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INTRODUCTION TO THE PROJECT

Traditionally retailing in India can be traced to the emergence of the neighborhood

Kirana stores catering to the convenience of the consumers Era of government

support for rural retail: Indigenous franchise model of store chains run by Khadi &

Village Industries Commission1980s experienced slow change as India began to open

up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S

Kumar's and Grasim first saw the emergence of retail chains

LaterTitan successfully created an organized retailing concept and established a series of

showrooms for its premium watches For e.g. Food World, Subhiksha and Nilgiris in food

and FMCG; Planet M and Music World in music; Crossword and Fountainhead in

books.Post 1995 onwards saw an emergence of shopping centers,mainly in urban areas,

with facilities like car parking targeted to provide a complete destination experience for

all segments of society Emergence of hyper and super markets trying to provide

customer with 3 Vs - Value, Variety and Volume

Expanding target consumer segment: The Sachet revolution - example of reaching to the

bottom of the pyramid. At year end of 2000 the size of the Indian organized retail

industry is estimated at Rs. 13,000 crore .

WHAT IS RETAIL?

Retail means that the seller is not the manufacturer of the goods they sell, and that

they sell their goods directly to the public.

Retailers usually buy their goods from a distributor, who normally does not sell

their goods to the public. Because they usually require sales in bulk.

Retailing consists of the sale of goods or merchandise, from a fixed location such as a

department store or kiosk, in small or individual lots for direct consumption by the

purchaser. Retailing may include subordinated services, such as delivery. Purchasers may

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be individuals or businesses. In commerce, a retailer buys goods or products in large

quantities from manufacturers or importers, either directly or through a wholesaler, and

then sells smaller quantities to the end-user. Retail establishments are often called shops

or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the

process of retailing as a necessary part of their overall distribution strategy.

Shops may be on residential areas, shopping streets with few or no houses, or in a

shopping center or mall, but are mostly found in the central business district. Shopping

streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof

to protect customers from precipitation. Retailers often provided boardwalks in front of

their stores to protect customers from the mud. Online retailing, also known as e-

commerce is the latest form of non-shop retailing

RETAIL INDUSTRIES

Retail industry has brought in phenomenal change in the whole process of production,

distribution and consumption of consumer goods all over the world In the present world

most of the developed economies are using the retail industry as their vital growth

instrument. At present, among all the industries of U.S.A. the retail industry holds the

second place in terms of employment generation. In fact, the strength of the retail

industry lies in its ability to generate large volume of employment

Not only U.S. but also the other developed countries like the UK, Canada, France,

Germany & Australia are experiencing tremendous growth in their retail sector et

Shoppers Drug Mart The Hudson's Bay Company and Sleep Country Canada This boom

in the global retail industry was in many ways accelerated by the liberalization of the

retail sector.

Observing this global upward trend of retail industry, now the developing countries like

India are also planning to tap the enormous potential of the retail sector. Wal-Mart, the

world's largest retailer, is interested in opening shops in India. Other popular brands like

Pantaloons, Big Bazar (India), and Archies (U.S.) are rapidly increasing their market

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share in the retail sector. According to a survey within five years, the Indian retail

industry is expected to generate 10 to 15 million jobs by direct and indirect effects. This

huge employment generation can be possible because being dependent on the retail sector

shares a lot of forward and backward linkages.

Emergence of a strong retail sector can contribute immensely to the economic

development of any country. With a dominant retail sector, the farmers and other

suppliers can sell their products directly to the major retail companies and can ensure

stable profit. On the other hand, to ensure steady supply of goods, the retail companies

can inject cash into the production system. This whole process can result into a more

efficient production and distribution system for the economy as a whole

GROWTH OF RETAIL COMPANIES IN INDIA

Growth of Retail Companies in India is still not yet in a matured stage with great

potentials within this sector still to be explored. Apart from the retail company like

Nilgiri's of Bangalore, most of the retail companies are sections of other industries that

have stepped in the retail sector for a better business. The Growth of Retail Companies in

India is most pronounced in the metro cities of India, however the smaller towns are also

not lagging behind in this. The retail companies are not only targeting the four metros in

India but also is considering the second graded upcoming cities like Ahmadabad, Baroda,

Chandigarh, Coimbatore, Cochin, Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and

others. The South Indian zone have adopted the process of shopping in the

supermarkets for their daily requirements and this has also been influencing other cities

as well where many hypermarkets are coming up day to day.

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CHALLENGES IN FRONT OF RETAIL INDUSTRY

Retail today is all about being better, faster, and leaner. Columbus IT helps you

overcome the challenges of the retail industry and write your ticket to success. -- Dmitry

Davydov, Key Retail Acount Manager, Columbus IT Russia.

The retail industry faces challenges similar to those in other industries. What's different is

that they combine together to put a great deal of pressure on retailers in today's modern

economy. With a fast-paced society and faster-paced technological changes, customers

want new, different, and customized goods now, and they're not willing to wait. At the

same time, pressures on the backend are mounting, too. Larger retailers, with their

efficiencies of scale and international scope, are pushing prices down and slashingmargins. To compete, you have to think like a Wal-Mart, even if you are a medium-sized

retailer. Technology offers your company a way to apply modern ERP and CRM

techniques on a global scale, whether through bricks-and-mortar stores, or over the

Internet.

Decentralized Operations

As a manager, ideally you'd like to be able to walk down the hall from your office and

into any one of your stores or warehouses. In reality, that's not possible. You have to hire

the right people, staff your other locations, and rely on them to do the job

right.Technology has the advantage of being able to bring you and your employees

together whether they're located in Minsk or Montana. Columbus IT retail solutions

provide you with a centralized solution for your decentralized business.Data flows from

your stores and warehouses to your head office every night, so you have up-to-date sales

and inventory information.

Staff Turnover

There's a higher rate of staff turnover in the retail industry, compared to other

industries. This varies by country. European countries, for example, tend to retain

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store-level personnel more successful.The amount of information available to you as

a retailer can be overwhelming. Each one of your stores' profits are influenced by

daily sales, overhead, employees, shipping, campaigns, and traffic that change on a

daily basis.

Future Uncertainty

The customer is fickle. Global market situations can also change the demand for your

products. And unexpected problems at your warehouse or stores can also affect what you

need to supply - and who may be buying it.Retail is built on uncertainty - but victory goes

to the business who knows how to manage that uncertainty and make allowances for

it.You need to be able to learn from the past so that you can plan for the future. Columbus

IT Retail solutions provides you with sophisticated reporting and data mining about every

aspect of your retail operation so you can make sensible choices about where your

customers, suppliers, and your business are going. Retail Chain Manager enables you to

gather and analyze your past sales information so you can make the right decisions about

what products to carry, where to sell them, and what price they should be. Columbus IT

Retail solutions give you that power.

Complex Pricing

It's no longer enough to be able to stamp a product's price and forget about it. Modern

retailers are changing prices on goods daily, if not hourly. The benefit of flexible pricing

is to be able to respond to changes in the market as they happen. Want to set a higher

price for rush-hour customers and a lower price for off-hour ones? Or maybe you'd like to

be able to run a test on a new campaign for one day and see how it compares to the sales

results from the previous day. Columbus IT Retail solutions make it happen.

