1

SUMMER PROJECT/INTERNSHIP REPORT

ON
“RELIANCE RETAIL STORE OPERATION”

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.

• WHAT DOES THE RETAILING INDUSTRY INCLUDE?

• Department Stores
• Discount Stores
• Clothing Stores
• Specialty retailers
• Convenience Stores
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• Grocery Stores
• Drug Stores
• Home furnishing retailers
• Auto Retailers
• Direct Sales Catalog and mail order companies
• Some e-commerce businesses

• THE IMPORTANCE OF RETAILING

• Organized retailing in India was estimated at Rs.18, 000 crores in 2002-2003 and
has grown at about 40% over the last 3 years (Source KSA Retail Outlook).
• Retailing has a tremendous impact on the economy. It involves high annual sales
and employment. As a major source of employment retailing offers a wide range
of career opportunities including; store management, merchandising and owning a
retail business.
• Consumers benefit from retailing in that, retailers perform marketing functions that
makes it possible for customers to have access to a broad variety of products and
services. Retailing also helps to create place, time and possession utilities. A
retailer's service also helps to enhance a product's image.
• Retailers participate in the sorting process by collecting an assortment of goods
and services from a wide variety of suppliers and offering them for sale. The width
and depth of assortment depend upon the individual retailer's strategy.
• They provide information to consumers through advertising, displays and signs
and sales personnel. Marketing research support is given to other channels,
members.
• They store merchandise, mark prices on it, place items on the selling floor and
otherwise handle products; usually they pay suppliers for items before selling
,,
them to final customers. They complete transactions by using appropriate
locations, and timings, credit policies, and other services e.g. delivery.
• Retailing in a way, is the final stage in marketing channels for consumer products.
Retailers provide the vital link between producers and ultimate consumers.
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• RETAIL STRATEGY AND STRUCTURE

• Successful retail operations depend largely on two main dimensions: margin and
turnover. How far a retail enterprise can reach in margin and turnover depends
essentially on the type of business (product lines) and the style and scale of the
operations. In addition the turnover also depends upon the professional
competence of the enterprise.
• In a given business two retail companies may choose two different margin levels,
and yet both may be successful, provided the strategy and style of management are
appropriate.

MARGIN TURNOVER MODEL

• 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.

LOW MARGIN HIGH TURNOVER STORES

• Such an operation assumes that low price is the most significant determinant of
customer patronage. The stores in this category price their products below the
market level. Marketing communication focuses mainly on price. They provide
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very few services; if any, and they normally entail an extra charge whenever they
do. The merchandise in these stores are generally pre-sold or self sold. This means
that the customers buy the product, rather than the store selling them.
• These stores are typically located in isolated locations and usually stock a wide .
range of fast moving goods in several merchandise lines. The inventory consists of
well known brands for which a consumer pull is created by the manufacturer
through national advertising. Local promotion focuses on low price. Wal-mart in
the United States is an example and Pantaloon Chain or Subhiksha are Indian
examples of such stores.

HIGH MARGIN LOW TURNOVER

• This operation is based on the premise that distinctive merchandise, service and
sales approach are the most important factors for attracting customers. Stores in
this category price their products higher than those in the market, but not
necessarily higher than those in similar outlets. The focus in marketing
communication is on product quality and uniqueness.

• 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.

HIGH MARGIN HIGH TURNOVER STORES

• These stores generally stock a narrow line of products with turnover of reasonably
high frequency. They could be situated in a non commercial area but not too far
from a major thoroughfare. Their location advantage allows them to charge a
higher price. High over head costs and, low volumes also necessitate a higher
price.
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LOW MARGIN-LOW TURNOVER STORES

• Retail enterprises in this category are pushed to maintain low margins because of
price wars. Compounding this problem is the low volume of sales, which is
probably a result of poor management, unsuitable location etc. such businesses,
normally get wiped out over a period of time.

RETAILING FORMATS (CLASSIFYING RETAIL FIRMS)

• Regardless of the particular type of retailer (such as a supermarket or a department
store), retailers can be categorized by (a) Ownership, (b) Store strategy mix, and
(c) Non store operations. Figure 1.3 illustrates this concept.
• Form of Ownership
• A retail business like any other type of business, can be owned by a sole
proprietor, partners or a corporation. A majority of retail business in India are sole
proprietorships and partnerships.
• Independent Retailer
• Generally operates one outlet and offers personalized
service, a convenient location and close customer
contact. Roughly 98% of all the retail businesses in
India, are managed and run by independents, including
barber shops, drycleaners, furniture stores, bookshops,
LPG Gas Agencies and neighborhood stores. This is
due to the fact that into retailing is easy and it requires
low investment and little technical knowledge. This
obviously results in a high degree of competition..

