Project On Reliance Retail

1 SUMMER PROJECT/INTERNSHIP REPORT ON “RELIANCE RETAIL STORE OPERATION” AT RANCHI Submitted in partial fulfillment of the Post Graduate Diploma in Management (Marketing) at Xavier Institute of Social Service, Ranchi

By Mr. /Ms. ANJANI JHA Roll No. 40

Session 2008-10

Under the guidance of: Prof. PINAKI GHOSH

Xavier Institute of Social Service, Purulia Road, P.O.Box 7 Ranchi-834001

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APPROVAL SHEET

This is to certify that the Summer Project entitled “RELIANCE RETAIL STORE OPERATIONS (Footfalls, Catchment Analysis & Ticket Size)” at RANCHI has been prepared by Mr. Jyoti Shankar Singh in partial fulfillment of the requirement for the award of Post Graduate Diploma in Marketing Management at Xavier Institute of Social Service (XISS), Ranchi.

The study embodies data collected, analyzed & compiled by the researcher under the guidance of the undersigned and thereby approved as indicating the proficiency of the researcher. Prof. Pinaki Ghosh has also provided a lot of support from Institute to carry out my project.

Prof. Research Guide

Prof. A.R.Bodra HOD, Marketing

Prof. Pinaki Ghosh Summer Internship Coordinator. (Marketing)

Dr.Fr. B.A.Ekka, s.j. Director, XISS

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DECLARATION It is hereby declare that the project report entitled “RELIANC RETAIL STORE OPERATION ” submitted for the degree of Master of Business Administration, is my original work and the project report has not formed the basis for the award of any diploma, degree, associateship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.

Place: Date:

jyoti shankar singh PGDMM-IV trisem.

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CERTIFICATE This is to certify that Mr.jyoti shankar singh of PGDMM of XISS has completed his project report on the topic of “RELIANCE RETAIL STORE OPERATION AT RANCHI” under the supervision of Mr.PINAKI GHOSH faculty member of XISS. To best of my knowledge the report is original and has not been copied or submitted anywhere else. It is an independent work done by him.

Prof. PINAKI GHOSH XISS Ranchi

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ACKNOWLEDGEMENT Survey is an excellent tool for learning and exploration. No classroom routine can substitute which is possible while working in real situations. Application of theoretical knowledge to practical situations is the bonanzas of this survey. Without a proper combination of inspection and perspiration, it’s not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the needy services they render during the different phases of our lives. I too would like to do it as I really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project. First of all I wish to express my profound gratitude and sincere thanks to my esteemed learned Director Fr. Beni Ekka, Director, XISS, Ranchi, who allowed me to conduct the survey. I would like to thank my HOD Mr.A.R.Bodra and my mentor Mr. PINAKI GHOSH who was always there to help and guide me when I needed help. I would like to thank Mr.Anil kumar Singh, (Head HR) Reliance Retail at Ranchi. His perceptive criticism kept me working to make this project more full proof. I am thankful to him for his encouraging and valuable support. Working under him was an extremely knowledgeable and enriching experience for me. I am very thankful to him for all the value addition and enhancement done to me. No words can adequately express my overriding debt of gratitude to my parents whose support helps me in all the way. Above all I shall thank my friends who constantly encouraged and blessed me so as to enable me to do this work successfully. JYOTI SHANKAR SINGH PGDMM

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Introduction •

India has often been called a nation of shopkeepers. Presumably the reason for this is; that, a large number of retail enterprises exist in India. In 2004, there were 12 million such units of which 98% are small family businesses, utilizing only household labour. Even among retail enterprises, which employ hired workers, a majority of them use less than three workers.

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Retailing is the combination of activities involved in selling or renting consumer goods and services directly to ultimate consumers for their personal or household use. In addition to selling, retailing includes such diverse activities as, buying, advertising, data processing and maintaining inventory.

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While sales people regularly call on institutional customers, to initiate and conclude transactions, most end users or final customers, patronize stores. This makes store location, product assortment, timings, store fixtures, sales personnel, delivery and other factors, very critical in drawing customers to the store.

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Final customers make many unplanned purchases. In contrast those who buy for resale or use in manufacturing are more systematic in their purchasing. Therefore, retailers need to place impulse items in high traffic locations, organize, store layout , trains sales people in suggestion , and place related items next to each other, to stimulate purchase.

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WHAT DOES THE RETAILING INDUSTRY INCLUDE?

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Department Stores

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Discount Stores

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Clothing Stores

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Specialty retailers

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Convenience Stores

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Grocery Stores

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Drug Stores

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Home furnishing retailers

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Auto Retailers

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Direct Sales Catalog and mail order companies

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Some e-commerce businesses

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THE IMPORTANCE OF RETAILING

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Organized retailing in India was estimated at Rs.18, 000 crores in 2002-2003 and has grown at about 40% over the last 3 years (Source KSA Retail Outlook).

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Retailing has a tremendous impact on the economy. It involves high annual sales and employment. As a major source of employment retailing offers a wide range of career opportunities including; store management, merchandising and owning a retail business.

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Consumers benefit from retailing in that, retailers perform marketing functions that makes it possible for customers to have access to a broad variety of products and services. Retailing also helps to create place, time and possession utilities. A retailer's service also helps to enhance a product's image.

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Retailers participate in the sorting process by collecting an assortment of goods and services from a wide variety of suppliers and offering them for sale. The width and depth of assortment depend upon the individual retailer's strategy.

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They provide information to consumers through advertising, displays and signs and sales personnel. Marketing research support is given to other channels, members.

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They store merchandise, mark prices on it, place items on the selling floor and otherwise handle products; usually they pay suppliers for items before selling ,,them to final customers. They complete transactions by using appropriate locations, and timings, credit policies, and other services e.g. delivery.

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Retailing in a way, is the final stage in marketing channels for consumer products. Retailers provide the vital link between producers and ultimate consumers.

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RETAIL STRATEGY AND STRUCTURE

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Successful retail operations depend largely on two main dimensions: margin and turnover. How far a retail enterprise can reach in margin and turnover depends essentially on the type of business (product lines) and the style and scale of the operations. In addition the turnover also depends upon the professional competence of the enterprise.

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In a given business two retail companies may choose two different margin levels, and yet both may be successful, provided the strategy and style of management are appropriate.

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MARGIN TURNOVER MODEL •

Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for understanding the retail structure and evolving a retail strategy."

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Margin is defined as the percentage mark tip at which the inventory in the store is sold and turnover is the number of times the average inventory is sold in a year. This is a diagrammatic representation of the frame work and can be applied to almost any type of retail business.

