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RELIANCE FRESH
REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT
FOR
POST GRADUATE PROGRAMME IN MANAGEMENT
BY
Dyutismita Sarkar (EIILM/PGP/09-10/D031)
ACKNOWLEDGEMENT
With due respect I acknowledge the humble efforts of the following persons:
• Mr. Sobhan Banerjee, Deputy Manager, HR, Reliance Retail Ltd.
• Mr. Palash Chakroborty, Store Manager of Reliance Fresh
(Deshapriyo Park store)
__________________
Dyutismita Sarkar
INTRODUCTION 5
COMPANY PROFILE 7
OBJECTIVES 8
METHODOLOGY 9
FINDINGS 24
RECOMMENDATION 27
STORE ACTIVITY 30
CONCLUSION 35
LIMITATION 37
A Comprehensive Study on Retail in Reliance Fresh Page 4
REFERENCES 38
ANNEXURE 39
INTRODUCTION
Retailing consists of the sale of goods or merchandise from a fixed location,
such as a department store, boutique or kiosk, or by mail, in small or individual
lots for direct consumption by the purchaser. Retailing may include
subordinated services, such as delivery. Purchasers may be individuals or
businesses. In commerce, a "retailer" buys goods or products in large quantities
from manufacturers or importers, either directly or through a wholesaler, and
then sells smaller quantities to the end-user. Retail establishments are often
called shops or stores. Retailers are at the end of the supply chain.
Shops may be on residential streets, shopping streets with few or no houses or
in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a
shopping street has a partial or full roof to protect customers from precipitation.
Online retailing, a type of electronic commerce used for business-to-
consumer (B2C) transactions and mail order, are forms of non-shop retailing.
Retail in India started with the concept of weekly markets, where all the traders
gathered at one big place to sell their products every week. People came to
these weekly markets to buy the household items for the next one week. Village
A Comprehensive Study on Retail in Reliance Fresh Page 5
fairs and melas were also common as it had more of an entertainment value.
Once the people started getting busy with their lives and 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 stores and shopping malls. But
still a large number of Indian consumers depend on the self-organized retail
shops for their daily needs.
Retail business is a profitable sector in the first world countries and an
emerging sector in India with tremendous potential.
COMPANY PROFILE
Reliance Fresh comes under Reliance Retail Ltd. It is the convenience store
format which forms part of the retail business of Reliance Industries Ltd of
India which is headed by Mr. Mukesh Ambani. It was incorporated on 30th
October 2006. It launched its first retail format called Reliance Fresh in
Hyderabad on11 Nov in 2006. Spread over 2,000-5,000 sq ft, 11 such Reliance
Fresh neighborhood convenience stores were come up in the city. Its head
quarter is situated in Mumbai and is known as NHQ, i.e., National Head
Quarter. Now it has almost 720 stores across 13 states including Chennai, New
Delhi, Hyderabad, Jaipur, Mumbai, Chandigarh, Ludhiana, Orissa, Uttar
Pradesh and West Bengal. The strategy is to open one Reliance Fresh store in a
radius of three to four km to serve 1,000-2,000 families. This means about 30-
40 stores in the major metros. All the stores opened have an average area of
OBJECTIVES
METHODOLOGY
Next I asked them how they got to know about Reliance Fresh and I saw
that-
• 53% of the respondents live in the same locality and so they
automatically get to know about Reliance Fresh as they share the same
locality.
• 22% of them have come to know through their friends and relatives.
When I asked customers whether they are satisfied with the display of
products, I got the following replies-
It is necessary to know that whether the customers are satisfied with the
availability of the products at the store. Availability of the products means all
variety of products which the store sells.
When I asked customers whether they are satisfied with the availability of
products in the store, almost half of the respondents fall in satisfied category
(both satisfied and very satisfied) and thus I got-
• 41% are satisfied.
• 10% are highly satisfied.
• 33% are moderately satisfied.
• 15% are dissatisfied.
• 1% is highly dissatisfied.
According to the survey, majority of the respondents are satisfied with the price
and offers available at store. I got-
• 43% are satisfied.
• 10% are highly satisfied.
• 35% are moderately satisfied.