• Most independent retailers fail because of the ease of

entry, poor management skills and inadequate
resources.

Retail Chain
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• It involves common ownership of multiple units. In

such units, the purchasing and decision making are
centralized. Chains often rely on, specialization,
standardization and elaborate control- systems.
Consequently chains are able to serve a large dispersed
target market and maintain a well known company
name. Chain stores have been successful, mainly
because they have the opportunity to take advantage of
"economies of scale" in buying and selling goods. They
can maintain their prices, thus increasing their margins,
or they can cut prices and attract greater sales volume.
Unlike smaller, independent retailers with lesser
financial means, they can also take advantage of such
tools as computers and information technology.
Examples of retail chains in India are Shoppers stop;
West side and IOC, convenience stores at select petrol
filling stations.

Retail Fjaipursing

• Is a contractual arrangement between a "fjaipurser"

(which may be a manufacturer, wholesaler, or a service
sponsor) and a "fjaipursee" or
• Fjaipursees, which allows the latter to conduct a certain
form of business under an established name and
according to a specific set of rules. The fjaipurse
agreement gives the fjaipurser much discretion in
controlling the operations of small retailers. In
exchange for fees, royalties and a share of the profits,
the fjaipurser offers assistance and very often supplies
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as well. Classic examples of fjaipursing are;

McDonalds, Pizza Hut and Nirulas.

Cooperatives

• A retail cooperative is a group of independent retailers

that have combined their financial resources and their
expertise in order to effectively control their
wholesaling needs. They share purchases, storage,
shopping facilities, advertising planning and other
functions. The individual retailers retain their
independence, but agree on broad common policies.
Amul is a typical example of a cooperative in India.

Store Strategy Mix

Retailers can be classified by retail store strategy mix,
which is an integrated combination of hours, location,
assortment, service, advertising, and prices etc. The
various categories are:
• (A)Convenience Store: Is generally a well situated,
food oriented store with long operating house and a
limited number of items. Consumers use a convenience
store; for fill in items such as bread, milk, eggs,
chocolates and candy etc.
• (B)Super markets: Is a diversified store which sells a
broad range of food and non food items. A supermarket
typically carries small house hold appliances, some
apparel items, bakery, film developing, jams, pickles,
books, audio/video CD's etc. The Govt. run Super
bazaar, and Kendriya Bhandar in Delhi are good
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examples of a super market. Similarly in Mumbai, we

have Apna Bazar and Sahakari Bhandar.
• (C)Department Stores: A department store usually
sells a general line of apparel for the family, household
linens, home furnishings and appliances. Large format
apparel department stores include Pantaloon, Ebony
and Pyramid. Others in this category are: Shoppers
Stop and Westside.
• (D)Speciality Store: Concentrates on the sale of a
single line of products or services, such as Audio
equipment, Jewellery, Beauty and Health Care, etc.
Consumers are not confronted with racks of unrelated
merchandise. Successful speciality stores in India
include, Music World for audio needs, Tanishq for
jewellery and McDonalds, Pizza Hut and Nirula's for
food services.
• (E)Hyper Markets: Is a special kind of combination
store which integrates an economy super market with a
discount department store. A hyper market generally
has an ambience which attracts the family as whole.
Pantaloon Retail India Ltd. (PRIL) through its
hypermarket "Big Bazar", offers products at prices
which are 25% - 30% lower than the market price.

Non Store Retailing

• In non store retailing, customers do not go to a store to

buy. This type of retailing is growing very fast. Among
the reasons are; the ability to buy merchandise not
available in local stores, the increasing number of
women workers, and the presence of unskilled retail
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sales persons who cannot provide information to help

shoppers make buying decisions
• The major types of non store retailing are:
• (A)In Home Retailing: Where, a sales transaction
takes place in a home setting - including door-door
selling. It gives the sales person an opportunity to
demonstrate products in a very personal manner.
He/She has the prospect's attention and there are fewer
distractions as compared to a store setting. Examples of
in home retailing include, Eureka Forbes vaccum
cleaners and water filters.
• (B)Telesales/Telephone Retailing: This involves
contact between the prospect and the retailer over the
phone, for the purpose of making a sale or purchase. A
large number of mobile phone service providers use
this method. Other examples are private insurance
companies, and credit companies etc.
• (C)Catalog Retailing: This is a type of non store
retailing in which the retailers offers the merchandise
in a catalogue, which includes ordering instructions
and customer orders by mail. The basic attraction for
shoppers is convenience. The advantages to the
retailers include lover operating costs, lower rents,
smaller sales staff and absence of shop lifting. This
trend is catching up fast in India. Burlington's
catalogue shopping was quite popular in recent times.
Some multi level marketing companies like Oriflame
also resort to catalogue retailing.
• (D)Direct Response Retailing: Here the marketers
advertise these products/ services in magazines,
newspapers, radio and/or television offering an address
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or telephone number so that consumers can write or

