Retail Projeect Semi Final

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 17

ACKNOWLEDGEMENT

We would like to express our deep gratitude to our Professor for her guidance, enthusiastic and
encouraging support.

We are highly indebted to “ONLY FRESH” AND “RELIANCE FRESH” for their guidance
and constant supervision as well as for providing necessary information regarding the project &
also for their support in completing the project.

We would like to express our gratitude towards members of “ONLY FRESH” AND
‘RELIANCE FRESH” for their kind co-operation and encouragement which helped us in the
completion of this project.
INTRODUCTION

INTRODUCTION TO RETAILING INDUSTRY

One of the fastest growing industries in


India is Retail industry. Retailing
includes all the activities in selling
goods or services directly to final
consumers for personal, non-business
use. A retailer or retail store is any
business enterprise whose sales volume
comes primarily from retailing.

Retailing is a complex business and it


has always played an important role in
economic development. It contributes to development by making the goods/ services from the
producers and suppliers of merchandise available to the population, catering to their individual
requirements.

Retailers when compared to manufacturers, they have to be much careful with their customers
because the trading area of retail store is limited unlike manufacturers of brands. There is a
process of retailing which involves several decisions. Retail value proposition is at the centre of
the framework. The proposition is derived considering the market profile and expectations,
opportunities present in the market, competitive stances and activities, and the retailer’s
objectives and resources. Based on the proposition, retailers decide on the format, merchandise,
location, supply chain, pricing, promotion, and other aspects of the retailing mix. [ CITATION Sin12
\l 16393 ]

Here, we have taken Only Fresh as a store that provides retailing service. The detailed report
about the industry is made in reference to the Only Fresh retailing store.
HISTORY OF THE COMPANY: 
INTRODUCTION OF ‘ONLY FRESH’

Only Fresh is a supermarket located in the city of Ahmedabad, Gujarat that provides retailing
service.
It is situated in South Bopal area of the
city. It was started in the month of
April, 2016 and is just a few years old.
It is owned by a Jain family. The
owners are Mr. Girish Sanghvi and
his son Mr. Akash Sanghvi. The idea
of opening a supermarket in South
Bopal came to them after a complete,
detailed analysis of the supermarkets of the city, as well as of the area South Bopal.

The store aims at being a one-stop shop for buyers, where they can come in and shop for their
entire month’s home needs. The increment in the product variety is done every single day. The
main target market for them is the increasing number of families shifting in the area due to its
rapid development. The location is a huge advantage for them since there are very few
competitors in the nearby area, especially of their scale and size. The store also aims to be one of
the eminent outlets of retail industry in the south Bopal are within couple of years.

The main reason that results into high popularity of the store in such a short span of time is the
wide range of products and the fact that employees are extremely warm and welcoming.
The store also provides various facilities such as home deliveries, which add to its unique selling
point. It also gains an advantage when it comes to acceptance of ‘Sodexo’ and ‘Ticket’ coupons,
as none of the competitors are doing it.[CITATION Jee07 \l 16393 ]
As a retailing service it is quite similar to Reliance Fresh, however it has certain unique selling
points that makes it exclusive in nature and one of its kind of a retailing industry in the south
bopal area.

INTRODUCTION OF ‘RELIANCE FRESH’

Reliance Retail started its


journey in 2006 with the
opening of its first Reliance
Fresh store. Today Reliance
Retail operates 584 Reliance
Fresh and Reliance Smart
stores and sells over 200
metric tonnes of Fruits and
over 300 metric tonnes of
Vegetables every day.

Reliance Fresh is India’s


leading neighbourhood retail
chain, synonymous with
freshness & savings. With the
three core promises of Fresh Hamesha, Available Hamesha and Savings Hamesha, Reliance
Fresh is a one-stop-shop for fresh shopping, fresh savings and fresh happiness.

From fresh fruits & vegetables to dairy, cereals to spices, processed food & beverages to home &
personal care products, they have the entire gamut of your grocery needs covered.

Across our stores, they retain a strong customer centric approach to meet all your shopping needs
- be it routine or seasonal, well known brands or popular local products.

Continuing Reliance’s hallowed tradition of backward integration, Reliance Retail directly


partners with a large number of farmers and small vendors in a farm-to-fork model. The linkages
with the farm have brought about transformational changes in the quality of life of the farmers as
also enhancing the quality of produce, reducing wastage by shortening the time to move fresh
produce and reducing intermediaries in the value chain thereby benefiting all.

RETAIL STRATEGY 

ABOUT ONLY FRESH’S PRODUCTS AND SERVICES

Retail operations enable a store to function smoothly without any hindrances.


Only Fresh is the convenience Retail store format. A place of business usually owned and
operated by a retailer but sometimes owned and operated by a manufacturer or by
someone other than a retailer in which merchandise is sold primarily to ultimate
consumers.

