Professional Documents
Culture Documents
PROJECT REPORT
ON
“RELIANCE RETAIL STORE OPERATION”
AT
HUBLI
By
Roll No.33109004
APPROVAL SHEET
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DECLARATION
It is hereby declare that the project report entitled “ RELIANCE RETAIL STORE
OPERATION ” submitted for the degree of Post graduation Diploma In Business
Economics, is my original work and the project report has not formed the basis for the award of
any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to
any other university or institution for the award of any degree or diploma.
Place:
Date: Amith V.Raikar
PGDBE, WLC Hubli
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CERTIFICATE
This is to certify that Mr.Amith V.Raikar of PGDBE of Wigan & Leigh college,hubli has
completed his project report on the topic of “RELIANCE RETAIL STORE OPERATION AT
HUBLI” under the supervision of Mr.VIKAS SOPPIN Campus Head of WLC college,hubli. To
best of my knowledge the report is original and has not been copied or submitted anywhere else.
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ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can substitute
which is possible while working in real situations. Application of theoretical knowledge to
practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it‟s not easy to achieve any thing.
There is always a sense of gratitude, which we express to others for the help and the needy
services they render during the different phases of our lives. I too would like to do it as I really
wish to express my gratitude toward all those who have been helpful to me directly or indirectly
during the development of this project.
I would like to thank my Campus Head Mr.VIKAS SOPPIN, who was always there to help and
guide me when I needed help. I would like to thank Mr. SUDEEP PATIL, (Head HR) Reliance
Retail at HUBLI. His perceptive criticism kept me working to make this project more full proof. I
am thankful to him for his encouraging and valuable support. Working under him was an
extremely knowledgeable and enriching experience for me. I am very thankful to him for all the
value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents whose support
helps me in all the way. Above all I shall thank my friends who constantly encouraged and
blessed me so as to enable me to do this work successfully.
AMITH RAIKAR
PGDBE
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Introduction
India has often been called a nation of shopkeepers. Presumably the reason for this is; that,
a large number of retail enterprises exist in India. In 2004, there were 12 million such units
of which 98% are small family businesses, utilizing only household labour. Even among
retail enterprises, which employ hired workers, a majority of them use less than three
workers.
Retailing is the combination of activities involved in selling or renting consumer goods
and services directly to ultimate consumers for their personal or household use. In addition
to selling, retailing includes such diverse activities as, buying, advertising, data processing
and maintaining inventory.
While sales people regularly call on institutional customers, to initiate and conclude
transactions, most end users or final customers, patronize stores. This makes store
location, product assortment, timings, store fixtures, sales personnel, delivery and other
factors, very critical in drawing customers to the store.
Final customers make many unplanned purchases. In contrast those who buy for resale or
use in manufacturing are more systematic in their purchasing. Therefore, retailers need to
place impulse items in high traffic locations, organize, store layout , trains sales people in
suggestion , and place related items next to each other, to stimulate purchase.
Department Stores
Discount Stores
Clothing Stores
Specialty retailers
Convenience Stores
Grocery Stores
Drug Stores
Auto Retailers
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Organized retailing in India was estimated at Rs.18, 000 crores in 2004-2005 and has
grown at about 40% over the last 3 years (Source KSA Retail Outlook).
Retailing has a tremendous impact on the economy. It involves high annual sales and
it possible for customers to have access to a broad variety of products and services.
Retailing also helps to create place, time and possession utilities. A retailer's service also
helps to enhance a product's image.
Retailers participate in the sorting process by collecting an assortment of goods and
services from a wide variety of suppliers and offering them for sale. The width and depth
of assortment depend upon the individual retailer's strategy.
They provide information to consumers through advertising, displays and signs and sales
,,
handle products; usually they pay suppliers for items before selling them to final
customers. They complete transactions by using appropriate locations, and timings, credit
policies, and other services e.g. delivery.
Retailing in a way, is the final stage in marketing channels for consumer products.
Retailers provide the vital link between producers and ultimate consumers.
Successful retail operations depend largely on two main dimensions: margin and turnover.
How far a retail enterprise can reach in margin and turnover depends essentially on the
type of business (product lines) and the style and scale of the operations. In addition the
turnover also depends upon the professional competence of the enterprise.