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ABOUT RETAIL STORES:

Retail Store is a place of business for retailing goods which includes following:

Mercantile establishment outlet sales outlet

Country store general store trading post - a retail store serving a sparsely

populated region; usually stocked with a wide variety of merchandise

Department store emporium - a large retail store organized into departments

offering a variety of merchandise; commonly part of a retail chain

Discount house discount store discounter wholesale house - a sales outlet offering

goods at a discounted price

Market placemat marketplace marketing area in a town where a public mercantile

establishment is set up

Merchandise product ware- commodities offered for sale; "good business depends

on having good merchandise"; "that store offers a variety of products"

Business establishment place of business - an establishment (a factory or an

assembly plant or retail store or warehouse etc.) where business is conducted,

goods are made or stored or processed or where services are rendered

Shopping center shopping centre shopping mall plaza center- mercantile

establishment consisting of a carefully landscaped complex of shops representing

leading merchandisers; usually includes restaurants and a convenient parking

area; a modern version of the traditional marketplace; "a good plaza should have a

movie house"; "they spent their weekends at the local malls

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FORMATS OF RETAIL

Malls:

The largest form of organized retailing today. Located mainly in metro cities, in

proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above.

They lend an ideal shopping experience with an amalgamation of product, service and

entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd,

Pantaloon.

Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer

Crossword, RPG's Music World and the Times Group's music chain Planet M, are

focusing on specific market segments and have established themselves strongly in

their sectors.

Discount Stores:

As the name suggests, discount stores or factory outlets, offer discounts on the

MRP through selling in bulk reaching economies of scale or excess stock left over at

the season. The product category can range from a variety of perishable/ non

perishable goods

Department Stores:

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer

needs. Further classified into localized departments such as appral, toys, home,

groceries, etc.

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Hypermarts/Supermarkets:

Large self service outlets, catering to varied shopper needs are termed as

Supermarkets. These are located in or near residential high streets. These stores today

contribute to 30% of all food & grocery organized retail sales. Super Markets can

further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and

large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus

on food & grocery and personal sales.

Convenience Stores:

These are relatively small stores 400-2,000 sq. feet located near residential areas.

They stock a limited range of high-turnover convenience products and are usually

open for extended periods during the day, seven days a week. Prices are slightly

higher due to the convenience premium.

MBOs :

Multi Brand outlets, also known as Category Killers, offer several brands across a

single product category. These usually do well in busy market places and Metros

RETAILING IN RELIANCE FRESH

With a vision to generate inclusive growth and prosperity for farmers, vendor partners,

small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL,

was set up to lead Reliance Groups foray into organized retail.

With a 27% share of world GDP, retail is a significant contributor to overall economic

activity across the world. Of this, organized retailing contributes between 20% to 55% in

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various developing markets. The Indian retail industry is pegged at $ 300 billion and

growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is

expected to grow to 10% by 2011. RRL has embarked upon an implementation plan to

build state-of-the-art retail infrastructure in India, which includes a multi-format store

strategy of opening neighborhood convenience stores, hypermarkets, specialty and

wholesale stores across India.

RRL launched its first store in November 2006 through its convenience store format

Reliance Fresh. Since then RRL has rapidly grown to operate 590 stores across 13

states at the end of FY 2007-08. RRL launched its first Reliance Digital store in April

2007 and its first and Indias largest hypermarket Reliance Mart in Ahmedabad in

August 2007. This year, RRL has also launched its first few specialty stores for apparel(Reliance Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels), books,

music and other lifestyle products (Reliance Timeout), auto accessories and service

format (Reliance Autozone) and also an initiative in the health and wellness business

through Reliance Wellness. In each of these store formats, RRL is offering a unique set

of products and services at a value price point that has not been available so far to the

Indian consumer. Overall, RRL is well positioned to rapidly expand its existing network

of 590 stores which operate in 57 cities.

During the year, RRL also focused on building strong relationships in the agri-business

value chain and has commenced marketing fruits, vegetables and staples that the

company sources directly to wholesalers and institutional customers. RRL provides its

customers with high quality produce that has better shelf life and more consistent quality

than was available earlier. RRL has made significant progress in establishing state-of-the-

art staples processing centres and expects to make them operational by May 2008.

Recognizing that strategic alliances are going to be a key driver to its retail business, in

FY 2007-08, RRL established key joint ventures with international partners in apparel,

optical and office products businesses. Further, RRL will continue to seek synergistic

opportunities with other international players as well. This year, RRL will continue its

focus on rapid expansion of the existing and other new formats across India. In addition,

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Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple

Specialty Stores branded as iStore, starting with Bangalore.

Various Formats of Reliance Retail

Reliance Fresh

Reliance Mart

Reliance Footwear

Reliance Appral

Reliance Express

Reliance wellness

Reliance Digital

Reliance Trendz

Reliance Timeout

Reliance Jewels

Reliance Footprint

Reliance Wellness

Reliance Super

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Management of Reliance Fresh

Hierarchy Of Positions In Reliance Fresh At Store Level

Store manager

SupervisorCommercial and

accounts

Assistant

commercial and

accounts

Cashier

Champion

Customer care

associate

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Store Manager:

Function of store manager is to check whether employees are working properly.

To execute various discount schemes he is the most important person in the store.

Store manager also gives rating to employees working under him according to their

performance. He can also give inputs to higher authority about various trends and

changes in customer tastes and preference.

Supervisor:

Supervisor manage champion who is expert in either fruit and vegetable or dairyproducts or any other. He also take notice of the stock with store manager.

Commercial and Accounts:

He keeps records of all the transactions in the reliance fresh. All the proofs of

bills, receipts are given to him and he manages the accounts and manage all cash flow

Assistant Commercial and Accounts:

He help the senior commercial and accounts for keeping accounts and also take

inputs from cashier whose function is billing.

Customer Care Associate:

It is lowest in hierarchy. They keep notice of thefts and management of their bay

assigned to them he make customer aware of schemes

Retail Outlay of Reliance Fresh :

2000 - 4000 sq. ft pilot stores selling primarily fresh

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food and grocery items

Targeted at all income groups

Differentiation

Full range, consistent availability of high qualityFruits & Vegetables

State-of-the-art retail infrastructure and supply

Chain.

Thoughts of ordinary man on Reliance Fresh

Today, Indians living in class I or II cities can hope to get the world class treatment in

household shopping, thanks to some of the initiatives like Reliance Fresh. Reliance Freshis a new chain of small marts by the Reliance group of industries from where people can

easily buy all the good quality items of daily use in houses. Already similar kind of the

stores are available in the market with names like Subhiksha. The major advantage of

these stores is that people can easily hope of buying all the household products even

including fresh vegetable and fruits from the same place. Therefore, now there is no need

for moving from one place to other in the search of different things. At present, Indian

economy is moving at a fast speed and we are becoming a country where time has lot of

value. Therefore, these stores from players like Reliance offer a great saving of time for

the people. Reliance Fresh stores presently have slight edge over the competitors in

design and display; it is more wonderful experience to buy goods from the Reliance

stores than the other competitors. Moreover, even buying vegetables and fruits is world

class experience in the Reliance Fresh stores. Reliance Fresh and similar stores could be

the start of new beginning in India and already many people have started turning up to

these places in huge numbers. At present ventures of both Reliance Fresh and Subhikhsa

are successful in haryana and people here look ready to buy this concept of shopping

under single roof.

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Motivation of employees in reliance fresh

There are lots of things done for motivation of employees in reliance fresh

Star of the month contest is done for employees working in a store. marks

are given by store manager to employees on their performance regarding

regularity ,politeness with customers, proper management of bay assign to

them and others . a voucher of rs 400 is given by store manager to star of

the month and he can buy anything from this voucher from store.

