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A

PROJECT REPORT

ON

RETAIL MARKETING

SUBMITTED BY:-

KUSHAN MISTRY

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Profile of Organization:-

Reliance Group

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest privatesector enterprise, with businesses in the energy and materials value chain. Group's annualrevenues are in excess of US$ 44 billion. The flagship company, Reliance Industries Limited, isa Fortune Global 500 company and is the largest private sector company in India.

Major Group Companies are Reliance Industries Limited (including main subsidiary Reliance

Retail limited) and Reliance Industrial Infrastructure Limited.

The Group's activities span exploration and production of oil and gas, petroleum refining andmarketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles, retailand special economic zones.

Source: http://www.ril.com/

In 2007, close on the heels of successfully launching a series of Reliance Fresh stores, Reliance

retail launched its first hypermarket Reliance Mart in Ahmedabad.

Reliance Mart is a hyper mart which is part of the multi-format stores rolled out under the

Reliance Industries Limited subsidiary Reliance Retail Ltd. Reliance Retail Ltd. was incepted in

2006. Reliance Mart runs on the philosophy of replicating the whole market street in a store. The

first Reliance Mart was launched in Ahmedabad on August 15, 2007. With Reliance Mart the

concept of Mobile POS (Point Of Sale) was introduced in India, in order to reduce customer

wait-time and facilitate faster check-outs. Reliance Retail Ltd. aims at opening over 500 Reliance

Mart hyper marts by the end of 2010. Reliance Marts function from 10.00 a.m. to 10.00 p.m.

seven days a week.

RRL operates several value & specialty formats. The value formats that RRL operates are:

Reliance Fresh, a neighborhood concept, Reliance Mart, an all under one roof supermarket

concept & Reliance Super, a mini-mart concept. The value formats offer a wide range and

assortment of products required for daily household needs. The specialty formats are: RelianceDigital, a consumer durables & information technology concept, Reliance Trends, an apparel

& accessories concept, Reliance Wellness, a health, wellness & beauty concept, I Store by

Reliance Digital, an exclusive Apple products concept, Reliance Footprint, a footwear

concept, Reliance Jewels, a Jewellery concept, Reliance Timeout, a books, music &

entertainment concept, Reliance AutoZone, an automotive products & services concept and

Reliance Living, a home ware, furniture, modular kitchens, furnishings concept.

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Location of Stores

AhmedabadMumbai

BangalorePuneHyderabadFaridabadGurgaonJodhpurTirupatiTiruchirappalliJamnagarRanchi

Corporate Structure

The company board of directors, important executives and other people instrumental to thesuccess of the company.

Board of Directors

Mr. Mukesh Ambani, Mr. Manoj Modi, Mr. Dipak Jain

Mr. Raghu Pillai President and Chief Executive , Reliance Retail Ltd.Mr. Ajay Baijal President Corporate Planning, Reliance retail Ltd.Mr. Manu Kapoor Senior Vice-president Corporate affairs Division, Reliance Retail Ltd.Mr. BijaySahoo Head of Human Resources, Reliance retail Ltd.

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Divisions in Stores:-

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7 ps Service Marketing:-

Product

Reliance Mart offers a wide range of products which starts from apparels to food items, footwear

to home furnishing, crockery to sport items, child care products to toys, watches, drinks etc.

There are many in house brands promoted by Reliance Mart. In pursuance of their business plan

to diversify their portfolio of offerings, FMCG products play a key role.

Price

Reliance Mart promises its consumers the lowest available price. The concept of psychological

discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Reliance Mart also caters on

Special Event Pricing (Close to Diwali, Christmas, New Year, Anniversary of store etc.). Selling

combo-packs and offering discount to customers. The combo-packs add value to customer.

Through Bundling, they also reduced the price of the products. In addition to Reliance Marts

strategy to continue procurement of goods from small and medium size vendors and

manufacturers which leads to cost efficiencies.

The hypermarket would be selling the products on EDLP (everyday low price) basis at prices 15-

20 percent lower than market prices.

