Beruflich Dokumente
Kultur Dokumente
RELIANCE FRESH
RETAIL MANAGEMENT Assignment
Submitted To
Dr. V. J. SIVAKUMAR
Submitted By
Submitted On
15 SEPTEMBER 2010
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.
• Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for
understanding the retail structure and evolving a retail strategy."
• Margin is defined as the percentage mark tip at which the inventory in the store is sold and
turnover is the number of times the average inventory is sold in a year. This is a
diagrammatic representation of the frame work and can be applied to almost any type of
retail business.
• Depending upon the, combination of the two parameters, a retail business will fall into one
of the four quadrants. For instance L-L signifies a position which is low on both margin
and turnover; whereas, H-L indicates high margin and low turnover.
• Merchandise is primarily sold in store and not pre-sold. These stores provide a large
number of services and sell select, categories of products. They do not stock national
brands which are nationally advertised. Typically, a store in this category is located in a
down town area or a major shopping center. Sales depend largely on salesmanship and
image of the outlet.
Retail Chain
Retail Franchising
Cooperatives
RETAILING DECISIONS
• There are many factors for retailers to consider while
developing and implementing their marketing plans. Among
the major retailing decisions are these related to (a) Target
markets (b) Merchandise management (c) Store location (d)
Store image (e) Store personnel (f) Store design (g)
Promotion, and (h) Credit and collections.
Target Markets: Although retailers normally aim at the mass market, a growing number are
engaging in marketing research and market segmentation, because they are finding it
increasingly difficult to satisfy everyone. Through a careful definition of target markets,
retailers can use their resources and capabilities to position themselves more effectively and
achieve differential advantage. The tremendous growth in number of speciality stores in
recent years is largely due to their ability to define precisely the type of customers, they want
to serve.
• Merchandise Management: The objective here is to identify the merchandise that
customers want, and make it available at the right price, in the right place at the right
time. Merchandise Management includes (i) merchandise planning (ii) merchandise
purchase, and (iii) merchandise control. Merchandise planning deals with decisions
relating to the breadth and depth of the mix, needed to satisfy target customers to
achieve the retailers return on investment. This involves sales forecasting, inventory
requirements, decisions regarding gross margins and mark ups etc. Merchandise
buying involves decisions relating to centralized or decentralized buying, merchandise
resources and negotiation with suppliers. Merchandise Control: deals with maintaining
the proper level of inventory and protecting it against shrinkage (theft, pilferage etc.).
• Store Location: Location is critical to the success of a retail store. A store's trading-
area is the area surrounding the store from which the outlet draws a majority of its
customers. The extent of this area depends upon the merchandise sold. For example
some people might be willing to travel a longer distance to shop at a speciality store
because of the unique and prestigious merchandise offered. Having decided on the
trading area a specific site must then be selected. Factors affecting the site include,
traffic patterns, accessibility, competitors' location, availability and cost and
population shifts within the area.
• Store Image: A store image is the mental picture, or personality of the store, a retailer
likes to project to customers. Image is affected by advertising, services; store layout,
personnel, as well as the quality, depth and breadth of merchandise. Customers tend to
shop in stores that fit their images of themselves.
• Store Personnel: Sales personnel at a retail store can help build customer loyalty and
store image. A major complaint in many lanes of retailing, is the poor attitude of a
salesperson. There is a growing trend now, to provide training to, these sales clerks to
convert them from order takers to effective sales associates.
• Store Design: A store's exterior and interior design affect its image and profit
potential. The exterior should be attractive and inviting and should blend with the
store's general surroundings. The term "Atmospherics" is used to refer to the retailer's
effort at creating the right ambience. Merchandise display is equally important. An
effective layout guides the customer though the various sections in the store and
facilitates purchase.
