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Executive Summary

Retailing is the final step in the distribution of merchandise - the last link in the Supply

Chain - connecting the bulk producers of commodities to the final consumers. Retailing

covers diverse products such as foot apparels, consumer goods, financial services and

leisure. Hence, the value proposition a retailer offers to a consumer is easy availabilities

of the desired product in the desired sizes at the desired times.

The retail market size in India is estimated to be around $180 billion. Retailing provides

jobs to almost 15 percent of employable Indian adults and it is perhaps the largest

contributor to India's GDP. But the flip side of the coin is that the average size of each ofthe retail outlets in India is only 50 square feet and though a large employer, the industry

is very unorganized, fragmented and with a rural bias.

DSD

1

MandiCity processing center

Distribution center

Stores

Collection Center


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Plano gram

A Plano gram is the visual representation of how and where the products should be placed

on the retail shelves and displays, which ensures ease of shopping for customers. A Planogram defines which product is placed in which area of a shelving unit and with which

quantity. The rules and theories for the creation of a Plano gram are set under the term of

merchandising.

Plano gram is needed before the products actually arrive to the store. A Plano gram is a

retailer's drawing (blueprint), which visually communicates how merchandise and props

physically fit onto a store fixture or window to allow for proper visibility and price point

options. The retailer can plan to mix the new products with current items or initiate

entirely new displays. If you have more than one store this is an excellent way to

communicate to your staff how you would like displays executed. Primary targets which

should be achieved with Plano gram:

Achieve merchandising style

Merchandise shelf in line with consumer buying behavior.

Conforming to adjacencies what goes next to what. Visual Appeal

Tool to ensure merchandising strategies are implemented in the stores

Plano gram management: Plano gram would be based on the Processing food Plano

gram Principles:

Produce would be kept in shelves in groups all Category Produce would be kept

together (all Fruits would be together, all vegetables would be together, all Cut Produce

would be together). This would be the first criterion.

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Within category, produce would be kept together in Sub Category Level Grouping

(All Imported Apple would be kept together; all basic vegetables would be kept together

etc). This would be the second criterion.

All F & V would be kept based on the preference for Fixtures.

Ethylene Sensitivity would be the next criteria. All Ethylene releasing

produce would be kept away from ethylene sensitive produce.

Quantity Sold per Day/ Movement of Produce would be the next

important Criteria.

The Fastest moving produce would be kept in the Middle Shelf in case of wall

racks, front layer incase of Loungers

Next fast moving produce would be kept in the top Shelf of the wall racks and

back layer in case of Loungers

Medium moving Produce would be kept in Bottom Shelf front layer of wall racks

Least moving SKUs would be kept in the Bottom shelf, back layer of wall racks/

or in back layer in case of loungers.

Bulkiness of the Produce would be the next criteria All Bulky Fruit/vegetable would be kept in the Bottom shelf only.

Quality Benchmarking

It is simply the systematic process of searching for best practices, innovative ideas and

highly effective operating procedures that lead to superior performance. No single

department or company can corner the market on all good ideas.

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RELIANCE: AN OVERVIEW

"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

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 Reliance Group is a living testimony to his indomitable will, single-minded dedicationand an unrelenting commitment to his goals.

Milestones

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Starting as a small textile company, Reliance has in its journey crossed several milestones

to become a Fortune 500 company in less than 3 decades.

Reliance continues to cross newer & bigger milestones in its quest for what is known as"Growth is Life".

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. Group'sannual revenues are in excess of US$ 30 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 integration - in polyester, fibre intermediates, plastics, 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, petroleum refining

and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals),

textiles, retail and special economic zones.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and

fibre producer in the world and among the top five to ten producers in the world in major

petrochemical products.

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Major Group Companies are Reliance Industries Limited (including main subsidiaries

Reliance Petroleum Limited and Reliance Retail limited) and Reliance Industrial

Infrastructure Limited.

Innovations at RIL

For those who study innovative organizations Reliance Industries will be a shining

example of how innovation is practised in almost everything that they do. Here are few

things that set them apart:

"Impossible is an inspiring word" - Nothing turns on the leadership at Reliance

Industries than this magical word. Again to quote the Jamnagar example, it wasconsidered impossible to turn a barren land into a greenbelt. Today mangoes

grown in Jamnagar are sold in Harrods London.

"Hands on thinking, hands off execution." - It is characteristic of Reliance

leadership. They think everything through and meticulous planning is their hall

mark. When it comes to execution empowerment delegation down to the last

employee in the chain is clearly demonstrated.

"First time it is learning. Second time it is a mistake." - Mistakes are never

frowned upon; instead they are treated as a learning opportunity. It is one such

mistake converted to learning that created the world's largest 'Craft Centre' located

at Jamnagar. Cumulatively it has trained 1, 50,000 workmen - electricians,

welders, carpenters.

"Sense of urgency" - Reliance speed is legendary now. Reliance has mastered

project management skills and has made it virtually into a fine art. It is this senseof speed that restored operations in record time in Jamnagar, Patalganga and

Hazira after being affected by cyclones and floods.

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"Think. Anticipate. Be prepared." Part of meticulous thinking is the ability to

anticipate problems. "Every transformation initiative will face resistance. It is our

job to anticipate the resistance, take the responsibility to earn the respect of all

stakeholders to create a win-win business model."

"Dreams and Vision are the most potent fuels in the world." - This is an

unmistakable Reliance hallmark espoused both by the founder Chairman Sh.

Dhirubhai Ambani and the current Chairman Sh. Mukesh Ambani. To a question

on what would be his next big ambition Sh. Mukesh Ambani answered "Rural

transformation. Creating direct employment for half a million people in rural

India. Creating a supply chain that the world will envy."

"Measuring success differently" - Developing a metric to measure how much

money was spent, is just one example of inspiring people to think and act

differently and effectively.

"Asking the right questions." - Reliance Leadership excels in asking the right

questions. The company folklore is replete with examples of deceptively simple

questions, leading on to incredible outcomes. Commonsense is the bedrock of

such thinking.

"Hard work, timely decisions, speed and ingenuity" says one of the senior managers of

Reliance Industries to sum up what Reliance is all about.

It is evident that Reliance Industries is where it is today because of Innovation in thinking

and execution. Given its ambition for India and its own organization Reliance leadership

has now taken on a major initiative in the innovation domain.

The leadership of RIL recognizes that its biggest competitive advantage and differentiator

in the future would be innovation. Innovation has to become the language, the behaviour

definer, the culture and the soul of Reliance, even more explicitly than ever before.

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Growth through Governance

Reliance is in the forefront of implementation of Corporate Governance best

practices

Corporate Governance at Reliance is based on the following main principles:

Constitution of a Board of Directors of appropriate composition, size, varied

expertise and commitment to discharge its responsibilities and duties.

Ensuring timely flow of information to the Board and its Committees to enable

them to discharge their functions effectively.

Independent verification and safeguarding integrity of the Companys financial

reporting.

A sound system of risk management and internal control.

Timely and balanced disclosure of all material information concerning the

Company to all stakeholders.

Transparency and accountability.