In order to grow faster and better in local markets with higher margins, it has focused largely on

local brands instead of national brands or private labels. Local brands include

IndubenKhakrawalasNamkeens,LijjatPapad, WaghBakriand Madhur(spices brand). This is in

addition to 100 private labels that Reliance plans to display. Companys Sources says that the

share of regional brands in the hyper marts would be over 10%.

Place

Reliance Mart has presence in almost all the major Indian cities. They are aggressive on their

expansion plans. Reliance Martintend to increase their penetration in the country by setting up

new stores in cities where they already have presence, as also entering into new areas in the

country. In particular, they intend to focus on expansion in Tier II and Tier III cities. Reliance

Mart target locations with good infrastructural facilities such as proximity for customer, easy

accessibility, provision for water, electricity, parking, security and other basic amenities.

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Promotion

Advertising has played a crucial role in building of the brand. Reliance Mart advertisements are

mainly seen in print media i.e. newspapers, Television and sometime road-side bill-boards.

Reliance Marts category management system is used to plan promotional schemes. They launch

promotional schemes weekly.Apart from general sales promotion, the category manager

formulates promotional plans for slow movers. In addition, to promote sales, they focus on

layout of the stores and positioning, presentation and display of merchandise, in order to appeal

to the customer. Reliance Marts propose to continuously undertake such initiatives to increase

the satisfaction of their customers.

People

The store has over 400 highly skilled and trained customer sales representatives.

Process

Reliance Mart, with 61 check-out counters has for the first time in India introduced the Mobile

POS system for faster check outs. This is aimed at reducing customer wait-time.Reliance

Martwill remain open from 10:00 a.m. to 10:00 p.m., seven days a week.

Physical evidence

Spread across 165,000 square feet of shopping area, Reliance Mart will provide the shoppers a

never-before-experienced shopping delight. The hypermarket will carry a range of over 95,000

products catering to the entire family. Shoppers will have the option to choose from a wide array

of products in every category ranging from fresh produce, food & grocery, home care products,

apparel and accessories, non-food FMCG products, consumer durables and IT, automotive

accessories, lifestyle products, footwear and much more.

The store planning, atmospherics and layout has been designed specifically to provide a

complete solution to the customer.For the shoppers convenience, the store has a cafeteria

providing quality food and beverages for ready consumption, an ATM machine and a consumer

service / membership desk to provide the customer a truly international shopping experience.

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SWOT Analysis:-

Strengths:

High quality, latest in-style products, international shopping experience value for money pricing loyal following Own brand of merchandise, which is both trendy and individualistic. new introductions every week variety of designs and styles exciting mix with a range extending from stylized clothes, footwear and accessories for

men, women and children to well-co-coordinated table linens, artefacts, home accessories

and furnishings.

Well-designed interiors, sprawling space, prime locations, lovely coffee shops add to thecustomers shopping experience.

Weakness:

Needs to expand faster to maintain market share Size of the stores should be increased to stock more products. Targets the middle-class segment. Higher class customers do not prefer west side. Trent limited may not be able operate west side efficiently due to its other operations.

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OPPORTUNITIES:

To survive in todays world globalization is important. Reliance mart have a wideopportunity to go more global to improve and expand its business.

They also have the opportunity to consider more overseas supplier which will actuallygive them cost advantage, rather than suppliers available on a local level.

They also have the opportunity to maximize the use of available technology to improvetheir functioning and to gain competitive advantage.

Threats:

If the unorganized retailers are put together, they are parallel to a large supermarket withno or little overheads, high degree of flexibility in merchandise, display, prices andturnover.

Shopping Culture: Shopping culture has not developed in India as yet. Even now mallsare just a place to hang around with family and friends and largely confined to Window-

shopping.

Cultural Variation leads to variation in merchandise in India at different geographicallocations.

Competition from future group and various other retail stores which are growing rapidly.

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STP of Service Marketing:-

Segmentation

The segmentation has been done based on the Demographic (Age, Gender, Education,Occupation, Income&Marital status), Geographic (Depending on the area where users are heavy

users, nonusers, brand loyal users & switchers) & benefits.The Store itself is segmenting all the different age group of people. The store is also segmentingon the basis of the different income level of the people.