• Promotion: retail promotion includes all communication from retailers to consumers
and between sales people and customers. The objective is to build the stores image,
promote customer traffic, and sell specific products. It includes both, personal and non
personal promotion. Personal communication is personal selling - the face to face
interaction between the buyer and the seller. Department stores and speciality stores,
emphasize this form of promotion. Non personal promotion is advertising. The media
used are TV, Radio, Newspapers, Outdoor displays and direct mail, other forms of
promotion include, displays, special sales, give always and contests etc.
• Credits & Collections: Retailers are generally wary of providing credit, because of
additional costs-financing accounts receivables, processing forms and bad debts etc.
But many customers prefer some form of credit while purchasing. This explains the
popularity of different types of credit cards and debit cards.
Multi Channel Retailing: Traditional store based and catalogue retailers are placing more
emphasis on their electronic channels and evolving into multi channel retailers, because they
can reach new markets and overcome limitations posed by traditional formats.
RELIANCE COMPANY PROFILE
RELIANCE GROUP
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private
sector enterprise, with businesses in the energy and materials value chain. Group's annual
revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited,
is a Fortune Global 500 company and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward
vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum
refining and oil and gas exploration and production - to be fully integrated along the materials
and energy value chain.
The Group's activities span exploration and production of oil and gas, petroleum refining and
marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and
retail.
Reliance enjoys global leadership in its businesses, The Group exports products in excess of
USD 15 billion to more than 100 countries in the world. There are more than 25,000
employees on the rolls of Group Companies. Major Group Companies are Reliance Industries
Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail
Limited) and Reliance Industrial Infrastructure Limited.
FOUNDER PROFILE
"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream
It, you can do it."
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global
leader in the materials and energy value chain businesses.
H.S.Kohli
Nikhil R. Meswani Executive Hital R. Meswani
Executive
Director Executive Director
Director
RELIANCE FRESH
APKA FRESH APKA PADAOS ME
India’s Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been first off the
blocks by launching its first Reliance Fresh outlets in Hyderabad,
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across
the country. The reliance fresh supermarket chain is ril’s rs 25,000 crore venture and it plans
to add more stores across different g, and eventually have a pan-India footprint by year 2011.
The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products. Besides, the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people, according to the company. The company also
has plans to train students and housewives in customer care and quality services for part-time
jobs.
• Forge strong and lasting bonds with millions of farmers and will transform the
Relationship with customers to a new level
• Offer unmatched affordability, quality, convenience, service and choice
• Offer our customers the widest range of fruit and vegetables at the best prices in
the neighborhood
• Provide for the daily needs of our customers by offering staples, grocery and
household products at great prices
• Offer consistent high quality, unbeatable freshness and great service so that our
Customers know that we can be trusted every day.
ACTIVITIES GROUPS WITHIN THE STORES
(a)Indenting – DC Delivery:-
Indenting will be happen after checking stock in the store and goods in transit. Or whenever if
required any changes in indenting due to season, weekends or any festivals then the quantity
is modified. For branded goods there is a automatic indenting system which is handled by the
head office (Mumbai). Delivery of fruit & vegetables is after 48hours after being raised.
Indenting for milk and dairy products is delivered after 36 hours.
PO (purchase order) for bakery supply is raised in the store and also released to the vendors
by the stores. PO on vendors can be raised only once each day & it will be valid for 24 hours.
2) Receiving:-
All the Dry DC delivery will be checked by a store staff in the DC staging area before
packing and loading. This is to minimize delivery count error and ensure that right quantity is
delivered to the stores. Behind this all the activity owner is Store Manager.
Receiving indented goods from the DC & CPC as per the delivery schedule. At the time of
receiving goods from DC many things which is followed by the SM, ASM,& CSA:-
Check the seal in front of driver.
Note down the air condition temperature.
Inspect stocks for transit damages.
If any HU (Handling unit) / article is found damaged, excess, or missing noted it on
the trip sheet for return to DC.
Do the GRN (Goods return note) for the delivery for the actual received quantity.
Stores are not unloading transit damaged stocks. Transit damages will be returned to
DC in the same delivery truck.
