Capstone Project 2022-24

Phase 1 Report
Sem II

Title of the Project:

A Study on Marketing Strategies of

Reliance Retail

Submitted by:

Name of Faculty Name of the

Guide: Prof. Student:
Evelina Renu Gupta
Designation: Roll No:
Assistant 021230022716
Professor
Program:
PGDM
(Marketing)
Batch: M3
Semester: II

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Institute for Technology and Management
Plot No. 25 / 26,
Institutional Area,
Sector – 4, Kharghar,
Navi Mumbai

CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Project Work titled A study on marketing strategies of reliance
retail is a bonafide work carried out by Ms : Renu Gupta Roll No: 021230022716 a student
of PGDM program 2022 – 2024 of the Institute for Technology & Management, Kharghar,
Navi Mumbai under my supervision & guidance.

Signature of Guide :
Name of Guide : Dr/Prof.
Designation : Assistant Professor, Kharghar

Date: 17th February 2023

Place: Kharghar, Navi Mumbai

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 ACKNOWLEDGEMENT

Execution of a project of this nature is impossible without active support from

the faculty guide and professors at the Institute. I would like to express my
sincere gratitude to my guide Prof Evelina Ma’am for her guidance during the
entire project duration.

I also extend my sincere thanks to all those who directly and indirectly helped
me to complete the project.

Name of the Student: Renu Gupta

Signature of the Student: Renu Gupta

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 Index
Sr. Content Page No-
no
Front Cover Page 1
Certificate from the Faculty Guide 2
Acknowledgement 3
1 Chapter 1- Introduction 5
1.1 Overview of the sector 5
1.2 Government initiative 6
1.3 Contribution to GDP 7
1.4 Overview of the Reliance Retail 8
1.5 Marketing strategies 10
1.6 Marketing strategies of Reliance Retail 13
1.7 SWOT analysis of Reliance Retail 14
1.8 Scope of the study 15
2 Chapter 2 literature review 16
2.1 Objectives of the study 16
3 Chapter 3 research methodology 17
3.1 Research design 17
3.2 Data source 17
3.3 Sample size 17
Reference 18

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Chapter- 1

Introduction
1.1 Overview of the sector
The Indian Retail Industry is the largest among all the industries, accounting for over 10 per
cent of the country’s GDP and around 8 per cent employment. The Retail Industry in India
has come forth as one of the most dynamic and fast paced industries with several players
entering the market. India’s Retail sector is wearing new clothes and with a three-year
compounded annual growth rate of 46.64 percent, retail is the fastest growing sector in the
Indian economy. Traditional markets are making way for new formats such as departmental
stores, hypermarkets, supermarkets, and speciality stores. Western-styled malls have begun
appearing in metros and two-tier cities alike, introducing the Indian consumer to an
unparalleled shopping experience. The Indian retailing sector is at an inflexion point where
the growth of organized retailing and the growth in consumption by the Indian population had
taken a higher growth trajectory. The retail market has created a win-win situation for
suppliers, producers, retailers, and consumers. The Indian retail sector is highly fragmented
with 97 per cent of its business being run by unorganized retailers like the traditional family
run stores and corner stores. The sector is the largest source of employment after agriculture
and has deep penetration into rural India generating more than 10 per cent of India’s GDP.
Over the past few years, retail sales in India are hovering around 33-35 per cent of GDP as
compared to around 20 per cent in the US.
As per Kearney Research, India’s retail industry is projected to grow at 9% over 2019-2030,
from US$ 779 billion in 2019 to US$ 1,407 billion by 2026 and more than US$ 1.8 trillion by
2030. E-Retail has been a boon during the pandemic and according to a report by Bain &
Company in association with Flipkart ‘How India Shops Online 2021’ the e-retail market is
expected to grow to US$ 120-140 billion by FY26, increasing at approximately 25-30% p.a.
over the next 5 years. Despite unprecedented challenges, the India consumption story is still
robust. Driven by affluence, accessibility, awareness and attitude, household consumption
stood at Rs. 130–140 trillion (US$ 1.63-1.75 trillion) in 2021. India has the third-highest
number of e-retail shoppers (only behind China, the US). The new-age logistics players are
expected to deliver 2.5 billion Direct-to-Consumer (D2C) shipments by 2030. Online used
car transaction penetration is expected to grow by 9x in the next 10 years.

