Beruflich Dokumente
Kultur Dokumente
“Merchandise Planning”
By
Kshitij Anand
Submitted To
University Of Pune
In partial fulfillment of the requirement for the award of the degree of Master of
Business Administration (MBA)
Through
Pune-48
CHAPTER – I
EXECUTIVE SUMMARY
The project covers the various aspects & parameters considered for merchandise
planning in Reliance Fresh outlets. The main idea behind the study was to learn
directly from the market, what consumers demand in a particular catchment area
around each Reliance Fresh Store, so as to efficiently and effectively utilize every
square feet of floor area of the stores in order to cut the extra cost and increase
efficiency.
Although all the markets look the same, they have huge differences within them. The
customer, who is considered as the king in the retail sector, decides the kind of
product he wants to use and not what is offered.
The study was conducted through market survey in Delhi & NCR for different kirana
stores, confectionery shops, bakeries, and some organized retail stores. The project
also included preparation of a list of all the products in the particular area which are
stocked by most of the stores. The data was helpful for Reliance Fresh to maintain a
good stock for all those products which have a high demand.
2
CHAPTER – II
COMPANY PROFILE
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
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.
3
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, being the largest polyester yarn
and fibre producer in the world and among the top five to ten producers in the world
in major petrochemical products.
The Group exports products in excess of USD 7 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), Indian Petrochemicals
Corporation Limited and Reliance Industrial Infrastructure Limited.
4
About Reliance Retail
Wednesday, June 28, 2006 was when Reliance Industries finally announced its mega
foray into the Retail world. Calling retailing "the next big idea" in the company's
plans, Reliance chairman Mukesh Ambani said the petrochemicals giant would set up
a 100 per cent owned subsidiary, Reliance Retail, to "spearhead this revolution." The
company will initially infuse Rs.10,000 Crore into the retail setup and gradually
increase it to Rs. 25,000 Crore. Reliance Retail would have a footprint in 1,500 cities
and towns through convenience stores, supermarkets, speciality stores, and
hypermarkets; and will create 10 lakh jobs. The company would partner farmers,
logistics operators, small shopkeepers and traders in this initiative.
Reliance could emerge as the biggest single player in India's burgeoning retail
market. The spending power of its estimated 300 million strong middle class has
been on the rise, making the sector increasingly attractive to domestic and foreign
investors. India's retail market is estimated to be worth around $200 billion but it is
still hugely fragmented, with organised retail outlets comprising just two percent of
the sector. Reliance entry in this segment is set to change the dynamics in this sector.
Reliance is gearing up to revolutionize the retailing industry in India. Towards this
end, we are aggressively working on introducing a pan-India network of retail outlets
in multiple formats. A world class shopping environment, state of art technology, a
seamless supply chain infrastructure, a host of unique value-added services and above
all, unmatched customer experience, is what this initiative is all about.
The company is targeting to open 100 more Reliance Fresh stores in New Delhi alone
within four months, and a 1,000 new stores in 35 cities nationwide by the end of the
year with a built-up area of over 4 million sq.ft. An investment of Rs.8,000 crore is
envisaged for the NCR region alone.
5
Reliance Fresh stocks fresh fruits and vegetables, staples, fast moving consumer
goods and dairy products. The stores are already selling over 1,000 tonnes of fresh
produce daily and also 250 categories of commodities. The company is approaching
farmers directly for the procurement of produce, seeking to reduce the 40% wastage
that occurs through the traditional supply chain.
The retail initiative of Reliance will be without a parallel in size and spread and make
India proud. Ensuring better returns to Indian farmers and manufacturers and greater
value for the Indian consumer, both in quality and quantity, will be an integral feature
of this project. By creating value at all levels, we will actively endeavor to contribute
to India's growth.
The project will boast of a seamless supply chain infrastructure, unprecedented even
by world standards. Through multiple formats and a wide range of categories,
Reliance is aiming to touch almost every Indian customer and supplier.
6
CHAPTER – III
2.) Identifying & analyzing the pattern of product mix by Reliance & its
competitors,
3.) Identifying the most preferred SKU’s (Stock keeping units), area wise
7
CHAPTER – IV
MERCHANDISE PLANNING
It is a "systematic approach" in many ways. You need the systems to ensure that you
have the right people, the right processes and the right computerised support. Without
the people and processes you will get nowhere. The software available is merely an
enabler - the final piece of a jigsaw.
We achieve the goals "through planning sales and inventory". These two elements are
inextricably linked and finding an optimum balance is the key to retail success. We
are doing more here, though, than merely calculating a purchase quantity. We need to
balance carefully the requirement to support sales with the constraints and tensions
imposed by store layouts and warehousing and transportation issues.
We put the effort into Merchandise Planning "in order to increase profitability".
Profitability is the key driver of most businesses. Effective merchandise planning
delivers margin increases directly to the bottom line. We achieve the increase in
profitability "by maximising sales potential and minimising losses from mark - downs
8
and stock - outs". There are two major areas of profit leakage in retail. Firstly lost
sales resulting from lack of stock and secondly forced margin reductions due to
excessive stock.
How Does Merchandise Planning Fit Within The Business?
In order to be able to control the business, the directors will define the Critical
Success Factors (C.S.F.s) of the business. Achievement against these will be
measured using Key Performance Indicators (K.P.I.s). A K.P.I. is a measure, which,
if achieved or exceeded, means, in turn, that a critical success factor is being
achieved. These K.P.I.s will typically be a part of high level plans that provide
strategic direction over a period of several years.
