A PROJECT REPORT ON RETAIL MARKETING

SUBMITTED BY:KUSHAN MISTRY

 Profile of Organization:-

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 US$ 44 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Major Group Companies are Reliance Industries Limited (including main subsidiary Reliance Retail limited) and Reliance Industrial Infrastructure Limited. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles, retail and special economic zones.
Source: http://www.ril.com/

In 2007, close on the heels of successfully launching a series of Reliance Fresh stores, Reliance retail launched its first hypermarket Reliance Mart in Ahmedabad. Reliance Mart is a hyper mart which is part of the multi-format stores rolled out under the Reliance Industries Limited subsidiary Reliance Retail Ltd. Reliance Retail Ltd. was incepted in 2006. Reliance Mart runs on the philosophy of replicating the whole market street in a store. The first Reliance Mart was launched in Ahmedabad on August 15, 2007. With Reliance Mart the concept of Mobile POS (Point Of Sale) was introduced in India, in order to reduce customer wait-time and facilitate faster check-outs. Reliance Retail Ltd. aims at opening over 500 Reliance Mart hyper marts by the end of 2010. Reliance Marts function from 10.00 a.m. to 10.00 p.m. seven days a week. RRL operates several value & specialty formats. The value formats that RRL operates are: Reliance Fresh, a neighborhood concept, Reliance Mart, an all under one roof supermarket concept & Reliance Super, a mini-mart concept. The value formats offer a wide range and assortment of products required for daily household needs. The specialty formats are: Reliance Digital, a consumer durables & information technology concept, Reliance Trends, an apparel & accessories concept, Reliance Wellness, a health, wellness & beauty concept, I Store by Reliance Digital, an exclusive Apple products concept, Reliance Footprint, a footwear concept, Reliance Jewels, a Jewellery concept, Reliance Timeout, a books, music & entertainment concept, Reliance AutoZone, an automotive products & services concept and Reliance Living, a home ware, furniture, modular kitchens, furnishings concept.

Location of Stores
Ahmedabad Mumbai Bangalore Pune Hyderabad Faridabad Gurgaon Jodhpur Tirupati Tiruchirappalli Jamnagar Ranchi

Corporate Structure
The company board of directors, important executives and other people instrumental to the success of the company.

Board of Directors
Mr. Mukesh Ambani, Mr. Manoj Modi, Mr. Dipak Jain Mr. Raghu Pillai President and Chief Executive , Reliance Retail Ltd. Mr. Ajay Baijal President Corporate Planning, Reliance retail Ltd. Mr. Manu Kapoor Senior Vice-president Corporate affairs Division, Reliance Retail Ltd. Mr. BijaySahoo Head of Human Resources, Reliance retail Ltd.

Divisions in Stores:-

Products& Services:Product/Business Divisions Type of business and product details Reliance Mart has on offer a wide range of cameras, home & kitchen appliances, mobile phones and software. It houses groceries, clothing, computers, jewelry, shoes, books, music, services of a cobbler and a photo-printing service. It carries an assortment of approximately 100,000 products under one roof that comprise of fresh produce, food and grocery, home care products, apparel and accessories, footwear, wellness products, consumer durables and IT, automotive accessories, lifestyle products, furniture & furnishings and more. In its range of kitchen appliances Reliance Mart has a variety of dishwashers, refrigerators, air conditioners, blenders, chimney and gas stoves, coffee makers, electric cookers, electric kettles, fans and coolers, hand blenders and juicers, irons, juicers, microwaves & OTGs, mixers, grinders and processors, toasters and sandwich makers, vacuum cleaners, washing machines, water filters and purifiers as well as gift combos on offer. Living up to its claim of replicating a market street, Reliance Mart offers unique services like tailoring, shoe repair, watch repair, a photo shop, gifting services and laundry services. It has a bakery serving "hot off the oven" bread and bread products, local savories along with an icecream parlor. It has an in-house mill to grind wheat and also gives the option of picking up readymade batter. It houses products as varied as loose tea, pickles and fine fashion jewelry. The Reliance ResQ center provides after-sales installation and service for appliances as well as other durables, seven days a week. Reliance Mart has added benefits like the Reliance One membership program. They also offer free home delivery and celebrations & events form part of the round-the-year value deals.

7 ps Service Marketing:Product Reliance Mart offers a wide range of products which starts from apparels to food items, footwear to home furnishing, crockery to sport items, child care products to toys, watches, drinks etc. There are many in house brands promoted by Reliance Mart. In pursuance of their business plan to diversify their portfolio of offerings, FMCG products play a key role. Price Reliance Mart promises its consumers the lowest available price. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Reliance Mart also caters on Special Event Pricing (Close to Diwali, Christmas, New Year, Anniversary of store etc.). Selling combo-packs and offering discount to customers. The combo-packs add value to customer. Through Bundling, they also reduced the price of the products. In addition to Reliance Marts strategy to continue procurement of goods from small and medium size vendors and manufacturers which leads to cost efficiencies. The hypermarket would be selling the products on EDLP (everyday low price) basis at prices 1520 percent lower than market prices.

