MBA SUMMER TRAINING Report (For the session 2009-11) on Studying Staples Category Management and Consumer Behavior and Competition Submitted in partial fulfillment of the requirement for MBA Degree Program of GautamBuddha Technical University, Lucknow
In
Reliance Fresh Limited
Submitted By:-
Submitted to:-
NARENDRA PRAKASH (MBA SEM-III)
Mr. JUNAID RIZAVI MBA FACULTY
GALGOTIA INSTITUTE OF MANAGEMENT & TECHNOLOGY KNOWLEDGE PARK PHASE-II
G. NOIDA
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CERTI ERTIFI FICA CATE TE
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DECLARATION
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ACKNOWLEDGEMENT
The outsta outstandi nding ng suppor supportt of the entire entire Staple Stapless Catego Category ry depar departme tment nt at Reliance Fresh helped me complete this project. My industry guide and mentor Mr. Sanjay Prakash guided and encouraged me throughout the project. And I would like to show my gratitude towards Mr. Ashish Srivastava, Mr. Ashish Sharma, Mr. Sanjay Pandey, Mr. Amit Katara. I owe special debt to them. I would like to thank all the Store Managers, DC Manager, the QA team, Head of PCS who provided me all the necessary information I needed. My summer internship programme - with Reliance Fresh - has made me indust industry ry ready ready rather rather indust industry ry specif specific ic to take take on the corpo corporat ratee world world with with excellence.
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PREFACE
Industry Exposure is the most crucial part of the management studies in which a student is Able to synchronize his technical knowledge with practical knowledge gained in the any of the Organization. I choose the project title “STUDYING STAPLES CATEGORY MANAGEMENT AND CONSUMER BEHAVIOU IOUR AND COMPETITI ITION “ in RELIANCE FRESH .which is a great learning experience
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TABLE OF CONTENTS CHAPTER NO.
PAGE NO.
TITLE
1.1.3
ABSTRACT INTRODUCTION COMPANY PROFILE Reliance Group Reliance Retail Limited Reliance Fresh Ltd.
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OBJECTIVE
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RESEARCH METHDOLOGY
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1 1.1 1.1.1 1.1.2
12 12 16 18 25
RETAIL SCENARIO IN INDIA SWOT ANALYSIS OF RETAIL INDUSTRY IN INDIA CATEGORY STAPLES
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URVEY FOR STUDYING CONSUMER BEHAVIOR S URVEY Introduction The North and Central Cluster The East Cluster Recommendations Presentation of Data analysis
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4.4
PRICE BENCHMARKING Introduction Activity Finding and Analysis Recommendations
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ASSORTMENT AND PLANOGRAMMING
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PROMOTIONS Introduction Finding and Analysis Conclusions Recommendations
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3.1 3.2 3.3 3.4 3.5 3.5.1 3.5.2 3.5.3 3.5.4 3.5.5 4 4.1 4.2 4.3
6.1 6.2 6.3 6.4
32 36 39
64 65 67 69 71
87 89 90 95
103 104 105 105
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7 7.1 7.2
PROCESSING OF STAPLES Introduction Recommendations
106 106 108
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CONCLUSION
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Appendix ABBREVIATIONS BIBLIOGRAPHY
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10 11
120 120
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ABSTRACT The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India' India'ss larges largestt priva private te sector sector enterp enterpris rise, e, with with busine businesse ssess in the energy energy and materials value chain. Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. Reliance Retail is the retail business wing of the Reliance business. Many brands brands like Reliance Fresh, Reliance Reliance Footprin Footprint, t, Reliance Reliance Time out, Reliance Reliance digital, Reliance Wellness, Relaince Trendz and Reliance Jewel come under the Reliance Retail brand. In November 2007, Reliance announced its foray into the branded jewelry market. Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. There are 124 stores in Delhi and NCR and lot more to come.
Delhi and NCR are divided into four clusters- the North and Central cluste cluster, r, the East cluste cluster, r, the South and Farida Faridabad bad cluster cluster and the West West and Gurgaon cluster. For the survey on consumer behavior, the North and Central and the East clusters were covered. Objective was to find the satisfaction level of custom customers ers with with the stores stores consid consideri ering ng parame parameter terss like like assort assortmen ment, t, qualit quality, y, pricing, promotions and service. A study about the competition was also done. Competition study was done for both the organized and unorganized sector. The majo majorr comp compet etit itor orss are are KBs KBs Fair Fair Pric Price, e, Big Big Appl Apple, e, more more., ., Sabk Sabkaa Baza Bazaar ar,, Spencers’, 6 Ten, Big Bazaar, Vishal Mega Mart. Prima Primary ry data data was collec collected ted throug through h questi questionn onnair aires. es. In the North North and Central cluster, 14 stores were surveyed and in the East, 16 stores were done.
The major findings of the survey are:
Customers are satisfied with the assortment Customers think that our prices are higher than that of the wholesale and local grocery stores. 9
Customers are satisfied with the quality of most of the private label SKUs. The customers want more attractive offers in staples category. Private label is used by a smaller segment but its demand can be increased. All SKUs are not available all the time. Customers are not aware of the difference between the quality of the loose and packed SKUs. Customers want better quality in loose SKUs. In loose, sugar is the highest selling SKU.
Recommendations:
Planogram should be strictly adhered to in every store. Store managers should check daily for stock levels and most important for KVIs More varieties in loose should be introduced, especially rice. SELs should be changed regularly as old SELs misguide the customers. The store manager should brief the staff about the major promos at the beginning of promo cycle. All the promos should be properly executed and they should be put up in both Hindi and English. Lal Quila and Kohinoor Basmati rice brands have good demand. They should be introduced in A catchment stores. Large packs of dry fruits should be removed. 500g packs of CTC (spices) MBQs should be raised. Brands of lower prices for 5l Mustard oil should be introduced. Fortune Soya 5l and 15l stock should be available in the stores, especially in the beginning of the month. All POS should be made functional in all the stores to improve the billing process.
Then, category category functions functions like assortmen assortment, t, planogram planogramming ming,, promotio promotions ns decision and execution, price benchmarking were studied. The DC visit helped understand the back-end process. How the inventory leve levels ls are are main mainta tain ined ed.. In DC, DC, thre threee proc proces esse sess are are invo involv lved ed-- Inbo Inboun und, d, Replenishment and Outbound. The staples DC are Kirti Nagar (for Delhi stores) and pataudi (for NCR stores). 10
A visit to the packing centre, in Jamalpur (Haryana) was also done. There, the whole process of the cleaning, sorting and packing of own label takes place. The process is both manual and automated. Rice, pulses, spices and dry fruits are packed.
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1. INTRODUCTION 1.1 COMPANY PROFILE "Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."
Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002
The Reliance Group, founded by Dhirubhai H. Ambani (19322002) 002),, is Indi India' a's s larg large est priv privat ate e secto ectorr ente nterpri rprise se,, wit with busine businesse sses s in the energy energy and materi materials als value value chain. chain. Group's Group's annual revenues are in excess of USD 22 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical inte ntegrat gratio ion n - in poly polye este ster, fibe fiberr inte interm rme ediat diate es, plas plasttics, ics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, gas, petr petrol ole eum refi refini ning ng and marke arketi ting ng,, pet petroch roche emi mic cals als (polyester, fiber intermediates, plastics and chemicals), textiles and retail. Reliance enjoys global leadership in its businesses, being the larg larges estt poly polyes este terr yarn yarn and and fibe fiberr prod produc ucer er in the the worl world d and and 12
among amon g the the to top p five five to ten ten prod produc ucer ers s in the the worl world d in ma majo jorr petrochemical products. The Group exports products in excess of USD 11 billion to more than 100 countries in the world. There are more than 25,000 empl em ploy oyee ees s on the the roll rolls s of Grou Group p Comp Compan anie ies. s. Majo Majorr Grou Group p Comp Compan anie ies s are Reli Relian ance ce Indus Industr trie ies s Limi Limite ted d (inc (includ ludin ing g ma main in subs subsid idia iari ries es Reli Relianc ance e Petr Petrol oleu eum m Limi Limite ted d and and Relia Relianc nce e Reta Retail il limited), Indian Petrochemicals Corporation Limited and Reliance Industrial Infrastructure Limited.
Vision "Gro "Growt wth h has has no limi limitt at Reli Relianc ance. e. I keep keep revi revisi sing ng my visi vision on.. Only when you can dream it, you can do it."
Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002 *
Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'. The US$ 20 billion Reliance Group is a living testimony to his indomi indomitab table le will, will, single single-mi -minde nded d dedica dedicatio tion n and an unrelen unrelentin ting g commitment to his goals.
Mission ”Growth through Commitments” Commitments” We care about :13
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Quality Research & Development Health, Safety & Environment Human Resource Development Energy Conservation Corporate Citizenship
Reliance believes that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Resp Respec ect, t, Fair Fairne ness ss,, Purp Purpos osef eful ulne ness ss,, Trus Trust, t, Resp Respon onsi sibi bili lity ty,, Citizenship and Caring. The The esse essenc nce e of thes these e co comm mmit itme ment nts s is that that each each em empl ploy oyee ee conducts the company's business with integrity, in compliance with applicable laws, and in a manner that excludes considerations of personal advantage. We do not lose sight of these values under any circumstances, regardless of the goals we have to achieve. To us, the means are as important as the ends.
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For Reliance… Growth is care for good health Reliance's occupational health centers carry out pre-employment and perio riodic medical chec heckups as well as other routine preventive preventive services. services. Specialised Specialised tests tests like biological biological monitoring, monitoring, heal health th risk risk as asse sess ssme ment nt stud studie ies s and and audi audits ts fo forr expo exposu sure re to vari variou ous s ma mate teri rial als s are are also also perf perfor orme med. d. Heal Health th educa educati tion on and awareness form an integral part of the health care programme at Reliance Growth Is Care for Safety We believe that the safety of each employee is the responsibility of the individual as well as of the whole community of employees Growth is care for the environment Reliance believes that a clean environment in and around the workplace fosters health and prosperity for the individual, the group and the large rger community to which they belong. ng. Enviro Environme nmenta ntall protec protectio tion n is an integr integral al part of the plannin planning, g, desi design, gn, co cons nstr truc ucti tion on,, oper operat atio ion n and and ma main inte tenan nance ce of all all our our projects. Growth is conservation At Reliance, energy conservation efforts seek to reduce the unit cost co st of fuels fuels and and to im impro prove ve effic efficie ienci ncies es in ener energy gy inte intens nsive ive processes. Growth is betting on our people Reliance builds with care a workplace that proactively fosters professional as well as personal growth. There is freedom to expl explor ore e and and lear learn; n; and and ther there e are are oppo opport rtuni uniti ties es that that insp inspir ire e initiative and intrinsic motivation. We believe that people must dream to achieve, that these dreams will drive the company's excellence in all its businesses. Reliance thinks, behaves, lives and thrives with a global mindset, encouraging every employee 15
to reach his / her full potential by availing opportunities that arise across the group.
