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7/31/2019 Reliance Fresh New

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AGENDA

Market Analysis

Introduction

Marketing Mix

Business Strategy

Controversies

SWOT Analysis


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Retail

US$395.96Bn

Wal Mart

US$400 Bn


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MARKET ANALYSIS 95% of Indias retail sector small, family-run

stores.

India's retail sector- 5th largest sector in the worldwith a CAGR of 10% contributing 22% to GDP.

Introduction of new formats departmentalstores, hypermarkets, supermarkets and specialtystores.

Food dominates the shopping basket in India.

Country Consumption

US 9.7%

Japan and Britain 15%

India 53%


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Reliance

Retail Ltd

RelianceHypermart

RelianceWellness

RelianceHome Store

RelianceFresh


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INTRODUCTION Reliance Fresh Establishment : 30TH Oct 2006AIM:

To Bring high quality fresh food to customers ataffordable price.

Chairman : Mr. Mukesh Ambani. CEO : Mr. Gurinder Kapoor.

Tagline:

Your Friendly Neighborhood Store.

First Outlet: Hyderabad (Banjara Hills)

Headquarter: Mumbai

Total No. of outlets: 560


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-600

-500

-400

-300

-200

-100

02009 2010

-557

-7

-249

-135

Reliance retail Ltd

Reliance Fresh


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PRODUCTS Vegetables and fruits House hold items Food and beverages All premiere brand + Private

label Groceries only private label Dairy products Non-veg food items Ready to eat items In-house brand Reliance Select

PRIVATE LABELS

Maximum Space: Own Products

Less Space: Nestle Maggi, MTR Masala, Pepsi

Lays Chips.


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RELIANCE SELECT

Covers :

pulses

rice spices

Vegetables

Fruits

Dairy


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PLACE Each of our stores aim at catchments of only

about 2,000 households in a 2-3

Observation: Close to cross roads .

Almost in all major areas in city.


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PROMOTION Main idea make bulk purchase

Discount scheme days Saturday and

Sunday

Reliance fresh membership card RelianceOne

In store promotion through Danglers, AudioMaterial, Leaflets,C.C.A.(Customer Care

Associate)


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PRICE Most Competitive Prices

Low prized private labels

Discount on bulk buying


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TARGET MARKET Upper Middle Class and Middle Class.

Urban, SemiUrban Areas.

Age Group 20-45 years.


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MAJOR COMPETITORS Spencers Big Bazaar

More

Other Players Bharati Retail

Godrej Aadhar ITC Chaupal Fresh

Hariyali Kissan Bazaar


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BUSINESS STRATEGY


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SUPPLIERS

Fruits & VegetablesLocal Farmers

Other grocery-- Andhra Pradesh, Karnataka andTamil Nadu

Training to farmers

Produce as per market requirements

Contract Farming


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COLLECTION CENTERS Main Source of 95% of fresh fruits and vegetables

Farmers

New concept of Ranger Farms - Set up of collectioncentres across the State.

Cleaning, grading and packaging of produce.Advantages

- Elimination of middlemen

- Cost Reduction

- Improving quality.- Payment to farmers in cash.

- Fair price for quality produce.

- Employment Generation.


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CONTROVERSIES Local vegetable vendors in Jharkand attacked the

stores claiming that they were snatching theirlivelihood.

In August 2007, Uttar Pradesh Chief MinisterMayawati ordered to close 10 new stores keepingview of Law & order situation.

In November 2007, Reliance Fresh stores are

attacked by Bharatiya Janshakti Party supportersheaded by Uma Bharti.

Bhubaneswar: Traders and roadside vendors

opposed the opening of Reliance Fresh outlets inOrissa on Saturda formin a suicide s uad


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Shortcomings

Improper Market research

Conservative Mindset of buyers in Mysore

Local vendors though offered a job, didnt take upand opposed instead.

Corrective Actions

Started Working as supplier to local vendors Changed Product Offerings in some outlets


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SWOT ANALYSIS Strengths

- Private label sale own products (RelianceSelect)

- Contract Farming

- Low prices.

Weaknesses

-No credit facility.-No differential pricing in case of vegetables .

-Lack of skilled human resources for store operations


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SWOT ANALYSIS Opportunities

- Retailing concept is into growth stage.

- Opportunity to capture the market.

Threats

- Climatic conditions across the country .

- High Petrol prices .

- Government policies.


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THANK YOU!!!!

reliance fresh new

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