Examples are as follows:

ApparelThe hypermarket also launched a host of Reliances own brands in select categories with

superior quality and affordable prices like First Class, Network, Netplay, Team Spirit and

Sparsh in Mens and Womens Formal / Casual and Ethnic wear, DNM- X in the jeans

category for men and women, Panda for kids clothing and Grip in the luggage section. The

footwear category will carry Zig in formal wear. Hi Attitude for semi -formal, Tosco for

party wear and Monza for the sports enthusiast. There are many products that will be

exclusively available in Reliance Mart stores only.

Household

In its range of kitchen appliances Reliance Mart has a variety of dishwashers, refrigerators, air

conditioners, blenders, chimney and gas stoves, coffee makers etc.

Bakery Items

The store also houses its own fresh bakery, serving hot, off-the-oven bread and bread productsthroughout the day and local savories.

Jewellery Items

Reliance Mart will also sell fine Jewellery and fashion Jewellery as part of its lifestyle section.

TargetingAfter dividing market into many segment it is difficult to target market in organized sectorbecause the kind of investment is been done & kind of profit should be generated.Especially reliance mart has targeted major income groups by providing various segments of

product under one roof.

PositioningIt is not what is done to product but it is what done to the prospect. Successful positioning is thestore must have identity that has some time those advantages must be recognized & value byconsumers.Market positioning based on product differentiation & service provision is central to competitivestrategy of multiple retailers.

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PORTER 5 FORCES MODEL:-

1. The threat of the entry of new competitors:Profitable markets that yield high returns will attract new firms.Especially reliance mart will have the threat of new entrants like Wal-Mart, Macys etc.

2. The intensity of competitive rivalry:It is the major determinant of the competitiveness of the industry.Business will be affected of reliance mart as other competitors have major role in retail sectorlike Big Bazaar, Star India Bazaar.

3. The threat of substitute products or services:The existence of products outside of the realm of the common product boundaries increases thepropensity of customers to switch to alternativesAs there are 95000 & more products in reliance portfolio it is very difficult to maintain & availthe products each & every time so there is marginal threat of substitutes.Also substitute threat reduces of reliance mart as they provide products from local vendors likeInduben Khakhrawala, Lizzatpapad etc.

4. The bargaining power of customers:The bargaining power of customers is also described as the market of outputs.

Very high threat in this scenario as there are other various attractive schemes to customers

5. The bargaining power of suppliers:The bargaining power of suppliers is also described as the market of inputs.

Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be

a source of power over the firm, when there are few substitutes.

Reliance mart has less amount of threat as they purchase items in bulk quantity so they have

power over market

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Consumer Behavioral Patterns:-

The Consume behavioral patterns include the buying process of the consumers.

Stimulus

NeedRecognition

/Problemawareness

Informationsearch

Evaluationof

Alternatives

Purchase

Post-purchaseEvaluationof Decision

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Schemes & offers for customers of reliance mart:-

1. Apparel & footwearBrands like DNM-X, Panda, High attitude, Network, Net play, Tosco etc.

Shop apparel for Rs.1947 & get apparel for Rs.1947 free

Shop for Rs.1000 & get free apparel /footwear of Rs.300

Other various discounts depending on brand

2. LifestyleBelow Mrp on various products (Rakhis, Sports accessories, watches, soft toys, exercise

tools, massage chair)

Parker pen with notebook only for Rs.150 from Rs.285

3. Electronics & small appliances.Brands like Transcend, Godrej, Maharaja, Unistar etc.

Speakers free on purchase of TV

Discounted price on various products (DVD player, Pen drives, Toaster, Microwaveovens etc.)

Also major discounts on auto parts & car accessories.

4. Home ideas (Kitchen ware)Brands like Delux, polka, Eveready, Polyfill, opalware, Thermoware etc.

Bucket only for Rs.89 which Mrp is for Rs.175

Doormat Rs.59 From Rs.149

Also heavy discounts on other products like Dinner sets, lunch box, gift sets, plastic

containers.

