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SUMMER PROJECT/INTERNSHIP REPORTON
“RELIANCE RETAIL STORE OPERATION”
AT
RANCHI
Submitted in partial fulfillment of the Post Graduate Diploma in Management (Marketing) at Xavier Institute of Social Service, Ranchi
By
Mr. /Ms. ANJANI JHA
Roll No. 40 Session 2008-10
Under the guidance of:
Prof. PINAKI GHOSH
Xavier Institute of Social Service, Purulia Road, P.O.Box 7Ranchi-834001
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APPROVAL SHEET
This is to certify that the Summer Project entitled “RELIANCE RETAIL STORE OPERATIONS
(Footfalls, Catchment Analysis & Ticket Size)” at RANCHI has been prepared by Mr. Jyoti
Shankar Singh in partial fulfillment of the requirement for the award of Post Graduate Diploma
in Marketing Management at Xavier Institute of Social Service (XISS), Ranchi.
The study embodies data collected, analyzed & compiled by the researcher under the guidance of
the undersigned and thereby approved as indicating the proficiency of the researcher. Prof. Pinaki
Ghosh has also provided a lot of support from Institute to carry out my project.
Prof. Prof. Pinaki GhoshResearch Guide Summer Internship Coordinator. (Marketing)
Prof. A.R.Bodra Dr.Fr. B.A.Ekka, s.j.HOD, Marketing Director, XISS
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DECLARATION
It is hereby declare that the project report entitled “RELIANC RETAIL STORE OPERATION ”
submitted for the degree of Master of Business Administration, is my original work and the
project report has not formed the basis for the award of any diploma, degree, associateship,
fellowship or similar other titles. It has not been submitted to any other university or institution
for the award of any degree or diploma.
Place:
Date: jyoti shankar singh
PGDMM-IV trisem.
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CERTIFICATE
This is to certify that Mr.jyoti shankar singh of PGDMM of XISS has completed his project
report on the topic of “RELIANCE RETAIL STORE OPERATION AT RANCHI” under the
supervision of Mr.PINAKI GHOSH faculty member of XISS. To best of my knowledge the
report is original and has not been copied or submitted anywhere else. It is an independent work
done by him.
Prof. PINAKI GHOSH
XISS
Ranchi
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ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can substitute
which is possible while working in real situations. Application of theoretical knowledge to
practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it’s not easy to achieve anything.
There is always a sense of gratitude, which we express to others for the help and the needy
services they render during the different phases of our lives. I too would like to do it as I really
wish to express my gratitude toward all those who have been helpful to me directly or indirectly
during the development of this project.
First of all I wish to express my profound gratitude and sincere thanks to my esteemed learned
Director Fr. Beni Ekka, Director, XISS, Ranchi, who allowed me to conduct the survey.
I would like to thank my HOD Mr.A.R.Bodra and my mentor Mr. PINAKI GHOSH who was
always there to help and guide me when I needed help. I would like to thank Mr.Anil kumar
Singh, (Head HR) Reliance Retail at Ranchi. His perceptive criticism kept me working to make
this project more full proof. I am thankful to him for his encouraging and valuable support.
Working under him was an extremely knowledgeable and enriching experience for me. I am very
thankful to him for all the value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents whose support
helps me in all the way. Above all I shall thank my friends who constantly encouraged and
blessed me so as to enable me to do this work successfully.
JYOTI SHANKAR SINGH
PGDMM
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Introduction
India has often been called a nation of shopkeepers. Presumably the reason for this is; that,
a large number of retail enterprises exist in India. In 2004, there were 12 million such units
of which 98% are small family businesses, utilizing only household labour. Even among
retail enterprises, which employ hired workers, a majority of them use less than three
workers.
Retailing is the combination of activities involved in selling or renting consumer goods
and services directly to ultimate consumers for their personal or household use. In addition
to selling, retailing includes such diverse activities as, buying, advertising, data processing
and maintaining inventory.
While sales people regularly call on institutional customers, to initiate and conclude
transactions, most end users or final customers, patronize stores. This makes store
location, product assortment, timings, store fixtures, sales personnel, delivery and other
factors, very critical in drawing customers to the store.
Final customers make many unplanned purchases. In contrast those who buy for resale or
use in manufacturing are more systematic in their purchasing. Therefore, retailers need to
place impulse items in high traffic locations, organize, store layout , trains sales people in
suggestion , and place related items next to each other, to stimulate purchase.
WHAT DOES THE RETAILING INDUSTRY INCLUDE?
Department Stores
Discount Stores
Clothing Stores
Specialty retailers
Convenience Stores
Grocery Stores
Drug Stores
Home furnishing retailers
Auto Retailers
Direct Sales Catalog and mail order companies
Some e-commerce businesses
THE IMPORTANCE OF RETAILING
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Organized retailing in India was estimated at Rs.18, 000 crores in 2002-2003 and has
grown at about 40% over the last 3 years (Source KSA Retail Outlook).
Retailing has a tremendous impact on the economy. It involves high annual sales and
employment. As a major source of employment retailing offers a wide range of career
opportunities including; store management, merchandising and owning a retail business.
Consumers benefit from retailing in that, retailers perform marketing functions that makes
it possible for customers to have access to a broad variety of products and services.
Retailing also helps to create place, time and possession utilities. A retailer's service also
helps to enhance a product's image.
Retailers participate in the sorting process by collecting an assortment of goods and
services from a wide variety of suppliers and offering them for sale. The width and depth
of assortment depend upon the individual retailer's strategy.
They provide information to consumers through advertising, displays and signs and sales
personnel. Marketing research support is given to other channels, members.
They store merchandise, mark prices on it, place items on the selling floor and otherwise
handle products; usually they pay suppliers for items before selling ,,them to final
customers. They complete transactions by using appropriate locations, and timings, credit
policies, and other services e.g. delivery.
Retailing in a way, is the final stage in marketing channels for consumer products.
Retailers provide the vital link between producers and ultimate consumers.
RETAIL STRATEGY AND STRUCTURE
Successful retail operations depend largely on two main dimensions: margin and turnover.
How far a retail enterprise can reach in margin and turnover depends essentially on the
type of business (product lines) and the style and scale of the operations. In addition the
turnover also depends upon the professional competence of the enterprise.
In a given business two retail companies may choose two different margin levels, and yet
both may be successful, provided the strategy and style of management are appropriate.
MARGIN TURNOVER MODEL
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Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for
understanding the retail structure and evolving a retail strategy."
Margin is defined as the percentage mark tip at which the inventory in the store is sold and
turnover is the number of times the average inventory is sold in a year. This is a
diagrammatic representation of the frame work and can be applied to almost any type of
retail business.
Depending upon the, combination of the two parameters, a retail business will fall into one
of the four quadrants. For instance L-L signifies a position which is low on both margin
and turnover; whereas, H-L indicates high margin and low turnover.
LOW MARGIN HIGH TURNOVER STORES
Such an operation assumes that low price is the most significant determinant of customer
patronage. The stores in this category price their products below the market level.
