Reliance Digital

1.
Industry Profile
1.1 Indian Retailing: Retailing in India is one of the pillars of its economy and
accounts for about 15% of its GDP. The Indian retail market is estimated to be US$
450 billion and one of the top five retail markets in the world by economic value.
India is one of the fastest growing retail markets in the world, with 1.2 billion
people. India's retailing industry is essentially owner manned small shops. In
2010, larger format convenience stores and supermarkets accounted for about 4
percent of the industry, and these were present only in large urban centers.
India's retail and logistics industry employs about 40 million Indians (3.3% of
Indian population). Until 2011, Indian central government denied foreign direct
investment (FDI) in multi-brand retail, forbidding foreign groups from any
ownership in supermarkets, convenience stores or any retail outlets. Even single-
brand retail was limited to 51% ownership and a bureaucratic process. In November
2011, India's central government announced retail reforms for both multi-brand
stores and single-brand stores. These market reforms paved the way for retail
innovation and competition with multi-brand retailers such as Walmart, Carrefour
and Tesco, as well single brand majors such as IKEA, Nike, and Apple The
announcement sparked intense activism, both in opposition and in support of the
reforms. In December 2011, under pressure from the opposition, Indian government
placed the retail reforms on hold till it reaches a consensus. In January 2012,
India approved reforms for single-brand stores welcoming anyone in the world to
innovate in Indian retail market with 100% ownership. Indian government continues
the hold on retail reforms for multi-brand stores. Organized retailing, in India,
refers to trading activities undertaken by licensed retailers, that is, those who
are registered for sales tax, income tax, etc. These include the publiclytraded
supermarkets, corporate-backed hypermarkets and retail chains, and also the
privately owned large retail businesses.
CMR Institute of Technology, Bangalore

Unorganized retailing, on the other hand, refers to the traditional formats of low-
cost retailing, for example, the local mom and pop store, owner manned general
stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.
Organized retailing was absent in most rural and small towns of India in 2010.
Supermarkets and similar organized retail accounted for just 4% of the market. 1.2
Background of Indian retailing: Most Indian shopping takes place in open markets or
millions of small, independent grocery and retail shops. Shoppers typically stand
outside the retail shop, ask for what they want, and cannot pick or examine a
product from the shelf. Access to the shelf or product storage area is limited.
Once the shopper requests the food staple or household product they are looking
for, the shopkeeper goes to the container or shelf or to the back of the store,
brings it out and offers it for sale to the shopper. Often the shopkeeper may
substitute the product, claiming that it is similar or equivalent to the product
the consumer is asking for. The product typically has no price label in these small
retail shops; although some products do have a manufactured suggested retail price
(MSRP) pre-printed on the packaging. The shopkeeper prices the food staple and
household products arbitrarily, and two consumers may pay different prices for the
same product on the same day. Price is sometimes negotiated between the shopper and
shopkeeper. The shoppers do not have time to examine the product label, and do not
have a choice to make an informed decision between competitive products. India's
retail and logistics industry, organized and unorganized in combination, employs
about 40 million Indians (3.3% of Indian population). The typical Indian retail
shops are very small. Over 14 million outlets operate in the country and only 4% of
them being larger than 500 sq ft (46 m2) in size. India has about 11 shop outlets
for every 1000 people. Vast majority of the unorganized retail shops in India
employ family members, do not have the scale to procure or transport products at
high volume wholesale level, have limited to no quality control or fake-
versusauthentic product screening technology and have no training on safe and
hygienic storage, packaging or logistics. The unorganized retail shops source their
products from a chain of middlemen who mark up the product as it moves from farmer
or producer to the consumer. The unorganized retail shops typically offer no after-
sales support or service. Finally, most transactions at unorganized retail shops
are done with cash, with all sales being final.
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Until the 1990s, regulations prevented innovation and entrepreneurship in Indian
retailing. Some retails faced complying with over thirty regulations such as
"signboard licences" and "antihoarding measures" before they could open doors.
There are taxes for moving goods to states, from states, and even within states in
some cases. Farmers and producers had to go through middlemen monopolies. The
logistics and infrastructure was very poor, with losses exceeding 30 percent.
Through the 1990s, India introduced widespread free market reforms, including some
related to retail. Between 2000 to 2010, consumers in select Indian cities have
gradually begun to experience the quality, choice, convenience and benefits of
organized retail industry.
1.3 Growth of Indian retailing: Growth over 1997-2010 India in 1997 allowed foreign
direct investment (FDI) in cash and carry wholesale. Then, it required government
approval. The approval requirement was relaxed, and automatic permission was
granted in 2006. Between 2000 to 2010, Indian retail attracted about $1.8 billion
in foreign direct investment, representing a very small 1.5% of total investment
flow into India. Single brand retailing attracted 94 proposals between 2006 and
2010, of which 57 were approved and implemented. For a country of 1.2 billion
people, this is a very small number. Some claim one of the primary restraints
inhibiting better participation was that India required single brand retailers to
limit their ownership in Indian outlets to 51%. China in contrast allows 100%
ownership by foreign companies in both single brand and multi-brand retail
presence. Indian retail has experienced limited growth, and its spoilage of food
harvest is amongst the highest in the world, because of very limited integrated
cold-chain and other infrastructure. India has only 5386 stand-alone cold storages,
having a total capacity of 23.6 million metric tons. However, 80 percent of this
storage is used only for potatoes. The remaining infrastructure capacity is less
than 1% of the annual farm output of India, and grossly inadequate during peak
harvest seasons. This leads to about 30% losses in certain perishable agricultural
output in India, on average, every year.

Indian laws already allow foreign direct investment in cold-chain infrastructure to
the extent of 100 percent. There has been no interest in foreign direct investment
in cold storage infrastructure build out. Experts claim that cold storage
infrastructure will become economically viable only when there is strong and
contractually-binding demand from organized retail. The risk of cold storing
perishable food, without an assured way to move and sell it, puts the economic
viability of expensive cold storage in doubt. In the absence of organized retail
competition and with a ban on foreign direct investment in multi-brand retailers,
foreign direct investments are unlikely to begin in cold storage and farm logistics
infrastructure. Until 2010, intermediaries and middlemen in India have dominated
the value chain. Due to a number of intermediaries involved in the traditional
Indian retail chain, norms are flouted and pricing lacks transparency. Small Indian
farmers realize only 1/3rd of the total price paid by the final Indian consumer, as
against 2/3rd by farmers in nations with a higher share of organized retail. The
60%+ margins for middlemen and traditional retail shops have limited growth and
prevented innovation in Indian retail industry. Growth after 2011 Before 2011,
India had prevented innovation and organized competition in its consumer retail
industry. Several studies claim that the lack of infrastructure and competitive
retail industry is a key cause of India's persistently high inflation. Furthermore,
because of unorganized retail, in a nation where malnutrition remains a serious
problem, food waste is rife. Well over 30% of food staples and perishable goods
produced in India spoil because poor infrastructure and small retail outlets
prevent hygienic storage and movement of the goods from the farmer to the consumer.
One report estimates the 2011 Indian retail market as generating sales of about
$470 billion a year, of which a miniscule $27 billion comes from organized retail
such as supermarkets, chain stores with centralized operations and shops in malls.
The opening of retail industry to free market competition, some claim will enable
rapid growth in retail sector of Indian economy. Others believe the growth of
Indian retail industry will take time, with organized retail possibly needing a
decade to grow to a 25% share. A 25% market share, given the expected growth of
Indian retail industry through 2021, is estimated to be over $250 billion a year: a
revenue equal to the 2009 revenue share from Japan for the world's 250 largest
retailers.

