In addition the turnover also depends upon the professional competence of the enterprise. • In a given business two retail companies may choose two different margin levels, and yet both may be successful, provided the strategy and style of management are appropriate.
MARGIN TURNOVER MODEL • • Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for understanding the retail structure and evolving a retail strategy." Margin is defined as the percentage mark tip at which the inventory in the store is sold and turnover is the number of times the average inventory is sold in a year. This is a diagrammatic representation of the frame work and can be applied to almost any type of retail business. • Depending upon the, combination of the two parameters, a retail business will fall into one of the four quadrants. For instance L-L signifies a position which is low on both margin and turnover; whereas, H-L indicates high margin and low turnover.
LOW MARGIN HIGH TURNOVER STORES • Such an operation assumes that low price is the most significant determinant of customer patronage. The stores in this category price their products below the market level. Marketing communication focuses mainly on price. They provide very few services; if any, and they normally entail an extra charge whenever they do. The merchandise in these stores are generally pre-sold or self sold. This means that the customers buy the product, rather than the store selling them. • These stores are typically located in isolated locations and usually stock a wide . range of fast moving goods in several merchandise lines. The inventory consists of well known
brands for which a consumer pull is created by the manufacturer through national advertising. Local promotion focuses on low price. Wal-mart in the United States is an example and Pantaloon Chain or Subhiksha are Indian examples of such stores. HIGH MARGIN LOW TURNOVER • This operation is based on the premise that distinctive merchandise, service and sales approach are the most important factors for attracting customers. Stores in this category price their products higher than those in the market, but not necessarily higher than those in similar outlets. The focus in marketing communication is on product quality and uniqueness. • Merchandise is primarily sold in store and not pre-sold. These stores provide a large number of services and sell select, categories of products. They do not stock national brands which are nationally advertised. Typically, a store in this category is located in a down town area or a major shopping center. Sales depend largely on salesmanship and image of the outlet. HIGH MARGIN HIGH TURNOVER STORES • These stores generally stock a narrow line of products with turnover of reasonably high frequency. They could be situated in a non commercial area but not too far from a major thoroughfare. Their location advantage allows them to charge a higher price. High over head costs and, low volumes also necessitate a higher price. LOW MARGIN-LOW TURNOVER STORES • Retail enterprises in this category are pushed to maintain low margins because of price wars. Compounding this problem is the low volume of sales, which is probably a result of poor management, unsuitable location etc. such businesses, normally get wiped out over a period of time. RETAILING FORMATS (CLASSIFYING RETAIL FIRMS) • Regardless of the particular type of retailer (such as a supermarket or a department store), retailers can be categorized by (a) Ownership, (b) Store strategy mix, and (c) Non store operations. Figure 1.3 illustrates this concept.
mainly because they have the opportunity to take advantage of "economies of scale" in buying and selling goods. a convenient location and close customer contact. Examples of retail chains in India . or they can cut prices and attract greater sales volume. A majority of retail business in India are sole proprietorships and partnerships. standardization and elaborate control.systems. Unlike smaller. independent retailers with lesser financial means. In such units. furniture stores. drycleaners. • • Independent Retailer Generally operates one outlet and offers personalized service. are managed and run by independents. Retail Chain • It involves common ownership of multiple units. can be owned by a sole proprietor. They can maintain their prices.. This is due to the fact that into retailing is easy and it requires low investment and little technical knowledge. thus increasing their margins. Chain stores have been successful. • Most independent retailers fail because of the ease of entry. Chains often rely on.5 • • Form of Ownership A retail business like any other type of business. they can also take advantage of such tools as computers and information technology. Roughly 98% of all the retail businesses in India. specialization. Consequently chains are able to serve a large dispersed target market and maintain a well known company name. bookshops. partners or a corporation. This obviously results in a high degree of competition. poor management skills and inadequate resources. the purchasing and decision making are centralized. including barber shops. LPG Gas Agencies and neighborhood stores.
shopping facilities. advertising planning and other functions. The franchise agreement gives the franchiser much discretion in controlling the operations of small retailers. assortment. Retail Franchising • Is a contractual arrangement between a "franchiser" (which may be a manufacturer. location. which allows the latter to conduct a certain form of business under an established name and according to a specific set of rules. Pizza Hut and Nirulas. convenience stores at select petrol filling stations. In exchange for fees. but agree on broad common policies. Amul is a typical example of a cooperative in India.6 are Shoppers stop. or a service sponsor) and a "franchisee" or • Franchisees. wholesaler. Cooperatives • A retail cooperative is a group of independent retailers that have combined their financial resources and their expertise in order to effectively control their wholesaling needs. the franchiser offers assistance and very often supplies as well. advertising. which is an integrated combination of hours. royalties and a share of the profits. The individual retailers retain their independence. storage. They share purchases. McDonalds. The various categories are: . service. and prices etc. Store Strategy Mix • Retailers can be classified by retail store strategy mix. West side and IOC. Classic examples of franchising are.
Tanishq for jewellery and McDonalds. Similarly in Mumbai. offers products at prices which are 25% . Consumers use a convenience store. A hyper market generally has an ambience which attracts the family as whole. we have Apna Bazar and Sahakari Bhandar. • (B)Super markets: Is a diversified store which sells a broad range of food and non food items. Large format apparel department stores include Pantaloon. Non Store Retailing . milk. eggs. Jewellery. Music World for audio needs. food oriented store with long operating house and a limited number of items. home furnishings and appliances. run Super bazaar. for fill in items such as bread. jams. Ebony and Pyramid. some apparel items. Consumers are not confronted with racks of unrelated merchandise. A supermarket typically carries small house hold appliances. audio/video CD's etc. Successful speciality stores in India include. Pantaloon Retail India Ltd. and Kendriya Bhandar in Delhi are good examples of a super market. pickles. Beauty and Health Care. Pizza Hut and Nirula's for food services. etc. Others in this category are: Shoppers Stop and Westside. such as Audio equipment. • (E)Hyper Markets: Is a special kind of combination store which integrates an economy super market with a discount department store.7 • (A)Convenience Store: Is generally a well situated. film developing. The Govt. • (D)Speciality Store: Concentrates on the sale of a single line of products or services. • (C)Department Stores: A department store usually sells a general line of apparel for the family. household linens. books. chocolates and candy etc. bakery. (PRIL) through its hypermarket "Big Bazar".30% lower than the market price.
