January 30

Reliance Fresh

2012
SDM
SUBMITTED BY: AYUSH KHURANA 10020541072 MARKETING & FINANACE

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INTRODUCTION

Reliance Fresh is the convenience store format which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in excess of Rs 25000 crores in the next 4 years in their retail division. The company already has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products. A distinctive Reliance Fresh outlet is around 3000 to 4000 sq. feet and accommodates catchment area of one to three Kilometres.

History of Reliance Fresh

The Reliance Retail had to face various difficulties before the launch of Reliance fresh, because of the various circumstances prevailing in Orissa, West Bengal and UP, along with the news focusing on the dearth of vegetables and fruits stocks. The retail business of Reliance then minimized its exposure in vegetable and fruit business, as a result established Reliance fresh positioning a pure super market play focusing on various categories like IT, consumer durables, home, FMCG and food. The retail company of Reliance may not supply the vegetables and fruits in a few states, the Reliance Fresh decided to not to race with local wholesalers partly because of the political reasons as well as its incapability to maintain a healthy supply chain.

Growth of Reliance Fresh

The first ever a Reliance Fresh store was established in Hyderabad, wherein the company, mainly focused on the fresh produced vegetables and fruits at comparatively low price along with an introduction of farm to fork theory. This was the idea, which was anticipated by the company was to take the supply direct from the farmers and then sell straightaway to the consumers removing the middle-men off the beaten track. Reliance introduced several formats in the marketplace to cater to needs of common people, which includes Reliance Fresh, Reliance Super, Reliance Footprint, Reliance Timeout, Reliance Jewels, Reliance wellness, Reliance Mart and Reliance Digital, to name a few. In addition to this, the Reliance Retail also entered into a treaty with Apple, which is a leading Information Technology company, to set up a series of Apple Specialty Outlets branded as IStore, with its first ever store in Bangalore.

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With an idea to produce inclusive prosperity and growth for farmers, consumers, small shopkeepers and vendor partners, Reliance Retail was set up in order to lead the foray of Reliance Group into an organized retail.

Elements of Retail Marketing Mix

y Product: Reliance Fresh is mainly into catering all grocery needs of the consumer. It sells fresh fruits, staples, dairy products, fresh juice bars, groceries and vegetables. Though in some states due to some political reasons Reliance Fresh may not supply the vegetables and fruits. Price: Reliance fresh offers competitive prices which are often lesser than the local vendor. To top that, they have discount schemes such as discounts on fruits and vegetables on every Wednesday and discount on other items on weekends. At times they come with other promotional discounts to attract more customers. Place: Location & Structure of the store Location: Should be close to residential colonies to compete with the local stores. There are around 6 stores in Pune itself at places like Pashan, Kothrud, Aundh etc. Structure: Should appear to be fairly crowded from outside to attract more customers based on the perception that goods must be available at cheaper or discounted rate.

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RELIANCE FRESH PROMOTION STRATEGIES

y The main idea behind every marketing strategy is to make bulk purchases.

Marketing strategy can be divided into:1. Advertising:-Advertising of reliance fresh is done with the help of :y Print or broadcast ads:-with the help local or national newspapers. y Outer packaging:-the outer packing material contains the name and logo of reliance fresh y Catalogue :-Distribution of catalogue with the help of news papers ,magazines and the customers present in the store y Directories:-Advertisements in yellow pages , TATA telephone directories,and just dial. y Billboards:-billboards outside the store and and at the posh locations in cities y Audio materials:-offers and different informatory tapes played inside the store y Bike campaigns

2. Sales promotions:-A variety of short term incentives are provided to encourage the sales of the product or service which are as follows:y Premium and gifts:-premium form of bill busters on the purchase of a fixed amount every week y Sampling:-distribution of samples of test merchandise in the store and with certain products y Discounts :-discounts on the MRP of certain products y Offers:- BOGO,BXGY

3. Events and experiences:-reliance fresh sponsors activities and programs to create daily or special brand related interactions. y Social event:- tie up with ALLOUT to make people aware about diseases like dengue , malaria, chikangunia . Tie up with Colgate for their Oral Health month having mission zero decay y Store tour:-store tour of the students of near by play school in order to make learning process of students easy with fun and practical exposure 4. Public relation and publicity: a variety of programs designed to promote or protect a company s image or its individual product, charitable donations, Seminars and camp.