call to place an order. It is also sometimes referred to
as "Direct response advertising." The availability of
credit cards and toll free numbers stimulate direct
response by telephone. The goal is to induce the
customer to make an immediate and direct response to
the advertisement to "order now." Telebrands is a
classic example of direct response retailing. Times
shopping India is another example.
• (E)Automatic Vending: Although in a very nascent
stage in India, is the ultimate in non personal, non store
retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours. ATM's dispensing cash at odd hours
represent this form of non store retailing. Apart from
all the multinational banks, a large number of Indian
banks also provide ATM services, countrywide.
• (F)Electronic Retailing/E-Tailing: Is a retail format
in which retailers communicate with customers and
offer products and services for sale, over the internet.
The rapid diffusion of
internet access and usage, and the perceived low cost
of entry has stimulated the creation of thousands of
entrepreneurial electronic retailing ventures during the
last 10 years or so. Amazon.com, E-bay and
Bazee.com HDFCSec.com are some of the many e-
tailers operating.

THE WHEEL OF RETAILING

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• Is a hypothesis that attempts to explain the emergence

of new retailing institutions and their eventual decline
and replacement by newer retailing institutions? Like
products retailing institutions also have a life cycle.
• According to this theory new retailers enter the market
as, low margin, low price, low status institutions. The
cycle begins with retailers attracting customers by
offering low price and low service. Over a period of
time these retailers want to expand their markets and
begin to stock more merchandise, provide more
services, and open more convenient locations. This
trading up process. Increases the retailers’ costs and
prices, creating opportunities for new low price
retailers to enter the market.
• The evolution of the department store illustrates the
"wheel of retailing" theory. In its entry phase, the
department store was a low cost-low service venture.
With time it moved up into the trading-up phase. It
upgraded its facilities, stock selection, advertising and
service. The same department store then moves into the
vulnerability phase, because it becomes vulnerable to
low cost/low service formats, such as full line discount
stores and category specialists. Figure 1.5 illustrates
this theory. While the wheel hypothesis has a great deal
of intuitive appeal and has been borne out in general by
many studies of retail development, it only reflects a
pattern. It is not a sure indicator of every change, nor
was it ever intended to describe the development of
every individual retailer.

RETAILING DECISIONS
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• 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.

EMERGING TRENDS IN RETAILING

• In recent years the nature of retailing has changed dramatically, as firms try to
protect their positions in the market place. Many customers are no longer
willing to spend as much time on shopping as they once did. Some sectors of
retailing have become saturated, several retailers are operating under high
levels of debt and number of retailers after running frequent "sales", have found
it difficult to maintain regular prices.
 • Retailers are adapting to*the shopping needs and time constraints of working
women, dual earner households and the increased customer interest in quality
and customer service:
• Shopping Malls: A growing number of shopping malls are coming up all over
the country. In north India; there seems to be a proliferation of such malls
surrounding Delhi, in places like Gurgaon and Noida. In general they target
higher income customers, with their prestigious specialty shops, restaurants and
department stores.
• Factory Outlets: Manufacturers are opening factory outlets to sell off surplus
inventories and outdated merchandise. This forward vertical integration gives
manufacturers greater control' over distribution, than selling the merchandise to
off price retailers. Mohini knitwear of Ludhiana (Punjab) and number of
woolen and hosiery manufacturers set up their outlets in Delhi during winters.
• Non Store Retailing: Non store retailing is accelerating at a faster rate than in
store retailing. This includes direct marketing. In Home shopping TV shopping
and e-tailing etc.
• Diversification of Offerings: Scrambled (unrelated products or services)
merchandising is taking on a broader meaning and inter type competition
among retailers is growing. For instance Citibank is organizing tourist trips and
sending mail order catalogues to its credit card customers.
• Impact of Technology on Shopping Behaviors: The way retailers present
their merchandise and conduct their transactions are changing. Cable TV
Channels are used to present merchandise, Videos have replaced catalogues
and computer linkages to acquire information and make purchases are on the
increase. Virtual shopping through PDA's is another possibility.