The advantages to the retailers include lover operating costs. for the purpose of making a sale or purchase. which includes ordering instructions and customer orders by mail. Examples of in home retailing include. This trend is catching up fast in India.including door-door selling.8 • In non store retailing. Eureka Forbes vaccum cleaners and water filters. He/She has the prospect's attention and there are fewer distractions as compared to a store setting. the ability to buy merchandise not available in local stores. a sales transaction takes place in a home setting . • (D)Direct Response Retailing: Here the marketers advertise these products/ services in magazines. Among the reasons are. This type of retailing is growing very fast. A large number of mobile phone service providers use this method. The basic attraction for shoppers is convenience. It gives the sales person an opportunity to demonstrate products in a very personal manner. and the presence of unskilled retail sales persons who cannot provide information to help shoppers make buying decisions • • The major types of non store retailing are: (A)In Home Retailing: Where. Burlington's catalogue shopping was quite popular in recent times. and credit companies etc. Other examples are private insurance companies. the increasing number of women workers. radio and/or television offering an address or telephone . Some multi level marketing companies like Oriflame also resort to catalogue retailing. lower rents. smaller sales staff and absence of shop lifting. newspapers. customers do not go to a store to buy. • (B)Telesales/Telephone Retailing: This involves contact between the prospect and the retailer over the phone. • (C)Catalog Retailing: This is a type of non store retailing in which the retailers offers the merchandise in a catalogue.
Apart from all the multinational banks. countrywide.com are some of the many e-tailers operating. Products are sold directly to customers/buyers from machines. Amazon. It is also sometimes referred to as "Direct response advertising. THE WHEEL OF RETAILING • Is a hypothesis that attempts to explain the emergence of new retailing institutions and their eventual decline and replacement by newer retailing institutions? Like products retailing institutions also have a life cycle. The rapid diffusion of internet access and usage.9 number so that consumers can write or call to place an order.com HDFCSec. • (F)Electronic Retailing/E-Tailing: Is a retail format in which retailers communicate with customers and offer products and services for sale. Times shopping India is another example. These machines dispense products which enable customers to buy after closing hours. ATM's dispensing cash at odd hours represent this form of non store retailing. E-bay and Bazee. is the ultimate in non personal. non store retailing." Telebrands is a classic example of direct response retailing." The availability of credit cards and toll free numbers stimulate direct response by telephone. over the internet. . a large number of Indian banks also provide ATM services. The goal is to induce the customer to make an immediate and direct response to the advertisement to "order now.com. • (E)Automatic Vending: Although in a very nascent stage in India. and the perceived low cost of entry has stimulated the creation of thousands of entrepreneurial electronic retailing ventures during the last 10 years or so.
such as full line discount stores and category specialists. This trading up process.10 • According to this theory new retailers enter the market as. creating opportunities for new low price retailers to enter the market. In its entry phase. stock selection. . because it becomes vulnerable to low cost/low service formats. nor was it ever intended to describe the development of every individual retailer. the department store was a low cost-low service venture. • The evolution of the department store illustrates the "wheel of retailing" theory. advertising and service. it only reflects a pattern. While the wheel hypothesis has a great deal of intuitive appeal and has been borne out in general by many studies of retail development. low status institutions. Figure 1. Over a period of time these retailers want to expand their markets and begin to stock more merchandise. The same department store then moves into the vulnerability phase. low price. Among the major retailing decisions are these related to (a) Target markets (b) Merchandise management (c) Store location (d) Store image (e) Store personnel (f) Store design (g) Promotion. It is not a sure indicator of every change. and (h) Credit and collections. With time it moved up into the trading-up phase. RETAILING DECISIONS • There are many factors for retailers to consider while developing and implementing their marketing plans. low margin. It upgraded its facilities. Increases the retailers’ costs and prices.5 illustrates this theory. and open more convenient locations. The cycle begins with retailers attracting customers by offering low price and low service. provide more services.
The tremendous growth in number of speciality stores in recent years is largely due to their ability to define precisely the type of customers.Target Markets: Although retailers normally aim at the mass market. Factors affecting the site include. Merchandise Management includes (i) merchandise planning (ii) merchandise purchase. store layout. Customers tend to shop in stores that fit their images of themselves. as well as the quality. services. Merchandise buying involves decisions relating to centralized or decentralized buying. The term "Atmospherics" is used to refer to the retailer's . in the right place at the right time. needed to satisfy target customers to achieve the retailers return on investment. The exterior should be attractive and inviting and should blend with the store's general surroundings. Having decided on the trading area a specific site must then be selected. • Store Personnel: Sales personnel at a retail store can help build customer loyalty and store image. A store's tradingarea is the area surrounding the store from which the outlet draws a majority of its customers. Merchandise Control: deals with maintaining the proper level of inventory and protecting it against shrinkage (theft. competitors' location. a growing number are engaging in marketing research and market segmentation. traffic patterns. For example some people might be willing to travel a longer distance to shop at a speciality store because of the unique and prestigious merchandise offered. pilferage etc. and (iii) merchandise control. • Store Image: A store image is the mental picture. This involves sales forecasting. a retailer likes to project to customers. because they are finding it increasingly difficult to satisfy everyone. There is a growing trend now. A major complaint in many lanes of retailing. decisions regarding gross margins and mark ups etc. inventory requirements. Merchandise planning deals with decisions relating to the breadth and depth of the mix. or personality of the store. retailers can use their resources and capabilities to position themselves more effectively and achieve differential advantage. Through a careful definition of target markets. depth and breadth of merchandise. accessibility. and make it available at the right price. they want to serve. these sales clerks to convert them from order takers to effective sales associates. Image is affected by advertising. • Store Location: Location is critical to the success of a retail store. • Merchandise Management: The objective here is to identify the merchandise that customers want. personnel.). • Store Design: A store's exterior and interior design affect its image and profit potential. is the poor attitude of a salesperson. merchandise resources and negotiation with suppliers. availability and cost and population shifts within the area. The extent of this area depends upon the merchandise sold. to provide training to.