In order to grow faster and better in local markets with higher margins, it has focused largely on local brands instead of national brands or private labels. Local brands include IndubenKhakrawalasNamkeens,LijjatPapad, WaghBakriand Madhur(spices brand). This is in addition to 100 private labels that Reliance plans to display. Companys Sources says that the share Place Reliance Mart has presence in almost all the major Indian cities. They are aggressive on their expansion plans. Reliance Martintend to increase their penetration in the country by setting up new stores in cities where they already have presence, as also entering into new areas in the country. In particular, they intend to focus on expansion in Tier II and Tier III cities. Reliance Mart target locations with good infrastructural facilities such as proximity for customer, easy accessibility, provision for water, electricity, parking, security and other basic amenities. of regional brands in the hyper marts would be over 10%.

Promotion Advertising has played a crucial role in building of the brand. Reliance Mart advertisements are mainly seen in print media i.e. newspapers, Television and sometime road-side bill-boards. Reliance Marts category management system is used to plan promotional schemes. They launch promotional schemes weekly.Apart from general sales promotion, the category manager formulates promotional plans for slow movers. In addition, to promote sales, they focus on layout of the stores and positioning, presentation and display of merchandise, in order to appeal to the customer. Reliance Marts propose to continuously undertake such initiatives to increase the satisfaction of their customers. People The store has over 400 highly skilled and trained customer sales representatives. Process Reliance Mart, with 61 check-out counters has for the first time in India introduced the Mobile POS system for faster check outs. This is aimed at reducing customer wait-time.Reliance Martwill remain open from 10:00 a.m. to 10:00 p.m., seven days a week. Physical evidence Spread across 165,000 square feet of shopping area, Reliance Mart will provide the shoppers a never-before-experienced shopping delight. The hypermarket will carry a range of over 95,000 products catering to the entire family. Shoppers will have the option to choose from a wide array of products in every category ranging from fresh produce, food & grocery, home care products, apparel and accessories, non-food FMCG products, consumer durables and IT, automotive accessories, lifestyle products, footwear and much more. The store planning, atmospherics and layout has been designed specifically to provide a complete solution to the customer.For the shoppers convenience, the store has a cafeteria providing quality food and beverages for ready consumption, an ATM machine and a consumer service / membership desk to provide the customer a truly international shopping experience.

SWOT Analysis:-

Strengths:
 High quality,  latest in-style products,  international shopping experience  value for money pricing  loyal following  Own brand of merchandise, which is both trendy and individualistic.  new introductions every week  variety of designs and styles  exciting mix with a range extending from stylized clothes, footwear and accessories for men, women and children to well-co-coordinated table linens, artefacts, home accessories and furnishings.  Well-designed interiors, sprawling space, prime locations, lovely coffee shops add to the customers shopping experience.

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

OPPORTUNITIES:

 To survive in todays world globalization is important. Reliance mart have a wide opportunity to go more global to improve and expand its business.  They also have the opportunity to consider more overseas supplier which will actually give them cost advantage, rather than suppliers available on a local level.  They also have the opportunity to maximize the use of available technology to improve their functioning and to gain competitive advantage.

Threats:

If the unorganized retailers are put together, they are parallel to a large supermarket with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover.

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

Cultural Variation leads to variation in merchandise in India at different geographical locations.

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

STP of Service Marketing:Segmentation

The segmentation has been done based on the Demographic (Age, Gender, Education, Occupation, Income&Marital status), Geographic (Depending on the area where users are heavy users, nonusers, brand loyal users & switchers) & benefits. The Store itself is segmenting all the different age group of people. The store is also segmenting on the basis of the different income level of the people. Examples are as follows: Apparel The hypermarket also launched a host of Reliances own brands in select categories with superior quality and affordable prices like First Class, Network, Netplay, Team Spirit and Sparsh in Mens and Womens Formal / Casual and Ethnic wear, DNM- X in the jeans category for men and women, Panda for kids clothing and Grip in the luggage section. The footwear category will carry Zig in formal wear. Hi Attitude for semi -formal, Tosco for party wear and Monza for the sports enthusiast. There are many products that will be exclusively available in Reliance Mart stores only. Household In its range of kitchen appliances Reliance Mart has a variety of dishwashers, refrigerators, air conditioners, blenders, chimney and gas stoves, coffee makers etc. Bakery Items The store also houses its own fresh bakery, serving hot, off-the-oven bread and bread products throughout the day and local savories. Jewellery Items Reliance Mart will also sell fine Jewellery and fashion Jewellery as part of its lifestyle section.

