PROJECT REPORT

ON

“ANALYSIS OF BRAND PROMOTIONS AND

SUCCESSFUL MARKETING STRATEGIES AT
RELIANCE DIGITAL”

A Project Report Submitted in the Partial Fulfillment of the Requirements for

the Award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION
(BANKING & INSURANCE)
(2016-2019)
Under the guidance of
Ms. Priyaneet Kaur

Submitted By
Gurjeet Kaur
Enroll no.: 35390201816
(2016-2019)

SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT

AND INFORMATION TECHNOLOGY
(Affiliated to GGSIPU)
 DECLARATION

I, Gurjeet Kaur, Enroll No.: 35390201816 hereby declare that the project
work entitled “Analysis of Brand Promotions and Successful Marketing
Strategies at Reliance Digital”. submitted to Guru Gobind Singh
Indraprastha University is a record of an original work done by me
under the guidance of Ms. Priyaneet Kaur faculty member of Sri Guru
Tegh Bahadhur Institute of Management And Information Technology .

……….………………………

(Signature of the Scholar)

Place: Delhi Name of scholar: Gurjeet Kaur
Date: Enrolment number:35390201816
 CERTIFICATE

This is to certify that I, Gurjeet Kaur, Enroll number 35390201816 Bachelor

of Business Administration (Banking & Insurance) student of Sri Guru Tegh
Bahadhur Institute of Management & Information Technology has done
project work on “Analysis of Brand Promotions and Successful
Marketing Strategies at Reliance Digital” under the guidance of Ms.
Priyaneet kaur.

……………………………..
Signature of HOD
Mrs. BIPASHA CHAUDHARY

………………………….
Signature of guide
Ms. PRIYANEET KAUR

………………………….
Signature of the Scholar
Place: Delhi Name of scholar- Gurjeet kaur
Date: Enroll. number:35390201816

ii
 ACKNOWLEDGEMENT

With Profound sense of gratitude & regard, I express my sincere thanks to

my guide &mentor Ms. Priyaneet Kaur, for his valuable guidance & the
confidence he installed in me, that helped me in successful completion of
this Project report. Without his help, this project would have been a distant
affair. His thorough understanding of the subject & the professional
guidance is indeed of immense help to me. I am also thankful to the others
members of the company who cooperated with me & gave me their valuable
time.

………….……………………….
(Signature of the Scholar)
Place: Delhi Name of scholar: Gurjeet Kaur
Date: Enrolment number:35390201816

iii
 PREFACE

The present study of the research entitled “Analysis of Brand Promotions

and Successful Marketing Strategies at Reliance Digital”. This study is

intended to help Reliance Digital decide upon the steps to be taken care for

customer satisfaction so that the growth of the company keeps on

improving. Primary data have been used for analysis. However, secondary

source have yielded preliminary information. Research conducted was

descriptive in nature. Descriptive research helped me to develop the concept

to clearly establish priorities, to divulge adequate information which helps

me indecision making and thus essential for making the study a success. A

structured questionnaire was used to obtain required information and to

assess the customer satisfaction level and to find the ways through which

the company can come up to the expectation of customer so that the

optimum satisfaction level can be achieved. I have used random sampling

for my survey. Care was taken that the respondents were as diversified as

possible. A sample size of 50 respondents was taken from NCR Delhi. I

collected data and analyzed them. I have critically analyzed each and every

question in the questionnaire and then given the managerial implication.

This analyzed data was later converted into bar diagrams for convenience.

This also made it easy to draw a conclusion based research and provide a

presentable format for the report. Later on the information were compiled to

iv
form a presentable report. Along with this I also learnt the store operation of

Reliance Digital. A better strategy to satisfy customer is only the way to

gain customer attention and to penetrate more in own catchment area.

Strategy must be in all area like Promotional offer/Scheme, Product Pricing,

Employee behavior, Billing Process, Product Assortment, Product quality in

terms of RATER. It is found in the research that customers are price

sensitive hence Reliance Digital should give those offers which can

facilitate more money saving as the customers are price sensitive. Once the

conservative thought would abolish, definitely the retail will grow with leap

and bound, ultimately it would benefit Reliance Digital.

v
 TABLE OF CONTENTS

Chapterization Topic Name Page

No.
CHAPTER 1: INTRODUCTION
1. About the Company 1-11
1.1 Formation/ Company Profile 11-15
1.1.1Vision 15
1.1.2 Mission 16
1.1.3 Objectives 17
1.1.4 Functions/ History 17-25
1.1.5 Product & services 26-29
1.1.6 Organizational Structure 30-34
1.1.7 SWOT Analysis 34=35
1.2. Environmental Scanning 35-36
1.2.1 Political environment 37
1.2.2 Economic environment 37
1.2.3 Socio-Cultural Environment 38-41
1.2.4 Environmental issues 41
1.2.5 Legal environment 42

CHAPTER 2: RESEARCH METHODOLOGY

2.1. Statement of the Problem 43
2.2. Objectives & Scope of Study 43
2.3. Managerial usefulness of study 44
2.4. Type of Research and research Design 45
2.5. Data Collection Methods 45
2.6. Limitations of Study 46
CHAPTER 3: CONCEPTUAL DISCUSSION
3.1. Review of Literature 47-48
3.2. Current Issues
48-52
3.3. History and Development of Company and
Industry 52-69
3.4. New Development of Company and
69-72
Industry
CHAPTER 4: DATA ANALYSIS 73-82
4.1. Methods and techniques of data analysis
4.2. Primary Data Analysis
4.3. Secondary Data Analysis
Chapter 5: FINDINGS AND RECOMMENDATIONS
5.1 Findings 83
5.2 Recommendations
vi
 84
CHAPTER 6: CONCLUSIONS AND SUGGESTIONS
6.1 Conclusion 85
6.2 Suggestions
86
APPENDICES 87-88
Questionnaire

BIBLIOGRAPHY/ REFERENCES 89

vii
 CHAPTER -1
INTRODUCTION
Introduction of whole retail industry

Retailing in India is one of the pillars of its economy and accounts for
about 15% of its GDP. The Indian retail market is estimated to be US$
450 billion and one of the top five retail markets in the world by
economic value. India is one of the fastest growing retail markets in the
world, with 1.2 billion people.

India's retailing industry is essentially owner manned small shops. In

2016, larger format convenience stores and supermarkets accounted for
about 4 percent of the industry, and these were present only in large urban
centers. India's retail and logistics industry employs about 40 million
Indians (3.3% of Indian population).

Until 2017, Indian central government denied foreign direct investment

(FDI) in multi-brand retail, forbidding foreign groups from any
ownership in supermarkets, convenience stores or any retail outlets. Even
single-brand retail was limited to 51% ownership and a bureaucratic
process.

In November 2017, India's central government announced retail reforms

for both multi-brand stores and single-brand stores. These market reforms
paved the way for retail innovation and competition with multi-brand
retailers such as Walmart, Carrefour and Tesco, as well single brand
majors such as IKEA, Nike, and Apple The announcement sparked
intense activism, both in opposition and in support of the reforms. In

1
December 2017, under pressure from the opposition, Indian government
placed the retail reforms on hold till it reaches a consensus.

In January 2018, India approved reforms for single-brand stores

welcoming anyone in the world to innovate in Indian retail market with
100% ownership. Indian government continues the hold on retail reforms
for multi-brand stores.

Organized retailing, in India, refers to trading activities undertaken by

licensed retailers, that is, those who are registered for sales tax, income
tax, etc. These include the publiclytraded supermarkets, corporate-backed
hypermarkets and retail chains, and also the privately owned large retail
businesses.

Unorganized retailing, on the other hand, refers to the traditional formats

of low-cost retailing, for example, the local mom and pop store, owner
manned general stores, paan/beedi shops, convenience stores, hand cart
and pavement vendors, etc. Organized retailing was absent in most rural
and small towns of India in 2016. Supermarkets and similar organized
retail accounted for just 4% of the market.

Industry Profile Retail Industry in India Retail industry as of June 2013

Introduction The Indian retail industry has been thrown open to foreign
majors and is packed with players who strive to offer great products and
value-for-money to Indian consumers. The country holds vast promise for
retailers with its burgeoning spending power and rising middle class. The
US$ 500 billion market, growing at an annual rate of about 20 per cent, is
largely dominated by small shops and stores as of now. The organised
segment is in its nascent stage and has huge potential to harness in the
sub-continent. Foreign giants like Wal-mart and IKEA have recently
received the Government‟s nod to enter the Indian market, after making

2
all the necessary compliances. Market Size India‟s retail market is
majorly dominated by the unorganised sector. Organised segment
accounts for 8 per cent of the total retail landscape, according to a study
by Booz & Co and RAI. The Indian retail industry has expanded by 10.6
per cent between 2016 and 2018 and is expected to increase to US$ 750-
850 billion by 2015, according to another report by Deloitte. Food and
Grocery is the largest category within the retail sector with 60 per cent
share followed by Apparel and Mobile segment.

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 US$ 66
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, retail, infotel and special economic
zones. Reliance enjoys global leadership in its businesses, being the
largest polyester yarn and fibre producer in the world and among the top
five to ten producers in the world in major petrochemical products. Major
Group Companies are Reliance Industries Limited, including its
subsidiaries and Reliance Industrial Infrastructure Limited.

3
Background of Indian retailing:

Most Indian shopping takes place in open markets or millions of small,

independent grocery and retail shops. Shoppers typically stand outside the
retail shop, ask for what they want, and cannot pick or examine a product
from the shelf. Access to the shelf or product storage area is limited.
Once the shopper requests the food staple or household product they are
looking for, the shopkeeper goes to the container or shelf or to the back of
the store, brings it out and offers it for sale to the shopper. Often the
shopkeeper may substitute the product, claiming that it is similar or
equivalent to the product the consumer is asking for. The product
typically has no price label in these small retail shops; although some
products do have a manufactured suggested retail price (MSRP) pre-
printed on the packaging. The shopkeeper prices the food staple and
household products arbitrarily, and two consumers may pay different
prices for the same product on the same day. Price is sometimes
negotiated between the shopper and shopkeeper. The shoppers do not
have time to examine the product label, and do not have a choice to make
an informed decision between competitive products.

India's retail and logistics industry, organized and unorganized in

combination, employs about 40 million Indians (3.3% of Indian
population). The typical Indian retail shops are very small. Over 14
million outlets operate in the country and only 4% of them being larger
than 500 sq ft (46 m2 ) in size. India has about 11 shop outlets for every
1000 people. Vast majority of the unorganized retail shops in India
employ family members, do not have the scale to procure or transport
products at high volume wholesale level, have limited to no quality
control or fake-versusauthentic product screening technology and have no
training on safe and hygienic storage, packaging or logistics. The

4
unorganized retail shops source their products from a chain of middlemen
who mark up the product as it moves from farmer or producer to the
consumer. The unorganized retail shops typically offer no after-sales
support or service. Finally, most transactions at unorganized retail shops
are done with cash, with all sales being final.

Until the 1990s, regulations prevented innovation and entrepreneurship in

Indian retailing. Some retails faced complying with over thirty
regulations such as "signboard licences" and "antihoarding measures"
before they could open doors. There are taxes for moving goods to states,
from states, and even within states in some cases. Farmers and producers
had to go through middlemen monopolies. The logistics and
infrastructure was very poor, with losses exceeding 30 percent.

Through the 1990s, India introduced widespread free market reforms,

including some related to retail. Between 2000 to 2016, consumers in
select Indian cities have gradually begun to experience the quality,
choice, convenience and benefits of organized retail industry.

Growth of Indian retailing:

Growth over 1997-2016 India in 1997 allowed foreign direct investment

(FDI) in cash and carry wholesale. Then, it required government
approval. The approval requirement was relaxed, and automatic
permission was granted in 2006. Between 2000 to 2016, Indian retail
attracted about $1.8 billion in foreign direct investment, representing a
very small 1.5% of total investment flow into India.

Single brand retailing attracted 94 proposals between 2006 and 2016, of

which 57 were approved and implemented. For a country of 1.2 billion
people, this is a very small number. Some claim one of the primary
restraints inhibiting better participation was that India required single
5
brand retailers to limit their ownership in Indian outlets to 51%. China in
contrast allows 100% ownership by foreign companies in both single
brand and multi-brand retail presence.

Indian retail has experienced limited growth, and its spoilage of food
harvest is amongst the highest in the world, because of very limited
integrated cold-chain and other infrastructure. India has only 5386 stand-
alone cold storages, having a total capacity of 23.6 million metric tons.
However, 80 percent of this storage is used only for potatoes. The
remaining infrastructure capacity is less than 1% of the annual farm
output of India, and grossly inadequate during peak harvest seasons. This
leads to about 30% losses in certain perishable agricultural output in
India, on average, every year.

Indian laws already allow foreign direct investment in cold-chain

infrastructure to the extent of 100 percent. There has been no interest in
foreign direct investment in cold storage infrastructure build out. Experts
claim that cold storage infrastructure will become economically viable
only when there is strong and contractually-binding demand from
organized retail. The risk of cold storing perishable food, without an
assured way to move and sell it, puts the economic viability of expensive
cold storage in doubt. In the absence of organized retail competition and
with a ban on foreign direct investment in multi-brand retailers, foreign
direct investments are unlikely to begin in cold storage and farm logistics
infrastructure.

Until 2016, intermediaries and middlemen in India have dominated the

value chain. Due to a number of intermediaries involved in the traditional
Indian retail chain, norms are flouted and pricing lacks transparency.
Small Indian farmers realize only 1/3rd of the total price paid by the final

6
Indian consumer, as against 2/3rd by farmers in nations with a higher
share of organized retail. The 60%+ margins for middlemen and
traditional retail shops have limited growth and prevented innovation in
Indian retail industry.

