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A

Presentation on

Reliance fresh
BY ROHIT KUMAR AND

SHIPRA SRIVASTAVA

Reliance

Fresh is the convenience store

format Part of Reliance Industries of India which is headed by Mukesh Ambani RILs dream of retail revaluation got kickedstarted in AP when its Reliance Fresh supermarket opened its doors to World

Following

the first , company opened 10 more stores as a first step towards creating a mega retail chain across the country The Reliance Fresh supermarket chain was Rils Rs. 25000 crores venture It sells fruits , vegetables, stapels ,groceries, and dairy products

Retail

chain closely follows the moves of global players like Wal-Mart store Inc and Metro AG seeking to open shop here in country It has almost more than 500 fresh across the country

Vegetables and fruits. House hold Items. Food and Beverages. Groceries. Dairy Products. Refrigerated products. Non food items. Ready to eat items.

Product range

Product

Labeling. Product Packaging. Arrangement. New products. Product Quality. Launched new products of its own. Home Delivery.

Discount pricing strategy. Wide price range of each items. Credit card acceptance. Accept coupons. Competitive prices.

Price marked in paisas.

comparable cost.

Inefficient

food chain supply

Intermediatory profit margin Wastages in transit Sourcing out requirement

Eg. Banjara hill outlet (A.P)

Up

to mark inventory Target urban citiess

Advertising
Sales

Promotion Festive season special offers Live announcement & spot discounts Reliance Fresh membership cards Promotes new product. Orgnising events Providing gifts-Free goods. All these are common strategies.

STRENGTHS: Reliance

has a strong financial backup. Reliance does contract farming which is beneficial to them. Private label sales Reliance SELECT. Reliance has a network of 1600 channels in the villages from where they directly purchases vegetable and fruits. High brand equity. Quality assurance. Horizontal and backward integration
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Poor

inventory control. Staff not qualified and is unaware about the products. No parking area provided. Fruits and vegetables not always fresh. Staff takes more time in billing (queuing time).

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In

store experience improvements. Targeting area more prone to improvements. Increase number of farmers in next 5 years. Global expansion. Growing retail market Increasing purchasing power of consumers

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Government

policies. Unorganized retail. Increasing real estate prices which leads to high rentals. Global retailers who operate on thin margin. Reliance is looking for fairly high margin business model. International retail giants.

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POLITICAL:-

Most

of the processed food item have been exempted from licensing except alcoholic beverages. FDI up to 100% is permitted through automatic route. Custom duty has been substantially reduced. Corporate taxes is also reduced. Food industry is one of the growing areas identified for exports.

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Food

industry is growing at 13% despite of economic slowdown. Indias share in global food trade is increasing from 1.5% to 3%. Declared priority sector in 1999. It is expected to witness 50% increase in investment in 2012(investment in infrastructure of retail industry).

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Eating

habits of Indians are changing. Increasing personal health consciousness among Indians . Increase in nuclear families. Shift in product and service preferences. Increase in working women proposition. Life style changes.

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Technological

development for fast billing

and service. Better applications of IT in modern retail industry like supply chain, store management, CRM, oracle.

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TOWS Matrix
Internal (S) Financial backup, Quality
Increase varieties & better quality can expand their market share
Paying high rentals no issue, point of purchase & quality in order to give a good shopping experience

(W)
Poor inventory control, queuing time(staff not so skilled)

External
(O) Growing retail market, global expansion, increasing purchasing power of consumers (T)
Real estate prices, global retailers operating on thin margin, Int retail giants

Better ways of training

Discounts & coupons even for Free home delivery, 9 - Generate Alternative Strategies
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Bring

new format of food and caf. --

Reliance food
Reliance

ready to launch pharmacy retail

store
Invest

20k cr expected sales of 2 lkh cr

reliance

center will house everything that town needs

Expand Give

Service

training to staff

Improve

inventory control