Swot analysis of reliance trends

SUBMITTED TO: Associate Professor G.H.S.Prasad

SUBMITTED ON: 6 September 2010
SUBMITTED BY: Anjul Baijal
MFM (IIIRD SEM)

SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage
of planning and helps marketers to focus on key issues. SWOT stands for strengths,
weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.
Opportunities and threats are external factors.

In other words SWOT analysis is a strategic planning method used to evaluate the
Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and unfavourable to achieve
that objective. The technique is credited to Albert Humphery.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model in conjunction with other
tools for audit and analysis, such as PEST analysis and Porter's Five – Forces analysis.
The aim of any SWOT analysis is to identify the key internal and external factors that are
important to achieving the objective. These come from within the company's unique value
chain. SWOT analysis groups key pieces of information into two main categories:

 Internal factors – The strengths and weaknesses internal to the organization.

Strengths: attributes of the person or company that are helpful to achieving the
objective(s).Weaknesses: attributes of the person or company that are harmful to achieving
the objective(s).

 External factors – The opportunities and threats presented by the external

environment to the organization.

Opportunities: external conditions that are helpful to achieving the objective(s).Threats:

external conditions which could do damage to the objective(s).

A strength could be:

 Your specialist marketing expertise.

 A new, innovative product or service.
 Location of your business.
 Quality processes and procedures.
 Any other aspect of your business that adds value to your product or service.

A weakness could be:

 Lack of marketing expertise.

 Undifferentiated products or services (i.e. in relation to your competitors).
 Location of your business.
 Poor quality goods or services.
 Damaged reputation.

An opportunity could be:

 A developing market such as the Internet.

  Mergers, joint ventures or strategic alliances.
 Moving into new market segments that offer improved profits.
 A new international market.
 A market vacated by an ineffective competitor.

A threat could be:

 A new competitor in your home market.

 Price wars with competitors.
 A competitor has a new, innovative product or service.
 Competitors have superior access to channels of distribution.
 Taxation is introduced on your product or service.

COMPANY PROFILE
Reliance Retail Limited (RRL) is a subsidiary of Reliance Industries Limited, based in
Mumbai. RRL was set up in 2006 and marks the foray of the Reliance Group into organized
retail. RRL has been conceptualized to include growth for farmers, vendor partners, small
shopkeepers and consumers. It is based on Reliance’s vertical integration strategy, to
build a value chain starting from farmers to consumers.

VISION

To make RIL one of the most innovative companies in the world and to
achieve breakthrough growth in revenues and profits by creating and
implementing sustainable solutions.

MISSION

To be the most admired and successful organised retail company in India that
materially enhances the quality of life of every Indian.

SPIRIT OF RELIANCE
Growth has no limit at Reliance, only when you dream it you can do it. Meeting deadlines is
not enough but beating deadlines is the expectation.
We bet on people

CORPORATE STRUCTURE

Reliance Retail Limited is the vision of Mukesh Dhirubhai Ambani who is also the Chairman
& Managing Director of RIL. The Executive Directors are Nikhil R. Meswani, Hital R.
Meswani, Hardev Singh Kohli, PMS Prasad and R. Ravimohan. Ramniklal H. Ambani is the
non-executive and non-independent director.

Key Executives for RRL are:

Raghu Pillai – Director, Chief Executive and President of Retail Operations & Strategy
Ajay Baijal – President of Corporate Planning
Manu Kapoor – Senior Vice-President of Corporate Affairs Division
Bijay Sahoo – Head of Human Resources

Reliance Retail Ltd. has a number of company-owned outlets along with a franchisee format.
Its various divisions are:

a) Reliance Mart 

It is designed to be an all under one roof supermarket that again caters to household needs.

b) Reliance Fresh

The stores would typically be of an area of around 3,000-5,000 sq ft. Each store is to provide
fresh fruits, vegetables and also products of Reliance Select and other related groceries

c) Reliance Super 

It will be a smaller version of the hypermarket format. It is to offer over 10,000 products in
various categories like grocery, home care, stationery, pharmaceutical products, apparels &
accessories, FMCG, consumer durables & IT, automotive accessories and lifestyle products.
Reliance Super stores are to be large supermarkets with an area of 4,000 to 10,000 sq. ft.

d) Reliance Digital 
It is a consumer electronics concept mega store. It is designed to be a one stop shop for all
technology solutions in the field of consumer electronics, home appliances, information
technology and telecommunications. The stores are to cover an area of more than 15,000
sq. ft. and offer a variety of over 4,000 products spread across 150 brands along with
solution bundles to meet diverse customer needs.

