Reliance Retail

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Reliance retail
Project report (Maharaja Surajmal Institute of Technology)
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SUMMER PROJECT/INTERNSHIP REPORT

ON
“RELIANCE RETAIL STORE OPERATION”
AT
RANCHI
Submitted in partial fulfillment of the Post Graduate Diploma in Management (Marketing) at

Xavier Institute of Social Service, Ranchi
By
Mr. /Ms. ANJANI JHA
Roll No. 40 Session 2008-10
Under the guidance of:
Prof. PINAKI GHOSH
Xavier Institute of Social Service, Purulia Road, P.O.Box 7

Ranchi-834001

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APPROVAL SHEET
This is to certify that the Summer Project entitled “RELIANCE RETAIL STORE OPERATIONS
(Foot
(Footfal
falls,
ls, Catchm
Catchment
ent Analy
Analysis
sis & Ticket
Ticket Size)”
Size)” at RANCHI
RANCHI has been
been prepar
prepared
ed by Mr. Jyoti
Jyoti
Shankar Singh in partial fulfillment of the requirement

requirement for the award of Post Graduate Diploma
in Marketing Management at Xavier Institute of Social Service (XISS), Ranchi.
The study embodies data collected, analyzed & compiled by the researcher under the guidance of
the undersigned and thereby approved as indicating the proficiency of the researcher. Prof. Pinaki
Ghosh has also provided a lot of support from Institute to carry out my project.
Prof. Prof. Pinaki Ghosh

Research Guide Summer Internship Coordinator.
(Marketing)
Prof. A.R.Bodra Dr.Fr. B.A.Ekka, s.j.

HOD, Marketing Director, XISS

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DECLARATION
It is hereby declare that the project report entitled “RELIANC RETAIL STORE OPERATION ”
submitted for the degree of Master of Business Administration, is my original work and the
project
project report has not formed the basis for the award of any diploma,
diploma, degree, associateship,
associateship,
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: jyoti shankar singh
PGDMM-IV trisem.

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CERTIFICATE
This is to certify that Mr.j

Mr.jyoti
yoti shankar
shankar singh of PGDMM of XISS has completed
completed his project
report on the topic of “RELIANCE RETAIL STORE OPERATION AT RANCHI” under the
supervisi
supervision
on of Mr.PINAKI
Mr.PINAKI GHOSH faculty member of XISS. To best of my knowledge
knowledge the
report is original and has not been copied or submitted anywhere else. It is an independent work
done by him.
Prof. PINAKI GHOSH

XISS
Ranchi

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ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can substitute
which is possible
possible while working
working in real situations.
situations. Application
Application of theoretica
theoreticall knowledge
knowledge to
practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it’s not easy to achieve anything.
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.
First of all I wish to express my profound

profound gratitude
gratitude and sincere
sincere thanks to my esteemed learned
learned
Director Fr. Beni Ekka, Director, XISS, Ranchi, who allowed me to conduct the survey.
I would like to thank my HOD Mr.A.R.Bodra and my mentor Mr. PINAKI GHOSH who was
always there to help and guide me when I needed help. I would like to thank Mr.Anil kumar
Singh, (Head HR) Reliance Retail at Ranchi. 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.
JYOTI SHANKAR SINGH
PGDMM

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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
units of which
which 98% are small family businesses,
businesses, utilizing
utilizing only household
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
While sales people regularly
regularly call on instituti
institutional
onal customers,
customers, to initiate
initiate and conclude
conclude
transa
transacti
ctions
ons,, most
most end users
users or final
final custom
customers
ers,, patron
patronize
ize stores
stores.. This
This makes
makes store
store
location, product assortment, timings, store fixtures, sales personnel, delivery and other
factors, very critical in drawing customers to the store.
• Final customers make many unplanned purchases. In contrast those who buy for resale or
use in manufacturing are more systematic in their purchasing. Therefore, retailers need to
place impulse items in high traffic locations, organize, store layout , trains sales people in
suggestion , and place related items next to each other, to stimulate purchase.
• WHAT DOES THE RETAILING INDUSTRY INCLUDE?

• Department Stores
• Discount Stores
• Clothing Stores
• Specialty retailers
• Convenience Stores
• Grocery Stores
• Drug Stores
• Home furnishing retailers
• Auto Retailers
• Direct Sales Catalog and mail order companies
• Some e-commerce businesses

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• THE IMPORTANCE OF RETAILING

• Organized retailing in India was estimated at Rs.18, 000 crores in 2002-2003 and has
grown at about 40% over the last 3 years (Source KSA Retail Outlook).
• Retailing has a tremendous impact on the economy. It involves high annual sales and
employment. As a major source of employment retailing offers a wide range of career
opportunities including; store management, merchandising and owning a retail business.
• Consumers benefit from retailing in that, retailers perform marketing functions that makes
it possible for customers to have access to a broad variety of products and services.
Retailing also helps to create place, time and possession utilities. A retailer's service also
helps to enhance a product's image.
• Retailers participate in the sorting process by collecting an assortment of goods and
services from a wide variety of suppliers and offering them for sale. The width and depth
of assortment depend upon the individual retailer's strategy.
• They provide information to consumers through advertising, displays and signs and sales
personnel. Marketing research support is given to other channels, members.
• They store merchandise, mark prices on it, place items on the selling floor and otherwise
handle
handle produc
products;
ts; usuall
usually
y they
they pay suppli
suppliers
ers for items
items before
before sellin
selling
g ,,them
,,them to final
final
customers. They complete transactions by using appropriate locations, and timings, credit
policies, and other services e.g. delivery.
• Retail
Retailing
ing in a way,
way, is the final
final stage
stage in marketi
marketing
ng channe
channels
ls for consum
consumer
er produc
products.
ts.
Retailers provide the vital link between producers and ultimate consumers.
• RETAIL STRATEGY AND STRUCTURE

• Successful retail operations depend largely on two main dimensions: margin and turnover.
How far a retail enterprise can reach in margin and turnover depends essentially on the
type of business (product lines) and the style and scale of the operations. In addition the
turnover also depends upon the professional competence of the enterprise.
• In a given business two retail companies may choose two different margin levels, and yet
both may be successful, provided the strategy and style of management are appropriate.

