TRANING PROJECT REPORT

ON
Implementation and Effectiveness of Sales Promotion
Reliance Industry
(Reliance Retail Industries Ltd.)

A Training project report

Submitted in Partial Fulfillment of the requirement

For the award of the degree of

MASTER OF BUISNESS ADMINISTRATION

Approved By AICTE, New Delhi &

Affiliated To Rajasthan Technical University, Kota (Rajasthan)

Academic Session 2007-2009

PROJECT GUIDE: - SUBMITTED BY:-

Mr. SOHAN LAL SHARMA Bhupendra Singh Rajawat

LECTERAR,MIMT,KOTA MBA III Sem., MIMT,KOTA

Modi Institute of Management and technology, Kota

(Approved By AICTE, New Delhi & Affiliated To Rajasthan Technical University, Kota)

Modi Education Complex, Dadabari, kota – 324009

Tel No. : 91-744-2504169, 2505421, Fax: 91-744-2391072

Web: Http//www.Modiedukota.Org

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 Acknowledgement

I would like to thank Reliance Industries Ltd., Jaipur for providing me with an opportunity to
work on my summer project.

I would like to thank my project guides Mr. Prateek Saluja and Mr. Dhanbeer Singh Nagy for
providing me continuous guidance & support and for their valuable inputs during the course
of my project.

The staff at Reliance Industries was very co-operative and helped me a lot by providing
required information whenever I needed it.

I am thankful to my Faculty Guide MR. SOHAN LAL SHARMA for their continuous
support and guidance.

And finally I would like to thank the entire faculty at MIMT Kota for equipping me to carry
out this study.

Bhupendra Singh Rajawat

(2007-09)

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 EXECUTIVE SUMMARY

Business organizations today are facing growth, competition and challenges as the economy
is growing. The growth and downfall of the company, depends on how it uses its resources.
Marketing is a tool through which a company can motivate the customer for purchasing the
product.

In the world of globalization every customer of company want quality product on cheapest
price and it is responsibility of company to provide quality product, cheapest price and better
scheme to customer.

Companies are using various type of promotion scheme for attracting the customers. These
promotion schemes are known as sales promotion schemes.

Sales promotion: Sales promotion describes promotional methods using special short-term
techniques to persuade members of a target market to respond or undertake certain activity. 
As a reward, marketers offer something of value to those responding generally in the form of
lower cost of ownership for a purchased product (e.g., lower purchase price, money back) or
the inclusion of additional value-added material (e.g., something more for the same price).

Reliance Industries Ltd. Is a public company. Which is founded as reliance Commercial

Corporation in 1966 by late Dhirubhai Ambani and now Mukesh Ambani S/o Dhirubhai
Ambani is a chairman & managing director of Reliance Industries Ltd.?

Reliance Retail Limited (RRL), a subsidiary of RIL. With a vision to generate inclusive
growth and prosperity for farmers, vendor partner, small shopkeepers and consumers.

Following promotion schemes are provide by Reliance Retail Ltd.

(1) Promo cycle: 1st day of every month reliance plan promotion schemes for that particular
month this is called promo cycle. Like thus every weekend (Saturday & Sunday) some new
attractive offers are introduced.

(2) Advertisement: Reliance fresh give the advertisement on news paper on weekends. They
publish 2 pages offer profile. In this profile they display their best offer schemes.

(3) Reliance one membership card: Reliance fresh provide loyalty card to regular
customer. If customer purchases Rs.100/-product they get 1 point. For regular customer
sometimes they give some other offers on regular basis.

(4) Promo zone: In this zone we display product which have attractive promotion. We put
this promo zone where every customer gives their glance easily.
(5) End caps: There are many bays in which we put our products. The side corner of the
bays is called end caps in which we display product which have promotion in that particular
bay.

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(6) Audio promotion: In reliance fresh store there are 2 or 3 msr. They have to give
announcement or recorded speech of that offers which are newly introduced and attractive
offer to pull the customer interest.

I have used both Primary and Secondary sources have been used for the collection of the
required data.
1. Primary data: Questionnaire
2. Secondary data: Website covered

I have analysis 100 customers knowledge about the company and my questionnaire is based
on knowledge of sales promotion scheme and company service.

(1) 3 Question are based on preference. These question showing the customer preference.
(2) 4 Question are based on service. These questions show the company service towards
the customers.
(3) 2 Question are based on awareness. These question showing the awareness about
company.
(4) 1 Question is based on promotion scheme. These promotion show the promotion
scheme which is provide by company to customers.

Questionnaires have been filled by 100 respondents.

And I analysis that

1) Customer should have knowledge about beneficial scheme which is given by the
company for the customers.
2) Marketing Department should give the knowledge about beneficial scheme to
customer during the purchasing time.
3) Customer should use these schemes for taking the advantage of company service.
4) So that customer would be sincere about understand beneficial promotion scheme
provide by company for customers.

And the result is that customer completes their joining formalities in time and it would be
beneficial to the Marketing Department.

TOPICS Page No.

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Certificate from company

Acknowledgment 2

Executive Summary 3

1. Chapter 1: Company Profile 8

1.1: Introduction

1.2: Organizational overview

1.3: Vision

1.4: Mission

1.5: Aim

1.6: Objective(Growth)

Chapter 2 Reliance retail ltd. 13

Introduction
Mega retail history
Future aspects
Why Retail for reliance
Retail plans & strategies
Type of Retail store
Reliance fresh concept
Conclusion
Chapter 3 : Project Profile 33

Introduction

1.1 Objectives of sales promotion.

1.2 Promotion activity.

1.3 Pro and cons of different type of sales

promotion.

1.4 Sales promotion in Reliance Fresh.

1.5 Challenges for Reliance Fresh.

Chapter 4 : Research methodology 42

1.1 Objective
1.2 Sampling technique
Chapter 5 : Data and data analysis 44

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1.1 Data analysis and interpretation

2. Conclusions 54

3. Limitations 55

4. Suggestions 56

5. Annexure 57

6. Bibliography 60

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Reliance An Overview:

Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002

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$ 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, fiber 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, fiber intermediates, plastics and chemicals), textiles
and retail.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fiber
producer in the world and among the top five to ten producers in the world in major
petrochemical products.

The Group exports products in excess of US$ 15 billion to more than 100 countries in the
world. 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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 COMPANY PROFILE

The Company expanded into textiles in 1975. Since its initial public offering in
1977, the Company has expanded rapidly and integrated backwards into other industry
sectors, most notably the production of petrochemicals and the refining of crude oil.

The Company now has operations that span from the exploration and production of oil and
gas to the manufacture of petroleum products, polyester products, polyester intermediates,
plastics, polymer intermediates, chemicals and synthetic textiles and fabrics.

The Company from time to time seeks to further diversify into other industries. In January
2006, the Company approved a plan to establish a retail business through a subsidiary
Reliance Retail Limited that will operate, among other things, supermarkets, convenience
stores and specialty stores across India. The Company approved initial expenditure of US$
750 million to fund the initial stages of this plan.

The Company's subsidiary Reliance Jamnagar Infrastructure Limited is currently establishing

infrastructure facilities such as roads and buildings for the proposed Special Economic Zone
(SEZ) at Jamnagar, Gujarat.

The Company's major products and brands, from oil and gas to textiles are tightly integrated
and benefit from synergies across the Company. Central to the Company's operations is its
vertical backward integration strategy; raw materials such as PTA, MEG, ethylene, propylene
and normal paraffin that were previously imported at a higher cost and subject to import
duties are now sourced from within the Company. This has had a positive effect on the
Company's operating margins and interest costs and decreased the Company's exposure to the
cyclicality of markets and raw material prices. The Company believes that this strategy is
also important in maintaining a domestic market leadership position in its major product lines
and in providing a competitive advantage.

