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shashin jain, IIMP Reliance Retail Ltd.

shashin.jain@rediffmail.com

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A PROJECT REPORT ON

MARKET ANALYSIS OF THE RELIANCE FRESH STORE AT PUNE
& TO SUGGEST NECESSARY MARKETING & ASSORTMENT
STRATEGIES TO IMPROVE THE SALES REVENUE
AT

BY
MR. SHASHIN JAIN

UNDER THE GUIDANCE OF
PROF. SANTOSH PULLEWAR

SUBMITTED TO


UNIVERSITY OF PUNE


IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE
DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) FOR THE YEAR
2006 - 2008
THROUGH


INDIRA INSTITUTE OF MANAGEMENT
PUNE 411033
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CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Shashin Jain is a bonafide student of
Indira Institute of Management, and has successfully completed project work
on Market Analysis of the Reliance Fresh Store at Pune & To Suggest
Necessary Marketing & Assortment Strategies to Improve the Sales
Revenue at Reliance Retail, Pune from 1
st
June 2007 to 1
st
August 2007.

His project work has been found worthy of the award of the Degree
of Masters in Business Administration. He has shown good dedication &
commitment towards approach & conduct while doing the project work.


Dr. (Mrs.) Prachee Javadekar Prof. Santosh Pullewar

Director Internal Guide

IIMP, Pune IIMP, Pune







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ACKNOWLEDGEMENTS


At the onset, I feel privileged & thank the almighty to give me an opportunity to explore
the world of knowledge & education. This project is an attempt to share my experience and
learning during the two months with Reliance Retail in PUNE.

I would like to express my profound gratitude and sincere thanks to Mr. Parag Shah, GM-
HR, Mumbai & Mr. Sunil Deshpande, AVPHR (ROM), Mr. Devendra Zope, DGM-HR
(ROM), Pune to extend their faith & confidence in my candidature & capabilities.

I am thankful to Mr. Prasad Dixit CE (ROM) for granting the permission to undergo the
project at Reliance Retail, Pune. I would always remain grateful to Mr. Sanjeeva Jha,
Head- Operaions, ROM for assigning the live summer project that gave very holistic
exposure to retail functions & practical challenges. I also thank Dr. N.K. Praharaj, GM-
Food, Reliance Retail, Pune for his endurance in patiently listening & clarifying my doubts
related to various terminology of Reliance Retail operations & helping me to get the
relevant database of the project topic.

I would also like to express my thanks in no less measure to my respected Director Dr.
(Mrs.) Prachee Javadekar for her kind coopeartion. I express sincere thanks to Ms.
Madhuri Sathe, Director Corporate Relations, IIMP, for her profound pre-project efforts
& guidance without which, this project would not have been possible. I put my sincere
thanks and regards to Mr. Santosh Pullewar, my internal project guide & Mr. Pandit Mali
Marketing faculty for their invaluable guidelines.

My deepest regards to my family members- especially to my father who in spite of all the
challenges, gave me this unconditional opportunity to pursue MBA & my mother for her
encouraging & motivating words in the challenging time during the project.

Shashin Jain



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EXECUTIVE SUMMARY


















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PROJECT TITLE:
MARKET ANALYSIS OF THE RELIANCE FRESH STORE AT PUNE & TO
SUGGEST NECESSARY MARKETING & ASSORTMENT STRATEGIES TO
IMPROVE THE SALES REVENUE
BACKGROUND OF THE PROJECT:
Reliance Retail has drawn out ambitious plan to capture the Indian organized retail market
share through its various small & large retail formats. To start with, company has come up
with supermarket like stores under the name Reliance fresh at various locations in india.
As per some reliable reports, company plans to open about 6500 stores across India by
2010.
This project also circumscribe to One such store Reliance Fresh- at Mukund nagar
Area,Pune ( Code 1195). The store admeasures to about 6500 sq. ft & remains the second
largest only to Mantra Mall (Code 1202) admeasuring about 5550 Sq. ft.. The Mukund
nagar store has been in operation since May-2006.
In spite of being the first mover relative to other stores, this store was lagging behind in all
the parameters -including the monthly sales revenue.
The key challenge for the company was to Improve the
! Sales Revenue
! Per capita purchase
! Average Ticket size &
! Monthly footfall in store.
This called to execute the MARKET RESEARCH to identify and analyze the factors
responsible for the low sales revenue of the store under study & based on the findings, to

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suggest necessary marketing & assortment strategies to improve the sales revenue.
The project entailed application of one of the most effective problem-solving tool
SYSTEM THINKING.
The following tasks were carried out under the project work:
! Geographic analysis of the store
! Demographic survey of the core catchment
! Inter-store benchmarking of sales performance
! In-depth sales revenue analysis of the store
! Customer feedback analysis
! Designing marketing & assortment strategies

OBJECTIVES:
Primary Objective:
To execute market analysis of the Reliance fresh store at Mukund nagar, pune &
suggest marketing & assortment strategies to improve the sales revenue.
Secondary Objectives:
! To critically examine geographic location of the store
! To carry detailed sales performance analysis of store under various product
Categories.
! To verify the stated hypothesis about the sales underperformance of the store
(Mukund nagar).
! To carry intra-store benchmarking exercise so as to verify the relative
performance of Mukund nagar store.
! To identify the purchasing patterns & habits of the customer by collecting

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customer Feedback in store.
! To conduct demographic survey of the core catchment to verify the findings of
the geographic analysis & customer feedback analysis.
! To get practical exposure & understanding of various functions in the retail
industry & the integration of the integrity of various front & back end
functions in the retail industry.

RESEARCH METHODOLDOGY:
Research Methodology also takes into account various steps that are generally adopted by
researcher in studying the research problem along with the logic behind each step.
Research Methodology takes into account the following:
1. Methodology
2. Implementation
3. Data Collection Instruments
4. Sampling Plan
5. Data Analysis & Interpretation
6. Presentation of findings and recommendations.

Data source -
A) Primary sources -
! Personal geographic visit of the target catchment
! Customer feedback
! Survey of the household in the target catchment
B) Secondary sources -

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! Sales revenue database through DSS of RRL

Research Design:
This research is basically Exploratory in nature. The task was to conduct catchment
analysis, gather Primary data from the customers, residents of the catchment & data analysis
of the sales revenue of the stores.
Sampling:
Sampling for the customer feedback & demographic profile was non-probability
convenience sampling. The reason being customers & catchment residents were selected on
the basis of their convenience & access.
Sample Size:
Sample size for the customer feedback was 83 & for the demographic survey was 32 in
numbers.

Sampling Unit:
Sampling unit for the customer feedback survey was individual customer, where as for the
demographic survey, it is individual household in the Mukund nagar catchment.

LIMITATIONS:
Some limitations were due to assignable causes and some were due to random causes.
Assignable causes are attributable to a specific function but the random causes were out of
control. Some of the Limitations during the execution of Research Study were,


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! A sample size of 83 numbers for the customer feedback survey & 32 numbers for
the demographic survey may be insufficient to represent the population under study.
Further, Some of the respondents didnt reply to selected questions mentioned in the
survey form.
! The study could have been more comprehensive had not the limitation of two
months of time been there.
! Casual approach was observed for some respondents while collecting the primary
data.
! Sample size chosen for the demographic survey was relatively small in numbers
( due to the restriction & constraints to get access in the societies) & the feedback
collected from the customers was subjected to the sampling errors.
! Due to limitation of the time, competitive analysis could not be carried out.

KEY FINDINGS:
! Geographic Analysis:
! The total household size of the catchment is about 3000-3500 & that of
bungalows is about 100. Hence, total target customer is about 15000.
! There is a need to study the occupancy rate of flat in the southern part.
! Geographically, In the absence of any general commercials, around the store
( eg. Medicine, cinema, stationery, general merchandise), people need definite
motive to come to store at any particular time.



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! Demographic Analysis:
! The profile of the target customer is very distinct compared to other stores.
Most of them are domestic residents & not migrated from outside the city. So,
the knowledge about the product quality, price & value is very much known to
them.
! Prevalence of close community tie-up & extreme price sensitiveness among the
targeted customers due to their historical background.
! The very positioning of Reliance fresh is shared with the nearest competitor
Choupal (of ITC). With a good & updated knowledge about the pricing of
F & V (fruits & vegetables) , groceries etc., the majority of the customers does
selective purchase based on the value (quality/pricing) from various stores &
shops.
! In the southern part, the immediate competitor is M/s Sane & Shriram provision
stores, which has established strong personal rapport with the customers while
offering similar level of products & services.
! The overall living style & eating pattern is very modest.
! The core competitors are not the supermarkets but rather the Traditional general
stores & wholesale F & V market ( Market yard/Mandi) .
! The current shoppers hail from even as far as the area like dhankawadi and
bibwewadi (about 4-5 Kms. From the store location), which may turn to nearest
supermarket of competitor or Reliance Fresh.




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! Customer Feedback Analysis:
! Most of the customers visit the store for F & V section.
! There is a good amount of customer transition from Choupal to Reliance fresh
& vise a versa.
! The store layout is good, however, the western part of the store is very much
underutilized in terms of space & the footfall to FMCG-non food section is only
about of the total footfall.
! Due to poor tilling management, customer billing time is high.

! Sales Revenue analysis:
! The % contribution of Mukund nagar Store, across all the categories, is below
average (Per square feet contribution as a base) as compared to other stores.
! while benchmarking with the best performing store in that category, the Nearest
figure is 76% (For the HOME Category. The rest all the categories are below
the 50%. Meaning that the Mukund nagar does not contribute even 50% of the
best performing store in that category.
! At Mukund nagar store, FOOD category is accounting only for about 12% of
the total revenue in that category as compared with the other stroes (of about
same size), which attracts double the collection.







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KEY CONCLUSIONS:
! The Mukund nagar store is located very strategically however, the competition
level is very high as the competitiors like Spencers & Choupal share the same
core catchment customers. Furthermore, the nearness (about 3 kms.) & easy
accessibility of the market-yard (whole sale F & V and grocery market of
pune) aggravates the challenge even more.
! The target customers-although very affluent, have a modest life style. The
purchasing habit of the customers is very diverse & heterogeneous.
! While analyzing the SKU performance, very few have performed relatively
better than the other store in terms of sales revenue & the store falls behind in
almost all the FOOD & NON-FOOD categoris.
! From the above DA & DI of the benchmarking of the sales revenues figures of
the stores, it can be that Mukund Nagar store is performing relatively poor when
benchmarked against other stores.
! The percentage contribution of Mukund nagar Store, across all the categories, is
below average (Per square feet contribution as a base) as compared to other
stores. Only Pharmaceuticals are performing relatively good as compared to
others.
! Although the overall customer feedback is positive about the store visit &
purchasing experience, the percentage of the visitors from the distant catchment
is higher.



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KEY RECOMMENDATIONS:

! There is an urgent need to asses the price levels of the FMCG-food section
owing to the fact of nearness of the wholesale market.
! The company should try to motivate the visit from the distant catchment by
devising proper communication & promotion mix.
! The assortment mix available needs improvement as there is a huge scope to
fulfill the product need at the local catchment level.
! The marketing efforts are not periodical in nature & the company should take the
advantage of the database of the customers it has by converting the data in to
Knowledge.
! There is enough scope to create inclusive environment for the customers.
! The store should be customized than that of standardized.
















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TABLE OF CONTENTS:



Chapter No. Title Of the Chapter Page No.
EXECUTIVE SUMMARY I
LIST OF FIGURES X
LIST OF TABLES XII
1 INTRODUCTION 1
2 OBJECTIVES 6
3 RETAIL INDUSTRY PROFILE 7
4 COMPANY PROFILE 36
5 RESEARCH METHODOLOGY 49
6 LIMITATIONS 60
7
DATA ANALYSIS & DATA
INTERPRETATION
61
8 OBSERVATIONS & FINDINGS 124
9 CONCLUSIONS 128
10 RECOMMENDATIONS 130
11 BIBLIOGRAPHY 143
12 APPENDIX 145





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LIST OF FIGURES:
Figure No. Title Page No.
1 Comparative penetration of organized retail 7
2 Journey of organized retail in India 7
3 Retail trade India, US & china 8
4 Estimated growth in organized retail 8
5 Estimated floor space addition 10
6 Unit retail space (sq ft/house hold) 10
7 Map of Indias income classes 11
8 Organized retail penetration across categories 17
9 Retail penetration available in India 18
10 Formats adopted by key players in india 19
11 Gateway to India- current permitted retail formats 23
12 Reliance retail images 36
13 Organization structure- reliance retail 39
14
Diagrammatic representation of sampling
techniques
58
15 Religion followed by the customer respondents 72
16 Occupation of the customer respondents 73
17
Eating habit (vegetarian/non vegetarian) of the
respondents
74
18 Purchase frequency of wheat and rice 75
19 Source of grocery purchase 76
20 Place of purchase for F & V 77

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21 Approximate monthly expenditure on grocery 78
22 Customer respondents from the core catchment 86
23 Source of information about the store 87
24 Preferred time to visit the store 88
25 Frequency of the visit in a store in a week 89
26 Mother tongue of the respondents 90
27 Primary purpose to visit the store 91
28 Means used to visit the store 92
29 Approximate billing time taken on each visit 93
30
Rating of the freshness, varieties & quality of
Fruits & Vegetables
94
31 Experience about the parking facility 95
32 Price Perceived compared to other store 96
33 Rating of the ambience of the store 97
34 Rating of the behavior of the staff 98
35 Rating of the atmosphere while shopping 99
36 Easiness to locate the items in a store 100
37 Experience of complete shopping 101
38
Whether would recommend other s to visit the
store
102
39 Whether would visit the store again 103
40
Recommended Segments to introduce more
products in
104





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LIST OF TABLES:

Table No. Title Page No.
1 Benefits & drawbacks of FDI in Retail sector 14
2 Major formats of in-store Retailing 19
3 Retail Formats adopted by key players in India 20
4
List of retailers who have come up with new
formats
21
5 Merger & Acquisition in retail 22
6 Importance of rural market 29
7 SWOT analysis of retail market 34-35
8 Steps in Research methodology 49-50
9 Core-catchment analysis 61-64
10 Interpretation of demographic survey 79-84
11 Summary of the remarks given by customers 106
12 Intra-store benchmarking of sales performance 108-111
13 Summary of intra-store benchmarking 112-113
14 Sales performance of Mukund nagar store 118-122
15
Suggested marketing strategies for Mukund nagar
store
131-134
16
Suggested assortment strategies for Mukund
nagar store
135-141



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INTRODUCTION






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1.1 Introduction to the Topic:
Market Analysis Overview
Whether one wants to start a new business or launching a new product, or wants to manage
a business better, conducting a marketing analysis is the first step in determining if there is a
need or audience for your idea. Knowing the market's needs and how it is currently serviced
provides you with key information that is essential in developing your product/service and
marketing plan. Too often, businesses spend thousands of dollars launching a "new" idea
with a limited market because of competition. The owner is forced to reevaluate his strategy
and determine if there is room for another player.
Although the quality of the product is critical, the development of the best product on the
market will not necessarily correlate with the most sales.
Conducting a market analysis will help to:
1. Prepare to enter a new market
2. Launch a new product/service
3. Start a new business
4. Win the current market
Retail Market Analysis - What is Retail Market Analysis?

Retail market analysis seeks to identify market trends in local and regional retail sectors
using detailed demographic and retail sales data on local communities. The goal of the
exercise aims to provide relevant information and analysis that can be used as input into

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economic development strategies for local communities. The final product is a retail market
analysis report that contains the following components:
Market Analysis Questionnaire
To begin the market analysis process one needs to answer the following questions.
1. What defined market am I trying to reach?
2. What specific companies are servicing this market?
a. Are they successful?
b. Are there other companies servicing this market with a similar product?
c. Are they successful?
d. What is their market share?
3. Is the market saturated or wide open? If so, why?
4. What is the size of the market?
a. Is it a growing market?
b. Is the industry stable, volatile, growing or trendy?
5. How can I reach this market?
a. How do my competitors reach the market?
6. What are the business models of my competitors?
7. What do customers expect from this type of product or service?
8. What core competencies must the product or service have?
9. What are customers willing to pay for this type of product or service?
10. What is my competitive advantage?
A marketing strategy is most effective when it is an integral component of corporate
strategy, defining how the organization will engage customers, prospects and competitors in

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21
the market arena for success. A marketing strategy also serves as the foundation of a
marketing plan.
A strategy consists of well thought out series of tactics. While it is possible to write a
tactical marketing plan without a sound, well-considered strategy, it is not recommended.
Without a sound marketing strategy, a marketing plan has no foundation. Marketing
strategies serve as the fundamental underpinning of marketing plans designed to fill market
needs and reach marketing objectives. It is important that these objectives have measurable
results.
Market analysis of the retail store deals with the study of various geographic, demographic
& competitive environmental factors that drive & affects the sales performance of the store.
The research under study mainly focuses upon two aspects that is
1) To conduct market analysis of the store to find out the factors responsible for the
low sales revenue &
2) To suggest necessary marketing & assortment strategies to improve the sales
revenue.
The topic takes into account -
! Geographic analysis of the store
! Demographic profile of the core catchment
! Customer Feedback analysis
! Detailed analysis & benchmarking of the sales performance of the store under
study with other established store

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22
! Finally, based on the analysis & interpretation from the above, to suggest
necessary marketing & assortment strategies to improve the sales.
Thus the main purpose of the study is
! Analyze the market position of the Reliance Fresh store at Mukund nagar, pune &
! Build sustainable marketing & assortment strategies to gain sustainable competitive
advantage so as to improve the sales revenue.
The very first step is to analyse the core catchment of the store by personal visit & critically
evaluate the geographic location & positioning of the store with respect to accessibility,
convenience, distance, visual identity, parking facility, approach to the store, nearest
competitors & their location etc.
This is followed by the brief demographic survey so as to get an idea of living habits, life
style, spending patterns on the F & V & grocery section. This helps to get a rough idea
about the potential of the target market.
Customer feedback is one of the most important sources to identify the gap in the offerings
of the goods & services of the company & the expectation of the customers. Customer in the
retail industry drives the business & retail business has to be localized as per the need &
wants of the customers.
The Detailed intra-store benchmarking exercise is also undertaken to find out the sales
revenue performance across the FOOD & NON-FOOD categories. This helps to understand
the strong & weak performing product segments in the store. It also helps to verify the
components of the sales in the store under study.

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23
The main research instrument, which was used, for the survey was questionnaire. Two
Such questionnaires were prepared for targeting the various groups. These are
- Questionnaire to get the demographic profile & purchasing pattern of the catchment
residents. - Questionnaire to get the customer feedback to find out the gap between
customer expectation & offerings of the company.
Further, to gain the deep insight of the demographic profile & history of the area, personal
interaction/interview were carried on with selected walk-in customers, Customer Service
Associates at Reliance Fresh store, shopkeepers, watchman of the societies in the target
catchment etc. Thus in this manner the approach was established towards framing
necessary marketing & assortment strategy to improve the sales revenues of the Mukund
nagar store, pune.
1.2 Reasons for Selecting the Topic:
First and foremost reason for selecting the topic related to Market Analysis was that it was
companys high priority to re-understand the target market holistically because of the
consistent failure to improve the sales revenue & related parameters like footfall, average
ticket size etc.. Executing Market analysis would help to frame necessary action-plans to
improve the sales revenue of the store. Further, it really helps to understand the functioning
of the retail store & various challenges associated with running of it.
Researcher was fortunate enough that Mr. Sanjeeva Jha (Head- Operations) allowed and
extended full support and help in executing such a kind of research work.


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24








OBJECTIVES








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OBJECTIVES:

Primary Objective:
To execute market analysis of the Reliance fresh store at Mukund nagar, pune &
suggest marketing & assortment strategies to improve the sales revenue.
Secondary Objectives:
! To critically examine geographic location of the store
! To carry detailed sales performance analysis of store under various product
Categories.
! To verify the stated hypothesis about the sales underperformance of the store
(Mukund nagar).
! To carry intra-store benchmarking exercise so as to verify the relative
performance of Mukund nagar store.
! To identify the purchasing patterns & habits of the customer by collecting
customer Feedback in store.
! To conduct demographic survey of the core catchment to verify the findings of
the geographic analysis & customer feedback analysis.
! To get practical exposure & understanding of various functions in the retail
industry & the integration of the integrity of various front & back end
functions in the retail industry.





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26

An Overview of the Indian Retail sector:
The Indian retail sector is highly fragmented with 97% of its business being run by the
unorganized retailers like the traditional family run stores and corner stores. The organized
retail however is at a very nascent stage though attempts are being made to increase its
proportion to 9-10% by the year 2010 bringing in a huge opportunity for prospective new
players
1
. The sector is the largest source of employment after agriculture, and has deep
penetration into rural India generating more than 10% of India's GDP
2
.

Fig-1 Fig-2
A look at the statistics shows that the retail sector in India is worth USD 394 billion and is
growing at the rate of 30% annually. An ICR IER study has found that retailing
($180 billion) contributes to 10 per cent of GDP and employs 7 per cent (21 million) of the
workforce
3
. According to AT Kearney, India is given the top ranking as the next foreign
investment destination, as markets like China become increasingly saturated . India is the 4
th

largest economy as regards GDP (in PPP terms) and is expected to rank 3
rd
by 2010 just
behind US and China
1
. Over the past few years, the retail sales in India are hovering around

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27
33-35% of GDP as compared to around 20% in the US. The table gives the picture of India's
retail trade as compared to the US and China.

Fig-3 (Source: Economist, Let gradualism guide FDI in retail, 2006)

Fig-4
The last few years witnessed immense growth by this sector, the key drivers being changing
consumer profile and demographics, increase in the number of international brands
available in the Indian market, economic implications of the government increasing
urbanization, credit availability, and improvement in the infrastructure, increasing
investments in technology and real estate building a world class shopping environment for
the consumers. In order to keep pace with the increasing demand, there has been a hectic
activity in terms of entry of international labels, expansion plans, and focus on technology,

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28
operations and processes. This has lead to more complex relationships involving suppliers,
third party distributors and retailers, which can be dealt with the help of an efficient supply
chain. A proper supply chain will help meet the competition head-on, manage stock
availability; supplier relations, new value-added services, cost cutting and most importantly
reduce the wastage levels in fresh produce .
Large Indian players like Reliance, Ambanis, K Rahejas, Bharti AirTel, ITC and many
others are making significant investments in this sector leading to emergence of big retailers
who can bargain with suppliers to reap economies of scale. Hence, discounting is becoming
an accepted practice. Proper infrastructure is a pre-requisite in retailing, which would help
to modernize India and facilitate rapid economic growth. This would help in efficient
delivery of goods and value-added services to the consumer making a higher contribution to
the GDP.
International retailers see India as the last retailing frontier left as the China's retail sector is
becoming saturated. However, the Indian Government restrictions on the FDI are creating
ripples among the international players like Walmart, Tesco and many other retail giants
struggling to enter Indian markets. As of now the government has allowed only 51% FDI in
the sector to `one-brand' shops like Nike, Reebok etc. However, other international players
are taking alternative routes to enter the Indian retail market indirectly via strategic
licensing agreement, franchisee agreement and cash and carry wholesale trading (since
100% FDI is allowed in wholesale trading).


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29

Fig- 5 Fig-6
1. How has the Indian consumer changed over the years?
In the past few years the whole concept of shopping has been altered in terms of format and
consumer buying behavior. With the increasing urbanization, the Indian consumer is
emerging as more trend-conscious. There has also been a shift from price considerations to
designs and quality as there is a greater focus on looking and feeling good (apparel as well
as fitness). At the same time, the Indian consumer is not beguiled by retail products which
are high on price but commensurately low on value or functionality. However, it can be said
that the Indian consumer is a paradox, where the discount shopper loyalty takes a backseat
over price discounts.
Indians have grown richer and thus spending more on vehicles, phones and eating out in
restaurants. The spending is focused more outside the homes, unlike in other Asian
countries where consumers have tended to spend more on personal items as they grow
richer. Spending on luxury goods have increased twice as fast with 2/3 of India's population
is under 35, consumer demand is clearly growing. The mall mania has bought in a whole
new breed of modern retail formats across the country catering to every need of the value-

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30
seeking Indian consumer. An average Indian would see a mall as a perfect weekend
getaway with family offering them entertainment, leisure, food, shopping all under one roof.

Fig-7: Map of Indias Income Classes
! With reference to the map of India's income class, it can be noticed that the real
driver of the Indian retail sector is the bottom 80% of the first layer and the upper
half of the second layer of the income map. This segment of about 40 million
households earns USD 4,000-10,000 per household and comprises salaried
employees and self-employed professionals and is expected to grow to 65 million
households by 2010.
! Indian consumer is witnessing some changes in its demographics with a large
working population being under the age group of 24-35.
! Increasing number of nuclear families, increase in workingwomen population and
emerging opportunities in the service sector during the past few years, which has
been the key growth driver of the organized retail sector in India.

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31
! The emergence of a larger middle and upper middle classes and the substantial
increase in their disposable income has changed the nature of shopping in India
from need based to lifestyle dictated. The self-employed segment has replaced the
employed salaried segment as the mainstream market, thus resulting in an
increasing consumption of productivity goods, especially mobile phones and 2 - 4
wheeler vehicles.
! There is also an easier acceptance of luxury and an increased willingness to
experiment with the mainstream fashion, resulting in an increased willingness
towards disposability and casting out from apparels to cars to mobile phones to
consumer durables.
! Indians spend over USD 30,000 a year (in PPP terms) on conspicuous consumption
that represents 2.8% of the entire population (which is approx 30 million people)
making it the 4
th
largest economy in PPP terms next only to USA, Japan and China.
! Facilities like credit friendliness, availability of cheap finance and a reduced interest
rates.
Key drivers of growth
Indians with an ability to spend over USD 30,000 a year (PPP terms) on conspicuous
consumption represent 2.8% of the entire population. But with a population base of 1.07
billion people, this number amounts to 30 million people, a market next only to USA, Japan
and China. While consumer demand is driving retail growth, it is in turn being driven by the
following factors:



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Economic growth: This has meant greater disposable incomes for the booming Indian
middle class, which currently comprises 22% of the total population. This figure is expected
to increase to 32% by 2010. Disposable incomes are expected to rise at an average of 8.5%
p.a. till 2015.
Demographics: More than 50% of the population is less than 25 years of age and strong
growth is expected to continue in this age bracket.
Urbanization: The Indian urban population is projected to increase from 28% to 40% of
the total population by 2020 and incomes are simultaneously expected to
grow in these segment.
Credit availability: Retail loans have doubled in the last three years to reach USD 38.7 bn
by 2005.

2. FDI in retail:
Global retailers have already been sourcing from India; the opening up of the retail sector to
the FDI has been fraught with political challenges. With politicians arguing that the global
retailers will put thousands of small local players and fledging domestic chains out of
business.The only opening in the retail sector so far has been to allow 51% foreign stakes in
single brand consumer stores, private labels, high tech items/ items requiring specialized
after sales service, medical and diagnostic items and items sourced from Indian small sector
(manufactured with technology provided by the foreign collaborations). Parties supporting
the FDI suggest that the FDI in retail should be opened in a gradual/ phased manner, such
that it can promote competition and contribute to the growth of the Indian economy. The
impact of the FDI would benefit the end user of the consumer to a great extent and will help
to generate a decent amount of employment as more and more entrepreneurs would be
coming forward to invest and taste the new generation in retail marketing. The opening of

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33
FDI should be designed in such a way that many sectors - including agriculture, food
processing, manufacturing, packaging and logistics would reap benefits.

Benefits of FDI in retail Drawbacks of FDI in retail
Inflow of investment and funds.
Improvement in the quality of
employment.
Generating more employment.
Increased local sourcing.
Provide better value to end consumers.
Investments and improvement in the
supply chains and warehousing.
Franchising opportunities for local
entrepreneurs.
Growth of infrastructure.
Increased efficiency.
Cost reduction.
Stimulate infant industries and other
supporting industries.
Would give rise to cut-throat competition rather
than promoting incremental business.
Promoting cartels and creating monopoly.
Increase in the real estate prices.
Marginalize domestic entrepreneurs.
The financial strength of foreign players would
displace the unorganized players.
Absence of proper regulatory guidelines would
induce unfair trade practices like Predatory
pricing.

Table 1: Benefits & Drawbacks of FDI in Retail


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3. Segment analysis:
The structure of Indian retail is developing rapidly with shopping malls becoming
increasingly common in the large cities and development plans being projected at 150 new
shopping malls by 2008. However, the traditional formats like hawkers, grocers and
tobacconist shops continue to co-exist with the modern formats of retailing. Modern
retailing has helped the companies to increase the consumption of their products for
example: Indian consumers would normally consume the rice sold at the nearby kiranas viz.
Kolam for daily use. With the introduction of organized retail, it has been noticed that the
sale of Basmati rice has gone up by four times than it was a few years back; as a superior
quality rice (Basmati) is now available at almost the same price as the normal rice at a local
kirana. Thus, the way a product is displayed and promoted influences its sales. If the
consumption continues to grow this way it can be said that the local market would go
through a metamorphoses of a change and the local stores would soon become the things of
the past or restricted to last minute unplanned buying.
3.1 Food and grocery retail:
The food business in India is largely unorganized adding up to barely Rs. 40,000 crore, with
other large players adding another 50% to that. The All India food consumption is close to
Rs. 900,000 crore, with the total urban consumption being around Rs.330,000 crore. This
means that aggregate revenues of large food players is currently only 5% of the total Indian
market, and around 15-20% of total urban food consumption. Most food is sold in the local
`wet' market, vendors, roadside push cart sellers or tiny kirana stores. According to
McKinsey report, the share of an Indian household's spending on food is one of the highest
in the world, with 48% of income being spent on food and beverages.

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3.2 Apparel retail:
The ready-mades and western outfits are growing at 40-45% annually, as the market teems
up with international brands and new entrants entering this segment creating an Rs.500
crore market for the premium grooming segment. The past few years has seen the sector
aligning itself with global trends with retailing companies like Shoppers' stop and
Crossroads entering the fray to entice the middle class. However, it is estimated that this
segment would grow to Rs. 300 crore in the next three years.

3.3 Gems and Jewellery retail:
The gems and jewellery market is the key emerging area, accounting for a high proportion
of retail spends. India is the largest consumer of gold in the world with an estimated annual
consumption of 1000 tonnes, considering actual imports and recycled gold. The market for
jewellery is estimated as upwards of Rs. 65,000 crores .

3.4 Pharma retail:
The pharma retailing is estimated at about Rs. 30,000 crore, with 15% of the 51 lakh retail
stores in India being chemists. According to Vikas Bali, Principal, A.T. Kearney (India)
Ltd, "Pharma retailing will follow the trend of becoming more organised and corporatised
as is seen in other retailing formats (food, apparel etc)". A few corporates who have already
forayed into this segment include Dr Morepen (with Lifespring and soon to be launched
Tango), Medicine Shoppe, Apollo pharmacies, 98.4 from Global Healthline Pvt Ltd, and the
recently launched CRS Health from SAK Industries. In the south, RPG group's Health &
Glow is already in this category, though it is not a pure play pharma retailer but more in the
health and beauty care business .

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3.5 Music Retail:
The size of the Indian music industry, as per this Images-KSA Study, is estimated at
Rs.1100 crore of which about 36 percent is consumed by the pirated market and organized
music retailing constitutes about 14 percent, equivalent to Rs.150 crore .
3.6 Book retail:
The book industry is estimated at over Rs. 3,000 crore out of which organized retail
accounts for only 7% (at Rs.210 crore). This segment is seen to be emerging with text and
curriculum books accounting to about 50% of the total sales. The gifting habit in India is
catching on fast with books enjoying a significant share, thus expecting this sector to grow
by 15% annually .
3.7 Consumer durables retail:
The consumer durables market can be stratified into consumer electronics comprising of TV
sets, audio systems, VCD players and others; and appliances like washing machines,
microwave ovens, air conditioners (A/Cs). The existing size of this sector stands at an
estimated USD 4.5 Billion with organized retailing being at 5%.

Fig-8: Penetration of organized retail across categories (%)


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37
As noticed in the figure above, the organized retail penetration (ORP) is the highest in
footwear with 22% followed by clothing. Though food and grocery account for largest share
of retail spend by the consumer at about 76%, only 1% of this market is in the organized
sector. However, it has been estimated that this segment would multiply five times taking
the share of the organized market to 30 percent in the coming years .
4. Industry analysis of the Indian retail sector:
Modern retailing has entered India in form of sprawling malls and huge complexes offering
shopping, entertainment, leisure to the consumer as the retailers experiment with a variety
of formats, from discount stores to supermarkets to hypermarkets to specialty chains.
However, kiranas still continue to score over modern formats primarily due to the
convenience factor.

Fig-9 : Retail Formats available in India
Major Formats of In-Store Retailing
Format Description The Value Proposition
Branded
Stores
Exclusive showrooms either owned or
franchised out by a manufacturer.
Complete range
available for a given
brand, certified product
quality
Specialty
Stores
Focus on a specific consumer need, carry
most of the brands available
Greater choice to the
consumer, comparison
between brands is

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38
possible
Department
Stores
Large stores having a wide variety of
products, organized into different
departments such as clothing, house
wares, furniture, appliances, toys, etc.
One stop shop catering
to varied/ consumer
needs.
Supermarkets Extremely large self-service retail outlets
One stop shop catering
to varied consumer
needs

Discount
Stores
Stores offering discounts on the retail
price through selling high volumes and
reaping economies of scale
Low Prices
Hyper- mart
Larger than a supermarket, sometimes
with a warehouse appearance, generally
located in quieter parts of the city
Low prices, vast choice
available including
services such as
cafeterias.
Convenience
stores
Small self-service formats located in
crowded urban areas.
Convenient location and
extended operating
hours.
Shopping
Malls
An enclosure having different formats of
in-store retailers, all under one roof.
Variety of shops
available to each other.
Table-2:Major formats of in-store Retailing
Indian Retail- expanding the number of formats
In modern retailing, a key strategic choice is the format. Innovation in formats can provide
an edge to retailers. Organized retailers in India are trying a variety of formats, ranging from
discount stores to supermarkets to hypermarkets to specialty chains.
Fig-10: Formats adopted by key players in India

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39
Formats Adopted by Key Players in India
Retailer Original formats Later Formats
RPG Retail Supermarket (Foodworld)
Hypermarket (Spencer's)Specialty Store
(Health and Glow)
Piramal's
Department Store (Piramyd
Megastore)
Discount Store (TruMart)
Pantaloon Retail
Small format outlets
(Shoppe)
Department Store
(Pantaloon)
Supermarket (Food Bazaar)
Hypermarket (Big Bazaar) Mall (Central)
K Raheja Group
Department Store (shopper's
stop)
Specialty Store (Crossword)
Supermarket (TBA)
Hypermarket (TBA)
Tata/ Trent Department Store (Westside) Hypermarket (Star India Bazaar)
Landmark
Group
Department Store (Lifestyle) Hypermarket (TBA)
Others
Discount Store (Subhiksha, Margin Free, Apna Bazaar), Supermarket
(Nilgiri's), Specialty Electronics

Table-3: Formats adopted by key players in India
List of retailers that have come with new formats:
Retailer Current Format New Formats. Experimenting With
Shoppers' Stop Department Store Quasi-mall
Ebony Department Store Quasi-mall, smaller outlets, adding food retail
Crossword Large bookstore Corner shops
Piramyd Department Store Quasi-mall, food retail
Pantaloon Own brand store Hypermarket
Subhiksha Supermarket Considering moving to self service
Vitan Supermarket Suburban discount store

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40
Foodworld Food supermarket Hypermarket, Foodworld express
Globus Department Store Small fashion stores
Bombay Bazaar Aggregation of Kiranas
Efoodmart Aggregation of Kiranas
Metro Cash and carry
S Kumar's Discount store

Table -4: List of retailers who have come up with new format

Traditionally, the small store (kirana) retailing has been one of the easiest ways to generate
self-employment, as it requires minimum investments in terms of land, labour and capital.
These stores are not affected by the modern retailing as it is still considered very convenient
to shop. In order to keep pace with the modern formats, kiranas have now started providing
more value-added services like stocking ready to cook vegetables and other fresh produce.
They also provide services like credit, phone service, home delivery etc.
The organized retailing has helped in promoting several niche categories such as packaged
fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience
and health foods, which are generally not found in the local kirana stores. Looking at the
vast opportunity in this sector, big players like Reliance and K Rahejas has announced its
plans to become the country's largest modern retainers by establishing a chain of stores
across all major cities.



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41
Apart from metro cities, several small towns like Nagpur, Nasik, Ahmedabad, Aurangabad,
Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails. Small
towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail
because many small cities like Nagpur have a student population, lower real estate costs,
fewer power cuts and lower levels of attrition. However, retailers need to adjust their
product mix for smaller cities, as they tend to be more conservative than the metros.
5. Merger and acquisition activity:
India witnessed a record number of M&A deals in the first half of 2006, which were
collectively worth USD 25.6 billion. A significant number of deals have being carried out in
the Indian retail sector in the past few months in order to acquire a larger share in the
growing domestic market and to compete against the prospective global and domestic
players.
13
The table below shows some recent deals that have taken place in the Indian retail
sector:
Year
Acquired/ JV
Company/
Target
Acquirer
Nature of
Business
Stake
Consideration
(US$ million)
2005 Liberty Shoes Future group Retail (Footwear) 51% 3
2005
Indus - League
Clothing
Future group Retail clothing 68% 5
2005 Odyssey India
Deccan Chronicle
Holdings
Leisure retail
chain (books,
music, toys)
100% 14
2005 Landmark Tata Trent
Books, music,
accessories
74% 24
2006
Bistro
Hospitality
TGI Friday's (a
subsidiary of
Carlson Restaurant
World-wide)
Restaurant (Food
retail)
25% N/A
2006
Indus League
clothing
(Future group
company)
Etam group, France
Lingerie and
women's wear
retailing
50%
(JV)
8

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42
Table- 5: Merger & Acquisition activities in Retail
6. Business models for entry in Indian markets:
Due to the FDI restrictions the international players are looking for alternative avenues to
enter the Indian markets. The chart below shows the current formats permitted by the
Government of India for the international players.

Fig- 11: Gateway to India- current permitted retail formats
7. Employment opportunities in this sector:
The Indian retail sector offers an economic opportunity on a massive scale both as a global
base and a domestic market. This sector yields many positive results like generating more
jobs and bringing numerous goods to the consumers at reasonable prices. According to
Ernst &Young's report `The Great Indian Retail Story' this sector is expected to create 2
million jobs by 2010.


