Competitive Marketing Strategies of Reliance Retail

After the successful launch of the supermarket format “Reliance Fresh” and the
consumer electronics concept mega store “Reliance Digital”, the hypermarket is
the third retail format launched Retail. Spread across 165,000 square feet of
shopping area, Reliance Mart will provide the shoppers a never-before-
experienced shopping delight. The hypermarket will carry a range of over
95,000 products catering to the entire family. Shoppers will have the option to
choose from a wide array of products in every category ranging from fresh
produce, food & grocery, home care products, apparel and accessories, non-
food FMCG products, consumer durables and IT, automotive accessories,
lifestyle products, footwear and much more. Commenting on the launch, Shri.
Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd,
said: “Organized retail has the potential to trigger socio-economic
transformation on an unprecedented scale in our country and will bring about
enormous spin-off benefits to the Indian economy and its various constituents”.

“The launch of Reliance Mart is yet another step by Reliance Retail towards
providing international shopping experience to all our customers at unmatched
affordability, guaranteed quality and choice of products and services. Reliance
Mart marks the achievement of another milestone in our effort to unleash a
retail revolution in India.”
Shri Ambani added. Reliance Mart offers some unique services to the shoppers
like tailoring, shoe repair, watch repair, a photo shop, gift services and laundry
services, all within the store. The store also houses its own fresh bakery, serving
“hot, off-the-oven” bread and bread products throughout the day and local
savories, an ice-cream train for the kids, a chakki, ready-made batter and loose
tea and pickle for the housewives. Reliance Mart will also sell fine jewellery
and fashion jewellery as part of its lifestyle section.

Services Offered
 It offers some unique services to the shoppers like tailoring, shoe repair, watch
repair, a photo shop, gifting services and laundry services all within the store
under one roof and also it has its own bakery shop. Reliance Mart will also
provide easy and attractive finance options, including zero per cent financing
for the purchases on select products. Reliance Mart will continue to offer all its
customers Reliance One, a common membership and loyalty programme across
all its formats, which follows the philosophy of 'Earn Anywhere, Spend
Anywhere'.
Future Plans
 The next two hypermarkets are to be opened in Jamnagar in Gujarat and in the
NCR by next month with plans to open 30 such marts by the year. Raghu Pillai,
President and CEO (operations and strategy), Reliance Industries Limited (RIL)
said the company is planning to setup 500 hypermarkets across 784 towns by
2010.
 

 
Strategy
 The hypermarket would be selling the products on EDLP (every day low price)
basis at prices 15-20 percent lower than market prices. In order to grow faster
and better in local markets with higher margins, it has focused largely on local
brands instead of national brands or private labels. Local brands include
Induben Khakrawala’s Namkeens, LijjatPapad, Wagh Bakri and
Madhur (spices brand). This is in addition to 100 private labels that
Reliance plans to display. Company’s Sources says that the share of
regional brands in the hyper marts would be over 10%.
Strengths
 Keeping local brands at the outlets is more profitable and also makes the supply
chain more efficient. Being a bulk purchaser, Reliance Mart can offer products
at very low prices. Also taking into consideration the local brands, the products
at the outlets would be easily acceptable by the customers. And there would be
comparatively less efforts needed by the marketer to explain the product to the
consumers.
Weaknesses
In some cases, few regional brands strongly liked by the consumers offer lower
margins than that offered by the national brands. It has to face a tough
competition by big shopping malls i.e. Big Bazaar, Spencer Hyper, Vishal Mega
Mart and the upcoming Wall Mart.