The Economist forecasts that Indian retail will nearly double in economic value,
expanding by about $400 billion by 2020. The projected increase alone is equivalent
to the current retail market size of France.
1.4 The Indian Retail Market: Indian market has high complexities in terms of a
wide geographic spread and distinct consumer preferences varying by each region
necessitating a need for localization even within the ng geographic zones. India
has highest number of outlets per person (7 per thousand) Indian retail space per
capita at 2 sq ft (0.19 m2)/ person is lowest in the world Indian retail density of
6 densi percent is highest in the world. 1.8 million households in India have an
annual income of over 45 lakh (US$85,500). Delving further into consumer buying
habits, purchase decisions can be separated into two categories: status-oriented
and indulgence oriented indulgence-oriented. CTVs/LCDs, refrigerators, refrige
washing
machines, dishwashers, microwave ovens and DVD players fall in the status category.
Indulgence-oriented products include plasma TVs, state oriented state-of-the-art
home theatre systems, iPods, art high-end digital cameras, camcorders, and gaming
consoles. Consumers in the status category end buy because they need to maintain a
position in their social group. Indulgence Indulgence-oriented buying happens with
those who want to enjoy life better with products that meet their requirements.
When it comes to the festival shopping season, it is primarily the status oriented
segment that status-oriented contributes largely to the retailer’s cash registe
register. While India presents a large market opportunity given the number and
increas increasing purchasing power of consumers, there are significant challenges
as well given that over 90% of trade is conducted through independent local stores.
Challenges include: Geographically dispersed population, small ticket sizes,
complex distribution networ and little use of IT systems, network, limitations of
mass media and existence of counterfeit goods.

1.5 Major Indian Retailers: REI AGRO LTD Retail: 6TEN and 6TEN kirana stores Future
Groups-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station,
Brand Factory, Depot, aLL, E-Zone etc. Raymond Ltd.: Textiles, The Raymond Shop,
Park Avenue, Park Avenue Woman, Parx, Colourplus, Neck Ties & More, Shirts & More
etc. Fabindia: Textiles, Home furnishings, handloom apparel, jewellery RP-Sanjiv
Goenka Group Retail-Formats: Spencer’s Hyper, Spencer's Daily, Music World, Au Bon
Pain (Internaional bakery cafeteria), Beverly Hills Polo Club The Tata Group-
Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan Industries
with World of Titans showrooms, Tanishq outlets, Croma. Reliance Retail-Formats:
Reliance MART, Reliance SUPER, Reliance FRESH, Reliance Footprint, Reliance Living,
Reliance Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone, iStore
Reliance ADAG Retail-Format: Reliance World K Raheja Corp Group-Formats: Shoppers
Stop, Crossword, Hyper City, Inorbit Mall Nilgiri’s-Formats: Nilgiris’ supermarket
chain Marks & Spencer: Clothing, lifestyle products, etc. Lifestyle International-
Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores.
Pyramid Retail-Formats: Pyramid Megastore, TruMart Next retail India Ltd (Consumer
Electronics)(www.next.co.in) Vivek Limited Retail Formats: Viveks, Jainsons, Viveks
Service Centre, Viveks Safe Deposit Lockers PGC Retail -T-Mart India [1], Switcher,
Respect India, Grand India Bazaar,etc., Subhiksha-Formats: Subhiksha supermarket
pharmacy and telecom discount chain. Trinethra- Formats: Fabmall supermarket chain
and Fabcity hypermarket chain Vishal Retail Group-Formats: Vishal Mega Mart BPCL-
Formats: In & Out
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German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper Paritala stores
bazar: honey shine stores Aditya Birla Group - "More" Outlets Kapas- Cotton garment
outlets Nmart Retails with 71 operating Stores till now and total 153 Stores in
India and 1 to open in Dubai Shortly. (Expected to be 150 by the end of Aug-2012)

2. Company Profile 2.1 Background and inception of the company:
2.1.1 About Reliance Group The Reliance Group, founded by Dhirubhai H. Ambani
(1932-2002), is India's largest private sector enterprise, with businesses in the
energy and materials value chain. Group's annual revenues are in excess of US$ 58
billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500
company and is the largest private sector company in India.
Dhirajlal Hirachand Ambani (1932-2002) Founder of Reliance Group 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, fibre 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, fibre intermediates, plastics and chemicals),
textiles, retail, infotel and special economic zones. Reliance enjoys global
leadership in its businesses, being the largest polyester yarn and fibre producer
in the world and among the top five to ten producers in the world in major
petrochemical products. Major Group Companies are Reliance Industries Limited,
including its subsidiaries and Reliance Industrial Infrastructure Limited.
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2.1.2 About Reliance Retail Limited Reliance Retail Limited is an organized retail
arm of the Reliance Industries Limited. Reliance industry is the largest
conglomerate in India. It has an annual turnover of US$35.9 Billion. It is also
listed on 206th position in the Fortune Global 500 companies. Reliance Retail is
actually the retail group of Reliance Industries Limited. It has a number of brands
like Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance Autozone,
Reliance Super, Reliance Mart, Reliance iStore, Reliance fresh, Reliance footprint,
Reliance Jewels, Reliance trends, and Reliance living.
Reliance Group was established in 1970's. The Reliance Retail was found in the year
2006 as an operating subsidiary. It has its head office in Mumbai, India. Reliance
is gearing up to revolutionize the retailing industry in India. Towards this end,
Reliance is 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.

2.1.3 About Reliance Digital Reliance Digital is a Consumer Electronics, Durables,
IT & Telecom retail arm of Reliance Retail Group, a subsidiary of Reliance
Industries Limited hosts over 150 national and international brands of electronic
products. Reliance Digital Stores offer more than 4000 types of electronic
products. After a successful launch of Reliance Fresh stores across several towns
and cities in India, Reliance Retail Limited unveiled ‘Reliance Digital’ in the
year 2007, its pilot consumer electronics concept mega store. The new destination
for the latest in technology and entertainment products & services, and currently
58 Reliance Digital stores are operating in India.
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2.2 Nature of the business carried:
Reliance Digital Store is a one stop shop for different electronic needs of all
customers. May it be household appliances, computers, laptops, games or telecom
products; customers can find every gadget, for every budget at Reliance Digital. It
has over 4000 products at reasonable prices for its valued customers.
2.3 Vision, Purpose, Values and Promises:

2.3.1 Vision Reliance Digital seeks to fulfill the dream of every Indian, be it
through its nationwide network of conveniently located stores or through its
presence on the web, by providing a delightful shopping experience of products &
solutions and helping them bring home the latest & best in technology from the
widest selection at the lowest assured price with complete peace of mind through
lifelong support. Or more simply “We bring Technology to life for you” 2.3.2
Purpose • Growth is Life
“Bettering the lives of Indian everyday”
2.3.3 Values • • • • We believe in people We believe in and follow the customer We

believe in the good of the community We believe in each other
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2.3.4 Promises • • • A delightful shopping experience A delighted community A
delightful place to work
2.4 Products/ Services Profile:

Reliance Digital – The Merchandise Mix Complete range of • Consumer electronics •
Home appliances • Kitchen appliances • Computing & gaming • Personal audio • Mobile
communications • High-end audio & home theaters • High definition flat panel
televisions • Music and movies • Digital photography & photo printing • Accessories
to enhance product usage & experience • And lots more! More than 150 brands, 4000
products and countless solution bundles individually recommended to best suit the
customers’ needs.
Services Reliance Digital reviews all its products to provide the best to its
customers. It has a specially designed ‘Experience Zones’ to get the real feel of
the product before purchasing it. Reliance Digital provides financial assistance
through easy EMI Schemes; Company has appointed Bajaj Capital to provide financial
assistance to its consumers. Consumers have to make 40% down payment and the
remaining amount is distributed into 8 EMIs and interest rate varies from brand to
brand products. Reliance Digital has a ResQ facility, which serves the purpose of a
technical support team. It comes to rescue to provide solutions for problems that
customers may face with products from
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all leading brands. This facility is available 7 days a week; 365 days a year from
10 a.m. to 10 p.m. They have qualified engineers to deal with installation and to
guide you with the usage of the appliances.
ResQ services are Product installation: ResQ help to set up customers’ product for
optimum performance
Specialised customer training:

•
Specialised training to customers on products and related applications by an

industry trained personnel
Authorised Service Station for diagnosis and repairs (Caters to all brands)
• • •
One stop solution for repairs for all brands’ products Repairs covering both pre
and post manufacturer warranty periods On-site service for select products – for
the rest, our engineers shall transport products to and fro from the service
station
Demonstrate Product Usage:

• •
Live demonstration of all features of the product Provide handy care tips
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Health check-up plan: Preventive Maintenance
•
To ensure that products do not malfunction, resQ offer periodic services and
maintenance check-ups Tips on upkeep of products for optimal performance Also
covers products not purchased from Reliance Digital
• •
Enhanced Utility: ResQ Accessories

•
ResQ offer a host of utility products and accessories that are compatible with
products & help customers get more of them!
Extended Warranty Service- ResQ Care Plan

• •
Free repairs, including both parts and labour Free preventive maintenance visits
during plan period
2.5 Area of operation – National:

Reliance Digital is a Consumer Electronics, Durables, IT & Telecom retail arm of
Reliance Retail Group, a subsidiary of Reliance Industries Limited, and currently
58 Reliance Digital stores are operating in India and 9 stores are operating in
Bangalore.
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2.6 Ownership pattern:
Reliance Industries Limited
Refining
Textiles
Retail
Reliance Gas & Reliance Aviation
Vimal Vimal Gifting & V2 Vimal
Reliance Digital Reliance fresh Reliance footprint Reliance Jewels Reliance trends
Reliance Petroleum Retail Roxy Office Depot GAPCO And many more
Petrochemicals Polyester & Fibre Intermediates
Petrochemicals - Polymers
Recron Stretch Recron Cotluk Recron Dyefast Recron 3s Recron LP Relpet And many
more
Repol Relene Reon Cisamer & Relab
Reliance industry is the largest conglomerate in India, having number of brands

with the different businesses. The ownership pattern of Reliance Digital can be
explained as - Reliance Industries Limited has different subsidies; Reliance Retail
Limited is one among the subsidies and under which Reliance Digital is one of the
Retail Business of Reliance retail. Reliance Digital or the Reliance Retail Limited
has not listed in stock market individually but Reliance Industries Limited (RIL)
as whole listed under stock market where all the subsidies of RIL is considered to
be a group and listed in the stock market. Hence Reliance Digital is a Public
Limited Company and Mr. Mukesh D. Ambani is the Chairman and Managing Director of
Reliance Industries Limited.
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2.7 Competitors Information:
Croma Croma is India’s first national, large format, specialist retail chain for
consumer electronics and durables. Croma is promoted by Infiniti Retail Ltd, a 100%
subsidiary of Tata Sons. Woolworths, one of the world’s leading retailers, provides
technical and strategic sourcing support, ensuring that you buy nothing but the
best. Croma's first store opened on October 9, 2006 at Juhu in Mumbai, and it's
rolling out many more stores across India.
Brand Philosophy If service wasn't important. If technology wasn't complex. If

variety wasn't confusing. We would have no reason to be in business. We help you
buy.
eZone eZone is an experience-led lifestyle format that brings together the best in
national and international consumer electronic and durables brands in a family-
centric environment. Typically covering 12,000 square feet, an eZone store truly
enables you to experience electronics through three dedicated zones - Liberation
Zone, Experience Zone and Home Zone. The Liberation Zone offers personal products
like computers, laptops, handy cams, MP 3 players and mobile phones. Entertainment
products such as Plasma / LCD, Flat TVs, Home Theatre systems, DVD players, and
Stereo systems are displayed in the Experience Zone. In the Home Zone segment, one
gets to pick electronic goods of his or her choice including Refrigerators,
AirConditioners, Washing Machines and Microwave ovens among other kitchen-related
appliances. eZone also offers an unparalleled service and support through the
special ‘E-Care’ customer support centre. E-Care is a special, dedicated support
system designed to offer the best customer service after purchase of any product at
eZone.
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Others There are other unorganized consumers electronic and durables brands such as
Pai International, Girias and Harsha Electronics are operating in Karnataka and
some other states of the country and these can be called as local market
competitors but these brands are not to be considered as competitors for Reliance
Digital Retail Limited.
2.8 Infrastructural facilities:

Planogram Also known as plano-gram, plan-o-gram, and POG, planogram is a visual
representation of a store's products or services considered as a tool of visual
merchandising in retail store.
Signage Signage is kind of visual graphics created to display information about

products to customers.
Experience Zones Experience zones take consumers through a delightful and

interactive voyage in the world of electronics and durable goods. Crafted with the
latest signage, audio and merchandising where customers can experience the products
before purchasing.
Home theater experience zone It is an exclusive experience zone in reliance digital

store. It is a small room arranged well furnished with sound systems where
consumers can experience the home theaters before purchasing.
Play station Play station is advanced video gaming station where customers who
visit the store can play and have delightful shopping experience with reliance
digital.
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Learning Center Learning center is training center that is located within the
reliance digital store where employees are trained on the products those arrived in
the store and usually this center is used for meetings in the store.
2.9 Work flow model:

The nature of the business is retailing hence the manufacturing of goods is not
involved with reliance digital instead goods are ordered and brought into stores
for the retail sales. The numbers of products from the different brands with
different product ranges are recruited into stores and further sales is made so the
work flow model could be Operating Model and Stock k Ordering Process.
Operating Model
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Operating Model Explanation 1. The operating model begins with Pre – installation
Counseling & queries of customers basically this happens though telephonic queries
by customers or approach to know about product available in reliance digital and
this step will supported by resQ team. Usually this will not be the initial step in
most of the cases, customers directly approach store to know about the products. 2.
The second step could begin the actual operating model because most of the
customers first approach store and get to know details about their required
product, when customers walk in to the store employees counsel the customers,
attend their queries and also understanding their requirements they provide
consultative solution to customers and this can be considered as beginning step of
operating model. 3. After counseling and consultation when customer make the
purchase of goods, delivery of goods will be supported by Reliance D&L Team, team
also help customer in exchange and product pick-up in case of any replacements
after sale of goods as post sales service. 4. When goods are delivered to customers
by D&L team, reliance resQ team helps customers by Demonstration and Installation
of product at customers place. 5. And after sales services such as extended
warranty/maintenance and repairs will be supported by resQ team in the company. 6.
And also replacement and up gradation of products will be supported by resQ team
and further queries regarding products etc will handled by resQ team, with this
again operating model may continues as discussed above.
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Stock Ordering Process
Reliance Digital has classified electronics and consumer durable goods into four
departments as 1. Consumer Electronics 2. Home Appliances 3. Information Technology
4. Telecommunication
When the goods in the departments need to be ordered; each department follow the
following procedure for ordering the stock.
Stock Ordering Process

Stock Ordering Process Explanation 1. Stock report of every product is verified
regularly by all the departments. . 2. In case there is no stock or less quantity
in the stock for the products, stock ordering mail has to be sent to the category
department of respective section requesting the list of goods required in the
department with the complete details such as Product, Brand Name, Article code and
Quantity, and ordering mail should have store code. 3. Category department is a
central body present in the Mumbai corporate office, category department place the
order to respective Brands to deliver the goods to central ware house of the state.
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4. Brand people deliver ordered goods to respective central ware house, central
ware house become the distribution center for the stores. 5. Distribution center
sends the goods to the stores those are ordered. 6. When the goods arrive to the
store goods are received by material department of store. 7. And finally goods are
sent to the respective departments. 8. Each department has to update its stock
report every day for the stock reference and keep follow up on stock level.
2.10 Future Growth and Prospectus:

At a time when inflation and high input costs are putting pressure on margins of
retail companies, Mukesh Ambani-led Reliance Retail expects its specialty and value
formats driving the firm’s next stage of growth. Reliance Retail’s value formats
include Reliance Fresh, a neighborhood retail concept, Reliance Mart, an all-under-
one-roof supermarket concept, and Reliance Super, a mini-mart concept. The value
formats offer a wide range and assortment of products required for daily household
needs. Its specialty formats include Reliance Digital, consumer durables and
information technology concept, Reliance Trends, apparel and accessories concept,
and iStore by Reliance Digital, an exclusive Apple products stores. Other specialty
formats include Reliance Footprint for footwear, Reliance Jewels, and Reliance
Living, a home wear, furniture, modular kitchens and furnishings concept. Reliance
Retail plans to double its stores across all formats within next five years. At
present, it has more than 1,050 stores and a pan-India presence. Reliance Digital
Retail Limited will have 100 stores by the year 2014 in pan India. And also company
planning to provide financial assistance to the reliance digital customers by the
reliance group as of now it has appointed Bajaj Capital for the financial
assistance to Reliance Digital customers.
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3. The McKensy’s 7S Framework
The McKinsey 7S model The McKinsey 7S model was named after a consulting company,
McKinsey and Company, which has conducted applied research in business and
industry. The McKinsey 7S Framework was created as a recognizable and easily
remembered model in business. The seven variables, zable which the authors term
"levers", all begin with the letter "S": These seven variables include structure,
strategy, systems, skills, style, staff and shared values. Structure is defined as
the skeleton of the organization or the organizational chart. The authors describe
strategy as the plan or course of action in allocating resources to achieve
identified goals over time. The systems are the routine processes and procedures
followed within the organization. Staff are described in terms of personnel
categories within the organization (e.g. engineers), whereas the skills variable
refers to the capabilities of the staff within the organization as a whole. The way
in which key managers behave in achieving organizational goals is considered to be
the style variable; this variable is thought to encompass the cultural style of the
organization. The shared values variable, originally termed super ordinate goals,
refers to the significant meanings or guiding concepts that organizational members
share.
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From above 7, three are called Hard ‘S these are such as Strategy System Structure
And other four are called Soft ‘S’, namely Skills Staff Shared value Style
McKinsey’s 7s at Reliance Digital Strategy Strategy is the plan of action an
organization prepares in response to, or anticipation of, changes in its external
environment. Strategy is differentiated by tactics or operational actions by its
nature of being premeditated, well thought through and often practically rehearsed.
Reliance Digital routinely have different campaigning strategies for their new
products and to move stock which offer exciting sales promotion offers for the
customers to persuade them to know the product and purchase it. For e.g. During
Christmas and New Year sale they had up to 50% discount on products. Reliance
Digital uses display fixtures to communicate and educate customer about the sales
promotion and they decorate the window areas with the products related to their
promotion.
System The system that Reliance Digital has for its sale of goods is friendlier and
assists customer in purchase of products. The procedure that they follow in
Reliance Digital for sale of product is initially when customers walk in to store
junior sales associate welcome customer in to store by greeting them and ask them
how he can assist them, when customer ask him about his required product junior
sales associate takes customer to that particular department and leaves customer to
Senior sales associate or Team leader to attend the customers, here the person
attend customer queries and explain about product features and benefits. And also
consult them to go for
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particular product. When customer makes purchasing decision the same person takes
customer to cash counter to make bill of the purchased product and when customer
reaches cash counter ter cashier at counter greet the customer and makes billing
and keep the product in Reliance Digital carry bag and hand over to customer in
case goods are heavy to carry there are store boys who help customer taking them
out of store and keep the products in their vehicle and if the products are huge in
size they make delivery arrangement through D&L Team.
Structure The design of organizational structure is a critical task of the top

management of an organization. It is the skeleton of the whole organization. It
prescribes the formal relationship among various positions and activities.
Organisation Structure
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Store Hierarchy
CMO – Commercial Operations Manager VM – Visual Merchandiser DM – Department

Manager CE – Consumer Electronics Telecom – Telecommunication HA – Home Appliances
IT – Information Technology TL – Team Leader SSA – Senior Sales Associate JSA –
Junior Sales Associate MOO – Material Operational Officer MOE – Material
Operational Executive CRM – Customer Relationship Manager SHE – Senior Helpdesk
Executive JHE – Junior Helpdesk Executive
25

Skills Employees must have products knowledge and they should have skills to
persuade customer to purchase product. At Reliance Digital Company provide training
to the employees on products which help employees to make sale of product with
their best knowledge of product and skill. In successive intervals the company
sends mystery shoppers to stores to evaluate the performance of the employees and
they rate the performance of employees in the store and report to the company if
the training is required company arranges for it. And whenever new product has
arrived to store they provide training on that particular product in the store
learning center. During the training conducted by the company they make sure that
the employees are aware about the products information and also sales associates
are given proper selling skill tips and training on selling procedure. Employees
are also trained on how to greet and groomed to their best ability and they are
trained to handle all minor issues encountered in the store.
Staff Organizations are made up of humans and it's the people who make the real
difference to the success of the organization in the increasingly knowledge-based
society. The importance of human resources has thus got the central position in the
strategy of the organization, away from the traditional model of capital and land.
Reliance Digital has 58 stores in pan India and has got more than 1000 employees
working for the company.
Shared value • • • • We believe in people We believe in and follow the customer We

believe in the good of the community We believe in each other
26

Style Reliance Digital has a very friendly environment for all the employees .The
management follows top/down and bottom/up approach. Where in top management
transfers the information from the higher level to the lower level. The target and
objectives are set by the top level managers and are delegated to the lower level
managers those in turn transfer to Team leader and sales associates in the store
level, hence all the major decision are taken by the higher authority and shared to
the lower level. The lower level employees i.e., Team leader and sales associates
revert back to the daily reports to the Department manager who in turn reports to
the store manager and further store manager to his higher authority and it
continues. Every employee has a participative approach towards the business. Every
employee is concerned with his Duties, Responsibilities and accountability for the
happening of the event and employees have to report to their higher authority at
regular intervals.
27

4. SWOT Analysis
Strength: • • • • • Brand Name Reliance - Reliance Industries Limited, is a Fortune
Global 500 company and is the largest private sector company in India. resQ
Services - The dedicated service arm that is available for support all 365 days of
a year, from 10 a.m. to 10 p.m. Network - Over150 international and national
brands. Private label sale – Some of own products (Reliance Reconnect). Product mix
- One-stop shops for all technological solutions, it has over 4000 products at
reasonable prices.
Weakness: • • • Poor inventory control. Inadequate human resources. Operating costs

are too high.
Opportunity: • • • • • Potential for investment. High growth potential. E-

retailing. Retail franchising. Wholesale trading.
Threat: • • • • Increasing competitor’s market share. Price war with competitors.

Inflation. Competition offered by Chinese products.
28

5. Analysis of Financial Statements
Reliancedigital Retail Limited Balance Sheet as at 31st March, 2010
29

Analysis: • Long term funds increase in 2010 compare to the year 2009. Share
capital remains unchanged where Reliance Digital Retail Limited borrowed more funds
in the form of secured and unsecured loans. • • The investment in fixed assets is
increased to 10448.63 lakhs in 2010 from 8509.70 lakhs in 2009. The investment on
current asset increased from 3989.34 lakhs in 20009 to 6790.10 lakhs in 2010.
Interpretation: The Reliance Digital Retail Limited investing more money in the
form of fixed assets. The current liabilities are not sufficient to meet the
regular requirements and also company is using long term funds to finance current
assets.
30

Profit and Loss Account for the year ended 31st March, 2010
The sale is increased from 31628.01 lakhs in 2009 to 41186.78 lakhs in 2010. Though
sales has increased when comparative to last year the loss margin increased in 2010
because of increased in the operating expenses. Reliance Digital Retail Limited
should take measures to reduce operating expenses.
31

6. Learning Experience
Opting for internship at reliance digital was an opportunity for me to understand
the retail industry and its nature of business. Understanding Retail management
difference in organized retail and unorganized retail was a huge scope for my
learning, the process and operation in organized and unorganized retails has a lot
of difference that I could able to compare in my learning. Using theoretical
knowledge of Marketing and Retail Management I found how practically the strategies
are implementing in organized retail and also I could find some areas of
improvement that can be done in the company. Learning about merchandising and
stocking in retail for the sale and motivating sales team was a good exposure. I
could find the level of difficulty in convincing customers and the pain that sales
team undergoes to make a sale of product. In my course of the study I understood
all the factors those are to be considered for an effective sale where I could find
how merchandising plays a vital role in attracting customers and stimulate them to
buy the product. I understood the flow of work and the organizational hierarchy
from top level management to the store level. And also I could understand the
motivational factors that make employees to have job satisfaction in the
organization. Customer’s mentality towards promotional sales programme also led me
to understand that people look for price prior to the quality or the actual
product. Overall exposure to Retail Management was an eye opener to me as how
business is carried out and what all should be considered for making sales and to
have effective retail management.
32

