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					    RELIANCE RETAIL
                      Presented By :
                      BALAJEE S A045
                      NISHANT CHOTALIA A015
                      NIMISHA RATHI A044
                      JEEVA MARIA JOY A028
                      AAKASH KHOLIA A032
                      ABHISHEK SHRIVASTAVA A053

GROUP
                                        History
 Reliance Retail a unit of Reliance Industries, started its operations in 2006 with Reliance Fresh,
                                            grocery store

  Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organization that caters to
                           millions of customers, thousands of farmers and vendors

  Reliance Retail, currently operates around 1,000 stores in the country across value retail, or food and
                                 groceries segment, and specialty formats

The company has an aggressive plan to expand its retail network across India. It is buying real estate in
20 towns and cities to build big-box hypermarkets, moving beyond its earlier model of leased properties
                                           and small formats

 The company has entered into exclusive agreements with textile companies such as Arvind Mills etc. to
                           develop exclusive brands for its retrial outlets


                     Rob Cissell, CEO of Reliance Retail, comes from Walmart China


                  Plan to make Reliance Retail a Rs 40,000-50,000 crore powerhouse
Reliance Retail Formats
           Differentiation in Formats
                Reliance Fresh        Reliance Digital   Reliance Mart       Reliance Mini    Reliance Trendz
                                                                             mart
Vertical        Food and              Specialty –        Hypermarket         Supermarket      Specialty-Apparel
                Grocery               Consumer
                                      durables
Product         Fresh fruits,         Electronic         Food and grocery,   Food and         Apparels and
Offering        vegetables            goods and          apparel, consumer   grocery,         accessories
                and dairy             household          durables,           apparel,
                products              appliances         footwear            footwear

Area (sq. ft)   3,000–5,000           15,000 –           50,000 –2,50,000    10,000 –50,000   30,000
                                      30,000
                Reliance Wellness     Reliance Home      Reliance            Reliance
                                                         Footprint           Jewels
Vertical        Specialty wellness    Specialty –Home    Specialty -         Specialty –
                products                                 Footwear            Jewellery
Product         Pharmaceuticals and   Furniture and      Footwear            Jewellery
offering        medical services      furnishings
Area (sq.ft.)   1,500–3,500           40,000 –60,000     8,000 –10,000       2,000 –20,000
                     Reliance Retail Figures

25% increase in consolidated revenues in 2011-12

Reliance Fresh – loss of Rs 273.8 crore on a revenue of Rs 3,860.4 crore

Reliance Digital Retail posted a loss of Rs 55.1 crore on a revenue of Rs 1,234 crore

Reliance Brands, which has agreements with global brands such as Diesel, posted a loss of Rs
18.7 crore on a turnover of Rs 30.9 crore
Reliance Trends, which runs fashion stores, incurred a loss of Rs 11.35 crore on a turnover of
Rs 489 crore
Reliance Gems & Jewels posted a profit after tax of Rs 0.84 crore on a revenue of Rs 475.5
crore. Reliance Footprint made a loss of Rs 0.6 crore on a revenue of Rs 155.4 crore

Reliance Footprint made a loss of Rs 0.6 crore on a revenue of Rs 155.4 crore

Similar Trends seen with in other big organised retailers
       Value Chain Analysis
                           Shelf Centered Collaboration




Manufacturers and retailers can finally put right product on right shelf at right time
                                for right customer
Value Chain Analysis
Location
•Located on S V Road, Santacruz
•Entrance on a side road convenient for
parking and entry
•Near Milan Subway Signal
• Far from conventional station markets
•Easy access from Express Highway
•Residential localities nearby


Layout
•Basement : Groceries, fresh food, Veg and Non Veg, Bakery Products, dry fruits, etc.
•Ground level : FMCG products including packaged food, personal care, beverages, etc.
Also awine and beer store
•First floor : Sports goods and garments – kids section with games, soft toys etc.,
Garments of male female, shoes , etc.—Stationery items
•Second floor – Electronics -Croma like setup for display- –Furniture – Home accessories
- with modular models, high end furniture, etc
Traffic
• Traffic is high on weekends
– Sat and Sunday.
• More so on the 1st 2
weekends of the month
• Traffic very high in
basement and ground level –
due to commodity products