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43
About 4 crore people are employed in retail trade, assuming each person supports a family
of 5, this, implies that about 20 crore people are dependent on this sector. For a vast
majority of the households, retailing is a euphemism for a marginal existence. Modern retail
formats have generated huge employment for the young and even senior citizens and
women wanting to work part-time (even in small towns). People have greater exposure to
the technical aspects, training and also earn higher salaries along with bonuses and
incentives. With foreign companies opening expanding in India, employees are being re-
trained according to international standards and practices that are being bought in. There is
also an increase in the number of retail management programmes and institutes. This will
bridge the gap in availability of talented professionals at the middle and lower levels.
Successful Indian retailers are creating a robust second and third level of management by
hiring aggressively for these key roles. Talented professionals will put increased pressure on
wage costs. Therefore operating margins, especially for mid-sized retailers, are becoming a
poaching ground for international retailers once they enter India. The companies are also
employing people who are physically handicapped. The next few years are expected will
see the sector offering new jobs to 50,000 young graduates and diploma holders.

8. What makes foreign firms come to India?
A host of traditional `brick and mortar' companies such a Tatas have entered the retail
business. With demographic changes like rising disposable incomes and rapidly expanding
middle class, the Indian retail sector is at an inflexion point where the growth in
consumption and growth of organized retailing are taking it towards higher growth. Market
liberalization and an increasingly assertive consumer population have attracted bigger
Indian and multinational operations to make investments, but are yet to achieve success or
reach break even.

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India has the youngest population in the world, with large population between 20-34 age
groups in the urban regions boosting the demand. All these factors have tempted the foreign
firms such as Walmart, Tesco and Carrefour to enter India. India is now firmly placed on
the US and UK radars as US retailers are gradually realizing the potential of the retail and
consumer goods sector. The timing is the most important source of competitive advantage
for global and regional retailers in the globalization race. Knowing when to enter emerging
retail markets is the key to success.

AT Kearney's study on global retailing trends found that India is the least competitive as
well as least saturated of all major global markets. This implies that there are significantly
low entry barriers for players trying to setup base here, in terms of the competitive
landscape. The report further stated that global retailers such as Walmart, Carrefour, Tesco
and Casino would take advantage of the more favourable FDI rules that are likely in India
and enter the country through partnerships with local retailers. Other retailers such as Marks
& Spencer and the Benetton Group, who operate through a franchisee model, would most
likely switch to a hybrid ownership structure.


9. Technology in Retail :
Over the years as the consumer demand increased and the retailers geared up to meet this
increase, technology evolved rapidly to support this growth. The hardware and software
tools that have now become almost essential for retailing can be into 3 broad categories.
Customer Interfacing Systems

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! Bar Coding and Scanners
Point of sale systems use scanners and bar coding to identify an item, use pre-stored
data to calculate the cost and generate the total bill for a client. Tunnel Scanning is a
new concept where the consumer pushes the full shopping cart through an electronic
gate to the point of sale.
! Payment
Payment through credit cards has become quite widespread and this enables a fast
and easy payment process. Electronic cheque conversion, a recent development in
this area, processes a cheque electronically by transmitting transaction information
to the retailer and consumer's bank.
! Internet
Internet is also rapidly evolving as a customer interface, removing the need of a
consumer physically visiting the store.
Operation Support Systems
! ERP System
Various ERP vendors have developed retail-specific systems which help in
integrating all the functions from warehousing to distribution, front and back office
store systems and merchandising. An integrated supply chain helps the retailer in
maintaining his stocks, getting his supplies on time, preventing stock-outs and thus
reducing his costs, while servicing the customer better.

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! CRM Systems
The rise of loyalty programs, mail order and the Internet has provided retailers with
real access to consumer data. Data warehousing & mining technologies offers
retailers the tools they need to make sense of their consumer data and apply it to
business. This, along with the various available CRM (Customer Relationship
Management) Systems, allows the retailers to study the purchase behavior of
consumers in detail and grow the value of individual consumers to their businesses.
! Advanced Planning and Scheduling Systems
APS systems can provide improved control across the supply chain, all the way from
raw material suppliers right through to the retail shelf. They enable consolidation of
activities such as long term budgeting, monthly forecasting, weekly factory
scheduling and daily distribution scheduling into one overall planning process.
Strategic Decision Support Systems
! Store Site Location
Demographics and buying patterns of residents of an area can be used to compare
various possible sites for opening new stores. Today, software packages are helping
retailers not only in their locational decisions but in decisions regarding store sizing
and floor-spaces as well.


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! Visual Merchandising
The decision on how to place & stack items in a store is no more taken on the gut
feel of the store manager. A larger number of visual merchandising tools are
available to him to evaluate the impact of his stacking options. The SPACEMAN
Store Suit from AC Neilsen and ModaCAD are example of products helping in
modeling a retail store design

Retailers worldwide are looking forward to increase their IT spending by almost 15% in
2006, allocating almost half of this increase to application software with a particular focus
on tools that facilitate multi-channel customer relationships, point of sale systems, strategic
merchandising and supply chain management
17
. However, organized retailers have not
taken well to the concept of 3PL (third party logistics) due to their apprehensions of losing
control over the supply chain. Currently, the transportation is carried out partly by organized
service providers and partly by truckers and local transporters.

10. A look at the rural retailing:
More than half of retail market in India is in the rural areas (55%); although share of urban
market is increasing by almost 5% every 8-10 years . Accommodating almost two-third of
the country's consumers and generating almost half of the national income, the rural India
offers tremendous opportunities for organized retailers which many companies have failed
to access. According to the study conducted by NCEAR, the number of `lower middle
income' group in rural areas is almost double as compared to the urban areas, having a large

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48
consuming class with 41% of the Indian middle class and 58% of the total disposable
income.

Table- 6: Importance of retail market
A look at the demographics reveals that the highest income levels households in the rural
areas are 1.6 million as compared to 2.3 million in urban areas. It has also been forecasted
that the middle and the higher income households are expected to grow to 111 million by
2007 from the current levels of 80 million. Thus, it can be said that with 128 million
households, the rural population is nearly three times the urban. This vast demand base and
size offers a huge opportunity that MNCs cannot afford to ignore.
In order to meet with this rapid growth in demand the government has shown its
concern by providing an induction of Rs.140 billion and Rs. 300 billion in the rural sector
through its development schemes in the Seventh and the Eight plan respectively. The large
players like ITC, HLL, BPCL are realizing the potential of this sector and are seen
experimenting with new ways to tap this segment.
ITC spent 3 years and Rs. 80 crore on R & D to come up with the concept of E-
choupal and Choupal Sagar-rural hypermarkets
18
. Through this, the farmers can access
latest local and global information on weather and market prices, scientific farming
techniques at the village itself through a web-portal - all in Hindi. E-Choupal also facilitates
supply of high quality inputs as well as purchase of commodities at their doorstep. The

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49
hypermarket (Choupal Sagar) provides them with another platform to sell their produce and
purchase necessary farm and household goods under one roof.
Next in line, HLL came up with Project Shakti in late 2000 to sell its products through
women self-help groups who operate like a direct-to-home team of sales women in
inaccessible areas where HLL's conventional sales system does not reach. Another step to
tap the rural market was `Operation Bharat' wherein low-priced sample packets of
toothpastes, fairness creams, Clinic Plus shampoos and Ponds face creams to 20mn
households.
As a part of their rural strategy, BPCL introduced Rural Marketing Vehicles
(RMVs) that move from village and village and filling cylinders on the spot for rural
consumers keeping in mind the low-income of the rural population. The Company also
introduced a smaller size cylinder to reduce both the initial deposit cost as well as the
recurring refill cost.
10. Future outlook:
Investments in the range of US$ 20+ Billion are expected in the next 5 years in Retail & its
Supply Chain alone. According to Assocham, the overall retail market would grow by 36
per cent with the organised sector expected to register three-fold growth to Rs 15,000 crore
by 2008. The total size of the market is also expected to increase to Rs 14,79,000 crore from
the current level of Rs 5,88,000 crore.

11. Size of modern retail likely to touch US$ 60+ Billion by 2011:
At least 2.5 Million additional direct jobs likely to be created in the next 5 years.
Hyper-competition is expected to set in by 2008-9 as the footprint of the top-5 players starts
significant overlapping in top 20 - 30 towns.

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50
12. Challenges faced by retail sector:
HR- a critical business process
The industry is facing a severe shortage of talented professionals, especially at the
middlemanagement level. Areas gradually becoming critical are technology, supply chain,
business development, marketing, product development and research. Increase in the
number of retail management programmes and institutes will bridge the gap in availability
of talented professionals at the middle and lower levels. However, talented professionals
will put increased pressure on wage costs. Therefore, operating margins, especially for mid-
sized retailers will shrink. There is also a huge risk for Indian retailers becoming a poaching
ground for international retailers.

An agile and adaptive supply chain is key
Logistical challenges, constant changes in consumer preferences and patterns, crowded
marketplaces, efficient customer responsiveness and swiftly evolving retail formats are the
hallmarks of todays retail environment in India. These factors pose a huge challenge for
that all-important key to pushing growth in this kind of an environment - an efficient and
adaptable supply chain. In the last 2-3 years, several retailers, ranging from F&B operators
to discount clothing, have implemented Supply Chain Management (SCM) solutions to
improve core business processes such as global sourcing, distribution, logistics, innovation,
transparency and visibility in financials and inventory, compliance and management of
point of sale (POS) data. Going ahead, Indias FMCG and retail sectors are likely to see an
increase in adoption of SCM.


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51
Fraud in retail is expensive
Fraud is going to be one of the retail sectors primary challenges in the future. Fraud and
theft, including employee pilferage, shoplifting, vendor frauds and inaccuracy in
supervision and administration costs the Indian retail industry about Rs 550-600 crores
(USD 0.12-0.13 billion) every year. This is despite the fact that most large modern format
retailers use standard security features such as CCTVs, POS systems and antishoplifting
systems for greater control over fraud and theft. In financial terms, cost of this fraud
constitutes about 2% of the organized retail sectors revenues. Implications and size of this
loss will be more significant as retailers continue to scale up and increase product lines.

Improvement in infrastructure and logistics needed
India is a large and highly fragmented country, with 29 states and 18 official languages. A
bulk of its population, 66.1 %, lives in rural areas. The lack of adequate infrastructure
makes it virtually impossible to reach this virtually untapped market. Distribution, or the
lack of it, is a major hindrance for retailers in India. The lack of quality infrastructure across
the country and a non-existent distribution sector results in inefficient logistics systems.
Urbanization is driving an increasing need to upgrade or create infrastructure facilities .An
indicator of the urgent need for need for highway development, for instance, is the fact that
average daily traffic volume on highways of 39,000 Passenger Car Units (PCUs) far
exceeds the highway capacity of 15,000 PCUs. Transport is a major concern, with a
deteriorating railway system and a limited highway network. In contrast to the global
standards, the average load carried by trucks in India - around 7 tons - is very low.
However, the Indian Government is presently investing heavily in the state highway system.
This will help in an overall decline in logistics costs which is currently 10-12% of the total
GDP. 10,000 MW of power needs to be added every year for the next decade. Growth in air

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52
passenger traffic, estimated at 20% p.a. for the next two years, necessitates quadrupling of
airport capacities. Ports will witness 38% increase in tonnage in the next 2-3 years and
hence, port infrastructure cannot be ignored. The lack of a distribution sector and
specialized distribution companies is a major obstacle for retailers to fully utilize Indias
retail potential. Private logistics companies offering specialized services, refrigerated
transport and warehouse facilities across the country, along with timely distribution of
supplies to retail outlets will create some of the much needed back-end support for retailers
to enhance operational performance. If addressed urgently and seriously, infrastructure can
translate into Indias biggest opportunity.

Government Regulations
Stringent labor laws govern the number of hours worked and minimum wages to be paid
leading to limited flexibility of operations and employment of part-time employees. Further,
multiple clearances are required by the same company for opening new outlets adding to the
costs incurred and time taken to expand presence in the country.
The retail sector does not have 'industry' status yet making it difficult for retailers to raise
finance from banks to fund their expansion plans.
Government restrictions on the FDI are leading to an absence of foreign players resulting
into limited exposure to best practices.
Non- availability of government land and zonal restrictions has made it difficult to find a
good real estate in terms of location and size. Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions.




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53
SWOT OF THE RETAIL MARKET:







STRENGTH

1. Organized retailing at US$ 3.31 billion,
growing at 8%.
2. 2nd largest contributor to GDP after
agriculture at 20%.
3. Pattern of consumption changing along
with shopping trends.
4. A Growing population will translate to
move consumers.
5. Consumer spending increasing at 11%
annually.
6. Almost 25 million sq. ft. retail space
available.
7. Paradigm shift in shopping experience for
consumers pulling in more people.
8. Most of the entrants to organized retail
come from 3 main categories, and have
ventured into retail as their business
extension.
" Real Estate Developers
" Corporate Houses
" Manufacturers/Exporters


WEAKNESSES


1. Shortage of quality retail spaces at
affordable rates.
2. Government regulations on development
of real estate (Urban Land Ceiling Act)
3. Need to provide Value for Money-
squeezing margins
4. Lack of industry status.
5. Retail revolution restricted to 250 million
people due to monolithic urban-rural
divide.
6. Footfalls not a clear indicator of sales as
actual consumers lower in number.
7. Lack of huge investments for expansion.


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54

Table- 7 SWOT of retail market


















OPPORTUNITIES

1. Increasing urban population-more
participants in retail revolution.
2. Increase in consuming middle class
population.
3. Social factors like dual household income
has enhanced spending power.
4. Spends moving towards lifestyle products
and esteem enhancing products.
5. Availability of old industrial lands-prime
real estate locked in sick industrial units.
6. Average grocery spends at 42% of
monthly spends-presents a huge
opportunity.
7. Increase in usage of credit cards.



THREATS

1. Rising lease/rental costs affecting project
viability
2. FDI restrictions in the retail sector
3. Poor monsoons and low GDP Growth
could affect consumer spending.
4. Archaic labour laws are a hindrance to
providing 24/7 shopping experience
5. Personalized service offered by Mom-&-
Pop stores.
6. Unavailability of qualified personnel to
support exponential growth in retail.
7. Differentiate taxation laws hindering
expansion.



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55








COMPANY PROFILE











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56
Company Profile: Reliance Retail














Fig 12- Reliance Retail

A targeted sales turnover of Rs 90,000 crore (US$ 20 billion) by 2010 with a planned
investment of Rs 30,000 crore over the next five years that's the retail vision of Mukesh
Ambani and his RIL retail team. RIL's retail venture seems all set to achieve the status of
being the flag-bearer of India Retail Inc, and that too in record time!
Blueprint for 800-odd Towns/Cities: Initial Investment Rs 3,350 Crore
The word finally came out on January 23, 2006, when the Mukesh Ambani-controlled
Reliance Industries Limited presented the mega retail initiative plans to its board of
directors who subsequently gave their consent to pursue the retail business through a
wholly-owned subsidiary of the company likely to be christened Reliance Retail Limited.


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57
The Reliance Retail blueprint envisages nation-wide chains of hypermarkets, supermarkets,
discount stores, department stores, convenience stores and specialty stores, in about 800-
odd cities and towns across the length and breadth of India. The RIL board of directors
approved the initial phase of the retail foray at an estimated cost of Rs 3,350 crore (US$ 750
million).
Reliance Retail's proposed investments equivalent to about 10 per cent of India's organised
retail market such a level of investment in the Indian retail arena has been unprecedented
in the country's most promising sunrise industry retail.
So much so, projections by the Images-KSA India Retail Report 2005 of an organised retail
market of Rs 100,000 crore (US$ 22 billion) by 2010 now appears conservative, likely to be
achieved much earlier than 2010.
RIL Set To Become World's Largest Real Estate Property Owner
Reliance Industries Limited will far out-surpass the Catholic Church in becoming the
world's largest owner of real-estate property by virtue of its mega Retail and Satellite
Township plans, in the next two to three years! Reliance Retail is in fact giving India for the
first time a real feel of the scale at which these global retail powerhouses actually operate, it
is preparing India to stand up to the ensuing competition and in the process, allow
consumers the full benefits of modern retail.
Retail Will Become Core Business of RIL
Reliance Industries Limited is the largest and one of the fastest growing private sector
companies in India, with business activities encompassing almost all major growth sectors
of the Indian economy. The company manufactures and markets a wide range of products
with market leadership in almost all its businesses.
All of Reliance Group production and services ventures have one common feature global

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58
scale operations employing state-of-the-art technology in all fields. The company is truly
emerging as a well diversified conglomerate with global competence in technology,
management and financial capabilities to meet the needs of a rapidly growing Indian
market.
RETAIL PLANS & STRATEGIES
Manoj Modi and Hital Meswani- ED,RIL, flanked by a core team of trusted lieutenants and
business aides, constitute the top hierarchy in Reliance Retail. They have access to close
supervision from Mukesh Ambani himself. The retail plans are humungous and Reliance
insiders claim that the objective is to 'do a Wal-Mart' in India.
Targets 90,000 Crore Turnover by 2010
RIL has set a revenue target of Rs 90,000 crore (US$ 20 billion) from its retail operations
by year 2010, almost 10 per cent the size of the current organised retail business in the
country. It dwarfs India's current numero uno in organised retail chain, Pantaloon Retail,
which currently has an annual turnover of US$ 240 million from its 84 outlets spread over
30 cities and has projected revenues of US$ 2 billion by 2009. RIL's plans include a pan-
India footprint of its stores, across multiple formats and categories, in more than 800 cities
and towns, and in record time.





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59
ORGANISATION STRUCTURE RELIANCE RETAIL
RELIANCE RETAIL
Overall Organization Structure
Supervisory Board
Advisory Boards
Food Non-Food Services
Fresh & Frozen
FMCG & Pharma
Entertainment
Staples
Apparels &
Accessories
Healthcare
& Wellness
Processed Food
Consumer Durables
Financial &
Travel
Home Solutions
Automotive
Lifestyle
Printing, Imaging
& Others
Food
Supply
Chain
Retail
Operations
& Strategy
****
Shared/ Support
Finance
HR
Information
Technology
Loss Prevention
Process & Quality
Assurance *
Strategic
Partnerships
Internal Audit &
Compliance
Corporate Branding
Functions
Leadership
Support
Services
Food Non-Food
Marketing/
Branding
Services Operations
Marketing
Legal
Regulatory
Commercial
Corporate Affairs
Organization Structure: Reliance Retail - Overall
Dairy
Sourcing &
Procurement
Strategy, Research &
Planning
RR Board
CCD
Agri
Retail
Business
(Platform)
B-2-B
Sales
SBU
Institutional
Sales
SBU
Franchisee
Sales
SBU
Logistics and
Distribution
Real
Estate
Infrastructure
Footwear
Dairy
Business
F & B

Fig- 12: Organization structure of Reliance retail



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60


Multiple Formats with Investment of Rs 30,000 Crore
The brains behind the mega retail venture have been able to ideate and develop a low cost
pan-India supply-chain model that will involve massive economies of scale.
The strategy is to set up a chain of hypermarkets, supermarkets, discount stores, speciality
stores, and convenience store formats in 800-odd cities and towns across the length and
breadth of the country at an investment of around Rs 30,000 crore (US$ 8 billion).
The retail foray will have almost all the leading Indian and international brands, and
possibly a sizeable presence of private labels as well, and would clearly try and build a loyal
customer base with tens of millions of consumers from across the country.
While the sheer scale of operations will ensure Reliance's retail business a 20 per cent return
on investment over a span of five years, its rural low cost-high return investment will ensure
sufficient competitive edge vis--vis purely urban retail operators.
First Phase: 1,575 Outlets by March 2007
The first phase will see around 1,575 retail outlets coming up in just three months between
December 2006 and March 2007. The first of these outlets will be opening around
September this year, either in Mumbai or Ahmedabad.
Reliable sources say that the retail business would start with 20 destination points in A-class
cities in India, and soon expand to over 100 destinations in a very short span of time. On an
average, each of these retail centres could be spread over 100 acres of land that would house
leisure and entertainment facilities, small hospital complex, eateries and a big mall. RIL
insiders are, of course, tight-lipped about everything.