In a given business two retail companies may choose two different margin levels, and yet
both may be successful, provided the strategy and style of management are appropriate.
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Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for
Margin is defined as the percentage mark tip at which the inventory in the store is sold and
turnover is the number of times the average inventory is sold in a year. This is a
diagrammatic representation of the frame work and can be applied to almost any type of
retail business.
Depending upon the, combination of the two parameters, a retail business will fall into one
of the four quadrants. For instance L-L signifies a position which is low on both margin
and turnover; whereas, H-L indicates high margin and low turnover.
Such an operation assumes that low price is the most significant determinant of customer
patronage. The stores in this category price their products below the market level.
Marketing communication focuses mainly on price. They provide very few services; if
any, and they normally entail an extra charge whenever they do. The merchandise in these
stores are generally pre-sold or self sold. This means that the customers buy the product,
fast moving goods in several merchandise lines. The inventory consists of well known
brands for which a consumer pull is created by the manufacturer through national
advertising. Local promotion focuses on low price. Wal-mart in the United States is an
example and Pantaloon Chain or Subhiksha are Indian examples of such stores.
This operation is based on the premise that distinctive merchandise, service and sales
approach are the most important factors for attracting customers. Stores in this category
price their products higher than those in the market, but not necessarily higher than those
in similar outlets. The focus in marketing communication is on product quality and
uniqueness.
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Merchandise is primarily sold in store and not pre-sold. These stores provide a large
number of services and sell select, categories of products. They do not stock national
brands which are nationally advertised. Typically, a store in this category is located in a
down town area or a major shopping center. Sales depend largely on salesmanship and
image of the outlet.
frequency. They could be situated in a non commercial area but not too far from a major
thoroughfare. Their location advantage allows them to charge a higher price. High over
head costs and, low volumes also necessitate a higher price.
wars. Compounding this problem is the low volume of sales, which is probably a result of
poor management, unsuitable location etc. such businesses, normally get wiped out over a
period of time.
retailers can be categorized by (a) Ownership, (b) Store strategy mix, and (c) Non store
operations. Figure 1.3 illustrates this concept.
Form of Ownership
A retail business like any other type of business, can be owned by a sole proprietor,
partners or a corporation. A majority of retail business in India are sole proprietorships and
partnerships.
Independent Retailer
Generally operates one outlet and offers personalized service, a convenient location and
close customer contact. Roughly 98% of all the retail businesses in India, are managed and
run by independents, including barber shops, drycleaners, furniture stores, bookshops,
LPG Gas Agencies and neighborhood stores. This is due to the fact that into retailing is
easy and it requires low investment and little technical knowledge. This obviously results
in a high degree of competition..
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Most independent retailers fail because of the ease of entry, poor management skills and
inadequate resources.
Retail Chain
It involves common ownership of multiple units. In such units, the purchasing and
decision making are centralized. Chains often rely on, specialization, standardization and
elaborate control- systems. Consequently chains are able to serve a large dispersed target
market and maintain a well known company name. Chain stores have been successful,
mainly because they have the opportunity to take advantage of "economies of scale" in
buying and selling goods. They can maintain their prices, thus increasing their margins, or
they can cut prices and attract greater sales volume. Unlike smaller, independent retailers
with lesser financial means, they can also take advantage of such tools as computers and
information technology. Examples of retail chains in India are Shoppers stop; West side
and IOC, convenience stores at select petrol filling stations.
Retail Franchising
established name and according to a specific set of rules. The franchise agreement gives
the franchiser much discretion in controlling the operations of small retailers. In exchange
for fees, royalties and a share of the profits, the franchiser offers assistance and very often
supplies as well. Classic examples of franchising are; McDonalds, Pizza Hut and Nirulas.
Cooperatives
A retail cooperative is a group of independent retailers that have combined their financial
resources and their expertise in order to effectively control their wholesaling needs. They
share purchases, storage, shopping facilities, advertising planning and other functions. The
individual retailers retain their independence, but agree on broad common policies. Amul
is a typical example of a cooperative in India.