Marketing communication focuses mainly on price. They provide very few services; if
any, and they normally entail an extra charge whenever they do. The merchandise in these
stores are generally pre-sold or self sold. This means that the customers buy the product,
rather than the store selling them.
These stores are typically located in isolated locations and usually stock a wide . range of
fast moving goods in several merchandise lines. The inventory consists of well known
brands for which a consumer pull is created by the manufacturer through national
advertising. Local promotion focuses on low price. Wal-mart in the United States is an
example and Pantaloon Chain or Subhiksha are Indian examples of such stores.
HIGH MARGIN LOW TURNOVER
This operation is based on the premise that distinctive merchandise, service and sales
approach are the most important factors for attracting customers. Stores in this category
price their products higher than those in the market, but not necessarily higher than those
in similar outlets. The focus in marketing communication is on product quality and
uniqueness.
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Merchandise is primarily sold in store and not pre-sold. These stores provide a large
number of services and sell select, categories of products. They do not stock national
brands which are nationally advertised. Typically, a store in this category is located in a
down town area or a major shopping center. Sales depend largely on salesmanship and
image of the outlet.
HIGH MARGIN HIGH TURNOVER STORES
These stores generally stock a narrow line of products with turnover of reasonably high
frequency. They could be situated in a non commercial area but not too far from a major
thoroughfare. Their location advantage allows them to charge a higher price. High over
head costs and, low volumes also necessitate a higher price.
LOW MARGIN-LOW TURNOVER STORES
Retail enterprises in this category are pushed to maintain low margins because of price
wars. Compounding this problem is the low volume of sales, which is probably a result of
poor management, unsuitable location etc. such businesses, normally get wiped out over a
period of time.
RETAILING FORMATS (CLASSIFYING RETAIL FIRMS)
Regardless of the particular type of retailer (such as a supermarket or a department store),
retailers can be categorized by (a) Ownership, (b) Store strategy mix, and (c) Non store
operations. Figure 1.3 illustrates this concept.
Form of Ownership
A retail business like any other type of business, can be owned by a sole proprietor,
partners or a corporation. A majority of retail business in India are sole proprietorships
and partnerships.
Independent Retailer
Generally operates one outlet and offers personalized service, a convenient location and
close customer contact. Roughly 98% of all the retail businesses in India, are managed and
run by independents, including barber shops, drycleaners, furniture stores, bookshops,
LPG Gas Agencies and neighborhood stores. This is due to the fact that into retailing is
easy and it requires low investment and little technical knowledge. This obviously results
in a high degree of competition..
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Most independent retailers fail because of the ease of entry, poor management skills and
inadequate resources.
Retail Chain
It involves common ownership of multiple units. In such units, the purchasing and
decision making are centralized. Chains often rely on, specialization, standardization and
elaborate control- systems. Consequently chains are able to serve a large dispersed target
market and maintain a well known company name. Chain stores have been successful,
mainly because they have the opportunity to take advantage of "economies of scale" in
buying and selling goods. They can maintain their prices, thus increasing their margins, or
they can cut prices and attract greater sales volume. Unlike smaller, independent retailers
with lesser financial means, they can also take advantage of such tools as computers and
information technology. Examples of retail chains in India are Shoppers stop; West side
and IOC, convenience stores at select petrol filling stations.
Retail Franchising
Is a contractual arrangement between a "franchiser" (which may be a manufacturer,
wholesaler, or a service sponsor) and a "franchisee" or
Franchisees, which allows the latter to conduct a certain form of business under an
established name and according to a specific set of rules. The franchise agreement gives
the franchiser much discretion in controlling the operations of small retailers. In exchange
for fees, royalties and a share of the profits, the franchiser offers assistance and very often
supplies as well. Classic examples of franchising are; McDonalds, Pizza Hut and Nirulas.
Cooperatives
A retail cooperative is a group of independent retailers that have combined their financial
resources and their expertise in order to effectively control their wholesaling needs. They
share purchases, storage, shopping facilities, advertising planning and other functions. The
individual retailers retain their independence, but agree on broad common policies. Amul
is a typical example of a cooperative in India.
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Store Strategy Mix
Retailers can be classified by retail store strategy mix, which is an integrated combination
of hours, location, assortment, service, advertising, and prices etc. The various categories
are:
(A)Convenience Store: Is generally a well situated, food oriented store with long
operating house and a limited number of items. Consumers use a convenience store; for
fill in items such as bread, milk, eggs, chocolates and candy etc.
(B)Super markets: Is a diversified store which sells a broad range of food and non food
items. A supermarket typically carries small house hold appliances, some apparel items,
bakery, film developing, jams, pickles, books, audio/video CD's etc. The Govt. run Super
bazaar, and Kendriya Bhandar in Delhi are good examples of a super market. Similarly in
Mumbai, we have Apna Bazar and Sahakari Bhandar.
(C)Department Stores: A department store usually sells a general line of apparel for the
family, household linens, home furnishings and appliances. Large format apparel
department stores include Pantaloon, Ebony and Pyramid. Others in this category are:
Shoppers Stop and Westside.
(D)Speciality Store: Concentrates on the sale of a single line of products or services, such
as Audio equipment, Jewellery, Beauty and Health Care, etc. Consumers are not
confronted with racks of unrelated merchandise. Successful speciality stores in India
include, Music World for audio needs, Tanishq for jewellery and McDonalds, Pizza Hut
and Nirula's for food services.
(E)Hyper Markets: Is a special kind of combination store which integrates an economy
super market with a discount department store. A hyper market generally has an ambience
which attracts the family as whole. Pantaloon Retail India Ltd. (PRIL) through its
hypermarket "Big Bazar", offers products at prices which are 25% - 30% lower than the
market price.
Non Store Retailing
In non store retailing, customers do not go to a store to buy. This type of retailing is
growing very fast. Among the reasons are; the ability to buy merchandise not available in
local stores, the increasing number of women workers, and the presence of unskilled retail
sales persons who cannot provide information to help shoppers make buying decisions
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The major types of non store retailing are:
(A)In Home Retailing: Where, a sales transaction takes place in a home setting -
including door-door selling. It gives the sales person an opportunity to demonstrate
products in a very personal manner. He/She has the prospect's attention and there are
fewer distractions as compared to a store setting. Examples of in home retailing include,
Eureka Forbes vaccum cleaners and water filters.
(B)Telesales/Telephone Retailing: This involves contact between the prospect and the
retailer over the phone, for the purpose of making a sale or purchase. A large number of
mobile phone service providers use this method. Other examples are private insurance
companies, and credit companies etc.
(C)Catalog Retailing: This is a type of non store retailing in which the retailers offers the
merchandise in a catalogue, which includes ordering instructions and customer orders by
mail. The basic attraction for shoppers is convenience. The advantages to the retailers
include lover operating costs, lower rents, smaller sales staff and absence of shop lifting.
This trend is catching up fast in India. Burlington's catalogue shopping was quite popular
in recent times. Some multi level marketing companies like Oriflame also resort to
catalogue retailing.