In order for these high level plans to be implemented we need to turn them into
functionally based plans that can in turn be translated into concrete action. There may,
for example, be a C.S.F. of increasing bottom line profitability by 5%. This may be
translated into the setting of K.P.I.s in several discrete areas such as Human
Resources, Property Management and Merchandising.
Within Merchandising this goal might result in several K.P.I.s being set relating to
targets for buying-in margin, stock-holding levels and mark-down percentages. The
implementation and monitoring of a plan to meet these success factors will hopefully
result in the eventual purchase by a customer of a specific item in a store. If
measurement of the relevant K.P.I.s indicates that the success factors are being
achieved, then the plan has been successfully implemented. If not then urgent tactical
action may be required. This is why a plan must be seen as a living entity and not
something that is done once and discarded until the variances are discovered at the
end of the selling season.
9
Merchandise Planning needs to span the activities between setting long term , high
level goals for sales, margin and investment for the business, right down to the
allocation of space within an individual store for a defined S.K.U.. At each stage of
the planning process the high level goals are tested and inputs from functional
management enrich the detailed versions. Gaps are analysed and variances are
explained or reconciled.
The end result of the planning process should be a detailed set of targets (e.g. a
purchase order budget) and instructions (e.g. a planogram) that can be reconciled with
the original corporate targets, with any divergences being clearly explicable. These
plans may be numeric (an Open to Buy) or graphical (the results of range creation
collage software like that from Fashionyield, or space planning software like
Spaceman) It is equally important to realise what they are NOT. Merchandise
Planning is not a transactional process. Thus, setting a purchase order budget within
an Open to Buy system IS merchandise planning. Creating a purchase order is not.
Deciding how a certain line may be ranged and testing an allocation pattern is
planning. Creating the actual allocation is not.
• Review
• Merchandise planning
• Range planning
• Assortment planning
• Space planning
Review
The review process consists of two separate activities. Firstly we carry out a Pre-
Season Review of performance history to identify opportunities and problems.
10
Secondly we "normalise" it. Normalisation is the process of looking at history and
ironing out the "bumps" to make it useful as a basis for planning.
Merchandise Planning
The first element in the merchandise plan is the Strategic Plan. This is normally high
level, with perhaps a five year timescale. It is used to set the critical success factors
for merchandising in terms of sales, margins & stocks. Next we would create a
Channel Sales Budget. This would allow us to take into account the effect of new
channels, new stores, closures and refits. Once complete we would create a Category
Level Margin Plan. Here we are creating a weekly version of the strategic plan at
category level for sales, margins and markdowns.
We are now starting to get input from the individual merchandisers, and gap analysis
between these plans and the strategic plan will ensure that we stay on course. At the
same level we create a Category Level Weekly Sales, Stock & Intake Plan. It is here
that we create our Open to Buy, normally the first significant win in the
implementation of a planning system. These category level plans create the box
within which the range plan will be created
Range Planning
We begin here with the Assortment Plan. In this plan we break down the goals of the
merchandise plan into specific lines, or sometimes SKUs. The system should be
capable of extending the results so that we can see the effect on overall margin mix,
for example, of a change in cost price of an item.
Once the assortment plan is underway we can start Distribution Planning. The lines
that we plan are here given a distribution profile. From this we should be able to see
both which stores a line is ranged to, and which lines a given store will receive. The
link between available physical space and ranging done here is a key determinant of
merchandise performance.
In the ideal world we would now create a Line Level Weekly Sales, Stock & Intake
Plan This would be the category level W.S.S.I., broken down by line to provide a
detailed forecast of sales and stock requirements. However, volume & time
constraints means that this may be for key items only.
11
At a basic level this provides us with the means to monitor and react to consumer
demand. At a more sophisticated level this provides us with the hard currency that can
make efficient consumer response systems function effectively. The advent of e-
commerce is going to increase the value and importance of line level forecasts shared
with our suppliers.
There is another sort of assortment plan emerging now. This is the Graphical Range
Plan. This sort of plan moves out of the purely numeric type of planning that has been
used up until now and starts to allow the range to be put together in a visual way.
Typically digitally stored images are manipulated into collage type storyboards.
Assortment planning
Implementing an effective assortment planning process may be the key to offering the
right products to the right customers.
The old adage, the right product, the right place, at the right time, still holds true in
today's retail marketplace, but with one important change. Retailers - whether
traditional, e-commerce or bricks-and-clicks - must have a compelling selection of
merchandise for the right customer as well. To determine the best course of action for
reaching the right customers, it is important to examine one of the most important
factors that impacts the merchandising process: Assortment planning.
Assortment planning - which involves asking questions such as: Which product? How
much of it? What colors? What sizes? Where to place it? Who is the target customer?
and so forth - although it directly affects product selection, price, timing and micro-
merchandising, has traditionally been de-emphasized due to hectic retail schedules.
Extinguishing delivery fires and meeting marketing and financial planning obligations
use valuable time, forcing companies to take the easy approach to merchandising:
repeating assortment breadth and depth from previous seasons, creating store
assortments based on store volume and ranking items by sales volume alone.