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Depending upon the, combination of the two parameters, a retail business will fall into one of the four quadrants. For instance L-L signifies a position which is low on both margin and turnover; whereas, H-L indicates high margin and low turnover.

LOW MARGIN HIGH TURNOVER STORES •

Such an operation assumes that low price is the most significant determinant of customer patronage. The stores in this category price their products below the market level. Marketing communication focuses mainly on price. They provide very few services; if any, and they normally entail an extra charge whenever they do. The merchandise in these stores are generally pre-sold or self sold. This means that the customers buy the product, rather than the store selling them.

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These stores are typically located in isolated locations and usually stock a wide . range of fast moving goods in several merchandise lines. The inventory consists of well known brands for which a consumer pull is created by the manufacturer through national advertising. Local promotion focuses on low price. Wal-mart in the United States is an example and Pantaloon Chain or Subhiksha are Indian examples of such stores. HIGH MARGIN LOW TURNOVER

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This operation is based on the premise that distinctive merchandise, service and sales approach are the most important factors for attracting customers. Stores in this category price their products higher than those in the market, but not necessarily higher than those

9 in similar outlets. The focus in marketing communication is on product quality and uniqueness. •

Merchandise is primarily sold in store and not pre-sold. These stores provide a large number of services and sell select, categories of products. They do not stock national brands which are nationally advertised. Typically, a store in this category is located in a down town area or a major shopping center. Sales depend largely on salesmanship and image of the outlet. HIGH MARGIN HIGH TURNOVER STORES

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These stores generally stock a narrow line of products with turnover of reasonably high frequency. They could be situated in a non commercial area but not too far from a major thoroughfare. Their location advantage allows them to charge a higher price. High over head costs and, low volumes also necessitate a higher price. LOW MARGIN-LOW TURNOVER STORES

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Retail enterprises in this category are pushed to maintain low margins because of price wars. Compounding this problem is the low volume of sales, which is probably a result of poor management, unsuitable location etc. such businesses, normally get wiped out over a period of time. RETAILING FORMATS (CLASSIFYING RETAIL FIRMS)

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Regardless of the particular type of retailer (such as a supermarket or a department store), retailers can be categorized by (a) Ownership, (b) Store strategy mix, and (c) Non store operations. Figure 1.3 illustrates this concept.

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Form of Ownership

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A retail business like any other type of business, can be owned by a sole proprietor, partners or a corporation. A majority of retail business in India are sole proprietorships and partnerships.

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Independent Retailer

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Generally operates one outlet and offers personalized service, a convenient location and close customer contact. Roughly 98% of all the retail businesses in India, are managed and

10 run by independents, including barber shops, drycleaners, furniture stores, bookshops, LPG Gas Agencies and neighborhood stores. This is due to the fact that into retailing is easy and it requires low investment and little technical knowledge. This obviously results in a high degree of competition.. •

Most independent retailers fail because of the ease of entry, poor management skills and inadequate resources. Retail Chain

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It involves common ownership of multiple units. In such units, the purchasing and decision making are centralized. Chains often rely on, specialization, standardization and elaborate control- systems. Consequently chains are able to serve a large dispersed target market and maintain a well known company name. Chain stores have been successful, mainly because they have the opportunity to take advantage of "economies of scale" in buying and selling goods. They can maintain their prices, thus increasing their margins, or they can cut prices and attract greater sales volume. Unlike smaller, independent retailers with lesser financial means, they can also take advantage of such tools as computers and information technology. Examples of retail chains in India are Shoppers stop; West side and IOC, convenience stores at select petrol filling stations. Retail Franchising

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Is a contractual arrangement between a "franchiser" (which may be a manufacturer, wholesaler, or a service sponsor) and a "franchisee" or

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Franchisees, which allows the latter to conduct a certain form of business under an established name and according to a specific set of rules. The franchise agreement gives the franchiser much discretion in controlling the operations of small retailers. In exchange for fees, royalties and a share of the profits, the franchiser offers assistance and very often supplies as well. Classic examples of franchising are; McDonalds, Pizza Hut and Nirulas. Cooperatives

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A retail cooperative is a group of independent retailers that have combined their financial resources and their expertise in order to effectively control their wholesaling needs. They share purchases, storage, shopping facilities, advertising planning and other functions. The individual retailers retain their independence, but agree on broad common policies. Amul is a typical example of a cooperative in India. Store Strategy Mix

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Retailers can be classified by retail store strategy mix, which is an integrated combination of hours, location, assortment, service, advertising, and prices etc. The various categories are:

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(A)Convenience Store: Is generally a well situated, food oriented store with long operating house and a limited number of items. Consumers use a convenience store; for fill in items such as bread, milk, eggs, chocolates and candy etc.

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(B)Super markets: Is a diversified store which sells a broad range of food and non food items. A supermarket typically carries small house hold appliances, some apparel items, bakery, film developing, jams, pickles, books, audio/video CD's etc. The Govt. run Super bazaar, and Kendriya Bhandar in Delhi are good examples of a super market. Similarly in Mumbai, we have Apna Bazar and Sahakari Bhandar.

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(C)Department Stores: A department store usually sells a general line of apparel for the family, household linens, home furnishings and appliances. Large format apparel department stores include Pantaloon, Ebony and Pyramid. Others in this category are: Shoppers Stop and Westside.

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(D)Speciality Store: Concentrates on the sale of a single line of products or services, such as Audio equipment, Jewellery, Beauty and Health Care, etc. Consumers are not confronted with racks of unrelated merchandise. Successful speciality stores in India include, Music World for audio needs, Tanishq for jewellery and McDonalds, Pizza Hut and Nirula's for food services.

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(E)Hyper Markets: Is a special kind of combination store which integrates an economy super market with a discount department store. A hyper market generally has an ambience which attracts the family as whole. Pantaloon Retail India Ltd. (PRIL) through its hypermarket "Big Bazar", offers products at prices which are 25% - 30% lower than the market price.

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Non Store Retailing •

In non store retailing, customers do not go to a store to buy. This type of retailing is growing very fast. Among the reasons are; the ability to buy merchandise not available in local stores, the increasing number of women workers, and the presence of unskilled retail sales persons who cannot provide information to help shoppers make buying decisions

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The major types of non store retailing are:

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(A)In Home Retailing: Where, a sales transaction takes place in a home setting including door-door selling. It gives the sales person an opportunity to demonstrate products in a very personal manner. He/She has the prospect's attention and there are fewer distractions as compared to a store setting. Examples of in home retailing include, Eureka Forbes vaccum cleaners and water filters.