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MARGIN TURNOVER MODEL
• Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for
understanding the retail structure and evolving a retail strategy."
• Margin is defined as the percentage mark tip at which the inventory in the store is sold and
turnov
turnover
er is the number
number of times
times the
the averag
averagee invent
inventory
ory is sold
sold in a year.
year. This
This is a
diagrammatic representation of the frame work and can be applied to almost any type of
retail business.
• Depending upon the, combination of the two parameters, a retail business will fall into one
of the four quadrants. For instance L-L signifies a position which is low on both margin
and turnover; whereas, H-L indicates high margin and low turnover.
LOW MARGIN HIGH TURNOVER STORES
• Such an operation assumes that low price is the most significant determinant of customer
patro
patronag
nage.
e. The stores
stores in this
this catego
category
ry price
price their
their produc
products
ts below
below the
the market
market level.
level.
Marketing communication focuses mainly on price. They provide very few services; if
any, and they normally entail an extra charge whenever they do. The merchandise in these
stores are generally pre-sold or self sold. This means that the customers buy the product,
rather than the store selling them.
• These stores are typically located in isolated locations and usually stock a wide . range of
fast moving goods in several merchandise lines. The inventory consists of well known
brand
brandss for which
which a consum
consumer
er pull
pull is create
created
d by the manufa
manufactu
cturer
rer throug
through
h nation
national
al
advertisi
advertising.
ng. Local promotion focuses
focuses on low price.
price. Wal-mart
Wal-mart in the United States is an
example and Pantaloon Chain or Subhiksha are Indian examples of such stores.
HIGH MARGIN LOW TURNOVER
• This operation is based on the premise that distinctive merchandise, service and sales
approach are the most important factors for attracting customers. Stores in this category
price their products higher than those in the market, but not necessarily higher than those

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in simila
similarr outlet
outlets.
s. The focus
focus in market
marketing
ing commun
communica
icatio
tion
n is on produc
productt qualit
quality
y and
uniqueness.
• Merchandise is primarily sold in store and not pre-sold. These stores provide a large
number of services and sell select, categories of products. They do not stock national
brands which are nationally advertised. Typically, a store in this category is located in a
down town area or a major shopping center. Sales depend largely on salesmanship and
image of the outlet.
HIGH MARGIN HIGH TURNOVER STORES

• These stores generally stock a narrow line of products with turnover of reasonably high
frequency. They could be situated in a non commercial area but not too far from a major
thoroughfare. Their location advantage allows them to charge a higher price. High over
head costs and, low volumes also necessitate a higher price.
LOW MARGIN-LOW TURNOVER STORES

• Retail enterprises in this category are pushed to maintain low margins because of price
wars. Compounding this problem is the low volume of sales, which is probably a result of
poor management, unsuitable location etc. such businesses, normally get wiped out over a
period of time.
RETAILING FORMATS (CLASSIFYING RETAIL FIRMS)

• Regardless of the particular type of retailer (such as a supermarket or a department store),
retailers can be categorized by (a) Ownership, (b) Store strategy mix, and (c) Non store
operations. Figure 1.3 illustrates this concept.
Form of Ownership
• A retail business
business like any other type of business,
business, can be owned
owned by a sole proprietor,
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

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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..
• Most independent retailers fail because of the ease of entry, poor management skills and
inadequate resources.
Retail Chain
• It invol
involves
ves common
common owner
ownershi
ship
p of multip
multiple
le units.
units. In such
such units
units,, the purcha
purchasin
sing
g 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
• Is a contra
contractu
ctual
al arrang
arrangeme
ement
nt betwee
between
n a "franc
"franchis
hiser"
er" (which
(which may be a manufa
manufactu
cturer
rer,,
wholesaler, or a service sponsor) and a "franchisee" or
• Franchisees, which allows the latter to conduct a certain form of business under an
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

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• 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.
Store Strategy Mix
• 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 genera
(A)Convenience generally
lly a well
well situat
situated,
ed, food
food orient
oriented
ed store
store with
with long
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
family,, househ
household
old linens
linens,, home
home furnis
furnishi
hings
ngs and applia
appliance
nces.
s. Large
Large format
format appare
apparell
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 Audi
Audio
o equi
equipm
pmen
ent,
t, Jewe
Jewell
ller
ery,
y, Beau
Beauty
ty and
and Heal
Health
th Care
Care,, etc.
etc. Cons
Consum
umer
erss are
are not
not
confronted
confronted with racks of unrelated
unrelated merchandise.
merchandise. Successful
Successful speciality
speciality stores
stores in India
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
which attract
attractss the family
family as whole
whole.. Pantal
Pantaloon
oon Retail
Retail India
India Ltd.
Ltd. (PRIL)
(PRIL) throu
through
gh its
hypermarket "Big Bazar", offers products at prices which are 25% - 30% lower than the
market price.

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Non Store Retailing
• 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
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:
• Retailing: Where
(A)In Home Retailing: Where,, a sales
sales transa
transacti
ction
on takes
takes place
place in a home
home settin
setting
g -
including
including door-door
door-door selling.
selling. It gives
gives the sales person an opportuni
opportunity
ty to demonstrat
demonstratee
products
products in a very personal
personal manner. He/She has the prospect's
prospect's attention
attention and there are
fewer distractions as compared to a store setting. Examples of in home retailing include,
Eureka Forbes vaccum cleaners and water filters.
• (B)Telesales/Telephone Retailing: This involves contact between the prospect and the
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
merchandise in a catalogue, which includes ordering instructions and customer orders by
mail. The basic attraction for shoppers is convenience. The advantages to the retailers
include lover operating costs, lower rents, smaller sales staff and absence of shop lifting.
This trend is catching up fast in India. Burlington's catalogue shopping was quite popular
in recent
recent times.
times. Some
Some multi
multi level
level market
marketing
ing compan
companies
ies like
like Orifla
Oriflame
me also
also resort
resort to
catalogue retailing.
• (D)Direct Response Retailing: Here the marketers advertise these products/ services in
magazines, newspapers, radio and/or television offering an address or telephone number
so that consumers can write or call to place an order. It is also sometimes referred to as
"Direct
"Direct response
response advertising."
advertising." The availabili
availability
ty of credit
credit cards and toll free numbers
numbers
stimulate direct response by telephone. The goal is to induce the customer to make an
immediate and direct response to the advertisement to "order now." Telebrands is a classic
example of direct response retailing. Times shopping India is another example.
• (E)Automatic Vending: Although in a very nascent stage in India, is the ultimate in non
perso
personal
nal,, non store
store retail
retailing
ing.. Produc
Products
ts are sold
sold direc
directly
tly to custo
customers
mers/bu
/buyer
yerss from
from

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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
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
Amazon.co
.com,
m, E-bay
E-bay and Bazee.
Bazee.com
com HDFCSe
HDFCSec.co
c.com
m are some
some of the
the many
many e-tail
e-tailers
ers
operating.
THE WHEEL OF RETAILING

• Is a hypothesis that attempts to explain the emergence of new retailing institutions and
their eventual decline and replacement
replacement by newer
newer retailing
retailing institution
institutions?
s? Like products
retailing institutions also have a life cycle.
• According
According to this theory
theory new retailers
retailers enter the market as, low margin,
margin, low price,
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
locations.. This trading up process.
process. Increases
Increases the retailers’
retailers’ costs and prices,
prices, creating
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.