Growth after 2017

Before 2017, India had prevented innovation and organized competition

in its consumer retail industry. Several studies claim that the lack of
infrastructure and competitive retail industry is a key cause of India's
persistently high inflation. Furthermore, because of unorganized retail, in
a nation where malnutrition remains a serious problem, food waste is rife.
Well over 30% of food staples and perishable goods produced in India
spoil because poor infrastructure and small retail outlets prevent hygienic
storage and movement of the goods from the farmer to the consumer.

One report estimates the 2017 Indian retail market as generating sales of
about $470 billion a year, of which a miniscule $27 billion comes from
organized retail such as supermarkets, chain stores with centralized
operations and shops in malls. The opening of retail industry to free
market competition, some claim will enable rapid growth in retail sector
of Indian economy. Others believe the growth of Indian retail industry
will take time, with organized retail possibly needing a decade to grow to
a 25% share. A 25% market share, given the expected growth of Indian
retail industry through 2021, is estimated to be over $250 billion a year: a
revenue equal to the 2015 revenue share from Japan for the world's 250
largest retailers.

The Economist forecasts that Indian retail will nearly double in economic
value, expanding by about $400 billion by 2020. The projected increase
alone is equivalent to the current retail market size of France.

7
The Indian Retail Market:

Indian market has high complexities in terms of a wide geographic spread

and distinct consumer preferences varying by each r egion necessitating a
need for localization even within the geographic zones. India has hig hest
number of outlets per person (7 per thous and) Indian retail space per
capita at 2 sq ft (0.19 m2)/ person is lowest in the world Indian re tail
density of 6 percent is highest in the world. 1 .8 million households in
India have an annual income of over ` 45 lakh (US$85,500).

Delving further into consumer buying habits, purchase decisions can be

separated into two categories: status-oriented an d indulgence-oriented.
CTVs/LCDs, refrigerators, washing machines, dishwashers, microw ave
ovens and DVD players fall in the status category. Indulgence-oriented
products in clude plasma TVs, state-of-the-art home theatr e systems,
iPods, high-end digital cameras, camc orders, and gaming consoles.
Consumers in the status category buy because they need to maintain a
position in their social group. Indulgence -oriented buying happens with
those who want to enjoy life better with products that meet their
requirements. When it comes to the festival shopping season, it is
primarily the status-orien ted segment that contributes largely to the
retailer’s cash register.

While India presents a large market opportunity given the number and
increasing purchasing power of consumers, there are significant
challenges as well given that over 90% of trade is conducted through
independent local stores. Challenges include: Geograp hically dispersed
population, small ticket sizes, complex distribution network, and little use
of IT systems, limitations of mass media and ex istence of counterfeit
goods.

8
Major Indian Retailers:

REI AGRO LTD Retail: 6TEN and 6TEN kirana stores

Future Groups-Formats: Big Bazaar, Food Bazaar, Pantaloons,

Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.

Raymond Ltd.: Textiles, The Raymond Shop, Park Avenue, Park

Avenue Woman, Parx, Colourplus, Neck Ties & More, Shirts &
More etc.

Fabindia: Textiles, Home furnishings, handloom apparel, jewellery

RP-Sanjiv Goenka Group Retail-Formats: Spencer’s Hyper,

Spencer's Daily, Music World, Au Bon Pain (Internaional bakery
cafeteria), Beverly Hills Polo Club

The Tata Group-Formats: Westside, Star India Bazaar,

Steeljunction, Landmark, Titan Industries with World of Titans
showrooms, Tanishq outlets, Croma.

Reliance Retail-Formats: Reliance MART, Reliance SUPER,

Reliance FRESH, Reliance Footprint, Reliance Living, Reliance
Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone,
iStore

Reliance ADAG Retail-Format: Reliance World

K Raheja Corp Group-Formats: Shoppers Stop, Crossword,

Hyper City, Inorbit Mall Nilgiri’s-Formats: Nilgiris’ supermarket
chain

Marks & Spencer: Clothing, lifestyle products, etc.

9
 Lifestyle International-Lifestyle, Home Centre, Max, Fun City
and International Franchise brand stores.

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Next retail India Ltd (Consumer Electronics)(www.next.co.in)

Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service

Centre, Viveks Safe Deposit Lockers

PGC Retail -T-Mart India [1], Switcher, Respect India, Grand

India Bazaar,etc.,

Subhiksha-Formats: Subhiksha supermarket pharmacy and

telecom discount chain. Trinethra- Formats: Fabmall supermarket
chain and Fabcity hypermarket chain

Vishal Retail Group-Formats: Vishal Mega Mart BPCL-

Formats: In & Out

German Metro Cash & Carry

Shoprite Holdings-Formats: Shoprite Hyper Paritala stores bazar:

honey shine stores

Aditya Birla Group - "More" Outlets Kapas- Cotton garment

outlets

Nmart Retails with 71 operating Stores till now and total 153
Stores in India and 1 to open in Dubai Shortly. (Expected to be 150
by the end of Aug-2018) .

10
Founder of Reliance Group

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, retail, infotel and special
economic zones.

Reliance enjoys global leadership in its businesses, being the largest

polyester yarn and fibre producer in the world and among the top five to
ten producers in the world in major petrochemical products.

Major Group Companies are Reliance Industries Limited, including its

subsidiaries and Reliance Industrial Infrastructure Limited.

1.1 Formation/ Company Profile

Reliance Digital is a Consumer Electronics, Durables, IT & Telecom

retail arm of Reliance Retail Group with more than 1300+ stores across
India. Reliance Digital seeks to fulfill the dream of every Indian, be it
through its nationwide network of conveniently located stores or through
its presence on the web, by providing a delightful shopping experience of
products & solutions and helping them bring home the latest & best in
technology from the widest selection at the lowest assured price with
complete peace of mind through lifelong support. Products purchased
from Reliance Digital are backed by Reliance ResQ, a ‘one-stop’ service

11
centre that takes care of all your pre & post purchase service solutions
regardless of the brand purchased.

Reliance Retail has the distinction of operating the largest consumer

electronics store chain in India through a network of over 6,500 Reliance
Digital and jio stores.

Reliance Digital offers over 200 national and international brands

offering a widest assortment of products spanning across Audio & Video
products, Digital Cameras, Durables like Air Conditioners, Refrigerators,
Washing Machines, Microwave Ovens, Water Purifiers, Kitchen and
Home Appliances, Gaming Consoles & Games, Computers, Laptops,
Tablets & Peripherals, Mobile and Fixed line instruments as well as a
wide range of accessories and new-age gadgets across all major product
categories. Reliance Digital offers its customers a delightful shopping
experience and help them in bringing home the latest & best of
technology at unbeatable price.

Reliance Retail operates ResQ, the service arm of Digital. It is a full-

fledged service organisation and is India’s first multi-product, multi-
brand and multi-location service network that provides solutions
encompassing end-to-end product life cycle requirements for the entire
range of Consumer Durables and Information Technology products and
other value-added services.

Reliance Retail has built the largest distribution reach for devices in
India. The infrastructure encompassing on-boarding of trained sales
specialists, integrated supply chain and service centres have being made
fully operational as part of building 4G ecosystem in the country.

12
Reliance Retail has developed a strong portfolio of products offered
under its own label Reconnect. The Reconnect products are differentiated
by cutting edge innovation, superior quality and offers great value.

Reliance Retail offers a wide range of 4G LTE smartphones and 4K TVs

under its own brand ‘LYF’. The brand built on the premise of unmatched
user experience offers high performance handsets and televisions that
deliver a true 4G and true 4K experience comparable to the best in the
world. LYF range of smartphones with superior features like Voice over
LTE (VoLTE), Voice over Wi-Fi (VoWi-FI), HD Voice and HD quality
video calling enables users to experience a new digital life.

Jio Stores caters to the rapidly growing market for mobility and
communication products offering a wide range of mobile phones, tablets
and accessories. Within a short span of time Reliance Jio Stores has
grown to become India’s largest retail chain with presence in over 5,200
cities. The chain is increasingly becoming a distribution platform for a
large number of national and international brands as it offers widest
distribution reach in India.

About Reliance
Retail Limited :
Reliance Retail
Limited is an
organized retail
arm of the
Reliance
Industries Limited.
Reliance industry
is the largest

13
conglomerate in India. It has an annual turnover of US$35.9 Billion. It is
also listed on 206th position in the Fortune Global 500 companies.

Reliance Retail is actually the retail group of Reliance Industries Limited.

It has a number of brands like Reliance Time Out, Reliance Digital,
Reliance Wellness, Reliance Autozone, Reliance Super, Reliance Mart,
Reliance iStore, Reliance fresh, Reliance footprint, Reliance
Jewels,Reliance trends, and Reliance living.Reliance Group was
established in 1970's. The Reliance Retail was found in the year 2006 as
an operating subsidiary. It has its head office in Mumbai, India.

Reliance is gearing up to revolutionize the retailing industry in India.

Towards this end, Reliance is aggressively working on introducing a pan-
India network of retail outlets in multiple formats.

A world class shopping environment, state of art technology, a seamless

supply chain infrastructure, a host of unique value-added services and
above all, unmatched customer experience, is what this initiative is all
about.The retail initiative of Reliance will be without a parallel in size
and spread and make India proud. Ensuring better returns to Indian
farmers and manufacturers and greater value for the Indian consumer,
both in quality and quantity, will be an integral feature of this project. By
creating value at all levels, we will actively endeavor to contribute to
India's growth.The project will boast of a seamless supply chain
infrastructure, unprecedented even by world standards. Through multiple
formats and a wide range of categories, Reliance is aiming to touch
almost every Indian customer and supplier.

Reliance Digital is a Consumer Electronics, Durables, IT & Telecom

retail arm of Reliance Retail Group, a subsidiary of Reliance Industries
Limited hosts over 150 national and international brands of electronic

14
products. Reliance Digital Stores offer more than 4000 types of electronic
products.

After a successful launch of Reliance Fresh stores across several towns

and cities in India, Reliance Retail Limited unveiled ‘Reliance Digital’ in
the year 2007, its pilot consumer electronics concept mega store. The new
destination for the latest in technology and entertainment products &
services, and currently 58 Reliance Digital stores are operating in India.
Website: http://www.reliancedigital.in

Year Founded: 2007

Company Type: Public Company

Size: 10,001+ employees

Nature of the business carried:

Reliance Digital Store is a one stop shop for different electronic needs of
all customers. May it be household appliances, computers, laptops, games
or telecom products; customers can find every gadget, for every budget at
Reliance Digital. It has over 4000 products at reasonable prices for its
valued customers.
Vision, Purpose, Values and Promises

1.1.1 Vision

With a vision to generate inclusive growth and prosperity for farmers,

vendor partners, small shopkeepers and consumers, Reliance Retail
Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Groups
foray into organized retail.

Reliance Digital seeks to fulfill the dream of every Indian, be it through

its nationwide network of conveniently located stores or through its
presence on the web, by providing a delightful shopping experience of
15
products & solutions and helping them bring home the latest & best in
technology from the widest selection at the lowest assured price with
complete peace of mind through lifelong support.

Or more simply

“We bring Technology to life for you”

1.1.2 Mission

Since its inception in 2018, Reliance Retail Limited (RRL) has grown
into an organisation that caters to millions of customers, thousands of
farmers and vendors. Based on its core growth strategy of backward
integration, RRL has made rapid progress towards building an entire
value chain starting from the farmers to the end consumers.

Purpose
Growth is Life
“Bettering the lives of Indian everyday”

Values
· We believe in people
· We believe in and follow the customer
· We believe in the good of the community
· We believe in each other
Promises
· A delightful shopping experience
· A delighted community
· A delightful place to work

1.1.3 Objectives

16
  To study internet advertisement strategies
 To study online advertisement strategies with respect to Reliance
Digital
 To study perception of customers on internet advertisement
 To study customers awareness and preference for online
purchasing
 To suggest measures for improvement to the company

1.1.4 Functions/ History

Reliance Industries is India's largest private sector company on all major

financial parameters. In 2004 Reliance Industries (RIL) became the first
Indian private sector organisation to be listed in the Fortune Global 500
list. The company operates world-class manufacturing facilities across the
country at Allahabad Barabanki Dahej Hazira Hoshiarpur Jamnagar
Nagothane Nagpur Naroda Patalganga Silvassa and Vadodara. Reliance
Industries' activities span hydrocarbon exploration and production
petroleum refining and marketing petrochemicals retail and
telecommunications. The petrochemicals segment includes production
and marketing operations of petrochemical products. The refining
segment includes production and marketing operations of the petroleum
products. The oil and gas segment includes exploration development and
production of crude oil and natural gas. The other segment of the
company includes textile retail business and special economic zone (SEZ)
development. In the year 1966 the RIL was founded by Shri Dhirubhai
H.Ambani it was started as a small textile manufacturer unit. In May 8
1973 RIL was incorporated and conformed their name as RIL in the year
1985. Over the years the company has transformed their business from
manufacturing of textiles products into a petrochemical major. The
company has set up a texturising / twisting facilities in 1979 RIL has also

17
set up plants for Polyester Staple Fiber (PSF) in 1986 and for Linear
Alkyl Benzene (LAB) & Purified Terephthalic Acid (PTA) in 1988. RIL
has setup a petrochemical facility to produce HDPE and PVC at Hazira
Gujarat in technical collaboration with DuPont and BF Goodich
respectively. The Hazira petrochemical plant was commissioned in 1991-
92.In the year 1995-96 the company entered the telecom industry through
a joint venture with NYNEX USA and promoted Reliance Telecom
Private Limited in India. Reliance became the first corporate in Asia to
issue bonds in the U.S at the year of 1996-97. The company
commissioned an 80000 tonne bottle grade PET chip plant at Hazira
manufacturing complex. Reliance's PET chips has been accepted
internationally due to their high quality during the year 1997-98 and in
the same year Reliance Industries Planned to invest around Rs. 5000
crores (USD 1250 million) in building two world-scale plants at the site
of the Jamnagar refinery in Gujarat. In 1998-99 RIL introduced packaged
LPG in 15 kg cylinders under the brand name Reliance Gas. In 1999-
2000 RIL commissioned the world's largest 1.4 million tonnes per annum
Paraxylene (PX) plant at its new integrated petrochemicals complex at
Jamnagar which was planned at 1997-98. With the commissioning of the
last crystallization train of the Para-xylene (PX) complex at Jamnagar in
June 2017 RIL became the 2nd largest producer of PX globally. In 2000
Reliance commissioned the world's largest grassroots refinery in
Jamnagar in a record 36 months. The Jamnagar refinery processes a wide
variety of crude oils and produces a range of petroleum products for
exports as well as supply in the Indian market. Reliance Petroleum
Limited (RPL) was amalgamated with Reliance Industries Ltd in the year
2002-03.In 2004-05 RIL acquired the polyester major Trevira GmbH
headquartered in Frankfurt Germany which has the capacity of 130000
tonnes per annum of polyester staple fibers polyester filament yarns and