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(B)Telesales/Telephone Retailing: This involves contact between the prospect and the retailer over the phone, for the purpose of making a sale or purchase. A large number of mobile phone service providers use this method. Other examples are private insurance companies, and credit companies etc.

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(C)Catalog Retailing: This is a type of non store retailing in which the retailers offers the merchandise in a catalogue, which includes ordering instructions and customer orders by mail. The basic attraction for shoppers is convenience. The advantages to the retailers include lover operating costs, lower rents, smaller sales staff and absence of shop lifting. This trend is catching up fast in India. Burlington's catalogue shopping was quite popular in recent times. Some multi level marketing companies like Oriflame also resort to catalogue retailing.

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(D)Direct Response Retailing: Here the marketers advertise these products/ services in magazines, newspapers, radio and/or television offering an address or telephone number so that consumers can write or call to place an order. It is also sometimes referred to as "Direct response advertising." The availability of credit cards and toll free numbers stimulate direct response by telephone. The goal is to induce the customer to make an immediate and direct response to the advertisement to "order now." Telebrands is a classic example of direct response retailing. Times shopping India is another example.

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(E)Automatic Vending: Although in a very nascent stage in India, is the ultimate in non personal, non store retailing. Products are sold directly to customers/buyers from

13 machines. These machines dispense products which enable customers to buy after closing hours. ATM's dispensing cash at odd hours represent this form of non store retailing. Apart from all the multinational banks, a large number of Indian banks also provide ATM services, countrywide. •

(F)Electronic Retailing/E-Tailing: Is a retail format in which retailers communicate with customers and offer products and services for sale, over the internet. The rapid diffusion of internet access and usage, and the perceived low cost of entry has stimulated the creation of thousands of entrepreneurial electronic retailing ventures during the last 10 years or so. Amazon.com, E-bay and Bazee.com HDFCSec.com are some of the many e-tailers operating.

THE WHEEL OF RETAILING •

Is a hypothesis that attempts to explain the emergence of new retailing institutions and their eventual decline and replacement by newer retailing institutions? Like products retailing institutions also have a life cycle.

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According to this theory new retailers enter the market as, low margin, low price, low status institutions. The cycle begins with retailers attracting customers by offering low price and low service. Over a period of time these retailers want to expand their markets and begin to stock more merchandise, provide more services, and open more convenient locations. This trading up process. Increases the retailers’ costs and prices, creating opportunities for new low price retailers to enter the market.

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The evolution of the department store illustrates the "wheel of retailing" theory. In its entry phase, the department store was a low cost-low service venture. With time it moved up into the trading-up phase. It upgraded its facilities, stock selection, advertising and service. The same department store then moves into the vulnerability phase, because it becomes vulnerable to low cost/low service formats, such as full line discount stores and category specialists. Figure 1.5 illustrates this theory. While the wheel hypothesis has a great deal of intuitive appeal and has been borne out in general by many studies of retail development, it only reflects a pattern. It is not a sure indicator of every change, nor was it ever intended to describe the development of every individual retailer.

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RETAILING DECISIONS •

There are many factors for retailers to consider while developing and implementing their marketing plans. Among the major retailing decisions are these related to (a) Target markets (b) Merchandise management (c) Store location (d) Store image (e) Store personnel (f) Store design (g) Promotion, and (h) Credit and collections.

15 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. •

Merchandise Management: The objective here is to identify the merchandise that customers want, and make it available at the right price, in the right place at the right time. Merchandise Management includes (i) merchandise planning (ii) merchandise purchase, and (iii) merchandise control. Merchandise planning deals with decisions relating to the breadth and depth of the mix, needed to satisfy target customers to achieve the retailers return on investment. This involves sales forecasting, inventory requirements, decisions regarding gross margins and mark ups etc. Merchandise buying involves decisions relating to centralized or decentralized buying, merchandise resources and negotiation with suppliers. Merchandise Control: deals with maintaining the proper level of inventory and protecting it against shrinkage (theft, pilferage etc.).

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Store Location: Location is critical to the success of a retail store. A store's tradingarea is the area surrounding the store from which the outlet draws a majority of its customers. The extent of this area depends upon the merchandise sold. For example some people might be willing to travel a longer distance to shop at a speciality store because of the unique and prestigious merchandise offered. Having decided on the trading area a specific site must then be selected. Factors affecting the site include, traffic patterns, accessibility, competitors' location, availability and cost and population shifts within the area.

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Store Image: A store image is the mental picture, or personality of the store, a retailer likes to project to customers. Image is affected by advertising, services; store layout, personnel, as well as the quality, depth and breadth of merchandise. Customers tend to shop in stores that fit their images of themselves.

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Store Personnel: Sales personnel at a retail store can help build customer loyalty and store image. A major complaint in many lanes of retailing, is the poor attitude of a salesperson. There is a growing trend now, to provide training to, these sales clerks to convert them from order takers to effective sales associates.

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Store Design: A store's exterior and interior design affect its image and profit potential. The exterior should be attractive and inviting and should blend with the store's general surroundings. The term "Atmospherics" is used to refer to the retailer's

16 effort at creating the right ambience. Merchandise display is equally important. An effective layout guides the customer though the various sections in the store and facilitates purchase. •

Promotion: retail promotion includes all communication from retailers to consumers and between sales people and customers. The objective is to build the stores image, promote customer traffic, and sell specific products. It includes both, personal and non personal promotion. Personal communication is personal selling - the face to face interaction between the buyer and the seller. Department stores and speciality stores, emphasize this form of promotion. Non personal promotion is advertising. The media used are TV, Radio, Newspapers, Outdoor displays and direct mail, other forms of promotion include, displays, special sales, give always and contests etc.

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Credits & Collections: Retailers are generally wary of providing credit, because of additional costs-financing accounts receivables, processing forms and bad debts etc. But many customers prefer some form of credit while purchasing. This explains the popularity of different types of credit cards and debit cards.

EMERGING TRENDS IN RETAILING •

In recent years the nature of retailing has changed dramatically, as firms try to protect their positions in the market place. Many customers are no longer willing to spend as much time on shopping as they once did. Some sectors of retailing have become saturated, several retailers are operating under high levels of debt and number of retailers after running frequent "sales", have found it difficult to maintain regular prices.

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Retailers are adapting to*the shopping needs and time constraints of working women, dual earner households and the increased customer interest in quality and customer service:

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Shopping Malls: A growing number of shopping malls are coming up all over the country. In north India; there seems to be a proliferation of such malls surrounding Delhi, in places like Gurgaon and Noida. In general they target higher income customers, with their prestigious specialty shops, restaurants and department stores.

