A SURVEY ON RELIANCE FRESH OUTLET

(INTERMEDIARIES HAVE A GREATER RESPONSIBILITY IN MARKETING

PRODUCTS AND SERVICES)

MBA I (2010-2012)

PRESENTED BY: GUIDED BY:

SUVANJAN GHOSH (10202237) [Link] DAS

VARUN OBEROI (10202234)

ANKUR MISHRA (10202233)

RANDHIR RANJAN (10202232)

DEBAJYOTI RAHA (10202236)

 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.

We would like to thank our professor [Link] DAS who was always there to
help and guide us when we needed help. His perceptive criticism kept us working
to make this project more full proof. We are thankful to him for his encouraging
and valuable support. Working under him was an extremely knowledgeable and
enriching experience for us. We are very thankful to him for all the value addition
and enhancement done to us.
Above all we shall thank our friends of section D who constantly encouraged and
us so that we would enable to do this work successfully.

Signatures:
 DECLARATION

It is hereby declare that the project report entitled survey on “RELIANCE FRESH”
submitted for the degree of Master of Business Administration, is our original
work and the project report has not formed the basis for the award of any diploma,
degree, associate ship, 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: Bhubaneswar
Date: Suvanjan Gosh (10202237)
Varun Oberoi (10202234)
Ankur Misra (10202233)
Randhir Ranjan (10202232)
Debajyoti Raha (10202236)
 INDEXES

PARTICULARS [Link].
AN OVERVIEW OF RETAIL INDUSTRIES IN INDIA 1.1-1.2

RETAIL INDUSTRIES IN INDIA 1.1

GIANT CORPORATIONS 1.2

AN OVERVIEW OF RELIENCE RETAIL LIMITED 2.1-2.3

RELIENCE RETAIL LIMITED 2.1

BOARD OF DIRECTORS 2.3

AN OVERVIEW OF RELIENCE FRESH IN BHUBANESWAR 3.1-3.5

RELIENCE FRESH 3.1

SWOT ANALYSIS 3.2
RELIENCE FRESH IN BHUBANESWAR 3.3
PRODUCT AVAILABILITY 3.4
STORE DESIGN 3.5

OBJECTIVES RESEARCH & METHODOLOGY 4.1-4.4

OBJECTIVES & MARKET RESEARCH 4.1

TYPES OF RESEARCH 4.2
TYPES OF DATA COLLECTIONS USED 4.2
SAMPLING,RESEARCH DESIGN 4.3
HYPOTHESIS TESTING 4.3
LIMITATIONS & PURPOSE OF SURVEY 4.4

MARKETING MIX OF RELIENCE FRESH 5.1-5.2

PRODUCT RANGE,PLACE 5.1

PRICE,PRIVATE TRAVELS 5.2

PROMOTION 5.2
PARTICULARS [Link].
MARKET INTERMEDIATERIES OF RELIENCE FRESH 6.1-6.8

MARKET INTERMEIATERIES & THEIR ROLES 6.1

SUPPLY CHAIN 6.2
CHANNEL DESIGN 6.6

MEMBERS AND THEIR ROLES 6.7

FARM TO FORK MODEL 6.8

DAILY ACTIVITIES OF RELIENCE FRESH 7

FUTURE PLANS OF RELIENCE FRESH 8

RECOMMENDATIONS 9

CONCLUSION 10

BIBLOGRAPHY 11

ANNEXURES 12.1-12.2

QUESTIONNARIES 12.1
FINDINGS 12.2
 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.
 AN

OVERVIEW

OF

RETAIL INDUSTRIES

IN

INDIA
 RETAIL INDUSTRIES IN INDIA

India is a land of retail democracy- hundreds of thousands of weekly haats

and bazaars are located across the length and breadth of our country by
people’s own self-organizational capacities. Our Streets are bazaars –
lively, vibrant, and safe and the source of livelihood for millions. India has
the highest shop density in the world, with 11 outlets per 1000 people. This
does not include the village haats.
Our retail democracy is characterized by:
1. High levels of livelihoods in retail with nearly 40 million employed
which accounts for 8%of the employment and 4% of the entire population.
2. High levels of self - organization.
3. Low capital input
4. High levels of decentralization

Retail in India has started with the concept of weekly markets, where all
the traders gather at one big place to sell their products every week. The
people come to these weekly markets to buy the Household items for the
next one week. Village fairs and melas were also common as it had more of
an entertainment value. Once the people started getting busy with their
lives and when they turned entrepreneurial, there emerged the mom and
pop shops and the kiranas in the neighborhood. After independence, came
into existence the system of Public distribution of foods through the ration
shops, where food grains, sugar and oil for the daily consumption were
distributed at subsidized rates through the government ration shops. The
modern corporate retail formats are of the exclusive brand outlets,
hypermarkets and supermarkets, departmental tores and shopping malls.
But still the Indian consumer depends on the self-organized retail shops for
their daily needs.

This is largely due to the excellent food retailing system that was
established by the Kirana (mom and-pop) stores that continue meet with all
the requirements of retail requirements albeit without the convenience of
the shopping as provided by the retail chains. The Hawkers/lari Galla
vendors.
and the local kiranas are the two main forms of unorganized retail in the
country, which almost account for 97% of the total retail trade.

GIANT CORPORATIONS

Giant corporations like Wal-Mart and Reliance have started to try and take
over the Indian retail sector. The entry of the giant corporate retail in
India’s food market will have direct impact on India’s 650 million farmers
and 40 million people employed in tiny retail. More than 6600 mega stores
are planned with Rs. 40,000 crore by 2011.
Our case is intended to cover two primary objectives which are:

First, when experts and giants like future group Wal-Mart and Reliance
they are ready to start operations in retail what kind of strategies and
structure they would have to get the competitive edge over each other and
established small and unorganized retailers.
Second, what kind of impact has been on other retailers including
unorganized ones with the opening of Reliance Fresh stores?

In the following case findings about Reliance Fresh were quite awakening
and exemplary.
Even after recent shutdown of Reliance fresh stores from UP and
unwelcoming vibes from states like Kerala, West Bengal, Orissa and
Jharkhand for its retail format (which was allegedly capturing the
unorganized sector and leaving thousands of self employed people jobless)
Reliance was not in any mood to hamper its 25000 crore plan. Reliance
responded with superb strategy in which it shifted its focus from retailer to
being a supplier i.e. targeting hawkers, vendors, Push cart wheelers instead
of customers.

Big retailers like Reliance have huge resources and network which directly
impacted many of the retailers some of whom are planning to quit. In our
sample size of 75 retailers more than 30 agreed to have lost as much as 50%
of their sales.
This case also discusses pros and cons of contract farming which on one
part assures farmers of price for their crop and knowledge about
Fertilizers and seed but on other side has some obvious drawbacks like
monopoly of big retailers.

As a big market in which organized sector is poised to grow with 25%

- 30% annually our government must come with
appropriate regulations to save small retailers and
our agricultural sector.

AN

OVERVIEW

OF

RELIANCE

RETAIL LIMITED
 RELIANCE RETAIL LIMITED

Reliance Retail is the retail chain division of Reliance Industries of India which is
headed byMukesh Ambani. Reliance Industries Chairman Mukesh Ambani has
unveiled a Rs. 25,000-crore
($5.60 billion) retail plan for the company on June 26, 2006. Mukesh Ambani has
called this Starting of reliance retail as an idea which has the potential to
revolutionize the Indian socioeconomic framework. He said "Conceptually,
Reliance is creating a virtuous circle of prosperity by bringing farmers, small
shopkeepers and consumers in a win- win partnership.” "A new company, Reliance
Retail Ltd. (RRL) will spearhead this revolution. Reliance Industries will have a
100 percent stake in RRL, save for employee stock options".