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The Company's operations can be classified into four segments namely:

 Petroleum Refining and Marketing business.

 Petrochemicals business.
 Oil and Gas Exploration & Production business.
 Others.

The Company's refinery at Jamnagar is the third largest refinery at a single location in the
world.

The Company is:

 The world's largest producer of Polyester Fiber and Yarn.

 4th largest producer of Paraxylene (PX) and Purified Terepthalic Acid (PTA)
 6th largest producer of Mono Ethylene Glycol (MEG)
 7th largest producer of Polypropylene (PP)

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ORGANISATION STRUCTURE
BOARD OF DIRECTOR
Mukesh D. Ambani
Chairman & managing Director

Nikhil R. Meswani
Executive Director

Hital R. Meswani
Executive Director

Hardev Singh Kohli

Executive Director

Ramniklal H. Ambani

Mansingh L. Bhakta

Yogendra P. Trivedi

Dr. Dharma Vir Kapur

Mahesh P. Modi

S. Venkitaramanan

Prof. Ashok Misra

Prof. Dipak C. Jain

Dr. Raghunath A. Mashelkar

COMPANY SECRETARY
Vinod M. Ambani

MANAGEMENT

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It is headed by Dhiru Bhai’s son, Chairman Mukesh Ambani.

SUBSIDIARIES

Major Subsidiaries & Associates

 Reliance Petroleum Limited * Ranger Farms Limited.
 Reliance Concepts and Services (India) Private Limited.
 Reliance Retail.
 Reliance Global Management Services (P) Limited.

Reliance Retail
Reliance Retail is the retail business wing of the Reliance business. Many brands like
Reliance Fresh, Reliance Footprint and Reliance Time out, Reliance digital, Reliance
Wellness and Reliance Jewel come under the Reliance Retail brand. In November 2007,
Reliance announced its foray into branded jewelry market.

Environmental Record
In 2005 Reliance Industries was found to be one of the top 5 consumers of toluene in the
world. These five companies account for 30% of the total consumption. Toluene produces a
toxic chemical that is released into the air when it is burned. Under the 1990 Clean Air Act
Amendments (CAAA), the U.S. EPA is required to regulate emissions of listed toxic air
pollutants. Toluene has begun to have cleaner replacements made for it to be consumed.

Reliance Industry is the world’s largest polyester producer and as result, the biggest producer
of polyester waste. In order to deal with this large amount of waste they had to create a way
to recycle the waste. They operate the largest polyester recycling center that uses the
polyester waste as a filling and stuffing. They use this process to develop a strong recycling
process which won them a reward in the Team Excellence competition.

Reliance Industries backed a conference on environmental awareness in New Delhi in 2006.

The conference was run by the Asia Pacific Jurist Association (APJA) in partnership with the
Ministry of Environment & Forests, Govt. of India and the Maharashtra Pollution Control
Board. The conference was to help bring about new ideas and articles on various aspects of
environmental protection in the region. Maharshtra Pollution Control Board invited various
industries complied with the pollution control norms to take active part in the conference and
to support as sponsor. The conference proved effective as a way to promote environmental
concern in the area.

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Vision
To materially enhance the quality for every Indian there by becoming the most successful
socially responsible and admired retail company in India.

Mission
Being prosperity to millions of Indian producers especially our formers by providing the
attractive returns of their efforts.

Aim
1. Capture dominant market share of retail industry.
2. Have a pan-India footprint in about 800 towns & cities in India
3. Be a price & quality leader in all the major categories.
4. Cater to the need of both urban & rural population of the country.
5. Setup few thousand retail outlets of multiple formats & categories with appropriate
no. of fully automated distribution centre.

Objective (Growth)

1. Growth is the core objective of any retail company.

2. Growth does not usually find you. You need to find it or even mine for it. The
question is not “how fast can we grow”? Its how done keep growing at all.
3. Planned growth requires a frame work from optimizing the business to expanding the
business to redefine the business. It requires a process for investigation, generating
evaluation and initiating growth opportunities.
4. Profitable growth is the mission of every retailer. Everyone wants to work or business
with growing companies if implies that success is all about profitable growth.

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Reliance Retail Limited (RRL)

With a vision to generate inclusive growth and prosperity for farmers, vender partners, small
shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up
to lead Reliance Group’s foray into organized retail. With a 27% share of world GDP, retail
is a significant contributor to overall economic activity across the world .Of this, organized
retailing contributes between 20% to 55% in various developing markets. The Indian retail
industry is pegged at $ 300 billion and growing at over 13% per year. Of this, presently,
organized retailing is about 5% .This is expected to grow to 10% by 2011. RRL has
embarked upon and implementation plan to build state-of-the-art retail infrastructure in
India , which includes a multi-format store strategy of opening neighborhood convenience
stores, hypermarkets and specialty and wholesale stores across India . RRL launched its first
store in November 2006 through its convenience store format “Reliance Fresh”. Since then
RRL has rapidly grown to operate 590 stores across 13 states at the end of FY 2007-08. RRL
launched its first ‘Reliance Digital’ store in April 2007 and its first and India’s largest
hypermarket ‘Reliance Mart’ in Ahmedabad in August 2007. This year, RRL has also
launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance
footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance
AutoZone) and also an initiative in the health and wellness business through Reliance
Wellness’. In each of these store formats, RRL is offering a unique set of products and
services at a value price point that has not been available so far to the India consumer.
Overall, RRL is well positioned to rapidly expand its existing network of 590 stores.

Which operate in 57 cities? During the year, RRL also focused on building strong
relationships in the agri-business value chain and has commenced marketing fruits,
vegetables and staples that the company sources directly to wholesalers and institutional
customers.

RRL provides its customers with high quality produce that has better shelf life and more
consistent quality than was available earlier. RRL has made significant progress in
establishing state-of-the-art staples processing centres and expects to make them operational
by May 2008. Through the year, RRL also expanded its supply chain infrastructure. The
company is fully geared to meet the requirements of its rapidly growing store network in an
efficient manner. Recognizing that strategic alliances are going to be a key driver to its retail
business, in FY 2007-08, RRL established key joint ventures with international partners in
apparel, optical and office products businesses. Further, RRL will continue to seek

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synergistic opportunities with other international players as well. This year, RRL will
continue its focus on rapid expansion of the existing and other new formats across India.

Reliance Retail : The Mega Retail Story

Reliance Industries Limited (RIL) is entering the India retail sector in a real big way.

Blueprint for 800-odd Towns/Cities: Initial Investment Rs. 3,350 Crore

Amidst all sorts of speculations in the media circles about RIL’s intended retail foray, the
word finally came out on January 23, 2006, when the Mukesh Ambani-controlled Reliance
Industries Limited presented the mega retail initiative plans to its board of directors who
subsequently gave their consent to pursue the retail business through a wholly-owned
subsidiary of the company – likely to be christened Reliance Retail Limited.

The Reliance Retail blueprint envisages nation-wide chains of hypermarkets, supermarkets,

discount stores, department stores, convenience stores and specialty stores, in about 800-odd
cities and towns across the length and breadth of India. The RIL board of directors approved
the initial phase of the retail foray at an estimated cost of Rs 3350 crore (US$ 750 million).

That was big news for both the national and international media, which went all agog again
with intense speculation. Giving full respect to the importance of this announcement, more
than one leading international daily- chiefly, The Financial Times – gave this news a front-
page treatment, speculating (like many others) that this investment could just be an initial
trenched of a much larger commitment from Reliance Industries towards the retail project.

Just how big and grand this investment is for the Indian retail sector can be gauged by the
simple fact that the entire Indian retail sector is estimated to be at Rs. 1050,000 crore (US$
233 billion) – growing at five percent annually –and the estimated share of organized retail is
only Rs. 36000 crore (US$ 8 billion), at present, albeit growing at over 30 percent every year.