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.

BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED

Mukesh D. Ambani Chairman &

Managing Director

H.S.Kohli
Nikhil R. Meswani Hital R. Meswani
Executive
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.

Reliance Fresh will…

• 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
• It will open 5 more stores in Jaipur.
 RELIANCE FRESH IN JAIPUR

In Jaipur there are 22 outlets of Reliance Fresh out of them 5 are studied:

1. Vijaypath, Mansarovar

2. Maharani Farm

3. Ridhi Sidhi

4. Sanjivni Hospital

5. Barkat Nagar

On an average turnover is 50, 000 in Jaipur, where as compare to others cities it is too
low.

Their main aim is to provide good quality products in lower price & customer service
& customer satisfaction.

According to reliance fresh store manager they were satisfying 75% of customer
expectations.

These Are the Problems We Found In Reliance Fresh in Jaipur:–

- Jaipur is a cultural oriented cit

- The most of the consumer will prefer to go for local market

- Reliance is situated in high income consumer area

There is limited consumer

- Advertising strategy is not good in Jaipur.

OBJECTIVES:

- It is the organizational study

- identify the reliance marketing strategy in Jaipur

 - We provide information to reliance fresh to focus

On middle class consumers in Jaipur

Marketing Research

Marketing research as a functional area of management is

becoming increasingly important as compared to other field. All

decisions in modern business organization revolve around the

marketing information. Because the success of the business does

not depend upon the guess work rather have the correct information

about the customer, what they want, how want, how much they are

able to pay, and the substitute available in the they market etc. This

information’s can be collected and utilized the help of marketing

research.

Marketing research is the systematic and objective

identification, collection, analysis, discrimination, and use of

information for the purpose of improving decision making

related to the identification and solution of problem in

marketing.

Types of Research

1. considered. Basically there is a little knowledge on which to

build.

2. Descriptive Research: Descriptive research embraces a

large proportion of marketing research. The purpose is to
provide an accurate snapshot of some aspect of the market
environment. In descriptive research, hypothesis often will
exist, but them tentative and speculative.
 3. Causal Research: When it is necessary to show that one
variable

Causes or determines the values of other variables, a casual

research

Approach must be used. Since data collection method is

from surveys,

Hence Descriptive type of research is used for analysis of

the data.

All research approaches can be classified into three general

categories research:

3. Exploratory Research: Exploratory research is used when

one is seeking insights into the general nature of the problem,
the possible decision alternatives, and relevant variables that
need to be

Types and collection of data used

Basically there are two types of data which are used in marketing
research process.

1. Primary Data

A. Observation
B. Interview
C. Questionnaires
Interview: Interview is one of the chief means of collecting data
in research process. Interview may be defined as a systematic
conversation initiated for a specific purpose and focus on certain
content areas.

Surveys: There are mainly three types of surveys, depending

upon the method of data gathering used: Personal
surveys, telephone surveys and mail surveys.

Advantages of Surveys

1. Wider Distribution
2. Less Distribution bias
3. Thoughtful reply

The primary data under processing is collected from both direct

filling the questionnaires and through telephone interviews also.

2. Secondary Data: The data once collected by once person

become the secondary data if used by another person.

Sources of Secondary Data: The various sources of data are as

follows:

1. Bibliography
2. Directories
3. Televisions
4. Newspapers
5. Journals
6. Websites

The Secondary data like information of existing customers,

information about company has been taken from company website,
company’s yearly chronicles and employee’s of the company.
 Sampling

A sample is a part of population. The sample should be

representative of the population and the information obtained must
be reliable. In any survey where reliability is desired, the errors and
variances have to be controlled, measured and interpreted.

RESEARCH DESIGN

 The type of Research Design will be Descriptive

 The types of Primary Data collection procedures that would

probably be used.

 Population –Dealers, distributors, fleet owners, company’s

representative in Jaipur.

 Process – Sampling

 Method of data collection – Typed Questionnaire

Attitude Measurement

Attitude is psychological constructs, a way of conceptualizing the

intangible. Attitude can’ really be observed or measured directly
because their existence is inferred from their consequences.
Attitudes are mental states used by individuals to structure the way
they perceived their environment and guided the way respond to it.

Types of Attitude measurements Scale: There are four types of

measurement scale as follows.

1. Nominal Scale: In a nominal scale, objects are assigned to

mutually exclusive, labeled categories but there is no
necessary relationship among the categories.