THE RELIANCE EMPIRE

Reliance being the all encompassing company has entered into all the sectors, retail
being their latest.

Reliance Industries Limited

Chairman and Managing Director : Mukesh Ambani

Market Capitalization : INR 39,609,150,020 (Sept, 2006)
Total Shares Outstanding : 22,405,900 (Sept, 2006)
Closely Held Shares : 11,365,943
Sales : INR 10,512,963,000
According to the company website "1 out of every 4 investors in India is a
Reliance shareholder. RIL is ranked at 342 in the 2006 Fortune Global 500 list
among the world’s largest corporations.

Reliance recorded a profit of 8.9% on assets - first among the 38 chemical

companies in Asia.

In terms of market cap, Reliance Industries ranks third among chemical

companies in Asia, with a market cap of $6087.2 million as on October 19,
2001.

Reliance's total sales, at $6232 million, ranked eighth among the 38 Asian
chemical companies.
Reliance's total sales have gone up substantially from 1996 when the
company recorded 2.5 billion.

Company with the highest refining capacity in India-60mpta.

At Jhajjar, Haryana (Area covered 25, 000 acres) (Nature of SEZ-Multi product)
Reliance SEZ in Raigad (Area covered- 10,000 hectares)

Reliance Fresh is the convenience store format which a part of Reliance Retail
limited, a fully subsidiary of Reliance Industries Limited. Reliance plans to invest
Rs 25000 crores in the next 4 years in their retail division.
RRL launched its first store in Hyderabad in November 2006; major focus was on
selling fresh fruits and vegetables at lower prices by eliminating the middle men
and intermediaries. Now it has more than 560 reliance fresh outlets across the
country of which 117 are in Delhi and plans to increase this number to 784 to have
pan-India presence by 2011. These stores sell fresh fruits and vegetables, staples,
groceries, fresh juice bars dairy products and non vegetarian products.
Stores, size varying from 2000-4000 sq ft, are located in the radius of 1-2 km of
each other providing a good coverage of the area. Reliance retail has decided to
reduce its exposure to fruit and vegetable business and position itself as a pure play
super market and will focus on categories like food, auto accessories, FMCG, with
food accounting for most of its business.

BOARD OF DIRECTORS

   

Mukesh D. Ambani
Chairman & Managing  

Director

[Link]
Nikhil R. Meswani Hital R. Meswani
Executive
Executive Director Executive Director
Director
 AN

OVERVIEW

OF

RELIANCE FRESH

IN
BHUBANESWAR
 RELIANCE FRESH

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 price.
 SWOT ANALYSIS

STRENGTH Private label sales-own

products(RELIENCE SELECT)
Contract farming
Network-1600 channels in
village.

WEAKNESS Poor inventory control

Staff-lack knowledge about
products
Parking

OPPORTUNATIES Farmer to fork no middlemen

farmer-customers
Hundreds of farmer-1million
farmer next 5 years.

THREAT International retail giants

Carrefour, metro [Link].
Bharti-Wallarmart (Farm to fork)
opening costs are too high.
 RELIANCE FRESH IN BHUBANESWAR

Bhubaneswar the capital of Orissa has a population of 1000000 as per the 2009
census with a fair average income. Therefore undoubtedly Bhubaneswar is the
target of many retail chains and reliance is not a exceptional to it. The population
and purchasing habit of Bhubaneswar has resulted in 7 reliance store in
Bhubaneswar. For the convince of the project the store situated near Ravi talkies
square has been selected.
 PROUCT AVAILABILITY

Although Reliance fresh is mainly concerned about stocking fresh vegetable and
fruits but due to some political controversy they mainly focus on the household
products and MCG products.