First I need to know what basket offer actually is. Basket offer actually means
combo offers. This includes some specific combination products at a
discounted price, like 5kg Pillsbury Atta, 3 liters Nature Fresh Actilite Soybean
oil and 2 kg R-value Sugar can be bought for Rs. 349/-, but the MRP is more
than Rs. 400. This is a basket offer.
When I asked how many customers avail basket offers I observed- most of
them do not avail these offers.
• 60% of the respondents don’t avail it.
• 40% of them avail basket offers.
From the survey it can be said that customers are very satisfied with the billing
speed during rush hour. More than half of them fall in satisfied category-
• 42% are satisfied.
• 20% are highly satisfied.
• Whereas 23% think it is moderate.
• 12% are dissatisfied.
• 3% are highly dissatisfied.
Reliance also offers home delivery facility free of cost. But the chart says that
50% of the respondents do not avail home delivery facility. This may be
because of two reasons- first, customer has to shop for at least Rs. 700 and
second, it offers home delivery within 2 km distance.
Among those who avail this facility-
• 20% are satisfied.
• 10% are highly satisfied.
• 6% say it’s moderate.
• 10% are dissatisfied.
• 4% are highly dissatisfied.
When I asked the customers who they think is the closest competitor of
Reliance Fresh, I got to know that-
• Majority of the customers almost 39% think that Spencer is the closest
competitor.
• Followed by Big Bazar (28%).
• Food Bazar (15%).
• A very few respondents supported Spinach and More (1% each).
A Comprehensive Study on Retail in Reliance Fresh Page 19
Some of them voted for two, like-
• 3% voted for Food Bazar and Spencer.
• 2% for Big Bazar and Spencer.
• 4% for Big Bazar and Spencer.
• 1% of them supported all three of Food Bazar, Big Bazar and Spencer.
• But some of the respondents (6%) could not answer the question as they
are not aware of other stores well.
• 59% of the customers prefer to visit the store once in a week or twice in a
week. That means they prefer to visit the store frequently. They buy their
products on weekly basis.
• 51% of the customers are satisfied with the products available, though
48% of total customers fall on the dissatisfaction category and they need
more variety of brands.
• 69% of the customers are satisfied with the display of products. That
means they find their products very easily when they visit the store.
• 53% of the customers are satisfied with the price and offers provided by
the store, though 45% of total customers are not satisfied fully. They
think more discounts should be provided on products.
• 60% of the customers don’t avail basket offers. But those who avail it are
satisfied with the combination of products. Some customers are not
aware of the combinations offered.
• 39% of the customers are satisfied with the price and quality of Reliance
Private Label products. But 17% of the customers are not availing it.
• 50% of the customers don’t avail home delivery facility. One reason is
that, reliance provides home delivery facility within 2km around the
store. So, the customers who do not live within 2km of radius from the
store can’t avail this facility. Another reason is, if customers shop for at
least Rs. 700/- then only they can avail this facility. But 36% of total
customers are satisfied with this facility.
• 62% of the customers are satisfied with the billing speed and check out
time.
• 73% are satisfied with the overall customer service at the store.
Now comes what I found from my observations and experiences during the
project. I have not used any questionnaire and this is based only on my
observations.
• The billing speed of cashier during rush hour is very good. But the
problem with Deshapriyo Park store is that it has two cash tills but one
till is not working due to system issue. So, the store has to depend on one
till only, making the customers wait in a queue during rush hour.
• There are some products which were available in the store earlier but it is
no more available now, like Dosa rice, Dudheshwar rice etc. Though
these products still has demands.
• Many customers are not aware about the offers which are going on at the
store. They want more tele calling and sms from the store, so that they
can know about the offers.
• I often noticed that CSAs are not conveying the offers to the customers
and some of them don’t push sale much.
• According to the customers local market and other organized retail have
more variety of products.
• Reliance Fresh (DP) should increase their store awareness among the
existing customers and try to attract new customers by doing different
types of promotional activities, like competitions, game shows,
distributing leaflets etc.
• 50% of the total customers are not availing Home delivery facility. This
basically can be because of two reasons- Reliance Fresh Deshapriyo Park
offers home delivery if customers shop for Rs. 700 or above and the
maximum limit is 2 km from the store. If the minimum limit of shopping
bill is decreased more customers can avail this facility. It will increase
the acceptability of the store to customers.