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Factory Outlets: Manufacturers are opening factory outlets to sell off surplus inventories and outdated merchandise. This forward vertical integration gives manufacturers greater control' over distribution, than selling the merchandise to off price retailers. Mohini knitwear of Ludhiana (Punjab) and number of woolen and hosiery manufacturers set up their outlets in Delhi during winters.

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Non Store Retailing: Non store retailing is accelerating at a faster rate than in store retailing. This includes direct marketing. In Home shopping TV shopping and e-tailing etc.

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Diversification

of

Offerings:

Scrambled

(unrelated

products

or

services)

merchandising is taking on a broader meaning and inter type competition among retailers is growing. For instance Citibank is organizing tourist trips and sending mail order catalogues to its credit card customers. •

Impact of Technology on Shopping Behaviors: The way retailers present their merchandise and conduct their transactions are changing. Cable TV Channels are used to present merchandise, Videos have replaced catalogues and computer linkages to acquire information and make purchases are on the increase. Virtual shopping through PDA's is another possibility.

Multi Channel Retailing: Traditional store based and catalogue retailers are placing more emphasis on their electronic channels and evolving into multi channel retailers, because they can reach new markets and overcome limitations posed by traditional formats.

18 RELIANCE COMPANY PROFILE

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's annual revenues are in excess of USD 27 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 and retail. Reliance enjoys global leadership in its businesses, The Group exports products in excess of USD 15 billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial Infrastructure Limited.

FOUNDER PROFILE "Growth has no limit at Reliance. I keep revising my vision. Only when you can dream It, you can do it."

19 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. BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED

Mukesh D. Ambani Chairman & Managing Director

Nikhil R. Meswani Executive Director

Hital R. Meswani Executive Director

RELIANCE FRESH APKA FRESH APKA PADAOS ME

H.S.Kohli Executive Director

20 India’s Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been first off the blocks by launching its first Reliance Fresh outlets in Hyderabad,

Reliance fresh is the retail chain division of reliance industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. 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. The reliance fresh supermarket chain is ril’s rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011. 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.

Reliance Fresh will… • Forge strong and lasting bonds with millions of farmers and will transform the Relationship with customers to a new level • Offer unmatched affordability, quality, convenience, service and choice • Offer our customers the widest range of fruit and vegetables at the best prices in the neighborhood • Provide for the daily needs of our customers by offering staples, grocery and household products at great prices • Offer consistent high quality, unbeatable freshness and great service so that our Customers know that we can be trusted every day.

RELIANCE FRESH IN RANCHI In Ranchi there are 9 outlets of Reliance Fresh:

21 1. SPG Mart 2. Trikuta Hill 3. Rathod Circular Road 4. Vyas Enclave 5. L N Complex 6. M R Tower 7. Eyelex Hinoo Main Road 8. Prasad Motors 9. Booty More

On an average turnover is 50, 000 in Ranchi, where as compare to others cities it is too low. Their main aim is to provide good quality products in lower price & customer service & customer satisfaction. According to reliance fresh store manager they were satisfying 75% of customer expectations.

These Are the Problems We Found In Reliance Fresh in Ranchi:–

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Ranchi is a cultural oriented city

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Per Consumer income lower than compare to metropolitan cities

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The most of the consumer will prefer to go for local market

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Reliance is situated in high income consumer area There is limited consumer

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Advertising strategy is not good in Ranchi.

OBJECTIVES:

22 - It is the organizational study - identify the reliance marketing strategy in Ranchi - We provide information to reliance fresh to focus On middle class consumers in Ranchi - Implementation of this plan should not affect Other R

Marketing Research Marketing research as a functional area of management is becoming increasingly important as compared to other field. All decisions in modern business organization revolve around the marketing information. Because the success of the business does not depend upon the guess work rather have the correct information about the customer, what they want, how want, how much they are able to pay, and the substitute available in the they market etc. This information’s can be collected and utilized the help of marketing research. Marketing research is the systematic and objective identification, collection, analysis, discrimination, and use of information for the purpose of improving decision making related to the identification and solution of problem in marketing.

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Types of Research 1. considered. Basically there is a little knowledge on which to build.

2. Descriptive Research: Descriptive research embraces a large proportion of marketing research. The purpose is to provide an accurate snapshot of some aspect of the market environment. In descriptive research, hypothesis often will exist, but them tentative and speculative.

3. Causal Research: When it is necessary to show that one variable Causes or determines the values of other variables, a casual research Approach must be used. Since data collection method is from surveys, Hence Descriptive type of research is used for analysis of the data. All research approaches can be classified into three general categories research: 3. Exploratory Research: Exploratory research is used when one is seeking insights into the general nature of the problem, the possible decision alternatives, and relevant variables that need to be

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Types and collection of data used

Basically there are two types of data which are used in marketing research process.

1. Primary Data A. Observation B. Interview C. Questionnaires Interview: Interview is one of the chief means of collecting data in research process. Interview may be defined as a systematic conversation initiated for a specific purpose and focus on certain content areas.

Surveys:

There are mainly three types of surveys, depending upon the method of data gathering used: Personal surveys, telephone surveys and mail surveys.

Advantages of Surveys 1. Wider Distribution 2. Less Distribution bias 3. Thoughtful reply The primary data under processing is collected from both direct filling the questionnaires and through telephone interviews also.

25 1. Secondary Data: The data once collected by once person become the secondary data if used by another person.

Sources of Secondary Data: The various sources of data are as follows:

1. 2. 3. 4. 5. 6.

Bibliography Directories Televisions Newspapers Journals Websites

The Secondary data like information of existing customers, information about company has been taken from company website, company’s yearly chronicles and employee’s of the company.

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Sampling

A sample is a part of population. The sample should be representative of the population and the information obtained must be reliable. In any survey where reliability is desired, the errors and variances have to be controlled, measured and interpreted.

RESEARCH DESIGN

 The type of Research Design will be Descriptive  The types of Primary Data collection procedures that would probably be used.  Population –Dealers, distributors, fleet owners, company’s representative in Ranchi.  Process – Sampling  Method of data collection – Typed Questionnaire

Attitude Measurement

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Attitude is psychological constructs, a way of conceptualizing the intangible. Attitude can’ really be observed or measured directly because their existence is inferred from their consequences. Attitudes are mental states used by individuals to structure the way they perceived their environment and guided the way respond to it.

Types of Attitude measurements Scale: There are four types of measurement scale as follows.

