A STUDY ON THE CORRELATION BETWEEN SAMSUNG

MOBILE USER AND NON-TECH SAVY YOUTH IN THE

REGION OF KOLKATA

VIDYASAGAR
UNIVERSITY

Reported Submitted by

Name: Anindya Dutta

Roll No: 1234/ABCD

Institute : Bengal Institute of Business Studies
Registration No. VU/1234-THAK-KIT42
Company Name: Samsung Electronics
Industry Mentor : Mr. Shyamalnath Bakshi
This Project is Submitted For the Partial Fulfilment Of Masters Of Business
Administration From Vidyasagar University

1
 PREFACE
Keeping in view the need of submitting project report for the MBA course this
project report has been prepared. The topic of this project report is “A STUDY
ON HORECA SEGMENT CUSTOMER BASE OF JIO
MART The project report all collection and facts are collected by my self during
my MBA course. Sales promotion of a firm contribute up to a great extent in its
success in today’s era. The main concern of my study is to have knowledge and an
idea about sales promotion of Zomato in online foods ordering industry. The whole
report is divided in several parts to deal with topic in a proper way. My job gave
me a chance to have some of the practical experience and my research also gave me
many practical and theoretical knowledge which I am getting in MBA.

2
 DECLARATION

I declare that this written submission represents my ideas in my own words and
where others' ideas or words have been included, I have adequately cited and
referenced the original sources. I also declare that I have adhered to all principles of
academic honesty and integrity and have not misrepresented or fabricated or
falsified any idea / data / fact / source in my submission. I understand that any
violation of the above will be cause for disciplinary action by the Institute and can
also evoke penal action from the sources which have thus not been properly cited or
from whom proper permission has not been taken when needed.

Place:
Date: Signature of the Student
(Soutik Mallick)

3
 CERTIFICATE

TO WHOM EVER IT MAY CONCERN

This is to certify that Soutik Mallick (Regn. No -PG/VUOAPO1/MBA-IS/211) is a

bonafied of this college has completed his dissertation as per guidance.He has done
this completely on his own and it is an original work not copied from any source.

Thank you.
Yours truly,

Assistant professor
Bengal Institute of Business Studies

4
 ACKNOWLEDGEMENT

It is a matter of great pleasure for me in submitting the project report on A

STUDY ON
HORECA SEGMENT CUSTOMER BASE OF JIO MART
for the fulfillment of the requirement of my course MBA under Vidyasagar University.

I am thankful to and owe a deep debt gratitude to all those who have helped me in preparing this
report. Words seem to be inadequate to express my sincere thanks to Professor Tanumay Das for his
valuable guidance, constructive criticism, untiring efforts and immense encouragement during the
entire course of the study due to which my efforts have been rewarded.

I am highly obliged to those who had help me to procure primary data to complete my project.

I want to thank all who have supported me and gave their timely guidance. Last but not the least I
am very grateful to all friends who helped me in one-way or other

5
TABLE OF CONTENTS

6
7
 Introduction
Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to
the entry of several new players. It accounts for over 10% of the country’s gross domestic
product (GDP) and around eight% of the employment. India is the world’s fifth-largest global
destination in the retail space.

India ranked 73 in the United Nations Conference on Trade and Development's Business-to-
Consumer (B2C) E-commerce Index 2019. India is the world’s fifth-largest global destination in
the retail space and ranked 63 in World Bank’s Doing Business 2020.

India is the world’s fifth-largest global destination in the retail space. In FDI Confidence Index,
India ranked 16 (after US, Canada, Germany, United Kingdom, China, Japan, France,
Australia, Switzerland, and Italy).

8
 History & Growth of Retail Industry

Growth over 1997–2010

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 2010, 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 2010, 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 restraint inhibiting better participation was that India required single 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 organised 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 organised 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 2010, 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 realise only 1/3rd of the total price paid by the final Indian consumer,
as against 2/3rd by farmers in nations with a higher share of organised retail. [22] The 60%+ margins for
middlemen and traditional retail shops have limited growth and prevented innovation in Indian retail
industry.
India has had years of debate and discussions on the risks and prudence of allowing innovation and
competition within its retail industry.] Numerous economists repeatedly recommended to the Government
of India that legal restrictions on organised retail must be removed, and the retail industry in India must
be opened to competition. For example, in an invited address to the Indian parliament in December
2010, Jagdish Bhagwati, Professor of Economics and Law at the Columbia University analysed the
relationship between growth and poverty reduction, then urged the Indian parliament to extend economic
reforms by freeing up of the retail sector, further liberalisation of trade in all sectors, and introducing
labour market reforms. Such reforms Professor Bhagwati argued will accelerate economic growth and
make a sustainable difference in the life of India's poorest.
A 2007 report noted that an increasing number of people in India are turning to the services sector for
employment due to the relative low compensation offered by the traditional agriculture and
manufacturing sectors. The organised retail market is growing at 35 percent annually while growth of
unorganised retail sector is pegged at 6 percent.