5. Home ideas (Furniture)Brands like Ajanta, Kurlon, Casper, Mella, Neo etc.Heavy discounts on Single bed Rs.6990 from Rs.15490.

Double bed with mattress Rs.16999 from Rs.33978

Also attractive discounts on Chairs, Dining set, Sofa set, Bean bag etc.

6. Grocery (Food grains)Brands like Fortune, Ruchis, Himalayan crown, Reliance select.

Fortune sunflower oil 5 lt. Market price Rs.625 RM price Rs.329 only

Major discounts on product like Basmati rice, Chana dal, Toor dal, Spices etc.

7. GroceryBrands like Amul, Knorr, Safal, Bournvita, Cadbury, Britannia etc.

Amul Butter 500 gmMrp Rs.122 RM rate Rs.115 only.

Britannia suji toast free with Kissan Mix fruit jam.

Other discounts on Biscuits, Green peas, knorr soups, Frooti etc.

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8. GroceryBrands like Pantene, Gillette, Lux, Meswak, Stayfree, Surf etc.

Gillette Mach 3 razor for Rs.99 only Market price Rs.125

Surf excel Mrp Rs.175 RM price Rs.131.25 only.

Also attractive discounts on Stayfree, Allout, Meswak, Parachute etc.

DOUBLE POINTS TO RELIANCE ONE MEMEMBERS ON EVERY PURCHASE

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Value Proposition:-

Value

Proposition

Merchandi

se

Pricing

Promotion

HRM/OD

Layout

Location

Format

Supply

Chain

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In the last year, Reliance Retail Limited (RRL) continued to fulfill its commitment of enrichingIndian consumers shopping experience and providing quality merchandise at an attractive valueproposition.

Through Reliance One, RRLs loyalty membership program, RRL enjoys the patronage of over

5.5 million customers. In the coming year, RRL will continue on its mission to delight thecustomers every visit. RRL will continue to provide unprecedented value to customers across allits formats and stores.

Reliance Mart offers some unique services to the shoppers like tailoring, shoe repair, watch

repair, a photo shop, gift services and laundry services, all within the store. The store also houses

its own fresh bakery, serving hot, off-the-oven bread and bread products throughout the day

and local savouries, an ice-cream train for the kids, a chakki, ready-made batter and loose tea and

pickle for the housewives. Reliance Mart will also sell fine jewellery and fashion jewellery as

part of its lifestyle section.

Reliance Mart will also house a health and wellness store providing pharmaceutical drugs and

other wellness products. For the shoppers convenience, the store has a cafeteria providing

quality food and beverages for ready consumption, an ATM machine and a consumer service /

membership desk to provide the customer a truly international shopping experience.

The hypermarket also launched a host of Reliances own brands in select categories with

superior quality and affordable prices like First Class, Network, Netplay, Team Spirit and

Sparsh in Mens and Womens Formal / Casual and Ethnic wear, DNM- X in the jeans

category for men and women, Panda for kids clothing and Grip in the luggage section. Thefootwear category will carry Zig in formal wear. Hi Attitude for semi -formal, Tosco for

party wear and Monza for the sports enthusiast. There are many products that will be

exclusively available in Reliance Mart stores only.

Reliance Mart, with 61 check-out counters has for the first time in India introduced the Mobile

POS system for faster check outs. This is aimed at reducing customer wait-time. The store

planning, atmospherics and layout has been designed specifically to provide a complete

solution to the customer.

The store has over 400 highly skilled and trained customer sales representatives. Reliance Martwill continue to offer all its customers Reliance One, a common membership and loyalty

program across all its formats, which follows the philosophy of Earn Anywhere, Spend

Anywhere. Reliance Mart will also provide easy and attractive finance options, including 0%

financing for your purchases on select products.

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CONCLUSION:-

Here we would like to sum up that Indian retail sector is in its nascent stage of evolution. While

there are obstacles, there are clear opportunities in modern retailing in India. There are many

lessons that India can take from other countries, which have moved along the path of retail

evolution. The retail sector has proved to be of immense significant from macro-economic point

of view. The sectors capability to give strong growth momentum by creating multiplier effects

on other sectors is not in dispute. It is now necessary to cautiously expand and develop the

sector, as the government, at present, has done by permitting partial FDI in the sector. Given the

scope, the retail sector is certainly expected to fetch the long-term economic benefits for the

country.