12
Yet, to attract the right customer in today's increasingly competitive environment,
assortment planning must focus on creating appropriate product breadth and depth
based on the customer's desires and shopping patterns, taking into account lifestyles,
climates and trends. Furthermore, assortment planning must present a compelling mix
of products to illustrate the company's strategic vision.
The primary benefits of effective assortment planning fall into two categories:
financial impact and personal impact.
Assortment planning breaks the Merchandise Plan down into the components that
enable the planner to address customer preference and need. These components are
product attributes, styles, colors, and SKUs. By addressing these components, the
assortment plan becomes the transition to the customer by way of the store.
13
The assortment plan, then, provides the most effective way to balance the presentation
of merchandise to the customer. The properly assorted presentation ensures enough
selection without overstocking and strikes the right balance between breadth (e.g.
number of styles) and depth (quantity of each style). In addition, the good assortment
plan considers seasonality, to provide the right merchandise flow.
Because assortment planning addresses the most detailed element of merchandising to
the customer - the items for sale - the process is often very detailed and time
consuming.
Space Planning
Space planning systems can be split into two types - numeric and visual. Numeric
planning systems simply allow users to take account of space available and to
calculate ratios like return on space. Visual systems allow users to create 3
dimensional walk-through models of the stores and to preview the look of a store once
ranging decisions have been made.
Choosing a product for your retail store to sell may very well be the most difficult
decision you will need to make when starting a retail business. The choices are
limitless and the task may be overwhelming at first. Not only should there be a
demand for your products, but it must be profitable and something you enjoy selling.
Before you commit to a product or product line, consider the following factors while
deciding what products to sell.
Marketability
Let's face it, it won't matter what products you sell if your customers aren't buying.
Before considering what product to sell, determine what market you want to sell to.
Once you know what kind of customer you want, then you'll be able to determine
their needs.
14
If your products only appeal greatly to some people, it may not be enough to sustain a
business. Your product selection doesn't have to appeal to all of the population but it
should be something you can convince a large percentage of shoppers they need.
Profit Margin
Selling big ticket items is generally more profitable, but can require more credibility
to sell. When you look at the price of the product, don't forget to calculate direct and
indirect costs (like overhead) of selling your goods. If you think you can sell 50
widgets a day for $1.00 each and the widget cost you $.50 each, it may look like you
have a profit of $25 per day. But when you learn your overhead expenses average $20
per day, you may find your profit isn't sufficient even though sales are good. The best
selling products won't ever earn any real money if your margin is too small.
Consumable
Choose a product with recurring sales value. A consumable item that needs to be
replaced on a regular basis is one way a retailer can establish long term sales. By
establishing a customer base with recurring products, customers will continue to come
back to you to buy more as they use up the products. Additionally, satisfied customers
are more open to recommendations for related products.
What's Popular?
Competition
Competition is healthy and there are ways other than volume and price a smaller store
can compete with larger retailers. On the other hand, the more unique the product, the
less chance of competition.
15
Private Label
One way to guarantee having a truly unique product line is to make the item yourself.
Another way is to partner with a small business that makes a product you would enjoy
selling. Also consider private label products which will allow you to brand an item
made by another person.
Quality
When deciding which products to sell in your store, ask yourself the following
question. Is this product something I would give my dearest friend? If not, you may
want to keep looking. Product quality is extremely important when your reputation is
on the line.
Diversity
Keep your product offering simple in the beginning. If your product line is narrow
and focused, then your marketing efforts can be just as tightly focused, which will
bring you the best results for your marketing dollars. As your business grows, so can
your product line as long as you keep new products compatible with the type of
business, your location and your market.
The key to having a successful business is to know your products and to believe in the
merchandise that you are selling. If you do not believe in the product yourself, then
you probably won't be successful at selling it. Keep brainstorming and you'll find a
product or product line that meets both the needs of your target market and your own
ability to locate it, purchase it and resell it.
16
CHAPTER – V
RESEARCH METHODOLOGY
The data for this study was obtained through Primary & Secondary sources.
17
RESEARCH DESIGN
Data collection
Data for this study is obtained from Primary & Secondary sources. Primary sources
include observation, market surveys and interviews. Secondary data has been
collected through company records.
Research Design
The research conducted was both observatory and descriptive in nature. The
data was collected basically through a field survey using observation. The
research design employed was descriptive research, as it was most suitable.
Sampling size
Data source
• Primary data
The primary data was collected through observation and survey in competitor
retailer stores in the segmented area prescribed by our leading manager, we
carried with us the 3,500 SKU list which reliance fresh stocks along with
informal interviews with the company personnel. Much of the information was
collected this way.
18
The main aim of selecting the primary source is that it is necessary to know the
current relevant data and information of retailers and consumers and also to
know about the changing preferences and expectations of the consumers.
• Secondary data
The secondary data was collected from Reliance Industries documents especially the
3,500 SKU list and other internet resources. The secondary data was also collected
with the help of News paper and Journals.
19
CHAPTER – VI
Every week we were assigned a particular location in Delhi and NCR. We used to go
the location and conduct a market survey for some 40-50 kirana stores, confectionery
shops, bakeries, and some organized retail stores with the aim to find out most
preferred or most sold SKUs (or brands) in those locations. The report, then, was
submitted to the management which helped them plan the SKU’s to be kept in the
Reliance Fresh outlets in the particular catchments. The total number of catchments
covered was 8, and the products were categorized as business units under the
following heads:
20
Location I:
NIT 5, Faridabad, Haryana
Market Overview:
1. They feel that the kirana stores are fulfilling their needs and have an
edge over the retail stores as they extend credit facilities, home delivery and the
customers have a long standing relationship with the consumers.