(D)Direct Response Retailing: Here the marketers advertise these products/ services in
magazines, newspapers, radio and/or television offering an address or telephone number
so that consumers can write or call to place an order. It is also sometimes referred to as
"Direct response advertising." The availability of credit cards and toll free numbers
stimulate direct response by telephone. The goal is to induce the customer to make an
immediate and direct response to the advertisement to "order now." Telebrands is a classic
example of direct response retailing. Times shopping India is another example.
(E)Automatic Vending: Although in a very nascent stage in India, is the ultimate in non
personal, non store retailing. Products are sold directly to customers/buyers from
machines. These machines dispense products which enable customers to buy after closing
hours. ATM's dispensing cash at odd hours represent this form of non store retailing.
Apart from all the multinational banks, a large number of Indian banks also provide ATM
services, countrywide.
(F)Electronic Retailing/E-Tailing: Is a retail format in which retailers communicate with
customers and offer products and services for sale, over the internet. The rapid diffusion of
internet access and usage, and the perceived low cost of entry has stimulated the creation
of thousands of entrepreneurial electronic retailing ventures during the last 10 years or so.
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Amazon.com, E-bay and Bazee.com HDFCSec.com are some of the many e-tailers
operating.
THE WHEEL OF RETAILING
Is a hypothesis that attempts to explain the emergence of new retailing institutions and
their eventual decline and replacement by newer retailing institutions? Like products
retailing institutions also have a life cycle.
According to this theory new retailers enter the market as, low margin, low price, low
status institutions. The cycle begins with retailers attracting customers by offering low
price and low service. Over a period of time these retailers want to expand their markets
and begin to stock more merchandise, provide more services, and open more convenient
locations. This trading up process. Increases the retailers’ costs and prices, creating
opportunities for new low price retailers to enter the market.
The evolution of the department store illustrates the "wheel of retailing" theory. In its
entry phase, the department store was a low cost-low service venture. With time it moved
up into the trading-up phase. It upgraded its facilities, stock selection, advertising and
service. The same department store then moves into the vulnerability phase, because it
becomes vulnerable to low cost/low service formats, such as full line discount stores and
category specialists. Figure 1.5 illustrates this theory. While the wheel hypothesis has a
great deal of intuitive appeal and has been borne out in general by many studies of retail
development, it only reflects a pattern. It is not a sure indicator of every change, nor was it
ever intended to describe the development of every individual retailer.
RETAILING DECISIONS
There are many factors for retailers to consider while developing and implementing their
marketing plans. Among the major retailing decisions are these related to (a) Target
markets (b) Merchandise management (c) Store location (d) Store image (e) Store
personnel (f) Store design (g) Promotion, and (h) Credit and collections.
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Target Markets: Although retailers normally aim at the mass market, a growing number are
engaging in marketing research and market segmentation, because they are finding it
increasingly difficult to satisfy everyone. Through a careful definition of target markets,
retailers can use their resources and capabilities to position themselves more effectively and
achieve differential advantage. The tremendous growth in number of speciality stores in
recent years is largely due to their ability to define precisely the type of customers, they want
to serve.
Merchandise Management: The objective here is to identify the merchandise that
customers want, and make it available at the right price, in the right place at the right
time. Merchandise Management includes (i) merchandise planning (ii) merchandise
purchase, and (iii) merchandise control. Merchandise planning deals with decisions
relating to the breadth and depth of the mix, needed to satisfy target customers to
achieve the retailers return on investment. This involves sales forecasting, inventory
requirements, decisions regarding gross margins and mark ups etc. Merchandise
buying involves decisions relating to centralized or decentralized buying, merchandise
resources and negotiation with suppliers. Merchandise Control: deals with maintaining
the proper level of inventory and protecting it against shrinkage (theft, pilferage etc.).
Store Location: Location is critical to the success of a retail store. A store's trading-
area is the area surrounding the store from which the outlet draws a majority of its
customers. The extent of this area depends upon the merchandise sold. For example
some people might be willing to travel a longer distance to shop at a speciality store
because of the unique and prestigious merchandise offered. Having decided on the
trading area a specific site must then be selected. Factors affecting the site include,
traffic patterns, accessibility, competitors' location, availability and cost and
population shifts within the area.
Store Image: A store image is the mental picture, or personality of the store, a retailer
likes to project to customers. Image is affected by advertising, services; store layout,
personnel, as well as the quality, depth and breadth of merchandise. Customers tend to
shop in stores that fit their images of themselves.
Store Personnel: Sales personnel at a retail store can help build customer loyalty and
store image. A major complaint in many lanes of retailing, is the poor attitude of a
salesperson. There is a growing trend now, to provide training to, these sales clerks to
convert them from order takers to effective sales associates.
Store Design: A store's exterior and interior design affect its image and profit
potential. The exterior should be attractive and inviting and should blend with the
store's general surroundings. The term "Atmospherics" is used to refer to the retailer's
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effort at creating the right ambience. Merchandise display is equally important. An
effective layout guides the customer though the various sections in the store and
facilitates purchase.
Promotion: retail promotion includes all communication from retailers to consumers
and between sales people and customers. The objective is to build the stores image,
promote customer traffic, and sell specific products. It includes both, personal and non
personal promotion. Personal communication is personal selling - the face to face
interaction between the buyer and the seller. Department stores and speciality stores,
emphasize this form of promotion. Non personal promotion is advertising. The media
used are TV, Radio, Newspapers, Outdoor displays and direct mail, other forms of
promotion include, displays, special sales, give always and contests etc.
Credits & Collections: Retailers are generally wary of providing credit, because of
additional costs-financing accounts receivables, processing forms and bad debts etc.
But many customers prefer some form of credit while purchasing. This explains the
popularity of different types of credit cards and debit cards.
EMERGING TRENDS IN RETAILING
In recent years the nature of retailing has changed dramatically, as firms try to protect
their positions in the market place. Many customers are no longer willing to spend as
much time on shopping as they once did. Some sectors of retailing have become
saturated, several retailers are operating under high levels of debt and number of
retailers after running frequent "sales", have found it difficult to maintain regular
prices.
Retailers are adapting to*the shopping needs and time constraints of working women,
dual earner households and the increased customer interest in quality and customer
service:
Shopping Malls: A growing number of shopping malls are coming up all over the
country. In north India; there seems to be a proliferation of such malls surrounding
Delhi, in places like Gurgaon and Noida. In general they target higher income
customers, with their prestigious specialty shops, restaurants and department stores.
Factory Outlets: Manufacturers are opening factory outlets to sell off surplus
inventories and outdated merchandise. This forward vertical integration gives
manufacturers greater control' over distribution, than selling the merchandise to off
price retailers. Mohini knitwear of Ludhiana (Punjab) and number of woolen and
hosiery manufacturers set up their outlets in Delhi during winters.
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Non Store Retailing: Non store retailing is accelerating at a faster rate than in store
retailing. This includes direct marketing. In Home shopping TV shopping and e-tailing
etc.