The main focus during goods receiving must be to unload the crates/ cartons from the
truck as quickly and safely as possible.
(c) Receiving from Vendors
Procedure for receiving goods directly from vendors. Behind this whole activity
owner is store manager/ asst. store manager. Reliance fresh stores indenting specially
bakery, beverage and books/magazines and music. SM/ASM Checks:-
Check the deliveries for quantity, damages and freshness and accept only good
products as per shelf life norms.
Do not accept any short shelf life or damage quantity from vendor and reduce it from
the invoice if required.
Remove all expired products from the shelf and get them replaced with fresh product
without any GRN for the same.
In case of books/magazines and music SM/ASM check bar-codes on the books or
music CDs delivered by the vendor & return the unsold items to the vendors.
Vendors and store staff check physically check DSD deliveries for damages and
freshness and accept only fresh saleable products.
3) Replenishment of goods
Process of moving goods from goods receiving area to the respective bays/freezers/chillers as
per the priority fill rule.
Frozen products received must have first priority for stacking in the Freezers.
Strictly follow FIFO
Place previous stock in the front/top of the shelf.
Chilled product received must have second priority after frozen product for stacking
in the chillers.
(a) Changing SELs for those SKU’s where price has been changed. All the changing
of SKU’s is done by headquarter Mumbai.
5) Managing Planogram
Store check that all new promotional stock has been received from the DC and the
free gift under promotional offer are bundle along with the promotional stock. If the
free gift is too large to be accommodated on the shelf – the gift should be provided to
the customer at the till.
Put up new promotional signage above the end cap at the marketing defined
locations.
ASM/SM briefs the staff at the morning and afternoon meeting on the promotion
details.
Staff need to be briefed on the following :
Details of the promotion
Period of the promotion
Advantages to the customer
Any special arrangements at the till
Sales target for the promotion
Process for dealing with left over promotion stock
If the customer brings the promotion item back for exchange / refund – the customer
has to bring back the free offer as well. Exception can be made at the customer’s
favour at discretion of store manager.
(a) For F&V crates are received carefully for the item not for sale as per reliance retail
quality and are removed from the shelf.
(b) It is done by CSA / F&V champion.
EXPIRY:-
(a) Near expiry product is markdown as per the RR rule.
(b) An expired product is segregated and are treated as per following.
Markdown criteria:-
Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager.
Dumping of damages & expiry product:- Treatment for damaged & expired product are
done in following manner:-
(c)Dump on arrival:-
On arrival of goods (F&V stock received from DC) poor quality goods are
segregated.
It is kept in separate place in the store with the sticker “dumped on arrival – not
for sale” along with receiving date.
And the respective SM is informed.
In the GRN (goods received roles) for the delivery, poor quality stocks are
entered as “Damaged Quality”.
Further it is kept for inspection and area F&V executive is informed. E-mail is
send to the F&V head / F&V category head.
Finally dumped stocks are hand over to garbage agency.
In case the GRN is done at the back end maintain a record of the DUA and also
record the some on the invoice that is sent to the commercial team.
(9) Returns:-
SKUs by count:-
(i) Product variants are segregated. Number of units are counted and stickers are pasted
with the quality on SKUs.
(ii) It is continued until all the SKUs are not counted.
(iii) PI count in the HHT is opened (all PI document together) and quantity is entered after
scanning the EAN / article code of the SKUs from the product in the HHT PI
document.
(iv) It is continued in this manner till all the SKUs in the back of store is counted and the
quantity is entered in the PI documents with the help of HHT.
(e) Store Opening :-
(i) Store shutter is opened.
(ii) Burglar alarm is put off.
(iii) Entry for collection of keys and store opening details are recorded in the
register kept at the security.
(iv) Lights are switched on and all the equipments are checked for working made.
(v) Generators are checked for water level, engine oil and Diesel.
PROMTNESS IN SERVICES:
SCHEMES: