Dissertation Report
Dissertation Report
RELIANCE RETAIL
A
DISSERTATION PROJECT REPORT
SUBMITTED IN THE PARTIAL FULFILLMENT OF
THE REQUIREMENTS OF ARKA JAIN UNIVERSITY
Submitted By:
PIYUSH
AJU/00729/17 (231)
Faculty Mentor:
MRS. NAHID MIRZA
ASSISTANT PROFESSOR(MARKETING)
CERTIFICATE OF APPROVAL
Programme Coordinator.
To the best of my knowledge , this project is the record of authentic work carried
out during the academic year (2017-2020) and has not been submitted
anywhere else for the award of any Certificate / Degree/Diploma etc.
SIGNATURE:
I, PIYUSH , hereby declare that the project titled “STUDY OF MARKET STRATEGY
ON RELIANCE RETAIL” has been carried out by me during my DISSERTATION and
is hereby submitted in the partial fulfilment of the requirement of ARKA JAIN
UNIVERSITY for the award of the degree of BACHELOR OF BUSINESS
ADMINISTRATION.
To the best of my knowledge , the project undertaken ,has been carried out by
me and id my own work . The contents of this report are original and this project
has been submitted to ARKA JAIN UNIVERSITY , JAMSHEDPUR and it has not
been submitted elsewhere for the award of any Certificate /Diploma /Degree
etc.
SIGNATURE :
PIYUSH
AJU/00729/17
BBA – 2017-2020
ACKNOWLEDGEMENT
I express my warm thanks to MS.NAHID MIRZA for her support and guidance
at ARKA JAIN UNIVERSITY.
I would also like to thank my project external guide Mr. RAMESH AGARWAAL
from the RELIANCE RETAIL and Ms. AGRIMA SINGH and all the people who
provided me with the facilities being required and conductive conditions for
my BBA project.
TABLE OF CONTENTS
CHAPTER-1
➢ Introduction of the Project
CHAPTER-2
➢ Objective, Scope & Limitations of the Study
➢ REVIEW OF LITERATURE
CHAPTER-3
➢ Research Methodology
CHAPTER-4
➢ Data collection & Sources
CHAPTER-5
➢ Findings of the study
CHAPTER-6
➢ Conclusion
➢ Suggestion
Appendix
Bibliography
Questionnaire
INTRODUCTION 2
The project report is divided into several parts; first part consists of
Introduction to Reliance Retail. In which company profile has been included
with brief introduction to reliance mart. Next part consists of retail sector in
India. This also deals with growth of organized retail in India. Third part
includes the marketing strategy used by reliance mart. It includes their profit
maximization strategy and how to retain their customer and how to increase
the no. of customer.
Retailing in India is one of the pillars of its economy and accounts for 14 to 15
percent 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 2010,
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 2011, 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 2011, 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 Wal-Mart, 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 December 2011, under pressure
from the opposition, Indian government placed the retail reforms on hold till it
reaches a consensus.
In January 2012, India approved reforms for single-brand stores welcoming
anyone in the world to innovate in Indian retail market with 100% ownership,
but imposed the requirement that the single brand retailer source 30 percent
of its goods from India. Indian government continues the hold on retail reforms
for multi-brand stores. June 2012, IKEA announced it has applied for
permission to invest $1.9 billion in India and set up 25 retail stores. Fitch
believes that the 30 percent requirement is likely to significantly delay if not
prevent most single brand majors from Europe, USA and Japan from opening
stores and creating associated jobs in India.
On 14 September 2012, the government of India announced the opening of FDI
in multi brand retail, subject to approvals by individual states.This decision has
been welcomed by economists and the markets, however has caused a
massive upheaval in India's delicate governance structure.
Growth of Retail industry in India
This graph shows the growth of retail industry in India starting from
2006- 2016. When reliance came into the organized retail there was
very few corporate backed retail giants Like BATA. After 2006 when
reliance came into this sector other players also came into existence
eg:- Big Bazar, vishal mega-mart, subhiksha.