The store aims at being a one-stop shop for buyers, where they can come in and shop for their
entire month’s home needs. They are increasing their product variety every single day. The main
target market for them is the increasing number of families shifting into the area due to its rapid
development. The location of the store is a huge advantage for them as there are very few
competitors around, especially of their scale.

ABOUT ‘RELIANCE FRESH’S’ PRODUCTS AND SERVICES

Reliance Fresh is the convenience store format which forms part of the retail business of
Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in
excess of Rs 25000 crores in the next 4 years in their retail division. The company already has in
excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits and
vegetables, staples, groceries, fresh juice bars and dairy products.
TARGET MARKET
TARGET MARKET OF ‘ONLY FRESH’
 A target market is the market a company wants to sell its products and services to, and it
includes a targeted set of customers for whom it directs its marketing efforts.
 Identifying the target market is an essential step in the development of a marketing plan.
 A target market can be separated from the market as a whole by geography, demographic and
psychographic.
[ CITATION inv17 \l 16393 ]

TYPES OF TARGET MARKET

1) Age Target Marketing


 It is related to targeting a product or service to a particular age group
 In the case of only fresh their target market is generally people of all age groups
2) Income-Sensitive Marketing
 It is related to consumer of particular economic status
 Only fresh targets consumer of middle class or upper middle-class people
 Generally, prices of stores are set on the basis of people targeted of particular economic
status
3) Gender-Specific Marketing
 Gender-specific marketing shapes an advertising campaign toward one gender or specific
group within that gender.
 For example, target marketing toward pregnant women seeks to generate more interest in
your small business's goods and services within that particular group.
 Only fresh store is for all the gender in common
4) Geographic Target Marketing
 This strategy also works with seasonal marketing campaigns to take advantage of shifting
consumer moods as the weather turns hot or cold.
 For example, many beverage companies roll out pumpkin-flavoured hot drinks during the fall
to catch consumers turning attention toward Christmas and colder weather.
 Only fresh sells seasonal fruits and vegetables along with beverages

TARGET MARKET OF ‘RELIANCE FRESH’

Target Markets: Although retailers normally aim at the mass market, a growing number are
engaging in marketing research and market segmentation, because they are finding it
increasingly difficult to satisfy everyone. Through a careful definition of target markets, retailers
can use their resources and capabilities to position themselves more effectively and achieve
differential advantage. The tremendous growth in number of speciality stores in recent years is
largely due to their ability to define precisely the type of customers, they want to serve.

In order to generate revenue reliance fresh targets house makers since they are the one purchase
the goods for the house so they will be the frequent visitor also Older shoppers and Generation X
consumers hold the key to survival for stores like reliance fresh and independent outlets

In order to survive the price competition from the mega giants in the retail business, Reliance
fresh must stress target marketing and customer service.
Reliance fresh targets older shoppers and Generation X consumers because these people are
looking for particular conveniences when they shop.

Generation X consumers and house makers are a key market because they seek many of the same
conveniences, plus take-home food and 24-hour service

In stressing customer service, Reliance fresh positions themselves in the communities and
neighborhoods as the customer service leader in the market
Stores continuously tracks the customer service perception
MERCHANDISE ASSORTMENT:
MERCHANDISE ASSORTMENT OF ‘ONLY FRESH’
Items, here at Only Fresh includes personal care, fresh fruits and vegetables, confections and
candies, breads and bakery, frozen foods, ready to eat, spices, imported goods toiletries, organic
foods, baby foods, canned items, cosmetics, dairy products and diet foods.

A brand is a name, term, design, symbol, or other feature that distinguishes one seller’s product
from those of others. Different brands available at Only Fresh are Patanjali, Nestle, Hindustan
Unilever, Proctor and Gamble, Sanjeevni, TATA, Everest, Balaji, Cadbury, Amul, Pepsi. Also
includes Fresh and Fresh and few private labels.

MERCHANDISE ASSORTMENT OF ‘RELIANCE FRESH’

Vegetables and Fruits: This is the specialty of the store as they provide fresh fruits and
vegetables and a lower rate than the market price.
Household items: In the store one will get all the household items required sometimes they
maybe of a slightly higher price but reliance fresh assure quality of these items.
Food and Beverages: In this area of product line reliance fresh stocks all the premium brand of
food, and beverages it also sells its own brand of food and beverages in their stores and also
supplies their private label to other retail stores.
Groceries: In this sector reliance fresh is promoting its private label as they are promoting their
own brand and they do the packaging of the product and then labels it privately and then sells
it at a premium as compared to the loose items.
Dairy products: The dairy products in some location are procured from the farmers themselves
and at some places it is procured by the manufacturer. One can get variety of dairy products in
these stores.
Refrigerated products: This product line is dominated by the brands available in the market and
very less private labeling is done.
Non- Food items: Here they get many petty nonfood items at a premium than market price

