Reliance Retail Final

8/4/2019 Reliance Retail Final

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RELIANCERETAILGrowth through Value

Creation

BY Siddesh Jadhav (1031)


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Introduction

Reliance

Retail Limited

(RRL) A


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Reliance: Retail Vision

To be the most admired andsuccessful organized retail company

in India that materially enhances thequality of life of every Indian by

- Providing unprecedentedaffordability, quality and choice

- Being the partner of choice in


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RELIANCE RETAILPLANS : OVERALL

Format Supermarket

Speciality Stores

Convenience stores

Hypermarkets

Verticals 15 verticals with an emphasis on food

Brands A mix of in-store and others

Investment US $ 5.5 6 bn

Targeted Revenue About $25 bn by 2011-12

Employment Approx 500,000 employees


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The famous relianceretail wardrobe

Reliance fresh (Supermarket) First Venture

Reliance Super (Mini-Hypermarket)

Reliance Mart (Hypermarket)Reliance Trends ( Apparels and accessories)

Reliance Wellness (Medicine, health care andBeauty Products)

Reliance Footprint

Reliance Time out (Books, toys, music andgifts)

Reliance Digital and iStore


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Reliance Retail is structured in sucha way that Logistics is handled by

Reliance Supply Chain Solutions,Manpower by Strategic ManpowerSolutions, Food Processing byReliance Agri Products Distributions

and Reliance Food ProcessingSolutions.


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RelianceFresh


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Why did Reliance chooseRetail business?

97% of retail sector is unorganized

CAGR (Compound Annual GrowthRate) of 46.6%

Large untapped middle class marketwho aspired for better shoppingexperience at reasonable prices.


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Why Agri-business?

Food dominates the shopping basketin India.

Percentage of private consumptionexpenditure of food:

> 9.7% - United states

> 15% - U.K and Japan

> 53% - India


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Why Agri-business?(contd..)

Scope to exploit weak supply chain

Build a parallel business in storageand processing, a lucrative business.

To exploit to the cost advantage itgets by having a farm to fork model


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Growth plan

3rd November 2006- Launch inHyderabad

24th January 2007- 40 stores in total

Five year target - 4000 stores all

over the country with an investmentof Rs.2,500 billion! to cater 750cities and 6000 rural towns

-


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Supply Chain-Efficientsourcing

Buying directly from farmersresulted in 15-20% purchase costreduction compared to mandi

Contract farming

Farmers included in the relianceretail supply chain.


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Rural Business Hubs(RBHs) and Ranger farms

Provide financial, agricultural,veterinary and educational inputs tothe farmers

Platform to directly source products

50 RBHs in Punjab covered almost99% of the villages


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Store layout


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PRICING STRATEGY

Discount pricing strategy.

Wide price range of each items.

Credit card acceptance.

Accept coupons.

Competitive prices.Price marked in paisas


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Promotional Strategy

Advertising

Sales Promotion

Festive season special offersLive announcement & spot discounts

Reliance Fresh membership cards

Promotes new product.Organizing events

Providing gifts-Free goods.


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Challenges faced

Traders opposition in UP added tothe loss of the company(Rs.200crores)

Integration of supply chain in terms

of logistics didnt work well

Political inclination towards mom n

pop shops


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Future plans

Train students and housewives Customer care & Quality service Parttime job

New format of food and caf Reliance

food

Private label sale through Kirana store


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THANK

Reliance Retail Final

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