Ambience
• Music is played throughout the store
• Mostly popular Bollywood
• Also used for announcements of various
offers periodically
• Colors mostly used are bright ones – blue,
red & yellow – matching the scheme of RIL
logo
Price & Promotion

                     Savings mentioned for the concerned products
          •Promotions are usually in bulk
  Motto         •E.g. ‘Buy 2 get X amount off ‘ or ‘buy 2 get one free’……..
          •Mostly for slow moving SKU
          •No promotions seen for fast moving items like cold drinks, regular
          cereal, biscuits etc…
          •Festive offers – Diwali discounts available
          •When one enters a flyer stating all the good deals is given
Loyalty Program



        •They have a loyalty card given to all customers in
        which all transactions are recorded and points
        accumulated
        •Sales people dedicated to enroll new customers
        •Also a prepaid loyalty card available – to bind
        customers to the store which can be used in all Reliance
        Retail outlets
Merchandise
 • Wide range of merchandise
 stocked
 • All SKU of each product available
 in most categories
 • Variants too are high
 • Very good choice
 • Display appears exhaustive for
 many products



Service Levels
•More of a self help kind of store
• However special assistance for few prodcts like Cadbury Sweets, Soul Pickles, iChing
products were seen
• Proactive assistance for beauty product lines like Olay, Revlon were seen
• The 1st and the 2nd floor are more spacious -High involvement items stocked
• Also more salesmen available for help
CRM at Reliance Mart
  Customer          Customer
   Loyalty          Retention

             CRM

  Customer          Customer
Communication      Gratification
                Customer Loyalty
                           Willing customers are     On each purchase of
  Special membership       required to fill a form   Rs. 100 the customer
loyalty program called        giving personal        gets one redeemable
    ‘Reliance One’        information and gets a             point
                              temporary card

                                                     Collected points can be
                                                      redeemed in form of
                                                       discounts on future
                                                            purchase

Customers also get the      Eg: customer can get         Other form of
opportunity of availing        accident death            insurances are
four different kinds of   insurance of Rs. 6 lakhs          disability,
 insurance on payment      on the payment of Rs.       hospitalization and
    of a nominal fee              400 only              home insurances
             Customer Retention
                          Retention policy is implemented at zonal level


Each state is regarded as a zone and offers and discounts available in one zone are not available
                     in any other zone, this will help in capturing local markets

 Products which show improvement due to offers on them are repeated again so as to retain sales
                              of customers who bought last time


                               Maintaining a good store ambience


Clean and hygienic environment with properly and well spaced products along with a uniform color
                     theme attracts the existing customers to the store again


                                       Fast billing system


 Good and easy grievance handling system which can be accessed through customer service desk
                                   and company website
Customer Gratification
    Trained salespersons make customer gratification very easy


      A simple thank you with a smile goes a long way for the
                 store to keep the customers happy

    Special events organized by stores across India are also a
    way to gratify the customers by allowing them to play and
                            win prizes
    Gift vouchers and discount coupons are an attraction for the
    customers and give them the feel that the store cares about
                      them and their money
                    Communication
Communication to existing customers takes the form of SMS and e-mails, generally sent to
                                 reliance one members



Information about ongoing offers and latest news about the nearest stores and company in
                                        general



  Another source of customer database is the information collected during the organizing
                              of special events in the stores



Thank you and festive cards on special occasions are innovative way of communicating with
                                      the customers
                  Exclusive Services

                                                                        The Reliance ResQ
   Offers unique                               In-house mill to grind    customer support
    services like       It has a bakery that        wheat which           center provides
   tailoring, shoe      offers freshly baked     customers can pick          after-sales
repair, watch repair,     breads and other      out themselves and        installation and
a photo shop, gifting     products and also    also gives the option        servicing for
services and laundry    an ice-cream parlor         of picking up             electronic
       services                                 readymade batter        appliances as well
                                                                        as other durables,
                                                                         365 days a year
               IRS Calculation
               • Population of Santacruz/Khar= 5,80,835 (Source:2001 Census)
               • Current population of Santacruz/Khar = 6,09,877 (4.7 % increase as per
Customers:       census data)
               • No. of Households(H) =6,09,877/4 = 1,52,469 (Assumption: 4 members per
                 household)