e) Reliance Trends 

It is a specialty apparel store that will sell men, women and children’s garments. The store
will carry the best of national and international brands like John Players, Peter England,
Indigo Nation, Wrangler, Reebok, and Lee, apart from in-house brands. The store layout is to
compliment the evolving taste and preference of fashion savvy consumers, giving them an
opportunity to view /shop with ease, along with well trained customer service associates, to
compliment the entire shopping process. By 2010, Reliance has planned to open 100 more
stores across the country with focus on major cities. The company is targeting a turnover of
`20,000 crore ($5 billion) from this format. This is a part of the US$ 25 billion (`100,000
crore) overall sales from retail business.

f) Reliance Wellness

It is a chain of specialty wellness stores that would offer pre-emptive, curative as well as
health and beauty solutions. The store is to add value to people’s lives, by providing
products and services that will proactively work to enrich people’s body, mind and spirit.
They will also house alternate medicine, health books & music. The stores are to showcase
Wellness Events, Seminars, Workshops and Advisory camps on contemporary wellness
issues like diabetes, hypertension, fitness, diet and nutrition, weight management and skin
care.

g) Reliance Footprints 

It is a specialty footwear store that would offer over 25,000 pairs of formal, casual, ethnic,
party wear and sports wear in men, women and children footwear. It shall offer brands from
Europe and America like Josef Siebel, Rockport, Hush Puppies, Lee Cooper Clarks, Levis,
Nike, Adidas, Piccadilly, Dr. Scholl’s and more. For kids, Crocs and Disney will be showcased.
The store plans a pan-India presence by opening over 15 more specialty stores.
h) Reliance Jewels

It is a stand-alone fine jewellery format. It is to be a one stop shopping destination for fine
jewellery.

i) Reliance Timeout 

With over 56,000 products Reliance Timeout will offer customer an extensive range of
merchandise in books, music, stationery, toys and gifts. It is to a format based on the
ideology to provide a place where a consumer can unwind and relax, browse and buy a
book, sample some music, choose a gift, and buy a toy or some exclusive stationery for
themselves. Reliance Timeout will offer a comprehensive range of products in these
categories along with an attempt to create a fascinating customer experience with a warm,
lively ambience.

COMPANY PROFILE OF RELIANCE TRENDS.

Company : Reliance Retail

Subsidiary Company : Reliance Trends

Founded : 2007

Headquarters : Bangalore

Chairman and Managing Director : Mr Mukesh Ambani

The Apparel, Luggage and Accessories division of reliance retail has announced the launch
of their first Apparel speciality store “Reliance Trends”. Reliance Trends stores has been
designed and furnished by the best of the international design agencies to offer a high style
and lavish experience to the Indian consumer. The store layout compliments the evolving
tastes and preference of fashion savvy consumers, giving them an opportunity to view/shop
with ease, along with an army of well trained customer service associates to compliment the
entire shopping process.
Reliance trends, the apparel division of Reliance Retail is well on track to democratise
fashion and make it attainable to the masses. This is being possible by the extraordinary
design pool of Indian and International designers, integrating the international design trends
and preferences of the Indian consumers.

The company is offering solutions to common maintenance problems through its state of
the art innovative products like Ever White Shirts, Anti Stain Trousers, Wrinkle free range
of garments, aromatic clothes for infants and quick-dry sportswear that ensures optimum
moisture management. To deliver the customer the best value for their money, only those
products that demonstrate an exemplary safety and quality meeting both implicit and
explicit needs of the consumer are approved for purchase.

Product quality has been ingrained into the DNA of Reliance Trends and is integral to the
mission of “Grahak Devo Bhava”. The quality system are designed, implemented and
monitored as per international standards by a highly competent team of professionals.

For the first time in organised retail, Reliance Trends is introducing Made to Measure
tailoring service offering customised fits to all the customers buying fabric from the store at
prices compatible to neighbourhood tailors.

Reliance Trends is offering a homogenous mix of private label of brands across men’s,
women’s and children’s category to fulfil every customer’s requirements.

The Network range of garments comprises of formal office wear and collection for men and
women, while the Netplay range, showcases a smart casual collection for the evolving
workplace. The DNMX range has been developed with a clear focus on the youth of India,
offering them exclusively crafted fashion garments like Denims, T-shirts etc.

Sparsh range of Indian wear for women, offers the finest collection of salwar kurtas,
churidars and a fast evolving Mix and Match range of garments. An exclusive label Panda
has been developed for infants and toddlers, while the FRENDZ range of garments would
compliment the wardrobes of the growing generation of boys and girls.
Apart from these private labels, the store is also offering some of the most renowned
brands in the country like Levis Strauss Signature, Peter England, Indigo Nation, American
Tourister, John Players etc. Some designer labels either directly or through their sub brands
most of these exclusively for Reliance Trends.