RANCHI
PROFILE OF RELIANCE MART
DATE OF 14th Aug. 2007
ESTABLISHMENT
REVENUE RS.2500-5000crores
MARKET CAPITAL US $27.4 billion
HEAD QUARTER RCP STTC Industrial Area,
Tanabelapur Road, Ghansoli , Mumbai
– 400701
BRANCHES Over a 100 stores across India
COMPANY TYPE HYPERMARKET
MANAGEMENT TEAM Mukesh D. Ambani - Chairman
& Managing Director
Nikhil R. Meswani - Executive Director
Hital R. Meswani - Executive Director
H.S.Kohli - Executive Director
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. D. V. Kapur
M. P. Modi
S. Venkitaramanan
Prof. Ashok Misra
Prof.Dipak C Jain
Dr.RaghunathAnantMashelkar
OVERVIEW Reliance Retail Limited (RRL), a
subsidiary of Reliance Industries Limited
under MukeshAmbani, is Reliance
Group’s foray into organized retail. RRL
is based on the growth strategy of
backward integration, and it generates
inclusive growth and prosperity for
farmers, vendor partners, small
shopkeepers and consumers.
RLL is the second largest retailer in India.
Its retail outlets offer foods, groceries,
apparel and footwear, lifestyle and home
improvement products, electronic goods,
and farm implements and inputs. The
company’s outlets also provide vegetables,
fruits, and flowers.
The retail sector in India can be divided into two major categories:
1) Organized
2) Unorganized
Retailing sector of India can be split into two segments. They are the
informal and the formal retailing sector. The informal retailing sector
is comprised of small retailers. For this sector, it is very difficult to
implement the tax laws. There is widespread tax evasion. It is also
cumbersome to regulate the labor laws in this sector. As far as the
formal retailing sector is concerned, it is comprised of large retailers.
Stringent tax and labor laws are implemented in this sector.
If the retail industry is divided on the basis of retail formats then it can
be split into the modern format retailers and the traditional format
retailers. The modern format retailers comprise of the supermarkets,
Hypermarkets, Departmental Stores, Specialty Chains and company
owned and operated retail stores
Firstly, the organized retail sector in India has a very low contribution
to the entire retail sector in the country. Hence there is ample scope for
the new players to achieve success in the backdrop of soaring
disposable income of the upcoming generation. Secondly, not only
have the incomes increased but there has been a sea change in the
preferences of the consumers. These factors have acted as a stimulus
for the ushering of foreign players retailing in apparels, accessories,
electronic appliances etc. Large shopping malls have already
mushroomed in the metropolitan cities. There still lies untapped
potential in the Indian Retail Market.
The size of retail industry in an economy depends on many factors and
the level of consumer spending is the most important among these
factors. The retail sector in India has grown by leaps and bounds in the
last five years. The reason behind this growth has been the synergy of
many propellants. However the growth is not always genuine as there
are exaggerations as well. But these exaggerations also have benefits
since they given a feel of growing competition all around. Secondly the
present situation is just a depiction of nascent stage. The future of the
trajectory may not be as steep as it is now or may be even slope
downward. 'What will be the future size of the retail industry' is the
mind boggling question. Another moot point that will gain importance
in due time concerns the future of the unorganized retail market which
constitute a significant proportion of the whole industry. The retail
stores have proved to be a vantage point for the customers. This implies
that the small farmers who used to sell their product in the sabji-mandis
and on roadsides are going to lose a significant market share as they
can't employ the two profit maximizes-economies of scale and
economies of scope.
The present value of the Indian retail market is estimated by the India
Retail Report to be around Rs. 12, 00,000 crore($270 billion) and the
annual growth rate is 5.7 percent. Retail market for food and grocery
with a worth of Rs. 7, 43,900 crore is the largest of the different types
of retail industries present in India. Furthermore around 15 million
retail outlets help India win the crown of having the highest retail outlet
density in the world. The contribution of retail sector to GDP has been
manifested below:
Japan - total annual sales for the Japanese retail industry for 2003
amounted to JPY 133,273 billion. Japan had 1.2 million retail
establishments in June 2004 and there were 42,738 specialty
superstores. Between 2002 and 2004 annual sales per store increased
by 3.8%. The growth was mainly driven by the grocery superstores but
the number of superstores specializing in clothes gradually came down.