Targeting
After dividing market into many segment it is difficult to target market in organized sector because the kind of investment is been done & kind of profit should be generated. Especially reliance mart has targeted major income groups by providing various segments of product under one roof.

Positioning
It is not what is done to product but it is what done to the prospect. Successful positioning is the store must have identity that has some time those advantages must be recognized & value by consumers. Market positioning based on product differentiation & service provision is central to competitive strategy of multiple retailers.

PORTER 5 FORCES MODEL:1. The threat of the entry of new competitors: Profitable markets that yield high returns will attract new firms. Especially reliance mart will have the threat of new entrants like Wal-Mart, Macys etc. 2. The intensity of competitive rivalry: It is the major determinant of the competitiveness of the industry. Business will be affected of reliance mart as other competitors have major role in retail sector like Big Bazaar, Star India Bazaar. 3. The threat of substitute products or services: The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives As there are 95000 & more products in reliance portfolio it is very difficult to maintain & avail the products each & every time so there is marginal threat of substitutes. Also substitute threat reduces of reliance mart as they provide products from local vendors like Induben Khakhrawala, Lizzatpapad etc. 4. The bargaining power of customers: The bargaining power of customers is also described as the market of outputs. Very high threat in this scenario as there are other various attractive schemes to customers 5. The bargaining power of suppliers: The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Reliance mart has less amount of threat as they purchase items in bulk quantity so they have power over market

Consumer Behavioral Patterns:The Consume behavioral patterns include the buying process of the consumers.

Stimulus

Need Recognition /Problem awareness

Information search

Evaluation of Alternatives

Purchase

Postpurchase Evaluation of Decision

Schemes & offers for customers of reliance mart:1. Apparel & footwear Brands like DNM-X, Panda, High attitude, Network, Net play, Tosco etc. Shop apparel for Rs.1947 & get apparel for Rs.1947 free Shop for Rs.1000 & get free apparel /footwear of Rs.300 Other various discounts depending on brand 2. Lifestyle Below Mrp on various products (Rakhis, Sports accessories, watches, soft toys, exercise tools, massage chair) Parker pen with notebook only for Rs.150 from Rs.285 3. Electronics & small appliances. Brands like Transcend, Godrej, Maharaja, Unistar etc. Speakers free on purchase of TV Discounted price on various products (DVD player, Pen drives, Toaster, Microwave ovens etc.) Also major discounts on auto parts & car accessories. 4. Home ideas (Kitchen ware) Brands like Delux, polka, Eveready, Polyfill, opalware, Thermoware etc. Bucket only for Rs.89 which Mrp is for Rs.175 Doormat Rs.59 From Rs.149 Also heavy discounts on other products like Dinner sets, lunch box, gift sets, plastic containers. 5. Home ideas (Furniture) Brands like Ajanta, Kurlon, Casper, Mella, Neo etc. Heavy discounts on Single bed Rs.6990 from Rs.15490. Double bed with mattress Rs.16999 from Rs.33978 Also attractive discounts on Chairs, Dining set, Sofa set, Bean bag etc. 6. Grocery (Food grains) Brands like Fortune, Ruchis, Himalayan crown, Reliance select. Fortune sunflower oil 5 lt. Market price Rs.625 RM price Rs.329 only Major discounts on product like Basmati rice, Chana dal, Toor dal, Spices etc. 7. Grocery Brands like Amul, Knorr, Safal, Bournvita, Cadbury, Britannia etc. Amul Butter 500 gmMrp Rs.122 RM rate Rs.115 only. Britannia suji toast free with Kissan Mix fruit jam. Other discounts on Biscuits, Green peas, knorr soups, Frooti etc.

8. Grocery Brands like Pantene, Gillette, Lux, Meswak, Stayfree, Surf etc. Gillette Mach 3 razor for Rs.99 only Market price Rs.125 Surf excel Mrp Rs.175 RM price Rs.131.25 only. Also attractive discounts on Stayfree, Allout, Meswak, Parachute etc.