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Retailers can be classified by retail store strategy mix, which is an integrated combination
of hours, location, assortment, service, advertising, and prices etc. The various categories
are:
(A)Convenience Store: Is generally a well situated, food oriented store with long
operating house and a limited number of items. Consumers use a convenience store; for
fill in items such as bread, milk, eggs, chocolates and candy etc.
(B)Super markets: Is a diversified store which sells a broad range of food and non food
items. A supermarket typically carries small house hold appliances, some apparel items,
bakery, film developing, jams, pickles, books, audio/video CD's etc. The Govt. run Super
bazaar, and Kendriya Bhandar in Delhi are good examples of a super market. Similarly in
Mumbai, we have Apna Bazar and Sahakari Bhandar.
(C)Department Stores: A department store usually sells a general line of apparel for the
family, household linens, home furnishings and appliances. Large format apparel
department stores include Pantaloon, Ebony and Pyramid. Others in this category are:
Shoppers Stop and Westside.
(D)Speciality Store: Concentrates on the sale of a single line of products or services, such
as Audio equipment, Jewellery, Beauty and Health Care, etc. Consumers are not
confronted with racks of unrelated merchandise. Successful speciality stores in India
include, Music World for audio needs, Tanishq for jewellery and McDonalds, Pizza Hut
and Nirula's for food services.
(E)Hyper Markets: Is a special kind of combination store which integrates an economy
super market with a discount department store. A hyper market generally has an ambience
which attracts the family as whole. Pantaloon Retail India Ltd. (PRIL) through its
hypermarket "Big Bazar", offers products at prices which are 25% - 30% lower than the
market price.
In non store retailing, customers do not go to a store to buy. This type of retailing is
growing very fast. Among the reasons are; the ability to buy merchandise not available in
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local stores, the increasing number of women workers, and the presence of unskilled retail
sales persons who cannot provide information to help shoppers make buying decisions
The major types of non store retailing are:
(A)In Home Retailing: Where, a sales transaction takes place in a home setting -
retailer over the phone, for the purpose of making a sale or purchase. A large number of
mobile phone service providers use this method. Other examples are private insurance
companies, and credit companies etc.
(C)Catalog Retailing: This is a type of non store retailing in which the retailers offers the
personal, non store retailing. Products are sold directly to customers/buyers from
machines. These machines dispense products which enable customers to buy after closing
hours. ATM's dispensing cash at odd hours represent this form of non store retailing.
Apart from all the multinational banks, a large number of Indian banks also provide ATM
services, countrywide.
(F)Electronic Retailing/E-Tailing: Is a retail format in which retailers communicate with
customers and offer products and services for sale, over the internet. The rapid diffusion of
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internet access and usage, and the perceived low cost of entry has stimulated the creation
of thousands of entrepreneurial electronic retailing ventures during the last 10 years or so.
Amazon.com, E-bay and Bazee.com HDFCSec.com are some of the many e-tailers
operating.
their eventual decline and replacement by newer retailing institutions? Like products
retailing institutions also have a life cycle.
According to this theory new retailers enter the market as, low margin, low price, low
status institutions. The cycle begins with retailers attracting customers by offering low
price and low service. Over a period of time these retailers want to expand their markets
and begin to stock more merchandise, provide more services, and open more convenient
locations. This trading up process. Increases the retailers‟ costs and prices, creating
opportunities for new low price retailers to enter the market.
The evolution of the department store illustrates the "wheel of retailing" theory. In its
entry phase, the department store was a low cost-low service venture. With time it moved
up into the trading-up phase. It upgraded its facilities, stock selection, advertising and
service. The same department store then moves into the vulnerability phase, because it
becomes vulnerable to low cost/low service formats, such as full line discount stores and
category specialists. Figure 1.5 illustrates this theory. While the wheel hypothesis has a
great deal of intuitive appeal and has been borne out in general by many studies of retail
development, it only reflects a pattern. It is not a sure indicator of every change, nor was it
ever intended to describe the development of every individual retailer.
RETAILING DECISIONS
There are many factors for retailers to consider while developing and implementing their
marketing plans. Among the major retailing decisions are these related to (a) Target
markets (b) Merchandise management (c) Store location (d) Store image (e) Store
personnel (f) Store design (g) Promotion, and (h) Credit and collections.