9
The Retail Business in India is currently at the point of inflection. As of 2008, rapid change with
investments to the tune of US$25 billion were being planned by several Indian and multinational
companies in the next 5 years. It is a huge industry in terms of size and according to India Brand Equity
Foundation (IBEF), it is valued at about US$395.96 billion. Organised retail is expected to garner about
16-18 percent of the total retail market (US$65–75 billion) in the next 5 years.
India has topped the A.T. Kearney’s annual Global Retail Development Index (GRDI) for the third
consecutive year, maintaining its position as the most attractive market for retail investment. The Indian
economy has registered a growth of 8% for 2007. The predictions for 2008 is 7.9%. The enormous
growth of the retail industry has created a huge demand for real estate. Property developers are creating
retail real estate at an aggressive pace and by 2010, 300 malls are estimated to be operational in the
country.

Growth after 2011

Before 2011, India had prevented innovation and organised 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 unorganised retail, in a nation where
malnutrition remains a serious problem, food wastage is rife. Well over 30% of food staples and
perishable goods produced in India spoil because of poor infrastructure and small retail outlets prevent
hygienic storage and movement of the goods from the farmer to the consumer.,
One report estimates the 2011 Indian retail market as generating sales of about $470 billion a year, of
which a minuscule $27 billion comes from organised retail such as supermarkets, chain stores with
centralised 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 organised 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 2009 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
$850 billion by 2020. The projected increase alone is equivalent to the current retail market size of
France.
In 2011, food accounted for 70% of Indian retail, but was under-represented by organised retail. A.T.
Kearney estimates India's organised retail had a 31% share in clothing and apparel, while the home
supplies retail was growing between 20% to 30% per year. These data correspond to retail prospects
prior to November announcement of the retail reform.
It might be true that India has the largest number of shops per inhabitant. However, there are detailed
figures for Belgium, the Netherlands and Luxemburg. In Belgium, the number of outlets is approximately
8 per 1,000 and in the Netherlands it is 6. So the Indian number must be far higher.

Indian retail market

A spice market

10
Checkout lanes, organised retail in Malad, Mumbai
Modern retail format
Modern Retail
Country
(in 2011, % of total)[39]

 India 7%

 China 20%

 Thailand 40%

 United States 85%

Indian market has high complexities in terms of a wide geographic spread and distinct consumer
preferences varying by each region necessitating a need for localization even within the geographic
zones. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at
2 sq ft (0.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the
world. 1.8 million households in India have an annual income of over ₹4.5 million (US$59,055.50).
The organised retail market has a share of 8% as per 2012. 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: Geographically dispersed population, small ticket sizes, complex distribution
network, little use of IT systems, limitations of mass media and existence of counterfeit goods.
A number of merger and acquisitions have begun in Indian retail market. PWC estimates the multi-brand
retail market to grow to $220 billion by 2020.

11
 Different Types of Retail
Stores in Today’s Marketing
World

If you compare the retail scenario now to that of the early 80s and 90s, you will notice a
considerable difference in the type of retail stores that exist. One of the main reasons for
this change is the rise of the marketing era. Retailers began to realize that giving customers
differential experiences and offerings is a great way to increase profits This gave rise to
different types of retail establishments that we see today that depend on the consumers’
behavior and manufacturers’ abilities. Each of them differentiates themselves from the rest
based on the products they offer and the manner in which it is offered

What is a Retail Store?

A retail store is a business enterprise that sells goods directly to ultimate consumers for non-business
use. The goods are generally sold at marked-up prices. There are different types of retail stores that
cater to different consumer types and employ different sales techniques.
Retail Mechanism – How does Retail Work?
The first step in the retail mechanism is constituted by the manufacturers. The manufacturers
produce goods from raw materials with the help of tools, processes, and labor. On completion of the
production of goods, they are sold to wholesalers. Wholesalers sell goods in large quantities to
12
retailers at low prices. Retailers have the option of purchasing the goods from wholesalers or directly
from the manufacturers. The retailers then sell these goods to the end consumers at marked-up
prices.

Types of Retail Stores

1. Department Stores
This type of retail outlet is one of the most complex types of establishments that offer a wide range
of products. It can be compared to a collection of smaller retail stores managed by one company.
Department stores are well-known for offering products at different pricing levels and for the variety
of products that they offer. Some of the common examples of department stores include Macy’s,
Shoppers Stop, and Kohl’s
.
2. Specialty Stores
Specialty stores are retail establishments that focus on one or two specific categories of products.
They are known for having a very narrow product line. A characteristic trait of customers of
specialty stores is that they are generally less price-driven. These outlets specialize in a given type of
merchandise like men’s clothing, children’s clothing, and sporting goods.