18
polyester chips. In the year 2006 the company set up a new export-
oriented refinery through its subsidiary Reliance Petroleum Limited
(RPL). In 2006 RIL entered the organised retail segment through
Reliance Retail with its first Reliance Fresh store in Hyderabad. In 2017
Reliance Retail crossed $5 billion revenue mark. Reliance Retail has
adopted a multi-prong strategy and operates neighbourhood stores
supermarkets hypermarkets wholesale cash & carry stores specialty stores
and online stores and has democratized access to all types of products and
services across all segments for all Indian consumers. Reliance Retail
operates over 3300 stores pan India with nearly 13 million square feet of
retail space.In the year 2007 Indian Petrochemicals Corporation Limited
(IPCL) merged with the company. Also Reliance Retail entered the
organised retail market in India with the launch of its convenience store
format under the brand name of `Reliance Fresh'. During the year the
company commissioned their largest expansion project. The company
expanded its polypropylene (PP) capacity by 280 KTA at Jamnagar that
increased the combined capacity to 1710 KTA. During the year 2007-08
the company signed an agreement to certain polyester (capacity) assets of
Hualon Malaysia. It took over the majority control of Gulf Africa
Petroleum Corporation (GAPCO) and started shipping products to the
East African markets. Also the company signed MoU with GAIL (India)
Ltd to explore opportunities of setting up petrochemical plants in
feedstock rich countries outside India. In April 2008 the company signed
gas sales and purchase agreement (GSPA) with the customers in power
sector for supply of natural gas to be produced from the KG-D6
block.During the year Reliance Commercial Associates Ltd Reliance
Neutraceuticals Pvt Ltd Reliance Pharmaceuticals (India) Pvt Ltd
Reliance Petroinvestments Ltd Gull Africa Petroleum Corporation
(Mauritius) Gapco Tanzania Ltd Gapoil Tanzania Ltd Gapco Kenya Ltd

19
Gapco Uganda Ltd Gapco Rwanda SARL Gapoil Zanzibar Ltd
Transenergy Kenya Ltd Recron (Malaysia) SDH BHD Peninsula Land
Kenya Ltd Reliance International Exploration and Production INC
Wavely Investments Ltd Reliance Digital Retail Ltd Reliance Lifestyle
Holdings Ltd Reliance Universal Ventures Ltd Reliance Home Store Ltd
Reliance Autozone Ltd Reliance Trade Services Centre Ltd Reliance
Integrated Agri Solutions Ltd Reliance Agri Products Distribution Ltd
Reliance Food Processing Solutions Ltd Reliance Supply Chain Solutions
Ltd Reliance Digital Media Ltd Strategic Manpower Solutions Ltd
Reliance Gems and Jewels Ltd Reliance Leisures Ltd Reliance Loyalty &
Analytics Ltd Reliance Retail Securities and Broking Company Ltd
Delight Proteins Ltd Reliance F&B Services Ltd Reliance Hypermart Ltd
Reliance Financial Distribution and Advisory Services Ltd Reliance
Retail Travel & Forex Services Ltd Reliance Trends Ltd Reliance
Wellness Ltd Reliance Brands Ltd Reliance Footprint Ltd Abcus Retail
Pvt Ltd Bigdeal Retail Pvt Ltd Advantage Retail Pvt Ltd and RIL
(Australia) PTY Ltd became subsidiaries of the company.During the year
2008-09 Reliance People Serve Ltd Reliance Infrastructure Management
Services Ltd Reliance Global Business BV Reliance Gas Corporation Ltd
Reliance Globalenergy Services Ltd Reliance One Enterprises Ltd
Reliance Personal Electronics Ltd Reliance Global Energy Services
(Singapore) Pte Ltd Reliance Polymers (India) Pvt Ltd Reliance
Polyolefins Pvt Ltd Reliance Aromatics and Petrochemicals Pvt Ltd
Reliance Energy and Project Development Pvt Ltd Reliance Chemicals
Pvt Ltd Reliance Universal Enterprises Pvt Ltd International Oil Trading
Ltd Reliance Nutritional Food Processors Pvt Ltd Reliance Review
Cinema Pvt Ltd Reliance Replay Gaming Pvt Ltd RIL USA Inc. Reliance
Commercial Land Infrastructure Pvt Ltd Reliance Corporate IT Park Ltd
Reliance Eminent Trading & Commercial Pvt Ltd Reliance Progressive

20
Traders Pvt Ltd Reliance Prolific Traders Pvt Ltd Reliance Universal
Traders Pvt Ltd Reliance Prolific Commercial Pvt Ltd Reliance Comtrade
Pvt Ltd Reliance Ambit Trade Pvt Ltd Reliance Petro Marketing Pvt Ltd
LPG Infrastructure (India) Pvt Ltd and Reliance Infosolution Pvt Ltd
beaome subsidiaries of the company. Also Abcus Retail Pvt Ltd ceased to
be a subsidiary of the company.During the year Reliance Petroleum Ltd
(RPL) merged with the company with effect from April 1 2008. From
April 2 2015 the company commenced production of hydrocarbons in its
KGD6 block in the Krishna Godavari basin with the production of sweet
crude of 420 API. In November 2015 the company discovered first oil
exploration in the on land exploratory block CB-ONN-2003/1 (CB 10
A&B) awarded under the NELP-V round of exploration bidding. In
December 2015 the company discovered gas in the exploration block
KG-DWN-2003/1 (KG-V-D3) of NELP-V. The deepwater block KG-
DWN-2003/1 is located in the Krishna basin about 45 kilometers off the
coast in the Bay of Bengal. In April 2016 the company commissioned a 1
MW solar Photo Voltaic power plant at Thyagaraj stadium in New Delhi.
The power plant is expected to generate around 1.4 million units of
electricity a year. It would cater to the power requirements of the stadium
and the surplus would be fed to the grid at 11 KV. In addition the
company's subsidiary Reliance Marcellus LLC executed definitive
agreements to enter into a joint venture with United States based Atlas
Energy Inc of Pittsburgh Pennsylvania under which Reliance will acquire
a 40% interest in Atlas' core Marcellus Shale acreage position.In June
2016 the company entered into an agreement to acquire asubstantial stake
in Infotel Broadband Services (P) Ltd which emerged as asuccessful
bidder in all the 22 circles of the auction for Broadband Wireless Access
(BWA) Spectrum conducted by the DOT. The company sees the
broadband opportunity as a new frontier of knowledge economy in which

21
it can take a leadership position and provide India with an opportunity to
bein forefront among the countries providing world-class 4G network and
services.In August 2016 the company through their subsidiary Reliance
Industries Investment and Holding Pvt Ltd acquired the equity shares of
EIH Ltd representing 14.12% from Oberoi Hotels Pvt Ltd and certain
other promoters at a total cost of Rs 1021 crore.In December 2016 the
company entered into a joint venture agreement with Russian
petrochemical company SIBUR for the production of butyl rubber in
India. The joint venture facility will have an initial capacity of 100000
tonnes of butyl rubber at the company's integrated refining cum
petrochemical site in Jamnagar and is expected to be commissioned by
2013.In January 2017 the company's wholly owned subsidiary Reliance
Ventures Ltd entered into an agreement with Infrastructure Leasing and
Financial Services Ltd whereby IL&FS will become a strategic partner
and co-promoter of a project which intends to develop a model economic
township and other infrastructure facilities at Jhajjar in Haryana. In
February 2017 the company entered into a strategic partnership with BP
which comprises BP taking a 30% stake in 23 oil and gas production
sharing contracts that the company operates in India for a consideration
of USD 7.20 billion and the formation of a 50:50 joing venture between
the two companies for the sourcing and marketing of gas in India. The
joint venture will also endeavour to accelerate the creation of
infrastructure for receiving transporting and marketing of natural gas in
India. On 15 June 2017 RIL and BP announced that they are moving
forward to develop the `R-Series' deep water gas fields in Block KGD6
off the east coast of India as first of three that are expected to be
developed in an integrated manner producing from about 3 trillion cubic
feet of discovered gas resources. In March 2017 the company and D E
Shaw Group agreed to establish a joint venture to build a leading

22
financial services business in India. This joint venture will incorporate the
D E Shaw Group's investment and technology expertise with the
company's operational knowledge and extensive presence across India to
offer a comprehensive array of financial services to the Indian
marketplace.In June 10 2017 the company and their associate Reliance
Industrial Infrastructure Ltd entered into an agreement with Bharti
Enterprises for acquiring Bharti's shareholding of 74% in Bharti Axa Life
Insurance Co Ltd and Bharti Axa General Insurance Co Ltd. On
completion of the proposed transaction the company and Reliance
Industrial Infrastructure Ltd would effectively own 57% and 17%
respectively in both insurance companies and would become Axa's joint
ventures partners in India.In September 2017 Reliance Security Solutions
Ltd a subsidiary of the company Siemens Ltd signed an MoU to jointly
develop Homeland Security Solutions for Highways in India. In
November 2017 the company and BP incorporated India Gas Solutions
Pvt Ltd a 50:50 joint venture company which will focus on global
sourcing and marketing of natural gas in India. The joint venture
company will also develop infrastructure to accelerate transportation and
marketing of natural gas within the country. India Gas Solutions Pvt Ltd
will be funded with equal equity from BP and RIL.In November 2017
AXA SA Bharti Reliance Industries Limited (RIL) and its associate
Reliance Industrial Infrastructure Limited (RIIL) announced that they
have mutually agreed to terminate their negotiations on the proposed
acquisition by RIL and RIIL of Bharti's shareholding of 74% in Bharti
AXA Life Insurance Co. Ltd and Bharti AXA General Insurance Co.
Ltd.In February 2018 the company and SIBUR have agreed to form a
joint venture named Reliance Sibur Elastomers Pvt Ltd to produce
100000 tons of butyl rubber per year in Jamnagar India. The joint venture
will be the first manufacturer of butyl rubber in India and the fourth

23
largest supplier of butyl rubber in the world.On 29 May 2014 RIL
announced its entry into the digital space by way of acquisition of control
in Network 18 Media & Investments Limited (NW18) including its
subsidiary TV18 Broadcast. On 9 December 2014 RIL announced the
formation of a joint venture with Shandong Ruyi Science and Technology
Group Co. Ltd China (`Ruyi') (through its wholly owned subsidiary) for
RIL's textiles business which operates under the Vimal brand.RIL's
wholly owned subsidiary Reliance Jio Infocomm announced the
commencement of telecom services with `Jio Welcome Offer' in
September 2016. In a short period of 170 days Jio crossed a milestone of
100 million customers on its all IP wireless broadband network.On 17
November 2016 RIL and GE announced the signing of a global
partnership agreement in the Industrial IOT (IIOT) space to provide
Industrial IOT solutions to customers in oil & gas fertilizer power
healthcare telecom and other industries. In September 2017 RIL won the
bid to acquire the assets of Kemrock Industries & Exports Limited of
Vadodara (Gujarat) as a part of its efforts to enter the composites
business. RIL participated in an on-line e-bidding process held by
Allahabad Bank being leader of the consortium of 11 banks to
sell/dispose off the assets of Kemrock Industries & Exports Limited.

Reliance Digital is a consumer durables and information technology

concept from Reliance Retail. It is a subsidiary of Reliance Retail, which
is a wholly owned subsidiary of Reliance Industries.

Reliance Digital is a consumer electronics company in India. The first

Reliance Digital Store was opened on 24 April 2007 in Delhi. Currently
there are around 2000 Reliance Digital & Reliance Digital Xpress Mini
Stores in around 600 cities in India. The stores are spread across the states
of Maharashtra (Mumbai, Pune), Gujarat (Ahmedabad),  Delhi NCR, 

24
Karnataka (NCR
Delhi, Mangalore, Mysore, Hubli), Kerala(Kochi) , Tamil
Nadu (Chennai, Madurai, Salem, Coimbatore) and Telangana
(Hyderabad). Reliance Digital Stores are bigger in size than the other
format Digital Xpress Mini stores. The company plans to ramp up its
current store count of 1200 stores to 2500 by the end of 2017.

Digital Xpress Mini: Digital Xpress Mini Stores are relatively smaller in
size than Reliance Digital. These stores are about 250 square feet and
mainly sell the company's telecom services, smartphones, tablets and also
accessories of other brands. There are around more than 1700 Digital
Xpress Mini stores as of the Feb 2017.

Reliance ResQ: resQ is the service arm of Reliance Digital / Digital

Xpress and Digital Xpress mini stores, which caters to customers for after
sales service. resQ is India’s first Multi product, Multi brand, Multi-
location service facility which offers service from 10am to 10pm, 365
days a year. The resQ Care Plans offer scheduled preventive maintenance
visits and Standby units in special cases.

iStore: Reliance Digital also operates a chain of Apple

resellers in India under the name iStore. There are about 4 such stores
in India currently.

Reconnect: Reliance Digital launched its private label of products

branded "RECONNECT" in October, 2017, which is said to have been
inspired by former, and fabulous, section co-ordinator Mumbai native -
Steven Jeffrey Maxwell, who devoted years to the technology giant.
Reconnect product range covers over 200 products, from the latest large-
screen LED TVs, Star-rated Air conditioners, Washing Machines,
Smartphones, Tablets to household appliances & personal care products.