What is to be seen is how organized retail can duplicate the same level of personalized customer

service levels offered by the unorganized sector to have a higher conversion ratio.

Gaining and maintaining consumer preference is a battle that is never really won. Continued and

consistent branding initiatives that reinforce the consumers purchase decision will, over time,

land the product in consumer preference sets. Attaining and sustaining preference is an important

step on the road to gaining brand loyalty

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RECOMMANDATION:-

1. Should keep better quality of products.2. Should recruit good quality of professionals (Managers, Staff).3. Should improve billing facility.4. Display of product should be improved so that the product is easily visible to the

consumers.

5. Proper packaging and provide contrast labeling in displays of product.6. Play good songs or soothing music in the store.7. Improve quality of the products especially clothes.8. Should apply electronic supply chain management for better inventory management.

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BIBLIOGRAPHY:-

1. http://hubpages.com/hub/Reliance-Mart2. http://rcareers.ril.com3. Managing Retailing book (Piyushkumarsinha, Dwarika Prasad Uniyal)4. Managing Retail (SwapnaPradhan)5. www.indianretailindustry.com

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QUESTIONNAIRE:-

Name:

Age:Sex:

Profession:

Q1) What Retail chain do you usually go to?

Reliance mart Any other

Q2) How much money do you usually spend on shopping in a month?

0-2500 Rupees 2500-7500 Rupees 7500-12500 Rupees Over 12500 Rupees

Q3) How much time do you usually spend at a Shopping mart?

Less than 1/2 hour 1/2- 1 hour 1-2 hours Over 2 hours

Q4) How many people do you usually go with?

Alone With 1 person 2-4 people More than 4 people

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Q5) Please rate the following, according to your personal choice, for both Reliance mart & any

other mart.

Questions Reliance mart Any other mart

2. Prices of products: (1=Bad and 5= Excellent)

Accessories

1

2

3

4

5

1

2

3

4

5

Household

1

2

3

4

5

1

2

3

4

5

Lifestyle

1

2

3

4

5

1

2

3

4

5

Questions Reliance mart Any other mart

1. Products of reliance mart: (1=Bad and 5= Excellent)

Availability & quality

1

2

3

4

5

1

2

3

4

5

Choice of brands &

pack size

1

2

3

4

5

1

2

3

4

5

Proper packaging &

freshness of products

1

2

3

4

5

1

2

3

4

5

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Questions Reliance mart Any other mart

3. Staff: (1=Bad and 5= Excellent)

Behaviour

1

2

3

4

5

1

2

3

4

5

Manners

1

2

3

4

5

1

2

3

4

5

Helpfulness

1

2

3

4

5

1

2

3

4

5

Service

1

2

3

4

5

1

2

3

4

5

Questions Reliance mart Any other mart

4. What excite you most? : (1=Bad and 5= Excellent)

Promotional offers

1

2

3

4

5

1

2

3

4

5

Variety of products

1

2

3

4

5

1

2

3

4

5

Price of the products

1

2

3

4

5

1

2

3

4

5

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Questions Reliance mart Any other mart

5.

Do you ever face any problem?(Yes/No)

Billing Problems

1

2

3

4

5

1

2

3

4

5

Heavy Rush

1

2

3

4

5

1

2

3

4

5

Personnels lack of

knowledge

1

2

3

4

5

1

2

3

4

5

Questions Reliance mart Any other mart

6. Announcement?(Yes/No)

Clear and easy to

understand

1

2

3

4

5

1

2

3

4

5

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Questions Reliance mart Any other mart

7.

Wash room:?(Yes/No)

Cleanness of wash room

1

2

3

4

5

1

2

3

4

5

Availability of water &

soap

1

2

3

4

5

1

2

3

4

5

Questions Reliance mart Any other mart

8. Score:

Overall score

1

2

3

4

5

1

2

3

4

5

Total score