That makes Reliance Retail’s proposed investments equivalent to about 10 percent of India’s
organized retail market- such a level of investment in the Indian retail arena has been
unprecedented in the country’s most promising sunrise industry – retail.

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RELIANCE RETAIL LAUNCHES JAIPUR’S FIRST
SET OF FIVE PILOT ‘RELIANCE FRESH’ STORES
Jaipur, December 17, 2006: Reliance Retail Ltd. unveiled its first set of pilot stores in the
Pink City – Jaipur. Reliance Fresh, the first of the formats from Reliance Retail will be
opened up for consumers from the morning of 15th of December.

The five pilot Reliance Fresh stores will be rolled out at Khatrpura, Vijay path, Mansarover,
Shastri Nagar, Ram Gunj Chopar and Jawahar Nagar and have an area of about 2000 to 3500
sq.ft.

The stores will have an average of about 20 trained sales associates attending to the
customers in each store.

The Reliance Fresh stores will carry fresh fruits and vegetables, staples, top-up grocery and
dairy products. The stores will remain open from 8:00 a.m. to 9:00 p.m. seven days a week.

Within six weeks of launching the first set of Reliance Fresh stores in Hyderabad, the launch
in Rajasthan is the first launch in North India. With this launch, Reliance Retail has 22 stores
in Hyderabad and Jaipur.

Retail Will Become Core Business of RIL

Reliance Industries Limited is the largest and one of the fastest growing private sector
companies in India, with business activities encompassing almost all major growth sectors of
the Indian economy. The company manufactures and markets a wide range of products with
market leadership in almost all its businesses.

All of Reliance Group production and services ventures have one common feature – global
scale operations employing state-of-the-art technology in all fields. The company is truly
emerging as a well diversified conglomerate with global competence in technology,
management and financial capabilities to meet the needs of a rapidly growing Indian market.

With domestic market shares ranging from 40-80 percent .RIL is also ranked among the top
10 producers globally, for all its major product segments. it is one of India’s largest business
conglomerates with total revenues of Rs 100650 crore(US$ 22.6 billion).

It is being speculated within the industry that the ROI’s made by RIL in the retail space will
far out-shadow its existing core flagship businesses – and very soon retail will become the
core business for the Mukesh Ambani-controlled Reliance Empire.

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Why Retail for Reliance
For a long time, organized retail in India remained the attraction of only a few enterprising
Indian entrepreneurs, who took the plunge into the deep sea of a hitherto uncharted territory.

It is only in the last 10-15 years that the retail sector’s inherent attractiveness started catching
the attention of large corporate house in India, like the Raheja Group, RPG Enterprises, the
Primal Group etc. but with due respect to all of them their vision has remained conservative
and they have been modest in scaling up their retail business models to take it to the next
level of operations with a pan-India presence.

The slow pace of consolidation and indecisiveness in experimenting and migrating between
multiple formats, categories and channels. This has prevented them from reaping the true
benefits of modern retailing.

 The first driver is a self-sustaining buoyant India economy that is growing at eight
percent a year.
 The second is that as the economy grows and expends, the consumption habits and
patterns of people also change –and it is changing real fast in India.
 The third important driver of organized retail is the country’s demography- India is
home to the largest and the youngest population in the world.

India’s 300 million-odd middle-class, the real consumers, is catching the attention of the
world.

Going by its past track record of business acumen and foresight, Reliance Industries could
not afford to miss out on this great potential that organized retail offers. The opportunity has
all along been there for all Indian businesses to grab, and indeed some have made a serious
attempt. But it is RIL’s announcement of entering the retail sector in this big and grand
manner that has really provided the needed thrust for take-off, it has shaken up not only the
entire Indian retail fraternity and key stakeholders therein, but has also evinced the interest of
other business groups to look up to retail and consider sizeable green field investments in
retail ventures as also in building up to supply chain from farm/manufacturer to retail stores.

Hital Meswani Gives First Hint of RIL’s Retail Plans at IRF’05

It was at the India Retail Forum 2005, organized by the IMAGES Group, when Hital
Meswani, Executive Director, Reliance Industries Limited, highlighted the changing
dynamics of retailing in key areas such as demand ,supply ,technology, supply chain
management and on how the industry expects government to foster and facilitate a more
proactive retail trade policy.Hital Meswani remarked, at the IRF’05, that change in demand
patterns have provided a huge opportunity to organized retail, as it realigns itself with global
trends in value-oriented shopping experiences. He opined that change in supply trends

16
provides the greatest challenge to retailers as price points grow competitive and new formats
emerge on a large scale, and to provide all of that to the ever-demanding customer without
compromising on assured supply and highest quality. These remarks were an indication of the
seriousness with which RIL was working towards its retail venture – and the leaflets of the
blueprint started unfurling thereafter, albeit cautiously.

RETAIL PLANS & STRATEGIES

Manoj Modi and Hital Meswani, flanked by a core team of trusted lieutenants and business
aides, constitute the top hierarchy in Reliance Retail. They have access to close supervision
from Mukesh Ambani himself. The retail RIL has set a revenue target of Rs 90000 crore
(US$ 20 billion) from its retail operations by year 2010, almost 10 percent the size of the
current organized retail business in the country. It dwarfs India’s current numero uno in
organized retail chain, Pantaloon Retail, which currently has an annual turnover of US$ 240
million from its 84 outlets spread over 30 cities and has projected revenues of US$ 2 billion
by 2009.

RIL’s plans include a pan-India footprint of its stores, across multiple formats and categories,
in more than 800 cities and towns, and in record time.

Plans are humungous and Reliance insiders claim that the objective is to ‘do a Wal-Mart’ in
India.

Targets 90,000 Crore, Turnover by 2010.

Multiple Formats with Investment of Rs 30,000 Crore

The brains behind the mega retail venture have been able to ideate and develop a low cost
pan-India supply-chain model that will involve massive economies of scale.

The strategy is to set up a chain of hypermarkets, supermarkets discount stores, specialty

stores, and convenience store formats in 800-odd cities and towns across the length and
breadth of the country at an investment of amount Rs 30,000 Crore (US$ 8 billion).

The retail foray will have almost all the leading Indian and international brands, and possibly
a sizeable presence of private labels as well, and would clearly try and build a loyal customer
base with tens of million of consumers from across the country.

While the sheer scale of operations will ensure Reliance’s retail business a 20 percent return
on investment over a span of five years, its rural low cost-high return investment will ensure
sufficient competitive edge vis-à-vis purely urban retail operators.

First Phase: 1575 Outlets by March 2007

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The first phase will see around 1575 retail outlets coming up in just three months- between
December 2006 and March 2007. The first of these outlets will be opening around September
this year, either in Mumbai or Ahmedadad.

Reliable sources say that the retail business would start with 20 destination points in A-class
cities in India, and soon expand to over 100 destinations in a very short span of time. On an
average, each of these retail centers could be spread over 100 acres of land that would house
leisure and entertainment facilities, small hospital complex, eateries and a big mall. RIL
insiders are, of course, tight-lipped about everything.

Further, it has been reported in the media circles that initially the company has targeted the
five states of Maharashtra, Gujarat, Punjab, West Bengal and Andhra Pradesh for the first
phase of retail rollout.

Gradually, in the next two to three years, Reliance Retail plans to establish a pan-India
presence of all its formats, targeting not only the major metros and cities, but also the second-
tier towns and semi urban and even rural centres. Quite clearly then, the number- 800 towns
and cities – has been very strategically and meticulously worked upon.

F&B GENERATE 40 % SALES REVENUE, DIRECT EMPLOYMENT

TO OVER 5 LAKH
It is internally estimated that the food and beverages category will account for as much as 40
per cent of the total revenue generated from the Reliance Retail venture and that the company
plans to give direct employment to more than five lakh people. About 23 CEOs across
multiple functions and categories will oversee the retail operations.

