Reliance Digital

Presented By - Tuhin Rawat / PGP30055 / IIM Lucknow

A typicalRelianceDigitalStore

Reliance Digital

Reliance Industries

Reliance Retail

“Reliance Industries Overview

Business Segments

● Exploration and Production

● Petroleum Refining and Marketing

● Petrochemicals

● Textiles

● Retail Reliance Retail

Reliance Retail - Competitive PositioningIt is a subsidiary of Reliance Industries, which is involved in retailing,

exploration and production, refining and marketing,

petrochemicals and telecommunication.

Offers Private Label Brands in limited numbers and are offered under the

name of Reconnect.

Offers products in the low to medium price range

Positioned in rapidly growing retail channels such as non-grocery retailersDoes not engage in Internet retailing and focuses on store based retailing.

“Objective of Reliance Digital

▷ Offering complete range of digital products at Reliance Digital

▷ Providing the ambience to simulate consumer lifestyle

▷ Intelligent buying decision and complete product life cycle support

“Major Players

Product Range of Reliance Digital

Air Conditioner

Refrigerators

Water Purifiers

Kitchen and Home Appliances

Gaming Consoles and Games

Digital Cameras

Electronic Musical Instruments

Computers and Peripherals

Mobile and Fixed line Instruments

Audio and Video Products

The Big PictureReliance Retail and Store Based Retailing

Store Based Retailing Market

27,806 bn INR

Share of Reliance retail in

Store Based Retailing

83.41 bn INR

Average growth in terms of sales over 3 years for Reliance Retail

7.24%

Reliance Digital

Revenue : INR 610 million

Store Based Retail Industry Growth

Average growth rate 7.92%

Average Forecasted Growth rate in Consumer Electronics ( 2013-18) in terms of sales value

-1.3%Average Forecasted Growth rate in Consumer Electronics ( 2013-18) in terms of volume

8.8%Growth in sales of Electronics and appliances Specialist Retailers (2009-14)9.92%

Brand EquityCustomer Based Brand Equity

Differential Effect▷ One stop service and support by ResQ▷ Live Experience to touch and feel products▷ Expert sales advisors to understand consumer requirements▷ Customer engagement - In store activities

Brand Knowledge▷ 1000 retail stores▷ Promotional activities involving bollywood celebrities▷ Regular advertisements in print media, about daily offers

and sale.▷ Back to college students campaign to target youth▷ Leaflet distributions, Digital Life Catalogue▷ SMS Campaign and Radio spots

Consumer response to marketing▷ Reliance Digital grew at 76% with revenue of 61 crore INR▷ Revenues have grown by 42 per cent on a year on year

basis▷ Expecting to grow 5-6 times in order to achieve revenue of

40000-50000 crore INR

Reliance Digital outperforms Croma in every consumer experience parameters

Market Segmentation

▷ Location○ Targets small towns and metro cities

▷ Price○ Offers products for larger audience with prices ranging

from cheaper to premium

▷ Demographics○ Targeting youth and tech savvy citizens of the country○ Offers products to brand loyal customers ex. Apple

Marketing Mix

Product▷ Mobile Phones, Computer, TV & Audio, Cameras, Home Appliances, Kitchen

Appliances, Gaming and Accessories.

▷ 150 International and 4000 national brand’s products available

PriceOffers product in a low to medium price range.

Competitive price range with promotions and offers

EMI Facility available at the retail store outlets

Promotion▷ In Store activities and events

▷ Advertisements and offers in print media

▷ Leaflets distribution

▷ SMS Campaign

▷ Radio spots

▷ Celebrity movie promotional activities

▷ Special events for youth engagement

Place

▷ Reliancedigital store

▷ Reliance Digitalxpress(premium stores, opportunity to learn to do extra stuff

with their gadgets)

▷ Digital Xpress Mini(relatively

smaller in size than Reliance Digital & Digital Xpress

Stores)

Competitive Frame of Reference Consumer Durable Market SizeRs. 40,000 cr

● Operates 689 stores● Online retail platform

reliancedigital.in● 3044cr revenue FY14

● Plans to open 2000 retail stores● Present in three formats - Reliance

Digital, Digital Xpress, Digital Xpress Mini

● Parent Company - Reliance Retail

● Operates 101 stores● Online retail platform

cromaretail.com● 3200 cr revenue FY14

● Plans to open 10-12 retail store annually

● Parent Company - Infiniti Retail

Point of difference

▷ 150 international and 4000 national brand products

▷ Digital Zone to touch and feel the products

▷ India’s first multi product, multi brand, multi-location service facility which offers

after sales services - resQ

▷ Operates a chain of Apple resellers in India

under the name iStore

▷ Private label of products branded RECONNECT

▷ Premium stores called as Digital Xpress

▷ Digital Xpress Mini - small sized retail stores

Points of parity

▷ Lifestyle simulating ambience for best product experience

▷ Online retail platform, offering products and services online

▷ Wide range of national and international brands

▷ After sales customer service support

▷ Touch and feel support to get the best product experience

Perceptual Map

Low Price High Price

Wide Range Products

Narrow Range of Products

References

http://articles.economictimes.indiatimes.com/2013-05-09/news/39144096_1_reliance-industries-ltd-reliance-digital-reliance-retail

http://www.thehindubusinessline.com/companies/reliance-retails-growth-trail/article4974498.ece

https://en.wikipedia.org/wiki/Reliance_Digital

http://articles.economictimes.indiatimes.com/2014-05-14/news/49846862_1_croma-infiniti-retail-reliance-retail

http://www.reliancedigital.in/aboutus.html

http://www.cromaretail.com/about-us.aspx

http://www.portal.euromonitor.com/portal/analysis/