Training programmes are run to update them with latest changes

A meet is done after every shift in this store manager address employees

about the store and stock

Proper communication about things are maintained by store manager

about the store with employees

Promotions are given to employees according to their experience and skill

Advantage of Reliance Fresh over local kirana stores

Original products at mark price

Quality

All products under one roof

Educated staff

Expiry products are not sold

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Proper billing

Customer will not move here and there in different kirana stores for various

products

Proper ambience

Discounts

Replacement of product

Disadvantages of Reliance Fresh over local kirana stores

No bargaining

Long and complicated procedure for replacement

Shrinkage

Billing takes time

No credit

Comparison between Reliance Fresh and Subhiksha

SR.NO. RELIANCE FRESH SUBHIKSHA

1More attractive and wellmanaged

Slightly Less managed

2

No permanent discountsClaim 10% discount

3Attractive customer loyaltyProgram

No such program

4 insurance for members No such offer

5No advantage of Pharmacy orMobile store

Advantage of Pharmacy and Mobile store

6 Fresh Vegetables and Fruits at Less varieties of food and vegetables are

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economical rates available

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How supply is done

MODULE 1

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MODULE 2

Reliance Fresh stocks fresh fruits and vegetables, staples, fast moving consumer goods

and dairy products. The stores are already selling over 1,000 tonnes of fresh produce

daily and also 250 categories of commodities. The company is approaching farmers

directly for the procurement of produce, seeking to reduce the 40% wastage that occurs

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through the traditional supply chain. there are distribution centres like for north zone

there is one distribution centre in pataudi and all the products came from this centre.all

the orders of product came from higher authorities they keep track of demand of products

through software installed in each store

DISTIBUTION CENTER

A distribution center for a set of products is a warehouse or other specialized building,

often with refrigeration or air conditioning which is stocked with products (goods) to be

re-distributed to retailers wholesalers or directly to consumers. A distribution center is a

principle part, the "order processing element, of the entire "order fulfillment process.Distribution centers are usually thought of as being "demand driven A Distribution

center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a

bulk break center, and a package handling center. The name by which the distribution

center is known is commonly based on the purpose of the operation. For example a "retail

distribution center" normally distributes goods to retail stores, a "order fulfillment center"

commonly distributes goods directly to consumers, a cross-dock facility stores little or no

product but distributes goods to other destinations.

Distribution centers are the foundation of a "supply network as they allow a single

location to stock a vast number of products. Some organizations operate both retail

distribution and direct-to-consumer out of a single facility sharing space, equipment,

labor resources and inventory as applicable.

The way a typical retail distribution network operates is to have centers setup throughout

a commercial market. Each center will then service a number of stores. Large

distributions centers for companies such as reliance fresh service 50-125 stores.

Suppliers will ship truckloads of products to the distribution center. The distribution

center will then store the product until needed by the retail location and ship the proper

quantity.

Since a large retailer might sell tens of thousands of products from thousands of vendors,

it would be impossibly inefficient to ship each product directly from each vendor to each

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store. Many retailers own and run their own distribution networks, while smaller retailers

may outsource this function to dedicated logistics firms that coordinated the distribution

of products for a number of companies. A distribution center can be co-located at a

logistics center

MARKETING TACTICS:

Staff members keep asking every customer at the time of billing whether they own

RELIANCE CARD.

It is the card in which puts some points credited on every purchase done here. It is

1point against Rs. 100 and against 1 points I will get 70 paise. .The idea is get you

hooked to the store. Reliance knows the mentality of our public.

CUSTOMER SERVICE DESK

this is a seprate desk run by external agency they make membership card stated above.

And with this card they give insurance of four types accidental death, accidental death

and disability, accidental hospitalization, home protect.

They provide temporary card for 6 month after 6 months the permanent card is provided.

after every purchase points are automatically managed by retalics SOFTWARE. they

claim that to card holder new schemes will be sent on the mobile. And to card holder

calls will be made about advance information about new product and service.

OTHER TACTICS

Contests are organized for customer like on new year there was card making contest in

rohtak and there were prizes given to 1st,2nd,3rd position at every store and result was

decided by store manager itself. Pamphlets about schemes are put inside newspapers.

and schemes are decided by higher authority not by store manager

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Problems in reliance fresh

Sometimes a lot of time is wasted during billing

Sometimes there is lot of rush in store it makes buying difficult

Shrinkage that is theft of items from the store

As replenishment that is stock that is put in day time makes movement of

people difficult therefore Replenishment must be in night.

Some people at customer service desk are not able to explain their schemes in

a meaningful way so they must be trained properly

Sometimes some products are out of stock due to poor estimation of their

software.

No liberty about discounts

Security in reliance fresh

A seprate agency is for the security purpose is there in reliance fresh.the guard of

the store is most important person he is retired army officer.he keeps a watch on

Shrinkage that is theft

Markdown by employee without any reason

Whether employee are working properly and behaving properly

Other arrangement for security

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There are cameras that keeps watch on customer for theft any unreasonable

activity will be recorded by camera and these cameras directly attached to

Bombay centre where special team is assigned the duty of keeping watch on all

the stores

There are also fire alarm that sense smoke and they are also attached to Bombay

centre any smoke detected will ring alarms at Bombay centre

Reliance Retail Benefits for stake holders

Consumers

Wide assortment, affordable prices

Better shopping environmentexperience

2. Vendors

Higher category growth

Improved supply chain efficiency

Ease in launching innovative products

3. Farmer

Direct correlation between consumer preference & production

Better prices

Access to all info/services

Country

Infrastructure

Employment

Revenue and tax generation

Working Shifts in reliance fresh

Morning shift 6AM to 3PM

General shift 10AM to 7PM(for the ease of female employee)

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Evening shift 1PM to 10PM

Peak hours of sale

in summers evening 7PM to 9PM

in winters evening 1PM to 5PM

Peak days of sale

Maximum sale is done on weekends because of holidays of most of the people total sale

of weekends is nearly equal to sale of week days.

Softwares used in reliance fresh

There are two kind of softwares used in reliance fresh one is RETALICS and other is

SAP

RETALICE is used for billing, schemes, price of products, billing records

SAP is used for indent (placing of orders) another term is auto indent means orders are

placed automatically because SAP is made compatible with retalics from retalics we can

know the stock requirement.store manager also do indenting because some items demand

increased sharply in some seasons for example during navratras and marriages.

DUMP

Dump in retailing means things that are damaged

There are two types of dumping in reliance fresh

Dumping in arrival means that during transportation some items are damaged that will

be calculated in profit and loss account of the company

Dumping in store some items are damaged in store that will be calculated in profit and

loss account of store.

For both dumping in arrival as well as dumping in store there is option in SAP so that

store manager can enter the data for both these procedure guard keep a close watch so

that no incorrect data is entered.

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GRN

Goods receipt note tells how many items are received this is made by store manager .he

also update GRN in SAP software as well as there is option available in software for

GRN.

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GTN

Goods transport note is sent by distribution centre it implies how many items are sent

from distribution centre

A Reliance Fresh at Gunter

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 croresin the next 4 years in their retail division and plans to begin retail stores in

784 cities across the country. The Reliance Fresh supermarket chain is RILs Rs 25,000

crore venture and it plans to add more stores across different g, and eventually have a

pan-India footprint by year 2011. The super marts will sell fresh fruits and vegetables,

staples, groceries, fresh juice bars and dairy products and also will sport a separate

enclosure and supply-chain for non-vegetarian products. Besides, the stores would

provide direct employment to 5 lakh young Indians and indirect job opportunities to a

million people, according to the company. The company also has plans to train students

and housewives in customer care and quality services for part-time jobs.

Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in

Chennai New DelhiChandigarhLudhiana increasing its total store count to 40.

Reliance is still testing its retail concepts by controlled entry beginning in the

southern states

According to Deccan Herald the company is planning on opening new stores with

store-size varying from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and

vegetables, staples FMCG products and dairy products. Each store is said to be

within a radius of 1-2 km of each other, in relation to the concept of a neighbour

store. However, this is only the entry roll-out that the company has planned.

Bangalore is said to have 40 stores in all by the end of the year

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Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance

Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance

Super are various formats that Reliance has rolled out.

In addition, Reliance Retail has entered into an alliance with Apple for setting up

a chain of Apple Specialty Stores branded as iStore, starting with Bangalore

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FUTURE GROWTH POTENTIAL OF RETAIL MARKETING IN INDIA.

The overall retail market in India is likely to grow by 36% to touch Rs 8,00,000 crore by

2008 from the current level of Rs 5,88,000 crore, according to an Associated Chambers

of Commerce and Industry of India (Assocham) study

The study points out that of the overall retail market, the organised sector in retail

marketing is expected to touch Rs 16,000 crore by 2008 from the present size of Rs 5,000

crore. The retail market at Rs 5,000 crore, includes the organised food and grocery (Rs

600 crore). Assocham president Mahendra K Sanghi said that initiatives from all the state

governments, and the Centre are prime factors that will encourage the entry of the

organised sector into retailing in the next few years.

These initiatives include allocation of land at concessional rates, grants of loans at

liberalised interest rates to promoters of shopping malls, and rationalisation of state

levies.

He pointed out that the expansion and diversification of the organised sector in retail

marketing is currently under way because of the demand factor.

The other reason which substantiates major foray of the organised sector into retail

marketing is the availability of real estate and infrastructure facilities in most of the states

for setting up retail stores.

Such laws will no longer be there in the near future as liberalisation has already reached

its advanced stage and states are competing with one and another for attracting

investment. This will motivate and encourage the foray of organised sector into retailing,

particularly when the entry of FDIs into retailing is being strongly opposed by a section

of society and polity as well, according to the release.

According to Assocham estimates, the retail sector will create 50,000 jobs annually in the

coming five years.

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The retail sector is the second largest source of employment and job market is receptive

to retailing experience, with business schools focussing on the sector and large retailers

setting up retail academies.

FOCUS ON GROWTH

Two years ago, in the context of changing markets, we outlined a strategy for Hindustan

Lever to deliver sustainable profitable growth. This strategy builds on the past and resha-

pes for the future. I would like to update you on the progress made in executing this

strategy and also outline our future approach.

GROWTH POTENTIAL

Our published results for 2002 show a sales decline of 6.7% on account of Discontin-

uation of non value adding businesses and divestments. Our domestic FMCG business

was flat with the growth in Home & Personal Care being offset by a decline in Foods.

This may lead to a question on our growth potential. Indeed, there is a common misco-

nception that our categories are mature with little scope for growth. In fact, the very

opposite is true. Several of our categories still have low usership levels. In addition,

the actual amount used per capita is far lower in India as compared to other countries, as

shown below:

Per Capital Consumpation (Kgs)

Fabric Wash Personal Wash Toothpaste Shampoo Tea

India 2.63 0.50 0.07 0.04 0.64

Thailand 4.71 0.87 0.40 0.38 -Brazil 9.03 1.46 0.61 0.72 -

UK 13.90 1.31 0.23 0.40 2.28

Also, the GDP growth of about 5% is driving up discretionary income of our consumers

by about 8% per annum. Literacy levels are rising, creating higher aspirations further

fuelled by the world they see on television. There is no doubt that today's consumer

wants a better quality of life which is what our brands help realise.

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However, HLL is faced with the challenge that FMCG markets, after growing in strong

double-digits throughout the nineties are now declining in value for the last couple of

years. Why is this happening? In urban India, consumers are now being exposed to and

are trying several new categories, such as mobile phones, leisure, durables etc, and are,

therefore, down-trading their FMCG purchases. Rural demand has been dampened by

three unusually poor monsoons in the last four years. We believe that both these factors

are transitory in nature and FMCG markets will surely find a new growth equilibrium. Be

that as it may, we are leaders in many FMCG categories, and are taking active steps to re-

attract consumer spending to our brands. We are doing this by providing exciting, new

and differentiated benefits as well as greater value, thereby leading growth. We have

every confidence in the validity of this approach given our experience in recent

years, whereby several of our biggest brands, supported by such innovation, have grown

strongly, even in this very challenging context.

.

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SIGNIFICANCE

This study is conducted to know customer response on remerging retail stores of

reliance fresh.

Study shows what happens when a small town receives some big retail stores.as

consumer of the small town are not very much familiar with big brand retail store

and when they come to know about

Here different people belong to differently income groups are taken.

Satisfaction level of consumers from their retail stores is also examined under this

study.

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REVIEW OF LITERATURE

In India still there is lack of users for internet as a medium for banking purpose, but the

banking system are upgrading and bringing many electronic banking medium forcustomers so that banking can be made more convenient.

(1) John Tsalikis and David J. Fritzsche

John Tsalikis is an Assistant Professor of Marketing at Florida International University.

His articles have appeared in the Journal of the Academy of Marketing Science, Journal

of Business Ethics, Journal of International Consumer Marketing, andPsychology and

Marketing.

David J. Fritzsche is a Professor of Business Administration at the University of

Portland. His articles have appeared in the Academy of Management Journal, Columbia

Journal of World Business, Journal of Macromarketing, Journal of Marketing Research,

Marketing Ethics: Guidelines for Managers, and Research in Corporate Social

Performance and Policy.

In recent years, the business ethics literature has exploded in both volume and

importance. Because of the sheer volume and diversity of this literature, a review article

was deemed necessary to provide focus and clarity to the area. The present paper reviews

the literature on business ethics with a special focus in marketing ethics. The literature is

divided into normative and empirical sections, with more emphasis given to the latter.

Even though the majority of the articles deal with the American reality, most of the

knowledge gained is easily transferable to other nations.

(Marketing Department, Florida Internationas University, 33199 UniversityPark,Miami,USA)September, 1989

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(2) E. W. T.Ngai and F. K. T.Wat

They present a literature review and classification scheme for electronic commerce (EC)

research. The former consists of 275 journal articles published between 1993 and 1999 in

nine journals that are appropriate outlets for EC research. The results show that an

increasing volume of EC research has been conducted for a diverse range of areas. The

articles are classified and results of these are presented, based on a scheme that consists

of four main categories: application areas, technological issues, support and

implementation, and others. (Department of Management, The Hong Kong Polytechnic

University, Hung Hom, Kowloon, Hong Kong PR China)

Received 15 July 2000;

accepted 15 May 2001

Available online 13 January 2002.

(3) Pratibha A. Dabholkar, Dayle I. Thorpe and Joseph O. Rentz

Current measures of service quality do not adequately capture customers perceptions of

service quality for retail stores (i.e., stores that offer a mix of goods and services). A

hierarchical factor structure is proposed to capture dimensions important to retail

customers based on the retail and service quality literatures as well as three separate

qualitative studies. Confirmatory factor analysis based on the partial disaggregation

technique and cross-validation using a second sample support the validity of the scale as

a measure of retail service quality.

