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RELIANCE FRESH

-MANASI KALBURGI(215) -VINAYA MAGARE(230) -SACHET NAIK(236) -CHAITRALI PARALKAR(243)

AGENDA
Market Analysis Introduction Marketing Mix Business Strategy Controversies SWOT Analysis

Retail US$395.96Bn

Wal Mart US$400 Bn

MARKET ANALYSIS
95% of Indias retail sector small, family-run

stores. India's retail sector- 5th largest sector in the world with a CAGR of 10% contributing 22% to GDP. Introduction of new formats departmental stores, hypermarkets, supermarkets and specialty stores. Country Consumption Food dominates the shopping basket in India.
US
Japan and Britain India

9.7%
15% 53%

Reliance Retail Ltd

Reliance Hypermart

Reliance Wellness

Reliance Home Store

Reliance Fresh

INTRODUCTION
Reliance Fresh Establishment : 30TH Oct 2006 AIM:

To Bring high quality fresh food to customers at affordable price. Chairman : Mr. Mukesh Ambani. CEO : Mr. Gurinder Kapoor. Tagline: Your Friendly Neighborhood Store. First Outlet: Hyderabad (Banjara Hills) Headquarter: Mumbai Total No. of outlets: 560

0 2009 -100

-7 2010 -135

-200

-249
-300 -400 -500 -600 -557

Reliance retail Ltd Reliance Fresh

PRODUCTS
Vegetables and fruits House hold items Food and beverages All premiere brand + Private

label Groceries only private label Dairy products Non-veg food items Ready to eat items In-house brand Reliance Select

PRIVATE LABELS Maximum Space: Own Products Less Space: Nestle Maggi, MTR Masala, Pepsi Lays Chips.

RELIANCE SELECT
Covers : pulses

rice
spices Vegetables

Fruits
Dairy

PLACE
Each of our stores aim at catchments of only

about 2,000 households in a 2-3


Observation: Close to cross roads . Almost in all major areas in city.

PROMOTION
Main idea make bulk purchase Discount scheme days Saturday and

Sunday
Reliance fresh membership card Reliance

One
In store promotion through Danglers, Audio

Material, Leaflets,C.C.A.(Customer Care Associate)

PRICE
Most Competitive Prices Low prized private labels Discount on bulk buying

TARGET MARKET
Upper Middle Class and Middle Class. Urban, Semi Urban Areas. Age Group 20-45 years.

MAJOR COMPETITORS
Spencers

Big Bazaar
More

Other Players
Bharati Retail Godrej Aadhar

ITC Chaupal Fresh


Hariyali Kissan Bazaar

BUSINESS STRATEGY

SUPPLIERS
Fruits & VegetablesLocal Farmers
Other grocery-- Andhra Pradesh, Karnataka and

Tamil Nadu Training to farmers Produce as per market requirements Contract Farming

COLLECTION CENTERS
Main Source of 95% of fresh fruits and vegetables

Farmers New concept of Ranger Farms - Set up of collection centres across the State. Cleaning, grading and packaging of produce.

Advantages
- Elimination of middlemen - Cost Reduction - Improving quality. - Payment to farmers in cash. - Fair price for quality produce. - Employment Generation.

CONTROVERSIES
Local vegetable vendors in Jharkand attacked the

stores claiming that they were snatching their livelihood.


In August 2007, Uttar Pradesh Chief Minister

Mayawati ordered to close 10 new stores keeping view of Law & order situation.
In November 2007, Reliance Fresh stores are

attacked by Bharatiya Janshakti Party supporters headed by Uma Bharti.


Bhubaneswar: Traders and roadside vendors

opposed the opening of Reliance Fresh outlets in Orissa on Saturday forming a suicide squad

Shortcomings
Improper Market research
Conservative Mindset of buyers in Mysore Local vendors though offered a job, didnt take up

and opposed instead.


Corrective Actions Started Working as supplier to local vendors Changed Product Offerings in some outlets

SWOT ANALYSIS
Strengths

- Private label sale own products (Reliance Select) - Contract Farming - Low prices.
Weaknesses

-No credit facility.


-No differential pricing in case of vegetables . -Lack of skilled human resources for store operations

SWOT ANALYSIS
Opportunities

- Retailing concept is into growth stage.


- Opportunity to capture the market.
Threats

- Climatic conditions across the country . - High Petrol prices . - Government policies.

THANK YOU!!!!