THE PRODUCTS DETAILS ARE LISTED BELOW:

Fresh fruits
Vegetables
Chocolates
Confectionaries
Cold drinks
Freeze items like butter
Ice-cream
Households products
Toilet Items
Special and Dry foods
Office Stationeries

The products are displayed in selves in such a height so that they can be easily
availed by the customers can compare the product specifications and price.
 STORE DESIGN

The store is designed and maintained in a very systematic manner. Like as the
chocolates are loved to have some at last moment of their shopping.
 OBJECTIVES

RESEARCH

&

METHODOLOGY
 OBJECTIVES:

It is the organizational study

identify the reliance market intermediateries in Bhubaneswar
We provide information to reliance fresh to focus
On middle class consumers in Bhubaneswar
Implementation of this plan should not affect others

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

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 the tentative and speculative.

CASUAL 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

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 OF DATA COLLECTION USED

Basically there are two types of data which are used in marketing research process.

1. PRIMARY DATA

Observation
Interview
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.
 SURVEY: There are mainly three types of surveys, depending upon the
method of data gathering used: Personal surveys, telephone surveys and mail
surveys.

ADVANTAGES OF THE SURVEY

Wider Distribution
Less Distribution bias
Thoughtful reply

The primary data under processing is collected from both direct filling the
questionnaires and through telephone interviews also.

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:

Bibliography
Directories
Televisions
Newspapers
Journals
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
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 – Questionnaires

HYPOTHESIS TESTING

The hypothesis tested on both reliance fresh and people of Bhubaneswar

H0: Reliance fresh is not famous & not significant in Bhubaneswar.
H1: Reliance fresh is famous & highly significant in Bhubaneswar.
 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 Bhubaneswar city
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 Bhubaneswar city
Last but not least time constraint.

PURPOSE OF SURVEY
To show that market intermediaries have a greater responsibility in
marketing products and services
MARKETING MIX

OF

RELIANCE FRESH
 MARKETING MIX

In order to satisfy the needs of customer each and every business house must have
an appropriate marketing mix. According to Stanton, “Marketing mix is the term
used to described the combination of 4 inputs which constitute the core of the
company’s marketing system- The product, the price structure, the promotional
activities and the distribution system”
The 4 elements of marketing mix are closely interrelated because decision in one
area usually effect actions in other [Link] Carthy refers to 4 key variables in
marketing mix which he called the 4 P’s product, price, place, promotion.

PRODUCT RANGE:

The most powerful instrument in the hands of the marketing manager is the
product mix.
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

PLACE:
A marketing manager has to develop and institutional structure for making the
product available.

Located in small commercial complexes close to 3-4 residential areas

Observation: Close to cross roads
Almost in all Major areas like N4 IRC village, Khordha Buddha
Nagar,Gopabandhu Nagar, Shaid Nagar, Baramunda
PRICE:

Price is an important consideration that would make the organization success.

Low prized private labels

Discount on bulk buying

PRIVATE LABELS:

Maximum Space: Own Products

Less Space: Nestle Maggi, MTR Masala, Pepsi, and Lay’s Chips.
Reasons: High Margin

PROMOTION:

Promotion deals with informing and persuading the customers regarding the
products of the firm.

Main idea – make bulk purchase

Discount scheme days – Saturday and Sunday
Reliance fresh membership card – Reliance One
MARKET INTERMEDIATERIES

OF

RELIANCE FRESH
 MARKET INTERMEDIARIES

Market intermediaries are either business houses or individuals who come to the
aid of the company in promoting, selling and distributing the goals to the ultimate
consumers. They are middleman (wholesalers, retailers, agents) distributing
agencies, market service and financial institutions. The various kinds of market
intermediaries are agents, brokers, retailers wholesalers, commission houses,
Industrial stores.

ROLES OF MARKET INTERMEDIARIES

Market intermediaries reduce transactions to an optimum number.