               • Annual per household Expenditure of Santacruz/Khar = Rs. 2,10,000
               • Annual Retail Expenditure per household (RE) = 0.25 * 2,10,000 = Rs.
Expenditure:     52,500 (Assumption: 25% is retail expenditure)
               • RE per week = Rs. 52,500/52 = Rs. 1009




               • Total square footage of that particular line of trade in that area including
   Area:         Relaince Mart (RF) = 1,33,066sq.ft (12,000 sq.m)




           IRS = H * RE/RF = Rs. 1156 sales/sq foot
      Competitor Analysis
           Reliance Mart v/s Big Bazaar

   Reliance is a one stop      Big Bazaar is well
    shop for everything          known for cheaper
    that the customer            deals on groceries and
    requires                     commodities
   A hyper mart with           More of a discount
    discounts and                store – attracting
    promotions as an add         customers specially on
    on – more of bulk            ‘Sasta Budhvaar’
    promotions
Competitor Analysis (contd.)
 Shopping                  Merchandise                   Location
Experience
                                Reliance Mart

 Much better at Reliance
 Mart – more spacious,          A wide variety of
    includes different        merchandise stocked –      High Street Location –
      categories like         all variants, SKUs, etc.         S V Road
  electronics, garments,
    house wares, etc.

                                  Big Bazaar
                                                           Location near Milan
  Not that great – only      Mostly fast moving SKUs      Subway – high traffic
     groceries and                   stocked                  area, flyover
 commodities available                                    construction going on
                                                         from considerable time
Competitor Analysis(contd.)

Facilities                 Ambience                   Cross Selling

                              Reliance Mart

                              Better ambience –
  Ample Parking space       music, with promotional      Different offerings are
    available in the          offers announced            cross sold – loans for
    adjacent lanes                                      furniture and other high
                             Ready to eat food &            investment goods
                                    bakery

                                Big Bazaar

 Lack of parking space –      No such ambience           No such cross selling
   paid parking in the            observed                    observed
 basement of Milan Mall
          What’s Going Wrong
   Basement is congested as compared to ground floor
   Aisle space is very less and queues from counters extend
    all the way
   Practice of express checkout counters not followed strictly
   Section of spices is highly unorganized with many products
    with open/torn packaging
   Only electronics gets billed at the Reliance Digital floor
    though many other items are there
   Home delivery option is for very less radius(1km) which
    other kiranas also offer
New Store Location(Coimbatore)
Demographics
 • 15th largest urban agglomeration in India with a metropolitan population of
   over 2 million
Consumer Lifestyle
 • Target consumers in the city are mainly young professionals. It revenues in state
   is increasing at a rate of 90%
Income Potential
 • Hub of manufacturing and textile industries
 • Annual household income is Rs. 2,42,200
 • Coimbatore is the highest revenue earning district in Tamil Nadu
Population mix
 • The population consists mainly of professionals and labor class. City has many
   offices and manufacturing hubs
 New Store Location(Coimbatore)
               • Population of Coimbatore = 21,51,466(Source:2011 Census)
               • Population of TG = 2151466/3 = 7,17,155
Customers:     • No. of Households(H) = 717155/4 = 1,79,289 (Assumption: 4 members per
                 household)


               • Annual per household income = 2,42,200
               • Annual per household Expenditure of Coimbatore= Rs. 1,45,320 (60% of income)
Expenditure:   • Annual Retail Expenditure per household (RE) = 0.25 * 1,45,320 = Rs. 36,330
                 (Assumption: 25% is retail expenditure)
               • RE per week = Rs. 36330/52 = Rs. 698



               • Total square footage of that particular line of trade in that area (RF) =
   Area:         1,08,900sq.ft (10,000 sq.m)



           IRS = H * RE/RF = Rs. 1149 sales/sq foot

				
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