Compliance with all the applicable rules and regulations.

Fair and equitable treatment of all its stakeholders including employees,

customers, shareholders and investors

Growth through Recognition

Reliance has merited a series of awards and recognitions for excellence for businesses

and operations.

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2007-2008

Shri Mukesh Ambani was awarded the Defence India Excellence Award 2007.

The Award is a salute to those who have made the country proud.

Shri Mukesh Ambani was conferred the Indian of the Year Award by NDTV. This

is Indias most prestigious award for outstanding contribution towards the

betterment of the nation. Shri Mukesh Ambani received the coveted award in the

Business Category.

Shri Mukesh Ambani was conferred the Outstanding Business Leader of the Year

Award by CNBC TV18.

Shri Mukesh Ambani was awarded the Business Leadership Award 2007 by

NDTV Profit.

Shri Mukesh Ambani was conferred the Leadership Award for Global Vision by

the United States India Business Council.

Shri Mukesh Ambani was elected to be a member of the Honorary Fellows of The

Institution of Chemical Engineers, UK.

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On invitation to Shri Mukesh Ambani, Reliance Industries Limited became a

Council Member of World Business Council for Sustainable Development

(WBCSD) in July 2007. Presently, Shri Mukesh Ambani is the only Indian CEO

who is Council Member of WBCSD.

Corporate Ranking and Ratings:

Reliance featured in the Fortune Global 500 list of Worlds Largest Corporations for the

fourth consecutive year.

Ranked 269th in 2007 having moved up 73 places from the previous year.

Featured as one of the worlds Top 200 companies in terms of Profits.

Among the top 25 climbers for two years in a row.

Featured among top 50 companies with the biggest increase in Revenues.

Ranked 26th within the refining industry.

Reliance is ranked 182nd in the FT Global 500 (up from previous years 284th rank).

Petro Fed, an apex hydrocarbon industry association, conferred the Petro Fed 2007

awards in the categories of Refinery of the Year and Exploration & Production - Company

of the Year.

Brand Reliance was conferred the Bronze Award at The Buzziest Brands Awards

2008, organized by agencyfaqs!

Institute of Economic Studies conferred the Udyog Ratna award in October 2007 for

contributions to the industry.

Chemtech Foundation conferred the Hall of Fame in February 2008 for sterling

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contributions to the industry.

Chemtech Foundation conferred the Outstanding Achievement - Oil Refining for

work at the Jamnagar Manufacturing Division.

Petroleum Federation of India conferred the Refinery of the Year Award - 2007 to

Jamnagar Manufacturing Division

Exports

The Plastics Export Promotion Council - PLEXCOUNCIL Export Award in the

category of Plastic Polymers for the year 2006-2007 was awarded to Reliance being the

largest exporter in this category.

Health, Safety and Environment

Jamnagar Manufacturing Division was conferred the Golden Peacock Award for

Occupational Health & Safety - 2007 by Institute of Directors.

Jamnagar Manufacturing Division was conferred the ICC Award for Water Resource

Management in Chemical Industry.

Jamnagar Manufacturing Division was conferred the Good House Keeping Award

from Baroda Productivity Council.

Jamnagar Manufacturing Division was conferred the BEL-IND Award for the best

scientific paper at the 58th National Conference of Occupational Health.

Naroda Manufacturing Division was conferred the Safety Award and Certificate of

Appreciation presented by Gujarat Safety Council & Directorate of Industrial Safety &

Health, Gujarat State for the recognition of safety performance at the 29th State Level Annual

Safety Conference.

Dahej Manufacturing Division received BSC 5-Star rating from British Safety

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Council, UK.

Dhenkanal Manufacturing Division received the 2nd Prize for Longest Accident Free

Period from the Honble Minister of Labour, State of Orissa.

Hoshiarpur Manufacturing Division bagged the First Prize in Safety in Punjab,

organized by Punjab Safety Council.

Patalganga Manufacturing Division won the Gold Medal at CASHe (Change Agents

for Safety, Health and Environment) Conference. It also won the III Prize in Process

Management category for Presentation on Safety through Design in chemical process industry

in Petro safe 2007 Conference.

Kurkumbh Manufacturing Division won the Greentech Safety Award silver trophy

for outstanding achievement in safety management in chemical sector.

Hazira Manufacturing Division received the TERI Corporate Environmental Award

(Certificate of Appreciation) for PET recycling project.

Nagothane Manufacturing Division received the Shrishti G-Cube Award for Good

Green Governance from Minister for Commerce and Industry, on World Earth Day.

Training and Development

Jamnagar Refinery was adjudged the winner of the Golden Peacock National

Training Award -2007.

Patalganga Manufacturing Division won the ASTD (American Society for Training

& Development) Excellence in Practice Award for innovative practice titled Learning

Functions role as Business partner: Empowering people with Knowledge to achieve Business

Goals.

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Reliance won the CNBC TV-18 instituted Jobstreet.com Jobseekers Employer of

Choice Award.

Energy Excellence

Exploration & Production (E&P) Division won The Infraline Energy Excellence

Awards 2007: Hydrocarbon Columbus Award for Excellence in Petroleum Exploration.

Patalganga Manufacturing Division won the First Prize in Energy Conservation in

State of Maharashtra organized by Maharashtra Energy Development Agency (MEDA).

Jamnagar Manufacturing Division won the Oil & Gas Conservation Award -2007

from the Centre for High Technology, Ministry of Power & Natural Gas for the excellentperformance in reduction/elimination of steam leaks in the plant.

Jamnagar Manufacturing Division was the recipient of the Infraline Energy Award-

2007 by Ministry of Power.

Hazira Manufacturing Division won the Government of India Energy Conservation

Award (2007) conferred by the Bureau of energy efficiency and Ministry of Power.

Hazira Manufacturing Division was adjudged Excellent Energy Efficient Unit at

Energy Summit - 2007 by CII.

Vadodara Manufacturing Division received the CII award for Excellence in Energy

Management - 2007 as energy efficient unit. This division also received the 2nd prize in

National Energy Conservation Award - 2007 from Bureau of Energy efficiency, Ministry of

Power, Government of India.

The Companys manufacturing divisions at Vadodara and Hazira were honoured with

CII-National award for excellence in water management - 2007 as water efficient unit in

Within the fence category. Additionally, Hazira Manufacturing Division was honoured as

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water efficient unit Beyond the Fence category.

Quality

For the first time ever, globally, a petrochemical company bagged the Deming Prize

for Management Quality. The Quality Control Award for Operations Business Unit 2007

was awarded to the Hazira Manufacturing Division for Outstanding Performance by

Practicing Total Quality Management.

QUALTECH PRIZE 2007, which recognizes extraordinary results in improvement

and innovation, was won by Hazira Manufacturing Division for its Small Group Activity

Project.

Vadodara Manufacturing Divisions Polypropylene-IV (PP-IV) plant was conferred

the Spheripol Process Operability Award-2006 for the highest operability rate with an on

stream factor 98.97% by M/s. BASELL, Italy.

Allahabad Manufacturing Division won the Excellent Category Award at National

Convention of Quality Circle (NCQC) - 07.