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1.2 Government Initiatives

The Government of India has taken various initiatives to improve the retail industry in India.
Some of them are listed below:

• In April 2022, the government approved PLI scheme for textiles products for
enhancing India’s manufacturing capabilities and enhancing exports with an approved
financial outlay of Rs. 10,683 crore (US$ 1.37 billion) over a five-year period.

• In October 2021, the RBI announced plans for a new framework for retail digital
payments in offline mode to accelerate digital payment adoption in the country.

• In July 2021, the Andhra Pradesh government announced retail parks policy 2021-26,
anticipating targeted retail investment of Rs. 5,000 crore (US$ 674.89 million) in the
next five years.

• Government may change Foreign Direct Investment (FDI) rules in food processing in
a bid to permit E-commerce companies and foreign retailers to sell Made in India
consumer products.

• Government of India has allowed 100% FDI in online retail of goods and services
through the automatic route, thereby providing clarity on the existing businesses of E-
commerce companies operating in India.

• The Minister of MSME announced inclusion of retail and wholesale trades as

MSMEs. Retail and wholesale trade will now get the benefit of priority sector lending
under the RBI guidelines.

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1.3 Contribution to GDP

Contribution of 3 heads to Total Retail Market in India

1. Unorganised Retail: Currently, the Indian retail market continues to be dominated

by the unorganised retail (traditional Kirana stores) accounting for about 88% of the
total retail market.
2. Organised Retail : On the other hand, organised retail like Big Bazar, DMart,
Malls, Showrooms etc, is contributing only about 9% of the total retail market.
3. E-Tail: E-Tail like Flipkart, Amazon, Big Basket etc, accounts for only 3% of the
total retail market in India.

Segment-wise Contribution in Organized Retail

• Within organized retail, food & beverage holds around 65% of the revenue.
• While apparel and footwear contributions are 10%.
• Consumer Durables and Jewellery & accessories are contributing 9% and 7%
respectively.
• Health & Entertainment, Home Décor & Furnishings, Beauty & Personal Care
contribute around 4%, 3% and 2% respectively to the total organised retail market.

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1.4 Overview of Reliance Retail

Reliance Retail is the retail initiative of Reliance Industries Limited and is central to the
group’s consumer facing businesses. Reliance Retail has been at the forefront of bringing
about Organized Retail revolution in India. Reliance Retail’s operating model unleashes the
aspirational energy of the new, resurgent India. Reliance Retail’s guiding philosophy rests on
the tenets of enabling inclusion, growth and building sustainable societal value for millions of
Indians. In a short period, it has forged strong and enduring bonds with millions of consumers
by providing them unlimited choice, outstanding value proposition, superior quality and
unmatched shopping experience across all its stores. Reliance Retail has nearly 200 million
registered customers buying across all its formats. Reliance Retail has adopted a multi-prong
strategy and operates a wide array of store formats which cater to planned shopping needs as
well as daily or occasional needs of the customers across major consumption baskets of
Grocery, Consumer Electronics and Fashion & Lifestyle.

In Grocery consumption basket, Reliance Retail operates Reliance Fresh Signature, SMART,
Smart Point, Fresh pick, Shree Kannan Departmental and Jayasurya stores focused on food,
fresh produce, bakery, dairy products, home, and personal care products, as well as general
merchandise items. In Consumer Electronics consumption basket, Reliance Retail operates
Reliance Digital and MyJio Store formats offering a wide range of consumer electronics,
home appliances, computing and mobility products, latest gadgets and accessories.

In Fashion and Lifestyle consumption basket, Reliance Retail operates a portfolio of formats
that serves customers across value, mid, premium and luxury segments. Reliance Retail
operates Trends, Trends Woman, Trends Man, Trends Footwear, Avantra by Trends,
Reliance Jewels, Hamleys formats and a portfolio of more than 50 marquee international
brands such as Armani, Burberry, Diesel, GAS, Marks & Spencer, Superdry, Brooks
Brothers, Steve Madden and more.