The organized retail sector in Japan couldn't perform at its full
efficiency because of collapse of the 'bubble economy' in the early 90s.
The above table reinforces our view that India has done a great job in
retailing. One noteworthy point here is that Japan in spite of being
one of the most densely populated countries has fared poorly than
India. But this euphoria loses its charm if we compare the percentage
of organized retail in the total value generated by the retailing sector.
According to international
standards, a retail store is
nominated as organized only
when it features more than
10 employees. The above
chart clearly portrays the
miserable condition of
India's organized retail A forecast of 40% annual growth in the
organized retail sector seems sound. The number of shopping malls
in India has grown from 1 in 2001 to 100 in 2005 but still more effort
is needed to turn the predictions into reality.
Studies have further showed that non-urban areas account for only
about 15% of organized retailing So it is high time that the retail
industries pay importance to diversification and reach out to non-
urban markets. If they remain confined to the metropolis then they
will soon hit a ceiling and will be able to grow no more. But at the
same time they must realize that the rustic people are sceptic about
the urbane lifestyle habits. The mega retail players will have to drop
their policy of full extraction of consumer surplus and will have to
employ the local people to overcome the myth that entry of a branded
retail will displace the millions of traders, shopkeepers and hawkers.
Protests must be welcomed and meetings encouraged makinglife
easier.
Retail markets in Germany, South Africa and many other countries
allow 100% foreign investment in retail. This has helped in setting up
of cash and in creating wholesale markets. However, in India, only
51% FDI is allowed in single-brand retail and that too with prior
approval. In case of multi-brand retail, FDI is completely prohibited.
This is a perfect beginning but foreign investment should be gradually
liberalized to modernize farming and help farmers scale up.
Moreover, restricting FDI for protecting mom-and-pop stores seems
unjustifiable since Tata, Reliance and Bharti have already made a
foray in the sector.
The anatomy of the retail market has shown that the clothing and
textiles constitutes 39 per cent of the organised retail pie, followed by
food and grocery, which accounts for 11 percent of the total retail
market.
Types of strategies
• Innovation strategies - This deals with the firm's rate of the new
product development and business model innovation. It asks
whether the company is on the cutting edge of technology and
business innovation. There are three types:
o Pioneers
o Close followers
o Late followers
• Growth strategies - In this scheme we ask the question, “How
should the firm grow?”There are a number of different ways of
answering that question, but the most common gives four
answers:
o Horizontal integration
o Vertical integration
o Diversification
o Intensification
Spread across 165,000 square feet of shopping area, Reliance Mart will
provide the shoppers a never-before-experienced shopping delight. The
hypermarket will carry a range of over 95,000 products catering to the
entire family. Shoppers will have the option to choose from a wide
array of products in every category ranging from fresh produce, food
& grocery, home care products, apparel and accessories, non-food
FMCG products, consumer durables and IT, automotive accessories,
lifestyle products, footwear and much more.
Reliance Mart, with 61 check-out counters has for the first time in India
introduced the Mobile POS system for faster check outs. This is aimed
at reducing customer wait-time. The store planning, atmospherics and
layout has been designed specifically to provide “a complete solution”
to the customer. Reliance Mart will remain open from 10:00 a.m. to
10:00 p.m., seven days a week. The store has over 400 highly skilled
and trained customer sales representatives. Reliance Mart will
continue to offer all its customers Reliance One, a common
membership and loyalty program across all its formats, which follows
the philosophy of ‘Earn Anywhere, Spend Anywhere’. Reliance Mart
will also provide easy and attractive finance options, including 0%
financing for your purchases on select products. Reliance Retail plans
to have a pan-India presence by opening over 30 Reliance Mart
hypermarkets this year and over 500 by the end of 2010.
Services Offered
It offers some unique services to the shoppers like tailoring, shoe
repair, watch repair, a photo shop, gifting services and laundry
services all within the store under one roof and also it has its own
bakery shop.
Reliance Mart will also provide easy and attractive finance options,
including zero per cent financing for the purchases on select products.