2. Ordinal Scale: An ordinal scale is obtained by arranging

them in order with regards to some common variable. The
question is simply whether each object has more or less of
this variable than some other objects.

3. Interval Scale: In an interval scale the numbers used to

rank the objects also represent equal increments of the
attributes being measured.

4. Ratio Scale: A ratio scale is a special kind of interval scale

that has a natural zero point.

The Nominal Scale is used while designing the questionnaire. Both

close ended and open ended questions are put together in the
questionnaire.

DATA COLLECTION:

PRIMARY DATA – Collected from consumers and suppliers, reliance fresh

employees

SECONDARY DATA – Collected from internet, articles, and news papers.

The information is the major part of any research proposal to attain certain objectives
we require both secondary and primary data which is discussed above

HYPOTHESIS TESTED:

The hypothesis tested on both reliance fresh and people of Jaipur.

H0: Reliance fresh is not famous & not significant in Jaipur.

H1: Reliance fresh is famous & highly significant in Jaipur.

LIMITATIONS:

Every research has certain limitation so there is no research is free from limitation
same thing happen in this research which is discussed below:

- Less investment in advertising in Jaipur city

- People are very conservative

- Primary data is not sufficiently available

- Much of the research done was based on consumer and supplier survey

- Research based on Jaipur city

- Last but not least time constraint.

- NEED OF STUDY:-

A detailed study in Reliance Retail focusing primarily on two areas of their

operations.

1. Retail stores operations based on aspects :-

I. General operations according to the company manuals.

II. Store operations based on SUSD (Shutter up to Shutter down)

 2. An analysis of footfall, ticket size & catchment of Reliance fresh stores
operating in Jaipur district in order to determine their performances based on
indicators like sale, sale per sq. feet , gross margin, shrinkage , dumping and
ticket size for the month of

January 2011 as well as their comparison with month of Febuary 2011.

ACTIVITIES GROUPS WITHIN THE STORES

Getting Products to Shelf

1) Indenting & Purchase Orders (PO’s)

(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.

(b) Raising PO for Bakery

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:-

(a) Checking of Delivery in DC

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.

(b) Receiving Goods in Store: From DC & CPC

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

(a) Replenish Shelf from Goods Receiving Area

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.

4) Managing Price Changes

(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

Implementation of changes of Planogram

The Planogram indicates the location for each SKU on a shelf. This process describes
how to change Planogram. Changing of Planogram is wholly managed by
headquarter. Headquarter send new Planogram to store by mail. Changing of fixtures
and shelf heights, at
per new Planogram. The major change of shelf is less than 5 bays. Check quality of
stock received as per Planogram, raise an indent of additional stock if required. Stack
goods as per Planogram and readjust SEL to align with the left hand side of the first
facing going from the left. All the changes made on shelf to be signed off by store
manager. All the Planogram to be provided in standard format. Planogram indicate
shelf heights. Planogram is send to the store at least 2 days in advance of the change.
No stock to be displayed on the shelf if it not in the Planogram. If the F& V section
looks empty in the late evening because of stock outs, then store manager may change
only the F& V Planogram in a suitable manner to give appearance of full store.

6) Getting Products from Shelf to customers

(a) Promotion management (setting up the store for new promotions)

 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.
7) Stock Display Management

 Filling up the gaps on the shelves for SKU sold during the day is defined as
spot fill.
 Fill F&V in a similar manner using crates stored in the bottom shelf of the
wall racks, below heapers and in back room. Follow FEFO, FIFO rules.
 In case of F&V, remove the old crates, place the new crates on the racks and
then place the older products on top of the newer products – FIFO
 Checking of temperature of chillers and freezers is also a part of SDM.
 It is the process of checking and moving stocks to ensure that the older stock
gets sold before the newer ones.
 FEFO / FIFO to be followed for stock rotation for non F&V SKUs.
 The thing which is strictly followed is removal of damaged part of the F&V
will not be carried out at the shop floor under any circumstances.
 In every store every day employees check for date code check schedule for the
day in store perform.
 Employees removed expired products from the shelves and take them to the
back of the store.
 Employees identify & segregate near expiry products for mark down as per
markdown policy and guidelines.
 Procedure for selling loose staple products to the customer in desired quantity.
 Procedure for managing the concessionaire in our stores like the Pickles
counters, Sweet counters etc.
 Home delivery: for this there is some procedure which is followed by stores.
 Purchase a detailed street map of the local area e.g.
Eicher map
 Outline on the map the catchments which fall in 2 Km
radius of the store.
 Prepare a list of roads / building with in that area.
 They appoint two employees for Home delivery
champions (HDC) – for order taking, picking and
billing.
  Home delivery associate (HDA) – billing and delivery.
 There is two type of home delivery which is given by
the RF: Convenience order – this is a situation in
which the customer has come to the store, picked
items, got them billed and then request RF store team
to deliver to his residence. The payment in this case for
the goods has already been received.
Phone Orders - This is a situation in which the
customer does not carry out the activities of physically
picking, billing etc. but places an order on phone by
calling either at the store or at the call centre. The
payment in this case would be received once the
delivery CSA goes to the customer destination and
hands over the goods.