Reliance Retail has a strong presence in digital commerce channels through AJIO.com, a
curated fashion & lifestyle store bringing best of national and international brands to
customers doorsteps and Jiomart, India's largest hyperlocal retail solution that leverages the
wide network of Reliance Retail's grocery stores and well-established supply chain
infrastructure. Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited
is the holding company of Reliance Retail Limited which operates the retail business.
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This ours brands under Reliance Retail.

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1.5 Marketing Strategies

Marketing strategy is a method of focusing an organization's energies and resources on a

course of action which can lead to increased sales and dominance of a targeted market niche.
A marketing strategy combines product development, promotion, distribution, pricing,
relationship management and other elements; identifies the firm's marketing goals, and
explains how they will be achieved, ideally within a stated timeframe. Marketing strategy
determines the choice of target market segments, positioning, marketing mix, and allocation
of resources. It is most effective when it is an integral component defining how the
organization will successfully engage customers, prospects, and competitors in the market
arena. Corporate strategies, corporate missions, and corporate goals. As the customer
constitutes the source of a company's revenue, marketing strategy is closely linked with sales.

1.6 Marketing strategies of Reliance Retail

Marketing Strategy of Reliance Retail analyses the brand with the marketing mix which
covers the 4Ps (Product, Price, Place, Promotion).

There are several marketing strategies like product innovation, pricing approach, promotion
planning, distribution planning etc. These business strategies, based on Reliance Retail
marketing mix, help the brand succeed in the market.

Reliance Retail marketing strategy helps the company to position itself competitively in the
market and achieve its business goals & objectives.

There are following marketing strategy of Reliance Retail & Mix to understand its product,
pricing, advertising & distribution strategies-

1. Reliance Retail Product Strategy:

The product strategy and marketing mix in Reliance Retail marketing strategy can be
explained as follows:

Reliance Retail is one of the most important retail brands in India. Under the umbrella of
Reliance Retail, comes a number of companies like

• Reliance Fresh (contain products from fruits and vegetables, groceries, daily products,
stationery, detergents etc.)

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 • Reliance Trends (the dress and apparels division)

• Reliance Footprint (the shoes and footwear division)

• Reliance Jewels (jewellery and diamonds shop)

• Reliance Smart (for bakery and fresh products and home care products)

• Reliance Digital (electronics showrooms) and Ajio.com (online clothing store)

It has a diverse offering under its marketing mix product portfolio.

2. Reliance Retail Price/Pricing Strategy:

Reliance Retail stores offer goods at extremely competitive prices. Here is the pricing
strategy in Reliance Retail marketing strategy:

In India, there are about 7 million retail stores, pricing plays a big factor of differentiation.
With setting up big and attractive supermarkets, the number of people coming inside wish to
buy in bulk. Reliance offers them a price which is generally lower than general stationery
stores. This strategy is mostly applied in FMCG sector. This is possible from getting the
products directly from suppliers in bulk and their connection with the farms. However, in the
clothing sector and in footwear, Reliance Retail offer mid-range to premium pricing, this is
because they offer premium quality products from well-known brands. In jewellery business,
they keep pricing like their competitors and rely upon their designs for differentiation. They
have the dedicated Card named Reliance cards where they give discounts on multiple buys.

3. Reliance Retail Place & Distribution Strategy:

Reliance retail stores are across 750 cities in India, and the number of stores are around 3800.
They are being an age-old established brand in India, cater to a widespread base of customers
from around the corners. They haven't driven into the rural sectors in India as they have
primarily focused upon medium to high earning part of the society. The Reliance Retail
stores are generally spread across big area with proper parking facilities. They also sell their
products online and with dedicated clothing sites like Ajio.com.

4. Reliance Retail Promotion & Advertising Strategy:

The promotional and advertising strategy in the Reliance Retail marketing strategy is as
follows:

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Reliance Retail has invested in many advertising sources ranging both on online and offline.
Their discount offers in clothes and footwears attract a lot of consumers. Big hoardings can
be seen all over the cities. The Reliance Fresh has all time offers going on where their
products are usually on 30-50% discount which is a very eye-catching number to indulge
audiences. They also use print media and simultaneously social media to reach to the
customers.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps
marketing mix of Reliance Retail.