• Store can again start to sale those products which were available earlier
but not available now.
• Store can talk to Local Bazar Samiti to start selling non-veg items in
store.
• Store can provide more tele calling and sms to make the customers aware
of the offers going in the store.
• Some staffs of the store need more training on customer service and push
selling. Each staff should be made aware of the offers and prices
available at the store to provide better customer service.
• Store can try to sale fresh fruits and vegetables as customers often
complain about the quality of fruit and vegetable.
• Reliance Fresh can keep the price at par with local market to gain
competitive advantage over local stores.
• FEFO & FIFO Maintenance- FEFO stands for First Expire First Out
and FIFO stands for First In First Out. It tells that the products which
expire first should be kept in the front and the products which have
current manufacturing dates should be kept at the back. This is to ensure
that the store should have less expired products.
• SOD- SOD stands for Start of the Day. It is the first job that the store
needs to do. Without SOD the store can’t start any of its activities. It
involves certain activities, like the store has to mention previous day’s
cashier and the amount of cash done by him. It’s known as Cashier
Declaration. Store gets a mail from the head office declaring stock of
certain products. Store has to check those quantity and reply back to head
office. It’s known as Stock Declaration. SOD also declares the offers of
that day.
• GRN- GRN is basically Goods Received Note. When store receives any
good from either Distribution Center or Vendor it issues a GRN. The
name, quantity and price of products are mentioned here. One copy is
kept with the store and one copy is kept with the sender of the products.
• Mark Down- When a product is very near to its expiry or its shelf life is
going to finish the store sells those products at a lowered price. This is
known as Mark Down. Store manager can set up to 15% mark down. The
store has to send a mail to the zonal office. But for more than 15% mark
• Dump- When the goods are totally expired or damaged store cannot sale
those goods. They need to dump those goods and make an entry in the
system and to inform the SLP (Security and lose preventions).
• Redeem R-one Voucher- R-one card holders are given certain points
with each purchase if they swipe their cards. When they collect at least
25 point they can redeem those points against a voucher with which they
can buy products from store without paying cash. I redeemed those R-
one vouchers through system.
• SEL Printing- SEL means Shelf Edge Label. It is a small tag with name,
code, and price of the product and these are placed on each shelf having
that certain product. I have printed SEL with the help of HHT machine
(Hand Held Terminal).
• EOD- EOD stands for End of the Day and it is the last activity done in
the store. It is a declaration about total sales, item sold and quantity sold
in a particular day.
• Exposure of Retail industry: Before going to the SIP I did not know
much about Retail Industry. But after finishing this project I got an
exposure of Retail, an extremely profitable and established business in
the first world countries and an emerging sector in our country. As I have
chosen Retail as my minor specialization this experience will help me in
my future.
A Comprehensive Study on Retail in Reliance Fresh Page 32
• Time Management: I learned how to manage a number of tasks in a
given time. At store I had to deal with customers and I was given tasks
by the store manager and store supervisor which I had to finish on time.
At the same time I worked on my project. Thus I learned time
management.
During the project I faced certain limitations. All customers did not respond to
our survey. That may be because of two reasons. Some of them were in hurry;
they didn’t have time for answering the questions. Some of them were not
interested to answer the survey.
BOOKS:-
Statistical Tools for Managers, D.P. Apte
SITES:-
• http://en.wikipedia.org/wiki/Reliance_Fresh
• http://www.reliancefresh.info/
• http://ekikrat.in/Reliance-Fresh
Name:
Age: Sex:
Phone no.:
[1- Highly Dissatisfied, 2- Dissatisfied, 3- Moderate, 4- Satisfied, 5- Highly
Satisfied]
1. How frequently do you Visit Reliance Fresh?
a) Once a week b) Twice a week c) Once a month
d) Twice a month e) Thrice a month
3. How would you rate Reliance fresh regarding the price and
promotion offers available?
a) 1 b) 2 c) 3 d) 4 e) 5
3. How do you rate the billing speed of the cashier in Reliance Fresh
during rush hour?
a) 1 b) 2 c) 3 d) 4 e) 5