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RETAILING DECISIONS
• There are many factors for retailers to consider while developing and implementing their
marketing
marketing plans. Among the major
major retailing
retailing decisions
decisions are these
these related
related to (a) Target
market
marketss (b) Mercha
Merchandi
ndise
se manage
managemen
mentt (c) Store
Store locati
location
on (d) Store
Store image
image (e) Store
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
engagin
engaging
g in market
marketing
ing researc
research
h and market
market segmen
segmentati
tation,
on, becaus
becausee they are findin
finding
g 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
achieve differentia
differentiall advantage.
advantage. The tremendous
tremendous growth in number
number of speciality
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
achieve the retailers
retailers return on investment.
investment. This involves
involves sales forecasting,
forecasting, inventory
inventory
requir
requireme
ements
nts,, decisi
decisions
ons regard
regarding
ing gross
gross margin
marginss and mark
mark ups etc.
etc. Mercha
Merchandi
ndise
se
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
Location is critical
critical to the success of a retail store.
store. A store's
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
travel a longer distance to shop at a speciality
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,
traffi
trafficc patter
patterns,
ns, access
accessibi
ibilit
lity,
y, compet
competito
itors'
rs' locati
location,
on, availa
availabil
bility
ity and cost
cost and
population shifts within the area.
• Store Image: A store image is the mental picture, or personality of the store, a retailer
likes to project to customers. Image is affected by advertising, services; store layout,
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.
image. A major complaint
complaint in many lanes of retailing, is the poor attitude
attitude of a
salesperson. There is a growing trend now, to provide training to , these sales clerks to
convert them from order takers to effective sales associates.
• Design: A store'
Store Design: store'ss exteri
exterior
or and interior
interior design
design affect
affect its image
image and profit
profit
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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16
effort at creating the right ambience. Merchandise display is equally important. An

effective layout guides the customer though the various sections in the store and
facilitates purchase.
• Promotion: retail promotion includes all communication from retailers to consumers
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
additional costs-fina
costs-financing
ncing accounts receivables,
receivables, processing
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.
EMERGING TRENDS IN RETAILING

• In recent years the nature of retailing has changed dramatically, as firms try to protect
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
country. In north India; there seems to be a proliferation of such malls surrounding
Delhi,
Delhi, in places
places like Gurgao
Gurgaon
n and Noida.
Noida. In genera
generall they
they target
target higher
higher income
customers, with their prestigious specialty shops, restaurants and department stores.
• Factory Outlets: Manufa
Factory Outlets: Manufactu
cturer
rerss are openin
opening
g factor
factory
y outlets
outlets to sell
sell off surplu
surpluss
invent
inventori
ories
es and outdat
outdated
ed mercha
merchandi
ndise
se.. This
This forwa
forward
rd vertica
verticall integr
integratio
ation
n gives
gives
manufactur
manufacturers
ers greater
greater control'
control' over distribution,
distribution, than selling
selling the merchandis
merchandisee to off
price
price retailers.
retailers. Mohini knitwear of Ludhiana
Ludhiana (Punjab) and number
number of woolen and
hosiery manufacturers set up their outlets in Delhi during winters.

lOMoARcPSD|22242096
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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.
• Divers
Diversifi
ificat
cation
ion of Off
Offerin
erings:
gs: Scra
Scramb
mbled
led (unr
(unrel
elat
ated
ed prod
produc
ucts
ts or serv
servic
ices
es))
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
Impact of Technology
Technology on Shopping Behaviors: The way retaile
Shopping Behaviors: retailers
rs presen
presentt their
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
RELIA NCE COMP
COMPANY
ANY PROF
PROFILE
ILE
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.
Backwa
Backward
rd ver
vertic
tical
al int
integr
egrati
ation
on has bee
been
n the cor
corner
nersto
stone
ne of the evo
evolut
lution
ion and gro
growth
wth 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 bil
billio
lion
n to more tha
than
n 100 countri
countries
es in the world.
world. The
There
re are more than 25,
25,000
000
employees on the rolls of Group Companies. Major Group Companies are Reliance Industries
Limited
Limited (in
(inclu
cludin
ding
g mai
main
n sub
subsid
sidiar
iaries
ies Rel
Relian
iance
ce Pet
Petrol
roleum
eum Lim
Limited
ited and Rel
Relian
iance
ce Ret
Retail
ail
Limited) and Reliance Industrial Infrastructure Limited.
FOUNDER PROFILE
"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream
It, you can do it."

lOMoARcPSD|22242096
19
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.
BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED
Mukesh D. Ambani Chairman &

Managing Director
H.S.Kohli
Nikhil R. Meswani Executive Hital R. Meswani
Executive
Director Executive Director
Director
RELIANCE FRESH
APKA FRESH APKA PADAOS ME

lOMoARcPSD|22242096
20
India’s Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been first off the
blocks by launching its first Reliance Fresh outlets in Hyderabad,
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
division and plans to begin retail
retail stores in 784 cities across
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
products and also will sport a separate
separate enclosure
enclosure and supply-cha
supply-chain
in for non-vegetarian
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.
Reliance Fresh will…
• Forge strong and lasting bonds with millions of farmers and will transform the
Relationship with customers to a new level
• Offer unmatched affordability, 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 great service so that our
Customers know that we can be trusted every day.
RELIANCE FRESH IN RANCHI
In Ranchi there are 9 outlets of Reliance Fresh:

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1. SPG Mart
2. Trikuta Hill
3. Rathod Circular Road
4. Vyas Enclave
5. L N Complex
6. M R Tower
7. Eyelex Hinoo Main Road
8. Prasad Mo
Motor
tors
9. Booty More
On an average turnover is 50, 000 in Ranchi, where as compare to others cities it is too low.
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.
These Are the Problems We Found In Reliance Fresh in Ranchi:–
– Ranchi is a cultural oriented city

– Per Consumer income lower than compare to metropolitan cities
– The most of the consumer will prefer to go for local market
– Reliance is situated in high income consumer area
There is limited consumer
– Advertising strategy is not good in Ranchi.
OBJECTIVES:

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- It is the organizational study
- identify the reliance marketing strategy in Ranchi
- We provide information to reliance fresh to focus
On middle class consumers in Ranchi
- Implementation of this plan should not affect
Other R
Marketing Research
Marketi
Marketing
ng resear
research
ch as a functi
functiona
onall area
area of managem
management
ent is becom
becoming
ing
increasingly important 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 information’s can be collected and utilized the help
of marketing research.
Marketing research is the systematic and objective identification,
collection, analysis, discrimination, and use of information for the
purpose of improving decision making related to the identification
and solution of problem in marketing.