Six-Sigma

Lean Six sigma project on Reducing retention time of caustic soda lye tankers at

Jamnagar won the 1st prize in the national level competition held by Indian Statistical

Institute (ISI).

Patalganga Manufacturing Divisions Six Sigma Project on Improve Transfer

Efficiency for Automatic winders in PFY won the 2nd Prize for Best design for Six Sigma

Project in International Six Sigma Competition organized by IQPC (International Quality and

Productivity centre).

Barabanki Manufacturing Division won the 3rd prize in All India Six Sigma case

study contest 2008 for the Case study on Reduction of waste of Plant 2 from 16% to 8%.

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Hoshiarpur Manufacturing Division won the 2nd prize in Six Sigma competition at

National Level organized by ISI and Quality Council of India (in manufacturing category),

while Dhenkanal and Barabanki Manufacturing Divisions won the 3rd prize.

Vadodara Manufacturing Divisions Six Sigma project won the 1st prize as the Best

Six Sigma project at National level by CII.

Technology, R&D and Innovation

Vadodara Manufacturing Divisions R&D bagged an award from Indian Institute of

Chemical Engineers for Excellence in Process / Product Development for the work on Eco

friendly Process for Acetonitrile Recovery.

DSIR National Award for R&D Efforts in Industry (2007) was conferred on Hazira

Manufacturing Division for the Cycle hexane Recovery Project.

Patalganga Manufacturing Divisions Project titled Augmentation of ETP and use of

biogas in Fired heaters won the Best Innovative Project from CII.

Reliance bagged the Innovation Award at Tech Converge 2007 for innovative

developments in short-cut fibres.

Hazira Manufacturing Division won the Golden Peacock Innovation Award - 2007

for its Cyclohexane Recovery Process.

Information Technology

CIO of the Year Award for the best IT-enabled organization in India for the Year

2007.

Ones to Watch - CIO - USA Award, for figuring among the top 20 organizations

fostering excellence in IT team.

The Skoch Challenger Award conferred for the best IT Head (managing the most IT

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enabled organization) of the Year 2007.

Best IT Implementation Award, by PC Quest for Knowledge Management Systems

portal (KMS).

CIO Excellence Award for Chemical Industry Information Technology Forum for

exemplary Information Technology implementation amongst global chemical companies.

CTO Forum Hall of Fame Award for the best CIOs in India for not only providing

service to their organisations, but also serving as idols.

Social Initiatives

Hazira Manufacturing Division won the Golden Peacock Global Award for Corporat.

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Growth through Value Creation

With a vision to generate inclusive growth and prosperity for farmers, vendor partners,small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL,

was set up to lead Reliance Groups foray into organized retail.

With a 27% share of world GDP, retail is a significant contributor to overall economic

activity across the world. Of this, organized retailing contributes between 20% to 55% in

various developing markets. The Indian retail industry is pegged at $ 300 billion and

growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is

expected to grow to 10% by 2011. RRL has embarked upon an implementation plan to

build state-of-the-art retail infrastructure in India, which includes a multi-format store

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strategy of opening neighbourhood convenience stores, hypermarkets, and specialty and

wholesale stores across India.

RRL launched its first store in November 2006 through its convenience store formatReliance Fresh. Since then RRL has rapidly grown to operate 590 stores across 13 states

at the end of FY 2007-08. RRL launched its first Reliance Digital store in April 2007

and its first and Indias largest hypermarket Reliance Mart in Ahmedabad in August

2007. This year, RRL has also launched its first few specialty stores for apparel (Reliance

Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels), books, music and

other lifestyle products (Reliance Timeout), auto accessories and service format (Reliance

AutoZone) and also an initiative in the health and wellness business through Reliance

Wellness. In each of these store formats, RRL is offering a unique set of products and

services at a value price point that has not been available so far to the Indian consumer.

Overall, RRL is well positioned to rapidly expand its existing network of 590 stores

which operate in 57 cities.

During the year, RRL also focused on building strong relationships in the agri-business

value chain and has commenced marketing fruits, vegetables and staples that the

company sources directly to wholesalers and institutional customers. RRL provides itscustomers with high quality produce that has better shelf life and more consistent quality

than was available earlier. RRL has made significant progress in establishing state-of-the-

art staples processing centres and expects to make them operational by May 2008.

Through the year, RRL also expanded its supply chain infrastructure. The Company is

fully geared to meet the requirements of its rapidly growing store network in an efficient

manner.

Recognizing that strategic alliances are going to be a key driver to its retail business, in

FY 2007-08, RRL established key joint ventures with international partners in apparel,

optical and office products businesses. Further, RRL will continue to seek synergistic

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Fibre Intermediates (Px, PTA and MEG)

Reliance is the worlds 3rd largest producer of Paraxylene, and the worlds 4 th largest

producer of PTA.

Production volumes in this business were up by 29 per cent last year. This was mainly on

account of the commissioning of 1.4 million ton per annum PX facility at the integrated

Jamnagar Petrochemicals Complex.

Polymers (PP, PE and PVC)

Reliance is the largest producer of these products in the country, with a market share of

52 per cent. During the year, this business grew by 18 per cent. Again this growth is

attributable to the commissioning of the new complex at Jamnagar. The future demand

prospects for polymers remains extremely strong, with India poised to emerge as the third

largest plastics market in the world.

Oil and Gas

This is the biggest business developing for RIL. We believe, going forward over the next

five to ten years, this will become RILs largest business area. Even worldwide, for large

Oil companies this is the most profitable area. Currently, it accounts for only 3 per cent of

RILs total revenues.

RIL holds a 30 per cent interest in the unincorporated JV with Enron and ONGC to

develop the proven Panna, Mukta and Tapti (PMT) oil and gas fields. The oil production

from these areas recorded a growth of 22 per cent this year.

During the year, RIL has, in a 90:10 consortium with Niko Resources of Canada, been

awarded 12 new exploration blocks by the Govt., through a process of competitive

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international bidding. This has made RIL the countrys largest E&P (Exploration and

Production) player in the private sector, with exploration acreage of 105, 765 sq. kms.

In order to grow further aggressively in this activity, RIL has bid for 15 new explorationblocks in the second round under the Govt.'s new exploration licensing policy (NELP)

along with Hardy Oil of UK.

Financials

(Rs In Crores)

It must be noted here that, during the

year the company has changed the

basis of providing depreciation from

SLM to WDV method in respect of

certain assets. Other than this policy,

the profit would have been higher by

Rs. 163 crs. Also, the other income

for the year has been lower and tax

has gone up, in turn reducing the net

profits.

Valuations

PE: RIL quotes at a PE of 13.4 for

the FY2001. However, to measure

its true performance, one must look

at in a consolidated sense. For it's

consolidated earnings in FY 2001,

RIL quotes at a PE of 10.1. This is a

22

Particulars FY 2000-01 FY 1999-

2000

Sales 28008 20301

Other Income 383 687

Total Income 28391 20988

PBIDT 5562 4746

Interest 1216 1008

PBDT 4346 3738

Depreciation 1565 1278

Profit Before Tax 2781 2460

Taxation 135 57

Profit After Tax 2646 2403

Equity 1054 1054

Reserves 10941 9865

Book Value (Rs.) 113.8 103.5


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gross under valuation, given its excellent growth prospects in future and the potential of

value unlocking from its investments.

Also, it must be noted that the last years performance is against most of the productprices at a trough level. There is a chance of these prices improving by June01. In this

case, RIL profits can improve.

Also, this year would be marked by several potential value unlocking stories in RIL. For

eg. The phased stake divestment in RPL would give it about Rs. 3500 crs. The other big

investments like Reliance Telecom and Reliance Infocom are already in a very good

shape and are being valued highly. The Reliance Telecom project has become cash

positive and Reliance Infocom valuations are reportedly being put up at Rs. 30,000 cr

plus. Thus, each year now there is a possibility of massive value unlocking from the RIL

investments. This could be a bonanza for RIL investors.

For further clarifications/ suggestions please

contact-

KRC Research 91-22-830 4914

91-22-820 5311

KRC Sales 91-22-265 5353

91-22-265 4372

*[email protected]

Disclaimer:

This publication has been prepared solely for

information purpose and does not constitute a

solicitation to any person to buy or sell a

security. While the information contained therein

has been obtained from sources believed to be

reliable, investors are advised to satisfy

themselves before making any investments.

Kisan Ratilal Choksey Shares & Securities Pvt.

Ltd. and/or individuals thereof may have

positions in securities referred herein and maymake purchases or sale thereof while this report

is in circulation.

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Industry Introduction

Retail

Retailing is the last link in the chain of production, which begins at the extractive stages,

moves through manufacturing, and ends in the distribution of goods and services to the

final consumer.Retailing is the business, which considers every individual as a customer,

and accounts for less than 10% of the worldwide labor force but is still the single largest

industry in most nations. Retailing consists of the sale of goods or merchandise from a

fixed location, such as a department store orkiosk, or by post, in small or individual lots

for direct consumption by the purchaser.

The distribution of the consumer products begins with the producer and ends at the

ultimate consumer. Between the producer and the consumer there is a middleman the

retailer, who links the producers and the ultimate consumers. Retailing is defined as a

conclusive set of activities or steps used to sell a product or a service to consumers for

their personal or family use. It is responsible for matching individual demand of the

consumer, which supplies of all the manufactures. The word retail is derived from theFrench world retailer, meaning to cut a piece off or to break bulk. A retailer is a person

agent, agency, company or organization, which is instrumental in merchandise or services

to the ultimate consumer.

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Retailing scenario is changing day-by-day; everyday brings new opportunities along with

threats and learning because still retailing is in infantile stage so there are lots of things to

learn. In retailing the best way for learning is benchmarking which gives an idea about

our position along with competitors.

In India, the retail sector is the second largest employer after agriculture. The retail sector

in India is highly fragmented and includes predominantly small independent and owner-

managed shops. Food sales constitute a high proportion of the total retail sales. The share

was 62.7% in 2001, worth approximately Rs 7039.2 billion, while non-food sales were

worth Rs 4189.5 billion. The retail business in India is expected to reach Rs.19069.3

billion by the end of 2007.

Frequently Thought Questions

Many times I used to think that what is milk? How is it useful for us? What are its

Constituents and many more? During my association with Dairy Pure I found answers to

all my questions and queries.

Question 1: What is milk?

Answer: Milk is a lacteal secretion from the mammary glands of a healthy milky animal

free from colostrums. Milk has got mainly three constituents fat (3 to 6%), snf

comprising of proteins, lactose, minerals etc (8 9%) and water (85%).

Question 2: Is Dairy Pure milk prepared from powder?

Due to the calving cycle, cow / buffalo remain in milk for 8-9 months in a year. The high

yielding and low yielding period is different in case of cow or buffalo, but generally

winters are called flush season due to high production of milk whereas summers are

called lean season when production is less. On the other hand, the demand is almost

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constant throughout the year. Hence during flush season, fat part of milk is preserved in

form of white butter and snf in form of powder after evaporating water. These two

constituents are mixed and processed during lean season to meet the demand. So powder

is nothing but preserved snf / fat of milk 39

Question 3: How is milk useful for us?

Milk is natures perfect food for all ages. It has almost all the vital nutrients needed for

growth and well being of human body. Milk is the richest natural source of calcium and

essential amino acids. It is good for bone formation. It is particularly beneficial for people

recovering from sickness, for sportsmen, for old people, for pregnant women and forgrowing children. The doctor recommends a minimum daily intake of 250 ml. Or one and

a half glass of milk for every person. Normal cow milk has 4%fat and buffalo milk 6%

fat. There is another important constituent of milk- solids not fats these solids not fat.

(Or SNF, as it is commonly called) comprise of proteins, minerals, carbohydrates and

vitamins. For milk to be nutritionally balanced, it has to contain both fat and solids- not-

fat in right proportion.

Question 4: Why pasteurized milk is better than vendors milk?

Dairy Pure milk strictly conforms to PFA standards to comply with the legal requirement

and to provide wholesome nutritive food to the consumers. This means when we are

buying Dairy Pure milk, we are sure we are getting value for our money. We are sure of

getting the natures perfect food full 500 ml, 100ml, in every pack. We are sure of

getting milk which has longer life because of its superior bacteriological quality. The

loose milk available from local vendors in Jaipur city often does not conform to PFA

standards. It has fat and less solid-not fat than required. If our milk contains 0.5% less fat

or SNF, we are paying up to 60 paisa per pouch extra. Besides, it is not uncommon to find

artificial preservatives, not permitted by law being added to lose milk. This has been26


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authenticated in a recent campaign run by this sangh, in which it was found that more

than 60% to 70% of milk sold by private traders and loose milk contain artificial

preservatives, not permitted by law. By compromising on the quality of milk we may be

depriving our children of essential life building proteins and nutrients that only pure, high

quality milk offers.

International Retail: At A Glance

One of the worlds largest industries exceeding Rs.405 thousand lakh crore.

47 Global Fortune 500 companies & 25 Asia's Top 200 companies are retailers.

Dominated by developed countries.

US, EU & Japan constitutes 80% of world retail sales.

Retail industry can be divided into two types:

1. Organized Retail: Major players included in this segment are Reliance Reatil,

pantaloons, Spencer, Aditya Birla group, Piramal group, Raheja group, etc.

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2. Unorganized Retail: This category includes Pushcart vendors, Regular Shop/Wet

shop, Local retailers, etc.

Share of Organized Retail

Retail Landscape in India

Retail Industry in India is the second largest employer after Agriculture. It contributes to

10 % of GDP and 6-7 % of the Employment

Indian Retail - dominated by unorganized sector.

Approximately 12 million Mom and Pop Shops.

Share of organized retail sector is only 3%.

FDI in the retail sector not allowed so as protecting local retailers.

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Indian retail sector is one of the least concentrated in the world.

India is third largest market in Asia, next to Japan & China.

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Future of Retail in India

Organized Retail Industry is expected to grow at 25 to 30%.