1. Nominal Scale: In a nominal scale, objects are assigned to mutually exclusive, labeled categories but there is no necessary relationship among the categories. 2. Ordinal Scale: An ordinal scale is obtained by arranging them in order with regards to some common variable. The question is simply whether each object has more or less of this variable than some other objects. 3. Interval Scale: In an interval scale the numbers used to rank the objects also represent equal increments of the attributes being measured. 4. Ratio Scale: A ratio scale is a special kind of interval scale that has a natural zero point.

The Nominal Scale is used while designing the questionnaire. Both close ended and open ended questions are put together in the questionnaire.

DATA COLLECTION: PRIMARY DATA – Collected from consumers and suppliers, reliance fresh employees SECONDARY DATA – Collected from internet, articles, and news papers.

28 The information is the major part of any research proposal to attain certain objectives we require both secondary and primary data which is discussed above

HYPOTHESIS TESTED: The hypothesis tested on both reliance fresh and people of Ranchi H0: Reliance fresh is not famous & not significant in Ranchi. H1: Reliance fresh is famous & highly significant in Ranchi.

LIMITATIONS: Every research has certain limitation so there is no research is free from limitation same thing happen in this research which is discussed below: –

Less investment in advertising in Ranchi city

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People are very conservative

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Primary data is not sufficiently available

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Much of the research done was based on consumer and supplier survey

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Research based on Ranchi city

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Last but not least time constraint.

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NEED OF STUDY:-

A detailed study in Reliance Retail focusing primarily on two areas of their operations. 1. Retail stores operations based on aspects :I.

General operations according to the company manuals.

II. Store operations based on SUSD (Shutter up to Shutter down) 1. An analysis of footfall, ticket size & catchment of Reliance fresh stores operating in Ranchi district in order to determine their performances based on indicators like sale, sale per sq. feet , gross margin, shrinkage , dumping and ticket size for the month of May 2009 as well as their comparison with month of April 2009.

29

ACTIVITIES GROUPS WITHIN THE STORES Getting Products to Shelf 1) Indenting & Purchase Orders (PO’s) (a)Indenting – DC Delivery:Indenting will be happen after checking stock in the store and goods in transit. Or whenever if required any changes in indenting due to season, weekends or any festivals then the quantity is modified. For branded goods there is a automatic indenting system which is handled by the head office (Mumbai). Delivery of fruit & vegetables is after 48hours after being raised. Indenting for milk and dairy products is delivered after 36 hours. (b) Raising PO for Bakery PO (purchase order) for bakery supply is raised in the store and also released to the vendors by the stores. PO on vendors can be raised only once each day & it will be valid for 24 hours. 2) Receiving:(a) Checking of Delivery in DC All the Dry DC delivery will be checked by a store staff in the DC staging area before packing and loading. This is to minimize delivery count error and ensure that right quantity is delivered to the stores. Behind this all the activity owner is Store Manager.

30 (b) Receiving Goods in Store: From DC & CPC Receiving indented goods from the DC & CPC as per the delivery schedule. At the time of receiving goods from DC many things which is followed by the SM, ASM,& CSA:➢ Check the seal in front of driver. ➢ Note down the air condition temperature. ➢ Inspect stocks for transit damages. ➢ If any HU (Handling unit) / article is found damaged, excess, or missing noted it on the trip sheet for return to DC. ➢ Do the GRN (Goods return note) for the delivery for the actual received quantity. ➢ Stores are not unloading transit damaged stocks. Transit damages will be returned to DC in the same delivery truck. ➢ The main focus during goods receiving must be to unload the crates/ cartons from the truck as quickly and safely as possible. (c) Receiving from Vendors Procedure for receiving goods directly from vendors. Behind this whole activity owner is store manager/ asst. store manager. Reliance fresh stores indenting specially bakery, beverage and books/magazines and music. SM/ASM Checks:➢ Check the deliveries for quantity, damages and freshness and accept only good products as per shelf life norms. ➢ Do not accept any short shelf life or damage quantity from vendor and reduce it from the invoice if required. ➢ Remove all expired products from the shelf and get them replaced with fresh product without any GRN for the same. ➢ In case of books/magazines and music SM/ASM check bar-codes on the books or music CDs delivered by the vendor & return the unsold items to the vendors. ➢ Vendors and store staff check physically check DSD deliveries for damages and freshness and accept only fresh saleable products. 3) Replenishment of goods (a) Replenish Shelf from Goods Receiving Area Process of moving goods from goods receiving area to the respective bays/freezers/chillers as per the priority fill rule. ➢ Frozen products received must have first priority for stacking in the Freezers. ➢ Strictly follow FIFO

31 ➢ Place previous stock in the front/top of the shelf. ➢ Chilled product received must have second priority after frozen product for stacking in the chillers.

4) Managing Price Changes (a) Changing SELs for those SKU’s where price has been changed. All the changing of SKU’s is done by headquarter Mumbai. 5) Managing Planogram Implementation of changes of Planogram The Planogram indicates the location for each SKU on a shelf. This process describes how to change Planogram. Changing of Planogram is wholly managed by headquarter. Headquarter send new Planogram to store by mail. Changing of fixtures and shelf heights, at per new Planogram. The major change of shelf is less than 5 bays. Check quality of stock received as per Planogram, raise an indent of additional stock if required. Stack goods as per Planogram and readjust SEL to align with the left hand side of the first facing going from the left. All the changes made on shelf to be signed off by store manager. All the Planogram to be provided in standard format. Planogram indicate shelf heights. Planogram is send to the store at least 2 days in advance of the change. No stock to be displayed on the shelf if it not in the Planogram. If the F& V section looks empty in the late evening because of stock outs, then store manager may change only the F& V Planogram in a suitable manner to give appearance of full store. 6) Getting Products from Shelf to customers (a) Promotion management (setting up the store for new promotions) ➢ Store check that all new promotional stock has been received from the DC and the free gift under promotional offer are bundle along with the promotional stock. If the free gift is too large to be accommodated on the shelf – the gift should be provided to the customer at the till. ➢ Put up new promotional signage above the end cap at the marketing defined locations. ➢ ASM/SM briefs the staff at the morning and afternoon meeting on the promotion details. ➢ Staff need to be briefed on the following :