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1.1.1 RELIANCE GROUP The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'. The US$ The US$ 12 125 5 bill billio ion n Reli Relian ance ce Grou Group p is a livi living ng test testim imon ony y to his his indomitable will, single-minded dedication and an unrelenting commitment to his goals.Group's annual revenues are in excess of US$ 34 billion. The flagship company, company, Reliance Reliance Industries Industries Limited, Limited, is a Fortune Fortune Global 500 company company and is the largest private sector company in India. All of Reliance Group production and services ventures have one common feature – global scale operations employing state-of-the-art technology in all fields. The company is truly emerging as a well diversified conglomerate with global competence in technology, management and financial capabilities to meet the needs of a rapidly growing Indian market. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pur pursu sued ed a stra strate tegy gy of back backwa ward rd vert vertic ical al inte integr grat atio ion n - in po poly lyes este ter, r, fibr fibree interm intermedi ediate ates, s, plasti plastics, cs, petroc petrochem hemica icals, ls, petrol petroleum eum refin refining ing and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail. Relian Reliance ce enjoys enjoys global global leader leadershi ship p in its busine businesse sses, s, being being the larges largestt polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. The Group exports products in excess of US$ 20 billion to 108 countries in the world. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial Infrastructure Limited. 17
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1.1.2 RELAINCE RETAIL LIMITED
Mr. Muk Mukesh esh Ambani Ambani,, Chairm Chairman an and Managi Managing ng Direct Director, or, Relian Reliance ce Indust Industrie riess Limited (RIL) Reliance Retail is the retail business wing of the Reliance business. Many brands brands like Reliance Fresh, Reliance Reliance Footprin Footprint, t, Reliance Reliance Time out, Reliance Reliance digital, Reliance Wellness and Reliance Jewel come under the Reliance Retail brand. In November 2007, Reliance announced its foray into the branded jewelry market. On June 26, 2006, Mukesh Ambani (Ambani), Chairman and Managing Director, Reliance Industries Limited (RIL), announced his company's plans to foray into the retail sector with an initial investment of US$5.6 billion. Calling this an idea which has the potential to revolutionize the Indian socio-economic framew framework ork,, he said said "Conce "Conceptu ptuall ally, y, Relian Reliance ce is creati creating ng a virtuo virtuous us circle circle of prosperity by bringing farmers, small shopkeepers and consumers in a win- win par partn tner ersh ship ip.'.''' He was was spea speaki king ng at the the 32 32nd nd annu annual al gene genera rall meet meetin ing g of the the company, here. "A new new comp compan any, y, Reli Relian ance ce Reta Retail il Ltd. Ltd. (RRL (RRL)) will will spea spearh rhea ead d this this revolution. Reliance Industries will have a 100 per cent stake in RRL, save for employee stock options," Reliance Industries stated in a press release. Given the overarching nature of this initiative, RRL would entail an equity investment to the extent of Rs. 10,000 crore ($2.24 billion). It would have to expe expend nd more more than than Rs. Rs. 25 25,0 ,000 00 cror croree ($5. ($5.60 60 bili bilion on)) in the the year yearss to come come.. 19
"Organised retailing is a new business initiative of Reliance that signifies a defi defini ning ng po poin intt in its its hist histor ory. y. Th This is mark markss the the full full flow flower erin ing g of RIL' RIL'ss basi basicc philo philosop sophy: hy: share share and prosp prosper. er. With With this this new initia initiativ tive, e, Relian Reliance ce will will forge forge strong and enduring bonds with millions of farmers and transform its relationship with consumers to a new level. Organized Retailing, along with the next generation distribution system, is at the core of this transformational initiative. This idea evolves from the new paradigm in the consumption of products and services in India,'' said Mr. Ambani Reliance Retail would build a business that would focus on "competitive offer offering ings'' s'' to Indian Indian consum consumers ers across across severa severall vertic verticals als:: Integr Integrate ated d food food and grocery, items of daily household consumption, apparels and footwear, electronic goods, lifestyle products and services, home essentials and improvements, farm implements and inputs, distribution of energy products and services, distribution of travel and financial services, entertainment and leisure experiences, health and well-being products and services and educational products and services. It would develop partnerships to bring the best of luxury brands from all over the world to India and it would also develop linkages with opportunities in agriculture and food processing. The company would have a pan-India footprint covering 1,500 cities and towns and embracing all strata of t he society. Reliance's retail venture was expected to be India's equivalent of Wal-Mart Stores Inc. (Wal-Mart), as it planned to cover the entire retail ambit. RRL was expected to have its presence across India. Reliance proposed to acquire 10,000 hectares of land in Haryana and planned to extend its reach across 1,500 Indian cities with different retailing formats such as warehouse clubs, hypermarkets, supermarkets, specialty stores, and convenience stores. Reli Relian ance ce also also had had plan planss to op open en rest restau aura rant nt ou outl tlet etss with within in its its stor stores es.. Reliance expected a revenue target of US$ 20 billion through its retail operations by 2010. Over a span of five years, RRL expected a 20 percent return on investment.4 Reli Relian ance ce also also had had plan planss to ente enterr the the pers person onal al fina financ ncee serv servic ices es through its retail arm in order to tap the growing consumer loan segment. In November 2006, RRL launched its first set of 11 retail stores under the 'Reliance Fresh' format at Hyderabad. The 'Reliance Fresh' store would have an average space of 2,300 sq. ft and 20
provi provide de fresh fresh fruit fruits, s, vegeta vegetable bles, s, grocer groceries ies and dairy dairy produ products cts to consum consumers ers.. Gunender Kapur (Kapur), President and Chief Executive, Foods Business, RIL, said, "Our intention is to bring high quality fresh food to the customers at an affordable price." . Most Mo st of the the sta stapl ples es and and dai dairy ry prod produc ucts ts are are und under er its its own own priv privat atee lab label el brands — ‘Reliance Select’. Now it has even launched R- select Noodles which are priced lesser than the competitor Nestle’s Maggi. Private labels offer far better profit margin to the retailer than branded products of FMCG companies. Reliance wants to build a high-profitability business and food is, perhaps, the best venture to start. That is because the Indian food supply chain is grossly inefficient. There are several intermediaries, each of whom adds his own profit margin to the cost. Besides, there is huge wastage in transit. This offers potential for savings and profits. To reduce the cost and increase the profit it has been sourcing out its requirements from the farmers. The main aim of the Reliance is to eliminate the intermediaries in the sector and reduce the cost. Smaller stores have two advantages. They bring down the cost of real estate (and increase profits). It is easier to find space for small convenience stores in a quiet neighborhood than for supermarkets in high streets.
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Targets 90,000 Crore Turnover by 2010
RIL has set a revenue target of Rs 90,000 crore (US$ 20 billion) from its reta retail il op oper erat atio ions ns by year year 20 2010 10,, almo almost st 10 per per cent cent the the size size of the the curr curren entt organised retail business in the country. It dwarfs India's current numero uno in organised retail chain, Pantaloon Retail, which currently has an annual turnover of US$ 240 million from its 84 outlets spread over 30 cities and has projected revenues of US$ 2 billion by 2009. RIL's plans include a pan-India footprint of its stores, across multiple formats and categories, in more than 800 cities and towns, and in record time. Multiple Formats with Investment of Rs 30,000 Crore
The brains behind the mega retail venture have been able to ideate and develo develop p a low cost cost pan-In pan-India dia supply supply-ch -chain ain model model that that will will involv involvee massiv massivee economies of scale. The strategy is to set up a chain of hypermarkets, supermarkets, discount stores, speciality stores, and convenience store formats in 800-odd cities and towns across the length and breadth of the country at an investment of around Rs 30,000 crore (US$ 8 billion). The retail foray will have almost all the leading Indian and international brands, and possibly a sizeable presence of private labels as well, and would clearly try and build a loyal customer base with tens of millions of consumers from across the country. While the sheer scale of operations will ensure Reliance's retail business a 20 per cent return on investment over a span of five years, its rural low cost-high return investment will ensure sufficient competitive edge vis-à-vis purely urban retail operators.
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First Phase: 1,575 Outlets by March 2007
The first phase will see around 1,575 retail outlets coming up in just three months – between December 2006 and March 2007. The first of these outlets will be opening around September this year, either in Mumbai or Ahmedabad. Reliable sources say that the retail business would start with 20 destination points in A-class cities in India, and soon expand to over 100 destinations in a very short span of time. On an average, each of these retail centres could be spre spread ad ov over er 10 100 0 acre acress of land land that that woul would d ho hous usee leis leisur uree and and ente entert rtai ainm nmen entt facilities, small hospital complex, eateries and a big mall. RIL insiders are, of course, tight-lipped about everything. Further, it has been reported in the media circles that initially the company has targeted the five states of Maharashtra, Gujarat, Punjab, West Bengal and Andhra Pradesh for the first phase of retail rollout. Gradually, in the next two to three years, Reliance Retail plans to establish a pan-India presence of all its formats, targeting not only the major metros and cities, but also the second-tier towns and semi-urban and even rural centres. Quite clearly then, the number – 800 towns and cities – has been very strategically and meticulously worked upon.
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F&B to Generate 40% Sales Revenue, Direct Employment to Over 5 Lakh
It is internally estimated that the food and beverages category will account for as much as 40 per cent of the total revenue generated from the Reliance Retail venture and that the company plans to give direct employment to more than five lakh lakh people people.. About About 23 CEOs CEOs across across multip multiple le funct function ionss and catego categorie riess will will oversee the retail operations. The pop popula ularr forma formatt in towns towns and rural rural settin settings gs will will be hyp hyperm ermark arkets ets,, which will be warehouse-style stores spread over 150,000 sq.ft and will be selling products ranging from consumer electronics and groceries to fresh food and clothes. There will also be smaller 75,000 sq.ft supermarkets. RIL has roped in leading retail consulting firm, Technopak Advisors, and management consulting firm AT Kearney to provide specific and specialised strategic inputs, and advise the top management of Reliance Retail during the entire planning, design and implementation, and execution stages of the massive retail foray, reports say.
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Evaluation of Category Mix & Formats
Relian Reliance ce Retail Retail has studie studied d the potent potential ial of all possib possible le catego categori ries es of products and services retailing. In fact, it is keen on capturing market leadership in every possible retail category, once it has rolled out and consolidated its retail operations. The market insights and intelligence derived from this effort has helped Reliance to evaluate each category on its market-size, growth rate and potential as being one of the main determinants for its retail rollout operations. This can clearly be taken as a precursor to Reliance's understanding of the retail market in India, in terms of clear understanding of: • The primary sources of procurement of products • Average inventory (retail and warehouse) that is normally maintained at retail stores across various categories • Seasonal sales variation in categories across different regions in the country • Shrinkage and wastage of products and percentage of returns thereon • The number of SKUs across brands and categories • The credit details (in terms of the number of days and cash) that retailers normally get from their supplier across various product categories; and • The average gross margin (percentage of MRP) that the retailer generally gets on its products. Apart from food and grocery, which will contribute 40 percent to total sales, the company is strongly looking at apparel, lifestyle, consumer durables, and leisure and entertainment operations as its major drivers of business. It is considering the establishment of both multi-brand as well as exclusive brand outlets for certain categories of operations. While While most most of outlet outletss will will be compan company-o y-owne wned, d, the conven convenien iencece-sto store re format could possibly be the only exception to be operated through a franchisee route in collaboration with mom-and-pop kirana shop-owners, which in itself is a novel concept that could work very well in the Indian context.
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1.1.3 RELIANCE FRESH
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. India. The (Relia (Reliance nce Fresh) Fresh) store store is for for everyo everyone. ne... .. Prices Prices are afford affordabl ablee for everyone," Reliance Industries Ltd president and chief executive (foods business) Gunender Kapur told reporters after unveiling the Reliance Fresh brand.
The first Reliance fresh store was opened in Hyderabad in November 2006. Reliance Fresh outlets are in Bangalore, Chennai, New Delhi, Gurgaon, Farida Faridabad bad,, Hydera Hyderabad bad,, Jaipur Jaipur,, Mumbai Mumbai,, Madura Madurai, i, Cochin Cochin,, Trichu Trichur, r, Calicu Calicut, t, Chandigarh, Ludhiana. The Reliance Fresh supermarket chain is RIL’s Rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011. Reliance Fresh stocks fresh fruits and vegetables, staples, fast moving consumer goods and dairy products. The stores are already selling over 1,000 tonnes of fresh produce daily and also 250 categories of commodities. The company is approaching farmers directly for the procurement of produce, seeking to reduce the 40% wastage that occurs through the traditional supply chain. Besides, the stores provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. The company also has plans to train students and housewives in customer care and quality services for part-time jobs. The Reliance Fresh stores are convenience stores with an area of about 1000 to 4000 sq ft. In Reliance Fresh stores, the commodities are classified into various categories like Staples, Fruits and Vegetables (F n V), Dairy, Processed Foods (PF), Food and Beverages, House ware, Personal Care etc. Few stores have apparel section also which has very low priced range and good quality clothes.
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2. Objective of the study The objective of the study is to evaluate consumer needs and behavior with respect to retail stores in NCR for Reliance Retail ltd. td. and and to give give reco recom mmendat ndatio ions ns fo forr the the bet betterm terme ent of customer service. Any project work to be carried out in any organization or in any fieldwork in the market has certain per decide decided d and specif specified ied object objective ive,, which which is to be attain attained. ed. The whole survey or fieldwork is designed in accordance with that objective .The whole survey is broken down in four various parts like four clusters- the North and Central cluster, the East cluster, the South and individually Farida Faridabad bad cluste clusterr and the West West and Gurga Gurgaon on cluste cluster. r. which individually contribute to that project's objective. The objective laid down helps to solve the problems that exist in the organization. This pro problem blem pro provide vides s the the fo foun unda dati tion on fo forr the proj proje ect and and the the projective. The The vari variou ous s thin things gs that that are are to be done done in any any surv survey ey,, the the various components of the problem and the project objective prov provid ide e the the base base fo forr deci decidi ding ng the the sc scop ope e of the proj projec ect. t. The The scope of the project varies from project to project, the scope are the limit with in which the person carrying out the project has to work. It provides the person various things that are to be done. Unde Un derr proj projec ectt it is basi basica call lly y the the subd subdiv ivis isio ion n of the the proj projec ectt objective.