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61
Further, it has been reported in the media circles that initially the company has targeted the
five states of Maharashtra, Gujarat, Punjab, West Bengal and Andhra Pradesh for the first
phase of retail rollout.
Gradually, in the next two to three years, Reliance Retail plans to establish a pan-India
presence of all its formats, targeting not only the major metros and cities, but also the
second-tier towns and semi-urban and even rural centres. Quite clearly then, the number
800 towns and cities has been very strategically and meticulously worked upon.
Evaluation of Category Mix & Formats
Reliance Retail has studied the potential of all possible categories of products and services
retailing. In fact, it is keen on capturing market leadership in every possible retail category,
once it has rolled out and consolidated its retail operations.
The market insights and intelligence derived from this effort has helped Reliance to evaluate
each category on its market-size, growth rate and potential as being one of the main
determinants for its retail rollout operations. This can clearly be taken as a precursor to
Reliance's understanding of the retail market in India, in terms of clear understanding of:
The primary sources of procurement of products
Average inventory (retail and warehouse) that is normally maintained at retail stores
The number of SKUs across brands and categories
The credit details (in terms of the number of days and cash) that retailers normally get
The average gross margin (percentage of MRP) that the retailer generally gets.



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62

Apart from food and grocery, which will contribute 40 percent to total sales, the company is
strongly looking at apparel, lifestyle, consumer durables, and leisure and entertainment
operations as its major drivers of business. It is considering the establishment of both multi-
brand as well as exclusive brand outlets for certain categories of operations.
While most of outlets will be company-owned, the convenience-store format could possibly
be the only exception to be operated through a franchisee route in collaboration with mom-
and-pop kirana shop-owners, which in itself is a novel concept that could work very well in
the Indian context.
RIL has roped in leading retail consulting firm, Technopak Advisors, and management
consulting firm AT Kearney to provide specific and specialised strategic inputs, and advise
the top management of Reliance Retail during the entire planning, design and
implementation, and execution stages of the massive retail foray, reports say. The popular
format in towns and rural settings will be hypermarkets, which will be warehouse-style
stores spread over 150,000 sq.ft and will be selling products ranging from consumer
electronics and groceries to fresh food and clothes. There will also be smaller 75,000 sq.ft
supermarkets.

Catering Services: A1 Plazas to Dot RIL Fuel Stations

RIL has already studied and successfully developed several niche concepts and categories
of retail, the A1 Plaza in the catering services category being one of them. It has started over
100 company-owned fast food joints along various stretches of India's highways, where it
has over 1,000 pumps up and running. The A1 Plazas serve parantha-aloo-matar or idli-
dosa-sambar to the hungry highway traveller, depending on his choice; the stress being on

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63
hygienic food at a fair price. A thali at these outlets comes at Rs 24 and a chai at Rs 3
economical rates for truck-drivers as well as highway travellers. The A1 Plazas are also
offering a quick bath at Rs 5-15 quite clearly a novel concept.

Forecourt Retailing: Hospitality at Every 100 to 300 Km along Highways
In the forecourt retailing category, RIL has taken up the hospitality side of petroleum
retailing business in right earnest, which can be gauged from the fact that it has signed up a
technical services agreement with US-based Flying J, a highway hospitality service provider
to the transportation sector.
Petroleum retailing is a low margin business and Reliance understands that
it needs to steadily build up the volumes. The product throughput variation can only go up
with the extra facilities that Reliance offers such as food-courts and change-rooms.
Importantly, more Indians are hitting the road and such services will only add on to the
attraction of road travel.
The plan is to set up such outlets every 100-300 kilometre. Reliance is said
to be pushing this model of value-added retailing in a bid to corner what it believes will be
the next sector after air travel to hit the growth trajectory road travel.

Service Centres: R-Care for Automobiles & Refresh for Commuters
Even as Reliance has gone about ensuring comfort of the highway traveller, it has not
forgotten the more functional aspect of motoring along the roads. To ensure easy access to
reliable repairs, the company is setting up over 120 automobile service centres (R-Care) to
go with the A1 Plazas.
Yet another variant of up-market eating joints, Refresh, will be set up
inside its select fuel retail premises to cater to the moneyed highway traveller. A start has

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64
been made on the Ahmedabad-Vadodra Highway.

Household Merchandise: 150 Qwik Marts
Select RIL fuel stations across India, initially 150 of them, will have retail outlets branded
as Qwik Mart a chain of quick service, quick transaction stores. The Qwik Mart value
proposition offers convenience through multiple offerings under one roof, speed of service
and value-based pricing. They will be sub-branded as 'Commute' for those located within
cities, 'Journey' for those on highways, and 'Neighbourhood' for those in residential areas.
Three Qwik Mart outlets have already been launched in Mumbai and one along the
Ahmedabad-Vadodra Expressway.

Rs 8,000 Crore Earmarked for Pan-India Supply Chain Network
The success of any mega retail venture hinges on the scale and efficiency it can establish in
Supply Chain Management (SCM). Reliance is strongly focussed on establishing a robust
and cost-effective supply chain network that will ultimately pass the cost-benefits to its
customers.
It is estimated that more than a quarter over Rs 8,000 crore of Reliance
Retail's planned investments of Rs 30,000 crore would be spent on setting up of the supply
chain network. This unprecedented level of investment in building the supply chain network
will become a key differentiator for Reliance's Retail project.
Strongly believing in the 'farm-to-fork' model, RIL top brass made a few trips to various
states last year to work out an exclusive contract-farming project with the farmers whereby
Reliance Retail will purchase fresh vegetable and farm produce from these states and
transport the same to its warehouses, which will subsequently transport the same to the
inter-connected Reliance retail centres.

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65
To strike an example, pineapples that are sold at a mere 25 paise a piece in
the North-East will be purchased in bulk by Reliance Retail, and shipped to the entire
network of Retail stores all over the country. What this also ensures is that farmers and
growers get a fair price for their produce and the huge cost benefits of wholesale
procurement gets passed on to the end-consumer.
As part of its backward integration, the company has plans to set up
an integrated supply chain infrastructure, including a cold chain for foods. The blueprint
envisages retailing everything. It is believed that RIL will feed the huge retail chain through
seven large wholesale terminals. Its plans include over 150 warehouse clubs or distribution
centres, catering to the supply and requirements of its speciality stores, hypermarkets,
supermarkets, department and discount stores. Various media reports suggest that the
company is actively scouting for real estate across India and may even hire large malls for
its purpose.
In the consumer durables sector, Reliance Retail is reported to have
entered into agreements and contracts with the leading manufacturers to procure
merchandise directly from their factories.
RIL's huge warehousing facilities are to be dotted all over the country and expected to be
the hub, the nerve-centre for the supply base that will feed the network of stores.
Bangalore, for instance, is likely to be the base for Reliance Retail's apparel operations.

Retail Talent: Where Do They All Come From?
With the blueprint for retail operations prepared, the most important aspect is the
acquisition of competent human resources and manage talent so as to realise this mega
vision of Mukesh Ambani.

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66
Modern organised retail being a relatively new area of business
activity in India, there is obviously a dearth of adequately skilled manpower. And, given the
gigantic scale of RIL's retail operations, the availability of retail professionals at various
levels and functions was always a cause of major concern.
However, Reliance is what it is today due to its ability to attract
the best of available talent in which ever field it chooses to operate. A cursory glance at the
list of high-profile retail professionals, who have been recruited by 'Reliance Retail' over the
last couple of months, makes it evident that many of the jewels of modern organised
retailing in India have flocked to the company and more will follow suit.
Mukesh Ambani himself is taking an active role in selecting and recruiting the top-level
management of Reliance Retail, reliable sources say. More than half of the top-level
management, the 'generals' of Mukesh Ambani, have already been absorbed. And it's a
virtual 'who's who' of the retail fraternity in India who have come together.
Raghu Pillai, among the tallest names in retail operations, strategy and supply chain
management, is now the President and Chief Executive (Operations and Strategy) at
Reliance Retail.
D Saravanan was the big daddy of supply chain and quality control at burger king,
McDonald's. He will head similar functions at Reliance Retail and will also be responsible
for the linkages of backward integration.
Harsem Singh has been roped in to head RIL's dairy retailing venture. With mega
plans being made to take on the big dairies like Amul, Singh's expertise will be found
useful. Sanjeev Asthana, who was the business head for grain at Cargill India, will now
cater to grains and oilseeds in the Reliance venture.
Biju Kurien, the chief operating officer of Titan Industries, will now head the
lifestyle retailing category at Reliance Retail.

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67
A former Hindustan Lever (HLL) man, Gunender Kapur will handle the food and
grocery category. Since Reliance wants to enter into every big and small retail format,
including malls, Suresh Singaravelu, the former chief executive of Bangalore based Prestige
Constructions (The Forum) mall venture, will push the same at Reliance Retail, as per
reports. He is responsible for the setting up and development of malls.
While the consumer electronics vertical will be headed by Rajeev Karwal, an
ex-Onida, LG and Electrolux chief, the apparel and clothing vertical will likely be overseen
by Sriram Srinivasan, the erstwhile managing director of Indus League, controlling stakes
of which was acquired by Pantaloon Retail last year. Ninu Khanna, Bombay Dyeing's
former MD, is also likely to head Reliance Retail's FMCG vertical. Khanna's FMCG
background includes his stint as head of Dabur.
Reliance Retail will also have state-level CEOs, who will be owners of the
geography and the entire store formats therein. The heads of the business verticals will drive
profits at their respective categories, whereas the geography owner will be accountable for
individual store and regional performance.
Even as the top management CEO/president-level positions are getting filled,
Reliance Retail might yet face a problem of resources for its middle and lower management
staff and service agents at the floor-level. The rumours have it that Reliance is not averse to
poaching people resources across functions from existing players. It is also being said that
the high profile CEOs who have already been absorbed by Reliance Retail will pull in their
business associates, colleagues and friends from companies they served before.
If media reports get it correct, Mukesh Ambani is ready to pay Rs 100 crore in salaries in
the first year itself. This is being done with a view to attract the best available talent.
Clearly the Reliance Retail juggernaut is rolling fast, and retail is emerging as a prized
career option, thanks to RIL.

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68

CONCLUSION
The magnitude and strategy of RIL's retail foray is sure to have far reaching social and
economic implications by directly influencing the lifestyles of hundreds of millions of
consumers, besides indirectly impacting the livelihood of tens of millions. This indirect
impact will be on those engaged in a wide range of economic activities including farming,
consumer goods manufacturing, and a host of myriad other services that bring hundreds of
categories of goods and services from the producers to the final consumers.
Business analysts feel that Mukesh Ambani's advantage is his huge financial strength
coupled with a track record of implementing mega projects in record time, at globally
competitive capital costs. Mukesh Ambani has learned to dream big from his great visionary
father, the late Dhirubhai H Ambani, who is acknowledged as one of India's tallest, most
ambitious and successful business leaders for his sharp business acumen and skilled people
management ability. Quite clearly, RIL is now all set and ready to conquer the organised
retail domain. The Indian retail scene is now going to witness some real fast-paced action,
with the consumer as always having the best deal.















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69























RESEARCH METHODOLOGY















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70

6.1 RESEARCH METHODOLOGY:

MEANING OF RESEARCH:
Research can be defined as a scientific and systematic search
for pertinent information on a specific topic. Research is an act of scientific investigation.

Research Methodology is a way to systematically solve the research problem. In it we
study the various steps that are generally adopted by a researcher in studying his research
problem along with logic behind them. Researchers also need to understand the assumption
underlying various techniques and they also need to know the criteria by which they can
decide that certain techniques and procedures will be applicable to certain problems and
others will not. So it is necessary for the researcher to design his methodology for his
problem or subject under study as it differs from problem to problem. So research
methodology not only considers the research method but also the logic and purpose behind
use of that particular research method. It also explains why are we use a particular method
or technique and why we are not using others so that research results are capable of being
evaluated.
Generally, a research methodology comprises of the following Steps:.


S.No. General Methodology Applicability of Methodology
Step 1. To decide the objective of the
study
" To conduct the market analysis of the
Reliance fresh, Mukund nagar store,
pune.

" To annalyse the factore responsible
for the low sales revenue at the store.

" To suggest necessary marketing &

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71
assortment strategies to improve the
sales revenue
Step 2. To decide the research design Exploratory research is applicable to the
project.
Step 3. To determine the source of data Primary as well as secondary data is
applicable to the project .
Step 4. To design data collection form Survey method is applicable.
Step 5. To determine sampling design and
sample size.
Non-probability convenience sampling
is applicable.
Step 6. To organize and conduct the
fieldwork.
Personal interview of the customers at
the store & also of the residents of the
catchment. Also catchment study
(geographic) was undertaken.
Step 7. To process and analyze the
collected data.
- To analyse the sales performance of
the store through benchmarking
- To analyse the customer feedback.
Step 8. To prepare the research report Finding and analysis of the collected
information.

Table-8: Steps in Research Methodology

6.2.1 Research Design:
What is research design?
Research design is a plan, structure, strategy of investigation conceived so as to
obtain answers to research question and control variance.


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There are three types of research design system.

Exploratory Research
Descriptive Research

Casual Research

Among the above mentioned types Exploratory research
design has been chosen. Thus research design is basically exploratory in nature. In
exploratory research no earlier model as a basis of the study is used. The most usual reason
for using this approach is that researcher doesnt have a choice. Exploratory research means
that hardly anything is known about the matter at the outset of the project. Researcher then
has to begin with a rather vague impression of what should be studied, and it is also
impossible to make a detailed work plan in advance. The main goal was to gather
preliminary data from the market by means of survey thereby to shed light on the real nature
of the problem and to suggest the feasible remedy or some innovative idea.

In this research study there was cause and effect relationship among different variables. The
problem was identified; secondary data was also analyzed to ensure the accurate problem
solving. Solutions to some gray areas, which were not revealed by secondary data, were
found out by resorting to primary data.

As the company was facing the challenge of low sales revenue in the store, catchment
analysis was carried on. Further, customer feedback survey, together with brief
demographic analysis helped to form the idea about the potential market as well as the
purchasing habits of the residents in the core catchment. Based upon the data that was to be
collected for research study questionnaire was prepared. All together two questionnaires

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73
were prepared. One was targeted towards demographic profile of the residents and the other
was meant to know the customer feedback with respect to their overall experience while
visiting the store. Further, detailed analysis of the sales revenue data for past forty five days
was carried on followed by benchmarking with the other stores in the pune region. This
secondary data was procured from the companys Decision Support System (DSS).

Thus, findings from the primary & secondary data were clubbed together; Primary data was
supported by secondary data wherever necessary. It was verified for validity and then
classified, arranged and presented in proper format for interpretation. Finally after analyzing
the data and studying different trends, recommendations were made.

6.2.2 Research Approach:

The major objective of the study was to design the marketing & assortment
strategies to improve the sales revenue. To achieve the aforesaid objective, catchment
analysis (geographic survey) was carries out followed by demographic survey &
interview of the households & survey of the customer feedback. Also the sales revenue
data was obtained from companys Decision Support system & benchmarking exercise
with respect to sales performance across the various categories among the existing store is
carries on. So the research approach was focused more towards exploring the ingredients of
sales performance by collecting primary data & exploring secondary data.

Primary data can be collected through observations, surveys and
experiments. Although there are other sources but these are the major ones. These are
various means to get the information. Under observation method, primary data is collected

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74
by observing people, processes or certain other phenomenon. Actions and situations can be
observed openly as one view his face in mirror. This can be used to gather information that
people are unwilling or unable to provide. But this method is infected by limitation, as every
situation may not prove to be supportive for observation purpose. On the other hand
experimental research is the best way to collect causal information. But for this particular
project the required information being descriptive, it was collection of primary as well as
secondary data. For the catchment analysis, observation method was used, where as for the
customer feedback & demographic survey, personal interview technique was used.
Surveys are divided into four types;
1. Structure Survey
2. Unstructured Survey
3. Direct Survey
4. Indirect survey
Structure surveys are formal list of questions asked to all respondents in the without any
change in the questions whereas in case of unstructured surveys the interviewer probe the
respondent wherever required and guide the interview depending upon the answers. In the
direct surveys, researcher asks direct questions to know the relevant information based upon
the research topic and in indirect surveys, the questions asked are of open ended type in
order to dig out the required information which otherwise may had remain beneath the
surface as in case of direct surveys.

In the present research study the survey method used was the combination of all the four
methods described above. Each of the above method was used as per the situation and the
information to be collected fro the prospects.


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Survey is often the only method used in any research study so it definitely enjoys certain
advantages over other methods. The main advantage is its versatility. It can be used to
obtain a variety of information quickly and at lower cost. But to avail this advantage of
survey method of research it is very important to design the approach on some guidelines or
some constructive basis. For the same reason certain tools were used. The main research
instruments used were Questionnaires and Interviews.

6.2.3 Research Instruments:
Various research instruments are,
1. Questionnaire
2. Mechanical device
3. Electrical Device
4. Electromechanical device
5. Simulation
6. Projective Techniques
7. Interview
! Personal Interview
! Mail Interview
! Telephonic Interview
During the research, following research instruments were used:
Questionnaire:
Questionnaire is a structured sequence of questions designed to draw out facts and opinions
and which provides a vehicle for recording the data. Questionnaires serve four purposes; the
first and primary role is to draw accurate information from the respondents. Second, they

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76
provide they provide structure to the interviews that helps comparability and assessing the
overall picture. The third purpose of questionnaires to provide a standard form on which
facts, comments, and attitude can be recorded. This recording avoids distortion of facts.
Fourth and finally, questionnaire facilitate data processing. Questionnaires can be structure,
semi structured or unstructured.
There was a structured questionnaire designed appropriately for the
customers in the store & for the households in the catchment of Mukund nagar area in pune.
The questions asked were relevant, non ambiguous, properly sequenced and brief enough to
encourage the respondent to give factual and precise information with least judgment.

Interviews:
It involves face to face interaction with customers at their factories and offices. It is a
flexible research instrument and can be used to collect large amount of information.
Interviews can be conducted by electronic medium as well but accuracy and time element
has to be taken care of. In the present study only person interviews were conducted of the
selected households in the target catchment & the customer service associates (CSAs).

6.2.4 Sources of Data:
Data collection is the heart of all market research. Data constitutes the subject matter of
analysis. The entire scientific process of measurement, analysis, testing and inferences
depends upon the availability of relevant and accurate data.
Primary and Secondary Data:
Data is primarily of two types:
1. Primary data

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77
2. Secondary data




Primary data is a data gathered for the first time. Researcher must thoroughly search
secondary data sources before commissioning any efforts for collecting primary data.

Primary Data:
Researchers are often tempted to plunge into primary data collection by means of
experiments, surveys, and observations, etc. However it is not pragmatic to collect primary
data, without exploring the available secondary data. Primary data is a fresh data collected
by researchers first hand.

Collection of Primary data:
Primary data can be collected through market surveys & customer survey. The provider of
primary data is known as respondent.