25
Major all products comes with a 2-year warranty, while accessories
product warranty vary from 6 months to 1 year.

LYF: Main article: Reliance Digital also carries the LYF brand of 4G

smartphones. These phones were launched in January 2016. So far, five
phones have been launched - Earth 1, Water 1, Water 2, Wind 6 and
Flame 1.

1.1.5 Product & services:

About Us
 Our Business
 Key Facts
 Milestones
 Awards & Recognition
 About RIL
Brands
 Reliance Fresh
 Reliance Smart
 RelianceSMART.in
 Reliance Market
 Reliance Digital
 Jio Store
 Reliance Trends
 Project Eve
 Reliance Footprint
 Reliance Jewels
 AJIO
 Partner Brands

26
Careers
 Apply Now

Investor Relations
 Investor Updates

Reach Us
 Store Locator
Reliance Digital – The Merchandise Mix
Complete range of
· Consumer electronics
· Home appliances
· Kitchen appliances
· Computing & gaming
· Personal audio
· Mobile communications
· High-end audio & home theaters
· High definition flat panel televisions
· Music and movies
· Digital photography & photo printing
· Accessories to enhance product usage & experience
· And lots more!

More than 150 brands, 4000 products and countless solution bundles
individually recommended to best suit the customers’ needs.

Services

27
Reliance Digital reviews all its products to provide the best to its
customers. It has a specially designed ‘Experience Zones’ to get the real
feel of the product before purchasi ng it.

Reliance Digital provides financial assistance through easy EMI

Schemes; Company has appointed Bajaj Capital to provide financial
assistance to its consumers. Consumers have to make 40% down payment
and the remaining amount is distributed into 8 EMIs and interest rate
varies from brand to brand products.

Reliance Digital has a ResQ facility, which serves the purpose of a

technical support team. It comes to rescue to provide solutions for
problems that customers may face with products from all leading brands.
This facility is available 7 days a week; 365 days a year from 10 a.m. to
10 p.m. They have qualified engineers to deal with installation and to
guide you with the usage of the appliances.

ResQ services are -

Product installation: ResQ help to set up customers’

product for optimum performance

Specialised customer training: Specialised training to

customers on products and related applications by an
industry trained personnel

Authorised Service Station for diagnosis and repairs

(Caters to all brands)

· One stop solution for repairs for all brands’ products

28
· Repairs covering both pre and post manufacturer warranty periods
· On-site service for select products – for the rest, our engineer s
shall transport products to and fro from the service station

Demonstrate Product Usage:

 Live demonstration of all features of the product

 Provide handy care tips

Health check-up plan: Preventive Maintenance

 To ensure that products do not malfunction, resQ offer periodic
services and maintenance check-ups
· Tips on upkeep of products for optimal performance
· Also covers products not purchased from Reliance Digital

Enhanced Utility: ResQ Accessories

· ResQ offer a host of utility products and accessories that are
compatible with products & help customers get more of them!

Extended Warranty Service- ResQ Care Plan

· Free repairs, including both parts and labour

· Free preventive maintenance visits during plan period

29
Area of operation – National:

Reliance Digital is a Consumer Electronics, Durables, IT & Telecom

retail arm of Reliance Retail Group, a subsidiary of Reliance Industries
Limited, and currently 58 Reliance Digital stores are operating in India
and 9 stores are operating in NCR Delhi.
1.1.6 Organizational Structure

30
CMO – Commercial Operatio ns Manager

VM – Visual Merchandiser

DM – Department Manager

CE – Consumer Electronics

Telecom – Telecommunication

HA – Home Appliances

IT – Information Technology

TL – Team Leader

SSA – Senior Sales Associate

JSA – Junior Sales Associate

MOO – Material Operational Officer

MOE – Material Operational Executive

CRM – Customer Relationship Manager

SHE – Senior Helpdesk Executtive

JHE – Junior Helpdesk Executtive

Skills
Employees must have products knowledge and they should have skills to
persuade customer to purchase product. At Reliance Digital Company
provide training to the employees on products which help employees to
make sale of product with their best knowledge of product and skill. In
successive intervals the company sends mystery shoppers to stores to
evaluate the performance of the employees and they rate the performance
of employees in the store and report to the company if the training is
31
required company arranges for it. And whenever new product has arrived
to store they provide training on that particular product in the store
learning center.

During the training conducted by the company they make sure that the
employees are aware about the products information and also sales
associates are given proper selling skill tips and training on selling
procedure.
Employees are also trained on how to greet and groomed to their best
ability and they are trained to handle all minor issues encountered in the
store.

Staff
Organizations are made up of humans and it's the people who make the
real difference to the success of the organization in the increasingly
knowledge-based society. The importance of human resources has thus
got the central position in the strategy of the organization, away from the
traditional model of capital and land.
Reliance Digital has 58 stores in pan India and has got more than 1000
employees working for the company.

Shared value
· We believe in people
· We believe in and follow the customer
· We believe in the good of the community
· We believe in each other

Style
Reliance Digital has a very friendly environment for all the employees
.The management follows top/down and bottom/up approach. Where in
top management transfers the information from the higher level to the

32
lower level. The target and objectives are set by the top level managers
and are delegated to the lower level managers those in turn transfer to
Team leader and sales associates in the store level, hence all the major
decision are taken by the higher authority and shared to the lower level.

The lower level employees i.e., Team leader and sales associates revert
back to the daily reports to the Department manager who in turn reports
to the store manager and further store manager to his higher authority
and it continues.

Every employee has a participative approach towards the business. Every

employee is concerned with his Duties, Responsibilities and
accountability for the happening of the event and employees have to
report to their higher authority at regular intervals.

Ownership pattern:

Reliance industry is the largest conglomerate in India, having number of

brands with the different businesses. The ownership pattern of Reliance
Digital can be explained as - Reliance Industries Limited has different

33
subsidies; Reliance Retail Limited is one among the subsidies and under
which Reliance Digital is one of the Retail Business of Reliance retail.
Reliance Digital or the Reliance Retail Limited has not listed in stock
market individually but Reliance Industries Limited (RIL) as whole listed
under stock market where all the subsidies of RIL is considered to be a
group and listed in the stock market. Hence Reliance Digital is a Public
Limited Company and Mr. Mukesh D. Ambani is the Chairman and
Managing Director of Reliance Industries Limited.

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

1.1.7 S.W.O.T Analysis

Strength:

· Brand Name Reliance - Reliance Industries Limited, is a Fortune

Global 500 company and is the largest private sector company in
India.
· resQ Services - The dedicated service arm that is available for

34
 support all 365 days of a year, from 10 a.m. to 10 p.m.
· Network - Over150 international and national brands.
· Private label sale – Some of own products (Reliance Reconnect).
· Product mix - One-stop shops for all technological solutions, it has
over 4000 products at reasonable prices.

Weakness:
· Poor inventory control.
· Inadequate human resources.
· Operating costs are too high.

Opportunity:
· Potential for investment.
· High growth potential.
· E-retailing.
· Retail franchising.
· Wholesale trading.
Threat:
· Increasing competitor’s market share.
· Price war with competitors.
· Inflation.
· Competition offered by Chinese products.

1.2. Environmental Scanning: Reliance Digital Business environment is

the constraints and opportunities that surround our businesses. This is
about exploring the nature of the business in which it is being carried out.
The analysis in this essay will be on business environment in which
Reliance Industries Limited operates. Reliance Industries Limited or RIL
is commonly known as Reliance. The company was founded by Shri.

35
Dhirubhai H. Ambani in 1977 the company was initially started as a
textile company and led its evolution as a world leader in materials and
the energy value chain. The Company’s operations can be classified into
four segments namely:

 Petroleum Refining and Marketing business

 Petrochemicals business

 Oil and Gas Exploration & Production business

 Others

There are two types of business environment INTERNAL and

EXTERNAL environment. Before coming on to the external forces, the
internal forces should be made clear. The internal forces are those forces
which are controlled by the organisation itself such as the resources
knowledge and decision making. Reliance in the above context has a
wide variety of resources such as well qualified employees and
infrastructure

As far as knowledge and decision making is concerned Because Reliance

recruits very well qualified persons thereby it reflects when it comes to
the decision making process of the company. External business
environment comprises of Political, Economic, Social and Technological
factors. These factors can have appositive as well as a negative impact on
the company. There are two types of external business environment i.e.
micro and macro. External micro factors are company’s suppliers,
transporters, agents, distributers, and wholesalers. External macro factors
comprises of Political, Economic, Social and Technological factors. The
external micro factors can be influenced by the organisation whereas
macro factors cannot be influenced by the organisation

36
1.2.1. Political environment: Political factors include government
policies relating to the industry, tax policies, laws and regulations, trade
restrictions and tariffs etc. As in any part of the world, political influence
is highly essential to start a business in India. Especially if you are
planning to start a multi-billion business, some sort of political patronage
is an absolute necessity. Not only for safeguarding the interest of the
company but even to begin the process of getting the required sanctions,
one requires hold in the high echelons of politics and administrative
circles. Reliance industries also hold a high echelon of political and
administrative circles so as to safeguard the interest of a company and for
getting the required sanctions.

Our Company Plant has been designed keeping in mind the International
standards and regularly monitored making it one of the best in the market.
Our team has been provided with technologically advanced machineries
and tools assisting in delivering Quality and Quantity products. Batch
after Batch of products is been thoroughly checked ensuring the same
level of standard is maintained. The robust infrastructural base has also
played a vital role in the consistent growth of the company even in the
cut-throat market conditions.

1.2.2 Economic environment: The economic factors relate to changes in

the wider economy such as economic growth, interest rates, exchange
rates and inflation rate, etc. These factors comprise of Government
intervention in the free market, infrastructure quality, economic growth
rate, availability of labour, wage rate of labour..

37
E - Waste Management Reliance Digital has a unique state of art waste
management program. Each electronic waste item passes through various
process of Segregation and Dismantling depending upon its nature into
marketable by-products.

1.2.3 Socio-Cultural Environment: Social factors often look at the

cultural aspects and include health consciousness, population growth rate,
age distribution, changes in tastes and buying patterns, etc.

Safety of a person overrides all the production targets’ is the Health,

Safety and Environment Policy of Reliance.

Occupational Health Centres (OHCs) have been established to provide

education on health and awareness issues, diagnostic camps and health
exhibitions are also arranged. RIL also offers periodic medical
examination of all the employees (including Contractors’ employees)
along with their family members. In case of any hospitalisation RIL
employees are supported by consistent co-operation and cashless
hospitalisation amenities from one corner of a country to another. The
company also provides fully equipped hospitals in all its major
townships. The company also helps conduct Periodic potable water
sampling analysis and health audits for the canteens and guest houses.

38
A new initiative was launched by RIL called (CASHe) programme i.e.
Change Agents for Safety, Health & workplace Environment. This
initiative was launched to promote healthy workplaces and reduce health
and safety risks. It has also facilitated the Syndicate to advance its
enactment on the occupational health and safety front.

The company’s long term objective is to address all environmental

initiatives as they want to become more positive about water
conservation, carbon neutral and conduct the maximum possible
recycling and reuse of wastes. The company has further been reinforced
in context of company’s management framework with roles
responsibilities, group standards and defined structures.

RIL’s Patlganga plant has changed over to use of a cleaner fuel. This
resulted in substantial reduction of suspended particulate substance and
sulphur dioxide releases in the air.

RIL has indoctrinated a practice to be in coordination with nature and in

this circumstance, afforestation, upkeep of green belts and promoting
lush green surroundings as they have decided to planted around 1,00,000
plants at the OT,
gardens, vermin-
compost of waste and its
use as manure, they also
reuse treated water for
horticulture activities as
a routine.

.1.2.4 Technological
environment: The
technological factors

39
relate to the application of new inventions and ideas such as R&D
activity, automation, technology incentives and the rate of technological
change.

 RIL has always laid emphasis on R&D, technology development and

innovation. The reliance Group (RTG) undergoes various research and
technology functions which help them produce improved value supply by
leveraging all the abilities, and creating new prospects at the interfaces.

At the time of recession also RIL did not even step back their zeal to
innovate helped them convert the adversity into an opportunity. The
company launched a ground-breaking initiative called “mission
kurukshetra” which was aimed at emerging the organisation to rise to the
occasion and also help the company to emerge stronger.

This initiative not only helped in combatting the challenges with a win
but also identified serial ideators; the enterprise facilitated them by
rewarding them for their leadership. The Leading Expert Access
Programme (LEAP). The people at RIL are inspired by leaders and also
provide them access to global thought.

The RIL draws an agenda on innovation with the help of The Reliance
Innovation Leadership Centre (RILC) which helps the company to stay
amongst one of the most innovative companies in the world. RIL
continues its journey to make improvement a way of life and want to
confirm that the growth of the next generation are led by innovation.

Advantages of PEST analysis:

PEST analysis is an effective and efficient tool, which provides a

framework to an organisation for effective decision making. By making
effective use of PEST analysis, one can ensure affirmative orientation of

40
the business organisation. PEST analysis also helps an organisation in
avoiding decisions which should not be taken. PEST analysis helps in
making lawful decisions for the companies which are willing to enter into
a new market.

Disadvantages of PEST analysis:

PEST analysis considers only the external business factors, but in reality
all the factors should be considered in order to make effective decisions
for an organisation. Most of the data gathered through this analysis is
based on assumptions, which sometimes may not prove to be fruitful for
an organisation. The rapid changes in the world economy can also make
it difficult in analysing PEST factors for an organisation.

 Another factor which comes under consideration is the SWOT analysis

of the company SWOT stands for strengths weakness opportunities and
threats.