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3. RESEARCH METHDOLOGY 3.1 RETAIL SCENARIO IN INDIA India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. The Indi The Indian an reta retail il mark market et,, whic which h is the the fift fifth h larg larges estt reta retail il dest destin inat atio ion n globally, according to industry estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015. Simultaneously, modern retail is likely to increase its share in the total retail market to 22 per cent by 2010. Continuing the robust growth of the organized retail in India, according to the Credit Rating and Information Services of India, the industry raked in US$ 25.44 billion turnover in 2007-08 as against US$ 16.99 billion in 2006-07, a whopping growth rate of 49.73 per cent. India has one of the largest numbers of retail outlets in the world. Of the 12 million retail outlets present in the country, nearly 5 million sell food and related products. Thought the market has been dominated by unorganized players, the entr entry y of do dome mest stic ic and and inte intern rnat atio iona nall orga organi nize zed d play player erss is set set to chan change ge the the scenario. Organized retail segment has been growing at a blistering pace, exceeding all previo previous us estima estimates tes.. Accord According ing to a study study by Deloit Deloitte te Haskin Haskinss and Sells, Sells, organized retail has increased its share from 5 per cent of total retail sales in 2006 to 8 per cent in 2007. The fastest growing segments have been the wholesale cash and carry stores (150 per cent) followed by supermarkets (100 per cent) and hypermarkets (75-80 per cent). Further, it estimates the organized segment to account for 25 per cent of the total sales by 2011. For a long time, organised retail in India remained the attraction of only a few enterprising Indian entrepreneurs, who took the plunge into the deep sea of a hitherto uncharted territory. territory. It is only in the last 10-15 years that the retail sector's inherent attractiveness started catching the attention of large corporate houses in 29
India, like the Raheja Group, RPG Enterprises, the Piramal Group etc. But with due respect to all of them, their vision has remained conservative and they have been modest in scaling up their retail business models to take it to the next level of operations with a pan-India presence. What What clea clearl rly y lack lacked ed was was the the leve levell of inve invest stme ment nts; s; the the slow slow pace pace of consol consolida idatio tion n and indeci indecisiv sivene eness ss in experi experimen mentin ting g and migrat migrating ing betwee between n multiple formats, categories and channels. This has prevented them from reaping the true benefits of modern retailing. What is it that we can label as the compelling drivers of this new retail thrust in India with a large corporate house like Reliance Industries announcing big, not to mention international retail giants who are getting impatient to enter India? The first driver is a self-sustaining buoyant Indian economy that is growing at eight per cent a year. The second is that as the economy grows and expands, the consumption habits and patterns of people also change – and it is changing real fast in India. The third important driver of organized retail is the country's demography – India is home to the largest and the youngest population in the world. India's 300 million-odd middle-class, the real consumers, is catching the attention of the world. •
•
•
30
TOTAL AND ORGANIZED RETAIL MARKET SIZE IN INIDA
31
32
3. 2 SWOT S WOT ANALYSIS ANALY SIS OF RETAIL INDUSTRY I NDUSTRY IN INDIA Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. Strengths Huge population, increasing per-capita income and changing consumer habits - all these developments have culminated in the booming of the retail sector in India. Increasing per-capita income has led to the boom of retail sector in India. The changing consumer buying behavior and the increasing number of shaopping malls and other format stores is another strength of the Indan retail industry. The huge population and the diversified culture is also one factor for the growth of the sector. A large young working population with median age of 24 years. The retail industry is providing employment generation. generation. The assortment is getting better. People are exposed to different cultures and they want to try different products and this has led to the introduction of variety of products in the induatry. India retail industry is expanding itself most aggressively. By 2010, it is estimated that India may have 600 shopping malls. The awareness and the acceptability about hre retail market is increasing. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually.
33
Weaknesses
Retail is still not a recognized industry in India. According to a study in 2006, total retail sales is Rs. 930,000 Crores, out of which the organized retail sales only of Rs. 3000 Crores. The real estate sector is increasing the property’s prices and this is affecting the overall profits. Because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far . FDI is not allowed in Retail and the foreign players like Walmart, Carrefour are entering by joining hands with Indian retailers. The lack of infrastructure and manpower is one of the challenges faced by organized retail in India. This sector lacks skilled and trained manpower. The organised retail in India is facing stiff competition from the local kiranas and the wholeasalers. Consumers still prefer them as the better option for saving their pocket.
34
Opportunities
The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment. The organised retail sector is expected to grow to US $ 70 billion by 2010. Indian retailers like Reliance Retail, Pantaloons etc. are strengthening the retail sector. Reliance Retail, for instance, has chalked out a plan to roll out about 5,500 stores of all kinds in 800 cities, 85 logistics centres and 1,600 farm supply hubs. AV Birla Group is looking at pumping in Rs 15,000-20,000 crore (Rs 150200 billion) -- with an initial investment of Rs 5,000 crore (Rs 50 billion) in the next few years. Many foreign retailers like Wal-Mart, Tesco are entering Indian retail industry. The market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. A number of foreign brands including French Connection, Sanrio of Hello Kitty fame, Jimmy Choo, La Pearla and Calvin Klein among others have already lined up for permission to infuse foreign direct investment through the single-brand retail window.
35
Threats
Retailing is a low-margin, high-volume, commodity business where profitability gets strained as competition intensifies. And if wrong choices are made regarding the location or the formatting of the store, woes betide the retailer. Another threat is the vexingly high real estate prices, the loosely-knit distribution networks in India's hinterland. The near-absence of any modern supply chain logistics, shortage of skilled personnel, and a regulatory system that resembles a patchy quilt more than anything else. Availability of quality retail space will be a key determinant for the growth of the sector. With most Indian cities undergoing rapid urbanisation, spiralling rental costs has most retailers worried already. The political intervention in this sector may hinder its groeth. As in the case of Reliance Fresh, its stores were closed down in Noida, UP because of Mayawati. The competition from the unorganized retail is stiff. Customers have been shopping from the local stores and wholesalers, mainly in Food sector for decades and still have not accepted the organized retail completely.
36
3.3 CATEGORY The major categories in Reliance Fresh stores are:
Staples Processed Foods Fruits and Vegetables (FnV) Food and Beverages Dairy Personal Care (PC) House ware Cosmetics Home Care Confectionary
37
Category-wise contribution contribution in the sales of Relaince Fresh
38
FOOD
PROCESSED FOOD
FRUITS & VEGETABLES
STAPLES
DAIRY
FOOD & BEVERAGES
NON VEGETERIAN
Sub-categories
39
3.4 STAPLES A. INTRODUC INTRODUCTION TION A staple food is a food that forms the basis of a traditional diet. Staple foods vary from place to place, but are typically inexpensive starchy foods of vegetable origin that are high in food energy (Calories) and carbohydrate and that can be stored for use throughout the year. The staple food of a specific cuisine may commonly be be served as part of every meal. Most staple foods derive derive either from cereals such as wheat, barley, rye, maize, or rice, or starchy root vegetables such as potatoes, yams, taro, and cassava. Other staple foods include pulses (dried legumes) etc. In India, Rice and Pulses are most commonly eaten as cooked entire grains; wheat and some other cereal are milled into flour. In simple language, Staples are nothing but products that we use on a daily basis. These products are raw in nature. We need to cook staples to consume them, except dry fruits. Basic food products such as Rice, Wheat, Oils, Pulses (Dal (Dals) s) Sp Spic ices es,, Salt Salt,, Su Suga garr and and Dry Dry Frui Fruits ts are are grou groupe ped d un unde derr one one big big umbrella called STAPLES. Overview of Staples market: Staples Market Size - Rs.2,70,000 crores Staples business will exceed Rs.15,000 crores by 2010 Importance of Staples: • It is the largest business in foods as it consists of items that are consumed in every meal. • In India, culture is diversified and so are the eating habits. So, there’s a demand of huge variety in staples market. • Staples category is one of the sections that consumers can’t do without. So, it can be sold in each and every market. • There’s a huge private label opportunity.
40
41
Value of the staples sub-categories sub-categories in market
42
B. SUB-CATEGO SUB-CATEGORIES RIES OF STAPLES STAPLES 1) 2) 3) 4) 5) 6) 7)
Rice Pulses Whea Wheatt and and Flo Flour ur Salt Salt and and Spi Spice cess Edib Ed ible le Oils Oils Sugar Dry Dry Frui Fruits ts
1) RICE Rice is a cereal foodstuff which forms an important part of the diet of many peo peopl plee worl worldw dwid ide. e. Rice Rice is a stap staple le for for a larg largee part part of the the worl world' d'ss hu huma man n population, especially in tropical Latin America, and East, South and Southeast Asia, making it the second-most consumed cereal grain.[3] A traditional food plant in Africa, Rice has the potential to improve nutrition, boost food security, foster rural development and support sustainable landcare.[4] Rice provides more than one fifth of the calories consumed worldwide by humans.[5] In early 2008, some governments and retailers began rationing supplies of the grain due to fears of a global rice shortage.[6][7] shortage.[6][7] Rice is the staple food for 65% of the total population population in India. The Indian population was about 1 billion people in 2000 and is still growing at a high rate (1.7% per year). Although the country exports several varieties of rice, many scientists have expressed concern that current Indian rice production techniques cannot sustain the growing domestic population. India has a large number of rice dishes and many of them are very simple to prepare.
43
Share of Major States in the Total Production of Rice
27% 44
Classification Classification of Rice: Rice is broadly classified into Basmati and Non-basmati. These two are further sub-divided into raw, par-boiled, boiled, flavored etc. The quality is decided based on three parameters: Life- Longer the life better is the quality & hence higher price for same rice when aged. Aroma- Variet Varieties ies like like Basmat Basmati, i, Jeeras Jeerasar, ar, Ambem Ambemoha ohar, r, Cinor, Cinor, etc. etc. are considered rice rice with aroma / scented or flavor Grain Length – Longer the grain – better the quality eg. Basmati Rice
2) WHEAT AND FLOUR Wheat is the dominant grain of world commerce. It is easily transported and stored and it is used to produce a large variety of foods that include many kinds and types of breads, cakes, noodles, crackers, breakfast foods, biscuits, cookies, and confectionary items. Wheat is the staple food of millions of people. It is also an important part of the daily diet of many millions more. Only rice challenges wheat for the title of most important food grain in the world. Wheat is a worldwide cultivated grass from the Levant area of the Middle East. Globally, after maize, wheat is the second most produced food among the cereal crops; rice ranks third. Wheat grain is a staple food used to make flour for leavened, flat and steamed breads; cookies, cakes, pasta, noodles and couscous; and for fermentation fermentation to make beer, alcohol, vodka vodka or biofuel. Wheat is planted planted to a limited extent as a forage crop for livestock, and the straw can be used as fodder for livestock or as a construction material for roofing thatch.
45
Production Scenario:
The world wheat market is enormous. Annual global wheat consumption is in excess of 550 million tonnes (20 billion bushels). Farmers of the world produce almost 20 times as much wheat as is produced in Canada to satisfy this growing appetite. Approximately two-thirds of the wheat produced in the world is used for human food food and and abou aboutt on onee-si sixt xth h is used used for for live livest stoc ock k feed feed.. Indu Indust stri rial al uses uses,, seed seed requireme requirements, nts, and post-harv post-harvest est losses losses account account for the remaining remaining withdrawals withdrawals from the world wheat granaries.
46
Wheat - Different Classes for Different Uses • Hard Red Winter Wheat and Hard Red Spring Wheat – Produce a high-grade flour used to make bread, hamburger buns and biscuits. • Soft Wheat – Produces flour that is desirable for baked goods that have a tender, flaky or crisp texture, like cakes, doughnuts, cookies and crackers. • White wheat – Is a soft wheat that produces flour used for cereals, cookies and cakes • Durum – Whic Which h cont contai ains ns more more prot protei ein n than than any any othe otherr clas classs -- prod produc uces es a coarse, golden amber product called semolina that is mixed with water to form a dough to make pasta products like spaghetti, noodles and macaroni.