32 ✔ Details of the promotion ✔ Period of the promotion ✔ Advantages to the customer ✔ Any special arrangements at the till ✔ Sales target for the promotion ✔ Process for dealing with left over promotion stock ➢ If the customer brings the promotion item back for exchange / refund – the customer has to bring back the free offer as well. Exception can be made at the customer’s favour at discretion of store manager. 7) Stock Display Management ➢ Filling up the gaps on the shelves for SKU sold during the day is defined as spot fill. ➢ Fill F&V in a similar manner using crates stored in the bottom shelf of the wall racks, below heapers and in back room. Follow FEFO, FIFO rules. ➢ In case of F&V, remove the old crates, place the new crates on the racks and then place the older products on top of the newer products – FIFO ➢ Checking of temperature of chillers and freezers is also a part of SDM. ➢ It is the process of checking and moving stocks to ensure that the older stock gets sold before the newer ones. ➢ FEFO / FIFO to be followed for stock rotation for non F&V SKUs. ➢ The thing which is strictly followed is removal of damaged part of the F&V will not be carried out at the shop floor under any circumstances. ➢ In every store every day employees check for date code check schedule for the day in store perform. ➢ Employees removed expired products from the shelves and take them to the back of the store. ➢ Employees identify & segregate near expiry products for mark down as per markdown policy and guidelines. ➢ Procedure for selling loose staple products to the customer in desired quantity. ➢ Procedure for managing the concessionaire in our stores like the Pickles counters, Sweet counters etc. ➢ Home delivery: for this there is some procedure which is followed by stores. ✔ Purchase a detailed street map of the local area e.g. Eicher map ✔ Outline on the map the catchments which fall in 2 Km radius of the store.

33 ✔ Prepare a list of roads / building with in that area. ✔

They appoint two employees for Home delivery champions (HDC) – for order taking, picking and billing.

✔ Home delivery associate (HDA) – billing and delivery. ✔ There is two type of home delivery which is given by the RF: Convenience order – this is a situation in which the customer has come to the store, picked items, got them billed and then request RF store team to deliver to his residence. The payment in this case for the goods has already been received. Phone Orders - This is a situation in which the customer does not carry out the activities of physically picking, billing etc. but places an order on phone by calling either at the store or at the call centre. The payment in this case would be received once the delivery CSA goes to the customer destination and hands over the goods. ✔ Big orders store hire auto, rickshaws & it is decided by store manager. 8) Managing waste and markdowns : (a) Segregation of damaged and expiry in store :(a) For F&V crates are received carefully for the item not for sale as per reliance retail quality and are removed from the shelf. (b) It is done by CSA / F&V champion. EXPIRY:(a) Near expiry product is markdown as per the RR rule. (b) An expired product is segregated and are treated as per following. PRODUCT TYPE

TREATMENT

DSD supply

Exchange with fresh stock from the vendor at the time of next delivery

DC supply

Dump in store.

(b)Markdown for damages and near expiry:Damaged and near expiry products are markdown as per the following rules:

34

Markdown criteria:Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager. Up to Rs 30 or 30% of SP(whichever is lower) & it is also done by DM / AM. Beyond Rs 30 or 30% of SP & it is done by state fresh head.

Dumping of damages & expiry product:- Treatment for damaged & expired product are done in following manner:Loss type

Action

(a) Type C damage

• •

Dump in store (shown in SAP) Dispose in store.

(a) All expiry – (DC supply & DSD without RTV)

• •

Dump in system (SAP) Display in store

(a) Expiry – (DC supply with RTV)

•

Exchange with fresh stock, fresh vendor at the time of next delivery

➢ For processing of dump (damaged & expired) approval is obtained from store manage. ➢ After dumping, all the dump are entered into dump register in the presence of SM with his /her signature. ➢ The entire dumped product is then get hand overed to garbage collection agency. ➢ For type C damaged product some part of each product is kept as proof. ➢ Finally the dump register is present near DM/AM for approval (signature). (c)Dump on arrival:➢ On arrival of goods (F&V stock received from DC) poor quality goods are segregated. ➢ It is kept in separate place in the store with the sticker “dumped on arrival – not for sale” along with receiving date. ➢ And the respective SM is informed. ➢ In the GRN (goods received roles) for the delivery, poor quality stocks are entered as “Damaged Quality”. ➢ Further it is kept for inspection and area F&V executive is informed. E-mail is send to the F&V head / F&V category head. ➢ Finally dumped stocks are hand over to garbage agency. ➢ In case the GRN is done at the back end maintain a record of the DUA and also record the some on the invoice that is sent to the commercial team. (9) Returns:(a) Goods Return to DC:➢ A finalized list of good stock article for return to DC is obtained from state merchandising team.

35 ➢ According to the list stock of articles are segregated and are moved to the back office. ➢ Return schedule is obtained from the state merchandising team and packing of goods carton are planned. ➢ They are packed properly. Food and non-food items are packed separately. ➢ And GRDC is created in SAP for the quality to be returned. ➢ Finally it is loaded and dispatched to DC in DC truck and return to DC documents is get signed by the truck driver and is kept with itself. (b) Goods Return to Vendor:➢ Stocks which are to be returned to vendor are taken out to the back room.. ➢ DSD returns are segregated as per category guidelines. ➢ Return to vendor document is created in the store. ➢ Returns are loaded to the vendor’s vehicle. ➢ 2 copies of vendor document are made and is got signed by the vendor. ➢ One copy is issued to the vendor and 2nd copy is filled as record. ➢ Security control register for returns are updated regularly (c) Physical verification of stock:➢ All PI documents present in the system are checked and closed. ➢ Stocks take checklist is updated. ➢ It is managed with DC to ensure that there is no afternoon or evening delivery on the stocks count day. ➢ Following are checked and ensure:(i) GRN for all DC deliveries have been prepared. (ii) GRN for all DSD deliveries have been completed. (iii) All damaged products (type c ) have been dumped. (iv) All expiry product have been dumped. (v) PI documents for stocks take is generated. (vi) HHTs are managed and ensured that they working properly etc. (a) Stocks count and reconciliation:➢ Objective of the count, the layout of the stores and the process are briefly explained to the staff. ➢ For stock count staffs are delivered for counting of articles in fixtures and for entering the count in the HHT.

(i) (ii)

Back of store – store take SKUs by weight (F&V, loose staples, etc) Each loose article are weighed separately and quantity stickers are pasted. It is continued until all SKUs are weighed.

SKUs by count:(i) Product variants are segregated. Number of units are counted and stickers are pasted with the quality on SKUs. (ii) It is continued until all the SKUs are not counted. (iii) PI count in the HHT is opened (all PI document together) and quantity is entered after scanning the EAN / article code of the SKUs from the product in the HHT PI document. (iv) It is continued in this manner till all the SKUs in the back of store is counted and the quantity is entered in the PI documents with the help of HHT. (a) Store Opening :(i) Store shutter is opened.

36 (ii) (iii) (iv) (v)

Burglar alarm is put off. Entry for collection of keys and store opening details are recorded in the register kept at the security. Lights are switched on and all the equipments are checked for working made. Generators are checked for water level, engine oil and Diesel.

