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Reliance Fresh
Reliance Fresh
Reliance Fresh
Presentation on
Reliance fresh
BY ROHIT KUMAR AND
SHIPRA SRIVASTAVA
Reliance
format Part of Reliance Industries of India which is headed by Mukesh Ambani RILs dream of retail revaluation got kickedstarted in AP when its Reliance Fresh supermarket opened its doors to World
Following
the first , company opened 10 more stores as a first step towards creating a mega retail chain across the country The Reliance Fresh supermarket chain was Rils Rs. 25000 crores venture It sells fruits , vegetables, stapels ,groceries, and dairy products
Retail
chain closely follows the moves of global players like Wal-Mart store Inc and Metro AG seeking to open shop here in country It has almost more than 500 fresh across the country
Vegetables and fruits. House hold Items. Food and Beverages. Groceries. Dairy Products. Refrigerated products. Non food items. Ready to eat items.
Product range
Product
Labeling. Product Packaging. Arrangement. New products. Product Quality. Launched new products of its own. Home Delivery.
Discount pricing strategy. Wide price range of each items. Credit card acceptance. Accept coupons. Competitive prices.
comparable cost.
Inefficient
Up
Advertising
Sales
Promotion Festive season special offers Live announcement & spot discounts Reliance Fresh membership cards Promotes new product. Orgnising events Providing gifts-Free goods. All these are common strategies.
STRENGTHS: Reliance
has a strong financial backup. Reliance does contract farming which is beneficial to them. Private label sales Reliance SELECT. Reliance has a network of 1600 channels in the villages from where they directly purchases vegetable and fruits. High brand equity. Quality assurance. Horizontal and backward integration
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Poor
inventory control. Staff not qualified and is unaware about the products. No parking area provided. Fruits and vegetables not always fresh. Staff takes more time in billing (queuing time).
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In
store experience improvements. Targeting area more prone to improvements. Increase number of farmers in next 5 years. Global expansion. Growing retail market Increasing purchasing power of consumers
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Government
policies. Unorganized retail. Increasing real estate prices which leads to high rentals. Global retailers who operate on thin margin. Reliance is looking for fairly high margin business model. International retail giants.
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POLITICAL:-
Most
of the processed food item have been exempted from licensing except alcoholic beverages. FDI up to 100% is permitted through automatic route. Custom duty has been substantially reduced. Corporate taxes is also reduced. Food industry is one of the growing areas identified for exports.
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Food
industry is growing at 13% despite of economic slowdown. Indias share in global food trade is increasing from 1.5% to 3%. Declared priority sector in 1999. It is expected to witness 50% increase in investment in 2012(investment in infrastructure of retail industry).
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Eating
habits of Indians are changing. Increasing personal health consciousness among Indians . Increase in nuclear families. Shift in product and service preferences. Increase in working women proposition. Life style changes.
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Technological
and service. Better applications of IT in modern retail industry like supply chain, store management, CRM, oracle.
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TOWS Matrix
Internal (S) Financial backup, Quality
Increase varieties & better quality can expand their market share
Paying high rentals no issue, point of purchase & quality in order to give a good shopping experience
(W)
Poor inventory control, queuing time(staff not so skilled)
External
(O) Growing retail market, global expansion, increasing purchasing power of consumers (T)
Real estate prices, global retailers operating on thin margin, Int retail giants
Discounts & coupons even for Free home delivery, 9 - Generate Alternative Strategies
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Bring
Reliance food
Reliance
store
Invest
reliance
Expand Give
Service
training to staff
Improve
inventory control