3. Supermarkets
Supermarkets are one of the most common types of retail outlets. They are large, departmentalized,
self-service stores that specialize in food and some non-food items. FMCG products are the main
focus in such stores when compared to consumer durables. The product assortment is given great
importance in supermarkets as the products need to be displayed in a manner such that customers get
attracted to them, and they sell faster.

4. Convenience Stores
Usually located in residential areas, convenience stores offer a limited range of products at premium
prices due to the added value of convenience. They are generally small establishments that
have limited depth in their product line. Such outlets are known for giving super-fast service with a
focused approach.

13
5. Discount Stores

As the name clearly suggests, discount stores give considerable discounts on the products that they
sell. Discount stores compete on the basis of low prices, high turnover, and high volume. One of the
best examples of this type of retail format is Walmart whose tagline boasts of saving money.

6. Hypermarkets or Super Stores

Hypermarkets are one step ahead of supermarkets. These stores are huge in size and have many
different categories under their belt. These stores are generally not found in malls, rather they are the
size of malls themselves. Popular examples of this format of stores are Tesco, Asda, and Costco.

7. Warehouse Stores
A retail store that sells limited stock in bulk at discounted rates is called a warehouse store.
Warehouse stores do invest heavily in visual merchandising and rely on lower prices attracting
customers instead.

8. E-Commerce Stores
Virtual stores that enable customers to shop from anywhere at any time are called e-commerce
stores. The order is placed through the store’s online portal, and products are delivered to the
customer’s given address.

9. Dollar Stores
Dollar stores are a type of discount store. They offer products at meager rates. The only difference is
that their prices are fixed.

10. Drug Stores

Drug stores are specialized stores that sell medicines. The newer drug stores though often sell many
other things apart from pharmaceuticals, forming their own niche of specialized stores.

14
Summary
Today’s retail world is changing more rapidly than ever before. The new generation of customers
prefers digital shopping over offline. While a greater percentage of retailers have only offline
presence today, the future of retail is a combination of offline and online. The global coronavirus
pandemic has accelerated this paradigm shift, pushing retailers to rapidly adopt new technologies,
develop digital platforms, implement digital modes of payment, and more.

Challenges
A McKinsey study claims retail productivity in India is very low compared to international peer measures.
For example, the labour productivity in Indian retail was just 6% of the labour productivity in United
States in 2010. India's labour productivity in food retailing is about 5% compared to Brazil's 14%; while
India's labour productivity in non-food retailing is about 8% compared to Poland's 25%.
Total retail employment in India, both organised and unorganised, account for about 6% of Indian labour
work force currently - most of which is unorganised. This about a third of levels in United States and
Europe; and about half of levels in other emerging economies. A complete expansion of retail sector to
levels and productivity similar to other emerging economies and developed economies such as the
United States would create over 50 million jobs in India. Training and development of labour and
management for higher retail productivity is expected to be a challenge.

India retail reforms

Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand Indian retail,
forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets,
to sell multiple products from different brands directly to Indian consumers..
The government of Manmohan Singh, prime minister, announced on 24 November 2011 the following:

 India will allow foreign groups to own up to 51 per cent in "multi-brand retailers", as supermarkets
are known in India, in the most radical pro-liberalisation reform passed by an Indian cabinet in years;
 single brand retailers, such as Apple and Ikea, can own 100 percent of their Indian stores, up from
the previous cap of 51 percent;
 both multi-brand and single brand stores in India will have to source nearly a third of their goods
from small and medium-sized Indian suppliers;
 all multi-brand and single brand stores in India must confine their operations to 53-odd cities with a
population over one million, out of some 7935 towns and cities in India. It is expected that these
stores will now have full access to over 200 million urban consumers in India;
 multi-brand retailers must have a minimum investment of US$100 million with at least half of the
amount invested in back end infrastructure, including cold chains, refrigeration, transportation,
packing, sorting and processing to considerably reduce the post harvest losses and bring
remunerative prices to farmers;
 the opening of retail competition will be within India's federal structure of government. In other
words, the policy is an enabling legal framework for India. The states of India have the prerogative to
accept it and implement it, or they can decide to not implement it if they so choose. Actual
implementation of policy will be within the parameters of state laws and regulations.

15
The opening of retail industry to global competition is expected to spur a retail rush to India. It has the
potential to transform not only the retailing landscape but also the nation's ailing infrastructure.,
A Wall Street Journal article claims that fresh investments in Indian organised retail will generate 10
million new jobs between 2012 and 2014, and about five to six million of them in logistics alone; even
though the retail market is being opened to just 53 cities out of about 8000 towns and cities in India.

Indian retail reforms on hold

According to Bloomberg, on 3 December 2011, the Chief Minister of the Indian state of West Bengal,
Mamata Banerjee, who is against the policy and whose Trinamool Congress brings 19 votes to the ruling
Congress party-led coalition, claimed that India's government may put the FDI retail reforms on hold until
it reaches consensus within the ruling coalition. Reuters reports that this risked a possible dilution of the
policy rather than a change of heart.,
Several newspapers claimed on 6 December 2011 that India parliament is expected to shelve retail
reforms while the ruling Congress party seeks consensus from the opposition and the Congress party's
own coalition partners. Suspension of retail reforms on 7 December 2011 would be, the reports claimed,
an embarrassing defeat for the Indian government, suggesting it is weak and ineffective in implementing
its ideas.[
Anand Sharma, India's Commerce and Industry Minister, after a meeting of all political parties on 7
December 2011 said, "The decision to allow foreign direct investment in retail is suspended till
consensus is reached with all stakeholders."[
On 19 Feb 2013 Tamil Nadu became the first state in the country to stoutly resist MNC 'invasion' into the
domestic retail sector. In Chennai, Tamil Nadu CMDA authorities placed a seal on the massive
warehouse spreading across 7 acres that had reportedly been built for one of the world's leading
multinational retail giants, Wal-mart.
In February 2014, Vasundhara Raje led newly elected Rajasthan Government reversed the earlier
Government's decision of allowing FDI in retail in the state. It reasoned that the sources of domestic
retail are primarily local whereas international retail affects domestic manufacturing activity and hence
reduces employment opportunities.

Single-brand retail reforms approved

On 11 January 2012, India approved increased competition and innovation in single-brand retail. [55]
The reform seeks to attract investments in operations and marketing, improve the availability of goods
for the consumer, encourage increased sourcing of goods from India, and enhance competitiveness of
Indian enterprises through access to global designs, technologies and management practices. In this
announcement, India requires single-brand retailer, with greater than 51% foreign ownership, to source
at least 30% of the value of products from Indian small industries, village and cottage industries, artisans
and craftsmen.
Mikael Ohlsson, chief executive of IKEA, announced IKEA is postponing its plan to open stores in India.
He claimed that IKEA's decision reflects India's requirements that single-brand retailers such as IKEA
source 30 percent of their goods from local small and medium-sized companies. This was an obstacle to
IKEA's investment in India, and that it will take IKEA some time to source goods and develop reliable
supply chains inside India. Ikea announced that it plans to double what it sources from India already for
its global product range, to over $1 billion a year, within three years. IKEA in the near term, plans to
focus expansion instead in China and Russia, where such restrictions do not exist.
On 19 Feb 2013 Tamil Nadu became the first state in the country to stoutly resist MNC 'invasion' into the
domestic retail sector. In Chennai, Tamil Nadu CMDA authorities placed a seal on the massive
warehouse spreading across 7 acres that had reportedly been built for one of the world's leading
multinational retail giants, Wal-mart.
Slowly and gradually the domestic retail players like Future Retail, Avenues Supermarket and Aditya
Birla Fashion and Retail started flourishing and brought about a massive change in the retail

16
environment in India. These local retailers have been challenging the MNCs trying to foray into the
country like Walmart, Carrefour, etc. and making the invasion even more difficult for them.
On 28 August 2019, Indian union cabinet approved proposals to ease local sourcing norms as
applicable to SBRT.

+\
4

Advantages And Disadvantages Of Retailers

What Is Retailing ?

Retailers purchase goods or services from wholesalers or suppliers and sell to the
consumers.They are known as the link between suppliers and final consumers. So,
retailing is an act of obtaining products from wholesalers and selling to the ultimate
users. There are several benefits as well as some limitations of retailing which are
discussed in this post.

Benefits Or Advantages Of Retailers

The main advantages of retailers can be described as follows:

1. Less Capital Requirement

It does not require huge investment to start retail business. Retailers buy goods from
wholesalers in small quantity and sell to ultimate customers. It does not need large space
to store goods. So, retailing can be commenced with little investment.

17
2. More Profit Margin

There is fixed margin of profit for wholesalers. Generally they earn 3% to 8%  profit on
sale. But there is no fixed margin for retailers, shopkeepers may fix profit margin up to
20% in some cases. 

3. Credit Facility

Another benefit of retailers is that they get credit facility from wholesalers or dealers. But
they sell products on cash which helps to maintain adequate liquidity in the business.

4. Better Customer Relation

Retailing is directly linked with the customers. Retailers can understand the interests,
preferences and buying behavior of customers. It helps to build better customer relation
and loyalty.

5. No Liability

In case of faulty or defective products, the manufacturer should replace the

product. So, retailers do not need to bear the loss.
Drawbacks Or Disadvantages Of Retailers

The main disadvantages of retailers can be described as follows:

1. High Marketing Cost

Retailers should make investment in decoration of shop and display of goods to attract
more customers. So, it requires more marketing or advertising cost than wholesalers.
2. Selling Skill Required

It requires good selling skill to attract customers. Retailers should possess the art of good
communication and convincing power to influence consumers. 

3. Very High Competition

18
Another disadvantage of retailing is that there is tough competition in the market because
several retailers sell similar types of products. So, it is difficult to remain in the
competitive environment.

4. No Economies Of Buying

Retailers buy small volume of products from wholesalers. So, they miss the opportunity
to enjoy he benefit of economies of buying.

5. It Requires Proper Location

It is difficult to find out proper location to start retail store. It requires highly dense area
with fewer competitors.

Pros And Cons Of Retailers In Short

Pros:
- Retailing business can be started with less investment and less space
- Retailers can enjoy more profit margin
- Retailers can get trade credit facility from suppliers which increases the liquidity in the
business
- There will be no liability towards the buyers
- It helps to increase customer relation and loyalty

Cons:
- It consumes high marketing expenses
- Retailers have to face high competition in the market
- There will be no economies of buying
- It requires better selling and marketing skills to run retail business

19
20
 COMPANY PROFILE
INTRODUCTION

What is
good for
India is
suitable
for

Reliance. Every action and ambition is shaped on this strong fundamental belief by

Reliance Industries Limited, a Fortune 500 company and the largest private-sector
corporation in India. Reliance Retail is now embarking on a journey to transform
traditional retail through its JioMart Digital Commerce Platform.

JioMart, also known as DESH KI NAYI DUKAAN, is Reliance Retail’s new e-

commerce initiative that was launched in 2020 with an aim to integrate digital and
physical retail stores to help Indian consumers with unlimited choices, superior value
proposition, and unmatched shopping experience by digitally enabling and
empowering merchant partners.
JioMart is leading the digital transformation of Reliance Indstries along with
platforms like JioMeet, JioHaptik, JioPOSlite, JioGames, JioUPI and JioHealthHub,
which were key enablers of work from home, learn from home, health from home and
shop from home during the COVID-19 crisis

Reliance Retail and WhatsApp have entered into a commercial partnership agreement
to further accelerate Reliance Retail’s Digital Commerce business on the JioMart
platform using WhatsApp and to support small businesses on WhatsApp.

21
The entire ecosystem works closely to ensure that customers can access the nearest
Kirana stores that can provide products and services to the homes by seamless
transaction with Jiomart using WhatsApp. The JioMart platform is scaling high with
more active users, more traffic, and more orders.

ABOUT

JioMart is an Indian e-commerce company, headquartered in Navi Mumbai,

Maharashtra, India, that started as a joint venture between Reliance Retail and Jio
Platforms. The company initially focused on online groceries sales before expanding
into other product categories such as fashion, home essentials, and lifestyle products.

The platform was soft-launched in December 2019. A pilot was initially launched in
select areas of Navi Mumbai, Thane and Kalyan in April 2020.In May 2020, JioMart
was fully launched in 200 cities and towns across India. Within only a few days of its
launch, the JioMart app surpassed one million downloads.
In October 2020, JioMart signed an agreement with Infibeam Avenues. Under this
deal, Jio will use Infibeam's solutions to power its e-commerce and digital payments
services.

22
 Unique Value Proposition of JioMart

RIL offers local merchants and kiranas an O2O (online-to-offline) marketplace

through jiomart, wherein local vendors and small Kirana stores will take orders
through whatsapp and the order will be delivered within 24 hours to the customers.
Currently, Reliance Retail stores are delivering the orders on the jiomart, but it is
working on a hybrid model whereby its retail stores, as well as local Kirana stores,
will be included for order fulfillment for quicker delivery.

The jiomart also works as a traditional e-commerce website where a user places an
online order through the website or app, and the product is delivered in a specified
time period.

Jiomart is building a robust tech platform by uniting a trio of KIRANAS,

CUSTOMERS, and PRODUCERS. Jiomart business model focuses on providing
omni-channel experience to consumers who can place orders through alternative ways
including Whatsapp which will be served by merchant partners.
23
Jiomart is aimed at changing the entire customer journey in ways that even consumers
who are not comfortable with digital channels become comfortable with jiomart.
Jiomart acts as a centralised procurement and delivery platform between
manufacturers and merchant partners.

JIOMART BUSINESS MODEL

Kirana
Delight
Model

With
the

philosophy “CUSTOMER AAPKA, SUPPORT HAMARA”, JioMart enables

digitisation of merchants through Jio PoS at the backend and JioMart app at the
frontend. These not so digital savvy merchants are empowered to stay connected and
transact with their customers.
This partnership model helps Kiranas grow its business and earnings by addressing
limited product range, space, and delivery challenges.

Another unique solution provided by JioMart is transforming existing Kirana Stores in

24
less than 48 hours into refreshed self-serviced stores, thereby transforming the
customer’s entire shopping experience. 

Customer Delight

JioMart allows its users to choose from more than 50,000 products, including fresh
fruits and vegetables, groceries and snacks, beverages, home & household essentials,
beauty and hygiene and baby care, fashion wear, medicines, jewelry from your
favorite brands – Good Life, Cadbury, Aashirvaad, Cadbury, Daawat, Tata, Saffola,
Amul, Everest, Haldiram, Britannia, McCain, Real, Dabur, Kellogg’s, Weikfield,
Heritage, Nestle, Himalaya, Johnson & Johnson and many more.Customers can access
JioMart through website, native apps on Android and iOS, with full
integration into MyJio. The platform has expanded into selling apparels and
electronics in some parts of the country. JioMart has scaled up rapidly, with more
traffic, active users and orders. Kirana partnerships are being expanded, reaching over
33 cities by the end of March 2021.

BEST FEATURES
 Free Home Delivery
 No minimum order
 Great Value & Attractive prices. Save more for a day and save for 365 days a
year
 Easy to use platform with voice integration and barcode scanner

Producer Delight

While continuing to grow its organised retail platform, Reliance Retail is working to
integrate producers/manufacturers, supply chain, small merchants and consumers in a
seamless digital ecosystem that will benefit all elements of the retail chain.

Over the years, Reliance Retail has made excellent investments in developing its end-to-
end value chain, which is backwardly integrated for fresh foods enabling quality of a
product, supply security, and sourcing efficiencies. This has resulted in win-win
partnerships with their producers.Through the JioMart platform, producers are linked
with small kiranas and consumers to create a win-win model for the whole ecosystem by
benefitting local kiranas from competitive pricing and warehousing strategies on one side
and benefitting customers to get their essentials from a variety of products at a click.

There are competitive strengths of JioMart’s business model that are creating this
rewarding model for everyone.

25
  Robust Value Chain system of collection, processing, and distribution centers
across India
 High scale of digital commerce channels and stores network
 Wide and a strong portfolio of its brands across staples, consumer products,
and general merchandise
 Hyperlocal digital strategy to serve its customers and merchant partners
 Leveraged retail partnerships for new brand launches, promotions, and
activations

Acquisition Strategy of Reliance to provide support to

JioMart’s business model
RIL expanded its business under strategic partnerships with merchants across the
country under its model of JioMart. By the end of the financial year 2021, the digital
commerce and merchant partnerships business accounted for about 10% of revenues,
significantly stepped up from near zero in the preceding year. Reliance Retail invested
in a range of acquisitions to strengthen its capabilities in the supply chain, technology,
and product portfolio. Here’s a list of a few:

 NetMeds – With an investment of INR 620 cr, the addition of Netmeds

will enhance the company’s ability to provide health care products and
services at best price and quality alongwith expanding its digital commerce
proposition to include daily essentials.
 Hamleys – This British toy retailer was acquired for about INR 620 cr in
an all cash deal. This acquisition will give a global footprint to the group
with its network of 167 stores across 18 countries.
 Urban Ladder – With a purchase of this online home décor company for
INR 182.12 cr, this acquisition shall widen the bouquet of consumer
products offerings increasing the customer engagement and services across
its retail offerings.
 Zivame – Acquiring 15% stake, it will broaden its customer base focused
to women having 30+ retail stores and a presence in more than 800 partner
stores across the country.
 Future Group – Accquiring the Retail & Wholesale Business and the
Logistics & Warehousing Business from the Future Group for lumpsum
aggregate consideration of INR 24,713 crore makes a strong strategic fit
into Reliance retail business accelerating the competitiveness of small
merchants.
 Just Dial – With acquisition of controlling stake for a consideration
of INR 5710 crores will help to boost the digital ecosystem for merchant
26
 partners with Just Dial’s existing database of ~30.4 million listings and its
existing consumer traffic of ~ 129.1 million quarterly unique users (as on
31 Mar 2021)
 FYND – Acquisition of majority stake for INR 295 crores, will help to
ramp up the sales of offline retailers by directly selling through its offline
stores and also enables them to connect with Amazon India & Flipkart.

India’s digital revolution is a key enabler of JioMart’s

growth

Since the last few years, India’s online grocery market is continuously rising due to
increased smartphone users, consumer awareness, and increased disposable income. Not
in just tech-savvy Tier -1 but JioMart also continues to gain traction across regions with
Tier II and Tier III cities contributing over half of the orders.

Also, a broad base of India’s population is working, preferring online grocery shopping
over traditional shopping of waiting in a queue and hence booming the e-commerce
market. In addition, there are also advantages associated with the country’s online
grocery market like the vast variety of products, pricing advantages, delivery at home
with just a few clicks from their device are adding more fuel to its growth.

But there are many seasoned players for online grocery stores apart from Jiomart –
Bigbasket, Grofers, D-mart ready, and many more. All players have put in millions of
dollars to get on the surface. All have adopted diversified strategies with cut-throat
competition not only to survive but also thrive.

27
To get a bird view of pricing and discounts of major players, let’s take a sneak peek: –

With the
increase in digital literacy and the Indian government promoting digitalization, the online
grocery market will gain momentum. Due to the Covid-19 outbreak, online grocery
shopping is more perceived as the convenient option for shopping and the safest due to
features of contactless delivery following the social distancing norms.

The NEW NORMAL has impelled every sector to accept and embrace the practical ways
28
that are hygiene and safe. The online grocery platform is also getting in motion due to
high internet penetration with competitive data tariffs and affordable smartphones. The
digital payment system is adding a feather to this growth.

Thus, factors like smart shopping, time-saving and convenience, and safety measures
make online grocery shopping the BEST choice for consumers and JioMart with its
inclusive business model is a top contender of that choice.

RESEARCH METHODOLOGY
29
1. Defining the problem and deciding research Objective:

1.To get various information about JioMart HORECA Customers.

2.To assess the effectiveness of functioning of JioMart and judge them in comparison to it’s
rivals.

2. Develop the Research plan:

A plan was developed how to collect the required information i.e. whom to contact
for gathering the relevant data. Data is the foundation of all research .It is the raw material
for any research functions. Therefore, it requires great care to select the sources of data. Data
or facts may be obtained from several sources. Data sources can either be primary or
secondary.

A. Primary data:
Collection of primary data was conducted by asking questions to
respondents for the preparation of the thesis report.
 Personal Interview
 Questionnaire.

B. Secondary data:
The sources from which secondary data was collected:
• Press releases of the company.
• Book, Magazines and Newspaper.
• Newsletters and in-house journals.
• Websites such as: www.zomato.com,
www.google.com, www.wikipedia.com,

3. Contact Method:
At first I directly met the customers & introduced myself as a MBA student & then collected the
data required for my project work such as Name of person, Address, Contact person, Contact
number,types of product ordered, frequency order etc.

30
4.Information collection:

The primary information was collected by face-to-face and direct interview with the customers.
They are provided with the relevant information regarding the profile of the company. The
secondary sources of information were various websites of the company, newspapers & magazines
such as education times and times of India etc

5.Data analyzing:
The data collected was carefully analyzed.

6.Reporting and conclusions and recommendations:

This is the most vital part of the work undertaken. After collection and analysis of data, it was
recorded in form as prescribed. The major part of the report is the findings also include charts and
diagram etc, and the report also mentions the limitations of the project undertaken. The conclusions
have been drawn out of the findings and various recommendations have been given in the end of the
report.

Ordering from jiomart

31
 Reaction towards outlet marketing activity by Cadbury
70
58
60

50

40

30 42

20

10

0
Yes Not satisfied

No of Shops

Not ordering from jiomart

32
 Reaction towards outlet marketing activity by Cadbury
50
43
45
40
35
39
30
25
20 11
15
10 7

5
0
Less profit magin Poor app service Poor delivery Low availability

No of Shops

Frequency of ordering

33
 Reaction towards outlet marketing activity by Cadbury
90
78
80

70

60

50

40

30 14
2
20
6
10

0
Once a week Once a month Twice a month As per need

No of Shops

Sales person visit

34
 Reaction towards outlet marketing activity by Cadbury
90
84
80

70

60

50

40

30
6
20 10
10

0
Highly satisfied Satisfied Dissatisfied

No of Shops

35
 delivery

Reaction towards outlet marketing activity by Cadbury

60

50

40 48

4 31
30

20
17

10

0
Highly satisfied Satisfied Neutral Dissatisfied

No of Shops

36
 Availability

Reaction towards outlet marketing activity by Cadbury

50
45
40
35 43
39
30 7
25
20
15
9
10
5
0
Highly satisfied Satisfied Neutral Dissatisfied

No of Shops

37
 Offers

Reaction towards outlet marketing activity by Cadbury

50
45
40
47
35
30 9 33
25
20
15
11
10
5
0
Highly satisfied Satisfied Neutral Dissatisfied

No of Shops

38
 Damage products

Reaction towards outlet marketing activity by Cadbury

100
91
90
80
70
60
50
40
30 4
0
20 5
10
0
On spot Weekly Monthly Never

No of Shops

39
 Do you receive schemes from jiomart

Reaction towards outlet marketing activity by Cadbury

90

80

70

60
16 84
50

40

30

20

10

0
Yes No

No of Shops

40
 Main products ordered

Reaction towards outlet marketing activity by Cadbury

35 33
30

25

20 29 21

15 11

10

5
6
0
Cold Drinks Refined Oil Rice Wheat Other grocery items

No of Shops

Other online portals

41
 Reaction towards outlet marketing activity by Cadbury
45
39
40

35

30

25
19 21
20

15
13
10

5
6
0
Udaan Big basket Grofers Go billion Zomato hyper

No of Shops

Reason for ordering from other sites

42
 Reaction towards outlet marketing activity by Cadbury
50
43
45
40
35
30
25
31
20 16
10
15
10
5
0
Better profit margin More availability Better delivery Better price and offers

No of Shops

Satisfaction with product quality

43
 Reaction towards outlet marketing activity by Cadbury
100
91
90
80
70
60
50
40
30
1
20 7
10
0
Highly satisfied Satisfied Dissatisfied

No of Shops

44
 New products

Reaction towards outlet marketing activity by Cadbury

100
90
80
70
60 14 86
50
40
30
20
10
0
Yes No

No of Shops

45
 Reason for nonawareness

Reaction towards outlet marketing activity by Cadbury

80

70

60
27
50 73
40

30

20

10

0
Poor advertisement Lack of communication

No of Shops

46
 General order valur

Reaction towards outlet marketing activity by Cadbury

60
48
50

40

30 31

20 19

10

0
Upto Rs 2500 Upto Rs 5000 Above Rs 5000

No of Shops

47
 Frequency of schemes

Reaction towards outlet marketing activity by Cadbury

90
81
80

70

60

50

40

30
17 2
20

10

0
Very often Sometimes Very rare

No of Shops

Most hyped product

48
 Reaction towards outlet marketing activity by Cadbury
90

80

70
77
60

50 9
40

30 12
20
2
10

0
Oil Cold drinks Rice Wheat

No of Shops

Marketing activities

49
 Reaction towards outlet marketing activity by Cadbury
70

60

50

63
40
4
30 24
9
20

10

0
Excellent Fair Neutral Not upto the mark

No of Shops

50
 Need for more promotional activities

Reaction towards outlet marketing activity by Cadbury

120
97
100

80

60

40

20 3

0
Yes No

No of Shops

51
 Best promotional tool

Reaction towards outlet marketing activity by Cadbury

60

50
33
57
40

30

20
10
10

0
Banners Hoardings Leaflets

No of Shops

52
 ANNEXURE
Market penetration analysis
Dear Sir/Madam,
The data gathered through this interview schedule would be used exclusively for the purpose
of academic research only

NAME: ____________________
SHOP NAME:
AGE:
GENDER: MALE / FEMALE

1. Do you order products from JioMart?

 Yes
 No

2. What are the reasons of not ordering from JioMart?

 Profit margin
 Poor app service
 Poor delivery
 Availability
 Quality

3. what is the frequency of ordering from JioMart?

53
  Once a week
 Once a month
 Twice a month
 As per need
 Not at all

4. How much are you satisfied with the visit of the salesperson?

 Highly satisfied
 Satisfied
 Neutral
 dissatisfied
 highly dissatisfied

5. how much are you satisfied with the availability of the products?

 Highly satisfied
 Satisfied
 Neutral
 dissatisfied
 highly dissatisfied

6. how much are you satisfied with the delivery of the products?

 Highly satisfied
 Satisfied
 Neutral
 dissatisfied
 highly dissatisfied

54
7. Are you satisfied with the offers given by JioMart?

 Highly satisfied
 Satisfied
 Neutral
 dissatisfied
 highly dissatisfied

8. Are the damaged products replaced by JioMart delivery associates?

 Weekly
 Monthly
 Twice a month
 Sometimes
 Never
9. Do you receive adequate schemes from JioMart?
 Yes
 No
10. Are you satisfied with the schemes provided by JioMart?
 Highly satisfied
 Satisfied
 Neutral
 Dissatisfied
 Highly dissatisfied

11. What are the main products that you order from JioMart?
 Cold Drinks
 Refined Oil
 Rice
 Tea/Coffee
 Other Grocery items

55
 12. What are the reasons of not ordering from JioMart?
 Profit margin
 Poor delivery
 Availability
 Quality

13. What are the other online e-commerce sites you order from?
 BigBasket
 Amazon
 Flipkart
 Udaan
 Grofers
14. What are the reasons of ordering from other sites?
 Profit margin
 Availability
 Schemes
 Delivery
 Quality

THANK YOU FOR PARTICIPATING IN THIS SURVEY.

Market potential analysis

DISCLAIMER: The data gathered through this interview schedule would be used exclusively
for the purpose of academic research only

NAME: ____________________
OCCUPATION:

56
  STUDENT
 EMPLOYED
 BUSINESS
 WORK FROM HOME

AGE:

1. What are the reasons for the preference of chosen products from JioMart?

 Quality
 Taste
 Availability
 Price
2. How much are you satisfied with the products?
 Highly satisfied
 Satisfied
 Neutral
 dissatisfied
 highly dissatisfied

3. Are you aware of the new products available on JioMart?

 Yes
 No

4. What are the reasons of non-awareness of the newly available products?

 Poor advertisement
 Improper distribution
 Lack of knowledge

57
THANK YOU FOR PARTICIPATING IN THIS SURVEY.

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