Diversification of Offerings: Scrambled (unrelated products or services)
merchandising is taking on a broader meaning and inter type competition among
retailers is growing. For instance Citibank is organizing tourist trips and sending mail
order catalogues to its credit card customers.
Impact of Technology on Shopping Behaviors: The way retailers present their
merchandise and conduct their transactions are changing. Cable TV Channels are used
to present merchandise, Videos have replaced catalogues and computer linkages to
acquire information and make purchases are on the increase. Virtual shopping through
PDA's is another possibility.
Multi Channel Retailing: Traditional store based and catalogue retailers are placing more
emphasis on their electronic channels and evolving into multi channel retailers, because they
can reach new markets and overcome limitations posed by traditional formats.
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RELIANCE COMPANY PROFILE
RELIANCE GROUP
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private
sector enterprise, with businesses in the energy and materials value chain. Group's annual
revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited,
is a Fortune Global 500 company and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward
vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum
refining and oil and gas exploration and production - to be fully integrated along the materials
and energy value chain.
The Group's activities span exploration and production of oil and gas, petroleum refining and
marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and
retail.
Reliance enjoys global leadership in its businesses, The Group exports products in excess of
USD 15 billion to more than 100 countries in the world. There are more than 25,000
employees on the rolls of Group Companies. Major Group Companies are Reliance Industries
Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail
Limited) and Reliance Industrial Infrastructure Limited.
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FOUNDER PROFILE
"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream It, you can do it."
Dhirubhai H. AmbaniFounder Chairman Reliance Group December 28, 1932 - July 6, 2002
Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses.
BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED
Mukesh D. Ambani Chairman & Managing Director
Nikhil R. Meswani Executive Director
Hital R. MeswaniExecutive Director
H.S.Kohli Executive Director
RELIANCE FRESH
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APKA FRESH APKA PADAOS ME
India’s Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been first off the
blocks by launching its first Reliance Fresh outlets in Hyderabad,
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across
the country. The reliance fresh supermarket chain is ril’s rs 25,000 crore venture and it plans
to add more stores across different g, and eventually have a pan-India footprint by year 2011.
The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products. Besides, the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people, according to the company. The company also
has plans to train students and housewives in customer care and quality services for part-time
jobs.
Reliance Fresh will…
• Forge strong and lasting bonds with millions of farmers and will transform the
Relationship with customers to a new level
• Offer unmatched affordability, quality, convenience, service and choice
• Offer our customers the widest range of fruit and vegetables at the best prices in
the neighborhood
• Provide for the daily needs of our customers by offering staples, grocery and
household products at great prices
• Offer consistent high quality, unbeatable freshness and great service so that our
Customers know that we can be trusted every day.
RELIANCE FRESH IN RANCHI
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In Ranchi there are 9 outlets of Reliance Fresh:
1. SPG Mart
2. Trikuta Hill
3. Rathod Circular Road
4. Vyas Enclave
5. L N Complex
6. M R Tower
7. Eyelex Hinoo Main Road
8. Prasad Motors
9. Booty More
On an average turnover is 50, 000 in Ranchi, where as compare to others cities it is too low.
Their main aim is to provide good quality products in lower price & customer service &
customer satisfaction.
According to reliance fresh store manager they were satisfying 75% of customer expectations.
These Are the Problems We Found In Reliance Fresh in Ranchi:–
- Ranchi is a cultural oriented city- Per Consumer income lower than compare to metropolitan cities- The most of the consumer will prefer to go for local market- Reliance is situated in high income consumer area
There is limited consumer- Advertising strategy is not good in Ranchi.
OBJECTIVES:
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- It is the organizational study
- identify the reliance marketing strategy in Ranchi
- We provide information to reliance fresh to focus
On middle class consumers in Ranchi
- Implementation of this plan should not affect
Other R
Marketing Research
Marketing research as a functional area of management is becoming increasingly important
as compared to other field. All decisions in modern business organization revolve around the
marketing information. Because the success of the business does not depend upon the guess
work rather have the correct information about the customer, what they want, how want,
how much they are able to pay, and the substitute available in the they market etc. This
information’s can be collected and utilized the help of marketing research.
Marketing research is the systematic and objective identification, collection,
analysis, discrimination, and use of information for the purpose of improving
decision making related to the identification and solution of problem in marketing.
Types of Research
1. considered. Basically there is a little knowledge on which to build.
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2. Descriptive Research: Descriptive research embraces a large proportion of marketing research. The purpose is to provide an accurate snapshot of some aspect of the market environment. In descriptive research, hypothesis often will exist, but them tentative and speculative.
3. Causal Research: When it is necessary to show that one variable
Causes or determines the values of other variables, a casual research
Approach must be used. Since data collection method is from surveys,
Hence Descriptive type of research is used for analysis of the data.
All research approaches can be classified into three general categories research:
3. Exploratory Research: Exploratory research is used when one is seeking insights into the general nature of the problem, the possible decision alternatives, and relevant variables that need to be
Types and collection of data used
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Basically there are two types of data which are used in marketing research process.
1. Primary Data
A. ObservationB. InterviewC. Questionnaires
Interview: Interview is one of the chief means of collecting data in research process. Interview may be defined as a systematic conversation initiated for a specific purpose and focus on certain content areas.
Surveys: There are mainly three types of surveys, depending upon the method of data gathering used: Personal surveys, telephone surveys and mail surveys.
Advantages of Surveys
1. Wider Distribution2. Less Distribution bias3. Thoughtful reply
The primary data under processing is collected from both direct filling the questionnaires and through telephone interviews also.
2. Secondary Data: The data once collected by once person become the secondary data if used by another person.
Sources of Secondary Data: The various sources of data are as follows:
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1. Bibliography2. Directories3. Televisions4. Newspapers5. Journals6. Websites
The Secondary data like information of existing customers, information about company has been taken from company website, company’s yearly chronicles and employee’s of the company.
Sampling
25
A sample is a part of population. The sample should be representative of the population and the information obtained must be reliable. In any survey where reliability is desired, the errors and variances have to be controlled, measured and interpreted.
RESEARCH DESIGN
The type of Research Design will be Descriptive
The types of Primary Data collection procedures that would probably be used.
Population –Dealers, distributors, fleet owners, company’s representative in Ranchi.
Process – Sampling
Method of data collection – Typed Questionnaire
Attitude Measurement
Attitude is psychological constructs, a way of conceptualizing the intangible. Attitude can’ really be observed or measured directly because their existence is inferred from their consequences. Attitudes are mental states used by individuals to structure the way they perceived their environment and guided the way respond to it.
Types of Attitude measurements Scale: There are four types of measurement scale as follows.
1. Nominal Scale: In a nominal scale, objects are assigned to mutually exclusive, labeled categories but there is no necessary relationship among the categories.
26
2. Ordinal Scale: An ordinal scale is obtained by arranging them in order with regards to some common variable. The question is simply whether each object has more or less of this variable than some other objects.
3. Interval Scale: In an interval scale the numbers used to rank the objects also represent equal increments of the attributes being measured.