Market intermediaries are capable of eliminating discrepancies in quality
that is distributed.
The producer can concentrate on the production function leaving the
marketing problem to the intermediaries who specialize in the line.
The chief function of selling intermediaries is to assemble the goods from
many producers in such a manner that a customer could effect purchase with
ease.
The matching process is undertaken by performing the functions.
Contracting, Sorting, Inventory, Transmitting, Marketing information.

Marketing intermediaries collect huge order and purchase in bulk from the
producers. These enable a manufacturer to undertake a large-scale
production.
Market intermediaries help to stabilize the price too. By stocking goods,
constant flow of goods to the market is assured. This equalizes demand and
supply factors which stabilizes prices not only in single market but also
maintains the same price level in all markets.
 SUPPLY CHAIN

The supply chain is a longer channel stretching from raw materials to

components to final products that are carried to final buyers. Reliance
started its retail operations of Reliance Fresh stores with following
supply chain model. Procuring directly from the farmers and
operating with moderate margin but mass selling was key to Relience
fresh operation for
First few months. The following figure depicts the first Reliance fresh
model:

Fa
rm n
ers
Ow rtatio
nT n spo
ran COLLECTION POINT/UNIT n Tra
s po w
r ta ers O
tio rm
n Fa

RELIANCE OWN
LOGISTICS

PROCESSING UNIT/POINT
RF tics Re
is lia RF
g nc
Lo e
wn ow
eo n Lo
nc gis
e lia tic
R s

RELIANCE FRESH OUTLETS RELIANCE FRESH OUTLETS RELIANCE FRESH OUTLETS

 MODEL 1

But things always don’t turn out to be the same as planned. Opposition against
Reliance fresh outlets in U.P soon interrupted the momentum .Reliance wished
to go with. Bowing to mass opposition from local shopkeepers, the company
closed down 20 Reliance Fresh stores in Noida and Ghaziabad. A company
insider said that Reliance Retail was being forced to exit UP owing to what he
described as the “vindictive approach” of the state government. Within the
month company started operations in Luck now and Varanasi with 14 stores,
stores had to be soon closed down following violent protests by local traders.
After the protests, the state government instructed all standalone food &
grocery stores run by corporate to close down. Similar things followed in NCR
and Ghaziabad. The strategic importance of UP for a large-scale retailer like
Reliance was not limited to it being a large consumer market. The state is
extremely important from the sourcing point of view as well. The Gangetic
plain in the state is considered to be one of the most fertile agricultural belts in
the country. Reliance’s food & grocery business was in the line of fire, because
of the popular perception of Reliance being the most ‘powerful’ business
conglomerate in the country. This is evident from the fact that widespread
political protests to corporate participation in retail started only after Reliance
announced its roll-out plans. Companies like Kishore Biyani’s Future group,
Subhiksha and Spencer’s have had operations in this format long before without
encountering major problems. Moreover, the positioning of the Reliance Fresh
format (small convenience stores) puts it in direct competition not only with
neighborhood kirana stores, but also with small fruit and vegetable vendors. At
this point of time future and ambitions of 25000 Crore Reliance retail started
falling under clouds.
 UPDATED POLICY

From grocery, Reliance Retail plans shift to supply:

Reliance Retail was faced with massive opposition from the trading community.
But like every great visionary Reliance had a prepared back-up, and this time it
was much more powerful than the earlier one, throwing solutions to every
previous dilemma.
In a dramatic shift, it decided to turn into a trader itself. It is entering the food-
trading business as part of a major restructuring of its food and grocery
initiative.
The split has occurred because Reliance has realized that there is money to be
made, may be more, in simple commodity trading, especially with food prices
likely to go through the roof next year. As a result of this restructuring,
Reliance Retail is setting up shop in mandis to sell fruits, vegetables and
staples. It would thus be able to profit from commodity trading without
worrying about the steep overheads and discounts that tied its hands in its avatar
as Reliance Fresh. It would also allow the company to sell to a wide range of
customers, including wholesalers, other traders, and retailers. A source said the
company has already signed up with Spencer retail chains to supply cut fruits
and vegetables. Till now, the Reliance supply chain was dedicated to meeting
the needs of Reliance Fresh shops.
 MODEL 2