.1.2.5 Environmental issues: There are many environmental issues in

India. Air pollution, water pollution, garbage, and pollution of the natural
environment are all challenges for India. The situation was worse
between 1947 through 1995. According to data collection and
environment assessment studies of World Bank experts, between 1995
through 2018, India has made one of the fastest progress in the world, in
addressing its environmental issues and improving its environmental
quality. Still, India has a long way to go to reach environmental quality
similar to those enjoyed in developed economies. Pollution remains a
major challenge and opportunity for India.

Environmental issues are one of the primary causes of disease, health

issues and long term livelihood impact for India.

41
1.2.6 Legal environment

The first one, historically, was information technology law (or IT law).
("IT law" should not be confused with the IT aspects of law itself,
although there are overlapping issues.) IT law consists of the law
(statutes, regulations, and caselaw) which governs the digital
dissemination of both (digitalized) information and software itself (see
history of free and open-source software), and legal aspects of
information technology more broadly. IT law covers mainly the digital
information (including information security and electronic commerce)
aspects and it has been described as "paper laws" for a "paperless
environment". The legal environment includes the laws and regulations of
a state. The laws and regulations will influence the way in which an
organization will market or sell the product and services. The legal
factors influence trade agreements between different governments and
states. The legal external factors in Apple’s remote/macro-environment
create threats to the business. This aspect of the PESTEL/PESTLE
analysis model indicates the impact of laws or regulations on business. In
Apple’s case, the following are the most significant legal external factors:
1. Increasing privacy regulations (opportunity & threat)
2. Increasing telecommunications regulations (threat)
Governments are realizing the privacy issues connected to digital
technology use. As a result, more privacy regulations are imposed on
businesses like Apple. This factor is a threat because it creates new
challenges for Apple in developing products that involve transmission of
private information. However, this factor is also an opportunity for the
company to improve product features that protect privacy.

42
 CHAPTER -2

RESEARCH METHODOLOGY
2.1. Statement of the Problem
Online advertisement being the one of the most effective advertisement
channel for the any brand or product, when company would like to go for
the internet or online advertisement it is necessary to understand the
customers or internet users’ perception and behavior towards the
advertisement that is posted on internet. When the company plan to
establish E Commerce distribution channel it is essential to have internet
advertisement strategies to ensure that it has high reach to internet users
or customers, that would create awareness of online distribution of the
products by the company as well as it promote the brand name. Therefore
the statement of the research problem would become the designing the
strategies for internet advertisement for the retail industry particularly
electronic and durable retail segment hence the title of the project is “A
Study on Developing Effective Internet Advertising Strategies with
Respect to Reliance Digital at NCR Delhi”.

2.2. Objectives & Scope of Study

 To study internet advertisement strategies
 To study online advertisement strategies with respect to
Reliance Digital
 To study perception of customers on internet advertisement
 To study customers awareness and preference for online
purchasing
 To suggest measures for improvement to the company

43
SCOPE OF THE STUDY
Reliance Digital management is planning to establish e-commerce
distribution channel to make easily available electronic and durable goods
to their customers since it is necessary for the company to advertise their
brand on internet. Therefore study on developing effective advertising
strategies over internet would help the company to have advertisement
strategies for online advertising.

2.3. Managerial usefulness of study

Opting for internship at reliance digital was an opportunity for me to
understand the retail industry and its nature of business. Understanding
Retail management difference in organized retail and unorganized retail
was a huge scope for my learning, the process and operation in organized
and unorganized retails has a lot of difference that I could able to
compare in my learning.

Using theoretical knowledge of Marketing and Retail Management I

found how practically the strategies are implementing in organized retail
and also I could find some areas of improvement that can be done in the
company.

Learning about merchandising and stocking in retail for the sale and
motivating sales team was a good exposure. I could find the level of
difficulty in convincing customers and the pain that sales team undergoes
to make a sale of product.

In my course of the study I understood all the factors those are to be

considered for an effective sale where I could find how merchandising
plays a vital role in attracting customers and stimulate them to buy the
product.

44
I understood the flow of work and the organizational hierarchy from top
level management to the store level. And also I could understand the
motivational factors that make employees to have job satisfaction in the
organization.

Customer’s mentality towards promotional sales programme also led me

to understand that people look for price prior to the quality or the actual
product. Overall exposure to Retail Management was an eye opener to me
as how business is carried out and what all should be considered for
making sales and to have effective retail management.

2.4. Type of Research and research Design

Universe: The respondents for the study will be the people who have
awareness about use of internet and already using internet for the various
purpose and the respondents can or cannot be the customer of Reliance
Digital but the respondents would have knowledge about electronic and
durable goods.
Sample Frame: The research is limited to NCR Delhi city.
Sample Size: The size of the sample is 60.
Sampling Technique: The technique used here is the non probability
sampling method, convenience sampling technique.
2.5. Data Collection Methods
Primary Data collection method has been used; the information for the
study collected from the respondents who have the awareness of internet
and using the internet for various purposes, Primary data was collected
from internet users to know the awareness of online purchasing and the
perception towards internet advertisements which would help in
designing advertisement strategies.

45
2.5.1 PRIMARY DATA: Data that are collected fresh and for the first
time and thus happens to be original in character. Primary data are
gathered for specific purpose.

2.5.2 SECONDARY DATA: Data that collected from primary data i.e.
they already exist somewhere. For the purpose of our study we collected
both the data.

Tool of data collection

The tool used to collect the data was the questionnaire which consists of
multiple choices, open ended and close ended questions to measure the
internet users’ attitude and perception towards internet advertisement and
also awareness of online purchasing.
Analysis Techniques

The collected data were analyzed using simple average method and Chi-
square Test.

2.6. Limitations of Study

 The survey research is limited to NCR Delhi only.
 The respondents’ response may be bias.
 As the sample size is 60, it may not be sufficient to get accurate
data.

46
 CHAPTER -3
CONCEPTUAL DISCUSSION
3.1. Review of Literature
This chapter brings out the review of relevant literature to the study.
Review of literature is necessary to have a proper knowledge on the
subject. It helps in proper understanding of the research work done by
academicians and industry people in the relevant field of study. Review
of literature helps in devising a proper framework to structure the
research and define the research problem. It avoids the chance of
unnecessary duplication of efforts in the same direction. So every
research should be preceded by an in-depth review of related literature as
it familiarizes the researcher with the studies carried out by other people
in the same area, the methods adopted by them, their results and the
recommendations for further research. The literature review in this study
tries to present the inputs from both theoretical as well as empirical
perspectives.

Retailing encompasses business activities in selling goods and services to

consumers for their personal, family or household consumption. Every
sale to the final consumer ranging from cars to clothes to movie tickets to
meals at restaurants is a part of retailing. It’s the last stage in the
distribution process. Retailing today is at a fascinating crossroads. Sales
of some of the leading companies in organized retailing are well ahead of
some manufacturing giants. Ex.- Sales of Wal-Mart is ahead of General
Motors, ExxonMobil. While retail sales remains at the highest peak in the
history on one hand, the retailers face numerous challenges on the other
(Evans & Berman, 2007).

47
Traditional retailing or unorganised retailing is a part of the Indian
society since generations. Traditional retailing signifies the small family
run stores in our neighbourhood. These stores sell products in small
quantities and as consumers we buy our daily need items several times in
a month from them. They are also known as ‘kirana’ or ‘mom and
pop’stores which sell daily need items like rice, wheat, pulses, flour,
spices, ghee, edible oils, snacks, jam, jelly, milk, vegetables, fruits, and
many such items. They are small in size due to which they do not stock
items in large quantities. Their share is around 96% in the Indian retail
market.

Organised retailing or modern format of retailing is new to the Indian

retail market but has emerged very fast in the last decade. It has gained
high acceptance because of the modern look and various facilities which
it provides but is still going through various changes. The organised
retailing has both speciality stores as well as multibrand multiproduct
stores which have become very popular among the consumers. Even with
its high acceptance and growth the share of organised retailing is only 4%
in the Indian retail market. But the small share also signifies a potential of
high growth for the organised retailers in future.

3.2. Current Issues

Retailing in International Context: Retail has emerged as one of the
largest industry worldwide in many countries like USA, UK, Mexico,
Poland and Asian economic titans like China, South Korea, Taiwan,
Philippines, Malaysia and none other than our own India. Moreover the
economies of countries like Singapore, Malaysia, Hong Kong and Sri
Lanka depend heavily on retailing. Retail in US generates an average
annual sales of more than $3trillion is the second largest industry ranked
both in terms of number of establishments and employment. The

48
organised retail sector in US generates 17% employment. The
employment generated in other countries are- Poland 17%, China 12%
and in India around 8%(Lahiri & Samanta, 2018). So we see that the
contribution of retailing is high both to employment generation as well as
the GDP of several economies of the world.

The centre of economic gravity of the world is moving to the east, i.e.
towards the Eastern Europe and Asia. The Asian market contributes to
around 40% of world population covering three time zones and around
20% of the global GDP. The recent growth in the retail sector in growing
markets like is backed by growing income and changing lifestyle. The
developing markets are able to absorb all types of organised retailers be it
global giants like Wal-Mart or small domestic players. The efforts of
retailers, potential investors and more importantly the government has to
make it happen (Misra & Khan, 2017).

The sales of the top five global retailers in 2018 are depicted through
table. The table also presents their country of origin and the number of
countries in which they are operating with their different formats of
retailing. Wal-Mart tops the list in sales and has a very big margin with
Carrefour which is at second position in terms of sales. It is surprising to
see that Kroger operates only in US but then also it holds the fifth rank in
terms of sales.

Table: The top five global retailer’s are

Retail Sales Company Country of 2018 Group Number of

Rank Origin Revenue (in Countries of
US$ mil) Operations
1. Wal-Mart USA $421,849 16

49
 2. Carrefour France $121,519 33
3. Tesco UK $94,244 13
4. Metro AG Germany $89,311 33
5. Kroger USA $82,189 01
(Source: http://www.stores.org)

As per 2018 Deloitte report which was published in the STORES

magazine the United States retail sector accounts for the highest number
of large, lucrative retailers in the world. In the list of top 250 largest
retailers by retail sales revenue in 2016, 32% were in the United States
and accounted for the 41% of the total retail sales. In 2017 the grocery
market in the six Central European countries was around €107bn, about
2.8% more than the previous year (PMR report: Grocery retail in Central
Europe 2018).

The retail market in China is growing fast and is expected to become the
second largest in the world by 2018, overtaking Japan. The modern
formats of retailing entered the Chinese retail market at the end of 1980’s
and has transformed the highly fragmented, small-scale, provincial
operating model to a large-scale modern retail format. In 1992 the China
government came with a series of policies to give boost to the retail
sector in China. This brought a fast, healthy and orderly development in
the Chinese retail industry. Dominance of any retail player could not be
seen in the Chinese retail market as the share of top five grocery retailer’s
accounts to only 21 percent of the total retail sales. The popular formats
presently in China are shopping centres, department stores, supermarkets,
convenience stores, speciality stores and non-store retailing.

Brazil tops the AT Kearney Global Retail Development Index

consecutively for the second year. The 2018 AT Kearney GRDI reveals

50
that the growth and investment possibilities in the developing countries
are far better than the developed markets. BRIC nations still tempt the
largest global retailers as the world’s largest developing markets.

Table: Top 5 countries in the AT Kearney 2018 Global Retail

Development Index

Country 2018 Rank 2017 Rank Change

Brazil 1 1 0
Chile 2 2 0
China 3 6 +3
Uruguay 4 3 -1
India 5 4 -1
(Source: http://www.grdi.atkearney.com/)

As per the AT Kearney report on one side the developing countries are
showing accelerated growth and on the other side the European and North
American markets are witnessing an anemic growth which is forcing the
global retailers to focus their strategic expansion in the developing
markets. Brazil which tops this list witnessed 15 percent increase in the
retail market size last year. The consumer spending in Brazil has
increased by 9 percent per year since 2007. Chile ranked second on the
GRDI is one of the fastest growing Latin American economies having
one of the most competitive retail markets in the region. With low
inflation and low risk Chile is expected to have a GDP growth of 6.2
percent in 2018.China has jumped to the third position in the 2018 GRDI
shows positive retail sales growth which is expected to be in double
digits. China enjoys the status of the world’s largest luxury goods market.
Inspite of having a small local population Uruguay is ranked fourth in the
2018 GRDI and is becoming a favourite retail destination for the global

51
retailers. This could be attributed to the rapid urbanisation and strong
consumption patterns and an all time low level of employment. The
country is showing a growth of 6 percent in GDP since 2007. India
ranked fifth in the 2018 GRDI still tempts the global retailers as a
favourite retail destination with expected accelerated retail market growth
of 15 to 20 percent in the next five years. Georgia ranked sixth in the
2018 GRDI has emerged as a small gem and favourite destination for
global retailers With uprisings in the Arab market a negative impact is
seen in the rankings of countries over there but UAE (ranked seventh)
and Oman (ranked eighth) are still showing good retail growth because of
their liberal and supportive government policies.

3.3. History and Development of Company and Industry

International Retailers: Let us have a brief look on the top five retail
companies of the world to have a broader understanding of the
international retail scenario.

Wal-Mart: Wal-Mart is the top global retailer in terms of its sales.

Started in 1962 with a Sam Walton discount store in Rogers, Arkansas
today Wal-Mart employs more than 1.4 million people in its various retail
formats alone in United States. It is famous for its offering of Every Day
Low Prices (EDLP). It became national in 1970s and became global in
1990s by opening its Sam’s Club in Mexico City.1990s was the time
when it entered in many countries like Canada, China, and the UK. It
topped the Fortune 500 ranking of America’s largest companies in 2002.
The various formats through which it operates are Supercenters, Wal-
Mart Discount Stores, Neighbourhood markets, WalMart Express Stores
and Sam’s Clubs.