4. Ratio Scale: A ratio scale is a special kind of interval scale that has a natural zero point.
The Nominal Scale is used while designing the questionnaire. Both close ended and open ended questions are put together in the questionnaire.
DATA COLLECTION:
PRIMARY DATA – Collected from consumers and suppliers, reliance fresh employees
SECONDARY DATA – Collected from internet, articles, and news papers.
The information is the major part of any research proposal to attain certain objectives we
require both secondary and primary data which is discussed above
HYPOTHESIS TESTED:
The hypothesis tested on both reliance fresh and people of Ranchi
H0: Reliance fresh is not famous & not significant in Ranchi.
H1: Reliance fresh is famous & highly significant in Ranchi.
LIMITATIONS:
Every research has certain limitation so there is no research is free from limitation same thing
happen in this research which is discussed below:
- Less investment in advertising in Ranchi city
27
- People are very conservative- Primary data is not sufficiently available- Much of the research done was based on consumer and supplier survey- Research based on Ranchi city- Last but not least time constraint.
- NEED OF STUDY:-
A detailed study in Reliance Retail focusing primarily on two areas of their operations.
1. Retail stores operations based on aspects :-
I. General operations according to the company manuals.
II. Store operations based on SUSD (Shutter up to Shutter down)
2. An analysis of footfall, ticket size & catchment of Reliance fresh stores operating in
Ranchi district in order to determine their performances based on indicators like sale,
sale per sq. feet , gross margin, shrinkage , dumping and ticket size for the month of
May 2009 as well as their comparison with month of April 2009.
ACTIVITIES GROUPS WITHIN THE STORES
Getting Products to Shelf
1) Indenting & Purchase Orders (PO’s) (a)Indenting – DC Delivery:-
28
Indenting will be happen after checking stock in the store and goods in transit. Or whenever if
required any changes in indenting due to season, weekends or any festivals then the quantity
is modified. For branded goods there is a automatic indenting system which is handled by the
head office (Mumbai). Delivery of fruit & vegetables is after 48hours after being raised.
Indenting for milk and dairy products is delivered after 36 hours.
(b) Raising PO for Bakery
PO (purchase order) for bakery supply is raised in the store and also released to the vendors
by the stores. PO on vendors can be raised only once each day & it will be valid for 24 hours.
2) Receiving:-
(a) Checking of Delivery in DC
All the Dry DC delivery will be checked by a store staff in the DC staging area before
packing and loading. This is to minimize delivery count error and ensure that right quantity is
delivered to the stores. Behind this all the activity owner is Store Manager.
(b) Receiving Goods in Store: From DC & CPC
Receiving indented goods from the DC & CPC as per the delivery schedule. At the time of
receiving goods from DC many things which is followed by the SM, ASM,& CSA:-
Check the seal in front of driver.
Note down the air condition temperature.
Inspect stocks for transit damages.
If any HU (Handling unit) / article is found damaged, excess, or missing noted it on
the trip sheet for return to DC.
Do the GRN (Goods return note) for the delivery for the actual received quantity.
Stores are not unloading transit damaged stocks. Transit damages will be returned to
DC in the same delivery truck.
The main focus during goods receiving must be to unload the crates/ cartons from the
truck as quickly and safely as possible.
(c) Receiving from Vendors
Procedure for receiving goods directly from vendors. Behind this whole activity
owner is store manager/ asst. store manager. Reliance fresh stores indenting specially
bakery, beverage and books/magazines and music. SM/ASM Checks:-
Check the deliveries for quantity, damages and freshness and accept only good
products as per shelf life norms.
29
Do not accept any short shelf life or damage quantity from vendor and reduce it from
the invoice if required.
Remove all expired products from the shelf and get them replaced with fresh product
without any GRN for the same.
In case of books/magazines and music SM/ASM check bar-codes on the books or
music CDs delivered by the vendor & return the unsold items to the vendors.
Vendors and store staff check physically check DSD deliveries for damages and
freshness and accept only fresh saleable products.
3) Replenishment of goods
(a) Replenish Shelf from Goods Receiving Area
Process of moving goods from goods receiving area to the respective bays/freezers/chillers as
per the priority fill rule.
Frozen products received must have first priority for stacking in the Freezers.
Strictly follow FIFO
Place previous stock in the front/top of the shelf.
Chilled product received must have second priority after frozen product for stacking
in the chillers.
4) Managing Price Changes
(a) Changing SELs for those SKU’s where price has been changed. All the changing
of SKU’s is done by headquarter Mumbai.
5) Managing Planogram
Implementation of changes of Planogram
The Planogram indicates the location for each SKU on a shelf. This process describes how to
change Planogram. Changing of Planogram is wholly managed by headquarter. Headquarter
send new Planogram to store by mail. Changing of fixtures and shelf heights, at
per new Planogram. The major change of shelf is less than 5 bays. Check quality of stock
received as per Planogram, raise an indent of additional stock if required. Stack goods as per
Planogram and readjust SEL to align with the left hand side of the first facing going from the
left. All the changes made on shelf to be signed off by store manager. All the Planogram to be
provided in standard format. Planogram indicate shelf heights. Planogram is send to the store
at least 2 days in advance of the change. No stock to be displayed on the shelf if it not in the
Planogram. If the F& V section looks empty in the late evening because of stock outs, then
30
store manager may change only the F& V Planogram in a suitable manner to give appearance
of full store.
6) Getting Products from Shelf to customers
(a) Promotion management (setting up the store for new promotions)
Store check that all new promotional stock has been received from the DC and the
free gift under promotional offer are bundle along with the promotional stock. If the
free gift is too large to be accommodated on the shelf – the gift should be provided to
the customer at the till.
Put up new promotional signage above the end cap at the marketing defined
locations.
ASM/SM briefs the staff at the morning and afternoon meeting on the promotion
details.
Staff need to be briefed on the following :
Details of the promotion
Period of the promotion
Advantages to the customer
Any special arrangements at the till
Sales target for the promotion
Process for dealing with left over promotion stock
If the customer brings the promotion item back for exchange / refund – the customer
has to bring back the free offer as well. Exception can be made at the customer’s
favour at discretion of store manager.
7) Stock Display Management
Filling up the gaps on the shelves for SKU sold during the day is defined as spot fill.
Fill F&V in a similar manner using crates stored in the bottom shelf of the wall racks,
below heapers and in back room. Follow FEFO, FIFO rules.
In case of F&V, remove the old crates, place the new crates on the racks and then
place the older products on top of the newer products – FIFO
Checking of temperature of chillers and freezers is also a part of SDM.
It is the process of checking and moving stocks to ensure that the older stock gets
sold before the newer ones.
FEFO / FIFO to be followed for stock rotation for non F&V SKUs.
The thing which is strictly followed is removal of damaged part of the F&V will not
be carried out at the shop floor under any circumstances.
31
In every store every day employees check for date code check schedule for the day in
store perform.
Employees removed expired products from the shelves and take them to the back of
the store.
Employees identify & segregate near expiry products for mark down as per
markdown policy and guidelines.