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Target Markets: Although retailers normally aim at the mass market, a growing number are
engaging in marketing research and market segmentation, because they are finding it
increasingly difficult to satisfy everyone. Through a careful definition of target markets,
retailers can use their resources and capabilities to position themselves more effectively and
achieve differential advantage. The tremendous growth in number of speciality stores in
recent years is largely due to their ability to define precisely the type of customers, they want
to serve.
Merchandise Management: The objective here is to identify the merchandise that
customers want, and make it available at the right price, in the right place at the right
time. Merchandise Management includes (i) merchandise planning (ii) merchandise
purchase, and (iii) merchandise control. Merchandise planning deals with decisions
relating to the breadth and depth of the mix, needed to satisfy target customers to
achieve the retailers return on investment. This involves sales forecasting, inventory
requirements, decisions regarding gross margins and mark ups etc. Merchandise
buying involves decisions relating to centralized or decentralized buying, merchandise
resources and negotiation with suppliers. Merchandise Control: deals with maintaining
the proper level of inventory and protecting it against shrinkage (theft, pilferage etc.).
Store Location: Location is critical to the success of a retail store. A store's trading-
area is the area surrounding the store from which the outlet draws a majority of its
customers. The extent of this area depends upon the merchandise sold. For example
some people might be willing to travel a longer distance to shop at a speciality store
because of the unique and prestigious merchandise offered. Having decided on the
trading area a specific site must then be selected. Factors affecting the site include,
traffic patterns, accessibility, competitors' location, availability and cost and
population shifts within the area.
Store Image: A store image is the mental picture, or personality of the store, a retailer
personnel, as well as the quality, depth and breadth of merchandise. Customers tend to
shop in stores that fit their images of themselves.
Store Personnel: Sales personnel at a retail store can help build customer loyalty and
store image. A major complaint in many lanes of retailing, is the poor attitude of a
salesperson. There is a growing trend now, to provide training to , these sales clerks to
potential. The exterior should be attractive and inviting and should blend with the
"
store's general surroundings. The term Atmospherics" is used to refer to the retailer's
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and between sales people and customers. The objective is to build the stores image,
promote customer traffic, and sell specific products. It includes both, personal and non
personal promotion. Personal communication is personal selling - the face to face
interaction between the buyer and the seller. Department stores and speciality stores,
emphasize this form of promotion. Non personal promotion is advertising. The media
used are TV, Radio, Newspapers, Outdoor displays and direct mail, other forms of
promotion include, displays, special sales, give always and contests etc.
Credits & Collections: Retailers are generally wary of providing credit, because of
additional costs-financing accounts receivables, processing forms and bad debts etc.
But many customers prefer some form of credit while purchasing. This explains the
popularity of different types of credit cards and debit cards.
their positions in the market place. Many customers are no longer willing to spend as
much time on shopping as they once did. Some sectors of retailing have become
saturated, several retailers are operating under high levels of debt and number of
retailers after running frequent "sales", have found it difficult to maintain regular
prices.
Retailers are adapting to*the shopping needs and time constraints of working women,
dual earner households and the increased customer interest in quality and customer
service:
Shopping Malls: A growing number of shopping malls are coming up all over the
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Non Store Retailing: Non store retailing is accelerating at a faster rate than in store
retailing. This includes direct marketing. In Home shopping TV shopping and e-tailing
etc.
Diversification of Offerings:
Scrambled (unrelated products or services)
merchandising is taking on a broader meaning and inter type competition among
retailers is growing. For instance Citibank is organizing tourist trips and sending mail
order catalogues to its credit card customers.
Impact of Technology on Shopping Behaviors: The way retailers present their
merchandise and conduct their transactions are changing. Cable TV Channels are used
to present merchandise, Videos have replaced catalogues and computer linkages to
acquire information and make purchases are on the increase. Virtual shopping through
PDA's is another possibility.
Multi Channel Retailing: Traditional store based and catalogue retailers are placing more
emphasis on their electronic channels and evolving into multi channel retailers, because they
can reach new markets and overcome limitations posed by traditional formats.
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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 USD 27 billion. The flagship company, Reliance Industries Limited,
is a Fortune Global 500 company and is the largest private sector company in India.
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 and
retail.