DOUBLE POINTS TO RELIANCE ONE MEMEMBERS ON EVERY PURCHASE

Value Proposition:-

Merchandi se Supply Chain Pricing

Format

Value Proposition

Promotion

Location

HRM/OD

Layout

In the last year, Reliance Retail Limited (RRL) continued to fulfill its commitment of enriching Indian consumers shopping experience and providing quality merchandise at an attractive value proposition. Through Reliance One, RRLs loyalty membership program, RRL enjoys the patronage of over 5.5 million customers. In the coming year, RRL will continue on its mission to delight the customers every visit. RRL will continue to provide unprecedented value to customers across all its formats and stores. Reliance Mart offers some unique services to the shoppers like tailoring, shoe repair, watch repair, a photo shop, gift services and laundry services, all within the store. The store also houses its own fresh bakery, serving hot, off-the-oven bread and bread products throughout the day and local savouries, an ice-cream train for the kids, a chakki, ready-made batter and loose tea and pickle for the housewives. Reliance Mart will also sell fine jewellery and fashion jewellery as part of its lifestyle section. Reliance Mart will also house a health and wellness store providing pharmaceutical drugs and other wellness products. For the shoppers convenience, the store has a cafeteria providing quality food and beverages for ready consumption, an ATM machine and a consumer service / membership desk to provide the customer a truly international shopping experience. The hypermarket also launched a host of Reliances own brands in select categories with superior quality and affordable prices like First Class, Network, Netplay, Team Spirit and Sparsh in Mens and Womens Formal / Casual and Ethnic wear, DNM- X in the jeans category for men and women, Panda for kids clothing and Grip in the luggage section. The footwear category will carry Zig in formal wear. Hi Attitude for semi -formal, Tosco for party wear and Monza for the sports enthusiast. There are many products that will be exclusively available in Reliance Mart stores only. Reliance Mart, with 61 check-out counters has for the first time in India introduced the Mobile POS system for faster check outs. This is aimed at reducing customer wait-time. The store planning, atmospherics and layout has been designed specifically to provide a complete solution to the customer. The store has over 400 highly skilled and trained customer sales representatives. Reliance Mart will continue to offer all its customers Reliance One, a common membership and loyalty program across all its formats, which follows the philosophy of Earn Anywhere, Spend Anywhere. Reliance Mart will also provide easy and attractive finance options, including 0% financing for your purchases on select products.

CONCLUSION:-

Here we would like to sum up that Indian retail sector is in its nascent stage of evolution. While there are obstacles, there are clear opportunities in modern retailing in India. There are many lessons that India can take from other countries, which have moved along the path of retail evolution. The retail sector has proved to be of immense significant from macro-economic point of view. The sectors capability to give strong growth momentum by creating multiplier effects on other sectors is not in dispute. It is now necessary to cautiously expand and develop the sector, as the government, at present, has done by permitting partial FDI in the sector. Given the scope, the retail sector is certainly expected to fetch the long-term economic benefits for the country. What is to be seen is how organized retail can duplicate the same level of personalized customer service levels offered by the unorganized sector to have a higher conversion ratio. Gaining and maintaining consumer preference is a battle that is never really won. Continued and consistent branding initiatives that reinforce the consumers purchase decision will, over time, land the product in consumer preference sets. Attaining and sustaining preference is an important step on the road to gaining brand loyalty

RECOMMANDATION:-

1. 2. 3. 4. 5. 6. 7. 8.

Should keep better quality of products. Should recruit good quality of professionals (Managers, Staff). Should improve billing facility. Display of product should be improved so that the product is easily visible to the consumers. Proper packaging and provide contrast labeling in displays of product. Play good songs or soothing music in the store. Improve quality of the products especially clothes. Should apply electronic supply chain management for better inventory management.

BIBLIOGRAPHY:-

1. http://hubpages.com/hub/Reliance-Mart 2. http://rcareers.ril.com 3. Managing Retailing book (Piyushkumarsinha, Dwarika Prasad Uniyal) 4. Managing Retail (SwapnaPradhan) 5. www.indianretailindustry.com

QUESTIONNAIRE:Name: Age: Sex: Profession:

Q1) What Retail chain do you usually go to? Reliance mart Any other

Q2) How much money do you usually spend on shopping in a month? 0-2500 Rupees 2500-7500 Rupees 7500-12500 Rupees Over 12500 Rupees

Q3) How much time do you usually spend at a Shopping mart? Less than 1/2 hour 1/2- 1 hour 1-2 hours Over 2 hours

Q4) How many people do you usually go with? Alone With 1 person 2-4 people More than 4 people

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

Questions

Reliance mart

Any other mart

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

Availability & quality

Choice of brands & pack size

Proper packaging & freshness of products

Questions

Reliance mart

Any other mart

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

Accessories

Household

Lifestyle

Questions

Reliance mart

Any other mart

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

Behaviour

Manners

Helpfulness

Service

Questions

Reliance mart

Any other mart

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

Promotional offers

Variety of products

Price of the products

Questions

Reliance mart

Any other mart

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

Billing Problems

Heavy Rush

Personnels lack of knowledge 1 2 3 4 5 1 2 3 4 5

Questions

Reliance mart

Any other mart

6. Announcement?(Yes/No)

Clear and easy to understand

Questions

Reliance mart

Any other mart

7. Wash room:?(Yes/No)

Cleanness of wash room

Availability of water & soap

Questions 8. Score:

Reliance mart

Any other mart

Overall score

Total score