 Big orders store hire auto, rickshaws & it is

decided by store manager.

8) Managing waste and markdowns :

(a) Segregation of damaged and expiry in store :-

(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.

PRODUCT TYPE TREATMENT

DSD supply Exchange with fresh stock from the
vendor at the time of next delivery
DC supply Dump in store.

(b)Markdown for damages and near expiry:-

Damaged and near expiry products are markdown as per the following rules:

Markdown criteria:-
Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store
manager.

Up to Rs 30 or 30% of SP(whichever is lower) & it is also done by DM / AM.

Beyond Rs 30 or 30% of SP & it is done by state fresh head.

Dumping of damages & expiry product:- Treatment for damaged & expired
product are done in following manner:-

Loss type Action

(a) Type C damage
(b) All expiry – (DC supply & DSD
without RTV)
(c) Expiry – (DC supply with RTV)
• Dump in store (shown in SAP)
• Dispose in store.
• Dump in system (SAP)
• Display in store
• Exchange with fresh stock, fresh
vendor at the time of next delivery

 For processing of dump (damaged & expired) approval is obtained from store
manage.
 After dumping, all the dump are entered into dump register in the presence of
SM with his /her signature.
 The entire dumped product is then get hand overed to garbage collection
agency.
 For type C damaged product some part of each product is kept as proof.
 Finally the dump register is present near DM/AM for approval (signature).

(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:-

(a) Goods Return to DC:-

  A finalized list of good stock article for return to DC is obtained
from state merchandising team.
 According to the list stock of articles are segregated and are moved
to the back office.
 Return schedule is obtained from the state merchandising team and
packing of goods carton are planned.
 They are packed properly. Food and non-food items are packed
separately.
 And GRDC is created in SAP for the quality to be returned.
 Finally it is loaded and dispatched to DC in DC truck and return to
DC documents is get signed by the truck driver and is kept with
itself.

(b) Goods Return to Vendor:-

 Stocks which are to be returned to vendor are taken out to the back
room..
 DSD returns are segregated as per category guidelines.
 Return to vendor document is created in the store.
 Returns are loaded to the vendor’s vehicle.
 2 copies of vendor document are made and is got signed by the vendor.
 One copy is issued to the vendor and 2nd copy is filled as record.
 Security control register for returns are updated regularly

(c) Physical verification of stock:-

 All PI documents present in the system are checked and closed.
 Stocks take checklist is updated.
 It is managed with DC to ensure that there is no afternoon or evening
delivery on the stocks count day.
 Following are checked and ensure:-
(i) GRN for all DC deliveries have been prepared.
(ii) GRN for all DSD deliveries have been completed.
(iii) All damaged products (type c ) have been dumped.
(iv) All expiry product have been dumped.
(v) PI documents for stocks take is generated.
(vi) HHTs are managed and ensured that they working properly etc.

(d) Stocks count and reconciliation:-

 Objective of the count, the layout of the stores and the process are
briefly explained to the staff.
 For stock count staffs are delivered for counting of articles in fixtures
and for entering the count in the HHT.

Back of store – store take

SKUs by weight (F&V, loose staples, etc)
(i) Each loose article are weighed separately and quantity stickers are pasted.
(ii) It is continued until all SKUs are weighed.

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.

(f) Store closing:-

(i) Announcement is made for store closing 10 min before closing.
(ii) No. of tills to be closed or operated fully depends upon the no. of
customer in the store.
(iii) Ensure that no customer is present inside the store.
(iv) POS & EDC closure process is performed.
(v) It is checked that equipment is in order or not after which the store is
closed.
(vi) Security guard is got to put paper seal on safe and almirah.
(vii) All air-conditioners are switched off except server room a/c (which
must be maintained between 22-24 degree c )
(viii) Display lights and façade lights are switched off.
(ix) Back room lock is sealed with a paper seal.
(x) Burglar alarm in the store is updated and key register is signed in.
(xi) Finally shutters are locked.