Procedure for selling loose staple products to the customer in desired quantity.
Procedure for managing the concessionaire in our stores like the Pickles counters,
Sweet counters etc.
Home delivery: for this there is some procedure which is followed by stores.
Purchase a detailed street map of the local area e.g. Eicher
map
Outline on the map the catchments which fall in 2 Km
radius of the store.
Prepare a list of roads / building with in that area.
They appoint two employees for Home delivery champions
(HDC) – for order taking, picking and billing.
Home delivery associate (HDA) – billing and delivery.
There is two type of home delivery which is given by the
RF: Convenience order – this is a situation in which the
customer has come to the store, picked items, got them
billed and then request RF store team to deliver to his
residence. The payment in this case for the goods has
already been received.
Phone Orders - This is a situation in which the customer
does not carry out the activities of physically picking,
billing etc. but places an order on phone by calling either at
the store or at the call centre. The payment in this case
would be received once the delivery CSA goes to the
customer destination and hands over the goods.
Big orders store hire auto, rickshaws & it is decided by store manager.
8) Managing waste and markdowns :
(a) Segregation of damaged and expiry in store :-
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(a) For F&V crates are received carefully for the item not for sale as per reliance retail
quality and are removed from the shelf.
(b) It is done by CSA / F&V champion.
EXPIRY:-
(a) Near expiry product is markdown as per the RR rule.
(b) An expired product is segregated and are treated as per following.
PRODUCT TYPE TREATMENTDSD supply Exchange with fresh stock from the
vendor at the time of next delivery DC supply Dump in store.
(b)Markdown for damages and near expiry:-Damaged and near expiry products are markdown as per the following rules:
Markdown criteria:- Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager.
Up to Rs 30 or 30% of SP(whichever is lower) & it is also done by DM / AM.
Beyond Rs 30 or 30% of SP & it is done by state fresh head.
Dumping of damages & expiry product:- Treatment for damaged & expired product are done in following manner:-
Loss type Action(a) Type C damage Dump in store (shown in SAP)
Dispose in store.(b) All expiry – (DC supply & DSD
without RTV) Dump in system (SAP) Display in store
(c) Expiry – (DC supply with RTV) Exchange with fresh stock, fresh vendor at the time of next delivery
For processing of dump (damaged & expired) approval is obtained from store manage.
After dumping, all the dump are entered into dump register in the presence of SM with his /her signature.
The entire dumped product is then get hand overed to garbage collection agency. For type C damaged product some part of each product is kept as proof. Finally the dump register is present near DM/AM for approval (signature).
(c)Dump on arrival:- On arrival of goods (F&V stock received from DC) poor quality goods are
segregated. It is kept in separate place in the store with the sticker “dumped on arrival – not
for sale” along with receiving date.
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And the respective SM is informed. In the GRN (goods received roles) for the delivery, poor quality stocks are
entered as “Damaged Quality”. Further it is kept for inspection and area F&V executive is informed. E-mail is
send to the F&V head / F&V category head. Finally dumped stocks are hand over to garbage agency. In case the GRN is done at the back end maintain a record of the DUA and also
record the some on the invoice that is sent to the commercial team.
(9) Returns:-
(a) Goods Return to DC:- A finalized list of good stock article for return to DC is obtained from state
merchandising team. According to the list stock of articles are segregated and are moved to the
back office. Return schedule is obtained from the state merchandising team and packing
of goods carton are planned. They are packed properly. Food and non-food items are packed separately. And GRDC is created in SAP for the quality to be returned. Finally it is loaded and dispatched to DC in DC truck and return to DC
documents is get signed by the truck driver and is kept with itself.
(b) Goods Return to Vendor:- Stocks which are to be returned to vendor are taken out to the back room.. DSD returns are segregated as per category guidelines. Return to vendor document is created in the store. Returns are loaded to the vendor’s vehicle. 2 copies of vendor document are made and is got signed by the vendor. One copy is issued to the vendor and 2nd copy is filled as record. Security control register for returns are updated regularly
(c) Physical verification of stock:- All PI documents present in the system are checked and closed. Stocks take checklist is updated. It is managed with DC to ensure that there is no afternoon or evening
delivery on the stocks count day. Following are checked and ensure:-(i) GRN for all DC deliveries have been prepared.(ii) GRN for all DSD deliveries have been completed.(iii) All damaged products (type c ) have been dumped.(iv) All expiry product have been dumped.(v) PI documents for stocks take is generated.(vi) HHTs are managed and ensured that they working properly etc.
(d) Stocks count and reconciliation:- Objective of the count, the layout of the stores and the process are briefly
explained to the staff. For stock count staffs are delivered for counting of articles in fixtures and for
entering the count in the HHT.
Back of store – store take SKUs by weight (F&V, loose staples, etc)
(i) Each loose article are weighed separately and quantity stickers are pasted.(ii) It is continued until all SKUs are weighed.
34
SKUs by count:-(i) Product variants are segregated. Number of units are counted and stickers are
pasted with the quality on SKUs.(ii) It is continued until all the SKUs are not counted.(iii) PI count in the HHT is opened (all PI document together) and quantity is entered
after scanning the EAN / article code of the SKUs from the product in the HHT PI document.
(iv) It is continued in this manner till all the SKUs in the back of store is counted and the quantity is entered in the PI documents with the help of HHT.
(e) Store Opening :- (i) Store shutter is opened.(ii) Burglar alarm is put off.(iii) Entry for collection of keys and store opening details are recorded in the
register kept at the security.(iv) Lights are switched on and all the equipments are checked for working made.(v) Generators are checked for water level, engine oil and Diesel.
(f) Store closing:- (i) Announcement is made for store closing 10 min before closing.(ii) No. of tills to be closed or operated fully depends upon the no. of customer
in the store.(iii) Ensure that no customer is present inside the store.(iv) POS & EDC closure process is performed. (v) It is checked that equipment is in order or not after which the store is closed.(vi) Security guard is got to put paper seal on safe and almirah.(vii) All air-conditioners are switched off except server room a/c (which must be
maintained between 22-24 degree c )(viii) Display lights and façade lights are switched off.(ix) Back room lock is sealed with a paper seal.(x) Burglar alarm in the store is updated and key register is signed in.(xi) Finally shutters are locked.
On the sales floor-stock take:- (i) Counting and weighing of bays are started, and quantity or count stickers are
pasted.(ii) PI documents are opened , EAN/ article code on the products are scanned using
the HHT and the counted number is entered.(iii) Similarly all the SKUs shelves and bays counted on sales floor and the count
entry is entered in the PI document.(iv) Control sheet for the fixtures that has been counted are updated.(v) Once all the articles in the store are counted and count entry is done in the HHT ,
post the count data by pressing the “ post count” button in the HHT only.(vi) HHT would display the list of SKUs for which count has been not entered then
the article in the store is looked upon and count is updated in case the article is present in the store and count entry was missed earlier.