A respondent may give response passively or actively. When response is gathered through
the mere observation of respondents behavior, he is said to provide it passively. When he
gives response through written or spoken response, he is said to provide it actively.

During the research, primary data was collected through various sources like
Observation method For Geographic Analysis
Questionnaire For Customer Feedback & Demographic survey

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78
Interview of the selected walk-in customers, Customer Service Associates at Reliance
Fresh store, shopkeepers, watchman of the societies


Secondary Data:
Secondary data may be defined as that data which has been collected earlier for some
purpose other than the purpose of the present study. Secondary sources of data provide a
wealth of information to the researcher.

Sources of Internal Secondary data:
Business firms always have a great deal of internal secondary data with them. Sales
statistics constitutes the most important components of secondary data in marketing and
researcher uses it extensively. All the output of the DSS of the firm generally constitutes the
internal secondary data. This data is readily available; researcher gets it without much time,
effort and money.
During the research, the major source of secondary data was companys DSS system.

Sources of External Secondary data:
Publications of wide variety provide a good deal of external secondary data. Newspapers,
magazines technical journals, trade publications, directories, government publications,
committee reports, reference books, balance sheets of companies and syndicated and
published research reports by various MR agencies are sources of external secondary data.
Secondary data can also be purchased in some cases from commercial marketing research
services.

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79
Only when both internal and external secondary data is insufficient for the purpose of the
research, efforts needs to be made for collecting relevant primary data.



6.2.5 Sampling:

Diagrammatic representation of the sampling techniques.


















Fig-14: Diagrammatic representation of sampling technique

Sampling Technique Used: Non-probability Convenience Sampling
Sampling techniques
Non probability
Sampling Techniques
Probability Sampling
Techniques
Quota
Sampling
Convenience
Sampling
Judgmental
Sampling
Simple
Random
Sampling
Systematic
Sampling
Stratified
Sampling
Cluster
Sampling
Multistage
Sampling

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Sampling used was non-probability convenience in nature. The reason being customers &
the households selected were subject to their willingness & access in various societies.
A non-probability sampling technique is the one that attempts to obtain a sample of
convenient elements. The selection of sampling units is left primarily to the interviewer.


Explanation
1. It is a form of Non-Probability sampling.
2. It is mainly used for Dipstick studies. This type of sampling is normally used to get
basic information to take elementary decisions.
3. Convenience samples are often used in exploratory situations when there is a need to get
only an approximation of the actual value quickly and inexpensively.
4. Commonly used Convenience samples are associates and the man on the street. Such
samples are often used in the pre-test phase of the study, such as pre-testing of a
questionnaire.

Sample Size:
Sample size was reasonably sufficient for the customer feedback survey & relatively small
for the demographic survey.

Sample Population Residents of pune
Sample Frame Residents of Mukund nagar area, Pune
Sample Unit Individual customer of Reliance fresh store
Individual household in Mukund nagar area, pune
Sample Size Individual Customer 83 Nos

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81
Individual Household 32 Nos

Data Analysis technique: Simple inferential statistical techniques like Data tabulation,
classification, graphical presentation etc.
Preparation of Report: Based on the Research methodology, researcher prepared a report.











LIMITATIONS








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82



LIMITATIONS OF THE STUDY:
Some limitations were due to assignable causes and some were due to random causes.
Assignable causes are attributable to a specific function but the random causes were out of
control. Some of the Limitations during the execution of Research Study were,
! A sample size of 83 numbers for the customer feedback survey & 32 numbers for
the demographic survey may be insufficient to represent the population under study.
Further, Some of the respondents didnt reply to selected questions mentioned in the
survey form.
! The study could have been more comprehensive had not the limitation of two
months of time been there.
! Casual approach was observed for some respondents while collecting the primary
data.
! Sample size chosen for the demographic survey was relatively small in numbers (
due to the restriction & constraints to get access in the societies) & the feedback
collected from the customers was subjected to the sampling errors.
! Due to limitation of the time, competitive analysis could not be carried out.
! Due to the fact that the study was undertaken during the heavy monsoon season in
pune, the constraints of accessibility to the respondents & quality of the feedback
were relatively higher.



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83










DATA ANALYSIS AND DATA INTERPRETATION











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84

8.1 CORE-CATCHMENT ANALYSIS (Geographic)
Objective: To study the catchments geographic diversity within the area of 2 Kms. From
the location of the Reliance Fresh store of Mukund nagar, Pune.
Methodology: Personal Visits on two wheeler for couple of hours on the date 11/6/07 at
afternoon.
PARTICULARS REMARKS
Location

About 0.5 Kms. From the Swargate Bus-stand, pune

Direction

Door faces the main road South facing

Level

G+1 level, Approachable through stairs

Frontage

About 35 Ft.

Total Area of the
store

About 5300 Sq Ft.

Commercial Shops

Immediate Neighbors:
1) Koutons Ready made mens apparel store
2) Spencer (RPG Group) The retail store offering the F&V,
FMCG, home-appliances & ready to eat Indian fast food
3) Choupal (ITC Group) Offering Fresh Fruits & Vegetables at
competitive prices.
Opposite to the store is Shops, ( 5 no.), offering the hardware
products
& transparent glass sheets of various sizes & thickness Run
mostly on the whole selling business.
Major Distant Neighbors:

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85
1) The Entertainment zone 3 D
2) Apparel shops Local as well as branded like Peter
England
3) Company Show rooms Reebok , Nike, etc.


Catchments
geographic profile



The Mukund nagar catchment can actually be divivded in to two
parts, based on the construction development hierarchy.
( A ) Southern part ( B ) Northern Part



(A) Southern Part :
1) The southern catchment comprises of the old generation
societies, bungalows & commercials most of which built
about 15-20 years ago.
2) They are located till the distant of about 0.50 - 1 kms. From
the main road & the access to these interior part is through
lanes, congruent to each other & totaling to about 9.
3) On the visual inspection & visit, the ration of societies &
apartment is roughly 3:1 mostly evenly distributed ( With
an exception of two lanes comprising totally bungalows).
4) Continuing on point-3 above, the total estimated size of
household is 1200 Nos. (60 Societies * 20 flats on average)
& that of bungalows is 60-70.
5) Most of the population seems to be marathi community (
Feed back is based on the conversation with local fruit
vendor, kirana shop owner, observation of the name plates by
the random sampling method.

( B ) Northern Part:

1) The northern part of the catchment has been developed very

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86
recently & rapidly.
2) It majorly comprises large socities & bunglows. To mention

( a ) Sujay Garden (b) Kumar Puram ( C ) Laxmi Villas ( D )
DSK Chandradeep
3) All these are located at a distant of about 0.75 kms. From the
store With an exception of Sujay Garden just in the
vicinity of store.
4) The estimated total household strength of these four
societies is about ( 11 storeyed * 4 flats/floor * 7 buildings
* 4 societies ) 1250 & that of bungalows is about 20 ( sujay
Garden). (The exact strenghth would be with the deviation
of 10%)
The majority of the household comprises the gujarathis &
marwaris (about 60-70%) , followed by the
Marathis.(Feedback based on the past knowledge &
personal experience
Vehicular Traffic

Based on the personal observation on 10
th
& 11
th
Of june for 6-7
hours ( Sunday & Monday)
1) The traffic movement is continuous through out the day.
2) It is maximum the evening, high in morning.
3) There is enough parking place for cars & vehicles, with the
total parking area admeasuring to about 8-10 thousand square
feet.
4) The commutation of shopper is
About 60 % - through two-wheelers
About 15-20 % - through cars
5) Remaining By Walk




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87



INTERPRETATION OF CATCHMENT ANALYSIS

Summary &
Comments on
Findings :

1) The total household size of the catchment is about 3000-3500
& that of bungalows is about 100. So total minimum target
customer is about 15000.
2) The approach to the store is very much convenient through
main road with enough parking space.
3) The store is distinctly visible while going through main road.
4) There is a need to study the occupancy rate of flat in the
southern part.
5) Geographically, In the absence of any general
commercials, around the store ( eg. Medicine, cinema,
stationery, general merchandise), people need definite
motive to come to store at any particular time.


Table-9: Core catchment Analysis



















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88




Catchment Analysis Competition



As can be seen from the photograph, the
approach of the Reliance fresh store
(under study) is shared by Spencers (of
RPG group), an established name in the
modern retail segment & offering similar
product mix as of Reliance fresh store. .


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89


Choupal is modern retailing channel
of
the well known ITC group. It shares
the very premises of Reliance fresh
store & shares the very positioning of
the Reliance fresh Fresh fruits &
vegetables.







TruMart although not a strong
player in the competitive market,
definitely gains the advantage of the
nearness & accessibility to the target
catchment.



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90





Aadarsh super Shoppee, coupled
with M/s Sane Brothers are the two
local kirana vendors, who have very
strong rapport & hold on the local
customers. The winning point is that
they are in the same premises of the
target households. They surely are
nearest competitor followed by the
other organized retailer.

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91


Shown here is the SKC mall, situated at
a distant of about 3 kms from the
reliance fresh store, which will very
soon house to more retail chain of
Birla group.






























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92

Market Yard: The whole Sale Grocery & F&V market
:







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93








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94










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95



DEMOGRAPHIC ANALYSIS:
Total number of respondents: 32 numbers
Methodology: 1) Personal visits for geographic analysis.
1) Study of the history of the area development & kind of people
2) The feedback of residents of societies (selected on random basis), hand-
cart vendor, security personnel of the societies.
3) Personal conversation with the Customer Service Associates of the Real
Estate developer & Feedback of the store CSAs at the Mukund nagar
store.













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96

Mother Tongue of the Respondents:
MOTHER TONGUE Nos.
GUJARATHI 6
KANADDA 1
KONKANI 1
MARATHI 11
MARWARI 9
OTHER 4
MOTHER TONGUE
6, 19%
1, 3%
1, 3%
11, 34%
9, 28%
4, 13%
GUJARATHI
KANADDA
KONKANI
MARATHI
MARWARI
OTHER

Fig-15: Mother tongue of the respondents
From the above data tabulation, it can be interpreted that the demographic profile of the
residents is of healthy mix of various community. The largest one being Marathi (34%),
followed by Marwari community (28%).



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97

What is your Occupation?
OCCUPATION Nos.
BUSINESS 14
SERVICE 14
SELF-OCCUPIED 3
OTHER 1

OCCUPATION
14 , 44%
14 , 44%
3 , 9%
1 , 3%
BUSINESS
SERVICE
SELF-OCCUPIED
UNKNOWN

Fig-16: Occupation of the respondents
Out of the total respondents, 88% of them follow Business & Service as an occupation,
shared equally (44% each). The percentage of Self-occupied respondents is very less.
Unknown states that the respondent has not defined specifically any source of income.



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98


Are you a vegetarian or Non- vegetarian?
Nos.
VEGETARIAN 26
NON VEGETARIAN 6

VEGETARIAN /NON VEGETARIAN?
26, 81%
6, 19%
VEGETARIAN
NON
VEGETARIAN

Fig-17: Vegetarian or Non vegetarian?
The number of the respondents who are Vegetarian, is a clear majority (81%). It indicates
the strong preference towards the vegetarianism. The store therefore should be very
precautious before introducing any section related to Nonvegetarian or Egg-contained items
as it affects the perception about the store for the vegetarian community..

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99
What is your Purchase Frequency of Wheat & Rice ?
Nos.
MONTHLY 16
YEARLY 16
PURCHASE FREQUNCY OF WHEAT AND RICE
16, 50% 16, 50%
MONTHLY
YEARLY

Fig-18: Purchase frequency of wheat and Rice
It can be interpreted from the above graph that the purchase frequency of Wheat & Rice
among the respondents is divided equally for Monthly & Yearly. The learning for the
company is that if the household purchases & stores the wheat & rice for a year, it would
definitely would like to touch, feel, check the quality of the same & also would like to get
assurance & confidence of the quality from the merchant. Further, the fact that the
wholesale grocery market is very near to the store, (about 3 kms.), makes the task even
more challenging for the store managers to provide the right product mix.


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100
here do you purchase grocery from?
FROM Nos.
KIRANA SHOP 15
MARKET YARD 7
SUPERMARKET 7
WHOLE SALE MARKET 3
PURCHASE OF GROCERY FROM -
15, 47%
7, 22%
3, 9%
7, 22%
KIRANA SHOP
MARKET YARD
SUPERMARKET
WHOLE SALE MARKET

Fig-19: Source of grocery purchase
47% of the respondents replied that they purchase grocery from the local kirana vendors.
This feedback itself is good enough to indicate the strong foothold of the local shopkeepers.
About 22% of the respondents relied that they purchase grocery from the Market yard
punes wholesale grocery market. An equal 22% of the respondents replied that they
purchase grocery from the supermarket (organized retailers). The company should try to
create the awareness among the existing market by proper marketing & communication
mix.

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101

Where do you purchase Fruits & Vegetables from?
SOURCE Nos.
HANDCART VENDORS 5
KIRANA SHOP 10
MARKET YARD 7
SUPER MARKET 10
PURCHASE OF FRUITS & VEGETABLES FROM -
5, 16%
10, 31%
7, 22%
10, 31%
HANDCART VENDORS
KIRANA SHOP
MARKET YARD
SUPER MARKET

Fig-20: Source of purchase for Fruits & Vegetables
About 31% of the respondents purchase the fruits & vegetables from local shopkeepers.
Surprisingly, Handcart vendors account for only 16% . The reason being the opening of the
modern retail stores in the recent past that provides better F & V assortment mix at a
competitive price & with greater advantage. About 31% of the respondents purchase F & V
from the modern retail outlet. This is definitely a motivating signal for the modern retailers
in the Mukund nagar area.

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102
What is your approximate monthly expenditure on grocery?
MONTHLY EXPENDITURE ON GROCERY ( Rs.) Nos.
<500 7
500-700 3
700-1000 7
1000-1500 4
>1500 11
MONTHLY EXPENDITURE ON GROCERY
7, 22%
3, 9%
7, 22%
4, 13%
11, 34%
<500
500-700
700-1000
1000-1500
>1500

Fig-21: Approximate monthly expenditure on grocery
About 56% of the household surveyed stated that their monthly expenditure on the grocery
segment is below 700/- Rupees. In partial, it indicates the probable diet pattern the
household has. However, the store must try to create the new demand rather than taking the
numbers a the guiding force,


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103
INTERPRETATION OF DEMOGRAPHIC SURVEY:
Particulers Remark
History of Area
Development

1) The area was developed mostly on one-side of the road
(southern) about 15-20 years ago, with the majority
comprising of marathi community.
The northern part went through sudden rapid development in
last 3 years & comprises large societies, bungalows,
commercial shops, malls & company outlets.
Resident History of
the Target
Customers

Southern Part:
1) As mentioned above, dominated by local Marathi
community, settled about 15 years ago.
2) Mostly proper Bramhin caste, followed by south Indians.
3) The later interior part comprises slums & grey-collar job
workers.
Northern part:
1) Dominated by first generation of gujarathis & marwaris ,
followed by second generation of marathi families.
2) They all are relocated from their earlier places, which were
mostly in or close to the pune city areas like nanapeth, rasta
peth, guruwarpeth, timbermarket, bhawanipeth, etc.
Occupation

1) Most Marathis have service as an occupation.
2) Most Gujarathis & marwaris are engaged in traditional
Businesses ranging from the wholesale supplier of the food-
grains, dry-fruits, timber merchant, steel supplier,
manufacturing and/ or retailing of cloth, readymade
garments, gold merchant, supplier of construction related
material., which is carried on since more than 3 generations.


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104

Family Size

The average family size for gujarathi & Marwari ranges
between 5 -6 members /family & that of Marathis is 4
members.

Education
1) The young generation of the catchment is well educated.
2) Marathis in the area are occupying high designations in govt
& private companies, most of them is in technical or
production field.
3) Earlier, gujarathis & marwaris did prefer to join the family
business at the cost of formal education. However, the
Gen-x definitely gives importance to higher education &
majority of them pursue a specialized course after their
graduation.
Income

1) Based on the feedback & personal estimation, the average
income for the Sothern part would be about 35000/per month
& that of northern part would definitely be more than that.

2) The most of the flat owners in the northern part on the long
term loan basis.
Living & Spending
habits

1) Modesty is the hall-mark of these catchments.
2) They are very conscious of the public image, society &
religion.
3) People prefer to spend on the area of priority.
4) Savings are given more preference as precautionary
motive.
5) However, living standards are maintained consciously at any
cost to maintain the image in community & society.


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105


Customer
psychology &
purchasing Habits
Customer Psychology:
1) The marathis are known for their particularity &
preference to local vendors for purchasing day-to-day needs.
The family is Nuclear after the marriage.
2) For Gujarathis & Marwaris, insistence to receive the best at
least cost & is inherited since upbringing of a child. Cost is
the most important factor while purchasing any
article/goods.
3) The general impression to the above mentioned segment is
that the malls & the like are for exclusive to rich class & the
cost of general merchandise is very high.
4) For purchasing the items like pulses, food-grains, spices etc.
they do have a typical customer psychology to verify the
smell, size, make, etc. through personal experience,
introspection & verification.
5) Unlike the upper-class people, they prefer to have a personal
(one-to-one) conversation for vendors feedback to support
their purchasing decisions.
6) They have strong association with the customized local
brands & products.

Purchasing Habits ( For daily consumption ):
Marathi
1) For Marathi community, purchasing is done in a bit as &
when required.
2) The general tendency is to purchase from the nearest vendor.
3) The purchase is fragmented & very content.
4) They are very strict on diet & health conscious. The quantity
of food required for daily consumption is relatively less,
however, use of spices & salad is heavy.

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106
5) Purchasing of the day to day requirement is done by the
housewife together with the child (probably to train them).
6) The preferred time of vegetable & grocery purchase is the
evening & done in a relatively large group of neighbors.
7) Ladies prefer to take the brisk sleep at the afternoon &
preferred purchasing time is afternoon for the apparels &
appliances & evening for the day-to-day consumable items.
8) The percentage of members above the age of 50 is relatively
higher.

Gujarathi & Marwari

1) They are prone to shopping & love to spend the time on
outing & entertainment.
2) The general tendency is to purchase the day to day
household requirements through local vendors, as they
deliver flexibility of information, negotiation, credit & home
delivery.
3) Men hardly involve themselves in day-to-day purchasing
affairs & majority of the decision is taken by
housewife/mother-in-laws.
4) They do have good control over Impulsive shopping.
5) They are extremely price sensitive.
6) Vegetable & fruits are purchased mostly through hand-cart
hawkers & for fruits, the male purchase it from the place of
their business/shop or Market Yard
7) Items like that of Dhania, Jira, Mirchi, Haldi, are purchased
at a peculiar season during a year (only once or twice) &
stored for a year in jars.
8) Cereals like chanadal, mungdal, Turdal, rice, etc. are
purchased mostly from the local market at a competitive rate.
9) The personal reference plays very important role in

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107
purchasing decisions related to grocery, where as actual
purchasing is done in a small group of 2-3 neighbors.
10) The young generation hardly is involved in the day to day
purchasing of household, however, they have developed
tendency to hang-out in the evening & like for Indian fast-
food & instant food & snacks.
11) The quantity of food required for daily consumption is heavy
due to large family size & upbringings. Requires full thali
while lunch & dinner.
12) The percentage of women/housewife engaged in a job is very
negligible.
CONCLUDING REMARKS ON THE DEMOGRAPHIC SURVEY:
Summary &
Comments on
Findings :
1) Unlike other catchments, the profile of the target customer is very
much different, as most of them are domestic residents & not
migrated from outside the city. So, the knowledge about the
product quality, price & value is very much known to them.