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Types of Research
1. considered.
considered. Basica
Basically
lly there
there is a little
little knowledge
knowledge on which
which to build.
build.
2. Descriptive Research: Descri

Descripti
ptive
ve resear
research
ch embrac
embraces
es a large
large
propor
proportio
tion
n of marketi
marketing
ng resear
research.
ch. The purpos
purpose e is to provid
provide
e an
accurate snapshot of some aspect of the market environment. In
descriptive research, hypothesis often will exist, but them tentative
and speculative.
3. Causal Research: When it is necessary to show that one variable
Causes or determines the values of other variables, a casual

research
Approach must be used. Since data collection method is from

surveys,
Hence Descriptive type of research is used for analysis of the

data.
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

lOMoARcPSD|22242096
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Types and collection of data used
Basically there are two types of data which are used in marketing research
process.
1. Prim
Primar
ary
y Data
Data
A. Obse
Observrvat
atio
ion
n
B. Inter
ntervi
view
ew
C. Ques
Questition
onna
naire
ires
s
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: Pe
Personal
rsonal surveys, telephone
surveys and mail surveys.
Advantages of Surveys
1. Wider
Wider Distr
Distribu
ibuti
tion
on
2. Less
Less Dis
Distr
tribu
ibuti
tion
on bias
bias
3. Thou
Though
ghtf
tful
ul reply
reply
The primary data under processing is collected from both direct filling the
questionnaires and through telephone interviews also.

lOMoARcPSD|22242096
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1. Secondary Data: The data once collected by once person

become the secondary data if used by another person.
Sources of Secondary Data: The various sources of data are as follows:
1. Bibl
Biblio
iogr
grap
aphy
hy
2. Dire
Direct
ctor
orie
ies
s
3. Tele
Televvisio
isions
ns
4. News
Newspapape
pers
rs
5. Journals
6. Webs
ebsites
ites
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 type of Research Design will be Descriptive
 The types of Primary Data collection procedures that would

probably be used.
 Population –Dealers, distributors, fleet owners, company’s

representative in Ranchi.
 Process – Sampling
 Method of data collection – Typed Questionnaire
Attitude Measurement
Measurement

lOMoARcPSD|22242096
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Attitude is psychological constructs, a way of conceptualizing the

intangible. Attitude can’ really be observed or measured directly because
their existence is inferred from their consequences. Attitudes are mental
states used by individuals to structure the way they perceived their
environment and guided the way respond to it.
Types of Attitude measurements Scale: There are four types of

measurement scale as follows.
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.
The Nominal Scale is used while designing the questionnaire. Both close
ended and open ended questions are put together in the questionnaire.
DATA COLLECTION:
PRIMARY DATA – Collected from consumers and suppliers, reliance fresh employees
SECONDARY DATA – Collected from internet, articles, and news papers.

papers.

lOMoARcPSD|22242096
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The information is the major part of any research proposal to attain certain objectives we
require both secondary and primary data which is discussed above
HYPOTHESIS TESTED:
The hypothesis tested on both reliance fresh and people of Ranchi
H0: Reliance fresh is not famous & not significant in Ranchi.
H1: Reliance fresh is famous & highly significant in Ranchi.
LIMITATIONS:
Every research has certain limitation so there is no research is free from limitation same thing
happen in this research which is discussed below:
– Less investment in advertising in Ranchi city

– People are very conservative
– Primary data is not sufficiently available
– Much of the research done was based on consumer and supplier survey
– Research based on Ranchi city
– Last but not least time constraint.
– NEED
NEE D OF STUDY:
STU DY:--
A detailed study in Reliance Retail focusing primarily on two areas of their operations.
1. Retail
Retail stor
stores
es opera
operatio
tions
ns base
based
d on aspec
aspects
ts :-
I. Genera
Generall operati
operations
ons acco
accordi
rding
ng to the
the compan
company
y manual
manuals.
s.
II. Store operat
operations
ions based
based on
on SUSD (Shutte
(Shutterr up to Shutter
Shutter down)
1. An analysis
analysis of footfal
footfall,
l, ticket size
size & catchment
catchment of Reliance
Reliance fresh
fresh stores
stores operating
operating in
Ranchi district in order to determine their performances based on indicators like sale,
sale per sq. feet , gross margin
margin,, shrinkage , dumping and ticket size for the month of
May 2009 as well as their comparison with month of April 2009.

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ACTIVITIES
ACTIVITIES GROUPS WITHIN THE STORES
Getting Products to Shelf
1) Indenting & Purchase Orders (PO’s)
(a)Indenting – DC Delivery:-
Indenting will be happen after checking stock in t he 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.
(b) Raising PO for Bakery
PO (purchase order) for bakery supply is raised in the store and also released to the vendors
by the stores. PO on vendors can be raised only once each day & it will be valid for 24 hours.
2) Receiving:-
(a) Checking
Checking of Deliver
Delivery
y in DC
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.

lOMoARcPSD|22242096
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(b) Receiving Goods in Store: From DC & CPC
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.
➢ Note down the air condition temperature.
➢ Inspect stocks for transit damages.
➢ If any HU (Handling unit) / article is found damaged, excess, or missing noted it on
the trip sheet for return to DC.
➢ Do the GRN (Goods return note) for the delivery for the actual received quantity.
➢ Stores are not unloading transit damaged stocks. Transit damages will be returned to
DC in the same delivery truck.
➢ The main focus during goods receiving must be to unload the crates/ cartons from the
truck as quickly and safely as possible.
(c) Receiving from Vendors

Procedure for receiving goods directly from vendors. Behind this whole activity
owner is store manager/ asst. store manager. Reliance fresh stores indenting specially
bakery, beverage and books/magazines and music. SM/ASM Checks:-
➢ Check
Check the delive
deliverie
riess for quanti
quantity,
ty, damage
damagess and freshn
freshness
ess and accept
accept only
only good
good
products as per shelf life norms.
➢ Do not accept any short shelf life or damage quantity from vendor and reduce it from
the invoice if required.
➢ Remove all expired products from the shelf and get them replaced with fresh product
without any GRN for the same.
➢ In case of books/magazines and music SM/ASM check bar-codes on the books or
music CDs delivered by the vendor & return the unsold items to the vendors.
➢ Vendors and store staff check physically check DSD deliveries for damages and
freshness and accept only fresh saleable products.
3) Replenishment of goods
(a) Replenish Shelf from Goods Receiving Area
Process of moving goods from goods receiving area to the respective bays/freezers/chillers as
per the priority fill rule.
➢ Frozen products received must have first priority for stacking in the Freezers.
➢ Strictly follow FIFO

lOMoARcPSD|22242096
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➢ Place previous stock in the front/top of the shelf.