Reliance enjoys global leadership in its businesses, The Group exports products in excess of
USD 15 billion to more than 100 countries in the world. There are more than 25,000
employees on the rolls of Group Companies. Major Group Companies are Reliance Industries
Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail
Limited) and Reliance Industrial Infrastructure Limited.
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FOUNDER PROFILE
"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream
it, you can do it."
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global
leader in the materials and energy value chain businesses.
H.S.Kohli
Nikhil R. Meswani Executive Hital R. Meswani
Executive
Director Executive Director
Director
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RELIANCE FRESH
India‟s Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been first off the
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across
the country. The reliance fresh supermarket chain is ril‟s rs 25,000 crore venture and it plans
to add more stores across different g, and eventually have a pan-India footprint by year 2011.
The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products. Besides, the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people, according to the company. The company also
has plans to train students and housewives in customer care and quality services for part-time
jobs.
• Forge strong and lasting bonds with millions of farmers and will transform the
Relationship with customers to a new level
• Offer unmatched affordability, quality, convenience, service and choice
• Offer our customers the widest range of fruit and vegetables at the best prices in
the neighborhood
• Provide for the daily needs of our customers by offering staples, grocery and
household products at great prices
• Offer consistent high quality, unbeatable freshness and gr eat service so that our
Customers know that we can be trusted every day.
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Their main aim is to provide good quality products in lower price & customer service &
customer satisfaction.
According to reliance fresh store manager they were satisfying 75% of customer expectations.
OBJECTIVES:
Other R
Marketing Research
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as compared to other field. All decisions in modern business organization revolve around the
marketing information. Because the success of the business does not depend upon the guess
work rather have the correct information about the customer, what they want, how want,
how much they are able to pay, and the substitute available in the they market etc. This
Types of Research
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All research approaches can be classified into three general categories research:
3. Exploratory Research: Exploratory research is used when one is seeking insights into
the general nature of the problem, the possible decision alternatives, and relevant
variables that need to be
Basically there are two types of data which are used in marketing research process.
A. Observation
B. Interview
C. Questionnaires
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Interview: Interview is one of the chief means of collecting data in research process.
Interview may be defined as a systematic conversation initiated for a specific purpose and
focus on certain content areas.
Surveys: There are mainly three types of surveys, depending upon the method of data
gathering used: Personal surveys, telephone surveys and mail surveys.
Advantages of Surveys
The primary data under processing is collected from both direct filling the questionnaires
and through telephone interviews also.
2. Secondary Data: The data once collected by once person become the secondary
data if used by another person.
1. Bibliography
2. Directories
3. Televisions
4. Newspapers
5. Journals
6. Websites
The Secondary data like information of existing customers, information about company has
been taken from company website, company’s yearly chronicles and employee’s of the
company.
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Sampling
A sample is a part of population. The sample should be representative of the population and
the information obtained must be reliable. In any survey where reliability is desired, the
errors and variances have to be controlled, measured and interpreted.
RESEARCH DESIGN
The types of Primary Data collection procedures that would probably be used.
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Process – Sampling
Attitude Measurement
Types of Attitude measurements Scale: There are four types of measurement scale as
follows.
1. Nominal Scale: In a nominal scale, objects are assigned to mutually exclusive,
labeled categories but there is no necessary relationship among the categories.
2. Ordinal Scale: An ordinal scale is obtained by arranging them in order with regards
to some common variable. The question is simply whether each object has more or
less of this variable than some other objects.
3. Interval Scale: In an interval scale the numbers used to rank the objects also
represent equal increments of the attributes being measured.
4. Ratio Scale: A ratio scale is a special kind of interval scale that has a natural zero
point.
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The Nominal Scale is used while designing the questionnaire. Both close ended and open
ended questions are put together in the questionnaire.
DATA COLLECTION:
The information is the major part of any research proposal to attain certain objectives we
require both secondary and primary data which is discussed above
HYPOTHESIS TESTED:
LIMITATIONS:
Every research has certain limitation so there is no research is free from limitation same thing
happen in this research which is discussed below:
- NEED OF STUDY:-
A detailed study in Reliance Retail focusing primarily on two areas of their operations.