Flour
In India, the flour consumption is concentrated more on Atta or Wheat flour. The other flours used are maida, sooji, rice flour, ragi flour, besan, urad flour, jowar / bajra flour, wheat broken etc. Varieties of Flour Maida is a by product of wheat which contains the bulk of endosperm and the innermost wall. Ground into a very fine white powder, this is highly refined flour with all carbohydrate and very little of fibre, minerals and the vitamins. Rava is the coarsely ground wheat product – with the fibre rich wall and the endosperm. The Broken Wheat has the full grain broken coarsely into 5-8 pieces with no refinement. Besan is Powdered Channa Dal – it is protein rich flour. • Idly Rava (Boiled rice) for making the idly / dosa batter & also Upma. Upma Sooji – which is medium sized grain for making upma •
•
•
• •
47
3) PULSES Pulses are defined by the Food and Agricultural Organization of the United Nations (FAO) as annual leguminous crops yielding from one to twelve grains or seeds of variable size, shape and color within a pod. Pulses are used for food and animal feed. The term pulses, as used by the FAO, is reserved for crops harvested solely for the dry grain. This therefore excludes green beans and green peas, which are considered vegetable crops. Also excluded are crops that are mainly grown for oil extr extrac acti tion on (oil (oilse seed edss like like soyb soybea eans ns and and pean peanut uts) s),, and and crop cropss whic which h are are used used exclusively for sowing (clovers, alfalfa). Pulses are important food crops due to their high protein and essential amino acid content. Like many leguminous crops, pulses play a key role in crop rotation due to their ability ability to fix nitrogen. nitrogen. Indian pulse market is very price sensitive sensitive market. Production Scenario
World Scenario o Dry Edible Beans account for 30% of world pulse trade o Field Peas account for 40% of world pulse trade o Canada is emerging emerging as a major exporter exporter in world world World Production Data
Pulse type
Percentage of total output
Dry edible beans
33
Field peas
20
Chick Peas
13
Broad Beans
7
Lentils, Cowpeas, Pigeon peas
6
Others
21
48
Indian Scenario
Share of Major States in the total Area under Pulses Varieties Of Pulses & Their Uses Whole Pulses / Dals – The pulses / dals that are consumed in whole form. e.g.. Channa, Rajma, Moong, Masoor, Groundnut, Urad, Lobia-chawli, etc. for making channa masala, rajma masala, etc. Split Pulses / Dals – The Pulses / dals that are consumed in split form e.g. Toor Dal, Channa Dal, Urad Dal, Moong Dal, Bengal Fried Gram
6 6% 49
4) SPICES
A spice is a dried seed, fruit, root, bark or vegetative substance used in nutritionally insignificant quantities as a food additive for the purpose of flavoring, and sometimes as a preservative by killing or preventing the growth of harmful bacteria [1]. Pungent or aromatic seasonings obtained from the Bark, Buds, Fruit, Roots, Seeds or Stems of various plants & trees. Herbs usually come from the leafy part of a plant. Spices add aroma, flavour, taste to foods and act as preservative. In the kitchen, spices are distinguished from herbs, which are leafy, green plant parts used for flavoring purposes. Herbs, such as basil or oregano, may be used fresh, and are commonly chopped into smaller pieces. Spices, however, are dried and often ground or grated into a powder. Small seeds, such as fennel and mustard seeds, are used both whole and in powder form.
Classification of Spices Wh Whole ole Spices Spices- Cori Corian ande der, r, Chil Chilie ies, s, Tu Turm rmer eric ic,, Cumi Cumin, n, Blac Black k Pepp Pepper er,, Mustard, Black Cardamom, Cinnamon, Tamarind, etc. Whole Spices – Powder- Red chilly powder, Coriander powder, Turmeric powder, Black pepper powder Spice Masala / Blend- Chaat Masala, Channa Masala, Rajma Masala, Sambar Masala, Rasam Rasam Masala, Biryani Masala, Ginger Ginger Garlic Paste, etc. Other Spices- Herbs e.g. Tej Patta (Bay Leaf) Varieties Of Spices Fruit Spices – Cardamom, Paprika Bark Spices – Cinnamon, Leaf / Herbs Spices – Bay Leaf, Basil, Parsley, Oregano, Rosemary, Mint Flower Buds Buds / Spices Spices – Cloves, Saffron Saffron Root Spices Spices – Ginger, Turmeric Seed - Nutmeg, Cumin, Black Pepper, Fenugreek, Fenugreek, Mustard Spices overview in India • India Largest Producer & Major Exporter Of Spices • India produces around 2.5 million tonnes of different spices • Valued at approximately US $ 3 billion and holds the premier position in the world • Climates - From tropical to sub-tropical to temperate-almost all spices are grown in this country. 50
Produced by all of the 25 states and seven union territories of India, at least one spice is grown in abundance. • Spices exports are consistently moving up during the last one decade thanks to the activities of the Spices Board. •
5) EDIBLE OILS • Oil is is an essential essential requi requiremen rementt of body system system as it it provide providess Calories Calories.. • Oils are essent essential ial cooki cooking ng medium, medium, used for Frying, Frying, Deep Deep Frying Frying,, Salad Salad Dressing, Seasoning, etc. • Oils Oils are also also calle called d as “Edibl “Ediblee oils”, oils”, fur furthe therr classi classifie fied d as: – Filtered Oil – Refined Oil Difference Of Filtered and Refined Oil: Filtered Oil- Raw oil is obtained simply through mechanical pressing. The solids solids are filter filtered ed to prepar preparee filter filtered ed oil. oil. For exampl example: e: ground groundnut nut oil, oil, mustard oil, til (gingely) oil, coconut oil & olive oil Refi Refine ned d Oil Oil - Refi Refine ned d oil oil is free freed d from from impu impuri riti ties es by givi giving ng vari variou ouss treatments to raw oil. Refined oil is virtually tasteless and odourless & colourless colourless.. For example: sunflower sunflower oil, Soya oil, Kardi Kardi oil, Blend oil, Rice Bran oil and Palm Oil. According to the USDA, the total world consumption of major vegetable oils in 2000 was:
51
Oil source
Soybean Palm Rapeseed
World consumption Notes (million tons) Acco ccoun unts ts for abo about hal half of worl orldwid dwidee edib edible le oil oil 26.0 production. The most widely produced tropical oil. Also used to 23.3 make biofuel. One of the most widely used cooking oils, Canola is a 13.1 (trademarked) variety (cultivar) of rapeseed.
Sunflower 8.6 seed
Common cooking oil, also used to make biodiesel.
Peanut
Peanut oil Mild-flavored cooking oil.
4.2
Cott Cotton onse seed ed 3.6 3.6
A major food oil, often used in industrial food processing.
Palm Kernel
2.7
From the seed of the African palm tree
Olive
2.5
Used in cooking, cosmetics, soaps and as a fuel for traditional oil lamps
52
As shown in the below given graph, world oilseed production has been increasing
5) SUGAR Sugar is a class of edible crystalline substances including sucrose, lactose, and fructose. Common table sugar (sucrose) is made from sugar beets or sugar cane. Human taste buds interpret its flavor as sweet. Sugar as a basic food carbohydrate primarily comes from sugar cane and from sugar beet, but also appears in fruit, honey, sorghum, sugar maple (in maple syrup), and in many other sources.
53
World Scenario
World Sugar Balance (m tonne, raw value)
2007/08
2006/07
Change in mt
in %
Production
170.308
166.030
4.278
2.58
Consumption
159.169
154.985
4.184
2.70
Surplus / Deficit
11.139
11.045
Import demand
45.496
46.070
-0.574
-1.25
Export availability
49.768
46.077
3.691
8.01
End Stocks
74.716
67.849
6.867
10.12
Stocks/Consumption ratio 46.94 in%
43.78
Indian scenario
India has been known as the original home of sugar and sugarcane. Indian mythology supports the above fact as it contains legends showing the origin of sugarcane. India is the second largest producer of sugarcane next to Brazil. Presently, about 4 million hectares of land is under sugarcane with an average yield of 70 tonnes per hectare. India is the largest single producer of sugar including traditional cane sugar swee sweete tene ners rs,, kh khan ands dsar arii and and Gur Gur equi equiva vale lent nt to 26 mill millio ion n tonn tonnes es raw raw valu valuee followed by Brazil in the second place at 18.5 million tonnes. Even in respect of white crystal sugar, India has ranked No.1 position in 7 out of last 10 years. Traditional sweeteners Gur & Khandsari are consumed mostly by the rural population in India. In the early 1930’s nearly 2/3rd of sugarcane production was utilised for production of alternate sweeteners, Gur & Khandsari. With better standard of living and higher incomes, the sweetener demand has shifted to white sugar. Currently, about 1/3rd sugarcane production is utilised by the Gur & Khan Khands dsar arii sect sector ors. s. Bein Being g in the the smal smalll scal scalee sect sector or,, thes thesee two two sect sector orss are are completely free from controls and taxes which are applicable to the sugar sector. The advent of modern sugar processing industry in India began in 1930 with grant of tariff protection to the Indian sugar industry. The number of sugar mills increased from 30 in the year 1930 - 31 to 135 in the year 1935-36 and the production during the same period increased from 1.20 lakh tonnes to 9.34 lakh tonnes under the dynamic leadership of the private sector. 54
Market Size : Rs. 50,000 Crores Demand : Sugar - 18 million tons (growing @4%/year) Jaggery / Khandsari – 9 million tons (growing @2%/year) No. of Sugar Mills – 566; Operational in current year – 453 2/3rd Sugar produced in 3 states (U.P., Maharashtra, Tamilnadu) Sugarcane Land 4.15 Million Hectares; Land Productivity 66 tons / Hectare (best in India 90 tons / Hectare) Livelihood to 5 Crores people 280 million tons Sugarcane 180 million tons to Sugar 11 million tons to Khandsari; 59 million tons to Jaggery; 30 million tons for Seed •
Types of Sugar:
Granulated Sugar - There are many different types of granulated sugar. Most of these are used only by food processors and professional bakers and are not available in the supermarket. The types of granulated sugars differ in crystal size. Each crystal size provides unique functional characteristics characteristics that make the sugar appropriate for the food processor's special need.
"Regul "Regular" ar" Sugar, Sugar, Extra Extra Fine Fine or Fine Fine Sugar Sugar- "Regular" sugar, as it is known to consumers, is the sugar found in every home's sugar bowl and most commonly used in home food preparation. It is the white sugar called for in most most cookbo cookbook ok recipe recipes. s. The food food proces processin sing g indust industry ry descri describes bes "regul "regular" ar" sugar as extra fine or fine sugar. It is the sugar most used by food processors bec becau ause se of its its fine fine crys crysta tals ls that that are are idea ideall for for bu bulk lk hand handli ling ng and and are are no nott susceptible to caking.
Fruit Sugar- Fruit sugar is slightly finer than "regular" sugar and is used in dry mixes such as gelatin desserts, pudding mixes and drink mixes. Fruit sugar has a more uniform crystal size than "regular" sugar. The uniformity of crystal size prevents separation or settling of smaller crystals to the bottom of the box, an important quality in dry mixes and drink mixes.
Bakers Special- Bakers Specials crystal size is even finer than that of fruit suga sugar. r. As its its name name sugg sugges ests ts,, it was was deve develo lope ped d spec specia iall lly y for for the the baki baking ng
55
industry. Bakers Special is used for sugaring doughnuts and cookies as well as in some commercial cakes to produce fine crumb texture.
Superfine, Ultrafine, or Bar Sugar- This sugar's crystal size is the finest of all the types of granulated sugar. It is ideal for extra fine textured cakes and meringues, as well as for sweetening fruits and iced-drinks since it dissolves easily. In England, a sugar very similar to superfine sugar is known as caster or castor, named after the type of shaker in which it is often packaged.
Confectioners ( Powdered ) Sugar- This sugar is granulated sugar ground to a smooth powder and then sifted. It contains about 3% corn starch to prevent caking. Confectioners sugar is available in three grades ground to different degrees of fineness. The confectioners sugar available in supermarkets is the finest of the three and is used in icings, confections and whipping cream. The other two types of powdered sugar are used by industrial bakers.
Coarse Sugar- The crystal size of coarse sugar is larger than that of "regular" sugar. Coarse sugar is normally processed from the purest sugar liquor. This processing method makes coarse sugar highly resistant to color change or Inversion (natural breakdown to fructose and glucose) at high temperatures. These These charac character terist istics ics are import important ant in making making fondan fondants, ts, confec confectio tions ns and liquors.
56
6) SALT Salt is a dietary mineral essential for animal life, composed primarily of sodium chloride. Salt flavor is one of the basic tastes, and salt is the most popular food seasoning. Salt is also an important preservative. Salt for human consumption is produced in different forms: unrefined salt (such as sea salt), refined salt (table salt), and iodized salt. It is a crystalline solid, white, pale pink or light grey in color, normally obtained from sea water or rock deposits. Edible rock salts may be slightly greyish in color due to this mineral content. World Scenario (Million metric tons, includes salt in brine) Country
2006
2005
2004
2003
2002
2001
2000
United States
46.0
45.1
46.5
43.7
43.9
44.8
45.6
China
48.0
44.6
37.1
32.4
35.0
31.0
31.3
Germany
18.6
18.7
16.0
15.7
15.7
15.7
15.7
India
16.0
15.5
15.0
15.0
14.8
14.5
14.5
Canada
15.0
14.5
14.1
13.3
13.0
12.5
11.9
Australia
12.4
12.4
11.2
9.8
10.0
9.5
8.8
France
7.0
7.0
7.0
7.0
7.1
7.0
7.0
Brazil
7.3
6.7
6.5
6.1
7.0
6.0
6.0
United Kingdom
5.8
5.8
5.8
5.8
5.8
5.8
5.8
All Other
55.4
58.5
40.6
53.2
64.5
69.3
58.5
Totals
240.0
238.0
208.0
210.0
225.5
225.0
214.0
57
Indian Scenario I India is the fourth largest country in salt production, with U.S. and China contending for the first place and Germany being the second. India produces 16 million tonnes yearly. Households consume 8 million tonnes and the Industry consumption is 6 million tonnes and the rest is exported earning 2000 crores. Among the 11 salt making states, only three states, Gujarat, Tamiln Tamilnadu adu(ma (mainl inly y becaus becausee of Tutico Tuticorin rin)) and Rajast Rajasthan han(ma (mainl inly y becaus becausee of Sambhar Lake) produce surplus salt than they consume. Gujarat produces 11 million tonnes or 71%, Tamilnadu makes 16%, Rajasthan makes 9% and the rest of other states make 4%. Classification of Salts • Table Salt – A fine grained refined salt with additives free flowing, is mainly used in cooking and as natural consumption. • Iodized salt – Table salt with added iodine – Particularly important in areas that lack natural iodine – Important for preventing hyperthyroidism hyperthyroidism (Goiter). • Crystal Salt – Shar Sharp p in natu nature re,, High Highly ly Sal Salty ty •
Rock Salt Sold in larg largee crys crysta tals ls,, rock rock salt salt has has a gray grayis ish h hu huee beca becaus usee it is – Sold unrefined. – Makes a great bed for serving oyster and clams or combine it with ice to make ice cream in hand cranked ice cream makers. – Not recommended for cooking and table.