7. General Introduction to The Study
7.1 Statement of the problem Online advertisement being the one of the most
effective advertisement channel for the any brand or product, when company would
like to go for the internet or online advertisement it is necessary to understand
the customers or internet users’ perception and behavior towards the advertisement
that is posted on internet. When the company plan to establish E Commerce
distribution channel it is essential to have internet advertisement strategies to
ensure that it has high reach to internet users or customers, that would create
awareness of online distribution of the products by the company as well as it
promote the brand name. Therefore the statement of the research problem would
become the designing the strategies for internet advertisement for the retail
industry particularly electronic and durable retail segment hence the title of the
project is “A Study on Developing Effective Internet Advertising Strategies with
Respect to Reliance Digital at Bangalore”.
7.2 Objectives of the study • • • • • To study internet advertisement strategies To

study online advertisement strategies with respect to Reliance Digital To study
perception of customers on internet advertisement To study customers awareness and
preference for online purchasing To suggest measures for improvement to the company
7.3 Scope of the study Reliance Digital management is planning to establish e-

commerce distribution channel to make easily available electronic and durable goods
to their customers since it is necessary for the company to advertise their brand
on internet. Therefore study on developing effective advertising strategies over
internet would help the company to have advertisement strategies for online
advertising.
33

7.4 Methodology Universe: The respondents for the study will be the people who have
awareness about use of internet and already using internet for the various purpose
and the respondents can or cannot be the customer of Reliance Digital but the
respondents would have knowledge about electronic and durable goods. Sample Frame:
The research is limited to Bangalore city. Sample Size: The size of the sample is
100. Sampling Technique: The technique used here is the non probability sampling
method, convenience sampling technique.
7.5 Data collection method Primary Data collection method has been used; the
information for the study collected from the respondents who have the awareness of
internet and using the internet for various purposes, Primary data was collected
from internet users to know the awareness of online purchasing and the perception
towards internet advertisements which would help in designing advertisement
strategies.
7.6 Tool of data collection The tool used to collect the data was the questionnaire
which consists of multiple choices, open ended and close ended questions to measure
the internet users’ attitude and perception towards internet advertisement and also
awareness of online purchasing.
34

7.7 Analysis Techniques The collected data were analyzed using simple average
method and Chi-square Test. • Simple average method
Number of respondents for the particular research

------------------------------------------------------------------- X 100 Total
number of respondents • Chi-square (X2) Test
X2 = ∑ (Oi – Ei)2/ Ei Where Oi = the frequencies observed Ei = the frequencies

expected ∑ = the ‘sum of ’
7.8 Limitations of the study 1. The survey research is limited to Bangalore city
only. 2. The respondents’ response may be bias. 3. As the sample size is 100, it
may not be sufficient to get accurate data.
35

8. Data Analysis, Interpretation and Observation
• How often respondents make use of internet Options Percentage (%) Once in a day
39 Twice in a day 28 Once in two days 10 Once in a week 7 Almost 24*7 16 Total 100
Table 8.1 Analysis Form the above table we come to know that 39% of the respondents
browse internet once in a day, 28% twice in a day, 10% once in two days, 7% once in
a week and 16% of respondents browse internet almost 24*7.
Almost 24*7 16% Once in a week 7% Once in two days 10% Twice in a day 28%
Once in a day 39%
Chart 8.1
36

Inference The study shows that 39% of respondents browse internet once in a day it
is being the highest and 16% of respondents browse internet almost 24*7. Therefore
55% of respondents browse internet on daily bases so with this we can notice that
more than half of the internet users making use of internet for various purposes in
their day today life, hence internet being the best channel for communication to
create awareness about product or brand.
Websites that respondents browse often
Websites Facebook Google Wikipedia Gmail Yahoo Youtube Others Total
Total Responses 89 95 14 58 45 23 33 357 Table 8.2
Percentage of Responses (%) 24.93 26.61 3.92 16.24 12.60 6.45 9.25 100
Analysis The above table reveals that respondents browsing websites often in their
regular intervals 89 respondents using social networking website Facebook, 95
respondents says they browse google, 14 browse Wikipedia, 58 Gmail, 45 Yahoo, 23
Youtube and also 33 respondents browse other websites viz., Rediffmail, Skype,
twitter, linkedin, hotmail, moneycontrol, orkut, indiatimes, songspk, torrento,
irctc, icccricket, bcci, news.com etc.
37

100 90 80 70 60 50 40 30 20 10 0
89
95 58 14 45 23
33
Chart 8.2 Inference From the survey we can find that 95 respondents use search
engine google and Wikipedia is also being one of the search engine but only 14
respondents are using it where social networking website Facebook having highest
usage by the respondents, other social networking website such as twitter, likedin
and orkut etc having less usage by the same respondents. Gmail, Yahoo and kut
Youtube are used by 58, 45 and 23 respondents respectively. Other websites include
Rediffmail, Skype, twitter, linkedin, hotmail, moneycontrol, orkut, indiatimes,
songspk, torrento, irctc, icccricket, bcci, news.com etc. these all together
mentioned by different respondents. By the survey we come to know websites
viewership by the respondents. •
Respondents browsing internet for advertisement
Options Yes No Total
Percentage (%) 37 63 100 Table 8.3
38

Analysis 37% of respondents browse internet for advertisement to know the product
features, price, offers and discount. And also for the comparison of products on
which they are in need and some respondents think that browsing advertisement on
required product saves time in searching for the information about the products.
Yes 37%
No 63%
Chart 8.3 Inference From the chart 03 we can conclude that 37% of the respondents
browse adve advertisement for various reasons on their required product therefore
posting advertisement of the products might reach to these people on their
requirement time ese time. •
How respondents read promotional emails Options Percentage (%) Always 3 Sometimes
48 Often 11 Seldom 6 Hardly 20 Not at all 12 Total 100 Table 8.4
39

Analysis From the Table 04 we can see that only 3% of the respondents read all the
promotional emails and 12% respondents do not read at all, 48% respondents say they
read sometimes, 11% often, 6% seldom, and 20% hardly read promotional emails.
Not at all 12%
Always 3%
Hardly 20% Sometimes 48% Seldom 6% Often 11%
Chart 8.4 Inference Study shows that only 3% reads all promotional emails and 12%
do not read at all and from rest 85% we can come to conclusion that they read
rarely. Hence mailing promotional emails may be one of the ways to create brand and
product awareness.
Respondents aware of online shopping websites
40

Analysis 77% of the respondents have awareness about the online shopping websites
and 23% do not have awareness. Therefore we can see that 77% of the internet users
have awareness about e ecommerce websites.
No 23%
Yes 77%
Chart 8.5
Inference From the study we can draw inference that 77% internet user in the market
are aware of ecommerce websites hence these 77% of the internet users can be
potential customer for the company perhaps the company open an e commerce
distribution channel to make electronic and e-commerce durable goods available
easily to customers. And here we will come to know about the market ome awareness
about online shopping websites.
41

•
Awareness of online shopping websites
Total Percentage of Online shopping websites Responses Responses (%) 31.51 Flipkart
52 13.33 Snapdeal 22 6.67 OLX 11 5.46 Homeshop18 9 10.90 Ebay 18 7.88 Amazon 13
8.49 Myntra 14 4.24 Naaptol 7 11.52 Others 19 100 Total 165 Table 8.6
Analysis From the table we can see that 52 respondents has awareness about flipkart
online shopping website out of 77 respondents who has awareness about online
shopping websites, 22 respondents know about snapdeal, OLX is known to 11
respondents and homeshop18, Ebay, Amazon, Myntra, and Naaptol known to 9, 18, 13,
14 and 7 respondents respectively and also 19 respondents mentioned other shopping
websites viz., futurebazaar, Mginger, indiatimesshoping, inkfruit,quicker, tradus
etc.,.
42