The implications of this Retail Service Quality Scale for practitioners, as well as for

future research, are discussed. She received her Ph.D. from Georgia State University. She

received her Ph.D. from Georgia State University. Her research interests include attitude and

choice models, service quality and customer satisfaction issues, technology in service delivery,

and business-to-business relationships. She has published articles in theJournal of the Academy

of Marketing Science, Journal of Business Research, Journal of Consumer Research, Journal of

Consumer Satisfaction, Dissatisfaction, and Complaining Behavior, Journal of Health Care

Management, International Journal of Research in Marketing, andPsychology and Marketing, as

well as in various conference proceedings.

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She also holds a B.S. and an M.S. from Florida State University and an M.B.A. from Mercer

University. Her research interests include services marketing, service quality, retailing, and

manager-employee relationships. Her publications include articles in theJournal of Consumer

Satisfaction, Dissatisfaction, and Complaining Behavior, The Service Industries Journal, and in

various conference proceedings.

He received his Ph.D. from the University of Georgia. His research interests include cohort

analysis, measurement issues, generalizability studies, and customer satisfaction. He has

published articles in theJournal of the Academy of Marketing Science, Journal of Advertising,

Journal of Marketing, Journal of Marketing Research, and theJournal of Personal Selling and

Sales Management, as well as in several conference proceedings.

the University of Tennessee, Knoxville

December, 1996

[4] Tonita Perea y Monsuwe, Benedict G.C. Dellaert, Ko de Ruyte

While a large number of consumers in the US and Europe frequently shop on the Internet,

research on what drives consumers to shop online has typically been fragmented. This

paper therefore proposes a framework to increase researchers understanding of

consumers attitudes toward online shopping and their intention to shop on the Internet.

The framework uses the constructs of the Technology Acceptance Model (TAM) as a

basis, extended by exogenous factors and applies it to the online shopping context. The

review shows that attitudes toward online shopping and intention to shop online are not

only affected by ease of use, usefulness, and enjoyment, but also by exogenous factors

like consumer traits, situational factors, product characteristics, previous online shopping

experiences, and trust in online shopping.

International Journal of Service Industry Management

2004

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(5) Project Director: David Ringholz Co-Investigator: RL Grubbs

Research Assistants: Jason Quick, Doria Kung, Camillo Vargus

The General Workstation Program is conducting research to aid in the development of

new designs for workstations in environments where accessible workstations are not

available. Specifically, the program is focused on grocery retail checkstands. The project

is also creating a knowledge base (including anthropometric measures and digital human

models) from which to inform and develop Universal Designs

Current retail checkstands do not accommodate seating and standing users Checkstand

design and task design have contributed to reduced employment of people with mobility

impairments Retailers have to make individualized custom modifications to

accommodate employees who need to sit while working or require a reduced workload

Checkstand design contributes significantly to retail workplace injury and stress Retailers

who fail to make necessary modifications to checkstands and other environmental

components have been subject to litigation

(6)Miao-Ling Chen

This paper investigates the impact of vertical restraint on advertising effects. A model is

postulated in which a manufacturer can influence retail price competition throughadvertising by increasing brand penetration, thus reducing retail price competition, and at

the same time by increasing the promotional pricing of retailers, thus intensifying retail

price competition.

Moreover, vertical restraint will influence the effects of advertising on retail price

competition by strengthening the relationship between brand penetration and retail price

competition, and by weakening the relationship between advertising and promotional

pricing of retailers. Consequently, retail price competition will be reduced. Empirical

evidence from cross-sectional data from Japan supports our hypotheses that retail price

competition is a function of not only the effects of advertising on brand penetration and

promotional pricing, but also the influence of vertical restraint on advertising effects.

Department of Finance, National Sun Yat-Sen University, Kaohsiung 80424, Taiwan,

ROC

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(Voss 1994)

The literature base for NPD has been growing with speed in recent years, though the

attention devoted to these two areas is scant (for services) or largely nonexistent (for

retailing). In comparison to industrial and consumer goods, very little research has

actually appeared on the development of new services, and what has appeared largely

concentrates on service process development (eg., Shostack 1984), the financial-services

industry (eg., Cooperet al 1994, Cooper and de Brentani 1991), though a trend does

increased services research does seem to be growing (eg., Tax and Stuart 1997). Still, the

vast majority of new product success factor studies have focused on manufactured

products (Cooper et al 1994, Easingwood 1986), whilst retailing research has been

primarily limited to testing methods (eg., Bateson and Hui 1992) or operational aspects

(eg., store atmosphere elements). These areas are discussed in detail in the Retail NPD

Literature Review in the following section of the paper.

Worsam and Wright 1995

As mentioned before, most NPD research has been of FMCG, consumer durables or

industrial products, with limited research having been devoted to retail situations.

Similarly, retailing texts only briefly deal with new retail concept development (eg.

Merrilees and Miller 1996), whilst principles of marketing texts give even less attentionthrough focusing predominantly retail evolution (eg., the Wheel of Retailing in Baker

1996, Kotler 1997) or fail to even make mention at all.

Markin and Duncan (1981)

In general, few of the retail change theories have been given unanimous support. All have

been noted to suffer from one thing or another. The Wheel of Retailing has garnished the

lions share of research interest and associated scrutiny. The Wheel has been severely

criticised as well as having been held up as the best thing going that seems to do a

reasonable job of explaining retail change. Markin and Duncan (1981) are critical of the

wheel of retailing, accordion, and retail life cycle theories. Instead, they put forth the

environment, Darwinism (survival of the fittest) and the dialectic (conflict) as possible

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forces/factors. All in all, there is no clear-cut agreement in the literature as to what a

model of retail change should encompass, let alone how it should or could be tested.

Classical Procedures Verses GIS

Classical location analysis procedures are still employed by many retailing companies forsite-location. Only recently in the past 10 years has GIS had a major impact on the business

industry. Of the classical procedures, the most frequently applied techniques for retailers are

some form of the analog method, statistical modeling, and gravitational models (Rogers,

2004). Cleary, there is not one best method for site selection, and as such, this has paved the

way for GIS, which includes many of these classical procedures embedded in GIS software.

The use of GIS has enabled organizations to move away from a gut feeling to having factual

information relating to a location (Bennison and Hernandez, 2000). It is no surprise then that

companies who deploy GIS will have a competitive advantage over companies that do not.

(Allen 1993, Power 1993)

New product development (NPD) and planning has assumed a heightened level of

importance in the modern world as organisations recognise the need to improve the NPD

process and its outcomes. In this part of the paper, the new product development

literature will be reviewed specifically that relating to the actual process of NPD. The

section begins by exploring the nature of innovation and what innovation is considered to

be. The section then discusses what constitutes a new product and the role extensions

play. Next, the benefits & opportunities and the costs & risks of NPD for organisations

are presented. This is followed by a review of the evolution of generations of NPD

modelsthe generic (sequential) and various extension NPD models (stage-gate, fuzzy-

gate, rugby, activity blocks, multiple convergent processing, continuous learning, QFD,

return maps, chaos approach) that appear

in the literature. Key NPD success factors are then profiled. The section concludes with a

summary and evaluation of the NPD models, including a table indicatingthe usefulness of each model for NRCD.

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OBJECTIVES OF THE STUDY

To compare different retail houses in terms of customer preference.

To study which income level mostly prefers reliance fresh retail stores.

To judge the perception of consumer regarding reliance fresh retail stores.

To analyze which factor tempt a consumer to purchase from a particular reliance

fresh retail store.