5. People:

Reliance being one of the largest employers in the country has approximately 1,20,000
employees working for Reliance Retail. This includes talented people who are interested in
sales jobs. Proper care is taken to make every worker familiar with the product and be expert
about it. Headed by Mukesh Ambani, the hierarchy structure of the company is very long.
This is because the shops are at every corner of cities appointing numerous workers who are
familiar with local language and sales methods for regions.

6. Process:

The focus of Reliance Retail from beginning was to never be stock out for which it had to
have a very efficient logistics division. Reliance fresh which sells vegetables and fruits have
daily replacement systems where the inventories are rotated throughout the day. In Reliance
Digital they feature one of the largest tech markets not only in terms of product varieties but
also in terms of easy availability which is achieved through company's connection to main
suppliers and rapid distribution system.

7. Physical Evidence:

Reliance Retail stores have been trying to reach each and corner of the country. Reliance
fresh has been successful in being the daily Retail store for many consumers in Tier 1 and tier
2 cities. Their presence in fashion retails can be seen from big hoardings in major streets. The
outlets those are chosen for set up are usually big spaces which portray a display of the store
varieties. They usually take multiple floors with multiple retails all at one stop. Such as
Reliance trends, footprints and digital are often clubbed together. This concludes the
marketing mix of Reliance Retail.

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1.7 SWOT Analysis of Reliance Retail
SWOT analysis of Reliance Retail analyses the brand by its strengths, weaknesses,
opportunities & threats. In Reliance Retail SWOT Analysis, the strengths and weaknesses are
the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Reliance
Retail to benchmark its business & performance as compared to the competitors. Reliance
Retail is one of the leading brands in the lifestyle and retail sector.

1. Reliance Retail Strengths:

The strengths of Reliance Retail look at the key aspects of its business which gives it
competitive advantage in the market. Some important factors in a brand's strengths
include its financial position, experienced workforce, product uniqueness & intangible
assets like brand value. Here are the Strengths in the SWOT Analysis of Reliance Retail:

1.It is Indian retail chain with 900+ stores in 80 cities in India

2.Hyper market with 95000 markets with tailoring, shoe and watch repair, laundry

3.It owns various private label brands

4.It has strong distribution network-1600 channels in villages

5. Strong backing of the parent company

2. Reliance Retail Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to
increase its position further. Certain weaknesses can be defined as attributes which the
company is lacking or in which the competitors are better. Here are the weaknesses in the
Reliance Retail SWOT Analysis:

1.Product variety is available, but more SKUs are not present due to inefficient back-end
infrastructure

2. Poor inventory control at certain locations is a concern

3. Reliance Retail Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A
brand's opportunities can lie in geographic expansion, product improvements, better
communication etc. Following are the opportunities in Reliance Retail SWOT Analysis:

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1.Sourcing directly from farmers; no middlemen could earn more profit as number of farmers
will increase five times in next 5 years

2.Leveraging on brand name and entering Reliance saloon

3.Large potential to reduce operation cost in cities using strong supply chain

4. Reliance Retail Threats

The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products or
services etc. can be threats. The threats in the SWOT Analysis of Reliance Retail are as
mentioned:

1. Strong competition globally from Carrefour, Metro A.G., Tesco

2.Operationg cost are too high

3.Wallmart is biggest competitor when it comes to sourcing/ backward integration

1.8 Scope of the Study

This research paper gave us great exposure to the customer's perception to the
marketing strategies adopted by the Reliance Retail. Because it includes the
service offered by them. The study also identifies the attitudes and preference of
the consumers. The study also focused on Media through which the product
reaches the consumers this research paper helped us in knowing the market
practically.

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Chapter- 2
2.1 Literature Review
In India the middle class and its almost untapped retail industry are the key attractive forces
for global retail giants wanting to enter newer markets, which in turn will help the India
Retail Industry to grow faster. Indian retail is expected to grow 25 % annually. Modern retail
in India could be worth US$ 175- 200 billion by 2016. The Food Retail Industry in India
dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$
16.7 billion business, growing at over 20 per cent per year. The future of India’s Retail
Industry looks promising with the growing market, with government policies becoming more
favourable and emerging technologies facilitating operations.