Non personal promotion is advertising.the face to face interaction between the buyer and the seller. Radio. Department stores and speciality stores. An effective layout guides the customer though the various sections in the store and facilitates purchase. This explains the popularity of different types of credit cards and debit cards. Some sectors of retailing have become saturated. dual earner households and the increased customer interest in quality and customer service: • Shopping Malls: A growing number of shopping malls are coming up all over the country. Outdoor displays and direct mail. • Factory Outlets: Manufacturers are opening factory outlets to sell off surplus inventories and outdated merchandise. other forms of promotion include. and sell specific products. This forward vertical integration gives manufacturers greater control' over distribution. processing forms and bad debts etc. . emphasize this form of promotion. • Credits & Collections: Retailers are generally wary of providing credit. with their prestigious specialty shops. several retailers are operating under high levels of debt and number of retailers after running frequent "sales". because of additional costs-financing accounts receivables. EMERGING TRENDS IN RETAILING • In recent years the nature of retailing has changed dramatically. • Retailers are adapting to*the shopping needs and time constraints of working women. displays. promote customer traffic. as firms try to protect their positions in the market place. have found it difficult to maintain regular prices. But many customers prefer some form of credit while purchasing. The objective is to build the stores image. Merchandise display is equally important. than selling the merchandise to off price retailers. Personal communication is personal selling . It includes both. there seems to be a proliferation of such malls surrounding Delhi. Many customers are no longer willing to spend as much time on shopping as they once did.effort at creating the right ambience. • Promotion: retail promotion includes all communication from retailers to consumers and between sales people and customers. in places like Gurgaon and Noida. Newspapers. In general they target higher income customers. Mohini knitwear of Ludhiana (Punjab) and number of woolen and hosiery manufacturers set up their outlets in Delhi during winters. personal and non personal promotion. The media used are TV. restaurants and department stores. give always and contests etc. In north India. special sales.
Virtual shopping through PDA's is another possibility. • Impact of Technology on Shopping Behaviors: The way retailers present their merchandise and conduct their transactions are changing. This includes direct marketing. • Diversification of Offerings: Scrambled (unrelated products or services) merchandising is taking on a broader meaning and inter type competition among retailers is growing. Cable TV Channels are used to present merchandise. In Home shopping TV shopping and e-tailing etc. Videos have replaced catalogues and computer linkages to acquire information and make purchases are on the increase. Multi Channel Retailing: Traditional store based and catalogue retailers are placing more emphasis on their electronic channels and evolving into multi channel retailers. because they can reach new markets and overcome limitations posed by traditional formats. . For instance Citibank is organizing tourist trips and sending mail order catalogues to its credit card customers.• Non Store Retailing: Non store retailing is accelerating at a faster rate than in store retailing.
Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial Infrastructure Limited. petrochemicals (polyester. petrochemicals. The Group exports products in excess of USD 15 billion to more than 100 countries in the world.000 employees on the rolls of Group Companies.to be fully integrated along the materials and energy value chain. . with businesses in the energy and materials value chain. Starting with textiles in the late seventies. Reliance Industries Limited. Reliance enjoys global leadership in its businesses. is a Fortune Global 500 company and is the largest private sector company in India.RELIANCE COMPANY PROFILE RELIANCE GROUP The Reliance Group. Reliance pursued a strategy of backward vertical integration . The Group's activities span exploration and production of oil and gas. fibre intermediates. petroleum refining and marketing. fibre intermediates. The flagship company. founded by Dhirubhai H. plastics and chemicals).in polyester. is India's largest private sector enterprise. Ambani (1932-2002). Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. petroleum refining and oil and gas exploration and production . textiles and retail. plastics. There are more than 25. Group's annual revenues are in excess of USD 27 billion.
2002 Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses.FOUNDER PROFILE "Growth has no limit at Reliance. I keep revising my vision. Ambani Founder Chairman Reliance Group December 28. Meswani Executive Director Hital R." Dhirubhai H. Meswani Executive Director RELIANCE FRESH . you can do it.July 6. Ambani Chairman & Managing Director H. 1932 .S.Kohli Executive Director Nikhil R. Only when you can dream It. BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED Mukesh D.
convenience. been first off the blocks by launching its first Reliance Fresh outlets in Hyderabad. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. staples. The company also has plans to train students and housewives in customer care and quality services for part-time jobs. quality. Reliance Fresh will… • Forge strong and lasting bonds with millions of farmers and will transform the Relationship with customers to a new level • Offer unmatched affordability. service and choice • Offer our customers the widest range of fruit and vegetables at the best prices in the neighborhood • Provide for the daily needs of our customers by offering staples. groceries.000 crore venture and it plans to add more stores across different g. has. Reliance Industries Ltd. the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people. and eventually have a pan-India footprint by year 2011. in fact. Reliance plans to invest rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country.APKA FRESH APKA PADAOS ME India’s Fortune 500 private sector giant. fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. unbeatable freshness and great service so that our Customers know that we can be trusted every day. Besides. grocery and household products at great prices • Offer consistent high quality. Reliance fresh is the retail chain division of reliance industries of India which is headed by Mukesh Ambani. RELIANCE FRESH IN RANCHI . The super marts will sell fresh fruits and vegetables. according to the company. The reliance fresh supermarket chain is ril’s rs 25.