To judge the attitude of consumers towards reliance fresh retail stores in town like

ROHTAK. (Curiosity level).

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RE S EAR C H METHODOLOGY

Research in common parlance refers to a search for knowledge. One can define

research as a scientific and systematic search for pertinent information on a

specific topic. According to Francis Rummer, research can be defined as a

careful inquiry or examination to discover new information or relationship and

to expand or verify existing knowledge. Research is the solution of the problem

whether created or already generated, when research is done, some new

outcome, so that the problem can be solved.

RESEARCH DESIGN:-

The design used for carrying out this research is

Descriptive Research design:-

The present project is Descriptive in nature because descriptive research

studies are those studies which are concerned with describing the characteristics

of a particular individual, or a group and situation etc. The main characteristic is

that the research has no control over the variables; he can only report what has

happened or what is happening.

The design in such studies must focus attention on the following or process in

descriptive research design is as follows:-

Formulating the objective of the study.

Designing the methods of data collection.

Selecting the sample

Collecting the data.

Processing and analyzing the data.

Reporting the findings.

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DATA COLLECTION TECHNIQUES :-

DATA TYPE :-

Primary Data

Secondary Data (Internet Books & Journals)

DATA SOURCE:-

The source of collecting primary data is:-

Schedules

Personal Interview

SAMPLING DESIGN :-

Random Sampling has been opted for this project. A sample design is a definite

plan for obtaining a sample from a given population. It refers to the technique or

the procedure the researcher would adopt in selecting items for the sample.

Sample design may as well lay down the number of items to be included in the

sample i.e., the size of the sample. Sample design is determined before data are

collected.

Sampling Unit:- The sampling unit consisted of customers.

Sampling Size: 50

Sampling Area: Rohtak

Contact Method: Personal Meetings

Statistical Tools Used : Pie Charts and Bar Diagram

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OVERVIEW ABOUT COMPANY

Founder Profile:-

Growth has no limit at reliance.I keep revising my Vision. Only when you can dream it,

you can do it.

DHIRUBHAI H. AMBANI

A proud son of this glorious state of

Gujarat, and a man with long ties with this

wonderful city of Ahmedabad, was the

greatest example of this spirit of

entrepreneurship!In a short span of less

than 25 years, and without even the benefit

of a formal education, Dhirubhai Ambani

built Reliance, a first generation

enterprise, into one of the worlds 200

most profitable companies. He started out

in life, working as a mere petrol pump

attendant in Aden, Yemen. He had no

technical knowledge, of any of the business he wish to create in INDIA.He had just 500

rupees in his pocket, a vision of what he wanted to achieve, an intrinsic faith in the latent

demand potential of the Indian markets, a belief in the capabilities of Indian people, and a

burning desire to succeed!

The end result? He created Reliance,a Rs. 75,000 crore enterprise, in a single

lifetime!

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History of Reliance

Post launch, in a dramatic shift in its positioning and mainly due to the

circumstances prevaling in UP, West Bengal and Orissa, it was mentioned recentlyin news Dailies that, Reliance Retail is moving out of stocking fruits and vegetables.

Reliance Retail has decided to minimise its exposure in the fruit and vegetable

business and position Reliance Fresh as a pure play super market focusing on

categories like food, FMCG, home, consumer durables, IT and wellness , with food

accounting for the bulk of the business.The company may not stock fruit and

vegetables in some states. Though Reliance Fresh is not exiting the fruit and

vegetable business altogether, it has decided not to compete with local vendors

partly due to political reasons, and partly due to its inability to create a robust

supply chain.When the first Reliance Fresh store opened in Hyderabad last October,

not only did the company said the stores main focus would be fresh produce like

fruits and vegetables at a much lower price, but also spoke at length about its farm-

to-fork theory. The idea the company spoke about was to source from farmers and

sell directly to the consumer removing middlemen out of the way.Reliance Fresh,

Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance

Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various

formats that Reliance has rolled out.In addition, Reliance Retail has entered into an

alliance with Apple for setting up a chain of Apple Specialty Stores branded as

iStore, starting with Bangalore.

The flagship company, Reliance Industries Limited, is a Fortune Global 500

company and is the largest private sector company in India.Backward vertical

integration has been the cornerstone of the evolution and growth ofReliance. .The

Group's activities span exploration and production of oil and gas, petroleum

refining and marketing, petrochemicals (polyester, fibre intermediates, plastics

and chemicals), textiles, retail and special economic zones. Reliance enjoys

global leadership in its businesses, being the largest polyester yarn and fibre

producer in the world and among the top five to ten producers in the world in

major petrochemical products.

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Business Interests of Reliance:

Petroleum Exploration and Production: Petroleum Exploration and Production is a

major growth area for Reliance and Reliance intends to become a global energy

major. RIL is the largest Oil & Gas acreage holder among the Private sector

companies in India with 34 domestic exploration blocks covering an area of about

331,000 sq. km. It is also India's first private sector company in the Exploration and

Production (E&P) sector to have discovered large gas reserves. RIL also has interests

in one exploration block each in Yemen and Oman.

Petroleum Refining and Marketing: Reliance operates the third largest refinery in

the world at any single location, with a capacity of 30 million tons per year of crude

throughput, at Jamnagar, Gujarat. Reliance is in the process of doubling the

petroleum refinery at Jamnagar, which will make it the largest petroleum refinery in

the world. The products rolled out from Reliance refinery include: LPG, Propylene,

Naptha, Reformate, Gasoline, TAME, Jet / Aviation Turbine Fuel / Superior

Kerosene Oil, High Speed Diesel, Sulphur, and Petroleum Coke.

Major Subsidiaries of Reliance

Reliance Petroleum Limited

Reliance Netherlands BV (including Trevira)

Reliance Retail Limited

Retail Concepts and Services Private Limited

Reliance Retail Insurance Broking Limited

Reliance Dairy Foods Limited

Reliance Retail Finance Limited

Reliancedigital Retail Limited

Reliance Jamnagar Infrastructure Limited

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Reliance Haryana SEZ Limited

Reliance Industrial Investment & Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments Limited

Reliance Exploration & Production - DMCC

Major Achievements of Reliance:

The world's largest producer of Polyester Fibre and Yarn

4th largest producer of Paraxylene (PX)

5th largest producer of Purified Terepthalic Acid (PTA)

7th largest producer of Polypropylene (PP)

Reliance's refinery at Jamnagar is the third largest refinery at a single location in

the world.

Reliance pioneered the first ever Euro Convertible Bond issue by an Indian

company.

Reliance is the first private sector company in India to be rated by international

credit rating agencies.

First corporate in Asia to issue 50 and 100 years bond in US debt market.

First private sector company in India to record a net profit of US dollar of over 1

billion.

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Group companies of Reliance

Major Group

Company

Reliance Industries Reliance RetailReliance Industrial

Infrastructure

Reliance Fresh

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1.(RIL) RELIANCE INDUSTRIEES LTD.