Dhanabhakyam & Shanthi (2007): The Indian retail sector analysis (2006-07) report helps
clients to analyse the opportunities and factors critical to the success of the retail industry in
India. The author has given some key findings:

a) Organized Retail will form 10% of total retailing,

b) From 2006-10 the organized sector will grow at the CAGR of around 49.53%,

c) Cultural and Regional differences are the biggest challenges faced by Indian retailers,

d) The Hypermarket is emerging as the most favourable format for the time being in India,

Babunagendria and Avina (2007): Organised retailing is the most happening sector today
the technological advancements are considerably influencing retail sector, helping to improve
customer service and organise it better it thrives mainly on electronic base technology.

Manroe and Lee and Desai and Talukar (1999,2003): They develop a product price
saliency framework to examine how consumers form an overall store price image.

Buckling and Lathin (1992): They show that retail promotions in any one category do not
directly influence a consumers store choice decision , but they indirectly affect where the
category is purchased.

Sahudebajani and Mishra (2018): Customer shopping experience, product variety at

different price points and cost advantage.

Parilch (2006): As the retailing in India evolves, service quality of retail stores in India needs
appreciably improvement to compete successfully in the global marketplace. It is, therefore,

15
indispensable to know how customers appraise service quality and how it can be measured
and improved.

Kumar R & Vetrivel, T (2016) concluded that "The customer perception of retail service
quality is an important segment to the emerging and the existing retailers in the market as the
study reveals that perception of service quality influenced by the various nature with various
customers even some of the general factors like Personal interaction, physical aspects are the
dimensions on the customer perception remains constant and common to all the customer on
a majority basis so the retail outlets have to frame their own strategies In order to attract the
customers on a longer basis.

Kumar R & Barani (2012) said that "service quality has long been accepted as the basest
Marketing tool for retailers to differentiate their retail offers, create competitive advantage
and to enhance the customers" shopping experience Nonetheless, maintaining excellent
service quality within the stores is no sample task.

Hekman David R., Aquino Karl, Owens Bradley P., Mitchell Terence R. & Leavitt
Pauline Schilpzand Krith (2010). In this research, researcher have found the result that,
customer satisfaction surveys have become a common source of performance feedback for
employees and organizations Researchers had given some new aspects that customer
satisfaction was primary factor for the companies this time for strategic decision making and
to find some factors for compensation of employees Customer satisfaction in most of cases
were gender biased they had found because this mainly attach with the behaviour of people
and performance which is always related to gender wise"

2.2 Objectives of the study

• To study the promotional strategies of Reliance Retail

• To study the different Brand offerings by Reliance Retail

• To study the distribution strategies of Reliance Retail

• To study the customer satisfaction of Reliance Retail

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Chapter-3
Research Methodology

Research Methodology is a way to systematically solve the research problem. When we talk
to research methodology, we not only talk of research methods but also consider the logic
behind the method we use in the context of our research results are capable of being
evaluated either by researcher himself or by other.

The purpose of this section is to describe the methodology carried out to complete the work.
The methodology plays a dominant role in any research work. The effectiveness of any
research work depends upon the correctness and effectiveness of the research methodology.

This section deals with research design used, data collection, methods used, and sampling
methods used.

3.1 Research Design

This Research is based on descriptive research design.

Descriptive research is to describe something- usually market characteristics such as

consumers, strategies, and organization or market areas.

3.2 Data Source

For my research paper I can use primary source and secondary source.

• Primary Source: Primary data was collected in the form of google Questionnaire
form.
• Secondary Source: Secondary data was collected from the journals, books,
magazines, and any other website.

3.3 Sample Size

The data were collected from Approx 100 people.

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www.reliancemart.com

www.ril.com>bussiness

en.wikipedia.org/wiki/Reliance Fresh

en.wikipedia.org/wiki/File:Reliance Mart

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www.thehindubusinessline.com/news/states/article3847767.cce

www.customercareinfo.in/reliance-retail

BabuNagenderia and aveena (2007) E – products in retail management marketing

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