60 50 40 30 20 10 0 22 11 9 18 13 14 19 7 52
Chart 8.6
Inference In the chart 06 we can see flipkart is the online shopping website well
known to all most all respondents i.e. 52 respondents have mentioned flipkart
website out of 77 respondents who have awareness about online shopping w websites.
Snapdeal stands in the second palce 22 respondents mentioned snapdeal and ebay
being the third highest and also we can see OLX, Myntra, Naaptol nd etc holding
their position in the market through this survey. Here we can understand market
awareness of different e-commerce websites. commerce •
Respondents have purchased products online in their past
Options Yes No Total Analysis
From Table 07 we will come to know that 39% of the respondents purchased different
products from various online shopping websites and 61% of the respondents have not
purchased any of the products online. And 39% respondents who have purchased have
mentioned products that
43

they have purchased online they are pen drive, books, jewels, mobile, shoes,
clothes, wrist watch, iphone, micro oven, hard disk, laptop and movie tickets.
Yes 39% No 61%
Chart 8.7
Inference From the Chart 07 study shows that 39% of the respondents purchased
different products from online shopping websites and the products have already
mentioned in analysis of table 07. With this information we can come to conclusion
that 39% of the respondents purchased online and also mentioned electronic goods
that they have purchased such as mobile, pen drive and laptop and home appliance
micro oven. Chi-square (X2) Test Chi-square test at 5% level of significance Age
Group 20 - 25 25 - 45 Above 45 Yes 9 24 6 39 No 20 30 11 61 29 54 17 100
Ho: Online purchase made for products and the ages are independent. E (1, 1) =
39*29/100 = 11 E (1, 2) = 61*29/100 = 18
44

E (2, 1) = 39*54/100 = 21 E (2, 2) = 61*54/100 = 33 E (3, 1) = 39*17/100 = 7 E (3,
2) = 61*17/100 = 10
Oi 9 20 24 30 6 11 100
Ei 11 18 21 33 7 10 100
(Oi – Ei)2 4 4 9 9 1 1
[(Oi – Ei)2 / Ei] 0.364 0.222 0.429 0.273 0.143 0.100 1.531
X2 cal = 1.531 X2 table = 5.99 [2 degree of freedom] 2 Degree of Freedom because

(3-1) * (2-1) = 2 Degree 1.531<5.99 X2 cal < X2 table Therefore accept Ho
Respondents view about statement “Online marketing would take over traditional
marketing in next 10 years” Options Percentage (%) Strongly agree 29 Agree 51 Can't
say 18 Dis-agree 2 Strongly dis-agree 0 Total 100 Table 8.8
45

Analysis 51% of the respondents agree to the statement online marketing would take
over traditional marketing in next 10 years, 2% dis agree to the statement and 18%
of the respondents leave view that can’t be said and in which 29% of the
respondents strongly agree to the statement.
Disagree, 2%
Strongly disagree, 0%
Can't say, 18%
Strongly agree, 29%
Agree, 51%
Chart 8.8
Inference Study shows that respondents are very optimist about the online marketing
only 2% of the respondents dis-agree to the statement “Online marketing would take
over traditional marketing in next 10 years” and 18% says that it can’t be said but
together 80% of the respondents are optimist about the statement. This would help
the study to draw inference about perception of the respondents with respect to
online marketing against traditional marketing.
46

•
Easiest ways to get information about required product
Medium News paper T. V. Ads Internet Product brochures Pamphlets Hoardings/Banners

Others Total Analysis
Total Responses 36 55 76 9 6 12 3 197 Table 8.9
Percentage of Responses (%) 18.27 27.92 38.58 4.57 3.05 6.09 1.52 100
Table 09 shows that internet being the easiest way to get information about
required product, 76 respondents mention internet. T.V Ads stand in second place
where 55 respondents feel that it is another easiest way to get information about
required product, news paper stands in third place 36 respondents mentioned news
paper Product brochures, pamphlets, & hoardings/banners paper. roduct mentioned by
9, 6 & 12 respondents respectively. 3 respondents mentioned others they are Mobile
SMS i.e. promotional messages and friends recommendation.
80 70 60 50 40 30 20 10 0
76
55
36 12
Chart 8.9
47
3 3
Inference From the chart 09 we can conclude that internet is the easiest way to get
information about required product, 76 respondents mentioned internet. 55 mentioned
T.V.Ads and 36 mentioned internet. news paper. Therefore posting ads of the
products would be effective way for advertising since the study shows reach is very
high than any other medium. •
Respondents prefer to watch motion advertisement on websites
Analysis From the Table 10 we can see that 78% of the respondents would prefer to
watch motion ads on websites and 22% respondents will not prefer.
No, 22%
Yes, 78%
Chart 8.10
48

Inference Survey says that 78% respondents prefer to watch motion ads on websites
with this information we can conclude that posting motion ads on websites would be
effective in order to make best advertisement strategy. •
Respondents view about the statement “Internet advertisement is more effective than
conventional advertisement”
Options Percentage (%) Strongly agree 10 Agree 53 In differentiate 21 Dis-agree 16

Strongly dis-agree 0 Total 100 Table 8.11 Analysis 53% of the respondents agree to
the statement “internet advertisement is more effective than conventional
advertisement”, 16% dis-agree to statement, 21% says cannot differentiate and 10%
says strongly agree to the statement.
Strongly disagree 0% Dis-agree 16% Indifferentiate 21%
Strongly agree, 10%
Agree, 53%
Chart 8.11
49

Inference From the chart we can see that 53% of the respondents agree to the
statement “internet advertisement is more effective than conventional
advertisement” and 10% strongly agree to the same statement hence we can understand
here the perception of the respondents against internet advertisement and its
effectiveness. •
Search for information on required product over internet
From the Table 12 we can see that 98% of the respondents search for the information
on required products only 2% of the respondents do not search for the information
on their required products over internet.
No, 2%
Yes, 98%
Chart 8.12
50

Inference By the Chart 12 we can draw inference that since 98% of the respondents
search for the information on their required products over internet hence posting
information about products with the advertisement on internet would have higher
reach than any other medium to the any internet users.
Online purchase preference by respondents
Table 13 says that 49% of the respondents prefer online shopping where 51% of the
respondents do not prefer online purchase. We can see that almost half of the
internet users prefer online . purchase/shopping.
No 51%
Yes 49%
Chart 8.13
51

Inference In the Chart 13 we can see that almost half of the respondents prefer
online purchase hence by the survey we can draw conclusion that having an e-
commerce channel to a company might increase its revenue and sales because 49% of
the respondent says that they prefer online purchase. •
Willingness to buy electronic & durable goods online among 49 respondents who res
prefer online shopping
Total Responses Options Yes No Total Analysis 37 12 49 Table 8.14
Percentage of Response (%) 75 25 100
From the Table 14 we can see that among 49 respondents who prefer online shopping
37 respondents are willing to buy electronic and durable goods online and 12
respondents are not willing to buy electronic and durable goods online.
No 25%
Yes 75%
Chart 8.14
52

Inference We can see that out of 49 respondents who prefer online shopping 37
respondents are willing to buy electronic and durable goods online i.e. there is a
response around 75% for the willingness to buy electronic and durable goods online
hence having a plan to establish e-commerce channel for commerce the company would
be a right decision. •
Reliance digital website browsed by respondents
Based on the survey Table 15 says that 5% of the respondents have browsed “Reliance
digital” website and they liked the product information and the product display on
the website would give better visual experience. And 95% of the respondents never
browsed “Reliance digital” website so far. Yes 5%
No 95% Chart 8.15
53

Inference From the Chart 15 we can see that 5% of the respondents have already
browsed “Reliance Digital” website and rest 95% never browsed the website hence
creating awareness about the company and the brand is crucial and therefore
designing strategies for internet advertisement is vital in order to create
awareness in the internet users.
54

9. Findings and Suggestions
9.1 Findings • • • • • • • • • • • • • • • 83% of respondents browse internet at
least once in a day, which means it includes respondents browsing internet twice in
a day and respondents browse almost 24*7. Out of 100 respondents 89 respondents
browse social networking website facebook most often. 37% of respondents browse
internet for advertisement on their required product when they are in need of
particular product/service. Only 12% of the respondents do not read promotional
emails at all. 77% of respondents have awareness of online shopping websites.
Flipkart is online shopping website known to 52 respondents out of 100 respondents.
39% of respondents have purchased products online in their past. 80% of respondents
have perception that online marketing will take over traditional marketing in next
10 years. Out of 100 respondents 76 respondents feel that internet is the easiest
way to get information about required product. 78% of respondents prefer to watch
motion advertisement on websites on their required product/service in order to get
complete information. 63% of respondents agree to the statement “Internet
advertisement is more effective than conventional advertisement”. 98% of
respondents search for information on their required product over internet. 49% of
respondents prefer online purchase. Out of 100 respondents 49 respondents prefer
online purchase (i.e. 49%), among 49 respondents 37 respondents have willingness to
buy electronic & durable goods online. 5% of respondents have browsed reliance
digital website and they like product information and display of product on the
website.
55