Reliance Mart will continue to offer all its customers Reliance One, a
common membership and loyalty programme across all its formats,
which follows the philosophy of 'Earn Anywhere, Spend Anywhere'.
Future Plans
The next two hypermarkets are to be opened in Jamnagar in Gujarat
and in the NCR by next month with plans to open 30 such marts by
the year. Raghu Pillai, President and CEO (operations and strategy),
Reliance Industries Limited (RIL) said the company is planning to set
up 500 hypermarkets across 784 towns by 2010.
Strategy
The hypermarket would be selling the products on EDLP (every day
low price) basis at prices 15-20 percent lower than market prices.
In order to grow faster and better in local markets with higher
margins, it has focused largely on local brands instead of national
brands or private labels. Local brands include
IndubenKhakrawala’sNamkeens, LijjatPapad, WaghBakri and
Madhur (spices brand). This is in addition to 100 private labels that
Reliance plans to display. Company’s Sources says that the share of
regional brands in the hyper marts would be over 10%.
Strengths
Keeping local brands at the outlets is more profitable and also makes
the supply chain more efficient. Being a bulk purchaser, Reliance
Mart can offer products at very low prices. Also taking into
consideration the local brands, the products at the outlets would be
easily acceptable by the customers. And there would be
comparatively less efforts needed by the marketer to explain the
product to the consumers.
Weaknesses
In some cases, few regional brands strongly liked by the consumers
offer lower margins than that offered by the national brands. It has to
face a tough competition by big shopping malls i.e. Big Bazaar,
Spencer Hyper, Vishal Mega Mart and the upcoming Wall Mart.
Advertisement & promotion:-
PRODUCT CATEGORIES
HOME FURNISHING
Drawing Room Bedroom
Door Mat Bed Sheet
Carpet Pillows
Curtains Pillow Cover
Kitchen Bathroom
Apron Bath Mats
Kitchen Napkin Towel Gift Sets
FOOTWEAR
BOYS GIRLS
Shoes Slippers
Sandals Sandals
LADIES MENS
Shoes Shoes
Slippers Slippers
MENS
Upper Lower
Shirt Casual Jeans(MP)
Shirt Formal Cotton Trouser(MPC)
Ethnic & Sports Winter Wear
Night Suits Suit(WMC)
T-Shirts Blazer(WMB)
Dupatta Windcheater(WMW)
Sherwani Jacket
LADIES ACCESSORIES
Upper Lower
Kurta Pants Jeans
Skirt Top Capri
Ethnic Winter Wear
Nighty Jackets
Lancha Stawl
Sharara Blazer
Salwar Suit Track Suit
INFANTS
Garments Accessories
Hot Pant Bed Sheet
Frock Under Garments
Baba Suit Socks
WOMEN
KIDS BOYS
KIDS GIRLS
HOUSEHOLD
LIFESTYLE
FOOD MART
Scope of study
This section deals with research design used, data collection, methods
used and sampling methods used.
Research design
Sampling method
Specific sampling method was used to collect the data from the
respondents because sample size is large. Customers & employees of
Reliance Mart were selected for the survey.
Sampling unit
➢ 50 customers
➢ 50 employees
Data collection:
➢ Primary data
➢ Secondary data
1. MAGAZINES
2. NEWSPAPERS
3. WEBSITES
CRM POLICY OF RELIANCE MART
CRM policy of reliance mart can be divided into four major parts,
namely;
1) Customer loyalty
2) Customer retention
3) Customer communication
4) Customer gratification
STRENGTH
WEAKNESS
OPPURTINITIES
THREATS
Of any company. Now we see the SWOT analysis of Reliance Mart.
RELIANCE MART
Strengths:
✓ High quality,
✓ latest in-style products,
✓ international shopping experience
✓ value for money pricing
✓ loyal following
✓ Own brand of merchandise, which is both trendy and
individualistic.
✓ new introductions every week
✓ variety of designs and styles
✓ exciting mix with a range extending from stylized clothes,
footwear and accessories for men, women and children to well-
co-coordinated table linens, artefacts, home accessories and
furnishings.