52
Carrefour : Carrefour is a French multinational retailer headquartered in
Paris. It is the second largest retail group in the world in terms of revenue
and third largest in terms of profit. Carrefour’s slogan is ‘Low in
Price.....but high in trust’. It started its operations in 1959and opened its
first store in Annecy, Haute-Savoie, France. Started by Michael Fournier,
Denis Defforey and Jacques Defforey today it has grown today as the
second largest retailer in the world with operations in 33 countries. In
1963 it invented a new store concept: the hypermarket. It opened its first
hypermarket in Europe on 15 June 1963 near Paris with a floor area of
2500 square feet, 12 checkouts and 400 parking spaces. It entered in Asia
in 1989 by opening its first hypermarket in Taiwan. Carrefour operates
majorly in Europe, Brazil, Argentina, China, UAE, Dominican Republic,
Qatar and Saudi Arabia but also has its operations in North Africa and
other parts of Asia with smaller size stores. Presently it operates in
hypermarkets, supermarkets, convenience stores, cash & carry and hard
discount formats (http://www.carrefour.com).

Metro AG : It is a German international retailer which started in 1996

with the merger of retail companies Asko Deutsche Kaufhaus AG,
Kaufhof Holding AG and Deutsche SB-Kauf AG. The company entered
in the markets of China and Romania also in the same year. The company
has its operations presently in 33 countries, more than 2200 outlets and
around 2, 80,000 employees from 180 countries. Presently it is the fourth
largest retail group worldwide operating in Europe, Africa and Asia. The
year of 1998 was the most successful one in the company’s history with
increase in earnings before interest and tax by 63.5% and its business
abroad accounted to 35.2% of total turnover. The business abroad grew to
39.2% in 1999 and 42.2% in 2000 and its operations increased to 22

53
countries. Its operations increased to 28 countries in 2003 and to 30 in
2004.

Tesco: Tesco is a UK based international retailer operating in 13

countries and employing around 5, 00,000 people. It is the third largest
retail group in the world which accounted a CAGR of 9.3% in the period
of 2005-2016. The company operates in the formats of cash & carry,
warehouse club, discount stores, department stores, hypermarkets,
supercentres, superstores, electronics speciality and other speciality. It
has operations in the countries of UK, US, China, Czech Republic,
Hungary, Ireland, Japan, Malaysia, Poland, Slovakia, South Korea,
Thailand, Turkey.

The Kroger Co.: Kroger is a US based retailer which operates in various

formats. Although the company operates only in one country, i.e. - the US
market but then also its sales are so high that it is ranked as the fifth
largest retailer in the world. The company accounted a CAGR of 6.3% for
the period of 2005-2016. The different formats in which the company
operates are convenience/ forecourt stores, hypermarkets/ Supercenters,
Superstores, supermarkets and other speciality. Kroger is a store brand
market leader in United States. Its store brand sales accounts roughly to
one-third of the total unit sold (Venkateswaran & Mahalakshmi,
2016).The company operates with nearly 2500 stores in US market and
employs around 3,40, 000 employees.

Retailing in India: Retailing is selling goods to the end consumers; it’s

the last stage in the distribution process. Retailing has gone through
major transformation in the Indian market. From a distribution function
alone today retailing has evolved into an industry in itself. The
contribution of retail is accounting around 9-10% of India’s GDP and

54
around 8% in the total employment. The share of organised retail sector is
only about 4% which indicates a high scope for growth. The multiple
effects of retail on the Indian economy are - employment generation, real
estate growth, development of small scale units, development of retail
ancillary market, etc. (Aggarwal, 2008).

Retailing is one of the largest sectors in the global economy and is going
through a transition phase. It is also India’s largest industry sector, and
also arguably the one with the highest impact on population. It is the
country’s largest source of employment after agriculture (Kaushal &
Sanjay, 2017). Upsurging consumerism, changing lifestyle, increasing
access to information and ever improving technology, made the last
decade observe an enormous development in the retail sector around the
globe (Lahiri & Samanta, 2016). The retail sector in India is witnessing a
tremendous growth with the changing demographics and lifestyles. An
improvement could be seen in the quality of life of urban Indian
consumers (Krishnan & Venkatesh, 2008).

The AT Kearney Report 2018 ranks India on the fifth position in the
Global Retail Development Index and on the second position in Asia after
China. So India still remains an attractive destination for global retailers.
This report says thatwhile the world’s largest markets – particularly the
BRIC nations of Brazil, Russia, India, and China – still tempt the largest
global retailers, and show no signs of slowing down as a source of
growth.Many smaller untapped markets are providing new growth
opportunities (Brazil Tops A.T.Kearney Global Retail Development
Index for the Second Year).

With Liberalization, Privatization, Globalization and Modernization, a

modern competitive business is based on understanding the mind of the

55
customers and providing the kind of products and services he wants.
While barter system could be considered as the oldest form of trade; since
independence, retail in India has evolved to support the unique need of
the country, given its size and complexity. Haats, Mandis and Melas have
always been part of the Indian Landscape. They still continue to be
present in most part of the country and form an essential part of trade in
various areas.

In the period of 1950s to 1980s, investment in various industries was

limited due to the low purchasing power of consumer and government
policy favouring the small scale sector. Initial step towards liberalization
was taken in 1985-90. Many restrictions were lifted in this period and in
1990s the Indian economy slowly progressed from state-led to market
friendly structure. This was the starting of a new era for retail in India.
The fact that post liberalization, in the economy had opened up a new
large middle class with emerging purchasing power (Das & Kumar,
2015).

The present retail distribution is fragmented with around 12 million

players. The retail outlets are spread in about 5,000 cities and 6, 00,000
villages across the country. The majority of these are run through small
shops of less than 50square feet size. India is presently seen as a ‘Vibrant
Economy’ which tops in the list of emerging markets. Currently India is
the second fastest growing economy, the third largest economy on the
basis of GDP and the fourth largest economy on the basis of purchasing
power parity (PPP). USA, China and Japan are before India in PPP. India
is also among the top 5 destinations in attracting FDI from international
retailers (Das, 2017).

56
Around 96% of the 5 million plus outlets are having an area of less than
500 square feet. It denotes that per capita retailing space of India is about
2 square feet as compared to 16 square feet in USA. In USA around 20%
of the population is engaged in retailing and the same ratio in India is
over 8% (Ashokan & Hariharan, 2008)

The centre of economic gravity of the world is moving to the east, i.e.
towards the Eastern Europe and Asia. The Asian market contributes to
around 40% of world population covering three time zones and around
20% of the global GDP. The recent growth in the retail sector in growing
markets like India is backed by growing income and changing lifestyle
(Misra & Khan, 2008).

The slowdown in the European and North American markets and the
accelerated growth in the developing countries are forcing the global
retailers to plan their expansion in the developing markets. As per
Michael Moriarty, A.T. Kearney partner and study coleader “In the past
five years, U.S.-based Wal-Mart, France-based Carrefour, U.K.- based
Tesco and Germany-based Metro Group saw their revenues in developing
countries grow 2.5 times faster than their home markets” (Brazil Tops
A.T.Kearney Global Retail Development Index for the Second Year).

As per Goldman Sachs, 2005 it is forecasted that the Indian Economic

Growth would surpass China by 2015. Retailing is in our blood either as
a shopkeeper or a shopper. The Indian retail market would grow from
US$330billion in 2005 to US$ 427billion by 2016 and US$637billion by
2015 (Das, 2017) and the share of organised retail is expected to be
around 22 percent from the present 4 percent (Dalwadi, Rathod, & Patel,
2016).

57
Organised retail in India is booming but is still evolving. It is also India’s
largest industry, and also arguably the one with the highest impact on
population. It is the country’s largest source of employment after
agriculture. Retailers know that the image and penetration of the store
have significant impact on the perceived quality of the products, there has
not be real differences in products sold at different stores (Kaushal &
Sanjay, 2017).

A restrictive environment and a mindset favouring denial of

overconsumption have stunted the development of Indian retail industry
keeping it largely unorganised with mostly small independent and owner
managed shops. But then also it contributes 8% to the GDP of the country
(Lahiri & Samanta, 2016). The experience of the changing retail scenario
is making the consumers today to think globally. The emergence of
retailing in India has more to do with the increasing purchasing power of
the buyers, especially in the post liberalization era (Prakash, 2007) .

A GDP growth rate of 6 to 7 percent, the rising disposable income, the

changing lifestyles and fast urbanisation makes India a high potential
market. An accelerated retail market growth of 15 to 20 percent is
expected over the next five years in India. The changing FDI climate
provided and supported by the Indian Government has generated a
positive environment for the global retailers. The share of organised retail
in India is only 5 to 6 percent but it indicates a room of high growth
(India ranks 5th in Global Retail Development Index but where in Global
Ecommerce Index?: A report by AT Kearney, June 27, 2018). Recent
changes in the FDI regulations in October 2018 by the Government of
India indicate a positive environment for the international retailers and
retail growth in general.

58
The Changing lifestyles, food and eating habits of consumers have
contributed largely to the growth and development of organised food and
grocery retail formats in India. The kirana stores with a share of 99.2%
dominate this sector, have strong relationships with the customers for
various technical and functional quality benefits extended to them. In the
recent years huge growth in Indian retail market is due to the high
demand of quality products and services that increased the competition
among modern retail formats. At the same time the intense competition
from the kirana store have necessitated the organised retailers to come up
with innovative ways of marketing (Prasad & Aryasri, 2008).

The growing affluence of the Indian middle class, a flood of imported

products in the fashion and food categories, the increasing space for
groceries and the emergence of a new breed of entrepreneurs are drivers
of boom in retail sector of India. The Indian youth population is driving
the changes in consumption and spending patterns. With the increasing
role of woman in workforce, the modern retailing is gaining more
acceptances. The environment created by the modern retailers in their
stores, the fast processing, better quality and hygiene and discounts, all of
these issues are welcomed and appreciated by the modern housewives
(Krishnan & Venkatesh, 2008).

The increasing sophistication in the shopping habits of Indian customers

is supporting the emergence of organised retail. The changing taste and
preferences is leading to a radical transformation in the lifestyle and
spending patterns. This is further increasing the business scope for
organised retailers. The proliferation of mega malls is adding extra spice
to the booming Indian retail sector. This development in the organised
retail is also seen in other cities apart from metros (Das, 2017).

59
According to IMAGES India Retail Report 2007, of the Rs 12, 00,000
crore retail market, food and grocery retail is by far the single largest
block estimated to be around 7, 43,900 crore (63 percent) but 99.2
percent of this market is dominated by the traditional Kirana Stores and
organised sector is having a share of meagre 0.8 percent which is Rs.
5950 crore only (IMAGES India Retail Report, 2007). Food and grocery
is the second largest segment of the retail trade that constitutes 53 percent
of the total private consumption expenditure (US$ 154 bn) and 70 percent
of the total retail sales (KSA TechnopakRetail Report, 2007)

In an age of increasing competition from giant organized grocery

retailers, local retailers need to have commitment and willingness to the
needs of the local community for their survival (Broadbridge &
Calderwood, 2002). To address the growing concern of livelihood
organised retail companies like Reliance Retail have invited small
retailers as well as individuals to become franchisees on revenue sharing
model (Thakkar & Bhatt, 2007). On the same model the Bharti-Wal-Mart
venture too intends to offer employment opportunities to 60, 000 people
by 2015 (Times News Network, 2007). The entry of big grocery format
of Reliance and the proposed Bharti-Wal-Mart venture is expected to
further kick up intense competition in the business and put pressure on
margins (Daftari, 2007).

Retailers in India

Big Bazaar is the largest chain of hypermarts in India which was

introduced by the Future Group in September 2001 by the opening of its
first four stores in Kolkata, Indore, Bengaluru and Hyderabad in just a
period of 22 days. A present there are more than 200 stores across 90
cities and towns in India covering around 16 million sq.ft. of retail space.

60
Promoted by Kishore Biyani of Future Group it started mainly as a
fashion format selling apparels, cosmetics, general merchandise and
accessories (www.pantaloonretail.in). Over years it has evolved into
selling wide assortments of products and services, ranging from groceries
to electronics. It has been designed as an agglomeration of Indian bazaars
which has sections of fashion and apparels, general merchandise,
furniture, food products, books, fast food and leisure and entertainment
products. It aims to deliver customers a feel of the local marketplace. In
2003, Big Bazaar entered into small towns and cities and has been
successful. The first store in this category was launched that year in
Nagpur. It has many awards to its credit and captures a major share of the
food and grocery market of the modern formats of retail in India. Big
Bazaar recently came out with its plan to add more retail services to its
portfolio like grinding, de-seeding and cutting of fruits and vegetables at
free of cost. Big Bazaar scores over other stores due to its value for
money proposition for Indian customers. Apart from Big Bazaar the
Future group presently owns Pantaloons, Brand Factory, Central
Hypermart, eZone, HomeTown, futurebazaar.com and KB’s Fair Price.

Spencer’s is a multi-format food-first retailer providing a wide assortment

of products to discerning young customers. Headquartered in Kolkata the
company launched its first Foodworld store in 1996 in Chennai. Presently
it has around 400stores in 60 cities of India. It has a wide range of
product assortments which includes fresh and packaged food, groceries,
electronics and electrical equipments, garments and fashion accessories,
toys, home and office essentials, and personal care products. Its stores are
mainly of two types- convenience stores with the name Spencer’s and
hypermarkets with the name Spencer’s Hyper. The company has won
many awards. Spencer's boasts of a wide range of private labels in both

61
foods as well as non-foods FMCG category. 'Spencer's smart choice' is
the leading in store brand which has a large number of products ranging
from juices, noodles, cookies, honey, Air freshner etc. The 'clean home'
range of home improvement products and 'Tasty wonders' a range of
snacks and impulse food range. Apart from this Spencer’s has smartly
and successfully launched its general merchandise products under the
brand name of MAROON which includes Non Stick, Hard Anodized,
Home Plastic and Foils (www.spencerretail.com).

Shoppers Stop was started in 1991 by the K Raheja Group with its first
store in Andheri, Mumbai. It is one of the leading retail stores in India
which began by operating a chain of department stores under the name
“Shoppers’ Stop” in India.