(vii) The final counted data is posted once again by pressing the “post count” button.(viii) Success log is checked to ensure that all the PI documents are successfully
posted.(ix) The stock take report is generated is SAP and inventory differences is listed.(x) In case of major variations record is performed and the count in the PI document
is changed and the count is reported.(xi) The variation is checked and confirmed and then the difference is posted by
posting the PI documents in ZSTORE, using the ‘Post ‘option under “Phy inv. Post” in the physical inventory menu.
35
(xii) The stock take check list lifted in the store.
ANALYSIS OF RELIANCE RETAIL STOREIN MONTH OF MAY 2009
Catchment area: - the area and population from which a region attracts visitors or customers
DATE FOOT FALL TICKET SIZE DATEFOOT FALL
TICKET SIZE
5/16/2009 462 205 6/1/2009 408 2045/17/2009 365 198 6/2/2009 546 3085/18/2009 487 345 6/3/2009 546 435
36
5/19/2009 567 342 6/4/2009 453 3975/20/2009 452 354 6/5/2009 456 1985/21/2009 354 189 6/6/2009 453 2315/22/2009 436 301 6/7/2009 523 3035/23/2009 645 403 6/8/2009 435 3525/24/2009 367 300 6/9/2009 543 3425/25/2009 564 402 6/10/2009 435 2415/26/2009 453 275 6/11/2009 564 3125/27/2009 543 305 6/12/2009 543 3095/28/2009 453 436 6/13/2009 426 1895/29/2009 435 254 6/14/2009 534 2565/30/2009 546 345 6/15/2009 423 3525/31/2009 389 203 6/16/2009 498 423
6/17/2009 456 352
10
100200300400500600700800900
477
304
AVERAGE FOOT FALL AND TICKET SIZE PER DAY
#REF!
#REF!
AVERAGE NUMBER OF TICKET SIZE BASED ON MALE AND FEMALE:-
37
MALEFEMALE
0%
20%
40%
60%
80%
100%
162 304
AVERAGE NUMBER OF VISITORS PER DAY BASED ON GENDER
Considering the above chart it can be concluded that female visit more as compare to the male counterpart and hence reliance fresh owner should consider about the female and should take more care of female in the sphere of services,protection and product availibilty also.
AVERAGE NUMBER OF VISITOR BASED ON DIFFERENT AGE GROUP:-
7-15 YEAR 16-22 YEAR 23-32 YEAR 32-55 YEAR0
50
100
150
200
250
300
45
119149
6530
60
91
47
AVERAGE NUMBER OF VISITOR PER DAY BASED ON AGE
femalemale
if we consider the above chart it can be easily concluded that the people between the age group 23-32 visit more and more in the reliance fresh store and hence store manager should take care of this age group peoples so that they may captivate them by giving various discount or facilities etc.
38
The targets for the current month to any store are assigned according to the sales figures of the preceding month. Usually the target for the current month is greater than the sales achieved for the last month by 10-15 % in normal conditions. They can also exceed to almost 25% in some cases where there is large scale supply of stocks of certain kind seeing upon the arising opportunity for their sale.
STOREWISE REVENUE (All the figures are in lakhs)
SALES
Sr. No
Store code
Store Name
Area LMTD Achieved
MTD Target
MTD Achieved
MTD Archived %
LMTD Vs MTD
1 2118 SPG mart 4163 32.87 37.62 34.58 92 % 5 %2 2119 Trikuta hill 2234 8.66 9.55 8.84 93 % 2 %3 2120 Rathoid
C.R2111 17.60 20.25 17.59 87 % 0 %
4 2121 Vyas Enclave
2560 16.15 18.91 17.65 93 % 9 %
5 2122 L N Complex
4832 29.09 32.67 32.83 100 % 13 %
6 2377 M R Tower 1935 6.65 7.72 6.81 88 % 2 %7 2445 Eyelex
hinoo2800 20.26 26.47 22.58 85 % 11 %
8 2727 Prasad Motors
5764 20.03 22.96 21.08 92 % 5 %
9 2812 Booty More
2440 15.22 17.56 16.60 95 % 9 %
Result 28839 166.53 193.7 178.55 92 % 7 %
SPG mart
Trikuta hill
Rathoid C.R
Vyas Encla
ve
L N Complex
M R Tower
Eyelex hinoo
Prasa
d Moto
rs
Booty M
ore0
1020304050607080
37.62
9.5520.25 18.91
32.67
7.72
26.47 22.9617.56
34.58
8.84
17.59 17.65
32.83
6.81
22.58 21.0816.6
MTD TARGET AND ACHIEVED IN A PARTICULAR MONTH
MTD AchievedMTD Target
39
Reliance Retail calculates its input per store in form of sales / ft / day in total no. of hrs. of operation (from 7:00 AM till 9;30 PM). This cost of operation / input includes rentals, logistics cost, labor costs, electricity charges and up keep and maintenance charges. FTD (fixed till date) sale / sq ft. represents the break-even point for the company. In case of May 2009 FTD takes into consideration. 31st days of operation from 1st may 2009 to 31st may 2009. FTD sale/sq ft is assigned to each individual store from the Mumbai based headquarters of Reliance Retail
SALES / PER SQ FT. UPTO 31 ST MAY 2009
Sr. No Storecode Store Name Area FTD LMTD MTD
1 2118 SPG mart 4163 41.2 25.5 26.82 2119 Trikuta hill 2234 17.5 12.8 12.83 2120 Rathoid C.R 2111 34.1 26.9 26.94 2121 Vyas Enclave 2560 32.7 20.4 22.25 2122 L N Complex 4832 32.5 19.4 21.96 2377 M R Tower 1935 11.3 11.1 11.47 2445 Eyelex hinoo 2800 40.3 23.3 26.08 2727 Prasad
Motors5764 15.9 11.2 11.8
9 2812 Booty More 2440 24.0 20.1 21.9Result 28839 28.0 18.6 20.0
SPG mart
Trikuta hill
Rathoid C.R
Vyas Encla
ve
L N Complex
M R Tower
Eyelex hinoo
Prasa
d Moto
rs
Booty M
ore0
20
40
60
80
100
41.2
17.5
34.1 32.7 32.5
11.3
40.3
15.924
25.5
12.8
26.920.4 19.4
11.1
23.3
11.2
20.1
26.8
12.8
26.922.2 21.9
11.4
26
11.8
21.9
SALES PER SQUARE FT
MTDLMTDFTD
So it can be seen that none of the nine operating. Reliance fresh stores in Ranchi have been able to achieve their break-even point for the month of May 2009. Reliance Fresh stores are on verge of completing almost 2yrs of their operation in Ranchi district but they are yet to reach their breakeven point.
40
Out of the 47 Reliance fresh outlets in eastern region (including 9 from Ranchi) none have yet reached their BEP.The Company assigns gross margin of operation to each individuals stores based on their past performances of sales, inputs in current month, shrinkages and dumping.