•
Sea Salt – Available in both fine and coarse grains – Comes at a higher cost than table salt – Made from evaporated sea water. – Tends to include several naturally present trace minerals such as iodine, magnesium and potassium, which give sea salt a fresher, lighter flavor than standard table salt.
National Brands Brand
Company 58
• • • • •
Tata Salt Annapurna Nirma Shudh Captain Cook Ashirvaad
Tata Chemicals ltd Hindustan Lever Ltd Nirma Chemicals ltd Hindustan Lever Ltd ITC Foods Ltd
7) DRY DRY FRU FRUIT ITS S Dried fruit is fruit that has been dried, either naturally or through use of a machine, such as a food dehydrator. Raisins, almonds, cashewnuts, walnuts, aprico apricots, ts, prunes prunes,, and dates dates are are exampl examples es of pop popul ular ar dried dried fruits fruits.. Drying Drying pre prese serv rves es frui fruit, t, even even in the the abse absenc ncee of refr refrig iger erat atio ion, n, and and sign signif ific ican antl tly y lengthens its shelf life. When fresh fruit is unavailable, impractical, or out of season, dried fruit can provide an alternative. It is often added to baking mixes and breakfast cereals. Classifications Of Dry Fruits Whole Whole Dry Dry Fruit Fruitss – Cashew Cashew,, Almond Almond,, Kishmi Kishmish, sh, Pista, Pista, Walnut Walnuts, s, Figs, Figs, Dates, Coconut, Melon seed, seed, Water melon melon seeds Split Dry Fruits – Cashew nuts, Badam, Pista, Akhrot, Kajoor in Small pieces Roasted & Salted Dry Fruits – Cashew, Badam, Pista Dry Fruits KVI’s South India- Cashews, Pista Salted, Almonds California, Raisins Indian, dates, Walnut North India - Cashews, Pista Pis ta Salted, Almonds, Almon ds, Raisins, Walnuts, W alnuts, Pista Pist a Green, Other Dry Fruits (Afghan)
C. STAPLES IN RELIANCE FRESH The staples category in Reliance Fresh stores on an average has 25-30% contribution in sales of the stores. In Reliance Fresh stores, except oils, the other sub-categories have many SKUs (stock keeping units) i.e., a product, produced under reliance’s own labels-Value and Select. Oils have the major contribution in the sales of staples and Fortune Soya is the highest selling SKU.
RICE
59
In rice, many varieties like parmal, dubar, tibar, sella, ponni, pulav etc. are available. In other brands, India Gate, Kohinoor, Noor Jahan, Hello can be found in the store. Details of Rice in RR Matured Scented Rice - Rice like Basmati which are used to prepare special rice dishes Matured Rice- Rice like Sona Masuri, Parmal & Ponni which are Old rice, gives more quantity after cooking Standard - Rice like Sona Masuri, Parmal, Ponni, Idly Rice, Pongal Rice, etc., Par Boiled / Boiled Rice - Regular Par- Boiled & Boiled rice eg., Dosa, Idly rice, Puttu Rice, etc.
60
Sample – Reliance’s Own Label SKU’s Brick PUFFED RICE BOILED RICE
BOILED RICE BOILED RICE RAW RICE RAW RICE RAW RICE
Item description RELIANCE PUFFED RICE 200 G RELIANCE SELECT IDLY RICE 1KG RELI RELIAN ANC CE PONN ONNI BOIL BOILED ED RICE RICE 1KG, 5KG RELIANCE RED BOILED RICE 1KG, 5KG RELIAN RELIANCE CE SELECT SELECT SONA SONA MASURI MASURI (MAT) 1KG , 5KG RELIAN RELIANCE CE SELECT SELECT SONA SONA MASURI MASURI (STD.) 1KG, 5KG, 25KG RELIAN RELIANCE CE SELECT SELECT SONA SONA MASURI MASURI (MAT) 1 KG
61
WHEAT AND FLOUR Flour Flour has Select Select atta, atta, sooji, sooji, maida maida etc. etc. and Aashir Aashirvaa vaad, d, Shakti Shakti Bhog, Bhog, rajdhani, Raama Bhoj are other brands available. Reliance’s Own Label SKU’s
Brick WHEAT WHEAT WHEAT MAIDA WHEAT RAVA MAIDA RAVA
Item description RELIANCE SELECT SHARBATI WHEAT 2KG RELIANCE SELECT LOKWAN WHEAT 5KG RELIANCE SELECT SHARBATI WHEAT 5KG RELIANCE SELECT MAIDA 50 500 GM RELIANCE BROKEN WHEAT 1KG RELIANCE SELECT IDLY RAWA 1K 1KG RELIANCE SELECT MAIDA 1K 1KG RELIANCE SELECT SOOJI RAWA 1K 1 KG
And there’s Reliance Select Atta which is a good selling SKU.
PULSES In pulses, varieties like chana dal, arhar dal, moong chilka, mooong, lobia, kabuli kabuli chana, chana, rajma rajma chitra chitra etc. are available. available. In few stores, stores, Divine Divine organi organicc pulses are available Reliance’s Own Label SKU’s Brick OTHER DALS OTHER DALS OTHER DALS URAD
CHANA CHANA
Item description RELIANCE BLACK EYED BEANS 200 G RELIANCE RELIANCE SELECT SELECT RED RAJMA RAJMA 200 G
RELIANCE SOYA BEANS 20 200 G RELIANCE URAD DAL CHILKA 2OOG RELIANCE SELECT CHANNA BROWN 500G RELIANCE CH CHANNA BR BROWN SM SMALL 62
CHANA CHANA OTHER DALS CHANA CHANA OTHER DALS MOONG
500 G RELI RELIAN ANCE CE SELE SELECT CT CHAN CHANNA NA DAL DAL 500 G RELIANCE CHANNA DAL 500 G RELIANCE SELECT GREEN PEAS 500 G RELIANCE RELIANCE SELECT SELECT KABULI KABULI CHANA CHANA 500G RELIAN RELIANCE CE KABULI KABULI CHANA CHANA SMALL SMALL 500 G RELIANCE SELECT MASOOR WHOLE 500 G RELIANCE SELECT MOONG DAL 500 GM
SPICES Spices have both Value and Select label SKUs. In other brands, MDH, Everest, PRS, Sahiba are few to name.
EDIBLE OILS Oils Oils have have major major brand brandss like like Fortun Fortune, e, Saffo Saffola, la, Sundr Sundrop, op, Nature Nature Fresh, Fresh, Nutrela, Dhara etc.
SUGAR Reliance’s Own label SKUs Brick JAGGERY JAGGERY SUGAR SUGAR
Item description RELI RELIAN ANCE CE JAGG JAGGER ERY Y VALU VALUE E 500 G RELI RELIAN ANCE CE JAGG JAGGER ERY Y VALU VALUE E 1000 G RELIANCE SELECT SUGAR 1KG and 5KG RELIANCE VALUE SUGAR 1KG and 5KG
SALT In Salt, Tata, Saffola along with Select label. 63
DRY FRUITS Dry Dry Frui Fruits ts are are avai availa labl blee on only ly in the the priv privat atee labe labels ls Valu Valuee and and Sele Select ct.. Californian Prunes and some roasted varieties are also available.
LOOSE In loose, rice varieties like parmal, duabr, tibar, sella etc., pulses like toor dal, chana dal, rajma chitra, kabuli channa nad sugar are available.
64
3.5 SURVEY FOR STUDYING CONSUMER BEHAVIOR AND COMPETITION 3.5.1 INTRODUC INTRODUCTION TION Delhi and NCR are divided into four clusters- the North and Central cluster, the East cluster, the South and Faridabad cluster and the West and Gurgaon cluster. For the survey on consumer behavior, the North and Central and the East clusters were covered. The survey helped understand consumers’ preferences for different SKUs and satisfaction level for Reliance Fresh stores and also where it stands in market as compared to its competitors in customers’ view. The major competitors are KBs Fair Price, Big Apple, more., Sabka Bazaar, Spencers’, 6 Ten, Big Bazaar, Vishal Mega Mart. The recommendations for both the cluster are common, so given at the end. OBJECTIVES: To determ determine ine the satisf satisfact action ion levels levels of consum consumers ers with with Relian Reliance ce Fresh Fresh stores’ service and other parameters like SKU’s quality, availability, the whole assortment and pricing To find the KVIs in all the sub-categories. To study preferences of consumers for private label over other brands. To find any new SKUs that consumers want the stores to have. To study the competition from both organized and unorganized retailing. METHODOLGY: Primary data was collected. Questionnaire was designed. Respondents were selected randomly. The survey was done for both the clusters separately.
65
SAMPLING PLAN: Sampling unit: Customers at Reliance Fresh stores were selected Sample size: 30 customers Sampling procedure: Customers were selected randomly and were given questionnaire or just asked the questions.
3.5.2 THE NORTH AND CENTRAL CLUSTER
No. of stores covered: 14 Findings and Analyses: 1) KVIs in in all sub-cat sub-categor egories ies and compe competitio tition n o Rice- In packed, India Gate and Lal Quila are the most selling brands (around 35%) and private label is preferred by 15% and loose parmal and tibar are the most bought varieties. But more than 50% of consumers buy rice from Naya Bazaar and Khari Baoli as there are more varieties at lesser price. o Sugar- Around 40% buy Value sugar and 30% like loose sugar’s quality. o Pulses- Around 30% buy packed pulses, Value more than Select and 20% prefer loose SKUs. In this cluster, around 40% customers still prefer their local grocery stores or the wholesale market. o Flour- Around Around 40% use Aashirvaad Aashirvaad and Shakti Bhog and private private label is used by 20%. But a large segment still prefers mill’s flour like Rapid, Dinesh. o Edible oil- Around 45% use Fortune Soyabean oil, followed by Nutrela Soyyum, Nature Fresh. In mustard oil, fortune is the most selling brand. Saff Saffol olaa and and Sund Sundro rop p are are used used main mainly ly in A catc catchm hmen entt or by heal health th conscious people as they are low cholesterol oils. o Spices- Around 40% use MDH, followed by Everest. Private label are used by around 15% but in this cluster, majority of customers prefer the local grocery stores own label packed spices like Sardaara di Hatti (Pitampura) and Khari Baoli and Naya Bazaar market. o Salt- Around 55% use Tata Salt and private label is used by only 15% consumers. Dry Fruits- Consumers prefer the nearby grocery stores and the wholesale o markets. A major competitor is Sardaara di Hatti (Pitampura) and the Naya Bazaar market. A very small segment (less than 5%) buy private label SKUs. 2) Quality 66
o
o o o
o o
In packed, there are no complaints about quality but in loose, around 10% are not satisfied with the quality of Parmal. Only 10% do not like loose sugar and no complaints against packed. In loose, Arhar, Kabuli Chana’s quality was not satisfactory. Around 5% of the customers who used Reliance Select Atta did not like its quality and the rest are satisfied. There are no complaints about the quality of spices and salt. Customers are satisfied with the quality of dry fruits.
3) Assort Assortmen mentt and Availabi Availabilit lity y o Overall assortment is fine but few more varieties in loose rice and larger packs of major spices should be available. o All the SKUs are not available all the time. 4) Pri Pricin cing o Around 25% of the customers feel that shopping for their whole month grocery from Reliance Fresh would cost them Rs.100-150/- more than from a wholesale market. o In organized, KBs Fair Price, 6 Ten are giving competition o The prices of oils, dry fruits, pulses are high. o Around 35% of the customers are satisfied with the prices.
67
3.5.3 THE EAST CLUSTER The East cluster is very much diversified. At one end, it has catchment A stor stores es like like the the Pree Preett Viha Vihar, r, Kris Krishn hnaa Naga Nagarr and and then then,, ther theree are are stor stores es in Zaffarabad, Maujpur Gondha, Seemapuri etc., which are typical C catchment stores.