The popular format in town and rural settings will be hypermarkets, which will be
warehouse-style stores spread over 1, 50,000 sq.ft and will be selling products ranging from
consumer electronics and groceries to fresh food and clothes. There will also be smaller
75,000 sq.ft supermarkets.

RIL gas roped in leading retail consulting firm, Technical Advisors and management
consulting firm AT Kearney to provide specific and specialized strategic inputs, and advise
the top management of Reliance Retail during the entire planning, design and implementation
and execution stages of the massive retail foray reports say.

EVALUATION OF CATEGORY MIX & FORMATS:

Reliance Retail has studied the potential of all possible categories of products and services
retailing. In fact, it is keen on capturing market leadership in every possible retail category,
once it has rolled out and consolidated its operations.

The market insights and intelligence derived from this effort has helped Reliance to evaluate
each category on its market-size growth rate and potential as being one of the main

18
determinants for its retail rollout operations. This can clearly be taken as a precursor to
Reliance understands of the retail market in India, in terms of clear understanding of:

 The primary sources of procurement of products

 Average inventory (retail and warehouse) that is normally maintained at retail stores
across various categories.
 Seasonal sales variation in categories across different regions in the country.
 Shrinkage and wastage of products and percentage of returns there on
 The credit details (in terms of the number of days and cash) that retailers normally
get from their supplier across various product categories and
 The average gross margin (percentage of MRP) that the retailer generally gets on its
products.

Apart from food and grocery, which will contribute 40 percent to total sales the company is
strongly looking at apparel, lifestyle, consumer durables and leisure and entertainment
operations as its major drivers of business. It is considering the establishment of both multi-
brand as well as exclusive brand outlets for certain categories of operations.

While most of outlets will be company-owned, the convenience- store format could possibly
be the only exception to be operated through a franchisee route in collaboration with mom-
and-pop Kirana shop-owners, which in itself is a novel concept that could work very well in
the Indian context.

Rs 8,000 Crore Earmarked for pan-India supply Chain Network

The success of any mega retail venture hinges on the scale and efficiency it can establish in
supply Chain Management (SCM). Reliance is strongly focused on establishing a robust and
cost- effective supply chain network that will ultimately pass the cost- benefits to its
customers.

It is estimated that more than a quarter- over Rs 8000 crore – of Reliance Retail’s planned
investment of Rs 30000 crore would be spent on setting up of the supply chain network.

This unprecedented level of investment in building the supply chain network will become a
key differentiator for Reliance’s Retail project.

Strongly believing in the ‘farm-to-fork’ model, RIL top brass made a few trips to various
states last year to work out an exclusive contract-farming project with the farmers whereby
Reliance Retail will purchases fresh vegetable and farm produce from these states and
transport the same to its warehouses, which will subsequently transport the same to the inter-
connected Reliance retail centres. To strike an example, pineapples that are sold at a mere 25
paisa a piece in the North-East will be purchased in bulk by Reliance Retail. What this also

19
ensures is that farmers and growers get a fair price for their produce and the huge cost
benefits fo wholesale procurement gets passed on the end-consumer.

As part of its backward integration, the company has plans to set up an integrated supply
chain infrastructure, including a cold chain for foods. The blueprint envisages retailing
everything. It is believed that RIL will feed the huge retail chain through seven large
wholesale terminals. Its plans include over 150 warehouse clubs or distribution centres,
catering to the supply and requirements of its specialty stores, hypermarkets, supermarkets,
department and discount stores. Various media reports suggest that the company is actively
scouting for real estate across India and may even hire large malls for its purpose.

In the consumer durables sector, Reliance Retail is reported to have entered into agreements
and contracts with the leading manufacturers to procure merchandise directly form their
factories.

Rill’s huge warehousing facilities are to be dotted all over the country and expected to be the
hub, the nerve-centre for the supply base that will feed the network of stores. Bangalore, for
instance is likely to be the base for Reliance Retail’s apparel operations.

Retail Talent : Where Do They All Come From ?

With the blueprint for retail operations prepared, the most important aspect is the acquisition
of competent human resources and manages talent so as to realize this mega vision of
Mukesh Ambani.

Modern organized retail being a relatively new area of business activity in India, there is
obviously a dearth of adequately skilled manpower. And given the gigantic scale of RIL’s
retail operations, the availability of retail professionals at various levels and functions was
always a cause of major concern.

However, Reliance is what it is today due to its ability to attract the best of available talent in
which ever field it chooses to operate. A cursory glance at the list of high-profile retail
professionals, who have been recruited by ‘Reliance Retail’ over the last couple of months,
makes it evident that many of the jewels of modern organized retailing in India have flocked
to the company and more will follow suit.

Mukesh Ambani himself is taking an active role in selecting and recruiting the top-level
management of Reliance Retail, reliable sources say. More than half of the top-level
management, the ‘generals’ of Mukesh Ambani, have already been absorbed. And it’s a
virtual ‘who’s who’ of the retail fraternity in India who has come together.

Raghu Pillai, among the tallest names in retail operations, strategy and supply chain
management, is now the President and Chief Executive (Operations and Strategy) at Reliance
Retail.

20
D Saravanan was the big daddy of supply chain and quality control at burger king,
McDonald’s. He will head similar functions at Reliance Retail and will also be responsible
for the linkages of backward integration.

Reliance Retail will also have state-level CEOs, who will be owners of the geography and the
entire store formats therein. The heads of the business verticals will drive profits at their
respective categories, whereas the geography owner will be accountable for individual store
and regional performance. Even as the top management CEO/president-level positions are
getting filled, Reliance Retail might yet face a problem of resources for its middle and lower
management staff and service agents at the floor-level. The rumours have it that Reliance is
not averse to poaching people resources across functions from existing players. It is also
being said that the high profile CEOs who have already been absorbed by Reliance Retail
will pull in their business associates, colleagues and friends from companies they served
before.

If media reports get it correct, Mukesh Ambani is ready to pay Rs 100 crore in salaries in the
firs year itself. This is being done with a view to attract the best available talent.

Reliance Retail Ltd has 11 types of store.

1. Reliance Fresh: Fruits, Vegetables, grocery, specialty store.

2. Reliance Super: Mini hypermarket.
3. Reliance Mart: India’s Largest Hypermarkets today.
4. Reliance Digital: Electronics Specialty store.
5. Reliance Trends: Apparel Specialty store.
6. Reliance Wellness: Health, Wellness and Pharma specialty store.
7. Reliance footprint: Footwear specialty store.
8. Reliance jewels: Jewellery specialty store.
9. Reliance timeout: Books, music, stationery, toys, gifts.
10.Store by Reliance digital: Exclusive Apple products store.

21
 Reliance Fresh Concept

1. Reliance Fresh Store will cater to consumer with a wide range of variety and choice
of fresh fruits, Vegetable, Staples, Dairy Juices, Beverages and processed food.
Reliance Fresh Store is neighborhood stores targeting all income groups.
2. The differentiation for reliance fresh stores will be the consistent availability of a
wide range of variety of quality fruits, Vegetable and dairy products,” the Farm of
Work” Strategy and the shopping experience is expected to provide competitive
advantage to Reliance Fresh.
3. These pilot stores are launched to understand the customer need. Over the next few
months, by in cooperating the learning gained at these stores, reliance Fresh Stores
will fine tune it’s offering in its subsequent store opening.

RELIANCE RETAIL LTD. PUNCH LINE IS

“GRAHAK DEVO BHAVA”

22
CONCLUSION:-
The magnitude and strategy of RIL’s retail foray is sure to have far reaching social and
economic implications by directly influencing the lifestyles of hundreds of millions of
consumers, besides indirectly impacting the livelihood of tens of millions. This indirect
impact will be on those engaged in a wide range of economic activities including farming,
consumer goods manufacturing, and a host of myriad other services that bring hundreds of
categories of goods and services from the producers to the final consumers.