Continuing the tradition of reaching out to the middle class of the country, the current
offering from Reliance Trends is easily affordable to the Indian consumer. The specific
private label called First Class, is designed to cater to the range of garments cutting across
men’s, women’s and children’s wear to deliver extreme value to the Indian consumers.

Taking forward the voice of Shri Mukesh Ambani, Chairman & Managing Director, Reliance
Industries Ltd, Reliance Trends delivers unmatched affordability, quality and chain of
products and services to the consumer. Reliance Retail continues to fine tune its offering
and listening to its customers and learning from them. This as the Chairman envisions, will
be the beginning of transformation of Indian Retail with benefits for the consumer.

PRODUCT PROFILE OF RELIANCE TRENDS

Women’s Wear

Indian wear Formal wear

Semi Formal wear Casual wear

Dress material Lingerie

Men’s wear

Sports wear Formal wear

Semi Formal wear Casual wear

Men’s wear fabric Under garments

Kid’s wear
 Infants Toddlers

Girls 2-8 years Boys 2-8 years

Girls 8-14 years Boys 8-14 years

Accessories

Handbags Socks

Handkerchiefs Sports Goods

PRIVATE LABELS BY RELIANCE TRENDS

NATIONAL AND INTERNATIONAL BRANDS AT RELIANCE TRENDS.

SWOT ANALYSIS OF RELIANCE TRENDS

STRENGTHS

 Reliance Trends is financially sound. Being an subsidiary of a gigantic

industry group RIL it has sufficient resources in terms of time and
money to take it’s time to break even in the highly competitive retail
sector

 Stores are located at location that ensures good footfall. Reliance

trends store occupy competitive advantage in terms of the retail
locations of the store.

 Low prices of the merchandise attract middle income group

customers. The merchandise is designed uniquely to fill the market
gap in middle to lower middle income group level.

 Merchandise is fashion oriented.

  Merchandise is targeted towards the fastest growing demographic
segment of age i.e. 18-25 years of age; it contributes to a very large
market size.

 The store signed in youth icons like Katrina Kaif and Ranbir Kapoor to
promote the store.

 Though the loyal customer base is small but customers are highly
satisfied with the store.

 Reliance Trends enjoys the good will and reputation earned by the
Reliance Group over the years.

WEAKNESSES

 Lack of differentiation in the product line. Since Reliance Trends is a

late entrant in the Indian retail sector; it lacks the differentiation
factor which it can use to attract customers to the store.

 Acute lack of awareness about the store, even after heavy

advertisements the store is unable to build a strong customer pull
towards itself.

 Visual merchandising of the store demands a great amount effort.

The product are displayed in a very geometrical pattern creating a
huge but brush effect and sending across a message that the
merchandise is comparable to FMCG products.
  Lack of major national and international brands in the store also a
major hindrance to footfall in the store.

 The quality of the merchandise is low especially the private labels.

This acts like a major hindrance to the customer pull towards the
store.

 The sales consultant on the floor should be more trained to promote

the store aggressively.

OPPORTUNITIES

 Value retail is associated with Reliance Trends offers fresh stock at

such low price and thus trying to differentiate from other
competitors.

 Customers who demand fashion merchandise which is a bit low on

quality but available at low price patronize the store.

 It can target tier II and tier III cities of the country and can adopt a
market penetration strategy.

 The store offers in-house labels and thus has freshness associated
with it.

 It can effectively use other subsidiaries of Reliance Retail to promote

its brand

THREATS

 Negligible awareness about the presence of store in cities where the

store is not present.
  The company is started in a time when the retail space is already
occupied with many competitors. Reliance trends gives a “me – too”
image to the company.

 It has positioned itself for middle to lower middle income group

customers but this income group might not generate revenues similar
or equivalent to sustain the huge market expansion plans of the firm.

 Reliance trends faces cut throat competition from stores like

“lifestyle, Pantaloons, and Shoppers Stop” respectively. These are well
established in the market and grabbed a good market share.

CONCLUSION
SWOT analysis has helped me understand the customers who patronize Reliance trends
demand fashionable merchandise at low price and are less concerned about the quality of
the products. Reliance Trends has up come to fill the market gap in the middle income and
lower middle segments of the market. One of the major hindrances for growth is bringing
target customer into store. A lot of awareness programs may help in getting better footfalls.

Consumers have high expectations from Reliance Trends as it comes from a well known
industrial house of the country. It has to carve out a niche in its retail foray.