(a) Store closing:(i) Announcement is made for store closing 10 min before closing. (ii) No. of tills to be closed or operated fully depends upon the no. of customer in the store. (iii) Ensure that no customer is present inside the store. (iv) POS & EDC closure process is performed. (v) It is checked that equipment is in order or not after which the store is closed. (vi) Security guard is got to put paper seal on safe and almirah. (vii) All air-conditioners are switched off except server room a/c (which must be maintained between 22-24 degree c ) (viii) Display lights and façade lights are switched off. (ix) Back room lock is sealed with a paper seal. (x) Burglar alarm in the store is updated and key register is signed in. (xi) Finally shutters are locked. On the sales floor-stock take:(i) Counting and weighing of bays are started, and quantity or count stickers are pasted. (ii) PI documents are opened , EAN/ article code on the products are scanned using the HHT and the counted number is entered. (iii) Similarly all the SKUs shelves and bays counted on sales floor and the count entry is entered in the PI document. (iv) Control sheet for the fixtures that has been counted are updated. (v) Once all the articles in the store are counted and count entry is done in the HHT , post the count data by pressing the “ post count” button in the HHT only. (vi) HHT would display the list of SKUs for which count has been not entered then the article in the store is looked upon and count is updated in case the article is present in the store and count entry was missed earlier. (vii) The final counted data is posted once again by pressing the “post count” button. (viii) Success log is checked to ensure that all the PI documents are successfully posted. (ix) The stock take report is generated is SAP and inventory differences is listed. (x) In case of major variations record is performed and the count in the PI document is changed and the count is reported. (xi) The variation is checked and confirmed and then the difference is posted by posting the PI documents in ZSTORE, using the ‘Post ‘option under “Phy inv. Post” in the physical inventory menu. (xii) The stock take check list lifted in the store.

37

ANALYSIS OF RELIANCE RETAIL STOREIN MONTH OF MAY 2009 Catchment area: - the area and population from which a region attracts visitors or customers

FOOT TICKET FOOT TICKET DATE FALL SIZE DATE FALL SIZE 5/16/2009 462 205 6/1/2009 408 204 5/17/2009 365 198 6/2/2009 546 308 5/18/2009 487 345 6/3/2009 546 435 5/19/2009 567 342 6/4/2009 453 397 5/20/2009 452 354 6/5/2009 456 198 5/21/2009 354 189 6/6/2009 453 231 5/22/2009 436 301 6/7/2009 523 303 5/23/2009 645 403 6/8/2009 435 352 5/24/2009 367 300 6/9/2009 543 342 5/25/2009 564 402 6/10/2009 435 241

38 5/26/2009 5/27/2009 5/28/2009 5/29/2009 5/30/2009 5/31/2009

453 543 453 435 546 389

275 305 436 254 345 203

6/11/2009 6/12/2009 6/13/2009 6/14/2009 6/15/2009 6/16/2009 6/17/2009

564 543 426 534 423 498 456

312 309 189 256 352 423 352

AVERAGE NUMBER OF TICKET SIZE BASED ON MALE AND FEMALE:-

Considering the above chart it can be concluded that female visit more as compare to the male counterpart and hence reliance fresh owner should consider about the female and should take more care of female in the sphere of services,protection and product availibilty also. AVERAGE NUMBER OF VISITOR BASED ON DIFFERENT AGE GROUP:-

if we consider the above chart it can be easily concluded that the people between the age group 23-32 visit more and more in the reliance fresh store and hence store manager should take care of this age group peoples so that they may captivate them by giving various discount or facilities etc.

The targets for the current month to any store are assigned according to the sales figures of the preceding month. Usually the target for the current month is greater than the sales achieved for the last month by 10-15 % in normal conditions. They can also exceed to almost 25% in some cases where there is large scale supply of stocks of certain kind seeing upon the arising opportunity for their sale. STOREWISE REVENUE

(All the figures are in lakhs)

39

SALES Sr Store . code No

Store Name

Area

LMTD Achieve d

MTD Targe t

MTD Achieve d

MTD Archive d%

LMTD Vs MTD

1

2118

SPG mart

4163

32.87

37.62

34.58

92 %

5%

2

2119

Trikuta hill

2234

8.66

9.55

8.84

93 %

2%

3

2120

Rathoid C.R

2111

17.60

20.25

17.59

87 %

0%

4

2121

Vyas Enclave

2560

16.15

18.91

17.65

93 %

9%

5

2122

L N 4832 Complex

29.09

32.67

32.83

100 %

13 %

6

2377

M R Tower

1935

6.65

7.72

6.81

88 %

2%

7

2445

Eyelex hinoo

2800

20.26

26.47

22.58

85 %

11 %

8

2727

Prasad Motors

5764

20.03

22.96

21.08

92 %

5%

9

2812

Booty More

2440

15.22

17.56

16.60

95 %

9%

28839

166.53

193.7

178.55

92 %

7%

Result

Reliance Retail calculates its input per store in form of sales / ft / day in total no. of hrs. of operation (from 7:00 AM till 9;30 PM). This cost of operation / input includes rentals, logistics cost, labor costs, electricity charges and up keep and maintenance charges. FTD (fixed till date) sale / sq ft. represents the break-even point for the company. In case of May 2009 FTD takes into consideration. 31st days of operation from 1st may 2009 to 31st may 2009. FTD sale/sq ft is assigned to each individual store from the Mumbai based headquarters of Reliance Retail

SALES / PER SQ FT. UPTO 31ST MAY 2009 Sr. No

Storecode

Store Name

Area

FTD

LMTD

MTD

40 1

2118

SPG mart

4163

41.2

25.5

26.8

2

2119

Trikuta hill

2234

17.5

12.8

12.8

3

2120

Rathoid C.R

2111

34.1

26.9

26.9

4

2121

Vyas Enclave

2560

32.7

20.4

22.2

5

2122

L N Complex

4832

32.5

19.4

21.9

6

2377

M R Tower

1935

11.3

11.1

11.4

7

2445

Eyelex hinoo

2800

40.3

23.3

26.0

8

2727

Prasad Motors

5764

15.9

11.2

11.8

9

2812

Booty More

2440

24.0

20.1

21.9

28839

28.0

18.6

20.0

Result

So it can be seen that none of the nine operating. Reliance fresh stores in Ranchi have been able to achieve their break-even point for the month of May 2009. Reliance Fresh stores are on verge of completing almost 2yrs of their operation in Ranchi district but they are yet to reach their breakeven point. Out of the 47 Reliance fresh outlets in eastern region (including 9 from Ranchi) none have yet reached their BEP.The Company assigns gross margin of operation to each individuals stores based on their past performances of sales, inputs in current month, shrinkages and dumping. GROSS MARGIN UPTO 31ST MAY 2009