Share of Organized retail is set to increase from 3% to about 10% by 2010.

The top 5 companies in India have a market share of less than 2% and hence

more corporate players are entering in retail.

Existing players increasing their number of stores and size.

More and more Malls, Shopping Complexes, Multiplexes and entertainment

complexes are being opened.

FDI in retail sector has not been permitted in order to protect local retailers,

hence restricted entry into single branded stores.

`

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Company Profile

Introduction

Reliance Industries Ltd. (RIL) has entered the list of Worlds Most Respected Companies

Reliance is one of the only two companies from India that have featured in the Worlds

90th Most Respected Companies list published by Financial Times based on global survey

and research done by Pricewaterhouse Coopers.

Mr. Mukesh Ambani, Chairman and Managing Director, Reliance Retail Ltd. is

among the top 50 most respected business leaders of the world. Reliance also features

among the global companies that create most value for their shareholders. Reliance is the

only company from India to feature in the list of 60 global companies that will make the

most impact on economic / social issues in emerging markets over next 5-10 years. In this

list Reliance ranks 53rd . Microsoft and McDonalds are at the top of this list.

Reliance tops the list of most respected companies in India. The survey in its list for

Indian ranks 12 companies as most respected companies. Reliance is at the top, and is

followed by Infosys at second place, and Hindustan Lever at third place. This fifth annual

global survey was based on interviews with 1,000 senior executives and opinion formers

in 20 countries weighted against the GDP of the respondents base of operations. The core

of the survey remains consistent over time, identifying those companies and business

leaders globally that are most respected by their peers and the reasons for those choices.

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RELIANCE : as an achiever34

Ranked amongst the worldTop 200 companies in terms

of profit in fortune 500 list.

Ranked amongst worlds 10Most respected chemicals

Companies.

Emerged as Indias biggestwealth creator in the privatesector over a 5-yearperiod.

Ranked amongst the worldTop 50 companies to create

The most value for theirShareholder.


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Reliance Retail

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Growth through Value Creation

Reliance retail is the retail chain division ofReliance Industries ofIndia which is headed

by Mukesh Ambani. Reliance has entered into this segment by opening new retail storesinto almost every metropolitan and regional area of India. Reliance plans to invest Rs

25000 crores in the next 4 years in their retail division and plans to begin retail stores in

784 cities across the country.

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end,

Reliance is aggressively working on introducing a pan-India network of retail outlets in

multiple formats. A world class shopping environment, state of art technology, a seamless

supply chain infrastructure, a host of unique value-added services and above all,

unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make

India proud. Ensuring better returns to Indian farmers and manufacturers and greater

value for the Indian consumer, both in quality and quantity, will be an integral feature of

this project. By creating value at all levels, we will actively endeavor to contribute to

India's growth.

Relianceis gearing up to revolutionize the retailing industry in India. Towards this end,

we are aggressively working on introducing a pan-India network of retail outlets in

multiple formats. A world class shopping environment, state of art technology, a seamless

supply chain infrastructure, a host of unique value-added services and above all,

unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make

India proud. Ensuring better returns to Indian farmers and manufacturers and greatervalue for the Indian consumer, both in quality and quantity, will be an integral feature of

this project. By creating value at all levels, we will actively endeavor to contribute to

India's growth.

37
http://en.wikipedia.org/wiki/Reliance_Industrieshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Reliance_Industrieshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Crore


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The project will boast of a seamless supply chain infrastructure, unprecedented even by

world standards. Through multiple formats and a wide range of categories, Reliance is

aiming to touch almost every Indian customer and supplier. Reliance Fresh, Reliance

Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance Wellness, Reliance

Jewels, Reliance Timeout and Reliance Super are various formats that Reliance has rolled

out. In addition, Reliance Retail has entered into an alliance with Apple for setting up a

chain of Apple Specialty Stores branded as iStore, starting with Bangalore.

RELIANCE FRESH (AN OVERVIEW)

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The Reliance Fresh supermarket chain is RILs Rs 25,000 crore venture and it plans to

add more stores across different regions, and eventually have a pan-India footprint by

year 2011. The super marts will sell fresh fruits and vegetables, staples, groceries, fresh

juice bars and dairy products and also will sport a separate enclosure and supply-chain for

non-vegetarian products. Besides, the stores would 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.

In a dramatic change due circumstances prevailing in UP, West Bengal and Orissa, It was

mentioned recently in News Dailies that, Reliance Retail is moving out stocking.

Reliance Retail has decided to minimize its exposure in the fruit and vegetable business

and position Reliance Fresh as a pure play super market focusing on categories like food,

FMCG, home, consumer durables, IT, wellness and auto accessories, with food

accounting for the bulk of the business. The company may not stock fruit and vegetables

in some states, Orissa being one of them. Though Reliance Fresh is not exiting the fruit

and vegetable business altogether, it has decided not to compete with local vendors partly

due to political reasons, and partly due to its inability to create a robust supply chain. This

is quite different from what the firm had originally planned. When the first Reliance

Fresh store opened in Hyderabad last October, not only did the company said the stores

main focus would be fresh produce like fruits and vegetables at a much lower price, but

also spoke at length about its farm-to-fork theory. The idea the company spoke about

was to source from farmers and sell directly to the consumer removing middlemen out of

the way. Reliance may exit some businesses if the business does not increase by March

2008.

.

The Reliance Retail had to face various difficulties before the launch of Reliance fresh,because of the various circumstances prevailing in Orissa, West Bengal and UP, alongwith the news focusing on the dearth of vegetables and fruits stocks. The retail business

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of Reliance then minimized its exposure in vegetable and fruit business, as a resultestablished Reliance fresh positioning a pure super market play focusing on variouscategories like IT, consumer durables, home, FMCG and food.

The retail company of Reliance may not supply the vegetables and fruits in a few states,the Reliance Fresh decided to not to race with local wholesalers partly because of the

political reasons as well as its incapability to maintain a healthy supply chain.

Growth of Reliance Fresh

The first ever a Reliance Fresh store was established in Hyderabad, wherein the company,

mainly focused on the fresh produced vegetables and fruits at comparatively low price

along with an introduction of farm to fork theory.

This was the idea, which was anticipated by the company was to take the supply direct

from the farmers and then sell straightaway to the consumers removing the middle-men

off the beaten track. Reliance introduced several formats in the marketplace to cater to

needs of common people, which includes Reliance Fresh, Reliance Super, Reliance

Footprint, Reliance Timeout, Reliance Jewels, Reliance wellness, Reliance Mart and

Reliance Digital, to name a few.

In addition to this, the Reliance Retail also entered into a treaty with Apple, which is a

leading Information Technology company, to set up a series of Apple Specialty Outlets

branded as IStore, with its first ever store in Bangalore.

With an idea to produce inclusive prosperity and growth for farmers, consumers, small

shopkeepers and vendor partners, Reliance Retail was set up in order to lead the foray of

Reliance Group into an organized retail

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Reliance Fresh in Rajasthan:

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Reliance fresh is operating in 4 cities of Rajasthan (Jaipur, Ajmer, Jodhpur and Udaipur)

with all of its listed SKUs.There are 27 Reliance fresh outlets in Jaipur, 3 at Ajmer, 3 at

Udaipur and 5 outlets at Jodhpur.