2) There is a closed community tie-up & hence, the reference plays
very important role to market the products & services ( viral-
marketing).
3) There prevails extremely price sensitiveness among the targeted
customers due to their historical background.
4) The very positioning of Reliance fresh is shared with the nearest
competitor Choupal (of ITC). With a good & updated knowledge
about the pricing of F & V , groceries etc., the majority of the
customers does selective purchase based on the value
(quality/pricing) from various stores & shops.
5) In the southern part, the immediate competitor is M/s Sane &
Shriram provision stores, which has established strong personal
rapport with the customers while offering similar
6) The average family size for southern part is not more than 4 & for
northern part, it is about 5.

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108
7) The core competitors are not the supermarkets but rather the
Traditional general stores & wholesale F & V market ( Market
yard/Mandai) .
8) The current shoppers hail from even as far as the area like
dhankawadi and bibwewadi (about 4-5 Kms. From the store
location), which may turn to nearest supermarket of competitor or
Reliance Fresh.
9) Most of the household in northern part purchases Wheat & rice
once a year & in the southern part, it is purchased once evry month
( as & when required) & the spices are purchased once or twice a
year in a raw form & then stored for usage after the necessary
finishing processes.
Table: 10: Interpretation of Demographic survey
Customer Feedback Analysis
Customers are the most prime & important source of information. Reliance Retail has been
established with the philosophy of Grahak Devo Bhava- Customer is God. The objective
to conduct the customer survey was dual.
- To understand the customer profile of the reliance fresh customers
- To get their feeback about the overall experience at the reliance fresh stre at
Mukund nagar area.
This is the first hand comprehensive report on the feedback of the customers with respect to
their overall experience while shopping at the Reliance Fresh, Mukund nagar store, Pune.
Also, it includes the personal comments on the observation in the store based on the
personal attendance at the store for about 20 days during the month of JUNE-07.


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109


Objectives:

The objective of this exercise is

1) To get the first hand feedback of the customers, while shopping at the store
2) To find their purchasing habits.
3) To find out the % of the customers from the core catchment area, visiting the store.
4) To find out the unmet requirement of the customers.

Methodology:

1) The questionnaire is designed keeping in mind the objective to be met as mentioned
above.

2) The researcher collected the feedback of the customers during the period 20
th
June
07 to 30
th
June 07. Sometimes, the help of the CSA available on the floor is also
taken.

3) The due care is taken to receive the feedback at various days & time in a week &
from the varied customers so as to attain as much near representative picture as
possible of all the customers feedback.

4) Due diligence & care is taken to go beyond the questionnaire & also interpret what
customers want to say rather only than what they say & accordingly tick mark the
right choice.





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110

Please write the PIN code of your residence.
Nos.
PIN 411037 ( Target Catchment ) 41
From Other Catchments 42

% of Customers from the Target Catchment
41, 49%
42, 51%
PIN 411037 ( Target
Catchment )
From Other Catchments

Fig-22: Percentage of customers from target catchment
The percentage of the customers from the target catchment is 49% & the rest from distant
catchment. Customers from the distant catchment are floating customers as they will turn to
the nearest Reliance Fresh store, once it comes up in/near their catchment. The detailed
probe of the data of Reliance one card holder a part of the Loyalty programme must be
conducted to find out their locality.


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111

How did you come to know about the store?
Nos.
DISPLAY 41
FRIENDS 20
NEIGHBOURS 11
RELATIVES 11

How Did You come to know about this store?
41, 50%
20, 24%
11, 13%
11, 13%
Display
Friends
Neighbour
Relative

Fig-23: Source of information about the store

The percentage of the passerby is high who walk in the store. This interpretation raises the
need to have effective promotion programme. Further, the awareness about the existence of
the store will be created only upon the increase in number of frequent visits.




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112


When do you prefer to visit the store?
Nos.
Afternoon 18
Evening 29
Morning 30
Night 6



Fig-24: Preferred time to visit the store

About 70% of the purchase is done in morning & evening. Looking at this statistics, the
marketing & promotions of the products & offers can be done during the high rush hour.
Further, if the product wise purchasing performance is analyzed it may help to frame even
more niche strategies of the in-store sales promotion.

Prefered time Of Visit to the Store
18, 22%
29, 35%
6, 7%
30, 36%
Afternoon
Evening
Morning
Night

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113

How many times in a week do you visit the store?
Nos.
Once 46
Twice 24
Thrice 4
More than Thrice 9

Frequency of Vistis in a Week
46, 55%
24, 29%
4, 5%
9, 11%
Once
Twice
Thrice
More than Thrice

Fig-25: Frequency of the visit to the store in a week

About 85% of the respondents visit the store not more than twice it means the frequency of
repeat customers is very low. Probable Reason may be that more than half belong to non-
core catchment. This ultimately results in the lower footfall & lower sales.



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114


What is your mother tongue?
Nos.
Marathi 49
Gujarathi 8
Marwari 14
others 12

Community of the Customer
49, 59%
8, 10%
14, 17%
12, 14%
Marathi
Gujarathi
Marwari
others

Fig-26: Mother tongue of the respondents

About 60% of the customers surveyed belong to marathi community, followed by Marwari
(17%) & Others (14%).The percentage of the marwari respondent is 17%.
This data supports the point no. 3 that the store is failing to attract the customers from the
core catchment as they share the dominance of Gujarathis, Marwaris & then Marathis.


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115


Mostly for what purchasing do you visit the store?
Nos.
Consumer Goods 9
Fruits & Vegetables (F & V) 58
Monthly Shopping 5
Weekly Shopping 11

Mostly what do you visit the store for?
9, 11%
58, 70%
5, 6%
11, 13%
Consumer Goods
Fruits & Vegetables (F & V)
Monthly Shopping
Weekly Shopping


Fig-27: Primary shopping purpose to visit the store

About 70% of the respondents gave a feedback that they visit the store for the purchase of
Fruits & Vegetables (F &V), followed by 13% who visit the store for Weekly shopping &
11% for purchase of fast moving consumer goods. About 6% of the respondents visit the
store for monthly shopping.


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116


Mostly how do you come to store?
Nos.
By Car 10
By Rickshaw 7
By Two wheeler 41
By Walk 25

How do You Come to Store?
10, 12%
7, 8%
25, 30%
41, 50%
car
richshaw
two wheeler
walking

Fig-28: Means used to visit the store

It can be interpreted from the above graph that maximum number of the respondents (50%)
approach the store by two wheeler, followed by about 30% who visit the store by walking-
which may represent the customers from the target catchment. The percentage of the
customers in the survey who visit the store by car & rickshaw is 12% & 8% respectively.




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117


What is the approximate billing time that you experience?
Nos.
2 - 5 38
5-10 7
<2 36
>10 2

Aproximate Billing time (Minutes)
38, 47%
7, 8%
36, 43%
2, 2%
2 - 5
5-10
<2
>10


Fig-29: Approximate billing time taken

Majority of the respondents (47%) gave a feedback that they had to stand for approximately
2-5 minutes in the till before their turn came for billing. About 43% of the customers
surveyed said that they had to stand for less than two minutes before they were billed.
About 10% of the respondents experienced more than five minutes for their billing.



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118

Please rate the Freshness, varieties & Quality of Fruits & Vegetables.

Nos.
Good quality - low varieties 34
High quality & varieties 47
Poor quality 2


Freshness, Varieties & Quality of F & V
34, 41%
47, 57%
2, 2%
Good quality - low
varieties
High quality & varieties
Poor quality

Fig-30: Rating of freshness, varieties & Qualities of Fruits & Vegetables

On interpreting from the above graph, it is seen that about 57% of the customers surveyed
gave the feedback that the F & V are of high quality & varieties, while 41% were satisfied
with quality but not with the varieties. About 2% of the respondents replied that the F & V
are of poor quality.




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119

Do you find the parking while visiting the store?

Nos.
Mostly no 2
Mostly yes 12
No 8
Yes 61


Do you find the Parking While visiting the store?
2, 2%
12, 14%
8, 10%
61, 74%
Mostly no
Mostly yes
No
Yes

Fig-31: Whether find parking on visit to store

About 74% of the customers surveyed gave a feedback that they find the parking on every
visit, while about 14% said that they mostly find the parking on visiting the store, whereas
2% of the respondents mostly not find the parking place where as 10% of the respondents
dont find the parking on visiting the store.


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120

How do find the prices as compared to other stores?
Nos.
Higher 5
Lower 31
Same 40
Very low 7

Prices as compared to other stores
5, 6%
31, 37%
40, 49%
7, 8%
Higher
Lower
same
Very low

Fig-32: Price perceived as compared to other stores

About 49% of the respondents dont feel the difference in the pricing mix offered by the
store whereas 37% of them find the prices lower than other stores. 8% of the surveyed find
the price very low than other superstores & about 6% of the respondents gave a feedback
that the prices are higher than the other stores.




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121


Please rate the ambience of the store.
Nos.
Average 2
Excellent 59
Good 21
Unsatisfactory 1

Please Rate the Ambience of the Store
2, 2%
59, 72%
21, 25%
1, 1%
Average
Excellent
Good
Unsatisfactory

Fig-33: Rating of the ambience of the store

72% of the respondents found the ambience excellent, followed by 25% who gave a
feedback that the ambience of the store is good. 2% of them said that the ambience is of
aver rage quality, 1% were not satisfied with ambience, hence gave the feedback as
unsatisfactory.


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122
Please rate the behaviour of the staff.
Nos.
Prompt 73
slow response 8
Unavailable 1
unaware about products 1


Behaviour of the Staff
73, 88%
8, 10%
1, 1%
1, 1%
prompt
slow response
unavailable
unaware about products

Fig- 34: Rating of the behavior of the staff

Most of the respondents -88% gave a positive feedback for the staff as prompt, while 10%
of those who surveyed said that the staff is slow in response. 2% of those who surveyed
found the staff is either unaware about the products or unavailable when required for
assistance.



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123
Please rate the atmosphere while shopping.
Nos.
Congested & Humid 9
Spacious & Comfortable 72
Very crowdie 2


Atmosphere While Shopping
72, 87%
2, 2%
9, 11%
Congested & Humid
Spacious & Comfortable
Very crowdie

Fig-35: Rating of the atmosphere while purchasing in the store

It can be interpreted from the graph shown above that about 87% of the respondents were
satisfied with the atmosphere while having a shopping in the store & hence rated the same
as Spacious & Comfortable. About 11% of the respondents said that atmosphere is
congested & Humid, while the rest 2% of them gave the feedback as Very crowdie.




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124

Could you locate the items in the store?

Nos.
Locate with difficulty 3
No 8
Yes 72

Could you locate the items in store?
3, 4%
8, 10%
72, 86%
Locate with difficulty
No
Yes

Fig-36: Easiness to locate the items in a store

Majority of the respondents ( 86%) gave a feedback that they could locate the items in the
store. Meaning, that the product arrangement on the shelves was satisfactory. While 10% of
those surveyed could not locate the items easily in the store, 4% could locate the items with
difficulty i.e. they had to either search for it or had to take assistance of the staff.




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125


Could you find all the items you were looking for?


Nos.
No 10
Yes 73

Could you find all items you were looking for?
10, 12%
73, 88%
No
Yes

Fig-37: Experience of complete shopping

About 88% of the respondents gave a feedback that they found all the items they had come
to purchase in the store. While the rest 12% could not find all the products they were
looking for.




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126

Would you recommend others to visit our store?
Nos.
Definitely No 1
Definitely Yes 74
Probably No 1
probably Yes 7

Would you Recommend others to visit our store?
1, 1%
74, 90%
1, 1%
7, 8%
Definitely No
Definitely Yes
Probably No
probably Yes

Fig-38: whether would recommend others to visit the store

About 90% of the respondents gave the feedback that they would definitely recommend
others to visit the Reliance fresh store. While about 8% of the respondents said that they
would probably recommend others to visit the store, 1% each gave a feedback to the
question as probably no & definitely no.





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127



Would you visit the Reliance fresh store again?

Nos.
Probably Yes 4
Yes 79
No 0
Probably No 0

Would you Visit the store again?
79, 95%
0, 0%
0,0%
4, 5%
Probably Yes
Yes
No
Probably No

Fig-39: Whether would visit the store again

It can be interpreted from the above graph that a whopping 95% of the respondents have
shown their desire to visit the store again as a repeat visit, Where as the rest 5% gave the
feedback as probably yes- indicating the sign of uncertainty or dissatisfaction. None of the
respondents gave a negative feedback about their desire to have a repeat visit to the store.

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128



We should introduce more products in
We should Introduce more Products in...
4, 12%
13, 40%
10, 30%
6, 18%
Dairy products
F & V
Foods & Beverages
Instant Foods

Fig-40: Recommended segments to introduce more products in

Although, totally only 33 respondents replied to these question, the findings were as below.
About 40% of the respondents suggested to introduce more product varieties in the F & V
segment, followed by Foods & Beverages section (30%). 18% & 12% of the respondents
suggested to introduce more products in the Instant food & Dairy products section
respectively.





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129




Average Family Size = Sum total of the members in the households surveyed
Number of households surveyed
= 152 / 32
= 4.75 members per family (Approximately)

Average Age = Sum total of the ages of the members of the household surveyed
Sum total of the members in the households surveyed
= 3569 / 152
= 23.42 (Approximately )













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130
Summary of the Remarks given in the feedback form by the individual customers:
1 Improve Billing time
2 Dettol;Shampoos;Buds;Veg Cake
3 display board at the entrance
4 Drinking water for customers
5 everything is good
6 FMCG - eg colgate powder, dermicool etc are not available
7 FMCG goods are not available in a wide range
8 frozen mutter & dry coriander are not available
9 Fruits are costly
10 Good
11 Good keep it up. Prices of grocery are high
12 Imported fruits & FMCG should be more in food & non food
13 instant food
14 Its good
15 Its good. Jain Cake & Fresh Battar be introduced
16 Its Great
17 Introduce jain masala & spices
18 keep signages properly
19 Keep sufficient change in the cash counter. Keep corelac honey & dipers of large size
20 lemon is not good
21 Lichi & Pomagranate are not available
22 more variety in grocery section
23 mostly, products are 'out of stock'
24 Music while shopping
25 Music while shopping
26 Music while shopping
27 quality of vegetable is poor
28 Should keep eggless cake
29 should keep signages at each section; jain section
30 Soyabean 200 gm - 7/- & 500 gm 25.50/-
31 Staffservice is poor; NIRMA powder is Not Available
32 Start giving discounts like subhiksha & trumart
33 store is really good
34 want more variety in biscuit section
35 want more variety in fresh fruits
36 want stationary products
37 your store is better than other reliance fresh stores in pune
Table- 11: Summary of the remarks given by customers

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131







Benchmarking exercise of the categorywose sales performance of the
Mukund Nagar Store in comparison with the other existing stores
based on the data available through DSS for the period 1
st
May 2007
to 18
th
June 2007.
Objectives:
(1) To analyse the detailed performance of the store
(2) To ascertain the hypothesis that Mukund nagar performance of the sales is weak in
general.







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132
Product SBU Product Segment Store
1193 -
as % of
the
total
SBU
across
all the
stores
1195 - as
% of the
total
SBU
across all
the stores
1196 -
as % of
the
total
SBU
across
all the
stores
1199 -
as % of
the
total
SBU
across
all the
stores
1202 - as
% of the
total
SBU
across all
the stores
1195 -
as a %
of the
best
perform
er
FOOD
FRESH FRUITS &
VEGETABLES
FRESH FRUITS 9 10 28 26 27 37
FRESH VEGETABLES 9 10 22 31 27 34

OTHER FRESH
PRODUCE
11 10 22 29 29 34
FRESH FLOWER 100 - - - - -
Result 9 10 25 28 27 37

FOOD &
BEVERAGE
SERVICES
BAKERY 15 9 25 23 27 32
BATTER & CHUTNEY 20 5 37 7 32 13
Result 16 8 26 22 27 31
BEVERAGES DRINKS 11 16 26 20 27 61
HEALTH DRINKS 12 16 17 32 24 50
JUICES 10 10 27 25 29 35
TEA & COFFEE 12 13 17 35 23 37
Result 11 13 22 28 26 47
DAIRY DAIRY - CHILLED 10 11 19 23 36 32

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133
DAIRY - FROZEN 16 16 22 21 25 63
DAIRY - PROCESSED 8 10 25 20 36 29
DAIRY - STAPLE 13 15 25 23 24 58
DAIRY - SUBSTITUTES 8 11 28 19 34 32
FRESH MILK 13 6 24 16 42 13

FRESH MILK PRODUCTS 11 11 22 21 35 30
Result 11 12 22 22 33 37
NON VEGETARIA EGG 14 - 22 27 38 -
Result 14 - 22 27 38 -

CONFECTIONARY
& SNACKS
CONFECTIONERY 13 16 21 20 30 54
SNACKS 12 16 25 22 26 61
Result 12 16 22 21 28 56
PROCESSED FOOD
BISCUITS & BRANDED
BAKERY
13 18 21 27 21 65
READY TO COOK 12 15 21 25 26 60
READY TO EAT 11 15 20 28 26 51
Result 12 16 21 27 25 58
STAPLES DRY FRUITS 15 12 21 28 24 45
EDIBLE OILS 13 14 19 30 24 45
FLOURS 13 11 19 28 28 39
PULSES 13 15 19 28 25 52
RICE 12 13 22 26 27 48
SALT 13 16 19 29 24 54
SPICES & MASALAS 12 13 18 28 28 47
SUGAR 12 13 18 30 27 43
WHEAT 14 21 13 37 16 57
Result 13 14 19 29 25 47

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134

FROZEN VEG. /
SNACKS
FROZEN VEGETABLES 11 16 17 17 39 41
FROZEN SNACKS 13 11 22 18 36 30
Result 12 14 18 17 38 37
Result 11 12 23 27 27 44
FMCG -NONFOOD HOME CARE
HOUSEHOLD
CLEANING/CARE
12 15 19 30 24 50
HOUSEHOLD ENERGY 12 14 30 27 17 48

INSECT/PEST/ALLERGEN
CONTROL
11 12 22 27 28 44
Result 12 15 19 30 25 49
PERSONAL CARE HAIR PRODUCTS 10 15 22 28 25 52

PERSONAL HYGIENE
PRODUCTS
11 14 21 30 23 47
SKIN PRODUCTS 9 15 21 32 23 46
Result 10 15 22 30 24 49
BABY CARE BABY FEEDING/HYGIENE 9 14 15 30 34 40
Result 9 14 15 30 34 40
Result 11 15 21 30 24 49
HOME
FURNISHINGS &
DCOR
FURNISHINGS 15 19 21 19 26 74
Result 15 19 21 19 26 74

HARDLINES CARPENTRY - 86 14 - - 100
ELECTRICAL - 79 21 - - 100
PAINTS - 100 - - - 100
Result - 80 20 - - 100
HOUSEWARE COOKWARE 26 16 24 17 17 60
KITCHENWARE 24 15 19 19 23 62
TABLEWARE 15 17 21 31 17 54