Business analysts feel that Mukesh Ambani’s advantage is his huge financial strength
coupled with a track record of implementing mega projects in record time at globally
competitive capital costs. Mukesh Ambani has learned to dream big from his great visionary
father the late Dhirubhai Ambani, who is acknowledged as one of India’s tallest, most
ambitious and successful business leaders for his sharp business acumen and skilled people
management ability. If the announced retail project is any indication, Mukesh Ambani has
indeed inherited all these skills from his father. Re-writing the rules of business has been the
forte of Dhirubhai and Mukesh is attempting the same in retail.

Quite clearly, RIL is now all set and ready to conquer the organized retail domain. The Indian
retail scene is now going to witness some real fast-paced action with the consumer-as always-
having the best deal.

Propelling the Circle of Prosperity.

Reliance Retail Ltd. Began building an unbreakable bond with our shareholders in the
eighties.

Through Retail Business, RRL are extending this business principle to create strong ties with
consumers by delivering quality at affordable prices. At the same time, RRL are also forging
strong and enduring partnerships with millions of farmers. Organized retailing along with a
next generation physical distribution system is at the core of this transformational initiative.
This idea has evolved from the new paradigm in consumption of products and services in
India. Reliance Retail will usher in enormous spin-off benefits for the Indian economy and its
various constituents by delivering better returns to the Indian farmers and producers by
connecting them directly to Indian and global consumers. Reliance Retail will help them to
develop partnerships with small retailers to enlarge their consumer offerings and income,
while generating employment for about one million people in the ensuing years. Just as
information technology and communication enabled a new wave of urban and industrial
prosperity, RRL organized retailing initiative will bring about a new wave of rural prosperity.
It will carry the benefits of globalization and reform to the doorsteps of Indian farmers.

23
List of the Store at Jaipur
1) Raja Park, Jaipur.

2) Jawahar Nagar, Jaipur.

3) Adarsh Nagar, Jaipur.

4) Brahm Puri, Jaipur.

5) Subhash Choke, Jaipur.

6) Krishna Pol Bazar, Jaipur.

7) New Sanaganer Road, Jaipur.

8) Vijay Path, Mansarover, Jaipur.

9) Maharani Farm, Mansarover, Jaipur.

10) Gopal Pura Bypas, Jaipur.

11) Malviya Nagar, Sector No.1, Jaipur.

12) Malviya Nagar, Sector No.2, Jaipur.

13) Sanaganer Road, Jaipur.

14) Bhavani Sing Marg, Jaipur.

15) Barket Nagar, Jaipur.

16) Murli Pura, Jaipur.

17) Joth Wara, Jaipur.

18) Mahesh Nagar, Jaipur.

19) Brij Lal Pura King Road, Jaipur.

20) Vaishali Road, Jaipur.

21) Shashtri Nagar, Jaipur.

22) Vidhya Dhar Nagar, Jaipur.

24
The Global Retail Industry
Retail has played a major role world over in increasing productivity across a wide range of
consumer goods and services .The impact can be best seen in countries like U.S.A., U.K.,
Mexico , Thailand and more recently China.

Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also
heavily assisted by the retail sector.

Retail is the second-largest industry in the United States both in number of establishments
and number of employees. It is also one of the largest worlds wide.

The retail industry employs more than 22 million Americans and generates more than $3
trillion in retail sale annually. Retailing is a U.S. $7 trillion sector.

Wal-Mart is the world’s largest retailer. Already the world’s largest employer with over
1million associates, Wal-Mart displaced oil giant Exxon Mobil as the world’s largest
company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the most
successful retail brand in the world due its ability to leverage size, market clout, and
efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500
companies in the world. Forbes Annual List of

Billionaires has the largest number (45/497) from the retail business.

Generation of Employment by Retailing

Country Share of Retail in Total Employment(%)

India 8

China 6

Poland 12

Brazil 15

USA 11.7

Korea 18

UK 11

Malaysia 7

Organized Retailing as a % of total Retailing

25
 Country Current share of org. retailing (%)

USA 80

WUC 70

Argentina 40

Brazil 40

Thailand 40

Korea 35

Taiwan 35

China 20

Malaysia 20

Poland 20

India 2

*Data of 2007

Top Retailers Worldwide:

1. Wal-Mart Stores, Inc. U.S.A.

2. Carrefour Group France.
3. The Kroger Co. U.S.A.
4. The Home Depot, Inc. U.S.A.
5. Metro Germany

Retail Scenario in India: Touching Meteoric Scales

26
Retail Sector is the most booming sector in the Indian economy. Some of the biggest players
of the world are going to enter into the industry soon. It is on the threshold of a big revolution
after the IT sector. Although organized retail market is not so strong as of now, but it is
expected to grow manifolds by the year 2010. The sector contributes 10% of the GDP, and is
estimated to show 20% annual growth rate by the end of the decade. The current growth rate
is estimated to be 8.5%, but CRISIL report says that the retail market is most fragmented in
the world and only 2% of the entire retailing business is in the organized sector. There are
about 300 new malls, 1500 supermarkets and 325 departmental stores being built in the cities
very soon.

The retail boom will face a strong competition from the 12 million mom-and-pop stores,
which are easily accessible and approachable and provide services like free home delivery
and goods at credit. But buying from Malls, Supermarkets and Department stores like
Subhiksha, Marks & Spencer’s, etc gives a different feeling and the environment of pick and
choose from a variety of products. A number of retail giants are also going to explore the
market such as Reliance Retail Ltd and Wal-mart. The revolution is driven by large
expectations where both domestic and international players will be channel through which
other large stores in India are spreading themselves across the country.

As the corporate – the Piramals, the Tatas, the Raheja, ITC, S.Kumar’s, RPG Enterprises, and
mega retailers- Crosswords, Shopper’s Stop, and Pantaloons race to revolutionize the
retailing sector, retail as an industry in India is coming alive.

Retailing is the largest private industry in India & second largest employer after agriculture.
It contributes 10% of GDP and 8 % of Employment. With over 15million retail outlets, India
has the highest retail outlet density in the world.

Growth of organized retailing in India has been much slower as compared to rest of the world
its only 2% in last 10 years i.e. 1995-2000. One of the main reasons behind this is that
retailing is one of the few sectors where FDI is not allowed.

Within the country, there has been a protest by trading associations and other stakeholders
against allowing FDI in Retailing. On the other hand, the growing market has attracted
foreign investors and India has been portrayed as an important investment destination for
global retail chains.

27
Retail sales in India amounted to about Rs.7400 billion in 2002, expanded at an average
annual rate of 7% during 1999-2002. With the upturn in economic growth during 2003, retail
sales are also expected to expand at a higher pace of nearly 10%. Across the country, retail
sales in real terms are predicted to rise more rapidly than consumer expenditure during 2003-
08.
The forecast growth in real retail sales during 2003-2008 is 8.3% per year, compared with
7.1% for consumer expenditure. Modernization of the Indian retail sector will be reflected in
rapid growth in sales of supermarkets, departmental stores and hyper marts.

Sales from these large-format stores are to expand at growth rates ranging from 24% to
49% per year during 2003-2008, according to a latest report by Euro monitor International, a
leading provider of global consumer-market intelligence.

A. T. Kearney Inc. places India 6th on a global retail development index. The country has the
highest per capita outlets in the world - 5.5 outlets per 1000population. Around 7% of the
population in India is engaged in retailing, as compared to 20% in the USA.

In a developing country like India, a large chunk of consumer expenditure is on basic

necessities, especially food-related items. Hence, it is not surprising that food, beverages and
tobacco accounted for as much as 71% of retail sales in 2002. The share of food-related items
had, however, declined over the review period, down from73% in 1999. This is not
unexpected, because with income growth, Indians, like consumers elsewhere, have started
spending more on non-food items compared with food products. Sales through supermarkets
and department stores are small compared with overall retail sales.