WHOLESALE TRADING

Reliance formalized its second supply chain model to shift itself from grocery
retailer to grocery supplier by focusing and establishing itself in Mandi’s.
In processing centers workers wearing balaclavas, woolen trousers and bulky
jackets work inside a room kept at a constant 3oC, peeling and chopping
vegetables, spinning them dry and then heaping them in small plastic packets
before placing them in plastic transport crates. The model2 depects the Relience
fresh.

FARMHOUSE ON CONTRACT
FARMHOUSE ON CONTRACT
FARMERS

Re
lian s
ce gi stic
Ow o
nL wnL
og O
is ce
Cold Trucks, tics elian
R
TATA 407, 408, LP PROCESSING UNIT/POINT
RELIANCE OWN
LOGISTICS

WHOLESALE MANDI’S
WHOLESALE MANDI’S
s
i s tic WHOLESALE MANDI’S Re
og lia
nL
nc
eo
ow wn
ce Lo
an
gis
l i tic
Re
s

RELIANCE FRESH OUTLET RELIANCE FRESH OUTLETS RELIANCE FRESH OUTLETS

 CHANNEL DESIGN

The vegetables are collected in villages from farmers directly.

They are submitted to Collection Centers (CC) like Bhuma Nagar, Shaid
Nagar, Baramunda, Khordha Buddha Nagar,etc.

Payment and quality checks are done in collection centers.

From CC they are transferred to Distribution Centers (DC) via Reliance own
logistical units.

MEMBERS AND THEIR ROLES

FARMERS: The farmers harvest the crop and bring it to the collection
centre. They save on the transportation cost they would incur in taking the
vegetables to the mandi.
COLLECTION CENTRE: One Reliance authorized person is in charge of
collection centre. He inspects the quality and takes in the vegetables. He is
also responsible for payment of the farmers. He ensures the loading of all
vegetables in the trucks which are sent to the DC.
NATIONAL SOURCING: In order to provide a constant supply of all
perishable vegetables warehouses have been bought where goods are kept in
cold storage. Whenever there is a shortage in supply from any region then,
these warehouses
MANDI: A team of two people is situated at the mandi. These teams are
responsible for constantly monitoring the rates and communicating the same
to the head office. If there is an urgent need which cannot be fulfilled by the
collection centre then reliance purchases the supply directly from mandi but
at a rate which is 3%-4% less than the actual mandi rate.
DISTRIBUTION CENTRE: The distribution centre receives the vegetables
and does a thorough quality check. They prepare the vegetables for the retail
stores and also ship the vegetables depending on the requirement for each
store.
RETAIL STORES: They are just responsible for receiving and checking the
quantity of vegetables arriving each night. Then they put up all good
vegetables on display for customers.

FARM TO FORK MODEL

The farm to fork model consists of seven steps which are shown in the figure given
below:

TRADITIONAL MODEL RETAIL RELIANCE MODEL “FARM TO FORK”

DAILY ACTIVITIES OF RELIANCE FRESH

Reliance Fresh was blessing in disguise of a store when it opened. The quality of
fruits and vegetables was amazing. So fresh, so photo-like! We were happily
surprised. It made shopping for groceries and fruits and vegetables not only
convenient but also a fun activity. This is because Relience fresh perform certain
daily activity which are as follows:

Milk Indenting
Milk Receivable
Morning Brietive
Job Allocation
Store Performance(Morning)
Bread Indenting
Update Reports
[Link](Afternoon)
Dump
Mark down
GRN Deposit
Footfall Report

Besides this Relience fresh also perform other activities like:

Home retailing
Catalogue retailing
Direct respond retailing
Automatic Vending
Electronic retailing

FUTURE PLAN OF RELIANCE FRESH

 Plans to invest Rs 25000 Crore in next 4 year in their retail division

Every Indian Consumer

Train students and housewives – Customer care & Quality service – Part
time job

New format of food and café – Reliance food

Private label sale – Kirana store

Pharmacy retail store

6000 outlets – 784 cities

Launch soaps, detergents, cosmetics and non FMCG products – Private

label

RECOMENDATIONS

COMMUNICATION:
 Based on our observation we 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 queue of the customers.
Company should acquire more and more skilled people so that it may
satisfy their customer in all areas.