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135
HOUSEHOLD HARDS 17 13 21 24 25 50
CLEANING AIDS 16 19 14 26 25 74
HOUSEHOLD DISPOSABLES - - 100 - - -
Result 20 14 22 22 23 61
Result 18 18 21 20 23 79
LIFESTYLE COSMETICS AROMATHERAPY 18 12 30 24 16 39
LIFESTYLE SKINCARE 10 15 25 32 18 46
Result 11 15 25 31 18 47
FRAGRANCES PREMIUM MENS FRAGRANCE - - - 100 - -
VALUE MENS FRAGRANCE - 13 24 44 18 30
FRAGRANCES - 12 26 45 17 27
Result - 13 25 45 17 28
Result 3 13 25 41 17 32
APPAREL &
LUGGAGE
LUGGAGE PERSONAL BAGS 28 7 26 26 13 26
Result 28 7 26 26 13 26
Result 28 7 26 26 13 26
PHARMACEUTIC
ALS
HEALTH OTC - 23 11 25 41 55
Result - 23 11 25 41 55
Result - 23 11 25 41 55
Not assigned Not assigned Not assigned 13 13 21 32 21 100
Result 13 13 21 32 21 100
Result 13 13 21 32 21 100
Overall Result 11 13 23 28 27 45

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136
SUMMARY OF INTRA-STORE BENCHMARKING:
PRODUCT SBU PRODUCT CATEGORY Sales Performance of the Stores ( %)
1193 1195 1196 1199 1202
Total
Sales(Rs.)
1195 - As a % of
Best Performing
Store
FOOD
FRESH FRUITS &
VEGETABLES
9 10 25 28 27 5,345,643 37
FOOD & BEVERAGE SERVICES 16 8 26 22 27 230,616 31
BEVERAGES 11 13 22 28 26 857,172 47
DAIRY 11 13 22 28 26 857,172 47
NON VEGETARIAN 11 12 22 22 33 1,069,670 37
CONFECTIONARY & SNACKS 14 - 22 27 38 125,347 -
PROCESSED FOOD 12 16 22 21 28 360,810 56
STAPLES 12 16 21 27 25 948,815 58
FROZEN VEG. / SNACKS 13 14 19 29 25 2,435,253 47
Result (FOOD) 12 14 18 17 38 141,067 37

FMCG -NONFOOD HOME CARE 12 15 19 30 25 764,703 49
PERSONAL CARE 10 15 22 30 24 1,160,061 49
BABY CARE 9 14 15 30 34 54,050 40
Result (FMCG-NON FOOD) 11 15 21 30 24 1972101 49

HOME FURNISHINGS & DCOR 15 19 21 19 26 84,202 74

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HARDLINES - 80 20 - - 35,585 100
HOUSEWARE 20 14 22 22 23 169,229 61
Result (HOME) 18 18 21 20 23 253,431 79

APPAREL&LUGGAGE LUGGAGE 28 7 26 26 13 12,059 26
Result (Apparel & Luggage) 28 7 26 26 13 12,059 26

PHARMACEUTICALS HEALTH - 23 11 25 41 48,379 55
Result (Pharma) - 23 11 25 41 48,379 55

Not assigned 13 13 21 32 21 -1,050 100

Overall Result 11 13 23 28 27 13,288,661 45

Table- 12: Benchmarking exercise of the sales performance

Store Code Store Location
1193 RRL Montvert Pune Store
1195 RRL Mukund Nagar Pune Store
1196 RRL Bundgarden Pune Store
1199 RRL Paud Road - 1 Pune Store
1202 RRL Mantra Mall Pune Store

Table- 13: Summary of Intra-store benchmarking

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138

Data Interpretation remarks on -
Benchmarking exercise of the category wise sales performance of the Mukund Nagar Store in comparison
with the other existing stores based on the data available through DSS for the period 1
st
May 2007 to 18
th

June 2007




1) The % contribution of Mukund nagar Store, across all the categories, is below average (Per square feet contribution as a base) as
compared to other stores. As can be seen from the table below, only Pharmaceuticals are performing relatively good as compared to
others. Please refer table 2 for the details.
Category
1195 - % Share of the Total Revenue in that
category for all the stores
PHARMACEUTICALS 22
HOME 18
APPAREL&LUGGAGE 17
FMCG NONFOOD 15
LIFESTYLE 13
FOOD 12

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2) Further, while benchmarking with the best performing store in that category, the nearest figure is 76% (For the HOME Category.
The rest all the categories are below the 50%. Meaning that the Mukund nagar does not contribute even 50% of the best performing
store in that category. Pls refer Table ______ for the details.


Category 1195-with Benchmark (%)
HOME 76
APPAREL&LUGGAGE 58
PHARMACEUTICALS 50
FMCG NONFOOD 48
FOOD 44
LIFESTYLE 32

3) At Mukund nagar store, FOOD category is accounting only for about 12% of the total revenue in that category as compared with
the other stroes (of about same size), which attracts double the collection.


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4) Mukund nagar contributes marginally low in the category of FOOD , where as leads in the FMCG-Non food category. Pls. refer
the table below.


Category
Percentage of the contribution of each category to the total revenue of
that store
Store Code 1193 1195 1196 1199 1202
FOOD 82.73 79.83 84.40 81.74 84.07
FMCG -NONFOOD 12.62 15.21 12.32 14.65 12.70
HOME 4.43 6.18 7.31 7.90 8.11
LIFESTYLE 0.15 0.82 0.84 1.18 0.56
APPAREL&LUGGAGE 0.07 0.04 0.03 0.03 0.01
*PHARMACEUTICALS - - - - -
* Pharma accounts very negligible to the total sales in the stores.


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5) While comparing the total contribution of the category across the store, only two items counted Health (22%) & Furnishing & decor
(21%). Rest all the items are falling in the range of 15%, which is dismally low taken in to account the size & relative contribution of
the other stores. Please refer table ______, column 6.

6) The FOOD & NON-FOOD collectively accounts for about 14% of the total sales took for the month of MAY, in that category
combinely, which is still very low. Please refer table -________.



SALES PERFORMANCE OF MUKUND NAGAR STORE FOR THE PERIOD 1st May to 18th June 07.
Objectives:
1) To analyse the performance of the sales across the product families & to find out the % share of the product SBU & Product
Segment.
2) To associate & validate the claims of the demographic profile of the catchments with the interpretation of this report



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142
Rs. % % % %
Product SBU Product Segment Store
1195 (
Mukund
Nagar
Store,
Pune )
Performance
in that
product
segment
Performance
of Product
Segment in
that product
SBU
%
contribution
of SBU from
the total
revenue
1195 -
as %
of the
total
SBU
across
all the
stores
FOOD
FRESH FRUITS &
VEGETABLES
FRESH FRUITS 985,342 50 10
FRESH VEGETABLES 929,165 47 10

OTHER FRESH
PRODUCE
51,958 3 10
FRESH FLOWER - -
Result 1,966,465 41 10

FOOD &
BEVERAGE
SERVICES
BAKERY 68,302 3 9
BATTER & CHUTNEY 2,359 3 5
Result 70,661 1 8
BEVERAGES DRINKS 108,649 27 16
HEALTH DRINKS 89,672 22 16
JUICES 81,849 20 10
TEA & COFFEE 126,891 31 13
Result 407,061 8 13
DAIRY DAIRY - CHILLED 126,025 32 11
DAIRY - FROZEN 72,243 18 16

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143
Rs. % % % %
DAIRY - PROCESSED 53,680 14 10
DAIRY - STAPLE 79,670 20 15
DAIRY - SUBSTITUTES 10,514 14 11
FRESH MILK 10,752 3 6
FRESH MILK PRODUCTS 39,357 10 11
Result 392,240 8 12

NON
VEGETARIAN
EGG -
Result - - - -

CONFECTIONARY
& SNACKS
CONFECTIONERY 130,450 64 16
SNACKS 72,700 36 16
Result 203,150 4 16

PROCESSED
FOOD
BISCUITS & BRANDED
BAKERY
199,636 36 18
READY TO COOK 168,840 30 15
READY TO EAT 185,685 34 15
Result 554,160 12 16
STAPLES DRY FRUITS 61,411 5 12
Rs. % % % %
EDIBLE OILS 374,284 33 14
FLOURS 93,589 8 11
PULSES 205,701 18 15
RICE 129,426 11 13
SALT 12,318 1 16

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144
SPICES & MASALAS 128,191 11 13
SUGAR 66,966 6 13
WHEAT 72,968 6 21
Result 1,144,855 24 14

FROZEN VEG. /
SNACKS
FROZEN VEGETABLES 39,068 74 16
FROZEN SNACKS 13,649 26 11
Result 52,717 1 14
Result 4,791,308 100 79 12
FMCG -NONFOOD HOME CARE
HOUSEHOLD
CLEANING/CARE
329,534 88 15
HOUSEHOLD ENERGY 4,094 1 14

INSECT/PEST/ALLERGEN
CONTROL
40,629 11 12
Rs. % % % %
Result 374,256 39 15
PERSONAL CARE HAIR PRODUCTS 189,259 34 15

PERSONAL HYGIENE
PRODUCTS
180,972 32 14
SKIN PRODUCTS 193,379 34 15
Result 563,610 59 15
Rs. % % % %
BABY CARE BABY FEEDING/HYGIENE 21,692 100 14
Result 21,692 2 14
Result 959,558 100 16 15

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145

HOME
FURNISHINGS &
DCOR
FURNISHINGS 62,536 100 19
Result 62,536 31 19
HARDLINES CARPENTRY 5,000 14 86
ELECTRICAL 30,219 85 79
PAINTS 367 1 100
Result 35,585 18 80
HOUSEWARE COOKWARE 32,974 32 16
KITCHENWARE 4,237 4 15
TABLEWARE 3,011 3 17
HOUSEHOLD HARDS 59,678 58 13
CLEANING AIDS 3,385 3 19

HOUSEHOLD
DISPOSABLES
- -
Result 103,285 51 14
Result 201,406 100 3 18
LIFESTYLE COSMETICS AROMATHERAPY 1,196 9 12
LIFESTYLE SKINCARE 12,094 91 15
Rs. % % % %
Result 13,290 28 15
FRAGRANCES
PREMIUM MENS
FRAGRANCE
- -

VALUE MENS
FRAGRANCE
12,760 38 13
FRAGRANCES 21,025 62 12

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146
Result 33,785 72 13
Result 47,075 100 1 13
APPAREL &
LUGGAGE
LUGGAGE PERSONAL BAGS 3,191 100 7
Result 3,191 100 7
Result 3,191 100 0.05 7
PHARMACEUTICALS HEALTH OTC 26,758 100 23
Result 26,758 100 23
Result 26,758 100 0.44 23
Rs. % % % %
Not assigned Not assigned Not assigned (1,050) 100 13
Result (1,050) 100 13
Result (1,050) 100 (0.02) 13
Overall Result 6,028,246 100 13




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147
From the data analysed from the sales performance of the Mukund nagar store,
following interpretation is made.
(1) The "FOOD" category in the store contributes maximum to the tune of 79%, out of
which, Fresh fruits & vegetables account for about 41%.
(2) The percentage share of the "FOOD" of the mukun nagar store across the total revenue
generated in that SBU is meagerly 12%.
(3) from the analysis of the performance of "FOOD" section. it can be interpreted that the
percentage share of "staples" in food - product segment is 24%., followed by processed
food (12%) & Beverages & Dairy accounting 8% each.
(4) For Mukund nagar store, relatively best performing product segment for in the FOOD-
product SBU across all the store is "Processed food" & "confectionery & Snacks",
which accounts for about 16% each.
(5) FMCG-non food account for about 16% in the total sales revenue of the Mukund nagar
store, however, the percentage share out of the total sales revenue across all the store for
the same is about 15%.
(6) Among FMCG-non food, "personal care" segment is the highest contributor with 59%
share.
(7) "Apparel & Luggage" segment in the FMCG-non food category is the lowest performer
in terms of the sales performance in rupee & in the percentage share as well.
(8) The contribution of the product segment - "Lifestyly", "Pharmaceuticals" & "Apparel &
Luggage" is very minimal in the total sales revenue of the Mukund nagar store for the
aforesaid mentioned period.



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148











OBSERVATIONS & FINDINGS













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149

Observations & findings from Catchment Analysis:

1) The total household size of the catchment is about 3000-3500 & that of bungalows is
about 100. So total minimum target customer is about 15000.
2) The approach to the store is very much convenient through main road with enough
parking space.
3) The store is distinctly visible while going through main road.
4) There is a need to study the occupancy rate of flat in the southern part.
5) Geographically, In the absence of any general commercials, around the store ( eg.
Medicine, cinema, stationery, general merchandise), people need definite motive to
come to store at any particular time.
6) The existence of the organized player to get the pie of the same core catchment of
the company, enforces the need to have a sustainable competitive advantage over
others.

Demographic analysis:

1) Unlike other catchments, the profile of the target customer is very much different, as
most of them are domestic residents & not migrated from outside the city. So, the
knowledge about the product quality, price & value is very much known to them.
2) There is a closed community tie-up & hence, the reference plays very important role
to market the products & services ( viral-marketing).
3) There prevails extremely price sensitiveness among the targeted customers due to
their historical background.

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150
4) The very positioning of Reliance fresh is shared with the nearest competitor
Choupal (of ITC). With a good & updated knowledge about the pricing of F & V ,
groceries etc., the majority of the customers does selective purchase based on the
value (quality/pricing) from various stores & shops.
5) In the southern part, the immediate competitor is M/s Sane & Shriram provision
stores, which has established strong personal rapport with the customers while
offering similar benefits & services as modern retailers.
6) The average family size for southern part is not more than 4 & for northern part, it is
about 5.
7) The overall living style & eating pattern is very modest.
8) The core competitors are not the supermarkets but rather the Traditional general
stores & wholesale F & V market ( Market yard/Mandi) .
9) The current shoppers hail from even as far as the area like dhankawadi and
bibwewadi (about 4-5 Kms. From the store location), which may turn to nearest
supermarket of competitor or Reliance Fresh.
10) Most of the household in northern part purchases Wheat & rice once a year &
in the southern part, it is purchased once evry month ( as & when required) &
the spices are purchased once or twice a year in a raw form & then stored for
usage after the necessary finishing processes.

Observations & findings from Customer Feedback Analysis:

1) Based on the one-to-one conversation with the clients, the overall customer experience
has been found above average.
2) Most of the customers visit the store for F & V section.

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151
3) There is a good amount of customer transition from Choupal to Reliance fresh & vise
a versa.
4) The store layout is good, however, the western part of the store is very much
Underutilized in terms of space & the footfall to FMCG-non food section is only
about of the total footfall.
5) Many of the day-to-day consumed SKUs like that of Parle biscuits, poha, frozen green
piece, etc. were out of stock for consecutive days.
6) In F & V, the indenting of some items must be done cautiously so as to reduce the
obvious high dumping. Fixing of the accountability & reporting on the specific CSA
in both the shift in each category will improve the operational efficiency & reduce the
chances of Out of Stock.
7) The floor CSA staff has been found very customer friendly & polite. However, the
frequent practice to make the group & chat while on duty can be discouraged. Further,
to go collectively for lunch & tea break without any planning is a frequent practice
observed, that ultimately results in excess load in existing till & undue billing time for
customers.
8) The most immediate need is to analyze the details of the temporary reliance one
members, who are shopping currently at a store. This would let the management know
about the customers from the core catchment & their purchase frequency.







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152
Observations & findings from Sales Performance Analysis:

1) From the data analysis of the Mukund nagar store, it is clearly interpreted that the
store is performing very poor relative to other stores of the equal or smaller size.
2) Although some of the SKUs & product segment is performing well, their
percentage contribution in terms of monetary aspect & in absolute term is not
significant.
3) Fruits & vegetable segment is the highest contributor t o the overall business of the
Store, proving the positioning right for the company.

















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153











CONCLUSION













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154

Conclusion:
Thus in this way the researcher has applied the theoretical & practical knowledge of market
analysis so as to develop the long term sustainable marketing & assortment strategies for
Reliance fresh store at Mukund nagar, Pune. Although market analysis in the retail business
is very time consuming & arduous exercise requiring large human, monetary & information
resource, an attempt has been made to collect the data & information from all possible
authentic means so as to explore the sector in depth.

The growing share & volume of the organized retail in the total retail business in India is
tempting many national & international business houses to enter in this lucrative market, but
it will not be easy to change the traditional purchasing habits & spending patterns in the
country of diverse geography, culture, dialects & traditions.

The importance of careful market analysis is that it will help the retailer to become
localized & help to understand the need, potential, & wants of the target market. Further, it
also helps to build long term sustainable strategies with respect to product, price, place &
promotion of the store. After executing the market analysis of the store, framing the right
marketing & assortment strategies became very appropriate.

Following noteworthy conclusions were drawn from the whole research study.

$ The geographic location of the store is very strategic & has no accessibility
problem. However, there is a tough competition among the organized players of

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155
the industry in the catchment to get the biggest pie, making the battle of market
share more challenging.
$ The current demographic profile of the catchment is affluent, educated, modest,
and follower of traditions.
$ Company has been failing to generate the inclusive environment of shopping for
the customers.
$ The store is not localised but rather standardized. This may be the key factor
in less monthly average footfall.
$ By following the need-based model, the competitors have been able to find the
various revenue generating models, which is not followed by the Reliance fresh
strore under study.
$ Most of the customers have given positive overall experience during the store
visit, but the share of the repeat customers & customers from the target
catchment is relatively low.
$ The share of some of the product segment & SKUs is very good, however, due
attention is not given in absence of any data crunching. Further, purchase
requisition and mark-down process in the store have got a good scope of
improvement.
$ Unlike competitors, who are aggressive in promotions, because of the company
policy, store has been lagging behind to attract a price sensitive customers.
$ If the due care is given to tracking the stock levels, mark-down, purchase
requisition & dumping process, & keeping the right assortment mix, store sales
revenue can definitely improve.



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156











RECOMMENDATIONS













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157


RECOMMENDATIONS:
Recommendations are primarily with respect to suggesting necessary marketing &
assortment strategies to improve the sales revenue after market analysis exercise is carries
out.

Suggested Marketing Strategies:
The following suggested marketing strategies are based upon the former work done with
respect to the project & in addition, after the detailed analysis & observation at the
competitors immediate & distant. It deals individually with each of the challenges faced
by the store i.e. Low footfall, Low ticket size, low per-capita purchase & slow movement of
some of the categories.

So, overall marketing strategies deal with the following objectives:

1) To increase the awareness among the target catchment about the existence &
awareness of the offerings from the reliance store
2) To recognize & reward the loyal customers so as to stimulate their esteem.
3) To devise means by acting as solution provider rather than just facilitator.
4) To design means to stimulate repeat purchase & increase the per capita ticket size.





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158

SUGGESTED MARKETING STRATEGIES
Suggestion Remark
To enhance the
product offerings as
per the need of the
target customers

a) On the basis of the geographical & demographical analysis &
concluding remarks, the offerings have to be customized to a
great extent. The store still is not able to generate the
inclusive environment, & hence, the environment has to be
made more of the traditional nature than that of exclusive
nature. It is highly recommended to visit the Apna Bazaar at
market yard for the designing & assortment offerings.

Real time
communication with
the customers

a) As the store has reasonably large data about the
customers, residing in the core catchment, the bulk
messaging service can be utilized to communicate any
promotions/offers running in the store. This will keep the
brand refresh in the memory of customers.
b) Announce the offers in Hindi & English as sychologically
pays more attention to that & looks like an offer. This
announcement must be done by experienced announcer.
c) Further, rather than displaying the offers on the boards,
keep the offer charts in the board Value Deals or
display the same at various section in F & V.