➢ Chilled product received must have second priority after frozen product for stacking
in the chillers.
4) Managing Price Changes
(a) Changing SELs

SELs for those SKU’s where price
price has been changed.
changed. All the changing
of SKU’s is done by headquarter Mumbai.
5) Managing Planogram
Implementation of changes of Planogram
The Planogram indicates the location for each SKU on a shelf. This process describes how to
change Planogram. Changing of Planogram is wholly managed by headquarter. Headquarter
send new Planogram to store by mail. Changing of fixtures and shelf heights, at
per new Planogram. The major change of shelf is less than 5 bays. Check quality of stock
received as per Planogram, raise an indent of additional stock if required. Stack goods as per
Planogram 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 Planogram to be
provided in standard format. Planogram indicate shelf heights. Planogram 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
Planogram. If the F& V section looks empty in the late evening because of stock outs, then
store manager may change only the F& V Planogram in a suitable manner to give appearance
of full store.
6) Getting Products from Shelf to customers
(a) Promotion management

management (setting up the store for new
new promotions)
promotions)
➢ 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.
➢ Put
Put up new
new prom
promot
otio
iona
nall sign
signag
agee abov
abovee the
the end
end cap
cap at the
the mark
market
etin
ing
g defi
define
ned
d
locations.
➢ ASM/SM briefs the staff at the morning and afternoon meeting on the promotion
details.
➢ Staff need to be briefed on the following :

lOMoARcPSD|22242096
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✔ Details of the promotion

✔ Period of the promotion
✔ Advantages to the customer
✔ Any special arrangements at the till
✔ Sales target for the promotion
✔ Process for dealing with left over promotion stock
➢ If the customer brings the promotion item back for exchange / refund – the customer
has to bring back the free offer as well. Exception can be made at the customer’s
favour at discretion of store manager.
7) Stock Display Management
➢ 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,
below heapers and in back room. Follow FEFO, FIFO rules.
➢ In case of F&V, remove the old crates, place the new crates on the racks and then
place the older products on top of the newer products – FIFO
➢ Checking of temperature of chillers and freezers is also a part of SDM.
➢ It is the process of checking and moving stocks to ensure that the older stock gets
sold before the newer ones.
➢ FEFO / FIFO to be followed for stock rotation for non F&V SKUs.
➢ The thing which is strictly followed is removal of damaged part of the F&V will not
be carried out at the shop floor under any circumstances.
➢ In every store every day employees check for date code check schedule for the day in
store perform.
➢ Employees removed expired products from the shelves and take them to the back of
the store.
➢ Empl
Employ
oyee
eess iden
identif
tify
y & segr
segreg
egate
ate near
near expi
expiry
ry prod
produc
ucts
ts for
for mark
mark down
down as per
per
markdown policy and guidelines.
➢ Procedure for selling loose staple products to the customer in desired quantity.
➢ Procedure for managing the concessionaire in our stores like the Pickles counters,
Sweet counters etc.
➢ Home delivery: for this there is some procedure which is followed by stores.
✔ Purchase a detailed street map of the local area e.g. Eicher
map
✔ Outline on the map the catchments which fall in 2 Km
radius of the store.

lOMoARcPSD|22242096
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✔ Prepare a list of roads / building with in that area.

✔ They appoint two employees for Home delivery champions
(HDC) – for order taking, picking and billing.
✔ Home delivery associate (HDA) – billing and delivery.
✔ There is two type of home delivery which is given by the
RF: Convenience order – this is a situation in which the
customer has come to the store, picked items, got them
billed and then request RF store team to deliver to his
resi
reside
denc
nce.
e. The
The paym
paymen
entt in this
this case
case for
for the good
goodss has
has
already been received.
Phone Orders - This is a situatio
situation
n in which the
the customer
customer
does
does not carry
carry out the activi
activities
ties of physic
physicall
ally
y picking
picking,,
billing etc. but places an order on phone by calling either at
the store or at the call centre. The payment in this case
woul
would
d be rece
receiv
ived
ed once
once the
the deliv
deliver
ery
y CSA
CSA goes
goes to the
the
customer destination and hands over the goods.
✔ Big orders store hire auto, rickshaws & it is decided by

store manager.
8) Managing waste and markdowns :
(a) Segregation of damaged and expiry in store :-
(a) For F&V crates are

are received
received carefully
carefully for the item not
not for sale as per reliance
reliance retail
retail
quality and are removed from the shelf.
(b) It is done by CSA
CSA / F&V champion.
champion.
EXPIRY:-
(a) Near expiry
expiry product
product is markdo
markdown
wn as per
per the RR rule.
rule.
(b) An expired product is segregated and are treated as per following.
PRODUCT TYPE TREATMENT
DSD supply Exchange with fresh stock from the

vendor at the time of next delivery
DC supply Dump in store.
(b)Markdown for damages and near expiry:-

Damaged and near expiry products are markdown as per the following rules:

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Markdown criteria:-
Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager.
Up to Rs 30 or 30% of SP(whichever is lower) & it is also done by DM / AM.
Beyond Rs 30 or 30% of SP & it is done by state fresh head.
Dumping of damages & expiry product:- Treatment for damaged & expired product
are done in following manner:-
Loss type Action
(a)
(a) Type
Type C dam
damag
agee • Dump in store (shown in SAP)
• Dispose in store.
(a) All expi

expiry
ry – (DC
(DC supply
supply & DSD
DSD • Dump in system (SAP)
without RTV) • Display in store
(a) Expiry – (DC

(DC supply
supply with RTV)
RTV) • Exchange with fresh stock, fresh
vendor at the time of next delivery
➢ For proces
processin
sing
g of dump
dump (damag
(damageded & expire
expired)
d) approv
approval
al is obtain
obtained
ed from
from store
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 is kept for inspection and area F&V executive is informed. E-mail is
send to the F&V head / F&V category 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:-
(a) Goods Return to DC:-

➢ A finalized list of good stock article for return to DC is obtained from state
merchandising team.