9.2 Suggestions • • • • It is suggested that company should post advertisements on
all social networking websites. Company should send promotional emails to the
existing and potential customers on regular intervals. It is suggested to provide
complete information about all available products on the company website. It is
suggested that company should conduct Soft skills training to the employees by
expert soft skill trainers. • It is suggested to increase the customer attention
and understand the actual need of the same. • Operating costs seems to be very high
it is suggested to reduce the cost through switching off few Lights and Display
Televisions when there are no walk-ins of customers into store. • • • • During peak
hours of business it is suggested to implement waiting line strategies at the
billing counter. Employees should be trained on service quality and service quality
delivery to the customers. Service quality has to be delivered along with the
product delivery to the customers. It is suggested to establish e-commerce channel
soon and should be implemented proper internet advertisement stratetegies.
56

10. Recommendations and Conclusion
10.1 Recommendations • • • • • • • • • It is recommended that company should post
advertisements over internet on various websites since the reach is high to the
internet users. Company should establish e-commerce business arm since the
awareness of online shopping in the internet users is high which has been found by
the study. Video advertisements of reliance digital can be shared on social
networking websites and also on other websites by giving the URL link from YouTube.
Sufficient man power has to be recruited for all departments and respective
sections of the department. Proper Inventory management should be implemented in
the organization in order to have effective inventory control. ResQ and CRM team
has to be trained on the concept “service with smile”. Background music played in
the store has to be soft music and the odd filmy songs shouldn’t be played in the
store. Employees should be given the Retail industry latest trends and product
knowledge. ResQ team should be monitored well in the performance of their duties
and responsibilities.
57

10.2 Conclusion From the study we can draw conclusion that reliance digital can
establish e-commerce business arm to make available all electronic and durable
goods easily to the existing and potential customers. Study clearly shows that
there is huge scope for e-commerce in the current scenario, people are aware of
online shopping and also most of them prefer online shopping since it saves time
and is more convenient to buy by making comparison with various other available
products over internet, hence it is necessary to have internet advertisement
strategies to the company when it has a plan to establish e-commerce arm. Posting
the advertisements over internet on various websites would have high reach to the
internet users and would create awareness about online shopping option. In order to
have greater reach to all the internet users company can post advertisements on
social networking websites, and also other various website where people browse most
often such as yahoo, rediffmail, hotmail, youtube etc., and in the social
networking websites, facebook has the greater stake in the market. Most of the
internet users have facebook account and other social networking websites such as
twitter, linkedin etc., also have the potential to reach internet users. Therefore
posting advertisement about products and services of the company on social
networking website will have impact on reaching online shopping option provided by
the company. Most of the respondents in the study mentioned that online marketing
would take over traditional marketing in the next 10 years and also respondents
have perception that internet advertisement is more effective than conventional
advertisement. Respondents are highly optimist about the ecommerce business and its
success in the future. Posting video advertisement of the brand would be more
effective and the same is preferred by the most of the respondents as it has been
drawn from the study. Video advertisement gives a kind of pleasure experience in
watching it and also provides information about the products. Today internet users
feel that the easiest way to get information about required products is internet.
Internet is only the medium where people can get the information immediately on
required product at any point of time. Hence posting advertisement about products
available with the company over internet would be effective in its reach to the
customers who wish to buy the products online or off line.
58

During the survey, respondents, when asked about if they ever browsed reliance
digital website, 5% of the respondents mentioned that they did and liked the
product display and Information on the website that the company has given. At the
same time when we browse reliance digital website we do not find all products
information those are available with the company, it is suggested to company that
they provide complete information of all products on the company’s website along
with product image so that customers can easily compare and view its features and
benefits that are with products. Email marketing is one of the best ways to market
the brand today. We can see many companies are doing email marketing to promote
their brand and respondents mentioned that few of them read promotional emails
always and few read rarely, but when respondents are in need of products they go
through the email that has been sent by the company. Hence it is suggested to
company that it should send emails about the offers during seasons and on regular
intervals of time so that brand can be get promoted by creating awareness in the
internet users.
59

11. Internet Advertisement Strategies
1. Start with a web promotion plan and an effective web design and development
strategy. The company can promote its website giving link on various websites such
as yahoo, rediffmail, hotmail etc. before to that company should design its website
effectively such that it should be more user friendly and more attractive to look.
All available products with the company have to be categorized systematically and
products image should be displayed with the complete information of products. The
website has to be promoted after the construction of website.
2. contextual ads on search engine results pages A search engine results page
(SERP), is the listing of web pages returned by a search engine in response to a
keyword query. The results normally include a list of web pages with titles, a link
to the page, and a short description showing where the Keywords have matched
content within the page. A SERP may refer to a single page of links returned, or to
the set of all links returned for a search query.
3. Banner ads over internet A web banner or banner ad is a form of advertising on

the World Wide Web delivered by an ad server. This form of online advertising
entails embedding an advertisement into a web page. It is intended to attract
traffic to a website by linking to the website of the advertiser. The advertisement
is constructed from an image (GIF, Flash, often employing animation, sound, or
video to maximize presence. Images are usually in a high-aspect ratio shape (i.e.
either wide and short, or tall and narrow) hence the reference to banners. These
images are usually placed on web pages that have interesting content, such as a
newspaper article or an opinion piece. Affiliates earn money usually on a CPC (cost
per click) basis. For every unique user click on the ad, the affiliate earns money.
60

4. Blog and interact with your visitors. A blog (a portmanteau of the term web log)
is a personal journal published on the World Wide Web consisting of discrete
entries ("posts") typically displayed in reverse chronological order so the most
recent post appears first. Blogs are usually the work of a single individual,
occasionally of a small group, and often are themed on a single subject. Blog can
also be used as a verb, meaning to maintain or add content to a blog. Many blogs
provide commentary on a particular subject; others function as more personal online
diaries; yet still others function more as online brand advertising of a particular
individual or company. A typical blog combines text, images, and links to other
blogs, Web pages, and other media related to its topic. The ability of readers to
leave comments in an interactive format is an important part of many blogs. Most
blogs are primarily textual, although some focus on art (art blog), photographs
(photoblog), videos (video blogging or vlogging), music (MP3 blog), and audio
(podcasting). Microblogging is another type of blogging, featuring very short

posts.
5. Write and publish online press releases. Press release is one of the best online
advertisement mediums and a definitive method to build web credibility. Press
release and Press release distribution service would make that product/ service
gets the right exposure to the target audience. Press release services target not
only Indian audience but have a global coverage.
6. Facilitate and run contests and give away via web site. The Contests are
facilitated on the websites which is decentralized competition, the server
automatically determines scores based on the performance of participants and
rewarded further on their scores. These contests facilitated via website of the
company and help to advertise the brand and its products/services.
61

7. Facilitate Interactive media to potential and existing customers. Interactive
media normally refers to products and services on digital computer-based systems
which respond to the user’s actions by presenting content such as text, graphics,
animation, video, audio, etc. Interactive media is related to the concepts
interaction design, new
media, interactivity, human computer interaction, cyberculture, digital culture,

and includes specific cases such as, for example, interactive, interactive
narrative, interactive advertising, algorithmic art, videogames, and social media.
An essential feature of interactivity is that it is mutual: user and machine each
take a more or less active role. Most interactive computing systems are for some
human purpose and interact with humans in human contexts.
8. Social network advertising. Social network advertising is a term that is used to

describe a form of Online advertising that focuses on social networking sites. One
of the major benefits of advertising on a social networking site (facebook,
myspace, friendster, bebo, orkut...and many others) is that advertisers can take
advantage of the users demographic information and target their ads appropriately.
There are three major classifications of Social Network Advertising: a. Direct
Advertising that is based on your network of friends - This can be the most
effective format but also causes the most controversy. An example is the Facebook
beacon project. Based on an action your friend has taken, you might see a message
in your news feed saying 'Bob has just bought a 'RadioHead CD from MusicWorld'.
This can be an extremely effective mode as often people make decisions to purchase
something or do something based on their close group of friends. However, there is
also a lot of controversy surrounding this as it can be considered exploiting the
personal relationships you have with your friends and also raises privacy concerns.
b. Direct Advertising placed on your social networking site - This is a more
traditional form of web advertising that is minimally effective. Just like you see
banner ads on many other sites, this is a similar concept, except on a social
networking site. You can see these
62