41 Sr. No

Store code

Store Name

1

2118

SPG mart

2

2119

3

Area FTD

LMTD

MTD

4163

15.3 %

15.8 %

14.5 %

Trikuta hill

2234

13.1 %

15.1 %

14.3 %

2120

Rathoid C.R

2111

8.9 %

14.7 %

6.8 %

4

2121

Vyas Enclave

2560

15.4 %

15.9 %

11.3 %

5

2122

L N Complex

4832

12.1 %

14.7 %

13.1 %

6

2377

M R Tower

1935

11.6 %

13.9 %

6.8 %

7

2445

Eyelex hinoo

2800

15.0 %

16.2 %

15.5 %

8

2727

Prasad Motors

5764

16.1 %

14.7 %

14.1 %

9

2812

Booty More

2440

16.4 %

14.5 %

12.9 %

28839

14.0 %

14.7 %

14.1 %

Result

It can be seen that except store no Trikuta Hill, L N Complex & Eyelex, none of these stores have been able to give the assigned levels of gross margin. Reliance Retail has a policy of not letting to exceed the shrinkage (loss of goods due to theft & pilferage) & dumping (loss of goods due to expiry) to individually exceed 2% of the total sales. It was observed that due to practices like better in-store upkeep, supply close to demand , better surveillance etc. the shrinkage & dumping were restricted to the desired level in almost of the stores.

MONTH TILL DATE (MTD) DATA UPTO 31ST 2009 Sr. No

Store code

Store Name

Area

Shrink%

Dump%

1

2118

SPG mart

4163

1.0

1.4

2

2119

Trikuta hill

2234

2.1

4.0

3

2120

Rathoid C.R

2111

0.9

3.4

42 4

2121

Vyas Enclave

2560

2.5

2.5

5

2122

L N Complex

4832

1.4

1.0

6

2377

M R Tower

1935

2.5

3.7

7

2445

Eyelex hinoo

2800

1.3

3.0

8

2727

Prasad Motors

5764

2.1

1.6

9

2812

Booty More

2440

-0.5

2.5

28839

1.4

2.2

Result

Trikuta hill store, Vyas Enclave store, & M R Tower had above restricted limit shrinkage & dumping. For Prasad motor store only % age & shrinkage was high. Whereas in Rathod circular road ,Eyelex hinoo & Booty more store only (%) age dumping was high than the restricted limit. Number of tickets means the total number purchases that were made during the entire month.

43 NUMBER OF TICKETS SIZE:Sr. No

Store code

Store Name

Area

FTD

MTD

1

2118

SPG mart

4163

576

15,238

2

2119

Trikuta hill

2234

309

7,925

3

2120

Rathoid C.R

2111

460

13,766

4

2121

Vyas Enclave

2560

573

14,892

5

2122

L N Complex

4832

634

17,074

6

2377

M R Tower

1935

237

8,301

7

2445

Eyelex hinoo

2800

532

12,817

8

2727

Prasad Motors

5764

537

14,570

9

2812

Booty More

2440

340

11,010

28839

4189

115,593

Result

It was observed that against the target on only 4189 purchase all the 9 Reliance Fresh stores of Ranchi registered combinedly 115,593 purchases. Sales / tickets (ticket size) FTD represents the value of sales per purchase that the stores should make in order to reach the BEP margin. Sales /ticket (MTD) represents the value of sales per purchase actually achieved by the store. SALES PER TICKETS DATA UPTO 31ST MAY 2009:Sr. No

Store code

Store Name

Area

FTD

MTD

1

2118

SPG mart

4163

298

227

2

2119

Trikuta hill

2234

126

112

3

2120

Rathod C.R

2111

156

128

4

2121

Vyas Enclave

2560

146

118

5

2122

L N Complex

4832

248

192

6

2377

M R Tower

1935

92

82

7

2445

Eyelex hinoo

2800

212

176

8

2727

Prasad Motors

5764

170

145

9

2812

Booty More

2440

172

151

44

Result

28839

192

154

In this case also it was seen that none of the 9 stores have reached the BEP. Reliance retail expected its Reliance Fresh venture to reach its BEP within a span of 1 – 1.5 of their operation and to become a profit making entity after that out of 9 stores in Ranchi all have completed their at least 1 – 2 years of existences but are yet to achieve their BEP.

RECOMMENDATION COMMUNICATION: ➢ Based on my ovservation I found that reliance fresh is not able to make an advertisement properly as compare to big bazaar or other retail store which is its competitor. so company should make a proper team to let the people aware about their schemes and offers being given by reliance fresh. ➢ Company should increase the number of counter so that it may minimize the quie of the customers. ➢ Company should acquire more and more skilled people so that it may satisfied their customer in all areas. PROMTNESS IN SERVICES:

➢ Company should pay kind attention towards the existing customer and try to provide them quick response in the sphere of services so that they become BSNL’S loyal customers. ➢ Many corporate houses was there who were reluctant to use bsnl lease line provided that someone assure them to have a promt services from them. SCHEMES:

➢ Main competitor Airtel Tata and Reliance comes with various schemes and margins on the other hand Bsnl is not giving any sort of scheme and discount that is why many clients were inclined toward using the lease line offered by other players..

45 After all business is all about profit and retailer wants some profit and margins.

BEHAVIOR AND COMMITMENT:

Behavior and commitments of sales man towards the dry outlets should be improved.

CONCLUSION It was a pleasant experience to have a summer project in a big company like BSNL. It has given me an opportunity to know all dimensions of the market and how to tackle problems of it .I have learned various functions carried out at all the level of organization especially of middle level and lower level. After a rigorous period of my project I come to know that how practical knowledge is different from the theoretical concepts.

I was supposed to do project in Delhi where BSNL is playing major role in the field of telecommunication having a market share of approximately 73% .Other players are Airtel Reliance and Tata.india has a large market size and it is increasing day by day.

From the survey and analysis of data it can be concluded that still there is a big opportunity to convert small and big clients. But some how company is lagging behind in the era of cutthroat competition .company is unable to make good relationship with corporate clients. Main rival Airtel is trying to capture more market share with their new ideas and plan. As BSNL is

46 concern the company should become liberal on his policies. Company should give the clients more facilities so that they may became new clients and may continue through it. The company also needs a proper marketing wing to operate well in this areas and accomplish the goal ,mission and vision of the company.