GROSS MARGIN UPTO 31 ST MAY 2009
Sr. No Store code
Store Name AreaFTD LMTD MTD
1 2118 SPG mart 4163 15.3 % 15.8 % 14.5 %2 2119 Trikuta hill 2234 13.1 % 15.1 % 14.3 %3 2120 Rathoid C.R 2111 8.9 % 14.7 % 6.8 %4 2121 Vyas Enclave 2560 15.4 % 15.9 % 11.3 %5 2122 L N Complex 4832 12.1 % 14.7 % 13.1 %6 2377 M R Tower 1935 11.6 % 13.9 % 6.8 %7 2445 Eyelex hinoo 2800 15.0 % 16.2 % 15.5 %8 2727 Prasad Motors 5764 16.1 % 14.7 % 14.1 %9 2812 Booty More 2440 16.4 % 14.5 % 12.9 %
Result 28839 14.0 % 14.7 % 14.1 %
SPG mart
Trikuta hill
Rathoid C.R
Vyas Encla
ve
L N Complex
M R Tower
Eyelex hinoo
Prasad M
otors
Booty More
0.00%5.00%
10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%
15.30%13.10%
8.90%
15.40%12.10%11.60%
15.00%16.10%16.40%
15.80%15.10%
14.70%
15.90%14.70%13.90%
16.20%14.70%14.50%
14.50%14.30%
6.80%
11.30%13.10%
6.80%
15.50%14.10%12.90%
GROSS MARGIN UPTO 31ST MAY
Store Name MTD Store Name LMTD Store Name FTD
It can be seen that except store no Trikuta Hill, L N Complex & Eyelex, none of these stores have been able to give the assigned levels of gross margin.
Reliance Retail has a policy of not letting to exceed the shrinkage (loss of goods due to theft & pilferage) & dumping (loss of goods due to expiry) to individually exceed 2% of the total sales. It was observed that due to practices like better in-store upkeep, supply close to demand
41
, better surveillance etc. the shrinkage & dumping were restricted to the desired level in almost of the stores.
MONTH TILL DATE (MTD) DATA UPTO 31 ST 2009
Sr. No Store code
Store Name Area Shrink% Dump%
1 2118 SPG mart 4163 1.0 1.42 2119 Trikuta hill 2234 2.1 4.03 2120 Rathoid C.R 2111 0.9 3.44 2121 Vyas Enclave 2560 2.5 2.55 2122 L N Complex 4832 1.4 1.06 2377 M R Tower 1935 2.5 3.77 2445 Eyelex hinoo 2800 1.3 3.08 2727 Prasad Motors 5764 2.1 1.69 2812 Booty More 2440 -0.5 2.5
Result 28839 1.4 2.2
Trikuta hill store, Vyas Enclave store, & M R Tower had above restricted limit shrinkage & dumping. For Prasad motor store only % age & shrinkage was high.
Whereas in Rathod circular road ,Eyelex hinoo & Booty more store only (%) age dumping was high than the restricted limit.
Number of tickets means the total number purchases that were made during the entire month.
42
NUMBER OF TICKETS SIZE:-
Sr. No Store code
Store Name Area FTD MTD
1 2118 SPG mart 4163 576 15,2382 2119 Trikuta hill 2234 309 7,9253 2120 Rathoid C.R 2111 460 13,7664 2121 Vyas Enclave 2560 573 14,8925 2122 L N Complex 4832 634 17,0746 2377 M R Tower 1935 237 8,3017 2445 Eyelex hinoo 2800 532 12,8178 2727 Prasad Motors 5764 537 14,5709 2812 Booty More 2440 340 11,010
Result 28839 4189 115,593
It was observed that against the target on only 4189 purchase all the 9 Reliance Fresh stores of Ranchi registered combinedly 115,593 purchases.
Sales / tickets (ticket size) FTD represents the value of sales per purchase that the stores should make in order to reach the BEP margin.
Sales /ticket (MTD) represents the value of sales per purchase actually achieved by the store.
SALES PER TICKETS DATA UPTO 31 ST MAY 2009:-
Sr. No Store code
Store Name Area FTD MTD
1 2118 SPG mart 4163 298 2272 2119 Trikuta hill 2234 126 1123 2120 Rathod C.R 2111 156 1284 2121 Vyas Enclave 2560 146 1185 2122 L N Complex 4832 248 1926 2377 M R Tower 1935 92 827 2445 Eyelex hinoo 2800 212 1768 2727 Prasad Motors 5764 170 1459 2812 Booty More 2440 172 151
Result 28839 192 154
43
SPG m
art
Triku
ta hill
Rathod C.R
Vyas E
nclave
L N Complex
M R Tower
Eyelex h
inoo
Prasad
Moto
rs
Booty More
0%10%20%30%40%50%60%70%80%90%
100%4163 2234 2111 2560 4832 1935 2800
57642440
298 126 156 146 248 92 212 170 172227 112 128 118 192 82 176 145 151
SALES PER TICKET
MTDFTDArea
In this case also it was seen that none of the 9 stores have reached the BEP.
Reliance retail expected its Reliance Fresh venture to reach its BEP within a span of 1 – 1.5 of their operation and to become a profit making entity after that out of 9 stores in Ranchi all have completed their at least 1 – 2 years of existences but are yet to achieve their BEP.
RECOMMENDATION
COMMUNICATION:
Based on my ovservation I found that reliance fresh is not able to make an advertisement properly as compare to big bazaar or other retail store which is its competitor. so company should make a proper team to let the people aware about their schemes and offers being given by reliance fresh.
Company should increase the number of counter so that it may minimize the quie of the customers.
Company should acquire more and more skilled people so that it may satisfied their customer in all areas.
PROMTNESS IN SERVICES:
Company should pay kind attention towards the existing customer and try to provide them quick response in the sphere of services so that they become BSNL’S loyal customers.
Many corporate houses was there who were reluctant to use bsnl lease line provided that someone assure them to have a promt services from them.
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SCHEMES:
Main competitor Airtel Tata and Reliance comes with various schemes and margins on the other hand Bsnl is not giving any sort of scheme and discount that is why many clients were inclined toward using the lease line offered by other players..
After all business is all about profit and retailer wants some profit and margins.
BEHAVIOR AND COMMITMENT:
Behavior and commitments of sales man towards the dry outlets should be improved.
CONCLUSION
It was a pleasant experience to have a summer project in a big company like BSNL. It has given me an opportunity to know all dimensions of the market and how to tackle problems of it .I have learned various functions carried out at all the level of organization especially of middle level and lower level. After a rigorous period of my project I come to know that how practical knowledge is different from the theoretical concepts.
I was supposed to do project in Delhi where BSNL is playing major role in the field of telecommunication having a market share of approximately 73% .Other players are Airtel Reliance and Tata.india has a large market size and it is increasing day by day.
From the survey and analysis of data it can be concluded that still there is a big opportunity to convert small and big clients. But some how company is lagging behind in the era of cutthroat competition .company is unable to make good relationship with corporate clients.
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Main rival Airtel is trying to capture more market share with their new ideas and plan. As BSNL is concern the company should become liberal on his policies. Company should give the clients more facilities so that they may became new clients and may continue through it. The company also needs a proper marketing wing to operate well in this areas and accomplish the goal ,mission and vision of the company.