Nevertheless, their sales have grown much more rapidly, at almost a triple rate (about 30%
per year during the review period). This high acceleration in sales through modern retail
formats is expected to continue during the next few years, with the rapid growth in numbers
of such outlets due to consumer demand and business potential.

Segment-wise Recent Trends and Development in Retailing:

28
a) Food and Grocery:

 Largest retail sector world-wide for 48% of consumer spending in India.

 Modern food retailing in its nascent state.
 Foreign retailers have significant interest in investing in this sector.
 Sensitive sector- maximum protest against FDI.
 Already manufactures like Amul, Dabur are trying to source their products through
global retailers such as Wal-Mart.
 Priority sector for government- focus on development of food processing, improving
conditions of farmers, etc. This in turn is dependent on organized food retailing.

b) Textiles and Apparel:

 Foreign brands are already in India through franchising, joint venture, local
manufacturing, etc.
 Major export sector- increase in sourcing from India in post MFA period.
 Entry of foreign players would create more demand- enhance sourcing.
 No major protest against FDI- 89% of retailers, manufacturers etc. interviewed favors
FDI.

c) Consumers Durables:

 Foreign brands are present in India through local manufacturing.

 Rapid increase in market share of foreign brands. Entry of foreign players would
create more demand- enhance sourcing.
 No major protest against FDI- 89% of retailers, manufacturers, etc. interviewed favor
FDI.

d) Music and Books:

29
  In India there is a strong bias for ethnic products.
 The sector is largely unorganized.
 If FDI is allowed, foreign players would have to reorganize their business strategies
and sell Indian products.
 Some impact of FDI on pricing- imported books is likely to become cheaper.
 With new modes of selling such as direct marketing and mall ordering, the scope for
expansion of organized retailing is limited.

e) Jewellery:

 An important export item- the US accounts for 36% of exports. Allowing FDI would
increase sourcing from India.
 Allowing joint venture would enable Indian brands to enter the global market.

f) Wooden Furniture:

 Raw materials are imported.

 Foreign players such as Gautier, Lista, Sauder and
 Herman Miller has entered the Indian market.
 Organized retailers are in favor of FDI through joint venture.
 Majority of the unorganized retailers are against FDI.

g) Leather footwear:

 Priority sector for export- foreign retailers are sourcing products from India.
 Domestic organized players such as Bata India limited have strong market presence.
 Around 85% of respondents are in favor of FDI.

h) Handicrafts:

 Entry of foreign retailers would provide opportunity to India craftsmen and artisans to
source their products in international markets through these retails chains.

i) Fast food chains:

30
 Foreign and domestic players have coexisted
 Foreign players are investing in the supply chain.
 Since franchising is the preferred route for entry of global fast food chain, FDI
restriction is not major barrier in this segment.

j) Real estate:

 Recently the government allowed FDI in real estate.

 To sustain real estate boom there is need to develop organized retailing which in turn
depends of FDI.

k) Fuel retailing:

 100% FDI is permitted through automatic route in petroleum marketing subject to

investment of Rs. 2000 crore.
 99% of the market is catered by state owned companies.
 Large foreign players such as Shell are entering the market.
 It is too early to judge their impact.

EVOLUTION OF INDIAN RETAIL

31
 Modern
Formats/
Government
International
Traditional/P Supported
ervasive
Historic/R Reach
ural Exclusive Brand Outlets
Reach Hyper/Super Markets
Department Stores
Shopping Malls
PDS Outlets
Khadi Stores
Convenience Cooperatives
Stores
Weekly Mom and
Markets Pop/Kiranas
Village Fairs
Melas

Sales Promotion

32
Sales promotion describes promotional methods using special short-term techniques to
persuade members of a target market to respond or undertake certain activity.  As a reward,
marketers offer something of value to those responding generally in the form of lower cost of
ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion
of additional value-added material (e.g., something more for the same price).

Sales promotions are often confused with advertising.  For instance, a television
advertisement mentioning a contest awarding winners with a free trip to a Caribbean island
may give the contest the appearance of advertising.  While the delivery of the marketer’s
message through television media is certainly labeled as advertising, what is contained in the
message, namely the contest, is considered a sales promotion.  The factors that distinguish
between the two promotional approaches are:

1. Whether the promotion involves a short-term value proposition (e.g., the contest is
only offered for a limited period of time), and
2. The customer must perform some activity in order to be eligible to receive the value
proposition (e.g., customer must enter contest). 
The inclusion of a timing constraint and an activity requirement are hallmarks of sales
promotion.

Sales promotions are used by a wide range of organizations in both the consumer and
business markets, though the frequency and spending levels are much greater for consumer
products marketers.  One estimate by the Promotion Marketing Association suggests that in
the US alone spending on sales promotion exceeds that of advertising.

Objectives of Sales Promotion

Sales promotion efforts are generally designed to assist the other communication activities
undertaken by a store. For example, awareness may be generated through advertising but

33
sales promotion may be used tactically to overcome any resistance to purchase. The desire
may be created by advertising, but its conversion into sales would be done by sales promotion
by offering a short-term incentive.

The various objective of sales promotion can be summed up as follows.

Stop and Shop

Customer just passing by, with no intention of purchasing, would be encouraged to enter the
store. The promotional activity may be such that it does not directly hint at purchases, but just
a free trial. For example, free hairstyling done using a hair gel sold by the store.

Shop and Buy

Once the customers have been persuaded to enter the store, they have to be convinced to
purchase by presenting the merchandise in such a manner that the customer feel the desire to
buy. For example, the store could offer a money-off voucher with the hair gel bottle or the
customer would be entitled to get a shampoo if they purchase the hair gel.

Buy Bigger

The promotional activity aims to persuade the customers to buy in a greater quantity or buy
other product in addition. For example, customers who buy a bigger pack may be entitled to
enter into a contest or they can get a free gift.

Repeat Purchases

The final objective is to encourage customers to return again and again to the store. This is
achieved by instilling loyalty among the customers through previous purchases. The goodwill
can be created by schemes like continuity program or store cards. Regular customers are
offered cards whereby after a certain amount of purchases they are entitled to a gift.

Sales can basically be increased by two methods. Either the number of transactions is
increased or the size of the average sale is increased. This can be achieved buy a number of
activities; some of them are listed below.

Increasing the number of transactions:

(1) Sales promotion method can be used to persuade more people into the store and
convince
them to buy.
(2) Point-of-sale incentives can be improved to generate quicker sales response.

Increasing the size of average sale:

34
 (1) Promotion can be introduced on high margin good, so the overall profitability
improves.
(2) Customers may be encouraged to buy more quantities by offering them various
incentives.

Advantages of sales promotion

The key advantages of retail sales promotions relate to its eye-catching appeal and distinctive
value offer associated with it. Their key advantages are listed below:

 It often has eye-catching appeal.

 Themes and tools can be distinctive.
 The consumer may receive something of value such as coupons of free
merchandising.
 Impulse purchases are increased.
 It helps to draw customer traffic and maintain loyalty to the retailer.

Disadvantages of sales promotion

The major disadvantages of sales promotion are:

 It may be difficult to terminate certain promotions without adverse customer

reactions.
 The retailer’s image may be hurt if corny promotions are used.
 Sometimes frivolous selling points are stressed rather than retailers’ product
assortment, price, customer services, and other factor.
 Many sales promotions have only short term effects.

Promotional activities
Sales promotion is any initiative undertaken by an organization to promote an increase in
sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other
elements of the marketing communications or promotions mix). Sales promotions are varied.
Often they are original and creative, and hence a comprehensive list of all available
techniques is virtually impossible (since original sales promotions are launched daily!). Here
are some examples of popular sales promotions activities:

(a) Buy-One-Get-One-Free (BOGOF) – The customer can get two unit of the product at
the price of the one. Which is an example of a self-liquidating promotion? For example if a

35
loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two for $1, you are
still in profit - especially if there is a corresponding increase in sales. This is known as a
PREMIUM sales promotion tactic.