In Ranchi there are 9 outlets of Reliance Fresh: 1. Vyas Enclave 5. where as compare to others cities it is too low. Booty More On an average turnover is 50. L N Complex 6. Rathod Circular Road 4. Their main aim is to provide good quality products in lower price & customer service & customer satisfaction. Prasad Motors 9. According to reliance fresh store manager they were satisfying 75% of customer expectations. SPG Mart 2. Eyelex Hinoo Main Road 8. 000 in Ranchi. These Are the Problems We Found In Reliance Fresh in Ranchi:– - Ranchi is a cultural oriented city Per Consumer income lower than compare to metropolitan cities The most of the consumer will prefer to go for local market Reliance is situated in high income consumer area There is limited consumer . M R Tower 7. Trikuta Hill 3.
identify the reliance marketing strategy in Ranchi .We provide information to reliance fresh to focus On middle class consumers in Ranchi . OBJECTIVES: . what they want. This information’s can be collected and utilized the help of marketing research.It is the organizational study . collection. how much they are able to pay. and the substitute available in the they market etc. analysis. All decisions in modern business organization revolve around the marketing information.Implementation of this plan should not affect Other R Marketing Research Marketing research as a functional area of management is becoming increasingly important as compared to other field. discrimination.- Advertising strategy is not good in Ranchi. Because the success of the business does not depend upon the guess work rather have the correct information about the customer. Marketing research is the systematic and objective identification. how want. and use of information for the .
Hence Descriptive type of research is used for analysis of the data. the possible decision alternatives.purpose of improving decision making related to the identification and solution of problem in marketing. Since data collection method is from surveys. In descriptive research. and relevant variables that need to be . Exploratory Research: Exploratory research is used when one is seeking insights into the general nature of the problem. Types of Research 1. but them tentative and speculative. Causal Research: When it is necessary to show that one variable Causes or determines the values of other variables. 2. 3. a casual research Approach must be used. All research approaches can be classified into three general categories research: 3. Basically there is a little knowledge on which to build. Descriptive Research: Descriptive research embraces a large proportion of marketing research. considered. The purpose is to provide an accurate snapshot of some aspect of the market environment. hypothesis often will exist.
Types and collection of data used Basically there are two types of data which are used in marketing research process. Interview may be defined as a systematic conversation initiated for a specific purpose and focus on certain content areas. Interview C. 1. Primary Data A. Observation B. Questionnaires Interview: Interview is one of the chief means of collecting data in research process. telephone surveys and mail surveys. depending upon the method of data gathering used: Personal surveys. Advantages of Surveys . Surveys: There are mainly three types of surveys.
4. Less Distribution bias 3. Sources of Secondary Data: The various sources of data are as follows: 1. 2. . company’s yearly chronicles and employee’s of the company. 5.1. Wider Distribution 2. Secondary Data: The data once collected by once person become the secondary data if used by another person. Thoughtful reply The primary data under processing is collected from both direct filling the questionnaires and through telephone interviews also. information about company has been taken from company website. 3. Bibliography Directories Televisions Newspapers Journals Websites The Secondary data like information of existing customers. 6. 2.
The sample should be representative of the population and the information obtained must be reliable. In any survey where reliability is desired. the errors and variances have to be controlled. Population –Dealers. Process – Sampling Method of data collection – Typed Questionnaire . measured and interpreted. company’s representative in Ranchi.Sampling A sample is a part of population. RESEARCH DESIGN The type of Research Design will be Descriptive The types of Primary Data collection procedures that would probably be used. distributors. fleet owners.
Both close ended and open ended questions are put together in the questionnaire. 1. 4.Attitude Measurement Attitude is psychological constructs. Ratio Scale: A ratio scale is a special kind of interval scale that has a natural zero point. a way of conceptualizing the intangible. Nominal Scale: In a nominal scale. labeled categories but there is no necessary relationship among the categories. objects are assigned to mutually exclusive. Ordinal Scale: An ordinal scale is obtained by arranging them in order with regards to some common variable. 3. Attitude can’ really be observed or measured directly because their existence is inferred from their consequences. The question is simply whether each object has more or less of this variable than some other objects. Attitudes are mental states used by individuals to structure the way they perceived their environment and guided the way respond to it. Types of Attitude measurements Scale: There are four types of measurement scale as follows. 2. DATA COLLECTION: . The Nominal Scale is used while designing the questionnaire. Interval Scale: In an interval scale the numbers used to rank the objects also represent equal increments of the attributes being measured.
reliance fresh employees SECONDARY DATA – Collected from internet. 1.PRIMARY DATA – Collected from consumers and suppliers. The information is the major part of any research proposal to attain certain objectives we require both secondary and primary data which is discussed above HYPOTHESIS TESTED: The hypothesis tested on both reliance fresh and people of Ranchi H0: Reliance fresh is not famous & not significant in Ranchi. Retail stores operations based on aspects :- . and news papers. - NEED OF STUDY:- A detailed study in Reliance Retail focusing primarily on two areas of their operations. H1: Reliance fresh is famous & highly significant in Ranchi. articles. LIMITATIONS: Every research has certain limitation so there is no research is free from limitation same thing happen in this research which is discussed below: Less investment in advertising in Ranchi city People are very conservative Primary data is not sufficiently available Much of the research done was based on consumer and supplier survey Research based on Ranchi city Last but not least time constraint.
gross margin. Store operations based on SUSD (Shutter up to Shutter down) 2. sale per sq. ACTIVITIES GROUPS WITHIN THE STORES Getting Products to Shelf 1) Indenting & Purchase Orders (PO’s) (a)Indenting – DC Delivery:Indenting will be happen after checking stock in the store and goods in transit. (b) Raising PO for Bakery PO (purchase order) for bakery supply is raised in the store and also released to the vendors by the stores. shrinkage . ticket size & catchment of Reliance fresh stores operating in Ranchi district in order to determine their performances based on indicators like sale. II. feet . An analysis of footfall. General operations according to the company manuals.I. For branded goods there is a automatic indenting system which is handled by the head office (Mumbai). weekends or any festivals then the quantity is modified. dumping and ticket size for the month of May 2009 as well as their comparison with month of April 2009. . Delivery of fruit & vegetables is after 48hours after being raised. Indenting for milk and dairy products is delivered after 36 hours. Or whenever if required any changes in indenting due to season. PO on vendors can be raised only once each day & it will be valid for 24 hours.