PROMTNESS IN SERVICES:

Relience fresh should pay kind attention towards the existing customer and
try to provide them quick response in the sphere of services so that they
become loyal.

BEHAVIOR AND COMMITMENT:

Behavior and commitments of sales man towards the dry outlets should be
improved.
Expand service
Give training to staff
Improve inventory control

CONCLUSION
It was a pleasant experience to have a survey in a Relience fresh 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 our survey we
come to know that how practical knowledge is different from the theoretical
concepts.

From the survey we conclude that:

Still reliance fresh gets the support of most favorable brand for the every
consumer.
Bigbazar food items also favorable but not that much.
Favorable customer told bigbazar service is not so good.
The trend of the people is changing very fast in accepting the new brands
if it fulfills the requirements of the customer.
People shifting to reliance fresh very rapidly.
If bigbazar unable to adopt themselves through necessary changes then
reliance fresh becomes the market leader in the near future.

BIBLOGRAPHY
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Marketing Management by [Link]

 QUESTIONNARES

1. Whenever you are in need of food what name comes first in your mind?
i. Reliance fresh ( ) ii. Big bazaar ( )
2. Are you a loyal customer of the brand you prefer to use or you switch over to
different brand.
i. Loyal Customer ( ) ii. Switch Over ( )
3. Do you think there is volatility, barriers to entry for new comers and growth
prospect of the market is a matter of concern for these brands?
i. Yes ( ) ii. No ( ) iii. Can’t Say ( )
4. Which one among these you think has got the most geographical spread
(internationally)?
i. Reliance fresh ( ) ii. Big bazaar ( )
5. Which one of these brands provides the product and service according to the
consumer’s needs and convenience?
i. Reliance fresh ( ) ii. Big bazaar ( )
6. According to you who give the best support in respect of advertisement and
consumer awareness campaign while promoting their brand?
i. Reliance fresh ( ) ii. Big bazaar ( )
7. At the time of purchasing a particular product or brand – do you concerned
about the owners legal right, the registered trade mark etc. of that brand?
i. Yes ( ) ii. No ( )
8. Whether you checked all these brands has got this information or not?
i. Yes ( ) ii. No ( )
 FINDINGS

We found that according to the first criteria of reliance fresh (leadership) all
food products take the leadership position in the market.

In the second criteria (stability) we found that both reliance fresh food items
& big bazaar food items gets the same ranking according to the consumer.

In the third criteria (market) we found consumer think that trading

environment of these branded products in terms of growth prospect is very
good, market is also volatile & barriers to entry is almost nil.
In the fourth criteria(Geographical spread) we found customer think that
reliance fresh food item has the better geographical spread than big bazaar
food items reliance fresh is a small retail store & till now it has the better
spread in comparison to the bigbazar.

In the fifth criteria (trend) we found customers trends in choosing the

particular brand comes out from the service point of, they told that till now
every food items available in the reliance fresh & bigbazar also but we are
satisfied in reliance fresh.

In the sixth criteria (support) we found that both reliance fresh &big bazaar
have the consistency in the market.

Reliance fresh & bigbazar also spent money in communication to the

customers about the brand and their usefulness we found reliance fresh food
items more aggressive in creating the awareness to the customer than
bigbazar food items.

In the seventh &last criteria (protection) we found that all the brand we
choose have the owners legal title & registered trade mark.