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➢ According to the list stock of articles are segregated and are moved to the
back office.
➢ 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.
(b) Goods Return to Vendor:-

➢ Stocks which are to be returned to vendor are taken out to the back room..
➢ DSD returns are segregated as per category guidelines.
➢ Return to vendor document is created in the store.
➢ Returns are loaded to the vendor’s vehicle.
➢ 2 copies of vendor document are made and is got signed by the vendor.
nd
➢ One copy is issued to the vendor and 2 copy is filled as record.
➢ Security control register for returns are updated regularly
(c) Physical verification of stock:-

➢ All PI documents present in the system are checked and closed.
➢ Stocks take checklist is updated.
➢ It is managed with DC to ensure that there is no afternoon or evening
delivery on the stocks count day.
➢ Following are checked and ensure:-
(i)
(i) GRN
GRN fofor all
all DC deliv
eliver
eriies hav
have bee
beenn pre
prep
pared
ared..
(ii)
(ii) GRN
GRN for
for all
all DSD
DSD deli
delive
veri
ries
es have
have been
been comp
complelete
ted.
d.
(iii) All damaged products (type c ) have been dumped.
(iv) All expiry product have been dumped.
(v) PI documents for stocks take is generated.
(vi)
(vi) HHTs
HHTs are
are man
manag
aged
ed and
and ens
ensur
ured
ed tha
thatt they
they wor
worki
king
ng pro
prope
perl
rly
y etc.
etc.
(a) Stocks
Stocks count
count and reconci
reconciliatio
liation:-
n:-
➢ Objective of the count, the layout of the stores and the process are briefly
explained to the staff.
➢ For stock count staffs are delivered for counting of articles in fixtures and for
entering the count in the HHT.
Back of store – store take

SKUs by weight (F&V, loose staples, etc)
(i) Each loose article are weighed separately and quantity stickers are pasted.
(ii)
(ii) It is cont
contin
inue
ued
d unti
untill all
all SKUs
SKUs are
are wei
weigh
ghed
ed..
SKUs by count:-
(i) Product
Product variants
variants are segregated
segregated.. Number of units are counted and stickers stickers are
pasted with the quality on SKUs.
(ii)
(ii) It is cont
contin
inue
ued
d unt
until
il all
all the
the SKUs
SKUs are
are not
not coun
counte
ted.
d.
(iii)
(iii) PI count
count in the
the HHT
HHT is openopened
ed (all
(all PI docum
document
ent toge
togethe
ther)
r) and
and quan
quantity
tity is ente
entered
red
after scanning
scanning the EAN / article code of the SKUs from the product product in the HHT
PI document.
(iv)
(iv) It is
is conti
continue
nued
d in this
this manne
mannerr till
till all
all the
the SKUs
SKUs in
in the
the back
back of
of store
store is coun
counted
ted and
the quantity is entered in the PI documents with the help of HHT.
(a) Store
Store Open
Opening
ing :-
(i) Store shutter is opened.

lOMoARcPSD|22242096
36
(ii) Burglar al
alarm is put off.
(iii
(iii)) Entr
Entry
y for
for coll
collec
ecti
tion
on of keys
keys and
and stor
storee open
openin
ing
g deta
detail
ilss are
are reco
record
rded
ed in the
register kept at the security.
(iv)
(iv) Lights
Lights are switch
switched
ed on
on and
and all
all the
the equip
equipmen
ments
ts are
are chec
checked
ked for workin
working
g made.
made.
(v) Generators are checked for water level, engine oil and Diesel .
(a) Store closing:-

(i)
(i) Anno
Announ uncecemen
mentt is is mad
madee for
for stor
storee clo
closi
sing
ng 10 minmin befo
beforere clos
closin
ing.
g.
(ii)
(ii) No.
No. of tilltillss to be
be close
closedd or ope
operarated
ted ful
fully
ly dep
depen
ends
ds upo
upon n the
the no.
no. of cus
custo
tome
mer r
in the store.
(iii
(iii)) Ensu
Ensure re tha
thatt no cust
customomerer is
is pre
prese
sent
nt ins
insid
idee the
the sto
store
re..
(iv) POS & EDC closure process is performed.
(v) It is checke
checked d that
that equipm
equipment ent is in order
order or not after
after which
which the store
store is closed
closed..
(vi) Security guard is got to put paper seal on safe and almirah.
(vii)
(vii) All air-c
air-cond
onditio
itioner
nerss are switche
switched d off
off except
except serv
server
er room
room a/ca/c (whic
(whichh must
must be
maintained between 22-24 degree c )
(viii)
(viii) Displa
Display y light
lightss and
and façad
façadee lights
lights are switch
switcheded off.
off.
(ix)
(ix) Back
Back room
room lock lock is seal
sealed
ed with
with a pap
paper
er seal
seal..
(x)
(x) Burg
Burgla larr alar
alarm m in thethe stor
storee is upda
update ted
d and
and key
key reg
regis
ister
ter is sig
signe
nedd in.
in.
(xi
(xi) Fina
Finalllly
y shutt
huttererss are
are lock
locked
ed..
On the sales floor-stock take:-

(i)
(i) Coun
Counti ting
ng and
and weigh
weighiningg of baysbays areare start
started
ed,, and qua
quantntit
ity
y or coun
countt stick
sticker
erss are
pasted.
(ii) PI documents are opened , EAN/ article code on the products products are scanned
scanned using
the HHT and the counted number is entered.
(iii
(iii)) Simila
Similarl rly
y all the
the SKUs
SKUs shelve
shelvess and bay bayss coun
counte
ted
d on sales
sales flo
floor
or and
and the councountt
entry is entered in the PI document.
(iv)
(iv) Contr
Controlol she
sheet
et for
for the
the fixtur
fixtureses tha
thatt has bee
been n count
counted
ed are
are upda
updatedted..
(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)
(vi) HHT
HHT would
would disp
displalay
y the lis
listt of SKUs
SKUs for for which
which cou
countnt has
has been
been notnot ente
entere
red
d then
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)
(vii) The fina
finall counte
counted d data
data is poste
posted d once
once again
again by by pressi
pressing
ng the
the “post
“post count
count”” button
button..
(vii
(viii)i) Succ
Succesesss log
log is check
checked ed to ensu ensurere that all the PI docu documen
ments ts are succes
successf sful
ully
ly
posted.
(ix)
(ix) The stock
stock take
take report
report is gene
generat rated
ed isis SAP
SAP and invento
inventory
ry diff
differe
erence
ncess is listed
listed..
(x)
(x) In cas
casee of maj
majoror var
varia
iatio
tions
ns rec
recor
ordd is per
perfoform
rmeded and
and the
the cou
count
nt in
in the
the PI doc
docum
umen entt
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
(xii)) The
The sto
stock
ck tak
takee che
checkck list
list lifte
lifted d in the
the sto
store
re..