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(a)Indenting – DC Delivery:-
Indenting will be happen after checking stock in the store and goods in transit. Or whenever if
required any changes in indenting due to season, weekends or any festivals then the quantity
is modified. For branded goods there is a automatic indenting system which is handled by the
head office (Mumbai). Delivery of fruit & vegetables is after 48hours after being raised.
Indenting for milk and dairy products is delivered after 36 hours.
PO (purchase order) for bakery supply is raised in the store and also released to the vendors
by the stores. PO on vendors can be raised only once each day & it will be valid for 24 hours.
2) Receiving:-
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All the Dry DC delivery will be checked by a store staff in the DC staging area before
packing and loading. This is to minimize delivery count error and ensure that right quantity is
delivered to the stores. Behind this all the activity owner is Store Manager.
Receiving indented goods from the DC & CPC as per the delivery schedule. At the time of
receiving goods from DC many things which is followed by the SM, ASM,& CSA:-
Check the seal in front of driver.
Inspect stocks for transit damages.
If any HU (Handling unit) / article is found damaged, excess, or missing noted it on
Stores are not unloading transit damaged stocks. Transit damages will be returned to
music CDs delivered by the vendor & return the unsold items to the vendors.
Vendors and store staff check physically check DSD deliveries for damages and
3) Replenishment of goods
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Process of moving goods from goods receiving area to the respective bays/freezers/chillers as
per the priority fill rule.
Frozen products received must have first priority for stacking in the Freezers.
Chilled product received must have second priority after frozen product for stacking
in the chillers.
(a) Changing SELs for those SKU’s where price has been changed. All the changing
of SKU’s is done by headquarter Mumbai.
The Plano gram indicates the location for each SKU on a shelf. This process describes how to
change Plano gram. Changing of Plano gram is wholly managed by headquarter. Headquarter
send new Plano gram to store by mail. Changing of fixtures and shelf heights, at
Per new Plano gram. The major change of shelf is less than 5 bays. Check quality of stock
received as per Plano gram, raise an indent of additional stock if required. Stack goods as per
Plano gram and readjust SEL to align with the left hand side of the first facing going from the
left. All the changes made on shelf to be signed off by store manager. All the Plano gram to
be provided in standard format. Plano gram indicates shelf heights. Plano gram is send to the
store at least 2 days in advance of the change. No stock to be displayed on the shelf if it not in
the Plano gram. If the F& V section looks empty in the late evening because of stock outs,
then store manager may change only the F& V Plano gram in a suitable manner to give
appearance of full store.
Store check that all new promotional stock has been received from the DC and the
free gift under promotional offer are bundle along with the promotional stock. If the
free gift is too large to be accommodated on the shelf – the gift should be provided to
the customer at the till.
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Put up new promotional signage above the end cap at the marketing defined
locations.
ASM/SM briefs the staff at the morning and afternoon meeting on the promotion
details.
Staff need to be briefed on the following :
If the customer brings the promotion item back for exchange / refund – the customer
has to bring back the free offer as well. Exception can be made at the customer‟s
favour at discretion of store manager.
Filling up the gaps on the shelves for SKU sold during the day is defined as spot fill.
Fill F&V in a similar manner using crates stored in the bottom shelf of the wall racks,
It is the process of checking and moving stocks to ensure that the older stock gets
The thing which is strictly followed is removal of damaged part of the F&V will not
the store.
Employees identify & segregate near expiry products for mark down as per
Procedure for managing the concessionaire in our stores like the Pickles counters,
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map
Outline on the map the catchments which fall in 2 Km
(a) For F&V crates are received carefully for the item not for sale as per reliance retail
quality and are removed from the shelf.
EXPIRY:-
(a) Near expiry product is markdown as per the RR rule.
(b) An expired product is segregated and is treated as per following.
DC supply vendor
Dump inatstore.
the time of next delivery
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Markdown criteria:-
Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager.
Dumping of damages & expiry product:- Treatment for damaged & expired product are
done in following manner:-
For processing of dump (damaged & expired) approval is obtained from store
manage.
After dumping, all the dump are entered into dump register in the presence of SM
with his /her signature.
The entire dumped product is then get hand overed to garbage collection agency.
For type C damaged product some part of each product is kept as proof.
Finally the dump register is present near DM/AM for approval (signature).