✓ Well-designed interiors, sprawling space, prime locations,
lovely coffee shops add to the customers’ shopping experience.
Weakness:
Opportunities:
Threats:
INDIAN CONSUMERISM
The lifestyle and profile of the Indian consumer is going through a rapid
transformation. The population of India is young, energetic and full of
enthusiasm. 50% of the Indian population is under the age of 25. There
has been a transition from price consideration to quality and design, as
the focus of the customer has changed. The upper and middle- class
population of today needs a feel good experience even if they have to
spend a little more for that. People are moving towards luxury and want
to experiment with fashion and technology. There is an increasing need
of better apparels, cars, mobile phones and consumer durables.
The food & grocery, clothing, consumer durables and books & music
sectors are the major retail sectors. However, unorganized small outlets
largely control the sector. Hence there is tremendous potential for the
organized sector in various formats, such as hypermarkets,
supermarkets, specialty stores, category killers and discount chains.
FINDINGS
1. Over or under-pricing their work can mean a very short future for
any business. Approximately 60% customers think that Price is
the most important factor while they go for shopping in a retail
stores
2. Quality in everyday life and business, engineering and
manufacturing has a pragmatic interpretation as the non-
inferiority, superiority or usefulness of something. This is the
most common interpretation of the term. The quality of a product
or service refers to the perception of the degree to which the
product or service meets the customer's expectations. Quality has
no specific meaning unless related to a specific function and/or
object. Quality is a perceptual, conditional and somewhat
subjective attribute. And in addition to that, more than 90% of
customers place quality as the most important factor than
anything else in the list to shop in a retail store.
3. More than 70% of customers place variety as an important factor
to shop in a particular retail store.
4. Brands name bears an important role while shopping of any type
of goods. So building a brand for a retail store is important as 80%
of customer still prefer to buy branded clothes in the retail store
instead of local or unbranded clothes.
CONCLUSION
Given the developments and prospects, the Indian retail sector is in its
nascent stage of evolution. While there are obstacles, there are clear
opportunities in modern retailing in India. There are many lessons that
India can take from other countries, which have moved along the path
of retail evolution. The retail sector has proved to be of immense
significant from macro-economic point of view. The sector’s
capability to give strong growth momentum by creating multiplier
effects on other sectors is not in dispute. It is now necessary to
cautiously expand and develop the sector, as the government, at
present, has done by permitting partial FDI in the sector. Given the
scope, the retail sector is certainly expected to fetch the long-term
economic benefits for the country.
What is to be seen is how organized retail can duplicate the same level
of personalized customer service levels offered by the unorganized
sector to have a higher conversion ratio.
The target audience for both the organized and unorganized retail
formats remains relatively the same. When shopping in malls, people
value the experience related to the trip the most and return most
frequently for the same. Besides, while enjoying the experience they
seem to buy high ticket and items of conspicuous consumption most
frequently.
1.LIMITATION OF DATA
2.LIMITATION OF TIME
The respondents did not reply the question with precision as they
were busy with their own work or they were not interested in
taking part in such a research. Employees sometimes feel
hesitated while telling about their view about their marketing
strategies.
LIMITED AREA
These limitations were very common and yet we came across these
with a positive note and the subsequent chapters in this report shall
explain the rationality behind the structural compilation.
BIBLIOGRAPHY
www.reliancemart.com
1. www.ril.com>bussiness
2. en.wikipedia.org/wiki/Reliance_Fresh
3. en.wikipedia.org/wiki/File:Reliance_Mart
4. www.scribd.com/.../marketing-strategies-adopted-by-
reliance-mart-vi...
5. www.thehindubusinessline.com/news/states/article3847767.e
ce
6. www.customercareinfo.in/reliance-retail
7. relianceworld.in/
8. www.offersincities.com/product.php?id_product=79
9. www.reliancedigital.in/returnpolicy.html
REFERENCES
1. The Hindu
2. Times of India
3. Economic Times
4. Reliance Fresh Bahubazar
5. Reliance Fresh Plaza
6. Reliance Mart Kanke
7. Reliance Footprint Upper Bazar