2. Kirana stores are experiencing a slight decrease in sales due to entry of
the organized retail outlets.
21
For Reliance Fresh
1. They like the ambience and the service provided by the personnel while
shopping; in addition they were happy as they were provided the facilities of
drinking water and washrooms not matched by any of the small retail stores.
2. Some people feel that most of the schemes are not very beneficial as they
get almost the same amount of discount in the kirana and provisional stores.
Not in any
S.No. Business Unit No. of SKUs Reliance SKUs list
1 Non Food 225 30
2 Food 2025 307
Total 2240 337
2500
2000
1500
No. Of SKUs
1000
Not in any Reliance SKUs List
500
0
Non-Food Food
22
List of SKU’s preferred in Faridabad, but not present in the original list of 3,500
SKU’s prepared by Reliance Retail Ltd.
Food Non-Food
Ducks Waffy V-John Shaving Nippo AA size
Shri Sai Bhog Atta
biscuits strawberry Cream battery
Ajanta Baking Ducks Waffy Hari Darshan Shakti AA size
Powder choco biscuits Aggarbatti Battery
Ducks waffy Wills classic ultra
Jindal Blended oil Madhusudan Ghee
vanilla mild cigarettes
Wills classic Mild
Coca Cola 300ml Doaba Ghee 5kg Joe Aggarbatti
cigarettes
Paras 1 ltr, mineral Drainex Pipe
Pepsi 300ml Axe Deo
water Unblocker
Super Max Shaving
Thumsup Cobra Deo
Blade
Competitor Analysis
The following stores have the largest stocking of different SKUs in foods
category which present a serious competition to Reliance Retail in Faridabad
Area.
23
Bhagatt Genral
Mangala Provision
Store
Store
Jindal Store `
Bajrang Kirana
Kataria General
Store
Mangala Provision Store Bajrang Kirana Kataria General Store Jindal Store Bhagatt Genral Store
24
Location II:
Uttam Nagar, New Delhi
Market Overview
1. They feel that the kirana stores should stock the essential items, due to
which customers are drawn towards the organized retail outlets.
2. Long standing relationships with customers relevant and valued.
25
Summary of SKUs for Business Units after a survey of 42 retail shops in
vicinity of Reliance Fresh, Uttam Nagar, Delhi
Not in any
S.No. Business Unit No. of SKUs Reliance SKUs list
1 Non Food 319 46
2 Food 1942 335
Total 2261 381
2000
1500
0
Non-Food Food
List of SKU’s preferred in Uttam Nagar, but not present in the original list of
3,500 SKU’s prepared by Reliance Retail Ltd.
Food Non-Food
Hathi Brand Atta Fun Flips Cycle agarbatti 20
stick Ship matches
26
Raj Hans brand atta Pepsi 300 ml bottle
Thums Up 300 ml
Rose Brand
bottle
Chlormint Anmol Yummy 75 gm
Competitor Analysis:
Following stores have the largest stocking of different SKU's in foods category
which present a serious competition to Reliance retail in Uttam Nagar catchment
area.
S.no Store name No. of SKU's
1 Big Apple 1543
2 Subhiksha 1347
3 Saraswati 1297
4 Arora Gen. Store 1285
5 Khandelwal Store 1230
6 Aggarwal Traders 969
` Sarasw ati
Aggarw al Traders
Subhiksha Saraswati Arora Gen Store Khandelwal Store Aggarwal Traders Big Apple
Location III
Welcome, Seelampur
Market Overview
27
1. Consumers range from lower middle to price conscious consumers.
2. Stores predominantly provide food FMCG items. They however lack proper
infrastructure, and exhibit haphazard display.
3. There is a sabzi mandi closeby, which suffices the FNV demands of
customers, resulting in less people coming to retail stores for food items
4. Popularity of local brands in the category of food FMCG.
5. Lack of variety in non-food FMCG products
6. Lower price brands more popular.
7. Market dominated by kirana stores.
8. Organized retail outlets scarce.
28
2 Food 2006 435
Total 2332 486
2500
2000
1500
No. Of SKUs
1000 Not in any Reliance SKUs List
500
0
Non-Food Food
List Of SKU’s preferred in Seelampur but not present in the original list of 3,500
SKU’s prepared by Reliance Retail Ltd.
Food Non-Food
Mango sip 200 ml Cycle agarbatti 20
juice Nat-Khat Snacks stick Ship matches
Haridarshan 20 sticks
Ashoka loose atta Crax Snacks aggarbati Home matches
Postman 1 litre Nippo Alkaline AA
edible Oil Amul Chocolates Battery Vi-John
Sony AA size pack of
Chloromint Candy Jindal Oil 1Ltr 4 Navy Cut regular
Satmola Candy Baba Mustard Oil Wills classic regular Red and White
Nilons mango pickle Baba Mustard Oil Vicco toothpaste
300 gm 500ml Wills classic mild 100gm
Wills classic ultra
Fun Flips Snacks Shahji mixture Milds Ghadi detergent
Baba mustard oil
500ml
Competitor Analysis
Following Stores have the largest stocking of different SKU's in Foods category,
which pose a serious competition to Reliance Fresh in Subash Nagar catchment Area.