(c)Dump on arrival:-
On arrival of goods (F&V stock received from DC) poor quality goods are
segregated.
It is kept in separate place in the store with the sticker “dumped on arrival – not
for sale” along with receiving date.
And the respective SM is informed.
In the GRN (goods received roles) for the delivery, poor quality stocks are
entered as “Damaged Quality”.
Further it isF&V
send to the kept head
for inspection and area
/ F&V category F&V executive is informed. E-mail is
head.
Finally dumped stocks are hand over to garbage agency.
In case the GRN is done at the back end maintain a record of the DUA and also
record the some on the invoice that is sent to the commercial team.
(9) Returns:-
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Return schedule is obtained from the state merchandising team and packing
of goods carton are planned.
They are packed properly. Food and non-food items are packed separately.
And GRDC is created in SAP for the quality to be returned.
Finally it is loaded and dispatched to DC in DC truck and return to DC
documents is get signed by the truck driver and is kept with itself.
SKUs by count:-
(i) Product variants are segregated. Numbers of units are counted and stickers are
pasted with the quality on SKUs.
(ii) It is continued until all the SKUs are not counted.
(iii) PI count in the HHT is opened (all PI document together) and quantity is entered
after scanning the EAN / article code of the SKUs from the product in the HHT
PI document.
(iv) It is continued in this manner till all the SKUs in the back of store is counted and
the quantity is entered in the PI documents with the help of HHT.
(e) Store Opening :-
(i) Store shutter is opened.
(ii) Burglar alarm is put off.
(iii) Entry for collection of keys and store opening details are recorded in the
register kept at the security.
(iv) Lights are switched on and all the equipments are checked for working made.
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(v) Generators are checked for water level, engine oil and Diesel.
On the
(i) salesCounting
floor-stock
andtake:-
weighing of bays are started, and quantity or count stickers are
pasted.
(ii) PI documents are opened, EAN/ article code on the products are scanned using
the HHT and the counted number is entered.
(iii) Similarly all the SKUs shelves and bays counted on sales floor and the count
entry is entered in the PI document.
(iv) Control sheet for the fixtures that has been counted are updated.
(v) Once all the articles in the store are counted and count entry is done in the HHT,
post the count data by pressing the “post count” button in the HHT only.
(vi) HHT would display the list of SKUs for which count has been not entered then
the article in the store is looked upon and count is updated in case the article is
present in the store and count entry was missed earlier.
(vii) The final counted data is posted once again by pressing the “post count” button.
(viii) Success log is checked to ensure that all the PI documents are successfully
posted.
(ix) The stock take report is generated is SAP and inventory differences is listed.
(x) In case of major variations record is performed and the count in the PI document
is changed and the count is reported.
(xi) The variation is checked and confirmed and then the difference is posted by
posting the PI documents in ZSTORE, using the „Post „option under “Phy inv.
Post” in the physical inventory menu.
(xii) The stock take check list lifted in the store.
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Catchment area: - the area and population from which a region attracts visitors or customers
FOOT TICKET
DATE FOOT FALL TICKET SIZE DATE FALL SIZE
11/16/2010 462 205 11/1/2010 408 204
11/17/2010 365 198 11/2/2010 546 308
11/18/2010 487 345 11/3/2010 546 435
11/19/2010 567 342 11/4/2010 453 397
11/20/2010 452 354 11/5/2010 456 198
11/21/2010 354 189 11/6/2010 453 231
11/22/2010 436 301 11/7/2010 523 303
11/23/2010 645 403 11/8/2010 435 352
11/24/2010 367 300 11/9/2010 543 342
11/25/2010 564 402 11/10/2010 435 241
11/26/2010 453 275 11/11/2010 564 312
11/27/2010 543 305 11/12/2010 543 309
11/28/2010 453 436 11/13/2010 426 189
11/29/2010 435 254 11/14/2010 534 256
11/30/2010 546 345 11/15/2010 423 352
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300
200 #REF!
100
0 0 0
1 2 3
100%
80%
60%
40%
162 304
20%
0%
MALE
FEMALE
Considering the above chart it can be concluded that female visit more as compare to the male
counterpart and hence reliance fresh owner should consider about the female and should take
more care of female in the sphere of services, protection and product availability also.