lOMoARcPSD|22242096
37
ANALYSIS
ANALYSIS OF RELIANCE RETAIL
RETAIL STOREIN MONTH OF MAY 2009
Catchment area: - the area and population from which a region attracts visitors or
customers
FOOT TICKET FOOT TICKET

DATE FALL SIZE DATE FALL SIZE
5/16/2009 462 205 6/1/2009 408 204
5/17/2009 365 198 6/2/2009 546 308
5/18/2009 487 345 6/3/2009 546 435
5/19/2009 567 342 6/4/2009 453 397
5/20/2009 452 354 6/5/2009 456 198
5/21/2009 354 189 6/6/2009 453 231
5/22/2009 436 301 6/7/2009 523 303
5/23/2009 645 403 6/8/2009 435 352
5/24/2009 367 300 6/9/2009 543 342
5/25/2009 564 402 6/10/2009 435 241

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5/26/2009 453 275 6/11/2009 564 312

5/27/2009 543 305 6/12/2009 543 309
5/28/2009 453 436 6/13/2009 426 189
5/29/2009 435 254 6/14/2009 534 256
5/30/2009 546 345 6/15/2009 423 352
5/31/2009 389 203 6/16/2009 498 423
6/17/2009 456 352
AVERAGE NUMBER OF TICKET SIZE BASED ON MALE AND FEMALE:-
Considering the above chart it can be concluded that female visit more as compare to the male
counterpart and hence reliance fresh owner should consider about the female and should take
more care of female in the sphere of services,protection and product availibilty also.
AVERAGE NUMBER OF VISITOR BASED ON DIFFERENT AGE GROUP:-
if we consider the above chart it can be easily concluded that the people between the age
group 23-32 visit more and more in the reliance fresh store and hence store manager
should take care of this age group peoples so that they may captivate them by giving
various discount or facilities etc.
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.
STOREWISE REVENUE (All the figures are in lakhs)

lOMoARcPSD|22242096
39
SALES
Sr Store Store Area LMTD MTD MTD MTD LMTD

. code Name Achieve Targe Achieve Archive Vs MTD
No d t d d%
1 2118 SPG mart 4163 32.87 37.62 34.58 92 % 5%
2 2119 Trikuta hill 2234 8.66 9.55 8.84 93 % 2%
3 2120 Rathoid 2111 17.60 20.25 17.59 87 % 0%

C.R
4 2121 Vyas 2560 16.15 18.91 17.65 93 % 9%

Enclave
5 2122 L N 4832 29.09 32.67 32.83 100 % 13 %

Complex
6 2377 M R Tower 1935 6.65 7.72 6.81 88 % 2%
7 2445 Eyelex 2800 20.26 26.47 22.58 85 % 11 %

hinoo
8 2727 Prasad 5764 20.03 22.96 21.08 92 % 5%

Motors
9 2812 Booty 2440 15.22 17.56 16.60 95 % 9%

More
Result 28839 166.53 193.7 178.55 92 % 7%
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 May
2009 FTD takes into consideration. 31 st days of operation from 1 st may 2009 to 31 st may 2009.
FTD sale/sq ft is assigned to each individual store from the Mumbai based headquarters of
Reliance Retail
SALES / PER SQ FT. UPTO 31ST MAY 2009
Sr. No Storecode Store Name Area FTD LMTD MTD

lOMoARcPSD|22242096
40
1 2118 SPG mart 4163 41.2 25.5 26.8
2 2119 Trikuta hill 2234 17.5 12.8 12.8
3 2120 Rathoid C.R 2111 34.1 26.9 26.9
4 2121 Vyas Enclave 2560 32.7 20.4 22.2
5 2122 L N Complex 4832 32.5 19.4 21.9
6 2377 M R Tower 1935 11.3 11.1 11.4
7 2445 Eyelex hinoo 2800 40.3 23.3 26.0
8 2727 Prasad 5764 15.9 11.2 11.8

Motors
9 2812 Booty More 2440 24.0 20.1 21.9
Result 28839 28.0 18.6 20.0
So it can be seen that none of the nine operating. Reliance fresh stores in Ranchi have been
able to achieve their break-even point for the month of May 2009. Reliance Fresh stores are
on verge of completing almost 2yrs of their operation in Ranchi district but they are yet to
reach their breakeven point.
Out of the 47 Reliance fresh outlets in eastern region (including 9 from Ranchi) none have
yet reached their BEP.The Company assigns gross margin of operation to each individuals
stores based on their past performances of sales, inputs in current month, shrinkages and
dumping.
GROSS MARGIN UPTO 31 ST MAY 2009

lOMoARcPSD|22242096
41
Sr. No Store Store Name Area

code
FTD LMTD MTD
1 2118 SPG mart 4163 15.3 % 15.8 % 14.5 %
2 2119 Trikuta hill 2234 13.1 % 15.1 % 14.3 %
3 2120 Rathoid C.R 2111 8.9 % 14.7 % 6.8 %
4 2121 Vyas Enclave 2560 15.4 % 15.9 % 11.3 %
5 2122 L N Complex 4832 12.1 % 14.7 % 13.1 %
6 2377 M R Tower 1935 11.6 % 13.9 % 6.8 %
7 2445 Eyelex hinoo 2800 15.0 % 16.2 % 15.5 %
8 2727 Prasad Motors 5764 16.1 % 14.7 % 14.1 %
9 2812 Booty More 2440 16.4 % 14.5 % 12.9 %
Result 28839 14.0 % 14.7 % 14.1 %
It can be seen that except store no Trikuta Hill, L N Complex & Eyelex, none of these stores
have been able to give the assigned levels of gross margin.
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
, better surveillance etc. the shrinkage & dumping were restricted to the desired level in
almost of the stores.
MONTH TILL DATE (MTD) DATA UPTO 31 ST 2009
Sr. No Store Store Name Area Shrink% Dump%

code
1 2118 SPG mart 4163 1.0 1.4
2 2119 Trikuta hill 2234 2.1 4.0
3 2120 Rathoid C.R 2111 0.9 3.4

lOMoARcPSD|22242096
42
4 2121 Vyas Enclave 2560 2.5 2.5
5 2122 L N Complex 4832 1.4 1.0
6 2377 M R Tower 1935 2.5 3.7
7 2445 Eyelex hinoo 2800 1.3 3.0
8 2727 Prasad Motors 5764 2.1 1.6
9 2812 Booty More 2440 -0.5 2.5
Result 28839 1.4 2.2
Trikuta hill store, Vyas Enclave store, & M R Tower had above restricted limit shrinkage &
dumping. For Prasad motor store only % age & shrinkage was high.
Whereas
Whereas in Rathod
Rathod circular
circular road ,Eyelex hinoo & Booty more store only (%) age dumping
was high than the restricted limit.
Number of tickets means the total number purchases that were made during the entire month.