Do not accept any short shelf life or damage quantity from vendor and reduce it from the invoice if required. Note down the air condition temperature. SM/ASM Checks: Check the deliveries for quantity.& CSA: Check the seal in front of driver. damages and freshness and accept only good products as per shelf life norms. (c) Receiving from Vendors Procedure for receiving goods directly from vendors. The main focus during goods receiving must be to unload the crates/ cartons from the truck as quickly and safely as possible. At the time of receiving goods from DC many things which is followed by the SM. Stores are not unloading transit damaged stocks. Behind this whole activity owner is store manager/ asst. If any HU (Handling unit) / article is found damaged. Transit damages will be returned to DC in the same delivery truck.2) Receiving:(a) Checking of Delivery in DC All the Dry DC delivery will be checked by a store staff in the DC staging area before packing and loading. (b) Receiving Goods in Store: From DC & CPC Receiving indented goods from the DC & CPC as per the delivery schedule. or missing noted it on the trip sheet for return to DC. beverage and books/magazines and music. excess. Do the GRN (Goods return note) for the delivery for the actual received quantity. Remove all expired products from the shelf and get them replaced with fresh product without any GRN for the same. . Reliance fresh stores indenting specially bakery. This is to minimize delivery count error and ensure that right quantity is delivered to the stores. ASM. Behind this all the activity owner is Store Manager. Inspect stocks for transit damages. Vendors and store staff check physically check DSD deliveries for damages and freshness and accept only fresh saleable products. In case of books/magazines and music SM/ASM check bar-codes on the books or music CDs delivered by the vendor & return the unsold items to the vendors. store manager.
Headquarter send new Planogram to store by mail. The major change of shelf is less than 5 bays. If the F& V section looks empty in the late evening because of stock outs. raise an indent of additional stock if required. 6) Getting Products from Shelf to customers (a) Promotion management (setting up the store for new promotions) . Planogram indicate shelf heights. then store manager may change only the F& V Planogram in a suitable manner to give appearance of full store.3) Replenishment of goods (a) Replenish Shelf from Goods Receiving Area Process of moving goods from goods receiving area to the respective bays/freezers/chillers as per the priority fill rule. All the changes made on shelf to be signed off by store manager. at per new Planogram. All the Planogram to be provided in standard format. This process describes how to change Planogram. All the changing of SKU’s is done by headquarter Mumbai. Strictly follow FIFO Place previous stock in the front/top of the shelf. Changing of fixtures and shelf heights. Changing of Planogram is wholly managed by headquarter. 4) Managing Price Changes (a) Changing SELs for those SKU’s where price has been changed. 5) Managing Planogram Implementation of changes of Planogram The Planogram indicates the location for each SKU on a shelf. Frozen products received must have first priority for stacking in the Freezers. No stock to be displayed on the shelf if it not in the Planogram. Planogram is send to the store at least 2 days in advance of the change. Chilled product received must have second priority after frozen product for stacking in the chillers. Stack goods as per Planogram and readjust SEL to align with the left hand side of the first facing going from the left. Check quality of stock received as per Planogram.
Fill F&V in a similar manner using crates stored in the bottom shelf of the wall racks. Exception can be made at the customer’s favour at discretion of store manager. Put up new promotional signage above the end cap at the marketing defined locations. Staff need to be briefed on the following : Details of the promotion Period of the promotion Advantages to the customer Any special arrangements at the till Sales target for the promotion Process for dealing with left over promotion stock If the customer brings the promotion item back for exchange / refund – the customer has to bring back the free offer as well. In every store every day employees check for date code check schedule for the day in store perform. FEFO / FIFO to be followed for stock rotation for non F&V SKUs. Store check that all new promotional stock has been received from the DC and the free gift under promotional offer are bundle along with the promotional stock. Follow FEFO. If the free gift is too large to be accommodated on the shelf – the gift should be provided to the customer at the till. FIFO rules. remove the old crates. below heapers and in back room. . Employees removed expired products from the shelves and take them to the back of the store. In case of F&V. place the new crates on the racks and then place the older products on top of the newer products – FIFO Checking of temperature of chillers and freezers is also a part of SDM. 7) Stock Display Management Filling up the gaps on the shelves for SKU sold during the day is defined as spot fill. The thing which is strictly followed is removal of damaged part of the F&V will not be carried out at the shop floor under any circumstances. ASM/SM briefs the staff at the morning and afternoon meeting on the promotion details. It is the process of checking and moving stocks to ensure that the older stock gets sold before the newer ones.
but places an order on phone by calling either at the store or at the call centre. Home delivery associate (HDA) – billing and delivery. Eicher map Outline on the map the catchments which fall in 2 Km radius of the store.g. Purchase a detailed street map of the local area e. EXPIRY:- . rickshaws & it is decided by store manager. picking and billing. The payment in this case for the goods has already been received. The payment in this case would be received once the delivery CSA goes to the customer destination and hands over the goods. Phone Orders . Sweet counters etc. picked items. Big orders store hire auto. Procedure for selling loose staple products to the customer in desired quantity. There is two type of home delivery which is given by the RF: Convenience order – this is a situation in which the customer has come to the store. Procedure for managing the concessionaire in our stores like the Pickles counters. Employees identify & segregate near expiry products for mark down as per markdown policy and guidelines. got them billed and then request RF store team to deliver to his residence. They appoint two employees for Home delivery champions (HDC) – for order taking.This is a situation in which the customer does not carry out the activities of physically picking. Prepare a list of roads / building with in that area. billing etc. Home delivery: for this there is some procedure which is followed by stores. 8) Managing waste and markdowns : (a) Segregation of damaged and expiry in store :(a) For F&V crates are received carefully for the item not for sale as per reliance retail quality and are removed from the shelf. (b) It is done by CSA / F&V champion.
. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager. Up to Rs 30 or 30% of SP(whichever is lower) & it is also done by DM / AM. all the dump are entered into dump register in the presence of SM with his /her signature.(a) Near expiry product is markdown as per the RR rule.Treatment for damaged & expired product are done in following manner:Loss type (a) Type C damage (b) All expiry – (DC supply & DSD without RTV) (c) Expiry – (DC supply with RTV) • • • • • Action Dump in store (shown in SAP) Dispose in store. fresh vendor at the time of next delivery For processing of dump (damaged & expired) approval is obtained from store manage. (c)Dump on arrival: On arrival of goods (F&V stock received from DC) poor quality goods are segregated. (b) An expired product is segregated and are treated as per following. Dumping of damages & expiry product:. For type C damaged product some part of each product is kept as proof. Further it is kept for inspection and area F&V executive is informed. Finally the dump register is present near DM/AM for approval (signature). (b)Markdown for damages and near expiry:Damaged and near expiry products are markdown as per the following rules: Markdown criteria:Up to Rs. Finally dumped stocks are hand over to garbage agency. PRODUCT TYPE DSD supply DC supply TREATMENT Exchange with fresh stock from the vendor at the time of next delivery Dump in store. Dump in system (SAP) Display in store Exchange with fresh stock. In the GRN (goods received roles) for the delivery. And the respective SM is informed. The entire dumped product is then get hand overed to garbage collection agency. Beyond Rs 30 or 30% of SP & it is done by state fresh head. poor quality stocks are entered as “Damaged Quality”. After dumping. It is kept in separate place in the store with the sticker “dumped on arrival – not for sale” along with receiving date. E-mail is send to the F&V head / F&V category head.
DSD returns are segregated as per category guidelines. (9) Returns:(a) Goods Return to DC: A finalized list of good stock article for return to DC is obtained from state merchandising team. Food and non-food items are packed separately. (b) Goods Return to Vendor: Stocks which are to be returned to vendor are taken out to the back room. (vi) HHTs are managed and ensured that they working properly etc. They are packed properly. 2 copies of vendor document are made and is got signed by the vendor. Following are checked and ensure:(i) GRN for all DC deliveries have been prepared. SKUs by count:(i) Product variants are segregated. etc) (i) Each loose article are weighed separately and quantity stickers are pasted. One copy is issued to the vendor and 2nd copy is filled as record. Return to vendor document is created in the store. (d) Stocks count and reconciliation: Objective of the count. It is managed with DC to ensure that there is no afternoon or evening delivery on the stocks count day. loose staples. (v) PI documents for stocks take is generated. Number of units are counted and stickers are pasted with the quality on SKUs. Back of store – store take SKUs by weight (F&V. According to the list stock of articles are segregated and are moved to the back office. the layout of the stores and the process are briefly explained to the staff. . Stocks take checklist is updated. (iii) All damaged products (type c ) have been dumped. (ii) It is continued until all SKUs are weighed. And GRDC is created in SAP for the quality to be returned. Security control register for returns are updated regularly (c) Physical verification of stock: All PI documents present in the system are checked and closed.. (iv) All expiry product have been dumped. Finally it is loaded and dispatched to DC in DC truck and return to DC documents is get signed by the truck driver and is kept with itself. For stock count staffs are delivered for counting of articles in fixtures and for entering the count in the HHT. Return schedule is obtained from the state merchandising team and packing of goods carton are planned. (ii) GRN for all DSD deliveries have been completed. In case the GRN is done at the back end maintain a record of the DUA and also record the some on the invoice that is sent to the commercial team. Returns are loaded to the vendor’s vehicle.
(iii) Entry for collection of keys and store opening details are recorded in the register kept at the security. and quantity or count stickers are pasted. (xi) Finally shutters are locked. . (vii) All air-conditioners are switched off except server room a/c (which must be maintained between 22-24 degree c ) (viii) Display lights and façade lights are switched off. (ii) PI documents are opened . (iv) It is continued in this manner till all the SKUs in the back of store is counted and the quantity is entered in the PI documents with the help of HHT. (iii) Similarly all the SKUs shelves and bays counted on sales floor and the count entry is entered in the PI document. (xi) The variation is checked and confirmed and then the difference is posted by posting the PI documents in ZSTORE. EAN/ article code on the products are scanned using the HHT and the counted number is entered.(ii) It is continued until all the SKUs are not counted. (v) Once all the articles in the store are counted and count entry is done in the HHT . (ii) Burglar alarm is put off. using the ‘Post ‘option under “Phy inv. engine oil and Diesel. (iii) Ensure that no customer is present inside the store. (x) Burglar alarm in the store is updated and key register is signed in. post the count data by pressing the “ post count” button in the HHT only. Post” in the physical inventory menu. (ix) Back room lock is sealed with a paper seal. (iv) POS & EDC closure process is performed. (f) Store closing:(i) Announcement is made for store closing 10 min before closing. (vi) Security guard is got to put paper seal on safe and almirah. of customer in the store. (v) Generators are checked for water level. (iv) Control sheet for the fixtures that has been counted are updated. (vi) HHT would display the list of SKUs for which count has been not entered then the article in the store is looked upon and count is updated in case the article is present in the store and count entry was missed earlier. (ii) No. (iv) Lights are switched on and all the equipments are checked for working made. (viii) Success log is checked to ensure that all the PI documents are successfully posted. of tills to be closed or operated fully depends upon the no. (ix) The stock take report is generated is SAP and inventory differences is listed. (vii) The final counted data is posted once again by pressing the “post count” button. (iii) PI count in the HHT is opened (all PI document together) and quantity is entered after scanning the EAN / article code of the SKUs from the product in the HHT PI document. (x) In case of major variations record is performed and the count in the PI document is changed and the count is reported. On the sales floor-stock take:(i) Counting and weighing of bays are started. (xii) The stock take check list lifted in the store. (e) Store Opening :(i) Store shutter is opened. (v) It is checked that equipment is in order or not after which the store is closed.