No. of stores covered: 16 Findings and Analyses: 1) KVIs in all sub-categorie sub- categoriess and competition co mpetition : o
o
o
o
o
o
o
o
Rice- In pack packed ed,, Indi Indiaa Gate Gate,, Lal Lal Quil Quilaa and and Kohi Kohino noor or are are the the most most preferred brand (around 35%) and private label is preferred by 20% and loose parmal and tibar are the most bought varieties. In Zaffarabad, Seemapuri and few other stores, there’s a huge demand of Sella rice (around 45%). The Jheel wholesale market and KBs Fair Price and 6 Ten give strong competition due to their lower prices. Sugar- Around 45% like loose sugar’s quality, 30% buy Value sugar and 15% like Select sugar. Pulses- Around 30% buy packed pulses, Value more than Select and 40% prefer loose SKUs. In this cluster, around 30% customers still prefer their local grocery stores or the wholesale market. Flour- Around 40% use Aashirvaad and Shakti Bhog and private label is used by 35%. Raama Bhoj is also used by a smaller segment (around 5%). Edible oil- Around 45% use Fortune Soyabean oil, followed by Nutrela Soyyum, Nature Fresh. In mustard oil, fortune is the most selling brand, followed by Nature Fresh and P Mark. Saffola and Sundrop are used mainly in catchment A stores or by health conscious people. Spices- Around 40% use MDH, followed by Everest. Private label are used by around 15% but in this cluster, majority of customers prefer the local local grocer grocery y stores stores in their their areas areas like like Zaffar Zaffarabd abd,, Seemap Seemapuri uri,, Laxmi Laxmi Nagar etc. and the wholesale market like in Jheel Salt- Around 60% use Tata Salt and private label is used by only 15% consumers. Saffola Lite is used by 10% respondents. Dry Fruits Fruits-- Cons Consum umer erss pref prefer er the the near nearby by groc grocer ery y stor stores es and and the the wholesale markets. A very small segment (less than 8%) buy private label SKUs. 68
2) Quality o In packed, there are no complaints about quality but in loose, around 25% are not satisfied with the quality of Parmal. o Around 15% do not like loose sugar and no complaints against packed. o In loose, Arhar, Kabuli Chana’s quality was not satisfactory. o Around 5% of the customers who used Reliance Select Atta did not like its quality and the rest are satisfied. o There are no complaints about the quality of spices and salt. o Customers are satisfied with the quality of dry fruits. 3) Assort Assortmen mentt and Availabi Availabilit lity y o Overall assortment is fine but few more varieties in loose rice and larger packs of major spices should be available. o All the SKUs are not available all the time. 4) Pri Pricin cing o Around 28% of the customers feel that shopping for their whole month grocery from Reliance Fresh would cost them Rs.100-150/- more than from a wholesale market. o In organized, 6 Ten and KBs, Big Bazaar are the major competitors. o The prices of oils, dry fruits, pulses are high. o Around 28% of the customers are satisfied with the prices.
Conclusions: 1) In the East East cluste cluster, r, both both the unorgan unorganize ized d and organiz organized ed sector sectorss are giving giving competition. 2) Wholes Wholesale ale markets markets like Jheel Jheel and the major major market marketss of Laxmi Laxmi Nagar Nagar are giving strong competition in unorganized retail. 3) In organiz organized ed retailin retailing, g, KBs Fair Price, Price, Big Apple, Apple, Big Bazaar Bazaar,, 6 Ten are giving major competition. 4) Though Though 6 Ten has lesser variety variety but its its prices are compet competitive itive.. 5) Majo Majori rity ty find find ou ourr pric prices es high higher er than than the the loca locall groc grocer ery y stor stores es and and the the wholesale market. 6) Customers Customers are satisfied satisfied with with the assortment. assortment. Earlier, Earlier, kutti kutti mirch was not in stores but now PRS label has been introduced. Jeera powder and coriander powder are also in much demand but not available in stores. 7) Customers are satisfied satisfied with the quality of most of the private label SKUs. 8) Customers Customers want want better better quality quality in in loose SKUs. SKUs. 9) Loose parmal, parmal, kabuli kabuli chana chana and toor dal do not not have good quality quality.. 69
10) The customer customerss want more more attractiv attractivee offers offers in staples staples category category.. 11) Private Private label’s label’s demand demand is incre increasing asing.. 12)) Stor 12 Stores es’’ serv servic icee no nott much much sati satisf sfac acto tory ry as per per expe expect ctat atio ions ns bu butt can can be improved by appointing more efficient CSAs. 13) Common Common problem problem while while billin billing, g, mainly mainly at peak peak hours. hours. 14)) Cust 14 Custom omer erss want want the oil bay to be clea cleane nerr as they they expe expect ct a high high quali quality ty service in Reliance Fresh stores. 15) All SKUs SKUs are not available available all all the time. time. Major problem problem with with besan, besan, sooji, Fortune soya 5l jar etc. 16) Customers Customers are are not aware aware of the differenc differencee between between the quality quality of the loose loose and packed SKUs. 17)) Chan 17 Chande derr Naga Nagarr stor store, e, Mauj Maujpu purr Gond Gondha ha,, Brah Brahmp mpur urii stor stores es have have go good od mechandising. In loose, sugar is the highest selling SKU.
3.5.4 RECOMMENDATIONS 1) Planogram Planogram should should be strictly strictly adhered adhered to in every every store. store. 2) Store manage managers rs should should check daily daily for stock levels levels and most importa important nt for KVIs 3) More varietie varietiess in loose should be introduce introduced, d, especially especially rice. 4) CSAs CSAs shou should ld take take care of merc mercha hand ndis isin ing g and and chec check k if the SKUs SKUs are are arranged properly in shelves. 5) A dedicated dedicated CSA for staples staples section section should should be made mandatory mandatory in all the stores. 6) SELs should be changed regularly as old SELs SELs misguide the customers. customers. 7) The store store manage managerr should should brief brief the staff about about the major major promos promos at the beginning of promo cycle. 8) All the promos promos should should be properly properly executed executed and and they should should be put up in both Hindi and English. 9) Announcem Announcements ents should should be made about about the major major promos promos in the store. 10)) 10 Attr Attrac acti tive ve po post ster erss can can be pu putt up up at at ent entra ranc ncee and and ou outs tsid idee the the stor store. e. 11)) 11 If a par parti ticu cula larr prom promo’ o’ss stoc stock k is not not ava avail ilab able le,, then then it it shou should ld not not be be executed and the store manager should inform about it. 12)) 12 In loo loose se sec secti tion on,, the the pric prices es sho shoul uld d be the there re on on each each bin bin rat rathe herr than than making a list. It confuses the customers. 13) In flour palette, all the SKU SKUs should be num numbered and and the the lis list shou should ld be in Hind Hindii havi having ng the the enti entire re SKUs SKUs name name alon along g with with thei their r number. 14)) 14 CSAs CSAs sh shou ould ld ch check eck for for mix mixing ing of the the loo loose SKU SKUs, s, for for exa exam mple, ple, pulses in rice bin etc. It should be done immediately. 70
15)) 15 More Mo re att attra ract ctiv ivee prom promos os sho shoul uld d be intr introd oduc uced ed as as the the comp compet etit itio ion n is very wide in this cluster. 16)) 16 Lal Lal Quil Quilaa and and Kohi Kohin noo oorr Basm asmati ati rice ice bran rands have have good good dem deman and d. They should be introduced in A catchment stores. 17)) 17 Larg Largee pac pack ks of of dr dry fr fruits uits sho should uld be be re remove moved d. 18)) 18 500g 50 0g pack packss of of CTC CTC (spi (spice ces) s) MBQs MBQs shou should ld be rais raised ed.. 19)) 19 Bran Brands ds of lowe lowerr pri price cess for for 5l Mu Must star ard d oil oil shou should ld be intr introd oduc uced ed.. 20)) 20 Fort Fortu une So Soya 5l 5l and and 15l 15l stoc stock k shou should ld be ava avail ilab able le in in the the stor storees, especially in the beginning of the month. 21)) 21 All All POS POS shou should ld be be made made fun funct ctio iona nall in all all the the sto store ress to imp impro rove ve the the billing process.
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3.5.5 PRESENTAT PRESENTATION ION OF DATA ANALYSI ANALYSIS S OF BOTH THE CLUSTERS The data analysis is done sub-category wise and three aspects are covered foe each sub-category: Brands preferred by consumer Type of market (organized or unorganized i.e., wholesale or local grocery store) 1) EDIB EDIBLE LE OILS OILS
72
73
74
2) RICE
75
76
3) PULSES
77
78
4) WHEA WHEAT T AND AND FLO FLOUR UR
79
80
5) SPICES
6) SALT 81
82
83
7) DRY DRY FRUI FRUITS TS
84
85
8) SUGAR
86
87
4 PRICE BENCHMARKING 4.1 INTRODUCTION In price benchmarking, KVIs and then the major competitors in the state are selected and the price of each SKU in each competitor’s store is obtained. Then, as per competitor’s price and considering the margin on that particular SKU, SKU, its price price is decide decided. d. The price price benchm benchmark arking ing proces processs is explai explained ned as follows:
In the beginning, SKUs to be classified based on consumer behavior for each city
Category A: Known Value Items- Crowd Pullers • • • •
•
•
•
Category B: Major staples items except Cat A • • • • • • •
Basic consumption items – customers know the market price Contributing 25-30% of staples sales To be priced lower than the competition To be monitored and benchmarked every week (against similar SKUs in identified competitors) KVI Selling Price = Wholesale rate + repacking cost + logistics charges + 5-10% margin (depending on category need) Matching the lowest priced competitor after State Head’s approval in case above formula doesn’t give most competitive price E.g. Sugar, CTC (Spices), Pulses, local rice varieties
Customers have a rough idea about the price To be priced at par with competition To be monitored and benchmarked every fortnight Contributing 60-65% of staples sales Selling price= Cost + targeted Margin Simultaneously, to be perceptibly lower than organized retail stores E.g. Rest of pulses, Few Oils
Category C: Others
88
• • • • •
Zone based Pricing :
To be priced on cost plus basis To be monitored every month (correction if required) Contributing 10% of staples sales Selling price= Cost + targeted Margin E.g. Blended spices, Dry fruits
To deliver better margin and also to ensure competitive pricing, stores are classified under two zones (A and B). • Zone A – The competition is primarily modern formats & catchment is Section A and B population • Zone B – The competition is primarily Wholesale / Semi-wholesale / Local retailer & Catchment is Section B and C population Differential Pricing between two zones will be adopted only for Top 7 SKUs of Category A SKUs based on the competition
Price Benchmarking Process:
Benchmarking is done on a weekly basis The competitive stores are selected once and if a new store comes in the market then can be added. In case the SKU is on promotion in competition stores, the details of the promotion to be captured in the report. The State merchandizing team to circulate price benchmarking report in standard format by every Tuesday to staples product heads and State Fresh head. Stap Staple less prod produc uctt head headss to disc discus usss with with stat statee merc mercha hand ndis isin ing g team team and and confirm price changes by Wednesday evening. State merchandising team to update the price in SAP by Thursday so that the price is effective at store by Friday. The benchmarking process have been advanced by one day to ensure any price issue (system or otherwise) is addressed within a day so that weekend sale is not affected.
Importance of Benchmarking: Benchmarking:
Benchmarking gives a deeper and clearer idea about the market. Having knowledge about competitor’s prices help decide prices for own stores considering the competition and margin. 89
It provides measures to improve and sustain in market. As the competition is increasing, so benchmarking should be done to survive in the market by being competitive in pricing, quality etc.
4.2 ACTIVITY OBJECTIVE: To price benchmark the KVIs of the various sub-categories, which would help decide their prices considering competitor’s prices and own margin. METHODOLOGY: The competitors in the organized retailing were selected and benchmarking was done in every two weeks. One of the benchmarking reports is given in Appendix 2. The price benchmarking was done on 24th May, 2nd June and 18th June.
90
4.3 FINDING AND ANALYSIS: The comparative analysis of the prices of the various SKUs sub-category wise is given as follows:
EDIBLE OILS
91
SUGAR
92
FLOUR
93
LOOSE
94
RAJMA AND CHANA
PACKED DALS
CONCLUSIONS: 95
1) As was found during during benchmar benchmarking king the CSAs CSAs in Reliance Reliance Fresh stores stores did not know the prices of the KVIs. 2) Proper Proper SELS SELS were were not not there there.. 3) We have competitiv competitivee price price in most most of the SKUs. SKUs. 4) 6 Ten and KBs Fair Price Price are giving giving competit competition ion in pricing. pricing. 5) Reliance Reliance Fresh Fresh stores’ stores’ assortment assortment is satisfact satisfactory. ory. 6) Many competit competitors’ ors’ stores stores do not have have Nutrela Nutrela Soyyum Soyyum oil. 7) Packed Packed Parmal Parmal and Dubar Dubar are available available in very very few stores. stores. 8) In loose, loose, prices prices are higher higher except except for sugar sugar.. 9) The price of Fortune Soya oil 5l jar is higher than than that of most of the stores.