HUMAN RESOURCES:

HUMAN RESOURCES AT ONLY FRESH

The store has a very warm and welcoming staff. We observed that the staff was well
aware of the products that were offered by them and this is something that is lacked by
other stores in the area.
The main reason that results into high popularity of the store in such a short span of time
is the wide range of products and the fact that employees are extremely warm and
welcoming.
The store also provides various facilities such as home deliveries, which add to its unique
selling point. It also gains an advantage when it comes to acceptance of ‘Sodexo’ and
‘Ticket’ coupons, as none of the competitors are doing it

HUMAN RESOURCES AT ‘RELIANCE FRESH’

This store has also a very warm and welcoming staff. We observed that the staff was well
aware of the products that were offered by them and special training was provided to
them.

We also observed physically challenged people were also working at store.


Generally, they are paid salaries on monthly basis which ranges from 14,000 rupees to
20,000 rupees per month.
STORE LOCATION

STORE LOCATION OF ‘ONLY FRESH’

The store is located in south bopal where most the residents are non-Gujarati. Unlike the
Gujarati’s, most of the residents prefer a healthy diet and are more interested in having organic
food. The owner of the store soon realised this gap and now the store sells organic food of
various variety.

The store even has a section imported goods which includes imported chocolates and fruits,
which is not provided by any other store in that area.

STORE LOCATION OF ‘RELIANCE FRESH’


Reliance Fresh in Navrangpura, Ahmedabad

Owned by the esteemed Reliance Industries of India, Reliance Fresh in Navrangpura is a name to reckon
with. This establishment, established in 2008, sells all kinds of fresh fruits, vegetables, groceries, staples,
juices and dairy products among others. Currently, the brand pans across the country with more than
1,691 fully-functional and operative outlets catering to its wide customer-base. Headed by Mukesh
Ambani, this retail store has plans to further expand in terms of investment in the coming years.
Sprawling over an astounding 3000-4000 square feet space, the shop can accommodate a large number
of customers at a time. Reliance

Fresh has an online shop too which enables the customers to shop groceries and other items from the
comforts of their homes as per their convenient time. Ensuring top quality products at the best prices,
this establishment promises an enhanced and hassle-free customer experience. Providing staggering
discounts across a wide range of products, the retail outlet is a favorite among its customers. The
establishment stands at Stadium Road, Stadium Road owing to which customers arriving from any part
of the city can easily find the outlet

PRICING:

PRICING OF ‘ONLY FRESH’

Income-Sensitive pricing strategy

Pricing includes the list price, the discount functions available, the financing options available
etc. It should also take into the consideration the probable reaction from the competitor to the
pricing strategy.

This is the most important part of the marketing mix as this is the only part which generates
revenue. All the other three are expenses incurred. The price must take into consideration the
appropriate demand-supply equation.

 It is related to consumer of particular economic status


 Only fresh targets consumer of middle class or upper middle-class people
 Generally, prices of stores are set on the basis of people targeted of particular economic
status

PRICING OF ‘RELIANCE FRESH’


Pricing includes the list price, the discount functions available, the financing options available
etc. It should also take into the consideration the probable reaction from the competitor to the
pricing strategy.

This is the most important part of the marketing mix as this is the only part which generates
revenue. All the other three are expenses incurred. The price must take into consideration the
appropriate demand-supply equation.

Reliance fresh came up with a very catchy punch line “Growth Through Value Creation”. This
was to attract the middle- and lower-class consumers and the effect can clearly be seen in the
consumer base Reliance fresh has now.

 It considers its discounted price as its USP


 There is an average discount of 7-8% on all items in respect to their MRP.
 Prices of products are low because it is able to secure stock directly from the
manufacturer.
 There are huge synergies in terms of bulk purchasing, central warehousing and
transportation. These all factors help this retailer to keep low prices.
 Low margin, High sales volumes
 Centralized sourcing
 Discount pricing
 Value pricing
 Promotional pricing-Psychological discounting -Special event pricing

COMMUNICATION MIX:

COMMUNICATION MIX OF ‘ONLY FRESH’


Media channel are ways for promoting products and or services to customers and/or prospects.

There are various channels and picking the best suitable for the company is difficult but when it is suits
the best it can prove to be cost effective. There are traditional as well as interactive channel of marketing.
Traditional includes:

 National Cable Television

 National Broadcast Television

 Local Broadcast TV

 Local Cable TV

 Network Radio

 Local Radio

 Print — Newspaper

 Print — Magazines

 Out of Home

While interactive media channels include:

 Paid Search (pay-per-click)

 Banner advertising

 Facebook campaigns

Media Channels used by Only Fresh

1. Pamphlets: This is considered an old fashioned in this digital age yet it is tried and tested way of
marketing which will never become obsolete as long as paper is still part of our daily lives. The main
idea is to keep using various new and creative ways of using papers.