Reliance fresh supply chain for fruits and vegetable at Jaipur comprises of three sources

of supply. First one is the national sourcing located at Delhi; it supplies exotic and

temprate fruits and vegetables. Apart from this potato is mainly supplied from national

sourcing team. Fruits and vegetables found in abundance in Rajasthan are also made

available to other locations all over India by bulk sourcing. Second source of supply is

from collection centers (CC) which are located in the out side near by areas of Jaipur city.

For Jaipur identified collection centers are Piliya, Chomu, Bagru, Hathnoda, Kanota and

Moriza. Fruits and Vegetables are supplied to these collection centers from near by

village farmers then these are sent to distribution Center located at VKIA, Jaipur. Then

after proper sorting and grading these are dispatched to respective

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stores according to their indented quantity.j Third source of supply is direct store delivery

(DSD). Indirectly store delivery fruits and vegetables are sent directly to stores according

to indented quantity. Fruits and Vegetables are purchased at local Retail mandi of Jaipur

in morning auction by operation team and supply is made.

Source of particular fruit and vegetable is decided according to the availability of then

and can vary time to time. Some of the listed SKUs are according to the local buying

behavior of customers they are generally consumed in Rajasthan only but have to be

listed in national SKU listing. Vendors are also identified by operation team for bulk

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supply of fruits and vegetables.

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45

CollectionCentre

Stagingarea

Stagingarea

Sorting Area

CPC DCSTORES

.

ProcessingArea

5.

5.

Weigh and placethe goods incrates, applylabels/Bar Code

8.8. Deliver goods to DCagainst the PO

PickingArea

Store4

Store3

Store2

Store1

10.

10.

Pickingorderaccording tostorerequest

12.

12

.Crates moved to theStaging Area fordispatch to Stores9

.

9.

GR at DCand weigh

11.

11.

Transfer to store specificstorage area

13.

13.

Trucks withcrates moveto store

Association area

Area for emptyTagged crates

Sales Floor

Individual StoresPlace STO inSAP

Collective PO Made byCategory in SAP,

communicated to CPCCommunicates to CC

Stores Make GRNagainst Goods received

Stores Make GRDCagainst Crates Returned

Business Process Flow for Fresh

1.

1.

Filled F & V cratesmove from CC to CPCstaging area

2.

2.

Crates are weighedand moved insidethe CPC


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COMPANYS VISION

To be the most admired and successful organized Retail Company in India that materially

enhances the quality of life of every Indian.

We will achieve this by:

Providing unprecedented affordability, quality and choice in global products and

services

Being the partner of choice in creating prosperity for Indian farmers and otherproducers of goods and services,

Unleashing the power of the Indian workforce through the generation of new &

attractive employment opportunities, & creating an empowered & rewarding

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Create an efficient and transparent global supply chain by the creation and

optimal utilization of world-class infrastructure and international partnerships,

thus creating more value for our customers, suppliers, partners and stakeholders.

Bring prosperity to millions of Indian producers, especially our farmers, by

providing the most attractive returns for their efforts. Be a capable and

dependable partner to them right through their creation process and help them

become more successful.

Unleash the initiative, creativity & energy of Indian workforce through creation

of new jobs, & provide our employees a supportive, rewarding environment to

work and grow.

Financially reward our shareholders on a sustained basis.

TARGET PRODUCTS CATEGORIES

Reliance fresh cover following categories that account for major consumption:48


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Food

Non-Food

Service Products

Food

Fresh & Frozen

Dairy

Staples

Processed Foods

F & B

Non-Food

FMCG & Pharmacy

Apparel and Footwear

Consumer Durable & IT

Lifestyle

Home Products

Books, Music, Toys & Gifts

Service Products

Entertainment

Healthcare & Wellness

Financial Service

Travel Service

Printing & Imaging

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Fuel and Automotive

Others Services

Objective of Study

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The objective of the project was to study the Home Delivery and Milk Production at

Reliance Fresh stores in Rajasthan. This important study has been undertaken because for

surviving in todays competition it is a must to increase the selling of milk along with

improvement in quality of home delivery services.

Purpose of the Objective

1. To identify various factors contributing home delivery of goods and milk

products.

2. To identify those stores where sales of milk product is very less.

3. To identify major commodities contributing to Milk Products and home delivery

services.

Research Methodology

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The project required a direct contact with the milk champions on the floor and looking at

the procurement and logistics of Milk Products.

Area of Survey:Jaipur city (27 stores).Data Sources: Both primary and secondary data were collected for the study.

Primary Data: Primary data were collected through pre - structured schedule

by personal interview with store personnel, customers (96, 12 customers at 8

stores) and through self-exploratory study.

Secondary Data: Secondary data were collected from companys literature,

SAP and Internet.

Stores Studied:Reliance Fresh, Saras Milk, Amul Dairy, and Lotus Milk.

Duration of Survey: Six Weeks

Duration of Analysis: Two Weeks

Customers were also interviewed to make an attempt to find out what is their expectation

w.r.t quality of Home Delivery and Milk Products, taking prices also in consideration.

Besides this, customers were also interviewed to know their views regarding services

availed from competitors i.e., local retailers and other organized retail players. Floor

champions were also interviewed to know the service they are providing to customers on

the floor.

A questionnaire was prepared to gather information about the customer expectations and

his buying behavior. Customers were personally observed, on the spot personal

interaction was done and asked to fill questionnaire. The questions on the basis of

questionnaire were asked to them and the answers were then screened and the desired

information then squeezed.

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For Quality benchmarking visits to other organized and unorganized retailers were done

to compare quality they are providing and prices were also considered at the same time.

For finding quality problems faced by all the stores of Jaipur daily follow-up was done

with each store for a week to know what was the indent of the day (morning and

evening), how much was the supply against indent, what were the missing SKUs, what

were the SKUs supplied less then indent and what was the push indent for the day and

what were the quality issues of the day. Quality is all about perception.

Findings of the Study

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Results of consumer buying behavior survey

96 customers were interviewed for find out the customers perception through

questionnaire and they were asked to give there views on the scale of five from 1= verygood, 2=good, 3=neutral, 4=poor, 5=very poor on the ten parameters. These ten

parameters were price, quality, freshness, convenience, variety, hygiene/cleanliness,

packaging, personal attention, shopping experience and home delivery. And the over all

result came out is shown in table below.

Table1: Consumers perception about various formats / sources of buying fresh

fruits and vegetables.

Attributes

Pushcart

Vendor

Daily

Market/Local

Retailer

Reliance

Fresh

Other retailers

Price4 3 2 3

Quality 2 2 4 3

Freshness 2 2 4 4

Convenience 2 4 2 3

Variety 4 2 1 3

Hygiene/

cleanliness 3 3 2 2

Packaging 2 2 3 2

Personal 1 3 3 3

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9Attention

Home Delivery 1 3 3 3

Shopping

Experience 3 3 2 2

This project has given interesting findings, which can generate fruitful analysis for

reliance fresh business. In finding shows that what is the consumer perception about retail

industry? What are there trends of purchase in one year? How they responding for bad

quality items? Also there interest in purchase of exotic food. Also found that how

interestingly reliance fresh compete with other organized and unorganized players. Still

the war of price is remaining constant. But in this war still customer is not in win winsituation. Customers not get expected quality food from reliance fresh.