(b) Customer Relationship Management (CRM) - Incentives such as bonus points or

money off coupons. There are many examples of CRM, from banks to supermarkets.

(c) New media - Websites and mobile phones that support a sales promotion. For example, in
the United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a
consumer would enter the code into a dynamic website to see if they had won a prize.
Consumers could also text codes via their mobile phones to the same effect.

(d) Merchandising - Additions such as dump bins, point-of-sale materials and product
demonstrations.

(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich
purchase. Once the card was full the consumer was given a free sandwich.

(f) Discounted prices e.g. Budget airline such as Easy Jet and Ryan air, e-mail their
customers with the latest low-price deals once new flights are released, or additional
destinations are announced.

(g) Joint promotions - Between brands owned by a company, or with another company's
brands. For example fast food restaurants often run sales promotions where toys, relating to a
specific movie release, are given away with promoted meals.

(h)  Free samples - (sampling) e.g. tasting of food and drink at sampling points in
supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential
consumers at supermarkets, in high streets and at petrol stations (by a promotions team).

(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.

(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The
Internet, and on packs.

(k) Cause-related and fair-trade products that raise money for charities, and the less well
off farmers and producers, are becoming more popular.

(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.

Many of the examples above are focused upon consumers. Don't forget that promotions can
be aimed at wholesales and distributors as well. These are known as Trade Sales
Promotions. Examples here might include joint promotions between a manufacturer and a
distributor, sales promotion leaflets and other materials (such as T-shirts), and incentives for
distributor sales people and their retail clients.

36
 Pros and Cons of different types of sales promotion

Promotion Type Pros Cons

 Can provide short term  Sales impetus stops
impetus to sales immediately at end of
 High immediacy promotion

 Can be used strategically  Requires high levels of

Competitions advertising and
to tie in with high or low
sales periods merchandising support

 Can gain 'first time'  Special packaging

buyers costs expensive

 Interactive
communication with
potential buyers in a
buying environment  Lab our intensive
 High sales conversion  Requires specialized
rate trained personnel
In Store Samplings and
Demonstrations  Favorably regarded by
retail trade  Requires close
supervision and
 Can be tied in with coordination
temporary price
reductions for additional
incentive
 High cost

 Provides trial purchase  Leads to lack of brand

Temporary Price
opportunities which can loyalty with consumers
Reductions
lead to repeat purchasing always buying the
current brand 'on
special'
 High cost.
 Difficult to manage
Special Offers (e.g.'
buy one get one free'  Can attract new users to  Requires special
'related item tie-ins' segment/product/brand inventory
etc.)
 Specially marked costs
expensive/difficult to
administer

37
  Can gain high in-store
product visibility  High labour costs
In-Store
 Reduces reliance on  Requires constant
Merchandising
retailers compliance with ongoing effort and
Plano grams and shelf management
allocations
 Can add to brand image  Results difficult to
attributes if skillfully measure
selected
Sponsorships  Extensive cost of add-
 Provides excellent ons such as
customer entertainment advertising, manpower,
facilities signage etc

Implementation of sales promotion in Reliance Fresh

(1) Promo cycle: 1st day of every month reliance plan promotion schemes for that
particular month this is called promo cycle. Like thus every weekend (Saturday &
Sunday) some new attractive offers are introduced because there are most footfalls on
the weekend. Midweek there is less footfall so reliance fresh introduced “budh
bazaar” in this promotion they decrease the price of fruit and vegetable to increase
footfall.

(2) Advertisement: Reliance fresh give the advertisement on news paper on weekends.
They publish 2 pages offer profile. In this profile they display their best offer
schemes, so people get awareness of promo schemes. Csa (customer services
assistant) and security guard also distribute their pamphlets to the customer.

(3) Reliance one membership card: Reliance fresh provide loyalty card to regular
customer. If customer purchases Rs.100/-product they get 1 point. The value of 1
point is .70 paisa. After 36 point (value Rs.25/-) customer redeem this value any time.
For regular customer sometimes they give some other offers on regular basis. For
example, if customer purchases above Rs.250/- they get double bonus point.

(4) Promo zone: In this zone we display product which have attractive promotion. We
put this promo zone where every customer gives their glance easily.

38
(5) End caps: There are many bays in which we put our products. The side corner of the
bays is called end caps in which we display product which have promotion in that
particular bay.

39
(6) Audio promotion: In reliance fresh store there are 2 or 3 msr. They have to give
announcement or recorded speech of that offers which are newly introduced and
attractive offer to pull the customer interest.
This is most effective way of promotion because there are some uneducated or some
customer are unable to give time to read all the promo schemes.
Sound gives more attraction to customer so they are able to touch with best product
which they want to buy.

40
 CHALLENGES FOR RELIANCE FRESH
 Instance competition with Other Retail stores.
 Unfair price strategy practice by small Retailers leads to price war.
 Delayed in service providing to customer and irresponsible behaviour of some retail
stores which are create negative perception about Retail stores.
 Unawareness of the customer about the Retail stores.
 Local market is also a problem for the Retail stores.
 Local market retailers and public are not provide support to Retail stores.
 Many times Govt. also creates hurdles in establishment of Retail stores.

DIFFERENCE BETWEEN LOCAL MARKET AND RELIANCE FRESH

BASIS LOCAL MARKET RELIANCE FRESH

1) PRICE Local market vegetables are Reliance fresh vegetables 30% cheapest
costly than reliance fresh. from local market.

2) PAYMENT Local market sellers always do They also provide credit facility to their
MODE their transaction in cash. customers.

3)COMPETITI- Local market sellers have more Where as branded company provides their
ON competition with each other for services on prescribed rates whether
price basis. companies belong to either India or any
other nation.

4)COMPENSA- The compensation for any The Liability for any losses and delay in
TION OR losses are not accepted by the delivery of the product taken by company
local retailers. and provide compensation.
LIABILITY

RESEARCH METHODOLOGY

41
Research Design

The research was “Descriptive” in nature as it dealt with describing the implementation and
the effectiveness of sales promotion in reliance fresh store. The research was designed to
discover the effectiveness of the sales promotion at Jaipur stores and also the survey of the
customer’s to know about their perception, the psychological factors associated with the
promotion, the benefits they are looking forth from the product and how do they rank in
terms of promotion schemes associated with it. The research was carried out after dividing
the market in to segments and the segment selected for the research was Jaipur retail market.

Sample Design

The first step in order to accomplish the task was to draw a sample. To serve this purpose, the
sampling technique adapted was:” Random Sampling”. For that purpose reliance fresh
stores at Jaipur was visited and maximum number of customers and comparative stores were
surveyed with an avowed objective of minimizing bias and maximizing the reliability of the
data. Also, by adopting this procedure it was ensured that the sample drawn would have the
same composition and characteristics of the population.

Size of the Sample

Since, the population was homogenous in nature to a large extent, hence a sample size of 100
respondents were taken to achieve the objective of the study due to limited time. Other
prominent factors, kept in view while determining the size of the sample were size of the
population, the number of questions in the schedule, the sampling procedure adopted and the
time constraint. Thus a sample consisting of 100 respondents were chosen which fulfilled the
requirements of efficiency, reliability and flexibility.

42
DATA COLLECTION

There are two types of data required for this project:-

 Primary Data
 Secondary Data

PRIMARY DATA

The primary data has been collected by survey method using the questionnaire. The
questionnaire is consisting of 10 questions, well thought as well as directly related to the
topic. The question of questionnaire is mostly closed ended along with few open-ended
questions. This is the most economical, efficient & effective way of collecting primary data.
It yields a wide range of information on various characters like attitude, opinion, motive &
behaviour.