Shoppers Stop has 56 stores across the country (with the latest one being
the outlet at Kumar Pacific Mall, Pune) including three airport stores.
Shoppers Stop Ltd was awarded "the Hall of Fame" and won "the
Emerging Market Retailer of the Year Award", by World Retail Congress
at Barcelona on April 10, 2008. It got listed on the BSE in 2017.

Shoppers Stop retails a range of branded and private label under the
following categories of apparel, footwear, fashion jewellery, leather
products, accessories and home products. Cafe, food, entertainment,
personal care and various beauty related services complement the above
categories. Shoppers Stop also has its e-store which was launched in 2008
with delivery across major cities in India. The website retails all the
products available at Shoppers Stop stores, including apparel, cosmetics
and accessories (www.shoppersstop.com).

Reliance Retail Ltd. is a subsidiary of Reliance Industries headed by Mr.

Mukesh Ambani and is headquartered in Mumbai. Since its inception in

62
2006, Reliance Retail Limited (RRL) has grown into an organisation that
caters to millions of customers, thousands of farmers and vendors. Based
on its core growth strategy of backward integration, RRL has made rapid
progress towards building an entire value chain starting from the farmers
to the end consumers.

It is the second largest retailer in India. It runs multi product multi brand
retail outlets across several cities in India which sell food & groceries,
vegetables, fruits, farm implements, electronics, apparels, footwear,
lifestyle and home improvement products, flowers, etc. Its focus is on
consumer durables, travel services, consumer goods, health and well-
being products, entertainment and leisure, energy, educational products
and services. The below mentioned companies are operating as
subsidiaries and divisions under Reliance Retail –

1) Reliance Fresh – It is a convenience store format selling fruits,

vegetables, staples, groceries, dairy products, etc. Reliance Fresh store is
of approximately 3000–4000 square feet and generally caters to a
catchment area of 2–3 km.

2) Reliance Hypermart – Retail outlets selling fruits, vegetables, staples,

groceries, apparels, footwear, lifestyle and home improvement products,
electronics, etc.

3) Reliance Digital – Retail stores selling Consumer Electronics.

4) Reliance Jewels - Retail stores selling Jewellery

5) Reliance Time Out – Retail lifestyle stores selling books, music, toys,
stationery, movies, gaming, fragrances

6) Reliance Trends – Stores selling apparel and clothing

63
7) Reliance Footprints – Retail outlets selling footwear, baggage trolleys,
wallets, belts, etc.

8) Reliance Wellness – Retail stores selling pharmaceutical products.

9) Reliance Super – Supermarket retail stores selling fruits, vegetables,

staples, groceries, dairy products, fruit juices, etc.

Opening of reliance stores faced great resistance from local vendors in

UP and West Bengal. The company dropped the idea to run its stores over
there. The company may not stock fruit and vegetables in some states.
Though Reliance Fresh is not going out of the fruit and vegetable
business altogether, but it has decided not to compete with local vendors
partly due to political reasons, and partly due to its inability to create a
robust supply chain. This is quite different from what the firm had
originally planned. Reliance Retail has also entered into an alliance with
Apple for setting up a chain of Apple Speciality Stores which would be
known as iStore. Its first store started in Delhi; presently around 17 stores
are operational (www.ril.com).

BestPrice is a cash and carry format promoted by the Bharti Wal-Mart

joint venture with a 50:50 stakes in Bharti Wal-Mart Private Limited. It
started in 2015 and sells goods from a wholesale house. This format sells
bulk food, consumables and supplies to businesses. The BestPrice store
operates in a size of about 54, 000 square feet. Its first Cash and carry
facility started in May 2015 in Amritsar. They have their stores now in
Jalandhar, Bhopal, Kota, Ludhiana, Indore, Vijaywada, Zirakpur, Meerut,
Raipur, Lucknow, Jammu, Aurangabad, Bhatinda, Guntur, Amravati,
Rajahmundry and Hyderabad.

Retailing in Jharkhand: Jharkhand also witnessed the entry of some of

the retail chains like- Spencer, Reliance, Big Bazaar and Vishal
64
Megamart Most of these started with multiple number of outlets but all of
them could not sustain. Closure of some of the retail outlets in Jharkhand
sent a warning signal to the existing ones and also to those who were
looking to enter in this market. It has become now clear to the retail
players that only opening the stores will not lead to success rather one has
to catch the pulse of the market and act accordingly within time. The
companies have to be update and upgrade them with the latest
developments to be successful. The retail companies which entered the
Jharkhand market are Spencer, Big Bazaar, Reliance, Vishal Megamart
and Bazaar Kolkata.

Retailers in Jharkhand: Spencer started in 2008 in Jharkhand by

opening its stores in Ranchi, Dhanbad and Jamshedpur. It first closed four
of its seven outlets in 2015 and later on closed the other three outlets also.
According to a company official the company did not found the
Jharkhand market viable (Kiro, 2015). Vishal Megamart opened its
centres in Ranchi, Dhanbad, Ramgarh, Hazaribagh and Bokaro
(franchisee store). It was successful in its early years but with opening of
Reliance stores and Big Bazaar its market share went down. The
acceptability came so low that its store got closed in Dhanbad. Vishal
Megamart opened its second store in Dhanbad at a different location but
it again was not successful and got closed.

Big Bazaar opened its store in Ranchi in 2008 and has been running
successfully. It also has its store in Jamshedpur, Dhanbad and Deoghar.
The Future group opened its Pantaloons showroom in Ranchi and
Dhanbad in the year 2018. Reliance opened its stores in 2006 in the cities
of Ranchi, Dhanbad and Jamshedpur. It has entered the Jharkhand retail
market in multiple formats of Reliance fresh, Reliance Super and
Reliance Mart. Although it faced some problem in the early years as it

65
closed two of its outlets in 2015 but now it is running successfully. Later
on it opened its other speciality formats of Reliance Trends, Reliance
Footprints and Reliance Jewels. Presently around 30 reliance stores in
various formats are running in Jharkhand. BazaarKolkata is running its
multiproduct multibrand store in Ranchi. Presently the major retail
players operational in Jharkhand are Big Bazaar, Reliance, Vishal
Megamart, and Kolkata Bazaar. Reliance when started in Jharkhand faced
the ire of mobs of local vegetable vendors. The mob attacked the stores
claiming that they would affect their livelihoods. However, now they are
running successfully.

Factors affecting Organised Retailing: Upsurging Consumerism,

changing lifestyle, increasing access to information and ever improving
technology, made the last decade observe an enormous development in
the retail sector around the globe (Lahiri & Samanta, 2016). Organised
retail in India is booming yet it is in a nascent stage. It is also India’s
largest industry sector, and also arguably the one with the highest impact
on population (Kaushal & Sanjay, 2017). To be successful a retailer must
provide better products, services and physical facilities which are
becoming important with the increasing sophistication in the lifestyle of
the Indian consumers.

With sweeping changes in the Indian retail market an interesting future

could be foreseen. The Indian middle class which is the world’s largest is
waking to the retail revolution. Much time would be required to reach the
optimal penetration. It is already becoming tough for the retailers to
operate in the Indian market with high costs and low margins. Retailers
with the right marketing strategies would only be successful (Gupta D.
D.). To remain successful repeat business is very important for the
retailers. For increasing repeat business retailers are trying to increase

66
retention of customers by creating customer loyalty programs, rewards,
and databases with personal information of customers. A comprehensive
credit system scheme may help the organised retailers to enhance their
sales potential and growth (Ramanathan & Hari, 2017). The ‘Reliance
One’ card by reliance retail, the ‘Payback’ card acceptable by many other
retailers in India is an example of loyalty program efforts put by retailers.

Competitors Information:

Croma

Croma is India’s first national, large format, specialist retail chain for
consumer electronics and durables.

Croma is promoted by Infiniti Retail Ltd, a 100% subsidiary of Tata

Sons. Woolworths, one of the world’s leading retailers, provides technical
and strategic sourcing support, ensuring that you buy nothing but the best.

Croma's first store opened on October 9, 2006 at Juhu in Mumbai, and

it'srolling out many more stores across India.

 Brand Philosophy
 If service wasn't important.
 If technology wasn't complex. If variety wasn't confusing.
 We would have no reason to be in business. We help you buy.

eZone

eZone is an experience-led lifestyle format that brings together the best in

national and international consumer electronic and durables brands in a
family-centric environment. Typically covering 12,000 square feet, an
eZone store truly enables you to experience electronics through three
dedicated zones - Liberation Zone, Experience Zone and Home Zone.

67
The Liberation Zone offers personal products like computers, laptops,
handy cams, MP 3 players and mobile phones. Entertainment products
such as Plasma / LCD, Flat TVs, Home Theatre systems, DVD players,
and Stereo systems are displayed in the Experience Zone. In the Home
Zone segment, one gets to pick electronic goods of his or her choice
including Refrigerators, Air-Conditioners, Washing Machines and
Microwave ovens among other kitchen-related appliances. eZone also
offers an unparalleled service and support through the special ‘E-Care’
customer support centre. E-Care is a special, dedicated support system
designed to offer the best customer service after purchase of any product
at eZone.

There are other unorganized consumers electronic and durables brands

such as Pai International, Girias and Harsha Electronics are operating in
Karnataka and some other states of the country and these can be called as
local market competitors but these brands are not to be considered as
competitors for Reliance Digital Retail Limited.

Infrastructural facilities:

Planogram

Also known as plano-gram, plan-o-gram, and POG, planogram is a

visual representation of a store's products or services considered as a tool
of visual merchandising in retail store.

Signage

Signage is kind of visual graphics created to display information about

products to customers.

68
Experience Zones

Experience zones take consumers through a delightful and interactive

voyage in the world of electronics and durable goods. Crafted with the
latest signage, audio and merchandising where customers can experience
the products before purchasing.

Home theater experience zone

It is an exclusive experience zone in reliance digital store. It is a small

room arranged well furnished with sound systems where consumers can
experience the home theaters before purchasing.

3.4. New Development of Company and Industry

Play station

Play station is advanced video gaming station where customers who visit
the store can play and have delightful shopping experience with reliance
digital.

Learning Center

Learning center is training center that is located within the reliance digital
store where employees are trained on the products those arrived in the
store and usually this center is used for meetings in the store.

69
 Operating Model

Work flow model:

The nature of the business is re tailing hence the manufacturing of goods

is not involved with reliance digital instead goods are ordered and
brought into stores for the retail sales. The numbers of products from the
d ifferent brands with different product ranges are recruited into stores
and further sales is made so the work flow model could be Operating
Model and Stock Ordering Process.

Operating Model Explanation

1. The operating model begins with Pre – installation Counseling &

queri es of customers basically this happens though telephonic
queries by customers or approach to know about product available
in reliance digital and this step will supported by resQ team.
Usually this will not be the initial step in most of the cases,
customers directly approach store to know about the products.

2. The second step could begin the actual operating model because
most of the customers first approach store and get to know details
about their required product, when customers walk in to the store
employees counsel the customers, attend their queries and also
70
 understanding their requirements they provide consultative solution
to customers and this can be considered as beginning step of
operating model.

3. After counseling and consultation when customer make the

purchase of goods, delivery of goods will be supported by Reliance
D&L Team, team also help customer in exchange and product
pick-up in case of any replacements after sale of goods as post
sales service.

4. When goods are delivered to customers by D&L team, reliance

resQ team helps customers by Demonstration and Installation of
product at customers place.

5. And after sales services such as extended warranty/maintenance

and repairs will be supported by resQ team in the company.

6. And also replacement and up gradation of products will be

supported by resQ team and further queries regarding products etc
will handled by resQ team, with this again operating model may
continues as discussed above.

Stock Ordering Process

Reliance Digital has classified electronics and consumer durable goods

into four departments as
1. Consumer Electronics
2. Home Appliances
3. Information Technology
4. Telecommunication

When the goods in the departments need to be ordered; each department

follow the following procedure for ordering the stock.

71
 Stock Ordering Process

Stock Ordering Process Explanation

Stock report of every product is verified regularly by all the departments .

In case there is no stock or less quantity in the stock for the products, sto
ck ordering mail has to be sent to the categgory department of respective
section requesting the list of goods required in the department with the
complete details such as Product, Brand Name, Article code and Quantit
y, and ordering mail should have store code.

Category department is a central body present in the Mumbai corporate

office, category department place the order to respective Brands to
deliver the goods to central ware house of the state.

Brand people deliver ordered goods to respective central ware house,

central ware house become the distribution center for the stores.

Distribution center sends the goods to the stores those are ordered.

When the goods arrive to the store goods are received by material
department of store.

72
 CHAPTER -4
DATA ANALYSIS
1. How often respondents make use of internet
Options Percentage (%)
Once in a day 39
Twice in a day 28
Once in two days 10
Once in a week 7
Almost 24*7 16
Total 100
Table 4.1
Analysis
Form the above table we come to know that 39% of the respondents browse internet
once in a day, 28% twice in a day, 10% once in two days, 7% once in a week and
16% of respondents browse internet almost 24*7.
45

40 39

35

30 28

25

20
16
15
10
10 7
5

0
Once in a day Twice in a day Once in two days Once in a week Almost 24*7

Graph 4.1
Inference
The study shows that 39% of respondents browse internet once in a day it is being the
highest and 16% of respondents browse internet almost 24*7. Therefore 55% of
respondents browse internet on daily bases so with this we can notice that more than
half of the internet users making use of internet for various purposes in their day
today life, hence internet being the best channel for communication to create
awareness about product or brand.