Quality is the one of factor which affecting on purchasing of consumer. In factor analysis

it was seen that quality is main factor at time of purchase.

17%

29%28%

19%

7%Price

Quality

Freshness

Convenience

Others

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Fig 17: Factor Influence at the Time of Purchase.

17%

28%

17%

25%

13%Push cart

Daily mandi

Reliance Fresh

Local Retailer

Other retailer

Fig 18: Quality Perception about Reliance Fresh & other Competitor.

Consumer pre-structured questionnaire observed that Reliance fresh quality does not fulfill

the quality criteria of consumer. For the evaluation of reliance fresh milk products business

compared the supply chain with the other retailer still reliance is in win situation for

margin evaluation. But B2B option is going to be next buzzword for the survival of

reliance fresh. In the marketing channel reliance is in forward than organized players but

at the customer touch point lacking for personal attention compare to the unorganized

players. In talking with in sense of promotion reliance not in much forward nothing

differentiation as compare to other organized players. Lot of things may come in notice as

time unfolds in the near future. Not only reliance but also other players increasing their

number of outlets regularly but at the same time they are loosing their control over quality

aspect by increasing their business operations.

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Suggestions for Implementation

Now days there is neck-to-neck competition in the world of Retail business and this is

increasing day by day as new companies are entering into this business. Every one wants

fame and goodwill in the retail world. For this every company has to do so many efforts.

In those efforts we can include customer satisfaction and keeping their faith along with

maintaining our profits. Only that company can survive who satisfy their customers. They

provide so many facilities to the customer such as good quality, more number of SKUs,

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quick service, attention to individual customer on the store, response to their problems

and solving them as soon as possible, etc.

As per my study I found some problems, which are contributing to the increase in, dumpand shrink in Reliance fresh stores of Rajasthan along with my suggestions.

For quality improvement:

Dump at arrival is also high so this should be minimized by proper procurement

and transportation. It should be recorded at the time of arrival of delivery on the

platform it self and it should be kept in mind at the time of indenting also.

CSA should be there on the floor every time to reduce losses due to customermishandling and to check shoplifting.

Study also shows number of SKUs available at stores of Reliance fresh is on

lead but on same time loosing quality of product.

For customer satisfaction:

Proper announcements of promotions and Todays offer should be done from

CSD as it is not done on stores.

Billing time on cash till should be reduced because customer is not ready to spend

much time on till for billing even if he is spending much time on the floor, it can

be done by more number of active tills.

Mark down zone should be properly highlighted because customers are unaware

of these marked down products they treat them as regular and carry perception as

if F&V are not of good quality on the store.

Customers should be convinced to subscribe for Membership card. Customers are not willing to write complains in complain book kept at store so

they should be asked personally if they face any problem at store.

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For store operations:

Skilled manpower is required who can understand this business like a local mom

and pop stores owner and take quick decision.

There is problem of improper forecast and indenting by stores, so stores should

give their indent on the basis of their sales and closing stock. Suggestive indents

can be provided to stores to sort out this problem.

SKUs should be marked down at proper time before they reach to total dump

quality, this will minimize dump.

Stores need trained milk champions every time on the floor.

Supply timing is also not proper. Many times supply is not on time and stores

dont have much stock of milk on the floor so time of supply should be proper i.e.

before 6:00 AM.

Billing should be done carefully of Fresh and marked down products.

Fresh arrived SKU should not be mixed with earlier supply as it is happening on

the stores. Whole lot is mixed and been marked down at the same time. So this

practice should be checked.

Promotions should be communicated with stores properly on time. Promotion

display is also not there on the store floor. Old promotion also should be removed

from the floor when they expire.

Display of milk should be according to the proposed Plano gram.

For long-term benefits following strategies can be adopted:

The major issue is the constantly decreasing quality of the SKUs available at the

store. Problem is minimized after DSD is been implemented but there is scope of

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further improvement in quality of produce available in the store. Procurement

team should be more active in finding better vendors and new sources of supply.

In transit losses should be minimized at each level of movement of SKUs.

All the categories of store should work in collaboration, as internal

communication in categories is very week.

Cross category promotions should also be promoted.

Push indents contribute to increased dump at store. So push indents should be

done with proper check.

Stock take should be done properly to keep proper record of dump.

Dump should be recorded timely and properly to the dump register.

Quality and price benchmarking should be done on continuous basis to keep eye

on services provided by other retailers.

Reliance should keep watch on other potential cities and enter into market before

other retailers, to grab advantage of early entrant like its recent opening at

Jodhpur.

SWOT ANALYSIS

STRENGTH

Brand name of the company.

New launch of Reliance fresh store in major cities of Rajasthan by the company.

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Range of SKUs available in Reliance fresh stores is much more than theses listed

with other retailers.

High quality service.

Lowest prices compared to competitors.

Number of stores is much more than other organized retailers.

Early mover advantage.

Its unique mark down policy.

WEAKNESS

The quality of milk is the major factor, which the company should consider tomeet the expectations of the customers.

Lack of trained floor champions.

Some of the SKUs on the shelf are non moving but they are still there to meet the

policy of company to make available every possible SKU.

OPPORTUNITY

Potential customers.

Many cities of Rajasthan are still not having other organized retail player.

Lack of quality service by unorganized retailers.

THREATS

Big guns of milk like Saras, Amul, Lotus, Local Milk man etc. are also there in

Rajasthan giving tough competition to Reliance Fresh. Hence lots of upcoming

alternates are there for customers.

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Annexure

Questionnaire:

1. Name :

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2. Phone no. :

3. Address :

HOME DELIVERY

1. DO YOU ORDER PRODUCTS ON HOME DELIVEY?

YES B. NO

2. IF, YES FROM WHERE DO YOU ORDER FOR YOUR HOME DELIVERY?

A.NEIGHBOUR HOOD KRANA STORE

B.MODERN TRADE

Formulate: 1. MORE

2. 6/10

3. RELIANCE FRESH

3. HOW OFTEN YOU ORDER FOR YOUR HOME DELIVERY?

A. 1 IN 15 DAYS

B. 1 WEEK

C. 2 WEEK

4. WHAT ALL PRODUCTS YOU ORDER FOR HOME DELIVERY?

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A. FRUITS & VEG

B. GROCERIES

C. MILK & DAIRY ITEMS

D. ALL HOUSEHOLD ITEMS

5. WHAT IS THE AVERAGE VALUCE OF YOUR HOME DELIVERY ORDER?

A. LESS THAN RS. 100

B. BETWEEN RS 100-299

C. BETWEEN RS. 299-10000

D. ABOVE RS.10000

RELIANCE FRESH

1. DO YOU VISIT FOR RELIANCE FRESH FOR DAILY NEEDS?

A. YES

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Particulars Strongly

Agree

Agree Moderately

Agree

Neither

Agree nor

Disagree

Moderately

Disagree

Disagree Strongly

Disagree

Price

Quality

Promotional

SchemePlace and

LocationNo. of

SKUsAvailability

of Exotic

VarietiesAmbience

of the store

Behavior ofFront line

staffBilling

Time

No. Reliance Fresh Stores In Rajasthan

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District No. Of Stores

JAIPUR 27

JODHPUR 5

AJMER 4

UDAIPUR 3

BIKANER 3

TOTAL 32

Toll free number forHOME DELIVERY*: 0141-4005555

(* free delivery in 3Km. Area)

Rates of milk products of reliance and other competitors

Name of milk product Rate (in

Rs.)