On the sales floor-stock take:-

(i) Counting and weighing of bays are started, and quantity or count stickers are
pasted.
(ii) PI documents are opened , EAN/ article code on the products are scanned
using the HHT and the counted number is entered.
(iii) Similarly all the SKUs shelves and bays counted on sales floor and the
count entry is entered in the PI document.
(iv)Control sheet for the fixtures that has been counted are updated.
(v) Once all the articles in the store are counted and count entry is done in the
HHT , post the count data by pressing the “ post count” button in the HHT
only.
(vi)HHT would display the list of SKUs for which count has been not entered
then the article in the store is looked upon and count is updated in case the
article is present in the store and count entry was missed earlier.
(vii) The final counted data is posted once again by pressing the “post count”
button.
 (viii) Success log is checked to ensure that all the PI documents are successfully
posted.
(ix)The stock take report is generated is SAP and inventory differences is listed.
(x) In case of major variations record is performed and the count in the PI
document is changed and the count is reported.
(xi)The variation is checked and confirmed and then the difference is posted by
posting the PI documents in ZSTORE, using the ‘Post ‘option under “Phy
inv. Post” in the physical inventory menu.
(xii) The stock take check list lifted in the store.

The targets for the current month to any store are assigned according to the sales
figures of the preceding month. Usually the target for the current month is greater
than the sales achieved for the last month by 10-15 % in normal conditions. They can
also exceed to almost 25% in some cases where there is large scale supply of stocks of
certain kind seeing upon the arising opportunity for their sale.

STOREWISE REVENUE (All the figures are in lakhs)

SALES
Sr Store Store Area LMTD MTD MTD MTD LMTD
. code Name Achieve Targe Achieve Archive Vs MTD
N d t d d%
o
1 2118 VIJAYPA 4163 32.87 37.62 34.58 92 % 5%
TH
2 2119 MAHARA 2234 8.66 9.55 8.84 93 % 2%
NI FARM
3 2120 RIDHI 2111 17.60 20.25 17.59 87 % 0%
SIDHI
4 2121 SANJIVNI 2560 16.15 18.91 17.65 93 % 9%
HOSPITA
L
5 2122 BARKAT 4832 29.09 32.67 32.83 100 % 13 %
NAGAR

Result 28839 166.53 193.7 178.55 92 % 7%

Reliance Retail calculates its input per store in form of sales / ft / day in total no. of
hrs. of operation (from 7:00 AM till 9;30 PM). This cost of operation / input includes
rentals, logistics cost, labor costs, electricity charges and up keep and maintenance
charges. FTD (fixed till date) sale / sq ft. represents the break-even point for the
company. In case of January 2011 FTD takes into consideration. 31st days of
operation from 1st January 2011 to 31st January 2011. FTD sale/sq ft is assigned to
each individual store from the Mumbai based headquarters of Reliance Retail
SALES / PER SQ FT. UPTO 31St JAIPUR 2011

Sr. No Storecod Store Name Area FTD LMTD MTD

e
1 2118 VIJAYPAT 4163 41.2 25.5 26.8
H
2 2119 MAHARAN 2234 17.5 12.8 12.8
I FARM
3 2120 RIDHI 2111 34.1 26.9 26.9
SIDHI
4 2121 SANJIVNI 2560 32.7 20.4 22.2
HOSPITAL
5 2122 BARKAR 4832 32.5 19.4 21.9
NAGAR

Result 28839 28.0 18.6 20.0

So it can be seen that none of the nine operating. Reliance fresh stores in Jaipur have
been able to achieve their break-even point for the month of May 2009. Reliance
Fresh stores are on verge of completing almost 2yrs of their operation in Jaipur
district but they are yet to reach their breakeven point.

Out of the 47 Reliance fresh outlets in eastern region (including 5 from Jaipur) none
have yet reached their BEP.The Company assigns gross margin of operation to each
individuals stores based on their past performances of sales, inputs in current month,
shrinkages and dumping.