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y y

Camp:- Free pollution checkup camp on earth day. Publications:- Reliance publishes a magazine known as Money Life which provides details regarding the investment and market status.

6. Direct Marketing: use of mail, telephone, fax, e-mail, or internet to communicate directly with or solicit response or dialogue from specific customers and prospects. This platform is used to inform the Reliance one members (a loyalty programme) through e-mails, Telephones and SMS. Through this the information regarding the latest offers, events are conveyed to customers

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Reliance Fresh Process

 Reliance Fresh get their stock of vegetables and fruits from the nearby farmers from Pune and also from areas such as Junnar, Narayangaon, Nashik, Ahmednagar which are known for cultivating fresh vegetables.  This stock is supplied to their distribution centre. The distribution centre sends this stock to its retail outlets located in the city. This stock is sent to the required outlet early in morning around 7am. Once the stock reaches the respective outlets, the staffs of that outlet sorts the vegetables and fruits in a proper manner and sets them on the shelves of display. Once entire arrangement is done, the outlet opens at 8am for the customers so that they can purchase the fresh vegetables and fruits.  The stock of vegetables and fruits is received on daily basis from the distribution centre. Once the vegetables and fruits start loosing their freshness or loose its quality they reduce the prices of those vegetables and fruits. Such items are displayed on different shelves with a display board stating vegetables and fruits at discounted prices. If still those stocks are not sold they dump those items making a note of those items and the quantity being dumped.  It also sells different products of daily household requirements other than vegetables and fruits. The stock of such items is also received from the distribution centre. The products which are out of stock are been made by informing about it to the distribution centre and they supply the stock as early as possible.  The arrangement of these products on the shelves is been decided by the planners in the distribution centre. The arrangement of these products is done with the help of Plano gram. There is a unique coding system which helps in arranging the products in order as to which product will be displayed first. They also offer promotion of various products which is basically displayed in different place so that the customers can directly spot it.  The inventory management is done on a weekly basis by the staff working in the retail outlet whereas there is inspection done on monthly basis by an Auditor about the inventory and the functioning of the process as well the looks of the store.

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Consumer Complaints and Recommendations

1. Only fresh vegetables Stale vegetables are sold at some offer but such people normally do not visit shop and that physiologically effects buying decision of customer. Better sell them at low cost in secondary market 2. Turn steps to slope at entry gate Old people find it difficult climb the steps which are high compared to normal and it is difficult to get down with lots of baggage after shopping. They can turn them to slope similar to Big Bazar. 3. No expired items Expired items are sold at offers Not Ethical, illiterate people may fall pray. 4. Need to reduce prices Rates are almost par with subji mandi making it not attractive when food bazaar offers at better price. 5. Space constraint Space need to be provided according to items displayed. 6. Increase billing counters Increase counters to avoid long ques. 7. Open early morning at 6am To take into account the people who buy vegetables and milk products while out on the street for morning walk, which is normally more in number. 8. Take support of local heads, politicians and Govt Opening of shop is being opposed by local kiran shops and middlemen, so to solve take the support of local heads, politicians and govt .

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9. Combine reliance fresh with reliance mart where ever possible to match with BIG Bazar This makes them one stop shop, which indirectly attracts more people than otherwise and helps in promoting and compete with existing players 10. Home delivery range need to be increased Currently they deliver within range of 1 km; such people normally visit the shop themselves. So Increase the range as people far away prefer such facility and increases the sales drastically. 11. Standardise process Many complaints are received related to employees handling customer problems, which is different in different outlets so need to standardise the process.

12. Encourage staff with performance bonus No business without customers, as this is service based industry which includes more of human touch , employees behaviour with customer is of extremely important so one way to boost their service is by providing bonus based on performance. 13. Coming up with retail branded quality products, which drags the customer to outlet just for that special item hence purchases other products along with it.

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