29
S.No Store Name No. of SKU's
1 Man Moti Store 341
2 Prem General store 256
3 Singh General Store 241
4 Mahesh Store 233
5 Satya Prakash & Sons 230
Mahesh Store `
Man Moti Store Prem General Store Singh General Store Mahesh Store Satya Prakash & Sons
Location IV
Subhash Nagar, New Delhi
Market Overview
30
Customer feedback for kirana stores
Summary of SKUs for business Units after survey of 38 Retail Shops in the
vicinity of Reliance Fresh Store, Subhash Nagar, New Delhi
400
350
300
250
200
No. Of SKUs
150
100 Not in any Reliance SKUs List
50
0
Apparel & Non-Food Food
Luggage
List of major SKU’s preferred in Subash Nagar but not present in the
original lists of 3,500 SKU’s prepared by Reliance Retail Ltd.
FOOD NON-FOOD
Brick Article Description Brick Article Description
Atta Air fresheners/deodorisers
Shakti Bhog loose Garden fresh 200ml spray
(non powered)
Fibre rich loose Agarbatti Shubhmangalam (20 sticks
31
box)
Lal quila loose Haridarshan(10 sticks box)
Aashirwad 10 kg Baby feeding bottles Johnson & johnson 250ml
Basmati rice
Anmol 5 kg Battery Nippo(aa size)
Amanat basmati 10kg Wills (10 pcs) large
Besan Hatthi besan 1 kg Cigarettes Gold flake (10 pcs) large
Sweekar 5l Classic (10 pcs)
Blended oil
Sweekar 1l Shaving accessories Godrej shaving brush
Rocky phenol (local)
Bubble gums Big bubble
Household disinfectants 500ml
Cloro mint 50 ps. Trishul 500ml
Candies Coffee bite Genda phenol 500ml
Local/ unbranded Laundry detergents 555 bar
Ghee Anmol ghee 500 ml Oral care aids (0n powered) Classic soft (med.size)
Core biscuits Anmol 50gm Home lite rs.5 box
Dates Loose unbranded Haathi (Rs.0.50 box)
Regular white shell Matches Smart Lite(Local)(Re.0.50
Egg
eggs box)
Maida Local/Unbranded Pipe unblockers Kiwi Drainex 50gm pp
Mouth fresheners Paas-Paas Shaving blades Vijay (10 pcs)
Competitor Analysis
Following Stores have the largest stocking of different SKU's in Foods category,
which pose a serious competition to Reliance Fresh in Subash Nagar catchment Area.
32
Om Prakash & Sons Subhiksha
Manocha Store `
Goel Store
Vishal Store
Subhiksha Goel Store Vishal Store Manocha Store Om Prakash & Sons
Location V:
Gandhi Nagar, Delhi
Market Overview
33
1. Kirana stores should stock a variety of essential items, absence of which
draws customers towards the organized retail outlets.
Summary of SKUs for business Units after survey of 32 Retail Shops in the vicinity
of Reliance Fresh Store, Gandhi Nagar, Delhi
1000
800
600
No. Of SKUs
400
Not in any Reliance SKUs List
200
0
Equipm ent Non-Food Food Pharm a
List of major SKU’s preferred in Gandhi Nagar but not present in the
original lists of 3,500 SKU’s prepared by Reliance Retail Ltd.
FOOD
34
Brick Article Description Brick Article Description
Mayos Himalya
Noodles Snacks Anmol
Local Core biscuits Golmol
Frugo apple Funfill orange
100 % juice Frugo mix apple Funfill cream
Tuk 3 Funfill strawberry
Apna bhog
Atta (unbranded) Coconutty
Green Soy atta Smackles
Ahaar 500gm Anmol-g
Besan
Aahar 1kg Choco bite
Core Biscuits
Blended oil Jindal oil 1litre Don
Block chocolates Amul chocolate Cheese cracker
Candies and Nutune gulkand box Spigadora crackers
bubble gum Pan pasand box Wheat man cookies
Cheese spread Milk Man Wheatman milk suji toast
Chocolates Amul Milk Chocolate Notty
Dry bakery cookies
Chutneys Renia Maini Eaton
Cooked ghee Gopal Jee Ghee 1 kg Energiser
Energy drinks
Dahi Unbranded Dahi Power horse
Jodhpuri moong dal
Honey
halwa Mehsons honey
Awadhi badam halwa Weikfeild orange
Dessert ready Bombay halwa mix Jellies
mixes local Weikfeild strawberry
Basundi mix Post man 500gm
Gits rabri mix Maida Post man 1kg
Gits phirni mix Unbranded maida
Gits kaleva Mineral water Volga
Gopal elaichi Mozzarella cheese Chaudhary cheese
Gopal soft kesar
Murmurre
Flavoured milk elaichi Local brand
Gopal pista badam Moti mustard oil
Mustard oil
Gopal butterscotch Hardil mustard oil
Fresh cream cake Perfect Golden sabut 500gm
Ghee Vasudev 500ml Golden moong sabut1 kg
Herbs spices Origano Moong dal Organic dals unbranded
Kanodia brand mustard oil
35
Pacranga Carrot
Pickle Soy day
Pickles Achar Pachranga Ahaar soya granules
Doon Mini Dubar 5 Soya nuggets
kg Nutrela
Doon Mini Dubar 10