4.4 RECOMMENDATIONS: 1) 2) 3) 4)
CSAs should should know know the the prices prices of the KVIs. KVIs. Benchmark Benchmarking ing can be done done for some other other variety variety in rice. In loose, loose, rice SKUs SKUs can be benchm benchmarked arked for for pricing. pricing. Price benchm benchmarkin arking g can be done for major major wholesale wholesale market market and the local grocery store of a particular area to have a deeper idea. 5) In loose, loose, along with the the price, quality quality benchmar benchmarking king can can also be done just through visual observation.
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5 ASSORTMENT AND PLANOGRAMMING OBJECTIVE: To study the assortment and planogramming processes. ASSORTMENT Assortment can be defined as the starting point for optimum use of store and shelf space thereby determining the optimal product offering that achieves target consumer fulfillment and enhanced business results for retailers and suppli suppliers ers.. Assort Assortmen mentt is finali finalized zed after after the follow following ing three three proces processes ses are are carried out. 1) Catchm Catchmen entt study study:: A stud study y of the the stor store’ e’ss catc catchm hmen entt shou should ld be do done ne.. Th This is help helpss in the the assortment and thus becomes easier to decide which SKUs should be kept in the store. For Reliance Fresh stores, three types of catchments have been identified. Catchm Catchment ent A- The store store is in an area area which which has majori majority ty of the customers of high income group and the competition is moderate. In such catchment, premium SKUs’ MBQ are generally kept high. Catchment B- The store stor e is in a middle class c lass dominated domi nated area and with a fair competition. A high class area can also be included in this catchment if the competition is very strong, for example, Rani Bagh is a high income group area but the store is surrounded by all three types of competitors- organised, wholesaler and local grocery stores. Catchm Catchment ent C- The store store is in an area area where where the majori majority ty of the population is of lower middle class group and the competition is also strong.
It is not necessary that a Catchment A would have a large size store and a Catchment C store can have a large size store. 2) Asso Assort rtme ment nt:: After catchment’s study, the assortment is finalized for the store and it depends on two factors- catchment and the size of the store. In a catchment A large-sized store, along with premium SKUs, other can also be kept as the 97
store would have enough space. But, the premium SKUs’ (like Saffola Gold, India Gate Classic) MBQ should be high. But in a catchment A small-sized store only the KVIs and the premium SKUs should be kept. The small space should be utilized in best way possible. In a Catchment C large-sized store, the core and regular SKUs’ MBQ should be high and premium SKUs can be kept but with low MBQ. But in a small-sized store, the premium SKUs like Olive Oil should not be kept. And then based on the number of bays allocated to the category, the assortment is decided upon. 3) Store Manager’s output:
The store manager should conduct a kitchen audit of the area. Kitchen audit means to study the demographic pattern of the area. India has a much diversified culture. People from different regions have different eating habits and thus this makes this audit necessary. Some areas may be dominated by a particular region people and thus in that store, the assortment should be according to the population of that area. For example, some areas in Delhi are dominated by Punjabis, so in such areas rajma, kabuli chana, blended spices variet variety y should should be kept. kept. Kitche Kitchen n audit audit helps helps in specif specifyin ying g and ultima ultimatel tely y finalizing the assortment. PLANOGRAMMING Planogramming is a method of inventory control and merchandise display that allows a retailer to maintain shelf inventory for maximum efficiency. A planogram is prepared after the assortment is finalized for that particular store. And for an already existing store, refit planogram is made. If a particular SKU is not in the POG and it has to be kept in the store then a label saying NOP (Not in Plano) is put.
Planogram- A planogarm is a schematic drawing of fixtures that illustrate product placement. It is also known as POG, P-O-G, Plan-o-gram.
Merchandise Planning- it is a systematic approach. It is aimed at maximizing retu return rn on inve invest stme ment nt,, thro throug ugh h plan planni ning ng sale saless and and inve invent ntor ory y in orde orderr to incr increa ease se prof profit itab abil ilit ity. y. It do does es this this by maxi maximi mizi zing ng sale saless po pote tent ntia iall and and maximizing losses from mark-downs and stock-outs. Philosophy of a good planogram: Must make shopping easier for the consumer. This must extend to the flow of sub-category as well. Must promote impulse trials and migration. Must be dynamic and should represent buying behavior of the consumer.
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Top Sheet The top sheet shows the bricks that are to be assigned to each shelf. It is within this that the SKUs are to be aligned in the POG. It is the skeleton of the POG.
Plano guidelines Study the store layout and customer circulation before making the POG Visualize the bays Use top sheets Allocate shelves by bricks Pack the shelves- go for stacking (horizontal or vertical) Adjust shelf height to maximize space utilization.
POG rules for Staples category 1) Items which which cannot cannot be placed placed on the the same or adjacen adjacentt shelf • Oils + Flours Dry fruits (at least 2 bays difference) difference) • Spices + Dry 2) Items which should preferably preferably be mixed because because of space space constraints • Spices/Salt • Dry Fruits/Sugar
3) Adja Adjace cenc ncy y Sugar + dry fruits (in same bay) Dry Fruits and spices will be at the two ends of the staples category. Dry Fruits OR Spices will be nearest to cash till All cereals in adjacent shelves Spices + Oil in adjacent shelves • •
• •
4) Eyelevel placement/visibility provided to following following categories/SKUs: Spices Dry Fruits Basmati Specially flours • • • •
5) Bottom Bottom shel shelff occupi occupied ed by HIGHER WEIGHT FACTOR SKUs Salt Sugar • • •
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6) Priv Privat atee lab label elss 1) Ey Eyel eleevel vel 2) Next Next to to bran brand d lead leader er 3) Equal Equal facin facing g to top top seller seller 7) Items with similar weight factor should be placed on the same shelf
Making a POG The concept team allocates bays to all the categories. A fixture plan having the category-wise bay allocation is provided Then, the category team makes the POG for the allocated bays. For staples, minimum 10 bays have to be allocated. If the store is very small, then lesser number bays can be given. In cust custom omer er flow flow,, oil oil bay bay shou should ld come come firs firstt as they they have have the the majo major r contribution and when shopping for whole month grocery, customer goes there first. In an oil bay, the premium SKUs (Saffola gold, Olive oil) are kept in the first bay, then the popular oils like Fortune Soya oil, followed by Mustard oil. The promo SKUs are kept in the end cap. Bulk packs of rice and flour are stacked on palettes.
Steps in making a POG:
Assortment to be made for the city (larger store)
Space allocation to be ascertained from the layout Assortment to be made for the store
Make the Top Sheet
Set the MBQ 100
Make the POG in Excel Sheet
Key Elements of a POG Article Code- bar code given by Relaince Fresh EAN code- product code given by the manufacturer SKU description Depth- No. of packs from front to the back of the shelf. Facings (horizontal)- No. of times a SKU is kept next to each other horizontally facing the customer. Stacking (vertical) - No. of times a SKU is kept one above the other in vertical position. MBQ- total number of the packs of the SKU kept in the shelf
Sample top sheet for oils
Shelf 5 Shelf 4 Shelf 3 Shelf 2 Shelf 1
Bottles/Pet Pouches Pouches Pouches/Rigids Large packs
Bay 4 Low Priced Oil Other oils RICE RICE BRAN/g BRAN/ging ingell elly y 0.2/0.5/1L
bay 3 Bay 2 Popular Oil Popular Oil Sunflower/Soya/GN Sunflower OIL PROMO OIL PROMO OMO SHELVES SHELVES Sunflowe Sunflowerr 1L Mustard 1L Sunflower 1L pet Sunflowe Sunflowerr 1L Vanaspati 0.5.1L Soya 1L pet Cotton Cotton seed/Mu seed/Mustar stard d Sunflower 5L Groundnut 1L 1L/2L Soya/Groundnut Rice Bran/Mustard 5L 5L Sunflower 5L
Bay1 premium Oil Olive/Blended Olive oil Saffola/Sundrop 1L Saffola/Sundrop 1L/ 2L Saffola/Sundrop 5L Saffola/Sundrop 5L
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Sample POG for Popular Oils
BAY ID/Desc
TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft) TUG20(3ft)
Article No. 49000006 1 49000667 4 49000553 4 49000053 7 49001742 5 49001742 7 49007143 7 49005267 7 49001618 4 49000564 2 49000553 3 49000667 6
EAN Code 890151211050 3 890600633072 6 890600728003 7 890403200043 9 890600941110 1 890600941033 3
SKU Name SUND SUNDRO ROP P NUTR NUTRIL ILIT ITE E 1 LTR PP NATURE FRESH ACTILITE OIL 1L PP FORTUNE SOYA OIL 1 LTR PP NUT NUTRE RELA LA SOYY SOYYAM AM OIL OIL 1LTR PP GOODHEALTH SOYA OIL 1 LTR PP
Shelf No.
Depth
Facinghorizonta l
6
7
3
1
21
21
6
7
4
1
28
28
5
7
7
1
49
71
1 20
4
7
7
1
49
11
60
3
7
7
1
49
11
60
7
2
1
14
14
7
1
1
7
7
7
2
1
14
14
VITAL SOYA OIL 1 LTR PP 2 DHARA FIT N FINE 1 LTR 4900 714 37 PP 2 DALDA SOYABEAN 1 LTR 8906 014 640 17 PP 2 FORTUNE PURE GROPUND 4900 161 84 NUT OIL 1 LTR PP 2 890151211080 SUND SUNDRO ROP P NUT NUTRIL RILITE ITE 0 SOYABEAN OIL 5L JAR 1 890600728006 FORTUNE SOYA OIL 5 LTR 8 JAR 1 890600633062 NATURE FRESH 7 ACTILITTE OIL 5L PP 1
7
1
Stacking
Shelf MBQ
1
7
toptop MBQ
Total MBQ
7
4
1
1
4
4
4
2
1
8
15
4
1
1
4
4
6 PROMOTIONS 6.1 INTRODUCTION INTRODUCTION
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Promotion involves disseminating information about a product, product line, brand, or company. Every month a promo cycle starts, in which new promos for every categories are execute in stores. In retail retail,, promo promotio tions ns are design designed ed to promot promotee the the goo goods ds and servic services es offe offere red d in the the bu busi sine ness ss dist distri rict ct and and to dire direct ctly ly gene genera rate te reta retail il sale sales. s. Th Thee promotions should be used as part of a broader promotional strategy, which also can include special events and image-building promotions. Promotions can either be discount-oriented sales events or targeted, non-sale promotional events. Retail events can promote general services (e.g. invited hours for regular customers), convenience and special attractions, rather than using reduced prices to draw shoppers. Process in deciding promotions and their execution in Reliance Fresh: 1) The National National category category team team decides decides the promos for for own private private labels and for other brands, as per vendors’ decisions. 2) Then, the the informatio information n is given to the state state category category head. head. 3) The state state head pass the informa information tion to the cluster clusters’ s’ head. 4) Then the the promos promos list is further further passed passed on to the the DMs and SMs. SMs. 5) The DMs DMs and SMs SMs do the execu execution tion at store store level. level. th Staples promos for the promo cycle of 26 June-31st July: 1) Buy spices spices worth Rs. Rs. 99/- and get rs. rs. 7/- off on Potato Potato Economy Economy 2) Buy spices spices worth worth Rs. 149/149/- and get R Value Value Sugar Sugar 1 kg free free 3) Buy 1 Get 1 Free Free in Picric Picric Basmati Basmati Everyd Everyday ay rice 1kg 1kg and 5kg 4) Oil promos promos from from 28.06 28.06.2008 .2008-08. -08.07.20 07.2008 08 a. Nutrela Soyyum oil 1l Rs. 75.75/- for Rs. 74.49/ b. Fortune soyabean Oil 15l jar- Rs. 1173.25/- for Rs. 1129.99/c. Nature Fresh Sunflower Oil 1l- Rs. 89/- for Rs. 85.90/-
Objective: To check the promo execution for the promo cycle of 26 th June-31st July in the allotted stores and suggest ways to improve the merchandising. Methodology: Four Four stores stores were were allott allotteded- Zaffar Zaffaraba abad, d, Preet Preet Vihar, Vihar, Achary Acharyaa Niketa Niketan n and Madhuban Chowk. The promos were executed in all the stores where stock was available. It was done in both Hindi and English.