Promotional Strategy in the Marketing strategy of RIL

Reliance, when compared with other companies, spends lesser in promotions
but believes in reducing prices to attract its customers. It sticks to more of BTL
advertising as compared to ATL as its costs less to the company, which it does
mostly or its retail sector and new launch products to create an initial buzz
among the customers, Reliance Communication’s “Karlo Duniya Mutthi me”
slogan of 2003 and promotional activities of recent launch of Reliance Jio being
the prime examples of this.
Reliance is gearing up to revolutionize the retailing industry in India with pan-
India network of retail outlets in multiple formats with a world class shopping
environment, state of art technology, a seamless supply chain infrastructure, a
host of unique value-added services and above all an unmatched customer
experience. The initiative of Reliance will be without a parallel in size and
spread and make India proud. It would be ensuring better returns to Indian
farmers and manufacturers and greater value for the Indian consumer both in
quality and quantity.
Plans include providing some innovative and unique services to the shoppers
such as tailoring, shoe repair, watch repair, a photo shop, laundry services and
gifting services under a single roof. The facility of fresh bakery services will be
all time available under the brand name “hot off the oven”.
Vimal, a well known fabric brand of Reliance Industries will have store within
its hypermarkets and will offer custom tailoring services. Reliance Retail is
building a vigorous and state of art supply chain infrastructure to cover the
entire country along with setting up its own cold storage chain. It is expected to
provide direct employment for half a million people and indirect employment to
two million.
To woo the customers, Reliance Mart will keep on offering versatile offers to all
its customers with “Reliance One”, a common membership and loyalty
programme across all its formats which follow the philosophy of “ Earn
anywhere, spend anywhere”

RIL also tries to make a social and emotional connection with its customers by
holding various rehabilitation programs and campaigns such as EFA
( Education For All) which is Reliance Foundation’s Social initiative through
which RIL has been able to make education provision for over 70,000
underprivileged kids over the last five years.

RIL also invests heavily in sports activities and events in the country with the
company owning Mumbai Indians an IPL cricket team and holding a stake of
65% in Indian Super League for football.

NEW BUSINESS STRATEGY BY RELIANCE

The formula for a successful business is Change your strategy as trends
changes. And this is exactly what India’s largest and most profitable retail
company, Reliance Industries embraces. Reliance Retail, India’s largest brick-
and-mortar retail chain is now setting foot on the country’s red-hot online retail
market.
As everyone is aware, be it any business, Online retailing is the need of the
hour. There have been transitions among local retail shops to shopping
complexes and giant size malls, and with this, now we have e-commerce
evolving rapidly in the country. Therefore it becomes mandatory for one to be at
pace with these changes and adapt to them to lead in the market. Speaking of
Reliance Retail here, the brand already has beforehand experience with e-
commerce space with Ajio.com and Reliance Trends, conferring to Fashion
Industry. Now, they are vying for Smartphones and other consumer electronics,
as these are the largest selling categories online. Let us not forget the number of
phones that are getting launched this year, with Vivo and Oppo already out, and
iPhone, One Plus set to come next month, the scope for online business is
massive. Of sales in general, smartphones online account for 32% and for TV it
is around 12%. Knowing Reliance Industries Limited having a bird’s eye view
regarding which sector to indulge in, the online market event will definitely
result in a major event. The skyrocketing Reliance Jio is a live proof of it.

LOGISTICS
Reliance Digital, India’s largest electronics retailer, offers a wide range of
products, and a service through resQ that is unmatchable - you need not go
anywhere else.

REPAIRS
No matter what the problem, resQ engineers examine, restore and repair your
favourite electronics so that you can get the most out of them.
MAINTENANCE
Reliance ensures that you get uninterrupted service from all your devices and
appliances with maintenance services and electronics online repairs that keep
your electronics as good as new.
SMART SERVICES
Our resQ engineers will give you a product demo, help you experience
convergence and share tips that enable you to do more with your electronics.

365-DAY AVAILABILITY
Always at your service, with no days off. resQ services are available all year
round, including Sundays and public holidays.
10 AM – 10 PM
Your convenience is our priority. resQ operates with extended working hours so
that you can reach out to us anytime.
ISO 9001 CERTIFIED
Your trust in us is certified. resQ is India’s only ISO certified electronics service
brand.

MULTI-PRODUCT, MULTI-BRAND
Servicing products bought on our online store just got easier. Any brand, any
kind of product, resQ will take care of all your electronics – whether bought in
stores or on www.reliancedigital.in.
FREE PICK-UP AND DROP
No more hassles looking for a service center to address problems with products
bought at any of our stores (online or offline).
When it comes to caring for your electronics, we go the distance. resQ provides
free pick-up and drop of your electronics from home to the service center and
back.
STAND-BY UNIT SUPPORT
We’ve always got your back. resQ provides stand-by units for select electronics
under repairs.
PERIODICAL PRODUCT HEALTH CHECK-UP
periodical preventive maintenance check-up ensures that your electronics
remain healthy and hassle free.