2. Banners: A banner and Poster used by Only Fresh is another important media for
advertising. They advertise these banners on Cycles which roam around the South Bopal area
and create awareness about the store. They also increase this awareness during festivals by
sticking posters of the store in nearby areas. They give offers during festivals which are
conveyed with the help of the banners. Only Fresh also uses barricades that are used at the
traffic signals.

3. Media cannels used by Only fresh and Hind supermarket is more or less the same, only the
magnitude of advertising differs as Hind supermarket is a prominent players with more
varieties of product line and also has more experience in analysing the buying behaviour of
the customers of that area as it was established long ago than Only Fresh. The media
channels like customer membership, pamphlets in newspaper, advertising on police
barricade, in-store and out-store advertising, advertising on tree guard, advertising on cycle
hoarding, etc.

4. Only Fresh is a new enterprise which mainly focuses on sustaining in the market by using
defensive marketing strategies by concentrating in catering specific area of south Bopal,
Ahmedabad and are not planning for expansion of business at this stage due to the reasons
like limited resources, less experience in the field, high competition, higher exit barriers, etc.

COMMUNICATION MIX OF ‘ONLY FRESH’

• Reliance fresh has promotion budgets. The biggest idea behind all advertisements is to make
people do bulk shopping.

• There are promotional strategies of Reliance fresh. One is the holistic advertisement which
promotes the brand and creates awareness among people.

• It is not targeted at promoting each store but only creates an image of Reliance fresh as low-cost
shopping option.

• Other type of promotion is the particular store-oriented promotion which includes speaking on
the loudspeaker in nearby blocks.

• Leaflets are given in local newspaper. There are promotional efforts even inside the store. Buy 2
Get 1 Free types of promotions are very common. Original prices are cut down and new prices
are shown, of which customer takes quick notice.
There are loyalty schemes which reward regular clients. Promotion is also done through making
membership cards for Reliance fresh customers

A clear understanding of the customer value helps decide whether the cost of promotion is worth
spending.

There are three main objectives of advertising for Reliance fresh are to make people aware of an item,
feel positive about it and remember it. The right message has to be communicated to the right audience
through the right media. Reliance fresh does its promotion through television, hoardings and bus shelters.
They use print ads and the television programs are also an important marketing medium for promotion.
Some of the most famous marketing campaigns of Reliance fresh is: ‘Food and Fun’

STORE LAYOUT:

STORE LAYOUT OF ‘ONLY FRESH’

TYPES OF STORE LAYOUT

 Forced-Path Store Layout.

 Grid Store Layout.

 Loop Store Layout.

 Straight Store Layout.

 Diagonal Store Layout.

 Angular Store Layout.

 Geometric Store Layout.

 Mixed Store Layout.


Out of these many types of store layouts ONLY FRESH follows grid store layout.

It was observered that store had bright lightnings and pleasant fragnace

It was not over croweded

Assistance from staff was easily available

There are two billing counter since too many people are not observed at a time

STORE LAYOUT OF ‘RELIANCE FRESH’

 Forced-Path Store Layout. ...

 Grid Store Layout. ...

 Loop Store Layout. ...

 Straight Store Layout. ...

 Diagonal Store Layout. ...

 Angular Store Layout. ...

 Geometric Store Layout. ...

 Mixed Store Layout.

Out of these many types of store layouts reliance fresh follows grid store layout

GRID STORE LAYOUT

The grid store layout design is a familiar, repetitive pattern favored by retail drugstores like Walgreens
and hardware stores like Ace Hardware. According to Ebster, there are multiple advantages to the grid
layout, including the following: 

 Customers can move quickly through an efficient floor space using standard fixtures and
displays. 

 The presentation is uniform and comfortable due to its popularity, creating a seamless customer
experience. 
 Design simplifies inventory control for the retailer - a key to retail strategy that leverages store
design to maximize profitability. 

Reliance Fresh in Ahmedabad reveals an extremely commodious space with separate aisles for each
category of products.

While the fruits and vegetables are displayed in appropriate baskets, the frozen products are stored at
optimal temperatures inside refrigerators which help to retain the freshness and high quality.

There are several billing counters at the shop that issue invoices and credit memos to the customers
with promptness. It serves the residents from 06:00-18:00 - 15:00-23:00.

Merchandise fixture heights are not consistent. Tall fixtures often block store lightening and line of sight

Over communication is noticed at the entrance gate.

Poor lightening and placement of signages in the store

Can be deduced, inadequate illuminated store façade and branding due to cost savings

You might also like