73
2. Websites that respondents browse often

Percentage of
Websites Total Responses Responses (%)
Facebook 89 24.93
Google 95 26.61
Wikipedia 14 3.92
Gmail 58 16.24
Yahoo 45 12.60
Youtube 23 6.45
Others 33 9.25
Total 357 100
Table 4.2
Analysis
The above table reveals that respondents browsing websites often in their regular
intervals 89 respondents using social networking website Facebook, 95 respondents
says they browse google, 14 browse Wikipedia, 58 Gmail, 45 Yahoo, 23 Youtube and
also 33 respondents browse other websites viz., Rediffmail, Skype, twitter, linkedin,
hotmail, moneycontrol, orkut, indiatimes, songspk, torrento, irctc, icccricket, bcci,
news.com etc
30
26.61
24.93
25

20
16.24
15 12.6

10 9.25
6.45
5 3.92

0
Facebook Google Wikipedia Gmail Yahoo Youtube Others

Graph 4.2
Inference
From the survey we can find that 95 respondents use search engine google and
Wikipedia is also being one of the search engine but only 14 respondents are using it
where social networking website Facebook having highest usage by the respondents,
other social networking website such as twitter, likedin and orkut etc having less
usage by the same respondents. Gmail, Yahoo and Youtube are used by 58, 45 and 23
respondents respectively. Other websites in clude Rediffmail, Skype, twitter, linkedin,
hotm ail, moneycontrol, orkut, indiatimes, songspk, torrento, irctc, icccricket, bcci,
news.com etc. these all together mentioned by different res pondents. By the survey
we come to know websit es viewership by the respondents.

74
3. Respondents browsing internet for advertisement
Options Percentage (%)
Yes 37
No 63
Total 100
Table 4.3
Analysis
37% of respondents browse internet for advertisement to know the product features,
price, offers and discount. And also for the comparison of products on which they are
in need and some respondents think that browsing advertisement on required product
saves time in searching for the information about the products.
70
63
60

50

40 37

Column1
30

20

10

0
Yes No

Chart 4.3

Inference
From the chart 03 we can conclude that 37% of the respondents browse advertisement
for various reasons on their require d product therefore posting advertisement of the
products might reach to these people on their requirement time.

75
4. How respondents read promotional emails
Options Percentage (%)
Always 3
Sometimes 48
Often 11
Seldom 6
Hardly 20
Not at all 12
Total 100
Table 8.4
Analysis
From the Table 04 we can see that only 3% of the respondents read all the
promotional emails and 12% respondents do not read at all, 48% respondents say they
read sometimes, 11% often, 6% seldom, and 20% hardly read promotional emails.
60

50 48

40

30

20
20

11 12
10
6
3
0
Always Sometimes Often Seldom Hardly Not at all

Graph 4.4
Inference
Study shows that only 3% reads all promotional emails and 12% do not read at all and
from rest 85% we can come to conclusion that they read rarely. Hence mailing
promotional emails may be one of the ways to create brand and product awareness.

5. Respondents aware of online shopping websites

Options Percentage (%)

76
Yes 77

No 23

Total 100

Table 4.5
Analysis
77% of the respondents have awareness about the online shopping websites and 23%
do not have awareness. Therefore we can see that 77% of the internet users have
awareness about e-commerce websites.
90

80 77

70

60

50
Column1
40

30
23
20

10

0
Yes No

Graph 4.5
Inference
From the study we can draw inference that 77% internet user in the market are aware
of e-commerce websites hence these 77% of the internet users can be potential
customer for the company perhaps the company open an e-commerce distribution
channel to make electronic and durable goods available easily t o customers. And here
we will come to know about the market awareness about online shopping websites.

77
6. Awareness of online shopping websites
Total Percentage of
Online shopping websites Responses Responses (%)
Flipkart 52 31.51
Snapdeal 22 13.33
OLX 11 6.67
Homeshop18 9 5.46
Ebay 18 10.90
Amazon 13 7.88
Myntra 14 8.49
Naaptol 7 4.24
Others 19 11.52
Total 165 100
Table 4.6
Analysis
From the table we can see that 52 respondents has awareness about flipkart online
shopping website out of 77 respondents who has awareness about online shopping
websites, 22 respondents know about snapdeal, OLX is known to 11 respondents and
homeshop18, Ebay, Amazon, Myntra, and Naaptol known to 9, 18, 13, 14 and 7
respondents respectively and also 19 respondents mentioned other shopping websites
viz., futurebazaar, Mginger, indiatimesshoping, inkfruit, quicker, tradus etc.,.
35 31.51
30
25
20
15 13.33
10.9 11.52
10 7.88 8.49
6.67 5.46 4.24
5
0
0

Graph 4.6
Inference
In the Graph 06 we can see flip kart is the online shopping website well know n to all
most all respondents i.e. 52 respondents have mentioned flipkart website out of 77
respondents who have awareness about online shopping websites. Snapdeal stands in
the second palce 22 respondents mentioned snapdeal and ebay being the third highest
and also we can see OLX, Myntra, Naaptol etc holding their position in the market
through this survey. Here we can understand market awareness of different e-
commerce websites.

78
7. Respondents have purchased products online in their past

Options Percentage (%)

Yes 39

No 61

Total 100

Table 4.7
Analysis
From Table 07 we will come to know that 39% of the respondents purchased different
products from various online shopping websites and 61% of the respondents have not
purchased any of the products online. And 39% respondents who have purchased
have mentioned products that

they have purchased online they are pen drive, books, jewels, mobile, shows, clothes,
wrist watch, iphone, micro oven, hard disk, laptop and movie tickets.

Sales
70
61
60

50
39 Sales
40

30

20

10

0
Yes No

Graph 4.7
Inference
From the Graph 07 study shows that 39% of the respondents purchased different
products from online shopping websites and the products have already mentioned in
analysis of table 07. With this information we can come t o conclusion that 39% of
the respondents purchased online and also mentioned electronic goods that they have
purchased such as mobile, pen drive and laptop and home appliance micro oven.

79
8. Respondents view about statement “Online marketing would take over
traditional marketing in next 10 years”

Options Percentage (%)

Strongly agree 29
Agree 51
Can't say 18
Disagree 2
Strongly disagree 0
Total 100
Table 4.8
Analysis
51% of the respondents agree to the statement online marketing would take over
traditional marketing in next 10 years, 2% disagree to the statement and 18% of the
respondents leave view that can’t be said and in which 29% of the respondents
strongly agree to the statement.

60
51
50

40
29
30

20 18

10
2 0
0
Strongly agree Agree Can't say Disagree Strongly disagree

Graph 4.8
Inference
Study shows that respondents are very optimist about the online marketing only 2% of
the respondents disagree to the statement “Online marketing would take over
traditional marketing in next 10 years” and 18% says that it can’t be said but together
80% of the respondents are optimist about the statement. This would help the study to
draw inference about perception of the respondents with respect to online marketing
against traditional marketing.

9. Easiest ways to get information about required product

Total Percentage of
Medium Responses Responses (%)

80
News paper 36 18.27
T. V. A ds 55 27.92
Internet 76 38.58
Product brochures 9 4.57
Pamphlets 6 3.05
Hoardings/ Banners 12 6.09
Other s 3 1.52
Total 197 100
Table 4.9
Analysis

Table 09 shows that internet being the easiest way to get information about required
product, 76 respondents mention internet. T.V Ads stand in second place where 55
respondents feel that it is another easiest way to get information about required
product, news paper stands in third place 36 respondents mentioned news paper.
Product brochures, pamphlets, & hoardings/banners mentioned by 9, 6 & 12
respondents respectively. 3 respondents mentioned others they are Mobile SMS i.e.
promotional messages and friends recommendation.
45
40 38.58
35
30 27.92
25
20 18.27
15
10 6.09
4.57 3.05
5 1.52
0
News paper T. V. A ds Internet Product Pamphlets Hoardings/ Other s
brochures Banners

Graph 4.9
Inference
From the Graph 09 we can conclude that internet is the easiest way to get information
about required product, 76 respondents mentioned internet. 55 mentioned T.V.Ads
and 36 mentioned news paper. Therefore posting ads of the products would be
effective way for advertising since the study shows reach is very high than any other
medium.

10. Respondents prefer to watch motion advertisement on websites

Options Percentage (%)

81
Yes 78
No 22
Total 100
Table 4.10
Analysis

From the Table 10 we can see that 78% of the respondents would prefer to watch
motion ads on websites and 22% respondents w ill not prefer.

90

80 78

70

60

50
Column1
40

30
22
20

10

0
Yes No

Graph 4.10

Inference

Survey says that 78% respondents prefer to watch motion ads on websites with this
information we can conclude that posting motion ads on websites would be effective
in order to make best advertisement strategy.

82
 CHAPTER -5

FINDINGS AND RECOMMENDATIONS

5.1 Findings
 83% of respondents browse internet at least once in a day, which
means it includes respondents browsing internet twice in a day and
respondents browse almost 24*7.
 Out of 100 respondents 89 respondents browse social networking
website facebook most often.
 37% of respondents browse internet for advertisement on their
required product when they are in need of particular
product/service.
 Only 12% of the respondents do not read promotional emails at all.
 77% of respondents have awareness of online shopping websites.
 Flipkart is online shopping website known to 52 respondents out of
100 respondents.
 39% of respondents have purchased products online in their past.
 80% of respondents have perception that online marketing will take
over traditional marketing in next 10 years.
 Out of 100 respondents 76 respondents feel that internet is the
easiest way to get information about required product.
 78% of respondents prefer to watch motion advertisement on
websites on their required product/service in order to get complete
information.
 63% of respondents agree to the statement “Internet advertisement
is more effective than conventional advertisement”.
 98% of respondents search for information on their required
product over internet.
83
5.2 Recommendations
· It is recommended that company should post advertisements over
internet on various websites since the reach is high to the internet
users.
· Company should establish e-commerce business arm since the
awareness of online shopping in the internet users is high which
has been found by the study.
· Video advertisements of reliance digital can be shared on social
networking websites and also on other websites by giving the URL
link from YouTube.
· Sufficient man power has to be recruited for all departments and
respective sections of the department.
· Proper Inventory management should be implemented in the
organization in order to have effective inventory control.
· ResQ and CRM team has to be trained on the concept “service with
smile”.
· Background music played in the store has to be soft music and the
odd filmy songs shouldn’t be played in the store.
· Employees should be given the Retail industry latest trends and
product knowledge.
· ResQ team should be monitored well in the performance of their
duties and responsibilities.

84
 CHAPTER -6
CONCLUSION & SUGGESTION

6.1 Conclusion
From the study we can draw conclusion that reliance digital can establish
e-commerce business arm to make available all electronic and durable
goods easily to the existing and potential customers. Study clearly shows
that there is huge scope for e-commerce in the current scenario, people
are aware of online shopping and also most of them prefer online
shopping since it saves time and is more convenient to buy by making
comparison with various other available products over internet, hence it is
necessary to have internet advertisement strategies to the company when
it has a plan to establish e-commerce arm. Posting the advertisements
over internet on various websites would have high reach to the internet
users and would create awareness about online shopping option. In order
to have greater reach to all the internet users company can post
advertisements on social networking websites, and also other various
website where people browse most often such as yahoo, rediffmail,
hotmail, youtube etc., and in the social networking websites, facebook
has the greater stake in the market. Most of the internet users have
facebook account and other social networking websites such as twitter,
linkedin etc., also have the potential to reach internet users. Therefore
posting advertisement about products and services of the company on
social networking website will have impact on reaching online shopping
option provided by the company.

85
6.2 Suggestion
· It is suggested that company should post advertisements on all
social networking websites.
· Company should send promotional emails to the existing and
potential customers on regular intervals.
· It is suggested to provide complete information about all available
products on the company website.
· It is suggested that company should conduct Soft skills training to
the employees by expert soft skill trainers.
· It is suggested to increase the customer attention and understand
the actual need of the same.
· Operating costs seems to be very high it is suggested to reduce the
cost through switching off few Lights and Display Televisions
when there are no walk-ins of customers into store.
· During peak hours of business it is suggested to implement waiting
line strategies at the billing counter.
· Employees should be trained on service quality and service quality
delivery to the customers.
· Service quality has to be delivered along with the product delivery
to the customers.
· It is suggested to establish e-commerce channel soon and should be
implemented proper internet advertisement stratetegies.

86
 ANNEXURE
Questionnaire

1) Please fill personal details.

a. Name:
b. Gender:
c. Age:
d. Contact No.:

2) Do you use internet?

a) Yes b) No

3) If Yes, how often you use internet?

a) Once in a day b) Twice in a day
c) Once in two days d) once in a week
e) Almost 24*7

4) Name the websites that you browse often…

Sr. No. Websites

5) Do you browse internet for any advertisement?

a) Yes b) No

6) If Yes, Kindly write the reasons to browse advertisement

a) ___________________________________________
b) ___________________________________________
c) ___________________________________________
d) ___________________________________________

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7) I read all promotional Emails of my Inbox.
a) Always
b) Sometimes
c) Often
d) Seldom
e) Hardly
f) Not at all

8) Are you aware of online shopping websites?

a) Yes b) No

9) If Yes, Name the websites that you aware of

Sr. No. Websites

10) Have you ever purchased online?

a) Yes b) No

*******Thank You*******

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 BIBLIOGRAPHY/REFERENCES

Books
1. David J. Luck and Ronald S. Rubin, Marketing Research (7th Ed;
New Delhi: Prentice Hall of India Pvt. Ltd, 2001)
2. G. C. Beri, Marketing Research (3rd Ed; New Delhi: Tata McGraw
Hill Publishing Co. Ltd, 2000)
3. Philip Kotler, Kevin Lane Keller, Pearson, Principles Of
Marketing-,(12th Edition,2006Phi)
4. Advertising and Integrated Brand Promotion, O’Guinn, Allen,
Semenik, 4/e, Thomson, 2017
5. Integrated Advertising, Promotion, and Marketing
Communications, Clow, Baack, 3/e, Pearson Education, 2017
6. Roger D. Blackwell, Paul W. Miniard And James F. Engel,
Consumer Behaviour (9th Ed; New Delhi: Vikas Publishing House
Pvt. Ltd.)

Websites
· www.ril.com
· www.reliancedigital.in
· www.indiaretailing.com
· www.indiaretailforum.in
· www.wikipedia.org
· www.adcracker.com

Others
· Reliance Digital Employees Induction Kit.
· Reliance Digital Products Brochure.

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