6.2 FINDING AND ANALYSIS: 1) Zaff Zaffar arab abad ad a. Picric Picric 1kg 1kg stock stock was was not not availa available ble.. b. Promos Promos were were not not execut executed ed proper properly. ly. 103
c. SM was was not awar awaree about about the the oil prom promos. os. d. As the promos promos were were put up in Englis English, h, many custom customers ers were were not able able to understand them. 2) Pree Preett Vih Vihar ar a. Prom Promo o exec execut utio ion n poor poor.. b. Picric Picric 1kg and 5kg 5kg stock stock was not availa available ble c. Fortune Fortune Soyabe Soyabean an oil15l oil15l jar was was not not availab available le d. SM and the the supervis supervisor or did not not know know any of the promos. promos. 3) Acha Achary ryaa Nike Niketa tan n a. Promos Promos execut execution ion was goo good. d. b. b. Fort Fortun unee soya soya 15 15ll jar jar was was no nott avai availa labl blee and and clus cluste terr head head was was no nott informed about it. 4) Madh Madhub uban an Cho Chowk wk a. Promo Promo execut execution ion was goo good. d. b. Picric Picric 1kg rice was was not not available available in the the store. store. c. Spices Spices Rs. 99/99/- and Rs. 7/- off off on Potato Potato Econom Economy y was not coming coming in POS. d. Fortune Fortune Soyabe Soyabean an oil15l oil15l jar jar was not availa available ble
6.3 CONCLUSIONS: 1) SMs are not aware aware about about all the promos promos though though there are very very few promos promos in staples. 2) Stock Stock availabil availability ity is a major major problem. problem. 3) SMs do not inform inform the catego category ry about the the stock unavaila unavailabilit bility. y. 4) SMs and CSAs CSAs do not take take the promo promoss execution execution serious seriously. ly. 5) Customers Customers are are not able able to understan understand d all the promos promos.. 6) The execution execution is not attractive attractive enough enough and the customer customer sometimes sometimes doesn’t doesn’t notice it.
6.4 RECOMMENDATIONS: RECOMMENDATIONS: 1) A meetin meeting g for each each cluste clusterr should should be held held befor beforee every every promo promo cycle, cycle, to brief all the SMs about the promos in every category. 2) The SMs should should brief brief all the CSAs and and the ASMs about about the top promos promos of each category. 3) The SMs should check for promo promo SKU’s stock availability availability regularly. regularly. 4) Category Category team should should be informe informed d about stock stock updation. updation. 5) Promos Promos should should be executed executed in attract attractive ive manner. manner. 6) Attractiv Attractivee posters posters can be put put up at the entranc entrance. e. 104
7) Announcem Announcements ents should should be made made about the the top promos. promos. 8) Promo Promo execution execution should should be in both both Hindi Hindi and English English.. 9) CSAs should should convince convince customer customerss about the promot promotions. ions. 10)) 10 Thee pro Th promo mo SKUs SKUs shou should ld be kept kept at eye eye lev level el or no noti tice ceab able le loca locati tion ons. s. 11)) 11 Prom Promo o SK SKUs sho should uld nev neveer be be ke kept at top top or or th the low lower er shel helves. ves.
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7 PROCESSING CENTRE FOR STAPLES 7.1 INTRODUCTION INTRODUCTION Location: Area: Capacity: Varieties:
Jamalpur Village, Haryana 1, 05,000 sq. ft. can process 280 tones/day Rice, Pulses, Dry Fruits, Sugar, Spices
There are two types of processing methods: 1) Semi-aut Semi-automat omated ed (manual (manual interven intervention tion)) In this process, cleaning, sorting and packing are done manually. It is done for packs of 200g- 5 kg. 2) Automate Automated d (fully (fully mechaniz mechanized) ed) In this process, there’s a full mechanized system and is mainly done for rice, rice, pulses pulses and spices. spices. Packs Packs of 500g-35kg 500g-35kg are packed packed by this method. method. Through this method, 4 tonnes can be packed in an hour.
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The process of the cleaning, sorting and packing consists of following steps:
The stock is manually dumped into the Bucket Conveyor
Pre-cleaning to remove coarse impurities (The drum has two sieves having different sized holes)
Passed on to the Weigher (can allow 2.5 tonnes/hr)
Separator (to remove small impurities)
Destoner (has magnet also to remove iron matter)
Combinator (optional) (has both separator nad destoner)
Grader or Classifier (separate grains on the basis of their size i.e., large or small)
Sortex Z+
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(system based machine. Separates discoloured grains. The required colour quality is fed into the system and then discolored grains are recognized and separated by a beam)
Polisher (optional) (both water and oil polish)
BINS
Ready for packing in Value and Select Labels
7.2 RECOMMENDATIONS: RECOMMENDATIONS:
In manual packing, the workers must wear gloves. Proper hygiene conditions should be maintained while packing.
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8 CONCLUSIONS 1) In the North and Central Central cluster, cluster, the major competitio competition n is from unorganized unorganized retail as there are major wholesale markets like Khari Baoli, Naya Bazaar and the local grocery stores are decades old and consumers are habitual of shopping there. 2) In the East East cluste cluster, r, wholesa wholesale le markets markets like Jheel and the major major markets markets of Laxmi Nagar are giving strong competition in unorganized retail. 3) In organiz organized ed retailin retailing, g, KBs Fair Price, Price, Big Apple, Apple, Big Bazaar Bazaar,, 6 Ten are giving major competition. 4) Majo Majori rity ty find find ou ourr pric prices es high higher er than than the the loca locall groc grocer ery y stor stores es and and the the wholesale market. 5) Cust Custom omer erss are are no nott will willin ing g to swit switch ch to orga organi nize zed d reta retail il stor stores es for for thei their r grocery shopping as they are very particular about the taste and price of the wholesale market products. 6) Customers are satisfied with the assortment also. Earlier, kutti mirch was not in stores but now PRS label has been introduced. Jeera powder and coriander powder are also in much demand but not available in stores. 7) Customers are satisfied satisfied with the quality of most of the private label SKUs. 8) The customers customers want more more attractive attractive offers offers in staples category category.. 9) Private label is used by a smaller segment but its demand demand can be increased. increased. 10) Stores Stores’’ servic servicee not much satisfa satisfacto ctory ry but can be improv improved ed by appoin appointin ting g more efficient CSAs. 11) Common Common problem problem while while billin billing, g, mainly mainly at peak peak hours. hours. 12) Model Model Town and and Pitampu Pitampura ra stores stores have have the best best service. service. 13) Custom Customers ers want want the oil bay bay to be cleaner cleaner as they expec expectt a high high quality quality service in Reliance Fresh stores. 14) All SKUs are not not availab available le all all the time. time. 15) Customers Customers are not not aware of the the differenc differencee between between the quality quality of the the loose and packed SKUs. 16) Customers Customers want better better quality quality in loose loose SKUs. SKUs. 17) In loose, loose, sugar sugar is the the highes highestt selling selling SKU. SKU.
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9 APPENDIXES
QUESTIONNAIRE FOR STUDYING CONSUMER BEHAVIOUR AND THE COMPETITION IN THE “STAPLES” CATEGORY FOR RELIANCE FRESH
Cluster: ___________________________ ________________________________ _____ Store Location: __________________________ __________________________ Date: _______________ Time: _______________ _______________
ABOUT THE CUSTOMER: Name:
_____________________________ ___________________________________________ _______________ _
Age: ________
Occupation: ______________________ ______________________
Monthly shopping of of staples from Reliance Reliance Fresh: ___________________ ___________________
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Please answer the following questions: 0) Are you a member member of Reliance Fresh? Yes
No
1) Are you you a regul regular ar custo customer mer?? Yes
No
2) How often do you come to Reliance Fresh?
Daily
Twice or thrice in a week
Once a week
Twice or thrice in a month Once a month 3) Which brand or variety do you prefer for the following?
First time
Rice: ____________________________ ___________________________________________ ___________________________ ____________ _____________________________ ___________________________________________ ____________________________ ______________
__
Edible ____________________________ ___________________________________________ ______________________ _______
Oils:
Sugar: ____________________________ ___________________________________________ __________________________ ___________
Flour: ____________________________ ___________________________________________ __________________________ ___________
Salt and ____________________________ ___________________________________________ ___________________ ____
spices:
4) Please mark as per your choice against the below given aspects about the
“Staples Section” of the store: 111
Excellent
Good
Average
Bad
Good
Average
Bad
a) Quality:
i) Rice ii) Pulses iii) Wheat n Flour iv) Edible Oils v) Sugars vi) Salts vii) Spices viii) Dry Fruits
b) Variety:
i) Rice ii) Pulses iii) Wheat n Flour iv) Edible Oils v) Sugars vi) Salts vii) Spices viii) Dry Fruits
Excellent c) Availability of products:
i) Rice ii) Pulses iii) Wheat n Flour iv) Edible Oils v) Sugars vi) Salts vii) Spices viii) Dry Fruits 112
d) Service:
Are CSAs always there to attend you? Yes
No
Was he/she able to help you? Yes
No
If No, then what _____________________________________
was
the
problem?
_____________________________ ___________________________________________ ____________________________ ___________________ _____ _______
Was he/she able to explain you the promotional offers clearly? Yes
No
Do they behave nicely? Yes
No
If No, then _________________________________
please
mention
t he
problem.
____________________________ ___________________________________________ _____________________________ ________________ __ _______
How is the billing process? Good
Bad
If Bad, then ___________________________ ______________________________________ ___________
what
is
the
problem?
___________________________ _________________________________________ _____________________________ ________________________ _________ e) Promotions :
How are the various promotional offers? 113
Good
Bad
O.K.
Don’t bother
How did you come to know about the offer? _____________________________ ____________________________________________ _________________________________-
___________
5) Pricing Pricing of staples staples in Reliance Reliance Fresh Fresh as compared compared to the Organized Organized retail retail (the other retail stores) and the Unorganized retail (the local grocery store):
High
Low
Similar
114
a) Rice i) Org. ii) Unorg.
If price higher, then mention Variety or the brick: _____________________________ ________________________________ ___
Name of the store: _____________________________ _________________________________ ____
b) Pulses lses
i) Org. ii) Unorg. If price higher, then mention Variety or the brick: _____________________________ ________________________________ ___
Name of the store: _____________________________ _________________________________ ____
c) Wheat n Flour i) Org. ii) Unorg.
If price higher, then mention Variety or the brick: _____________________________ ________________________________ ___
Name Name of the store: store:
_________ ______________ __________ _________ _________ __________ _____ High
Low
Similar
115
d) Edible Oils i) Org. ii) Unorg.
If price higher, then mention ________________________________ ___ Variety or the brick: _____________________________
Name of the store: _____________________________ _________________________________ ____
e) Sugars i) Org. ii) Unorg.
If price higher, then mention Variety or the brick: _____________________________ ________________________________ ___
Name of the store: _____________________________ _________________________________ ____
f) Salts i) Org. ii) Unorg.
If price higher, then mention ________________________________ ___ Variety or the brick: _____________________________
Name of the store: _____________________________ _________________________________ ____
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g) Spices i) Org. ii) Unorg.
If price higher, then mention Variety or the brick: _____________________________ ________________________________ ___
h)
Name of the store: _____________________________ _________________________________ ____
Dry Dry Fru ruit itss i) Org. ii) Unorg.
If price higher, then mention Variety or the brick: _____________________________ ________________________________ ___
Name of the store: _____________________________ _________________________________ ____
6) Would you like Reliance Fresh to introduce any any new product in staples? Rice ____________________________ ___________________________________________ _____________________________ _______________ _ Pulses ____________________________ ___________________________________________ _______________________ ________ Wheat n ____________________________ ___________________________________________ _______________________ ________
Flour
Edible ____________________________ ___________________________________________ _______________________ ________
Oils
Sugars ____________________________ ___________________________________________ ________________________ _________ Salts _____________________________ ___________________________________________ ____________________________ _______________ _ Spices _____________________________ ___________________________________________ ____________________________ ______________ 117
Dry _____________________________ ___________________________________________ __________________________ ____________
Fruits
7) Views about Reliance Fresh store as compared to other retail stores: 1) ___________________________ __________________________________________ ___________________ ____
Better
Worse
Similar
i) Quality ii) Variety iii) Avail. of products iv) Promotions v) Service 2) ____________________________ __________________________________________ _______________________ _________
i) Quality ii) Variety iii) Avail. of products iv) Promotions v) Service 3) _____________________________ ___________________________________________ ______________________ ________ i) Quality ii) Variety iii) Avail. of products iv) Promotions v) Service
118
4) ___________________________ __________________________________________ ________________________ _________
i) Quality ii) Variety iii) Avail. of products iv) Promotions v) Service 5) ___________________________ __________________________________________ ________________________ _________
i) Quality ii) Variety iii) Avail. of products iv) Promotions v) Service
How can we serve you better? ____________________________ ___________________________________________ _____________________________ ___________________ _____ __
Will you visit the store again? Yes No If n o, then please ___________________________ _________________________________________ _______________ _
give
reason:
THANK YOU!
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10 ABBREVIATIONS
SKU- Stock Keeping Unit
SEL- Shelf Edge Label
KVI- Key Value Items
POG- Planogram
CSA- Customer Service Associate
11 BIBLIOGRAPHIES BIBLIOGRAPHIES Referred Sites:
www.reliance.com
www.google.com
Referred Books:o o o
Marketing Research-Paneerselvam Research-Paneerselvam Research Methodology-C.R. Kothari Principle of marketing-Philip Kotler
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