lOMoARcPSD|22242096
43
NUMBER OF TICKETS SIZE:-
Sr. No Store Store Name Area FTD MTD

code
1 2118 SPG mart 4163 576 15,238
2 2119 Trikuta hill 2234 309 7,925
3 2120 Rathoid C.R 2111 460 13,766
4 2121 Vyas Enclave 2560 573 14,892
5 2122 L N Complex 4832 634 17,074
6 2377 M R Tower 1935 237 8,301
7 2445 Eyelex hinoo 2800 532 12,817
8 2727 Prasad Motors 5764 537 14,570
9 2812 Booty More 2440 340 11,010
Result 28839 4189 115,593
It was observed that against the target on only 4189 purchase all the 9 Reliance Fresh stores
of Ranchi registered combinedly 115,593 purchases.
Sales / tickets (ticket size) FTD represents the value of sales per purchase that the stores
should make in order to reach the BEP margin.
Sales /ticket (MTD) represents the value of sales per purchase actually achieved by the store.
SALES PER TICKETS DATA UPTO 31 ST MAY 2009:-
Sr. No Store Store Name Area FTD MTD

code
1 2118 SPG mart 4163 298 227
2 2119 Trikuta hill 2234 126 112
3 2120 Rathod C.R 2111 156 128
4 2121 Vyas Enclave 2560 146 118
5 2122 L N Complex 4832 248 192
6 2377 M R Tower 1935 92 82
7 2445 Eyelex hinoo 2800 212 176
8 2727 Prasad Motors 5764 170 145
9 2812 Booty More 2440 172 151

lOMoARcPSD|22242096
44
Result 28839 192 154
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 Ranchi all
have completed their at least 1 – 2 years of existences but are yet t o achieve their BEP.
RECOMMENDATION
COMMUNICATION:
➢ Based on my ovservation I found that reliance fresh is not able to

make an advertisement properly as compare to big bazaar or other
retail
retail store
store which
which is its competit
competitor.
or. so compan
company
y should
should make a
proper team to let the people aware about their schemes and offers
being given by reliance fresh.
➢ Company should increase the number of counter so that it may
minimize the quie of the customers.
➢ Company should acquire more and more skilled people so that it
may satisfied their customer in all areas.
PROMTNESS IN SERVICES:
➢ Company should pay kind attention towards the existing customer

and try to provide them
them quick response in the sphere of services so
that they become BSNL’S loyal customers.
➢ Many corporate houses was there who were reluctant to use bsnl
lease line provided that someone assure them to have a promt
services from them.
SCHEMES:
➢ Main
Main comp
compet
etit
itor
or Airt
Airtel
el Tata
Tata and
and Relia
Relianc
nce
e come
comes s with
with vari
variou
ous
s
schemes and margins on the other hand Bsnl is not giving any sort
of scheme
scheme and discou
discount
nt that
that is why many clients
clients were inclined
inclined
toward using the lease line offered by other players..

lOMoARcPSD|22242096
45
After all business is all about profit and retailer wants some profit
and margins.
BEHAVIOR AND COMMITMENT:
Behavior and commitments of sales man towards the dry outlets should be improved.
CONCLUSION
It was a pleasant experience to have a summer project in a big company

like BSNL. It has given me an opportunity to know all dimensions of the
market and how to tackle problems
problems of it .I have learned various functions
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.
I was supposed to do project in Delhi where BSNL is playing major role in

the field of telecommu
telecommunicati
nication
on having
having a market share of approximately
approximately
73% .Other
.Other players are Airtel
Airtel Reliance
Reliance and Tata.india
Tata.india has a large market
size and it is increasing day by day.
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. Main rival Airtel is trying
to capture
capture more market
market share with
with their new ideas
ideas and plan.
plan. As BSNL is

lOMoARcPSD|22242096
46
concer
concernn the compan
company y should
should become
become lib liberal
eral on his polici
policies.
es. Compan
Companyy
should
should give
give the clients
clients more facilit
facilities
ies so that they
they may became
became new
clients and may continue through it. The company also needs a proper
marketi
marketing
ng wing
wing to operat
operate
e well in this
this areas
areas and accompl
accomplish
ish the goal
goal
,mission and vision of the company.

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lOMoARcPSD|22242096

Project report (Maharaja Surajmal Institute of Technology)

Studocu is not sponsored or endorsed by any college or university

SUMMER PROJECT/INTERNSHIP REPORT

Submitted in partial fulfillment of the Post Graduate Diploma in Management (Marketing) at

Mr. /Ms. ANJANI JHA

Roll No. 40 Session 2008-10

Under the guidance of:

Prof. PINAKI GHOSH

Xavier Institute of Social Service, Purulia Road, P.O.Box 7

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Shankar Singh in partial fulfillment of the requirement

in Marketing Management at Xavier Institute of Social Service (XISS), Ranchi.

Prof. Prof. Pinaki Ghosh

Prof. A.R.Bodra Dr.Fr. B.A.Ekka, s.j.

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This is to certify that Mr.j

Prof. PINAKI GHOSH

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First of all I wish to express my profound

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• WHAT DOES THE RETAILING INDUSTRY INCLUDE?

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• THE IMPORTANCE OF RETAILING

• RETAIL STRATEGY AND STRUCTURE

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MARGIN TURNOVER MODEL

LOW MARGIN HIGH TURNOVER STORES

HIGH MARGIN LOW TURNOVER

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HIGH MARGIN HIGH TURNOVER STORES

LOW MARGIN-LOW TURNOVER STORES

RETAILING FORMATS (CLASSIFYING RETAIL FIRMS)

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run by independents, including barber shops, drycleaners, furniture stores, bookshops,

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Store Strategy Mix

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Non Store Retailing

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THE WHEEL OF RETAILING

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effort at creating the right ambience. Merchandise display is equally important. An

EMERGING TRENDS IN RETAILING

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BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED

Mukesh D. Ambani Chairman &

APKA FRESH APKA PADAOS ME

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Reliance Fresh will…

RELIANCE FRESH IN RANCHI

In Ranchi there are 9 outlets of Reliance Fresh:

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These Are the Problems We Found In Reliance Fresh in Ranchi:–

– Ranchi is a cultural oriented city

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- It is the organizational study

- identify the reliance marketing strategy in Ranchi