Type Public (NSE: RELIANCE)

Founded 1966 As Reliance Commercial Corporation

Headquarters Navi Mumbai, India

Key people Mukesh Ambani (Chairman) & (MD)

Industry Oil Conglomerates

Products Petroleum and Petroleum Products

Retail stores

Polymers

Polyesters

Chemicals

Textile

Revenue US$27.43 billion (2009)

Net income US$ 3.914 billion (2009)

Total equity US$21.31 billion (2009)

Employees 25,487 (2009)

Website RIL.com

Reliance Industries Limited (NSE: RELIANCE) is India's largest private sector

conglomerate (by market value) , with an annual turnover of US$ 35.9 billion and profit

of US$ 4.85 billion for the fiscal year ending in March 2008 making it one of India's

private sectorFortune Global 500 companies, being ranked at 206th position (2008).It

was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has been a

pioneer in introducing financial instruments like fully convertible debentures to the

Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors

to the stock markets. Critics allege that the rise of Reliance Industries to the top slot in

terms of market capitalization is largely due to Dhirubhai's ability to manipulate thelevers of a controlled economy to his advantage. Though the company's oil-related

operations form the core of its business, it has diversified its operations in recent years.

After severe differences between the founder's two sons, Mukesh Ambani and Anil

Ambani, the group was divided between them in 2006. In September 2008, Reliance

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Industries was the only Indian firm featured in the Forbes's list of "world's 100 most

respected companies".

2. RIIL

Reliance Industrial Infrastructure Limited

Reliance Industrial Infrastructure Limited, a Reliance Group Company, is mainly

engaged in the business of setting up / operating Industrial Infrastructure. The

Company is also engaged in related activities involving leasing and providing

services connected with computer software and data processing. The Company has

its operations in the Mumbai and the Rasayani regions of Maharashtra, Surat and

Jamnagar belts of Gujarat as also at other places in India.

Reliance Industrial Infrastructure Limited - Profile in Brief

Reliance Industrial Infrastructure Limited is a Reliance Group Company.The Company's

Registered Office is situated at NKM International House, 5th Floor, 178 Backbay

Reclamation, Behind LIC Yogakshema Building, Babubhai Chinai Road, Mumbai

(Maharashtra) - 400 020, India.The Company was incorporated in September 1988 as a

Public Limited Company in the name of "Chembur Patalganga Pipelines Limited". The

name of the Company was subsequently changed to "CPPL Limited" in September 1992

and thereafter to its present name viz., "Reliance Industrial Infrastructure Limited" in

March 1994.The Company commenced its commercial operation in March 1992.

Activities

The Company, is mainly engaged in the business of setting up / operating Industrial

Infrastructure. The Company is also engaged in related activities involving leasing and

providing services connected with computer software and data processing. The Companyhas set up a 200-millimetre dia twin pipeline system from the Refinery of Bharat

Petroleum Corporation at Mahul, Mumbai, for transporting petroleum products like

Naphtha and Kerosene to the Petrochemical Complex of Reliance Industries Limited at

Patalganga.

It has also erected and commissioned facilities, such as -

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(i) Supervisory Control and Data Acquisition (SCADA) system and

(ii) Cathodic Protection system for the above pipeline system.

It has also constructed -

(i) Jackwell at River Tapi and an 18-kilometre long 1200-millimetre dia Raw Water

Pipeline System in Hazira.

(ii) 70000 kilolitre petrochemical product storage cum distribution Terminal at Jawaharlal

Nehru Port Trust Area in Nhava Sheva, Uran (Raigad District) in Maharashtra.

The Company has acquired and deployed various construction machinery on hire for use

at various construction sites all over India.The Company has its operations in the Mumbai

and the Rasayani regions of Maharashtra, Surat and Jamnagar belts of Gujarat as also at

other places in India.

Human Resource Development (HRD)

The Company believes that the quality of its Employees is the key to its success in the

long run. The Company has a team of able and experienced professionals. The Company

maintains cordial relations with its employees and provides development opportunities

and all round exposure to them.

3. RRL

Reliance Retail Ltd.(RRL)

Type Supermarket

Founded 30 october 2006

Headquater Mumbai India

Key people Mukesh Ambani,C.E.O

Industry Retail

Website www.ril.com

With a vision to generate inclusive growth and prosperity for farmers, vendor partners,

small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary ofRIL,

was set up to lead Reliance Groups foray into organized retail.

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Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an

organisation that caters to millions of customers, thousands of farmers and vendors.

Based on its core growth strategy of backward integration, RRL has made rapid progress

towards building an entire value chain starting from the farmers to the end

consumers.Through this year, RRL increased its footprint to more than 900 stores in 80

cities across 14 states in India. Keeping in sync with its multi-format store strategy,

RRL added new formats to its spectrum in the last year.

RRL now operates not only 'value' formats such as

Reliance Fresh (neighbourhood store),

Reliance Mart (all under one roof supermarket) &

Reliance Super (mini-mart), which offer a range of products for daily household

usage;

RRL also operates specialty formats, such as

Reliance Digital (consumer durables & information technology)

Reliance Trends (apparel & accessories),

Reliance Wellness (health, wellness & beauty),

iStore (Apple products),

Reliance Footprint (footwear),

Reliance Jewels (jewellery),

Reliance TimeOut (books, music & entertainment),

Reliance AutoZone (automotive products & services) and

Reliance Living (homeware, furniture, modular kitchens, furnishings).

Keeping in line with its commitment of providing customers with best quality products,

RRL has forged strategic partnerships with world-class companies such as Marks

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and Spencer (apparel and accessories), Office Depot (office stationery), Pearle

Europe (optical products) and Hamleys (toys).

RRL has a direct engagement with over 5 million customers following a loyalty

program 'Reliance One' which was offered from the first day of its operation. During

the year, RRL continued to bolster its agribusiness & dairy value chain to support its

rapidly expanding store footprint. By sourcing directly at the farmer's doorstep, RRL

ensures fair and timely payments to the farmers, reduction in spoilage through its stateof-

the art supply chain and logistics network and high quality produce to its customers.

In the coming year, RRL will focus on continuously innovating to enrich customer's

shopping experience through customised offers, private labels and 'value-formoney'

merchandise. RRL is also committed to foster relationships with partners that will create

new avenues of value enhancement for its customers.

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Reliance Fresh

Reliance Retail, the 100% subsidiary of Reliance Industries, on October 28 unveiled

Reliance Fresh, the first of its multi-format retail foray involving an investment of Rs

25,000 crore.

Reliance Fresh is the companys brand for neighbourhood fresh-food outlets. It will also

sell kitchen equipment and other edibles.

Besides, it has planned hypermarkets, supermarkets, discount stores, department stores,

convenience stores and specialty stores, to be unveiled shortly.

The next stop for Reliance Retail will be Ahmedabad, where the company will launch anoutlet on December 28, the birthday of RIL founder Dhirubai Ambani.

After that, it will move to West Bengal and Punjab, followed by simultaneous launches in

Delhi and Mumbai.

These stores, ranging from 2,000 to 5,000 sq feet, will provide customers with a variety

of fresh fruits, vegetables, staple foods and other products in a world-class ambience,

said Gunender Kapur, president, foods business, at the unveiling ceremony.

The strategy is to open one Reliance Fresh store in a radius of three to four km to serve

1,000-2,000 families. This means about 30-40 stores in the major metros. The air-

conditioned stores recorded a combined sales of Rs 22 lakh on the inaugural day itself.

Reliance Fresh is selling vegetables and fruits sourced from farmers through the

companys agri hubs.

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Reliance Fresh is the convenience store format which forms part of the retail business ofReliance 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 typical Reliance Fresh store is approximately 3000-4000 square. feet and caters to a

catchment area of 2-3 km.