the area and population from which a region attracts visitors or customers FOOT TICKET FOOT TICKET DATE FALL SIZE DATE FALL SIZE 5/16/2009 462 205 6/1/2009 408 204 5/17/2009 365 198 6/2/2009 546 308 5/18/2009 487 345 6/3/2009 546 435 5/19/2009 567 342 6/4/2009 453 397 5/20/2009 452 354 6/5/2009 456 198 5/21/2009 354 189 6/6/2009 453 231 5/22/2009 436 301 6/7/2009 523 303 .ANALYSIS OF RELIANCE RETAIL STOREIN MONTH OF MAY 2009 Catchment area: .
5/23/2009 5/24/2009 5/25/2009 5/26/2009 5/27/2009 5/28/2009 5/29/2009 5/30/2009 5/31/2009 645 367 564 453 543 453 435 546 389 403 300 402 275 305 436 254 345 203 6/8/2009 6/9/2009 6/10/2009 6/11/2009 6/12/2009 6/13/2009 6/14/2009 6/15/2009 6/16/2009 6/17/2009 435 543 435 564 543 426 534 423 498 456 352 342 241 312 309 189 256 352 423 352 AVERAGE NUMBER OF TICKET SIZE BASED ON MALE AND FEMALE:- .
.Considering the above chart it can be concluded that female visit more as compare to the male counterpart and hence reliance fresh owner should consider about the female and should take more care of female in the sphere of services.protection and product availibilty also. AVERAGE NUMBER OF VISITOR BASED ON DIFFERENT AGE GROUP:- if we consider the above chart it can be easily concluded that the people between the age group 23-32 visit more and more in the reliance fresh store and hence store manager should take care of this age group peoples so that they may captivate them by giving various discount or facilities etc.
60 178.47 22.62 9. No 1 2 3 4 5 6 7 8 9 Store code 2118 2119 2120 2121 2122 2377 2445 2727 2812 Result Store Name SPG mart Trikuta hill Rathoid C.66 17.03 15.84 93 % 17.53 MTD Targe t 37. STOREWISE REVENUE (All the figures are in lakhs) SALES MTD MTD Achieve Archive d d% 34.81 22.87 8.7 LMTD Vs MTD 5% 2% 0% 9% 13 % 2% 11 % 5% 9% 7% .R Vyas Enclave L N Complex M R Tower Eyelex hinoo Prasad Motors Booty More Area 4163 2234 2111 2560 4832 1935 2800 5764 2440 28839 LMTD Achieve d 32.The targets for the current month to any store are assigned according to the sales figures of the preceding month.60 16.26 20.22 166. Usually the target for the current month is greater than the sales achieved for the last month by 10-15 % in normal conditions.58 21.65 20.58 92 % 8.72 26.59 87 % 17. They can also exceed to almost 25% in some cases where there is large scale supply of stocks of certain kind seeing upon the arising opportunity for their sale.55 20.08 16.56 193.55 93 % 100 % 88 % 85 % 92 % 95 % 92 % Sr .15 29.65 32.25 18.09 6.67 7.96 17.91 32.83 6.
represents the break-even point for the company.8 26.9 20.R Vyas Enclave L N Complex M R Tower Eyelex hinoo Prasad Motors Booty More Area 4163 2234 2111 2560 4832 1935 2800 5764 2440 28839 FTD 41.1 23. FTD sale/sq ft is assigned to each individual store from the Mumbai based headquarters of Reliance Retail SALES / PER SQ FT.0 28. labor costs.5 12.2 17.2 20. In case of May 2009 FTD takes into consideration.9 20.8 21. Reliance fresh stores in Ranchi have been able to achieve their break-even point for the month of May 2009. 31st days of operation from 1st may 2009 to 31st may 2009. of operation (from 7:00 AM till 9.2 21.4 11.1 18.5 34.3 11. logistics cost. electricity charges and up keep and maintenance charges.0 11.9 24.3 40.3 15.4 26.6 MTD 26.8 12.9 11.8 26. . Reliance Fresh stores are on verge of completing almost 2yrs of their operation in Ranchi district but they are yet to reach their breakeven point.30 PM). FTD (fixed till date) sale / sq ft.Reliance Retail calculates its input per store in form of sales / ft / day in total no.4 19.0 LMTD 25. No 1 2 3 4 5 6 7 8 9 Storecode 2118 2119 2120 2121 2122 2377 2445 2727 2812 Result Store Name SPG mart Trikuta hill Rathoid C. UPTO 31ST MAY 2009 Sr.0 So it can be seen that none of the nine operating. This cost of operation / input includes rentals.7 32.9 22.1 32.5 11. of hrs.