Dairy pure double tonned (1 ltr.) 19

Dairy pure full cream (1ltr.) 25

Dairy pure tonned (1ltr.) 21

Dairy pure tonned (500ml.) 10.5

Dairy pure double tonned

(500ml.)

9.5

Dairy pure full cream (500ml.) 13

Amul tonned (500ml.) 10.5

Amul double tonned (500ml.) 9.5

Amul gold (500ml.) 13

Amul gold full cream 25

Saras tonned (500ml.) 10.5Saras double tonned (500ml.) 9.5

Saras gold (500ml.) 13

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MARKET RESEARCH FOR RELIANCE DAIRY PURE & HOME DELIVERY

Vijay Path, Mansarover Reliance Fresh Store

Dairy pure Tonned 500ml milk 12 Litre

Saras Tonned 500ml. milk 12 Litre

Saras gold 500ml. 12 Litres

TOTAL 36 Litres

Delivery Van Come at 5:40a.M.

Home Delivery 14 liter milk

Comments:-

The sell of milk is not good in this store.

The home delivery is not good in this area.

The staff is not active.

Shiprapath, Mansarover Reliance Fresh Store

Saras Tonned milk 500ml 24 liter

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Total 24 liter

Home Delivery = 8 Litre

Delivery Van Come at 7:00 A.M.

Ramganj Reliance Fresh Store

Saras tonned milk500ml. 12 liter

Amul tonned milk500ml. 12 liter

Saras tonned milk 1 liter 12 liters

Dairy pure full cream milk 500ml. 12 liter

Dairy pure tonned milk 500 ml. 32 Litres

Dairy pure double tonned milk 500 ml. 24 LitreTOTAL 132 Litres

Home Delivery 17 Litre

Kalian Malviya Nagar Reliance Fresh Store

Dairy pure tonned milk 500ml. 12 liter

Saras tonned 12 liter

Saras double tonned 12 liter

TOTAL 36 Litres


Home Delivery Van Come at 6:00 A.M.

Comments:-

The smell of milk is this store is low.

The manager is so much tried to increase the sell. He concern with all juice centre

& tea stall nearest the store.

The delivery boy is the main problem of milk sell.

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Haldiya Plaza Malviya Nagar Reliance Fresh Store

Saras tonned 500 ml. 48 liter

Amul tonned 500 ml. 24 liter

Amul double tonned 500 ml. 12 liter

Saras tonned 1 liter 12 liter

Saras gold 1 liter 24 liter

TOTAL 120 Litres


Delivery Van Come at 6:30 A.M.

Comments:- The sell of milk in this store is good.

The home delivery of milk is also very good in this area.

A separate delivery boy is for the milk delivery.

Malpura Gate

Saras tonned milk 500 ml. 36 liter

Saras tonned milk 1 liter 12 liters

Saras gold 500 ml. 12 liter

Saras double tonned 1 liter 12 liters

TOTAL 72 Litres



Comments:- The sell of milk is increase in this area because there are two or three hostels in

this area.

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The manager is not concern with the hostels & nearest tea stall to increase sell.

The customer is not so aware of home delivery concept is this area.

Gopalpura Bypass


Saras double tonned 500 ml. 12 liter

Saras tonned 1 liter 12 liter

Dairy pure tonned milk 500 ml. 12 liters

TOTAL 48 LITRES

Home Delivery 10 LitreDelivery Van Come at 6:30 A.M.

Comments:-

So much old stock are there & the detail are

Saras milk 20 liter

Amul milk 12 liter

Dairy pure milk 7 liter

TOTAL 39 liter

The Staff is not so much concentrate on the milk product. The markdown is not

properly.

The customer is not so much familiar with home delivery concept.

The staff is not making aware customer to this concept.

The home delivery is increase in this area because so much people are educated inthis area

71


72/76

Vidyadyar Nagar

Dairy pure tonned 500 ml. 12 liter

Dairy pure double tonned 500 ml. 12 liter

Saras tonned 500 ml. 12 liter


Saras double tonned 500 ml. 12 liter

Amul tonned 500 ml. 12 liter

Amul gold 500 ml. 12 liter

TOTAL 84 liter


Home Delivery Van Come at 7:00 A.M.Comments:-

Some more work to increase the sale of milk.

Manager is doing good work to increase sell. Manager is talk with juice centre &

tea stale to increase sell.

Barkat Nagar

Saras tonned milk 500 ml. 24 liter

Saras gold milk 500 ml. 12 liter

TOTAL 48 liter

Home Delivery 12 Litres


Comments:-

Delivery boy is not available so the home delivery is not proper.

The manager is not so much concentrate on home delivery & milk product.

The customer is not aware of home delivery concept.

72


73/76


74/76

Comments:-

The home delivery of milk is low it should me increase.

The home delivery is increase in this area because so much people are educated inthis area.

The manager is not so much interacting with nearest juice centre & hotel.

Kisanpole Reliance Fresh Store

Dairy pure tonned milk 36 liters

Saras tonned milk 24 liter

Saras gold milk 24 liter

TOTAL 84 liter



Comments:-

The behave of manager is not good. He is not concern to increase the sell of milk

product.

The staff is so lazy.

The manager is not so much concern about the customers.

The customers are not so much happy with the staff & manager behavior.

The home delivery boy is not in the store.

The staff members are doing the home delivery.

74


75/76

Findings:

No proper advertising strategy of dairy pure.

Unskilled staff because of laziness and no interaction with customers.

Lack of knowledge about the home delivery facility and staff is also not telling to

customers.

Non availability of milk champions (delivery boys).

No credit facility to customers as compare to local milkmen.

Suggestions:

Proper advertising about reliance milk products.

Credit facility to major consumers like juice stores, tea hotels, and restaurant.

Try to communicate with college canteen.

Training to the respective staff and store manager.

References

75


76/76

Literature reviewed:

Marketing Management - Philip Kotler

Business Research Methods - Donald. R. Cooper

Business Magazines - Retailer, Retail Buzz, Business World, etc.

Web Portals:

http://www.ril.com

http://www.thehindubusinessonline.com

http://www.indiaoneshop.com/retailing.htm

http://www.rpggroup.com/bussectors/spencers/services.htm

http://www.indianmba.com/Ocassional_Papers/OP99/op99.html

a comprehensive analysis of reliance home delivery & milk product

Documents