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300
250
91
200
60
150 149 female
119 47 male
100
30 65
50 45
0
7-15 YEAR 16-22 YEAR 23-32 YEAR 32-55 YEAR
if we consider the above chart it can be easily concluded that the people between the age
group 23-32 visit more and more in the reliance fresh store and hence store manager
should take care of this age group peoples so that they may captivate them by giving
various discount or facilities etc.
The targets for the current month to any store are assigned according to the sales figures of
the preceding month. Usually the target for the current month is greater than the sales
achieved for the last month by 10-15 % in normal conditions. They can also exceed to almost
25% in some cases where there is large scale supply of stocks of certain kind seeing upon the
arising opportunity for their sale.
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80
70 34.58 32.83
60
50 22.58
21.08 MTD Achieved
40 37.62 17.59 17.65
30 32.67 16.6 MTD Target
26.47 22.96
20 8.84 20.25 18.91 17.56
6.81
10 9.55 7.72
0
Reliance Retail calculates its input per store in form of sales / ft / day in total no. of hrs. of
operation (from 7:00 AM till 9;30 PM). This cost of operation / input includes rentals,
logistics cost, labor costs, electricity charges and up keep and maintenance charges. FTD
(fixed till date) sale / sq ft. represents the break-even point for the company. In case of
st st
NOVEMBER 2010 FTD takes into consideration. 31 days of operation from 1 NOV 2010
st
to 31 NOV 2010. FTD sale/sq ft is assigned to each individual store from the Mumbai based
headquarters of Reliance Retail
ST
SALES / PER SQ FT. UPTO 31 NOV 2010
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So it can be seen that none of the nine operating. Reliance fresh stores in HUBLI have been
able to achieve their break-even point for the month of NOVEMBER 2010. Reliance Fresh
stores are on verge of completing almost 2yrs of their operation in HUBLI DHARWAR but
they are yet to reach their breakeven point.
GROSS
Reliance Retail has a policy of not letting to exceed the shrinkage (loss of goods due to theft
& pilferage) & dumping (loss of goods due to expiry) to individually exceed 2% of the total
sales. It was observed that due to practices like better in-store upkeep, supply close to demand
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, better surveillance etc. the shrinkage & dumping were restricted to the desired level in
almost of the stores.
Sales / tickets (ticket size) FTD represents the value of sales per purchase that the stores
should make in order to reach the BEP margin.
84%
82%
80%
In this case also it was seen that none of the 9 stores have reached the BEP.
Reliance retail expected its Reliance Fresh venture to reach its BEP within a span of 1 – 1.5 of
their operation and to become a profit making entity after that out of 9 stores in
KARNATAKA all have completed their at least 1 – 2 years of existences but are yet to
achieve their BEP.
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RECOMMENDATION
COMMUNICATION:
PROMTNESS IN SERVICES:
Company should pay kind attention towards the existing customer and try to
provide them quick response in the sphere of services so that they become BSNL’S
loyal customers.
Many corporate houses were there who were reluctant to use BSNL lease line
provided that someone assures them to have a promt services from them.
SCHEMES:
Main competitor Airtel Tata and Reliance comes with various schemes and margins
on the other hand Bsnl is not giving any sort of scheme and discount that is why
many clients were inclined toward using the lease line offered by other players..
After all business is all about profit and retailer wants some profit and margins.
Behavior and commitments of sales man towards the dry outlets should be improved.
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CONCLUSION
It was a pleasant experience to have a project in a big company like RELIANCE FRESH. It has
given me an opportunity to know all dimensions of the market and how to tackle problems
of it .I have learned various functions carried out at all the level of organization especially of
middle level and lower level. After a rigorous period of my project I come to know that how
practical knowledge is different from the theoretical concepts.
From the survey and analysis of data it can be concluded that still there is a big opportunity
to convert small and big clients. But some how company is lagging behind in the era of
cutthroat competition .company is unable to make good relationship with corporate clients..
As RELIANCE FRESH is concern the company should become liberal on his policies. Company
should give the clients more facilities so that they may became new clients and may
continue through it. The company also needs a proper marketing wing to operate well in
these areas and accomplish the goal, mission and vision of the company.
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