kg Savour nutri
Unbranded Rice
Raw Rice Type1 Dabur garlic
Unbranded
Hyderabadi Pulao Dabur ginger
Unbranded Standard Spices - others
Rice Dabur garlic ginger
Veetee rice Home made masala
Smith jones fish curry
Sugar Shagun 5 kg. paste
Tea packed leaf CTC Leaf Tea Whole Wheat Bread Harvest Gold
EQUIPMENTS
Blood pressure monitor Sphygmomameter
First aid–accessories Chi Swing IBP
First aid-ice/heated pack J&J forehead hot & cold pad
Thermometers Digital thermometer Mt 301-IBP
NON-FOOD
Brick Article Description
Baby diapers (disposable) Teddy SML 5 pcs
Wills Navy Cut Light 10pcs. Large
Gold Flake 10 pcs. Large
Hawda bidis 10pcs. Large
Cigarettes Flake 10pcs. Large
Four square 10pcs. Large
India Kings 10pcs. Large
Wills Classic 10pcs. Large
Dental cleansing Vicco 100gm
36
Hair colour Neha mehendi 100gm
Laundry detergents Ghadi detergent powder 200gm
Matches Home lite
Shaving preparations Vi-john
Competitor Analysis
Following Stores have the largest stocking of different SKU's in Foods category,
which pose a serious competition to Reliance Fresh in the Gandhi Nagar catchment
Area
Bhola Shanker
Namkeen Bhandar Venus Store
`
Ram esh Store Mahaveer General
Store
Uttam General
Store
37
Location VI:
Khandsa Road (Near Anaaj Mandi), Gurgaon
Market overview:
38
Customer feedback for Reliance Fresh
Summary of SKUs for business Units after survey of 38 Retail Shops in the vicinity
of Reliance Fresh Store, 422/18, Khandsa Road (Near Anaaj Mandi), Gurgaon.
1000
800
600
No. Of SKUs
400
Not in any Reliance SKUs List
200
0
Non-Food Food Hom e Lifestyle Pharm a
List of major SKU’s preferred in Khandsa Road but not present in the original list of
3,500 SKU’s prepared by Reliance Retail Ltd.
FOOD
Brick Article Description
Real Twist
Haldiram
100 % juice
Fresh gold
Mishrambu
Cow Milk Gagan
Dahi Loose
Anmol
Ghee
Vita
Jaggery Loose
Jellies Kissan
Mineral water bisleri mountain water
39
Mouth fresheners Passpass
Harvest Burger Bread Buns
225 gm
Harvest Bread Healthy Whole
Whole
Wheat Bread 400 gm
Harvest Bread Soften French
Bread 250 gm
NON-FOOD
Article Article
Brick Description Brick Description
After Shave Care Vi-john Wills
Haridarshan
agarbatti Gold flake
Haridarshan
Cigarettes
dhoop Scissors
Air fresheners/Deodorisers Lotus Benson & hedges
Mysore sandal 555 pataka
(non powered)
Premium Four square
Taj Kartoos
Fair & lovely 75
Goodlook Cleansing/Washing/Personal gm.
Cycle Joy 75 gm.
J & J Ear buds
Cotton wool products
Antiperspirants/deodorants Axe 100ml 75pcs.
Playboy 125 ml Dental cleansing Vicco Powder
MTV 125 ml Biotique
Baby feeding bottles Bonny Facial tissue/handkerchiefs Beeta
Nippo (disposable) Jolly
Battery Bpl All day wipes
Energizer General/Personal Daffodils
Bleach Ala bleach hygiene/Other S R foils
Laundry detergents Ghadi 1kg pwd Colormate
Classic tooth
Oral care/aids (non brush Hair colour Moon star
powered) Aquafresh tooth
brush Black rose
Pipe unblockers Drainex Hair shampoo Sunny 100 ml.
Shaving blades 555 blades Hair styling (non powered) Simco
Vijaya blade Lomani
40
Vidut blade Rahat rooh
Shaving Razors Hair care products other
Disposable (non powered) Vidyut Cantheridin
Vi-john shaving
cream Household cleaning/care Local
Emami shaving aids
cream Fabler bright
Shaving preparations
Nivea shaving
Household disinfectants
cream Local
Cobra shaving Boroft talcum
cream powder
Vaseline talcum
Sun protection products
Garnier Skin drying powder powder
Chand toilet Liril talcum
HOME
Brick Article Description
Fridge bottle Fridge bottle - Pearlpet
Jug Milton
Facial tissue (wet & dry) Beeta tissue box 100 sheet
LIFESTYLE
Brick Article Description
Cello
Montex
Reynolds
Ball pens
Pentek
Pierre Cardin
Parker
6 water col CK/5
Combi kit
Wax crayon-pencil, notepad
Elastic bands Unbranded
Faber-castle
Erasers
Apsara
Fragrances Fa Variants -175ml
Lip balm Vaseline
Lip gloss Lipguard
Apsara
Sharpners
Nataraj
41
PHARMA
Brick Article Description
Antacids/Indigestion/Flatulence Remedies Crorepati goli
Antiseptics Boroline
Dietary Aids/Other Glucon - D 100 Gm
Competitor Analysis
Following stores have the largest stocking of different SKU's in foods category, which
pose a serious competition to Reliance Fresh in Khandsa Road catchment Area.