GROSS MARGIN UPTO 31ST JANUARY 2011

Sr. No Store Store Name Area

code FTD LMTD MTD
1 2118 VIJAYPATH 4163 15.3 % 15.8 % 14.5 %
2 2119 MAHARANI 2234 13.1 % 15.1 % 14.3 %
FARM
3 2120 RIDHI SIDHI 2111 8.9 % 14.7 % 6.8 %
4 2121 SANJIVNI 2560 15.4 % 15.9 % 11.3 %
HOSPITAL
5 2122 BARKAT 4832 12.1 % 14.7 % 13.1 %
NAGAR

Result 28839 14.0 % 14.7 % 14.1 %

Reliance Retail has a policy of not letting to exceed the shrinkage (loss of goods due
to theft & pilferage) & dumping (loss of goods due to expiry) to individually exceed
2% of the total sales. It was observed that due to practices like better in-store upkeep,
supply close to demand , better surveillance etc. the shrinkage & dumping were
restricted to the desired level in almost of the stores.

MONTH TILL DATE (MTD) DATA UPTO 31ST JAN 2011

Sr. No Store Store Name Area Shrink% Dump%

code
1 2118 VIJAYPATH 4163 1.0 1.4
2 2119 MAHARANI 2234 2.1 4.0
FARM
3 2120 RIDHI SIDHI 2111 0.9 3.4
4 2121 SANJIVNI 2560 2.5 2.5
HOSPITAL
5 2122 BARKAT 4832 1.4 1.0
NAGAR

Result 28839 1.4 2.2

NUMBER OF TICKETS SIZE:-

Sr. No Store Store Name Area FTD MTD

code
1 2118 VIJAYPATH 4163 576 15,238
2 2119 MAHARANI 2234 309 7,925
FARM
3 2120 RIDHI SIDHI 2111 460 13,766
4 2121 SANJIVNI 2560 573 14,892
HOSPITAL
5 2122 BARKAT 4832 634 17,074
NAGAR

Result 28839 4189 115,593

It was observed that against the target on only 4189 purchase all the 5 Reliance Fresh
stores of Jaipur registered combinedly 115,593 purchases.

Sales / tickets (ticket size) FTD represents the value of sales per purchase that the
stores should make in order to reach the BEP margin.

Sales /ticket (MTD) represents the value of sales per purchase actually achieved by
the store.

SALES PER TICKETS DATA UPTO 31ST JAIPUR 2011:-

Sr. No Store Store Name Area FTD MTD
code
1 2118 VIJAYPATH 4163 298 227
2 2119 MAHARANI 2234 126 112
FARM
3 2120 RIDHI SIDHI 2111 156 128
4 2121 SANJIVANI 2560 146 118
HOSPITAL
5 2122 BARKAT 4832 248 192
NAGAR

Result 28839 192 154

RECOMMENDATION

COMMUNICATION:

 Based on my ovservation I found that reliance fresh is

not able to make an advertisement properly as compare to big
bazaar or other retail store which is its competitor. so
company should make a proper team to let the people aware
about their schemes and offers being given by reliance fresh.
 Company should increase the number of counter so that it
may minimize the quie of the customers.
 Company should acquire more and more skilled people so that
it may satisfied their customer in all areas.

PROMTNESS IN SERVICES:

 Company should pay kind attention towards the existing

customer and try to provide them quick response in the
sphere of services so that they become BSNL’S loyal
customers.
 Many corporate houses was there who were reluctant to use
bsnl lease line provided that someone assure them to have a
promt services from them.

SCHEMES:
  Main competitor Airtel Tata and Reliance comes with various
schemes and margins on the other hand Bsnl is not giving any
sort of scheme and discount that is why many clients were
inclined toward using the lease line offered by other players..
After all business is all about profit and retailer wants some
profit and margins.

BEHAVIOR AND COMMITMENT:

Behavior and commitments of sales man towards the dry outlets should be improved.

CONCLUSION

It was a pleasant experience to have a summer project in a big

company like BSNL. It has given me an opportunity to know all
dimensions of the market and how to tackle problems of it .I have
learned various functions carried out at all the level of organization
especially of middle level and lower level. After a rigorous period of
my project I come to know that how practical knowledge is different
from the theoretical concepts.

I was supposed to do project in Delhi where BSNL is playing major

role in the field of telecommunication having a market share of
approximately 73% .Other players are Airtel Reliance and Tata.india
has a large market size and it is increasing day by day.

From the survey and analysis of data it can be concluded that still
there is a big opportunity to convert small and big clients. But some
how company is lagging behind in the era of cutthroat
competition .company is unable to make good relationship with
corporate clients. Main rival Airtel is trying to capture more market
share with their new ideas and plan. As BSNL is concern the
company should become liberal on his policies. Company should
give the clients more facilities so that they may became new clients
and may continue through it. The company also needs a proper
marketing wing to operate well in this areas and accomplish the
goal ,mission and vision of the company.