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159

Provide Add-on
Values not just
products i.e. Solutions

To win the customer psychologically, the need is to provide add-
on values to the customers which will be high in terms of value to
customers but low in cost to the company. In this respect, an idea
to distribute the small leaflet, containing important information,
like that of cooking recipe, childcare information, education info,
imp telephone nos. etc This although low-cost to the company,
would help to differentiate compared with the competitors.
Cooking Program for
the Reliance
customers

Monthly cooking classes can be held FREE OF COST for our
loyal customers after short listing them based on their earlier
purchase & no. of visits. This will help to create the awareness
about the add-on benefits to purchase at reliance store & may
help to become TIPPING-POINT in the groups-especially ladies.
the communication of the same must be made through the mobile
sevice (SMS)
Concept of Super
Value Hours

Introduce the concept of Super Value Hours, during which,
exclusive promos & offers are run in the store for limited time
period. The objective behind this is

a) To increase the repeat customers visit

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160
b) To get differentiation distinctly in a bold way
To Facilitate the
purchase

It is also suggested to facilitate the purchase to customers in the
store by providing them the a broad list of the items to be
purchased under each category eg. Pulses ( dals, rice, etc.),
processed food ( sauce, biscuits, etc.) & so forth. keep the list of
the items in brief category, so as to remind the customers even
before shopping. This will have dual advantage that
a) Rather than adhoc- unorganized shopping, we will be able
to help them more organized & pre-defined
b) This will slowly, but steadily convert the customers
daily shopping in to weekly & weekly in to monthly.
c) This is small improvement over the existing system,
benefits of which will be very powerfull to the company
in the long term.

The SKU size of
assortments of some
categories

Based on the personal analysis of the customer purchasing habits
& the demographic analysis of the target catchment, it is
suggested that store must keep assortments under various product
bricks of reasonably smaller size/quantity. Reason for this is that
as the demographic profile of the target catchment is very
specific, & hence, to influence them to take the advantage of low
risk while buying any NEW TO THEM product. This may also

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161
help to tackle the issue of the low turnover sales in certain SKU.
Customized &
Friendly environment

It is also suggested to make the internal environment of the store
more customer friendly by customizing it on various occasions of
the catchment customers. This will help to create long term
relationship with the customers & would create a loyal customers.
(Eg. ENIL- Radio Mirchi in pune)

To Increase the
awareness

a) Distribution of leaflet through paper insertions, containing
the information about promotions & offers not of the
regular processed food but rather the introduction of the
new sections as mentioned in the assortment mix
strategies.
b) There may be awareness campaign to reach out the
remote area of the catchment (especially southern side)
through the mobile van marketing.
Table- 15: Suggested Marketing Strategies


Suggested Assortment Strategies:
Assortment refers to the type of products, product range & varieties available in the store.
The following suggested assortment strategies are based upon
1) The sales performance benchmarking exercise of Mukund nagar store with other
stores ( DA & DI ).
2) Demographic analysis of the catchment

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162

SUGGESTED ASSORTMENT STRATEGIES
Sr. No, Suggestion Remark
1


To Differentiate
introduce new sections.

1) JAIN SECTION
2) UPWAAS SECTION
3) DIABETIC SECTION
4) AAROGYAM SECTION

2
Assortment under each
section as follows.



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163
JAIN SECTION
As mentioned in the geographic & demographic
analysis of the catchment, there is remarkable majority
of the target customers, who follow Jain religion,
which has guideline of very content nature of eating.
Many of them dont eat root veg or any associated
products. This clearly is an opportunity for the
company to differentiate & win this customers by
intrioducing very brief but exclusive section JAIN
SECTION, where in all the items, which otherwise are
available for the non-jain customers, would be made
available to JAIN customers, in case they are looking
for it. After the due research & interaction with the key
society people, following assortment is suggested to
keep at the store.
a) The whole range of the instant processed recipe
like JAIN paneer tikka, Jain sambhar masala,
etc. (Rasoi Magic infact has introduced
exclusive variety for them)
b) Jain Sauce ( Eg.: Surbh sauce. Maggie Jain
sauce)
c) Athana Mirch
d) Banana chips & wafers in various variants
e) Masal puri ( eg: Haldirams range)
f) Instant Upma Mix ( Eg: MTRs upma mix)

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164
g) Bhadang
h) Jain Shigdana Chatni
i) Jain Cake (Milk Maid)
j) Khari ( Milk maid)
k) Kkakara ( about 20 varieties)\
l) Laxminarayan Chiwada\
m) Jain Jelly ( Weikfield)
n) Jain Sabudana ( Eg. Dolphin)
o) Chakari
p) Jain Toast
q) Jain Bhakarwadi
r) Khadke Chikki/ Rajgira wadi
s) Bhajki Sauf
t) Small low-value mint
u) Hanuman/Rajasthan/Lijjat papad
v) Jain Bread
w) Paav-Bhaji & Dabeli Paav
x) Vicco-toothpaste
y) Soonth (Ayurvedic)
z) Rajgira wadi
aa) Jain Sambhar & Punjabi masalas.
bb) matchbox



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165
UPWAAS SECTION
As mentioned in the demographic analysis remarks,
another most important target customer have a very
religious Marathi background. They do follow the
Upwaas once/twice a week. The store currently hardly
carries any items to serve them. It is therefore
suggested to introduce this section to distinctly cater
their need.
a) Sabudana Chiwda
b) Sabudana Wada
c) Potato Shev
d) Potato papad
e) Mirgund
f) Upwaas Bhel
g) Shingdana Laadu
h) Khajur Laadu
i) Upwaas Biscuits
j) Varai
k) Dahi ( Curd)



DIABETIC
SECTION
As the name itself suggest, this section would cater
specifically for the customers who are diabetic or
prone to that. In the personal interaction with the
customers, there was implied need to have a following

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166
items to cater the diabetic people.
a) Biscuits
b) Confectionaries
c) Low sugar instant sweets
d) Sugar Free
e) Low sugar health drinks etc.

AAROGYAM
SECTION

AAROGYAM section would in brief cater to the self-
content eating habit people. The word AAROGYAM
of Sanskrit means Health. So, this may overlap with
Diabetic Section & in additions all those eating items
of day-to-day consumprion nature can become part of
it. Eg . Low Fat/Zero fat items, Low calories item,
Low sugar/sugar free items, etc.

3

Remarks for
assortment mix
based on the DA &
DI of the category-
wise sales
performance.


From the DA & DI of the sales performance of the
Mukund nagar store in various product bricks, it is
suggested the following.
a) Put great emphasis on the HOME CARE
Section by introducing more products. The
personal feedback, after analyzing the
assortment of the local merchants,is that the
store does not cater more than 20% of the

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167
pertinent need of the customers in this HOME
CARE Category. Eg:- Duster, toilet cleaning
brush, spray bottles, floor & dinning table mats,
keychain tool, phenyl, ropes, etc. The list
actually is very large. This would give less
reason to the customers to visit their nearby
kirana vendors.

b) After studying the customer purchasing habits
of various category, following is the remarks.
- F & V ---% Resonably good assortment
- For staple As most of the purchasing is
done in the wholesale & not fragmented, the
catchment people prefer the same to buy from
the Market Yard in the whole-sale rate.
Therefor, either the store should match the
price range offered by the traditional
wholesaler or should try to avoid the
unnecessary stacking of the same.
- Beverages-% Either offer them reasonably
cool beverages or reduce the beverage
inventory
-Confectionary --% Introduce more varients of
breads, Pav-Bhaji paav etc.

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168
-Personal,oral,skin care ---- > To enhance the
sale, need is to study the redesigning of the
layout.
-Snacks -% Introduce more local well known
snacks having trust of qualiy with reasonable
price.
- Dry-fruits ---- > As the relative prices are observed to
be unreasonably higher (although having justified
reasons), it is suggested to keep the inventory of this
section very reasonable after establishing moving
average method.
4 Concluding Remarks

a) Although many of the items mentioned above
finds less relevance interms of sales generation,
they help in a major to provide the solutions
under one roof & helps the store to reduce their
customers visits to the nearby local general
stores. Its not desirable to give reasons to
customers to visit the competitors.
b) After the due detailed verification of the
customer buying patterns, It is suggested to
provide products more in the customized form
rather than product per-se.
1) The idea behind suggesting the four

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169
section (Point 1) is that it distinctly
caters to the specific customers & thereby
helps to create the clear positioning.
2) It also differentiates the store from that of
competitors.
3) It gives the Inclusive feeling to the
customers as compared with her/his
earlier shopping experience.



Table-16: Suggested Assortment strategies

Other Recommendations:
1) There is ample scope & need to train the tilling staff in the area of customer
greeting & conversation, maintaining enough change in cash box, to avoid the
repetitive mistake to under/over charging for items not taken.
2) CSAs can be trained to inform certain new products/arrivals/schemes to the
customers looking at their tentative area of purchase.
3) Promotional announcement should be preferred in HINDI, as it is more effective
& receptive by the customers. Further, it should run regularly between 10.00 to
12.00 AM in the morning & 5.00 to 7.00 in the evening. This will have positive
impact on the sales of certain products.

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170
4) There is scope for store FDM to visit the front end of operations at regular
intervals in a day & close observation of the visiting customers & interaction with
them.
5) The most immediate need is to analyze the details of the temporary reliance one
members, who are shopping currently at a store. This would let the management
know about the customers from the core catchment & their purchase frequency.




















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171











BIBLIOGRAPHY













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172


1. References

a) Books


1. Marketing Management, 12edition Philip Kotler
2. Strategic Market Management David Aaker
3. Research Methodology C R Kothari
4. Retail management Swapna Pradhan


b) Websites
1. www.ril.com
2. www.ibef.com
3. www.wikipedia.com
4. www.fabric2fashion.com
5. www.indiabusiness.nic.in
6. www.moneycontrol.com
7. www.indiaretailforum.in
8. www.imagesfashion.com
9. www.atkearney.com
10. www.mcos.com




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173






c) List of Resources

1. Ernst & Young, The Great Indian Retail Story, 2006.
2. FICCI - ICICI Property Services Study.
3. Let gradualism guide FDI in retail, Economist, 2006.
4. AT Kearney, GRDI 2007.
5. Retail scenario most developed in Bangalore, DH News service, According
to Bijou Kurien,
7. CII, Logistics and Freight News, March 2006.
8. KPMG analysis, Consumer markets in India - the next big thing, September
2005.
9. India's changing household, Deutche Bank, November 2004.
10. CII, Manufacturing Bulletin, June 2006.
11. Pharma's retail push, Business Line, 2006.
12. Northbridge Journal, Industry Outlook - Retail, 2006.
13. Express Press release, Consumer durables sector sees pick-up sales in
India, 2006.
14. Price Water Coppers, Asia-Pacific M&A bulletin, Mid year 2006.
15. KSA Technopak, June 2006.




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174


List of Contacts

2.1 List of Customers

Sr
No
Name surname contact no. area society name PIN
1 Pournima bagade 24222023 Bibwewadi Kamalkunj 411037
2 Kulkarni Amey 9850270103 Mukund nagar NivrutiNath 411037
3 nicks sam kothrud
4 Karmarkar Sunila 24479041 Subhashnagar 411002
5 Pande Renuka 24260293 Sahkarnagar 411009
6 shetty shyamala 24263767
7 Bhaktani Ramesh 26350289 Nanapeth 411002
8 thopte ganesh 9850354036 parvati Janta Vasahat 411009
9 jahangir rakeshkumar 9923343238 Mukund nagar sujay garden 411037
10 Madhvi Kokil 24262008 Market Yard AshaPark 411037
11 Sunil Maske 9325562306 BalalajiNagar Godawari 411037
12 Dakle Pratibha 24218805 Market Yard suparshwanath 411036
13 Tahsildar Swati 65701584 Dhankawadi Akshay Garden 411043
14 Mehta Heena 24261678 Salisbury park Homes Land 411037
15 Agarwal Sangeeta 9822434860 Salisbury park Shaan Court 411037
16 Jas Johri 9822534223 Aundh GaikwadNagar 411007
17 Baldota Anita 9890819939 Mukund nagar TMV Colony 411037
18 Kulkarni Sushma 24274400 Gultekdi Punyai 411037
19 Gupta Anuj 9823739018
20 Agashe Pradnya 24492815 Tilak Road
21 Gaikwad Rama Mukund nagar 411037
22 Halan Sharda 9823380297 Dapodi Kundan Nagar 411012
23 Ande Shankar 9421015556 Gultekdi
Shrimarkhand
Soc. 411037
24 Kulkarni Anil 9850045561 Dhankwadi Rajmudra Soc 411043
25 shedge Asha 24219164 Bibwewadi premnagar 411037
26 Dabeer Mahesh 24222119 Sahkarnagar Omkareshwar 411009
27 Agawane Ramling 9326245879 Parvati Janta Vasahat 411009
28 Dhole Dashrath 9226887787 Gultekdi DholeMala 411037
29 Timirani Vijay 24240097 Bibwewadi Gangadham 411037
30 Langote Ujwala 9960956193 Bibwewadi Chandrika 411037
31 Joshi Trupti Bibwewadi rajyog 411037
32 Dugad Payal Mukund nagar Malavu 411037
33 Dhoot tushar 9413524338 nehru stadium Niramaya 411002
34 Kulkarni Sheetal
35 Shonegra Shweta Bibwewadi Kamalkunj 411037
36 Ranawat Hema 32519583 guruwarpeth sreeram aptmt 411042
37 shah pinky 9226112073 kondhwa anandhill view 411048
38 chheda hemraj 9422304729 dhankwadi dumia nagar 411043
39 Heerawala Col. R P camp gurudwara road 411042

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175
40 Ragameshwar Mukesh Mukund nagar sujay garden 411037
41 joshi pankaj 9922939372 Mukund nagar Mahda 411037
42 Gharpure Savita Sahkarnagar mandar 411009
43 Jagtap vilas 9850711123 viththal vadi Annabao sathe
44 Ghodke Rahul 9822849281 khadakpolice line eknath 411002
45 suratwala amit 24226932 maharshi nagar anand 411037
46 shah manisha 24265538 Mukund nagar sujay garden 411037
47 jain rupesh 21117413 Bibwewadi 411037
48 gandhi neha 9325000355 DSK Mukund nagar 411037
49 Rendalkar Gopal 24264087 Mukund nagar s.no.17 411037
50 padal urmila 9850210712 ghorpadepeth Shankarsheth rd 411042
51 shah Beena 9422089828 timbermarket durga co op soc 411042
52 dharia pallavi 24223944 Sahkarnagar 411009
53 shah lalita 24261574 Pune-satara road adinath soc 411036
54 jain preeti 9423571431 timbermarket Kalyan soc 411042
55 shende rangnath 69407127 Gultekdi s. no. 425/36 411037
56 Purandare Sonali 9823030929 Parvati s.no.26 411009
57 Bhagwat Nikhil 24260533 Bibwewadi Bhagyanagar 411037
58 Matekar Prashant 9371221154 Gultekdi s.no. 26 411037
59 Madhve Mrudula 9850856000 KarveNagar Shreenivas
60 Bora Anup 24272389 Maharshinagar Divyashakti 411037
61 Kadekar Sanjeev 24213587 Padmavati mandar 411009
62 Chadha Sahil 24271965 Bibwewadi Vishnu Vihar 411037
63 Avhad Ravindra 9326018575 ShivajiNagar police Colony 411005
64 Phadke Narendra 32520635 MarketYard Manoj Soc 411037
65 Shetty Shobha 24211245 Mukund nagar Sargam Aptmt 411037
66 Jadhav Ankush 9822084623 Padmavati TadjaiMata
67 Bafna Asha Raviwarpeth 411042
68 Shetty Suifha 24269528 Salisburrypark orionResidency 411037
69 Gadia gaurav 9881818127 camp s.no. 2160 411001
70 Kher Sameer 9822302536 Gultekdi Hitoshi 411037
71 Devlapure Anjana 9822753503 Gultekdi Koyna Hsg 411037
72 Kelkar Amit 24261945 Mukund nagar 411037
73 Rajesh Savita 6401428 Walvekarnagar
74 Gavali Sudhakar 24212175 LaxmiNagar s. no. 5/35 411009
75 jain Mamta 9325416072 MaharshiNagar s. no. 25/202 411037
76 Waghmare Pandurang 24263691 Mukund nagar s. no. II / 87 411037
77 Gaikwad Rohini 60206689 parvati Mitramandal 411087
78 G. Ashanthi 24267332 Salisburrypark NABARD 411037
79 Solanki Jeevan 9326274668 Hadapsar
80 Matu Jayant 9371204969 Sadashivpeth Gadrechambers 411030
81 Shah Mahendra 9850884051 Aundh Abhimanshree 411008
82 Jain Nikita Salisburrypark Amrapali 411037
83 Dhavale Shrima 9890066967 Bibwewadi Poonam Park 411037







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176




2.2 List of Household Surveyed


SR NO SURNAME NAME
CONTACT
NO.
SOCIETY NAME
1 RAIKAR NEETA 24265179 DEEPANTALI APMT
2 SHAH CHAYA 4265653 DIPANJALI SOC
3 TOLAT ANJALI 24272500 LAXMIVILLAS
4 LELE MANASI 24273147 ANANDI APMT
5 GHODKE NITA ? RAGHURAM SOC
6 KAJALE SUNANDA 242613189 VIKAS APTMT
7 KULKARNI PRASAD 24265936 ANANDI APMT
8 GOSAWI VRINDA 24274892 VISHRAM KUNJ
9 SHAH SHALINI 30420155 LAXMI VILAS
10 RUNWAL PALLAVI 24270585 RAJLAXMI
11 JAIN RITA 24262709 PARMAR PLAZA
12 JAIN PUSHPA 30480566
SUJAY GARDEN -
VIDHNAHARTA
13 RATHOD UJWALA 9423560571 LAXMIVILLAS
14 PATEL MALA 24267529
SAMARTH APTMT ( TMV
COLONY )
15 JOSHI SUDHIR 9850030250 ANANDI APMT
16 SETHIYA SIMA 24267770
SUJAY GARDEN -
VIDHNAHARA
17 KHEMSINGH PUROHIT ? ?
18 KARNAWAT ABHIJA 30486868
SUJAY GARDEN -
VIDHNAHARA
19 DESHMUKH SUSHRUTA 9822438476 RAGHURAM SOC(TMV)
20 JAIN FUTARMAL 30480732
SUJAY GARDEN -
VIDHNAHARTA
21 BANDE SAROJ 24262147 RAGHURAM SOC
22 SIGHVI VAISHALI 24261094 RAJLAXMI
23 JAIN URMILA 9860143277 PARMAR PLAZA
24 KADAMKAR SHUBHANGI 24266189 RAJLAXMI
25 GODBOLE AATMARAM 24261491
SWARSAMVAD ( TMV
COLONY)
26 PILLAI SHUSHILA 40084106 LAXMIVILLAS
27 JOSHI NITA 24264800 VISHRAM HSG
28 JOSHI SMITA 9822053792 SHWETA APMT
29 SHAH SHEETAL 24266346 LAXMIVILLAS
30 MANIAR KUNJBALA 24267524
SAMARTH APTMT ( TMV
COLONY )
31 AIYENGAR SHAKUNTALA ? DEEPANTALI APMT
32 JETHANI URMILA 9370599361 LAXMIVILLAS


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shashin jain, IIMP Reliance Retail Ltd.
shashin.jain@rediffmail.com


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3. Questionnaires:
3.1 Questionnaire to collect the customer feedback (Customer Questionnaire).

pdfMachine
A pdf writer that produces quality PDF files with ease!
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nearly all Windows platforms, simply open the document you want to convert, click print, select the
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