`
Hemant Store
Tapodhani Store
Jagdam ba Store
Today Store Tapodhani Store Jagdamba Store Hemant Store Needs Store
42
Location VII:
Zamroodpur, GK-1, New Delhi - 48
Market Overview
1. Plethora of markets with designer wear stores and modern retail outlets.
2. Greater Kailash hosts one of the busiest markets in New Delhi (The M-Block
market), which sells an assortment of products and commodities as well as
very good eateries.
3. There are life-style shops and restaurants like Mcdonalds, Pizza Hut, and two-
level Benetton and so on.
4. Wide range of inexpensive items from the roadside stalls.
5. Kirana stores less in number
6. Limited number of SKUs stocked at kirana stores.
43
Summary of SKUs for business Units after survey of 32 Retail Shops in the vicinity
of Reliance Fresh Store, Zamroodpur, GK-1, New Delhi - 48 (Near Lady Sriram
College)
Not in any
S.No. Business Unit No. of SKUs Reliance SKUs
list
1 Equipment 8 4
2 Non Food 353 53
3 Food 487 127
TOTAL 848 174
500
400
300
No. Of SKUs
200
Not in any Reliance SKUs List
100
0
Equipm ent Non-Food Food
List of major SKU’s preferred in Zamroodpur but not present in the original
lists of 3,500 SKU’s prepared by Reliance Retail Ltd.
FOOD
Article Article
Brick
Brick Description Description
Loose: regular
Egg
Atta Ashoka Loose white shell eggs
Fruit based
Slice 300 ml btl
Blended oil Jindal Oil 1 litre (mango)
Amul chocolate 50 Health supplements Glucon-D orange
Block chocolates gm. others 200 gm
Hajmola candy re. Kissan mixed fruit
Candies Jams
0.50 per pcs jam Rs.2 pouch
Candies Chloromint Maida Loose maida
Vijeta orange Re. Murmurre 50gm
Candies Namkeens
0.50 per pcs. (local)
Chips Haldiram classic Mustard oil
Baba oil 1litre pet
chips 15g pp (rs.3)
Lays masala chips Baba oil 500ml pet
44
15g pp (Rs.5)
7 Up 300 ml bottle Baba oil 15litre tin
Sprite 300 ml bottle Baba oil 5litre
Clear Mountain Dew 300 Hardil mustard oil
Limca 300 ml
bottle Duggar mikture
Namkeens
Coca-cola 300 ml
bottle Shahji mixture
Magic: Fry
Colas Pepsi 300 ml bottle Noodles noodles, ready to
eat 10gm pack
Thums Up 300 ml
bottle Kala chana 1kg
Krown gold
Cookies
cookies 100 gm pp Other dals Kala chana 500gm
Krown gold
premium biscuits
250 gm pp Malka red 500gm
Anmol yummy Royal blue 500 ml
75gm Packaged water pet
Core Biscuits Anmol-G 75gm pp Royal blue 1 lt pet
Britania Tiger
cream biscuits Poha
165gm pp Loose poha
P gold–Marie Lite
Rava / sooji
Biscuit 16 gm pp Loose unbranded
Urad dal Loose urad dal Loose rice type 1-4
Mango sip 200ml Loose sona masoori
Raw rice Loose parmal
100 % juice
Safal 200ml regular
Good health 5 litre Raw rice Loose standard rice
Blended oil Royal blue soda
Soda / mixers
Nafed 5 litre 500
Candies Coffee bite Soya nuggets Nutrela
Dabur garlic ginger
Spices - others
Loose candies paste
Namkeens Bikaneer mix
Nancy namkeen 400 gm
Solano re.0.50 per
pcs Bikaneer pouch
Vicks Crax-Mast mattar
45
10 gm pack
Haldiram Taka-Tak
Chut kut 15gm pack
Pooja all in one
Fun flips 150g pack
Pooja aloo bhujia
Golmaal 400g pack
Pooja chana chor
Chips
Krackkur 150 gm
Pooja falhari
Krishna chiwda 150g pp
Pooja kashmiri mix
Lip chip 200g pack
Pooja panchratan
Yellow's diamond mix 150g pack
Health supplements Glucon-D Other dry fruits Batashe loose
Bru instant coffee
Instant coffee
13gm sachet Amrit Taaza bread
Mineral water Kingfisher 1litre Golden bite bun
Packaged Farmer's city fresh
Rajdarbar
max 400 gm bread
Mouth fresheners
Lord's bite bread
Rajnigandha
200gm
Balaji Packaged water Oxyizer 1ltr
Mustard oil
Ashirwad 1lt
46
Following Stores have the largest stocking of different SKU's in Foods category, but
none of them pose much competition to Reliance Fresh in the Zamroodpur catchment
area as almost all of them are small retail shops having limited number of SKU’s.
`
Sukda Store
Shiv Store
Dinesh Store
Brij Lal Senjay Kumar Shiv Store Dinesh Store Sukda Store Vijay Store
Location VIII:
Majlis Park, Adarsh Nagar, New Delhi – 33
Market Overview:
47
1. Mix Population ranging from lower income group to higher middle income
group
2. HLL has an efficient distribution network in the area because of regular and
frequent visits of their sales men and Supervalue Stores
3. Presence of Retailors like Subhiksha and 6 Ten in the vicinity. Big Bazar and
Big Apple are in negotiations with many people regarding site for opening
their outlets
4. Majority of the stores had large number of SKUs
5. Almost whole population in the area feel that big organised retailers like
Reliance, Subiksha, Big Apple etc. are operating in loss, as they aim at
eliminating small unorganised retailers
6. Nearby there is Azadpur Mandi which results in less people coming to Retail
Stores for Food items.