SECONDARY DATA
1. Fact sheets of reliance fresh store.
2. Magazines (Business world).
3. Internet.

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 Analysis

(1) Which market like organized or un- organized you want to give preference?

Un-Organized 40

Organized 60

Slice 4
3
Un- 0%
organize
d Organiz
40% ed
60%

Conclusion

According to survey, it was found that approx 60% people want to give preference to organized
market and 40% want to give preference to Un-organized market.

44
 (2) Are you already customer of Reliance Fresh?

Yes 60

No 40

Slice 4
3
0%
No
40%
Yes
60%

Conclusion

According to survey, it was found that approx 60% people, in this sample, are already the customer of
the Reliance Fresh and 40% are know about the Reliance Fresh but still they are not the customers.

45
 (3) What is your opinion about the company service?

S.No. Particulars Respondents

1. Very Fast 20

2. Good 60

3. Average 10

4. Dissatisfied 10

Dissatisf
ied Very fast
Average
10% 20%
10%

Good
60%

Conclusion

According to survey, it is found that approx 60% people are says it is good, 10% says average, 20%
says very fast and 10% says dissatisfied with the company service.

(4) What you want to say about the store management?

46
 Good 50

Average 30

Worse 20

Worse
20%

Good
50%

Average
30%

Conclusion

According to survey, it is found that 50% people are says management is good, 30% says average and
20% says it is worse.

(5) Billing time after purchase the product?

2 min 40

2-5 min 25

5-10 min 4725

10 min 10
 10 min
10%

2 min
40%
5-10 min
25%

2-5 min
25%

Conclusion

According to survey, it is found that approx 40% people says billing time is 2min, 25%says 2-5min,
25%says 5-10min and 10% says 10min.

(6) Are you satisfied with the behaviour of the sales person on store?

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 S.No. Particulars Respondents

1 Completely satisfied 30

2 Satisfied 50

3 Dissatisfied 10

4 Completely dissatisfied 10

Completely
dissatisfied
10% completely
Dissatisfied
satisfied
10%
30%

satisfied
50%

Conclusion

According to survey, it is found that 50% people are satisfied with the behaviour of the sales person
30% people are completely satisfied, 10% people are dissatisfied and 10% people are completely
dissatisfied with the service of sales person.

(7) Do you have and use Reliance Fresh “Member ship Card” scheme?

49
 Often use 40

Always use 20

Don’t have card 40

Don't
Often use
have card
40%
40%

Always
use
20%

Conclusion

According to survey, it was found that 40% people are having and often use the Reliance membership
card, 20% people are always use card and 40% people don’t have card.

(8) How did you come to know about the Reliance Fresh?

50
 S.No. Particulars Respondents

1. Advertisement 50

2. Friend/Relatives 30

3. Any other 20

Slice 4
Any other 0%
20%

Advertiseme
nt
Friend/Relativ 50%
es
30%

Conclusion

According to survey, it was found that 30% people come to know about the Reliance Fresh with the
help of their friends/ relatives, 50% people come to know through advertisement and 20% people
come to know through any other medium.

(9) Why you want to purchase the product from Reliance Fresh?

51
 S.No. Particulars No. of respondents

1. Trust 53

2. Price 20

3. Yes Quality 70 15

4. No Service 30 12

Service
12%

Quality
15%

Trust
53%

Price
20%

Conclusion

According to survey, 53% people are give the preference to trust, 20% people prefer price, 15%
people prefer quality and 12% people prefer service.

(10) Do you want to purchase product from Reliance Fresh next time?

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 Slice 4
3
0%
No
30%

Yes
70%

Conclusion

According to survey, it was found that approx 70% people want to purchase the product and 30%
doesn’t want to purchase the product to Reliance Fresh.

CONCLUSION

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The information gathered through Questionnaire and after analyzing the response from the
varied customers, I analyzed that:

There are many problems faced during filled joining formalities by customers they are not
sincere to fill the joining formalities. Some times

1. They do not want to give any information.

2. Some persons are not interested.

3. Lack of knowledge about the company service.

4. They are not given right information.

And result is that there questionnaire could not go to official purpose and these questionnaires
going to pending.

So I analyzed that

It is necessary to give the knowledge about the company service and the scheme to customers
for completing their joining formalities and open their mind, views to get the benefits of
scheme.

It is beneficiary to complete the joining formalities in a time. Customers would be sincere

about understand beneficial scheme provide by company for customers.

LIMITATIONS OF STUDY

In spite of working under the banner of such a magnificent company and also under the
guidance of highly matured, capable, and understanding people, certain constraints do played

54
the role of hindrance in the way of accomplishing the assignment task. I would definitely like
to share those aspects too:

a. The research area was restricted only with in Jaipur City.

b. Limitations of time, means & resources.

c. It is a human tendency or it is a state of mind that whenever they are being

observed or interviewed by unknown person they behave artificially as they
hesitate to disclosing the facts. This is one of the problems observed with few
of the respondents during the survey.

d. Organization has its own culture and practices so it can’t be studies in general
as course orientated.

SUGGESTIONS

55
1) Customers should have knowledge about the scheme which is given by the
company.

2) Salesperson should provide the full knowledge about the beneficial schemes to
customers during the purchasing time.

3) Customer should use the scheme for taking the advantage of company scheme.

4) Result is that customers there joining formalities in time and it would be

beneficial to the Marketing Department.

56
 ANNEXURE

QUESIONNAIRE

1. Which market like organized or un- organized you want to give preference?

a) Un-organized b) Organized

57
2. Are you already customer of Reliance Fresh?

a) Yes b) No

3. What is your opinion about the company service?

a) Good b) Average

c) Very fast d) Dissatisfied

4. What you want to say about the store management?

a) Good b) Average c) worse

5. Billing time after purchase the product?

a) 2min b) 2-5min

c) 5-10min d) 10min

6. Are you satisfied with the behavior of the sales person on store?

a) Completely satisfied b) Satisfied

c) Dissatisfied d) completely dissatisfied

7. Do you have and use Reliance Fresh “Member ship Card” scheme?

a) Often use b) Always use c) No card

8. How did you come to know about the Reliance Fresh?

a) Advertisements b) Friends/Relatives c) Any others

9. Why you want to purchase the product from Reliance Fresh?

58
 a) Trust b) Price

c) Quality d) Service

10. Do you want to purchase product from Reliance Fresh next time?

a) Yes b) No

PERSONAL INFORMATION

NAME ……………………………………………………………

……………………………………………………………

AGE ……………………………………………………………

DESIGNATION ……………………………………………………………

ADDRESS ……………………………………………………………

PHONE NO. ……………………………………………………………

Bibliography

1. Text Books

A) P.K. Agarwal. ( Marketing Management)

59
 B) Philip kotler. ( Marketing Management)

C) Business World. (Magazine)

D) Reliance Annual Report (2007-08).

2. WEB SITES

A) www.google.com

B) www.ril.org

Feedback Form

Date …………….

60
Feedback help us in improving our store serve you better, please take out some time and
provide us feedback on your today’s shopping experience.

1. Store Cleanliness (a) Excellent (b) Average (c) Need Improvement

2. Pricing of our product (a) Excellent (b) Average (c) Need Improvement

3. Attractiveness or our (a) Excellent (b) Average (c) Need Improvement

promotion

4. Helpfulness and courteousness (a) Excellent (b) Average (c) Need Improvement

of our staff

5. Product availability (a) Excellent (b) Average (c) Need Improvement

6. What new product and service can we provide in the store to give you a better shopping
experience?

___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________

Personal Detail

Name __________________________________________________________________

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Telephone No ____________________________________________________________

Address ________________________________________________________________

Store code/Name _________________________________________________________

62