Reliance Retail, the 100% subsidiary of Reliance Industries, on October 28 unveiled

Reliance Fresh, the first of its multi-format retail foray.Reliance Fresh is the companys

brand for neighbourhood fresh-food outlets. It will also sell kitchen equipment and other

edibles. Besides, it has planned hypermarkets, supermarkets, discount stores, department

stores, convenience stores and specialty stores, to be unveiled shortly. The next stop for

Reliance Retail will be Ahmedabad, where the company will launch an outlet on

December 28, the birthday of RIL founder Dhirubai Ambani. After that, it will move to

West Bengal and Punjab, followed by simultaneous launches in Delhi and

Mumbai.These stores, ranging from 2,000 to 5,000 sq feet, will provide customers with

a variety of fresh fruits, vegetables, staple foods and other products in a world-class

ambience, said Gunender Kapur, president, foods business, at the unveiling ceremony.

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The strategy is to open one Reliance Fresh store in a radius of three to four km to serve

1,000-2,000 families. This means about 30-40 stores in the major metros. The air-

conditioned stores recorded a combined sales of Rs 22 lakh on the inaugural day

itself.Reliance Fresh is selling vegetables and fruits sourced from farmers through the

companys agri hubs.

Mukesh Ambani

Shri Mukesh Ambani is the son of Shri Dhirubhai Ambani,

Founder Chairman of Reliance. He has done his Chemical

Engineering from Mumbai University and pursued MBA

from Stanford University.

Mr. Ambani joined Reliance in 1981 and was instrumental

in Reliance's backward integration journey from textiles into polyester fibres and further

into petrochemicals, petroleum refining and going up-stream into oil and gas exploration

and production. Mr. Mukesh Ambani spearheaded the foundation of the world's largest

grassroots petroleum refinery at Jamnagar, India, with a current capacity of 660,000

barrels per day (33 million tonnes per year) integrated with petrochemicals, power

generation, port and related infrastructure. Mr. Ambani is steering Reliance 's initiatives

in a world scale, offshore, deep water oil and gas exploration and production program,

setting up of a second petroleum refinery at Jamnagar, development of infrastructure

facilities and implementation of a pan-India organized retail network spanning multiple

formats and supply chain infrastructure.

Mr. Mukesh Ambani had set up one of the largest and most complex information andcommunications technology initiative in the world in the form of Reliance Infocomm

Limited (now Reliance Communications Limited).

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HISTORY OF RELIANCE RETAIL

Post launch, in a dramatic shift in its positioning and mainly due to the circumstances

prevaling in UP, West Bengal and Orissa, it was mentioned recently in news dailies that,

Reliance Retail is moving out of stocking fruits and vegetables. Reliance Retail hasdecided to minimise its exposure in the fruit and vegetable business and position Reliance

Fresh as a pure play super market focusing on categories like food, FMCG, home,

consumer durables, IT and wellness , with food accounting for the bulk of the business.

The company may not stock fruit and vegetables in some states. Though Reliance Fresh

is not exiting the fruit and vegetable business altogether, it has decided not to compete

with local vendors partly due to political reasons, and partly due to its inability to create a

robust supply chain. This is quite different from what the firm had originally planned.

When the first Reliance Fresh store opened in Hyderabad last October, not only did the

company said the stores main focus would be fresh produce like fruits and vegetables at

a much lower price, but also spoke at length about its farm-to-fork theory. The idea the

company spoke about was to source from farmers and sell directly to the consumer

removing middlemen out of the way.

Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint,

Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various

formats that Reliance has rolled out.

In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain

of Apple Specialty Stores branded as iStore, starting with Bangalore.

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Growth of Reliance Retail

1st reliance fresh store in Hyderabad

With overall reliance fresh stores already launched in Chennai ,Hyderabad abdJaipur ,Reliance Retail began its development of the national capital region

market with the recent opening of the 9 new stores in Gaziabad Noida and

Faridabad and Gurgaoh.

The company is targeting to open 100 more reliance fresh stores in New Delhi

alone within 4 months,and a 1000 new stores in 35 cities nationwide by the end of

2010 with a build up area of over 4 million sq. ft. An investment of rs 8000 crore

is envisaged for the NCR region alone.

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ABOUT COMPETITORS

EASYDAY STORES

easyday stores are run and managed by Bharti Retail, a wholly owned subsidiary of

Bharti Enterprises. easyday stores have opened in Punjab, Haryana, Delhi, Rajasthan and

Uttar Pradesh. Bharti Retail, which has tied up with Wal-Mart, the worlds largest

retailer, will name its convenience stores Bharti EasyDay. The first batch of stores will be

launched on April 2. A total of five stores will be launched initiallyfour in Ludhiana

and one in Chandigarh. The convenience stores will focus heavily on the food and

beverages section.According to industry sources, the stores would be modelled on

Reliance Fresh stores. The store size will vary from 1,300 square feet to 3,000 sq ft.

As is known, Wal-Mart has a technical agreement with Bharti for Its front-end retail

stores. For the back-end cash and carry segment the two companies have entered into a

50:50 joint venture.

As earlier reported by FE, Wal-Mart Incs vice-chairman Mike Duke had clearly hinted

that the front-end stores would not carry the Wal-Mart tag. This is because three-fourths

of Wal-Marts international business earnings are under 52 local brands across the globe.

We want to be seen as local retailers serving the needs of the local people in an area,

Duke had said.

However, Rajan Bharti Mittal, managing director, Bharti Enterprises, had earlier said the

final rollout plans of the retail and cash and carry stores would be made in April, and

brand names for the retail and cash and carry stores would be announced then.According

to industry sources, the forced closure of Reliance Retail stores in Uttar Pradesh might

have prompted Bharti to rework its branding strategy, and drop the Wal-Mart name to

avoid any negative brand perception.

The first cash and carry store operated by Wal-Mart will be rolled out by the year-end.

Bharti-Wal-Mart is expected to open 10-15 cash and carry stores in seven years and

employ about 5,000 people.

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SUBHIKSHA RETAIL STORES

Type Discount department store

Founded Chennai, India (1997)

Number of locations 1000 stores

Key people R. Subramaniam

Industry Retail

Employees 25,000

Subhiksha was an Indian retail chain with 1600 outlets selling groceries, fruits,

vegetables, medicines and mobile phones. It was started and is managed by R

Subramaniam, an IIM Ahmedabad alumnus. Subhiksha planed to open 1000 outlets by

December 2008.He also planned to invest Rs.500 crore to increase the number of outlets

to 2000 across the country by 2009.its turn over was 2305 crore in financial year

2008.The name Subhiksha means prosperity in Sanskrit. It opened its first store in

Thiruvanmiyurin Chennai in March, 1997 with an investment of about Rs. 5 lakhs. The

retail chain has seen a considerable growth by offering goods at cheaper rates and there

by increasing its customer base. Subhiksha now has the pan Indian presence with stores

across Delhi, UP, Punjab, Haryana, Gujarat, Maharashtra, AP, Karnataka and TN. It hasrecently commenced operation in Kerala also. Today, it is a multi-locational,

professionally managed and vibrant organization. Subhiksha now has even opened

Specialised Mobile shops called Subhiksha Mobile where mobiles are sold at a

discounted price.As of January 2009, Subhiksha has been facing severe financial crises

pertaining to liquidity. This has led to the shutting down of a large number of stores

across the Nation. Shortly thereafter the overextended chain imploded and all stores

across the country were shut down. Most likely never to open again.

In March 2010, Mr. Azim Premji, a well known Indian business man, who invested in

Subhiksha through his investment vehicle said that Subhiksha was a retail equivalent of

Satyam - India's largest corporate fraud. He said, "There was an overstatement of

accounts, fake inventory, fake bills, fake companies that money was transferred to."

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