Summary of SKUs for business Units after survey of 35 Retail Shops in the
vicinity of Reliance Fresh Store, Majlis Park, Adarsh Nagar, New Delhi-33 (Near
NDPL office)
Not in any
S.No. Business Unit No. of SKUs Reliance SKUs list
2 Equipment 15 4
4 Non Food 353 32
5 Food 734 119
Total 1102 155
800
600
0
Non-Food Food Equipm ent
List of major SKU’s preferred in Adarsh Nagar but not present in the original
lists of 3,500 SKU’s prepared by Reliance Retail Ltd.
48
Food
Brick Article description Brick Article description
Madhusudan 5 litre
100 % juice Tuk 3 (1litre) orange Ghee jar
Health supplements Glucon-D orange 200
Ashoka loose
Atta others gm
Apna bhog loose Jaggery Jaggery (Gur) loose
Safal loose atta Maida Loose Maida
Tez mustard oil
Blended oil Jindal oil 1 lit 500ml
Mustard oil
Block kanodia brand
chocolates Amul chocolate mustard oil 1ltr,2ltr
Hajmola candy Bombay Chana 200
re.0.50 each gm pack (Local)
Mango mood Shahji Mixture 250
Candies Namkeens
re.0.50 each gm (Local)
Pan pasand re.0.50 Sanskriti Mixture
each (Local)
Chana dal regular Gopaljee Dalia
500gm Other flours 500gm pack
Channa dal
Mothers Madras
Chana dal 2 kg
Pickles Onion Pickle 400gm
Cheese spread Milk man Salted biscuits Time Pass 150 gm
Chocolates Amul milk chocolate Nutrela 200 gm
Core biscuits Golmol 100gm Soya nuggets Loose
Funfill orange cream Dabur garlic paste
Cream biscuits
100gm 50gm
Gopaljee milkshake
pwdr kulfi flavour Dabur ginger paste
200gm 50 gm.
Goaljee milkshake Spices - others
Instant
pwdr strawberry Dabur garlic ginger
powders
flavour 200gm paste 150gm
Gopaljee badam
shake powder Homemade masala
200gm 200gm tp
Anmol yummy
Cream biscuits
75gm pp Tea bags Brooke bond
Instant Gopaljee thandai Safal orange juice
100 % juice
powders powder 200gm 250ml
49
Shyam jeera pwd 100
Spices - powder
Core biscuits Anmol-g 75gm pp gm cbd
Cow ghee Paras cow ghee 1ltr Salt Divya salt 1kg pp
Parle may fair mini
Dahi Loose dahi butter cookies 20g pp
Cookies
Regular white shell Parle may fair butter
Egg
fresh eggs loose cookies 70g pp
Dip trix biscuit (free
Gopaljee elaichi Core biscuits spiderman mask) 18g
flavour 200ml pp
Gopaljee kesar Boomer jelly mango
Flavoured 200ml 100pcs box
Bubble gums
Gopaljee pista Boomer jelly
milk
badam 200ml watermelon 100pcs
Gopaljee Parle kaccha mango
Candies
butterscotch 200ml bite re.0.50 each
Nutune gulkand box Bonkers chews
50 gm. re.0.50 each
Dabur homemade Bonkers chews stick
Ketchups
tomato puree 200g Candies Rs.5 each
Cadbury's mr. Pop
Chips lollypop (55gx55pcs)
Funflips 35g pp box
Anmol Lemon Maza
Chips Haldiram's Cream biscuits Cream Biscuits 250g
Whoopies 11g pack pp
Pansari Mustard oil Cadbury's
1 litre Pet Celebrations
Mustard oil Chocolates
Pansari mustard oil
Lotto Choco Pie
1/2 litre Pet
Ghee Madhusudan 15L tin Muffins Local/Unbranded
Maida, Delhi Mill Kakaji Moong 35
Namkeen
Maida Stag gm.
Local: thakurji- Harnarayan Amla
Pickles
mango 500g Murabba 1kg
Pickles
Mineral water Harnarayan gajar
H2G0 1 litre bottle
Murabba 1kg
Paras 1 litre bottle Spices - masala Chaman Achaar
Masala 1/2 kg tp
50
Top Ramen 100 gm
Chaman achaar
Spicy Veg Cup
masala 1 kg jar
noodles
Noodles
Top Ramen 100 gm Ching's Secret Sweet
Mast Masala Cup Canned food Corn kernels 500gm
Noodles tin
Competitor Analysis
Following Stores have the largest stocking of different SKU's in Foods category,
which pose a serious competition to Reliance Fresh in Adarsh Nagar catchment
Area.
`
Gurunanak Store Barnala Store
Randhir Store Barnala Store Mahadev Store Ahuja Store Gurunanak Store Subhiksha
51
Suggestions
52
CHAPTER – VII
53
LIMITATIONS
54
CHAPTER – VIII
LIMITATIONS
1) The storekeepers were reluctant to give data regarding their shops and
hence we had to continuously probe for information.
55
BIBLIOGRAPHY
56
CHAPTER – IX
BIBLIOGRAPHY
REFERENCES
57