- for example - as a brick in the top right of MySpace pages or as a banner on the
left of Facebook profiles and so on. There are two differences however - One is
that these social networks can take advantage of demographic data on your profile
and hence target the ad directly to you. Secondly, these types of ads can also be
placed by individual developers on their application pages through ad networks.
They have access to the same data and can generate income for application
developers giving them further motivation to create apps and giving advertisers a
more engaging way to reach out to these social networking users. c. Indirect
Advertising by creating 'groups' or 'pages' - This is an innovative marketing
technique in which a company will create a 'page' or 'group' that users can choose
to join. They will use this to build up 'subscribers' or 'fans' and use this to
market a contest, a new product, or simply just to increase brand awareness. These
groups can quickly grow in numbers of subscribers which can become a very effective
marketing tool.
9. Interstitial Advertisements On the World Wide Web, interstitials are web pages
displayed before or after an expected content page, often to display advertisements
or confirm the user's age (prior to showing age-restricted material). Most
interstitial advertisements are delivered by an ad server. Some people take issue
with the use of such pages to present online advertising before allowing users to
see the content they were trying to access. Less controversial uses of interstitial
pages include introducing another page or site before directing the user to
proceed; or alerting the user that the next page requires a login, or has some
other requirement which the user should know about before proceeding.
10. E-mail marketing Email marketing is directly marketing a commercial message to

a group of people using electronic mail email. In its broadest sense, every email
sent to a potential or current customer could be considered email marketing. It
usually involves using email to send ads, request business, or solicit sales or
donations, and any email communication that is
63

meant to build loyalty, trust or brand awareness. Email marketing can be done to
either cold lists or current customer database. Broadly, the term is usually used
to refer to:
a.
Sending email messages with the purpose of enhancing the relationship of a merchant
with its current or previous customers, to encourage customer loyalty and repeat
business.
b.
Sending email messages with the purpose of acquiring new customers or convincing
current customers to purchase something immediately.
c.
Adding advertisements to email messages sent by other companies to their customers.
64

12. Annexure
QUESTIONNAIRE Sl.No.: /02/12 Place: Bangalore
I Pramod Kalli, Pursuing my MBA from CMRIT Bangalore (Affiliated to VTU Belgaum). I
am carrying out an academic project titled “A Study on Developing Effective
Internet Advertising Strategies with Respect to Reliance Digital at Bangalore”. I
request you to spare your valuable time to respond the questionnaire. The
information shared will be kept confidential. NOTE: PLEASE MARK YOUR ANSWER WITH IN
[X]
1) Please fill personal details. a. Name: b. Gender: c. Age: d. Contact No.:
2)
Do you use internet? a) Yes b) No
3) If Yes, how often you use internet? a) Once in a day c) Once in two days e)
Almost 24*7 b) Twice in a day d) once in a week
65

4)
Name the websites that you browse often…

Sl.No. Websites
5) Do you browse internet for any advertisement? a) Yes b) No
6) If Yes, Kindly write the reasons to browse advertisement a)

___________________________________________ b)
___________________________________________ c)
___________________________________________ d)
___________________________________________
66

7) I read all promotional Emails of my Inbox. a) Always b) Sometimes c) Often d)
Seldom e) Hardly f) Not at all
8) Are you aware of online shopping websites? a) Yes b) No
9) If Yes, Name the websites that you aware of

Sl.No. Websites
10) Have you ever purchased online? a) Yes b) No
11) If Yes, Name the product ______________________ 67

12) Online marketing will take over traditional marketing in next 10 years.
Strongly Agree Agree Can’t say Dis-agree Strongly Disagree
13) In your opinion what could be the easiest ways to get information about
required product? a) News paper b) T.V. Ads c) Internet d) Product brochures e)
Pamphlets f) Hoardings/Banners if others please mention ___________________
g) Others
14) Would you prefer to watch motion (video) advertisement on websites for your
required product? a) Yes b) No
15) Internet advertisement is more effective than conventional advertisement.

Strongly Agree Agree In differentiate Dis-agree Strongly Disagree
16) Do you search for information on your required products over internet? a) Yes
b) No
68

17) Do you prefer online purchase? a) Yes b) No
18) If Yes, Would you like to buy electronic and durable goods through online? a)
Yes b) No
19) Have you ever browsed reliance digital website? a) Yes b) No
20) If Yes, what you liked most (please brief in your words)
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
THANK YOU
69

13 Bibliography
Books 1. David J. Luck and Ronald S. Rubin, Marketing Research (7th Ed; New Delhi:
Prentice Hall of India Pvt. Ltd, 2001) 2. G. C. Beri, Marketing Research (3rd Ed;
New Delhi: Tata McGraw Hill Publishing Co. Ltd, 2000) 3. Philip Kotler, Kevin Lane
Keller, Pearson, Principles Of Marketing-,(12th
Edition,2006Phi) 4. Advertising and Integrated Brand Promotion, O’Guinn, Allen,

Semenik, 4/e, Thomson, 2007 5. Integrated Advertising, Promotion, and Marketing
Communications, Clow, Baack, 3/e, Pearson Education, 2007 6. Roger D. Blackwell,
Paul W. Miniard And James F. Engel, Consumer Behaviour (9th Ed; New Delhi: Vikas
Publishing House Pvt. Ltd.) Journals International Journal of Retail & Distribution
Management Journal of Retail & Leisure Property Journal of Retailing and Consumer
Services
Websites www.ril.com www.reliancedigital.in www.indiaretailing.com

www.indiaretailforum.in www.wikipedia.org www.adcracker.com
Others Reliance Digital Employees Induction Kit. Reliance Digital Products

Brochure.
70

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1.

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

Dhirajlal Hirachand Ambani (1932-2002) Founder of Reliance Group Backward vertical

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

2.3 Vision, Purpose, Values and Promises:

“Bettering the lives of Indian everyday”

2.3.3 Values • • • • We believe in people We believe in and follow the customer We

CMR Institute of Technology, Bangalore

2.4 Products/ Services Profile:

CMR Institute of Technology, Bangalore

Specialised customer training:

Specialised training to customers on products and related applications by an

Demonstrate Product Usage:

CMR Institute of Technology, Bangalore

Enhanced Utility: ResQ Accessories

Extended Warranty Service- ResQ Care Plan

2.5 Area of operation – National:

CMR Institute of Technology, Bangalore

Reliance Gas & Reliance Aviation

Vimal Vimal Gifting & V2 Vimal

Petrochemicals Polyester & Fibre Intermediates

Repol Relene Reon Cisamer & Relab

Reliance industry is the largest conglomerate in India, having number of brands

CMR Institute of Technology, Bangalore

Brand Philosophy If service wasn't important. If technology wasn't complex. If

CMR Institute of Technology, Bangalore

2.8 Infrastructural facilities:

Signage Signage is kind of visual graphics created to display information about

Experience Zones Experience zones take consumers through a delightful and

Home theater experience zone It is an exclusive experience zone in reliance digital

CMR Institute of Technology, Bangalore

2.9 Work flow model:

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

Stock Ordering Process

CMR Institute of Technology, Bangalore

2.10 Future Growth and Prospectus:

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

Structure The design of organizational structure is a critical task of the top

CMR Institute of Technology, Bangalore

CMO – Commercial Operations Manager VM – Visual Merchandiser DM – Department

CMR Institute of Technology, Bangalore

Shared value • • • • We believe in people We believe in and follow the customer We

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

Weakness: • • • Poor inventory control. Inadequate human resources. Operating costs

Opportunity: • • • • • Potential for investment. High growth potential. E-

Threat: • • • • Increasing competitor’s market share. Price war with competitors.

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore

CMR Institute of Technology, Bangalore