R Vyas Enclave L N Complex M R Tower Eyelex hinoo Prasad Motors Booty More Area 4163 2234 2111 2560 4832 1935 2800 5764 2440 28839 FTD 15.8 % 15.1 % 11.7 % 15.7 % 14.2 % 14.1 % 6. It was observed that due to practices like better in-store upkeep.4 % 12.7 % MTD 14.The Company assigns gross margin of operation to each individuals stores based on their past performances of sales.3 % 6.1 % 8.4 % 14.0 % LMTD 15. inputs in current month.7 % 13.9 % 15. GROSS MARGIN UPTO 31ST MAY 2009 Sr.1 % 16. Reliance Retail has a policy of not letting to exceed the shrinkage (loss of goods due to theft & pilferage) & dumping (loss of goods due to expiry) to individually exceed 2% of the total sales.5 % 14. L N Complex & Eyelex.8 % 11.5 % 14.5 % 14.9 % 14.1 % 14.8 % 15.1 % It can be seen that except store no Trikuta Hill.9 % 14.6 % 15.3 % 13. shrinkages and dumping.0 % 16.Out of the 47 Reliance fresh outlets in eastern region (including 9 from Ranchi) none have yet reached their BEP. none of these stores have been able to give the assigned levels of gross margin.9 % 16.3 % 13. No 1 2 3 4 5 6 7 8 9 Store code 2118 2119 2120 2121 2122 2377 2445 2727 2812 Result Store Name SPG mart Trikuta hill Rathoid C. supply close to demand .1 % 12.
0 1. No 1 2 3 4 5 6 7 8 9 Store code 2118 2119 2120 2121 2122 2377 2445 2727 2812 Result Store Name SPG mart Trikuta hill Rathoid C.0 3. Number of tickets means the total number purchases that were made during the entire month. MONTH TILL DATE (MTD) DATA UPTO 31ST 2009 Sr.0 2.4 2.5 1. For Prasad motor store only % age & shrinkage was high.Eyelex hinoo & Booty more store only (%) age dumping was high than the restricted limit. .R Vyas Enclave L N Complex M R Tower Eyelex hinoo Prasad Motors Booty More Area 4163 2234 2111 2560 4832 1935 2800 5764 2440 28839 Shrink% 1.2 Trikuta hill store.5 2.4 Dump% 1.4 4.5 1.3 2. the shrinkage & dumping were restricted to the desired level in almost of the stores..9 2.5 1. Vyas Enclave store.7 3.1 0.1 -0. & M R Tower had above restricted limit shrinkage & dumping. better surveillance etc.5 1.0 3. Whereas in Rathod circular road .6 2.4 2.
301 12.593 purchases.892 17.925 13.010 115.817 14.570 11. No 1 2 3 4 5 6 7 8 9 Store code 2118 2119 2120 2121 2122 2377 2445 2727 2812 Result Store Name SPG mart Trikuta hill Rathod C. Sales / tickets (ticket size) FTD represents the value of sales per purchase that the stores should make in order to reach the BEP margin.593 It was observed that against the target on only 4189 purchase all the 9 Reliance Fresh stores of Ranchi registered combinedly 115. No 1 2 3 4 5 6 7 8 9 Store code 2118 2119 2120 2121 2122 2377 2445 2727 2812 Result Store Name SPG mart Trikuta hill Rathoid C.074 8.R Vyas Enclave L N Complex M R Tower Eyelex hinoo Prasad Motors Booty More Area 4163 2234 2111 2560 4832 1935 2800 5764 2440 28839 FTD 298 126 156 146 248 92 212 170 172 192 MTD 227 112 128 118 192 82 176 145 151 154 . Sales /ticket (MTD) represents the value of sales per purchase actually achieved by the store.NUMBER OF TICKETS SIZE:Sr.R Vyas Enclave L N Complex M R Tower Eyelex hinoo Prasad Motors Booty More Area 4163 2234 2111 2560 4832 1935 2800 5764 2440 28839 FTD 576 309 460 573 634 237 532 537 340 4189 MTD 15. SALES PER TICKETS DATA UPTO 31ST MAY 2009:Sr.766 14.238 7.
5 of their operation and to become a profit making entity after that out of 9 stores in Ranchi all have completed their at least 1 – 2 years of existences but are yet to achieve their BEP. Reliance retail expected its Reliance Fresh venture to reach its BEP within a span of 1 – 1. . Company should increase the number of counter so that it may minimize the quie of the customers. Company should acquire more and more skilled people so that it may satisfied their customer in all areas. RECOMMENDATION COMMUNICATION: Based on my ovservation I found that reliance fresh is not able to make an advertisement properly as compare to big bazaar or other retail store which is its competitor. Many corporate houses was there who were reluctant to use bsnl lease line provided that someone assure them to have a promt services from them. so company should make a proper team to let the people aware about their schemes and offers being given by reliance fresh.In this case also it was seen that none of the 9 stores have reached the BEP. PROMTNESS IN SERVICES: Company should pay kind attention towards the existing customer and try to provide them quick response in the sphere of services so that they become BSNL’S loyal customers.
BEHAVIOR AND COMMITMENT: Behavior and commitments of sales man towards the dry outlets should be improved.india has a large market size and it is increasing day by day. After a rigorous period of my project I come to know that how practical knowledge is different from the theoretical concepts..I have learned various functions carried out at all the level of organization especially of middle level and lower level.Other players are Airtel Reliance and Tata. CONCLUSION It was a pleasant experience to have a summer project in a big company like BSNL. After all business is all about profit and retailer wants some profit and margins. . It has given me an opportunity to know all dimensions of the market and how to tackle problems of it . I was supposed to do project in Delhi where BSNL is playing major role in the field of telecommunication having a market share of approximately 73% .SCHEMES: Main competitor Airtel Tata and Reliance comes with various schemes and margins on the other hand Bsnl is not giving any sort of scheme and discount that is why many clients were inclined toward using the lease line offered by other players.
Company should give the clients more facilities so that they may became new clients and may continue through it. The company also needs a proper marketing wing to operate well in this areas and accomplish the goal . .From the survey and analysis of data it can be concluded that still there is a big opportunity to convert small and big clients. As BSNL is concern the company should become liberal on his policies. But some how company is lagging behind in the era of cutthroat competition .company is unable to make good relationship with corporate clients.mission and vision of the company. Main rival Airtel is trying to capture more market share with their new ideas and plan.
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