A

PROJECT
REPORT ON

“Study of Comparative Edge of

Customer Loyalty Programme”

UNDER GUIDANCE OF:

FACULTY: Prof. Upendra ku Dash

(AIMS)

CORPORATE GUIDE: Mr. Sabyasachi Biswal

Senior Manager Talent Transformation,RIL,Odisha

SUBMITED BY: Sambit Chinara

Regd no: P109008, Batch-2009-2011

Of Astral Institute of Management Studies, BBSR towards the Partial Fulfillment of

Requirement for the Award of the Degree of “Post Graduate Diploma in Management”

ASTRAL INSTITUTE OF MANAGEMENT STUDIES, BHUBANESWAR

 PREFACE

For a management student theoretical knowledge as well as

practically orientation exposes oneself to experiences, one can again be mastering

it is best possible time. PGDM curriculum has been fine-tuned in such a way that a

student not applies the theoretical knowledge but also gain it in a practical sense.

Thus objective can be attained through application of theory tools concepts and

techniques of Management.

The Project Starts With Introduction about:

Chapter -1 includes Introduction

Chapter-2 includes Introduction to the company

Chapter -3 includes understanding planogram

Chapter-4 includes research methodology

Chapter-5 includes data analysis and findings

Chapter-6 includes conclusions and suggestions

 ACKNOWLEDGEMENT

There is always a sense of gratitude which one express to other for the

helpful so needy services they render during all phases of life. I would like to

express my gratitude towards all those who have been helpful to me in getting this

mighty task of training to a successful end.

First of all, I consider it a pleasant duty to express my heartfelt

appreciation, gratitude and indebtedness to Mr. Alok Dash for their keen interest,

invaluable pains taking & excellent guidance, patience, endurance, encouragement

& thoughtful advice for the project work.

I am thankful to Prof. Upendre ku Dash- faculty Guide for

Enlighting me on this subject with his valuable guidance from time to time in

Completing this project.

I am also great full to my project guide Mr. Sabyasachi Biswal, Senior

Manager Talent Transformation, Reliance Retail Limited, Orissa.

I am also thankful to Mr.Surojit Das, Store Manager, Reliance, Fresh,

Bomikhal, Bhubaneswar, for their valuable suggestion.

 DECLARATION

I Sambit Chinara a student of Post Graduate Diploma in Business

Administration at your institute AIMS,BBSR take this opportunity to submit my

summer internship project title “Study of Comparative Edge of Reliance Fresh

Customer Loyalty Programme”, Bomikhal, Bhubaneswar to this institute in partial

fulfillment of the requirement.

I ensure that this is an original piece of research work comprising mainly of

primary data, and has not been published elsewhere or submitted for any degree in

full or in part. Only the borrowed literature comprises of secondary data.

I am grateful to the institute for giving me this opportunity to undertake

this project and gain practical experience about corporate sector.

Thanking you,

Yours faithfully,

Sambit chinara
Regd no: P109008
AIMS, Bhubaneswar
 EXECUTIVE SUMMARY

The project studies were conducted at Reliance Fresh convenience

store of Reliance Retail situated at Bomikhal, Bhubaneswar.
The Summary of the project is as follows:
Project title is “Study of Comparative Edge of Reliance Fresh Customer Loyalty
Programme”, Bomikhal, Bhubaneswar.

Objectives of the study:-

 To study & Increase the “Loyalty Sales Percentage” (in consultation with

Franchisee Manager, Franchisee Development Manager (F.D.M.)).

 Better utilization of available resources.
 To increasing Loyalty Sales Percentage.
 Aware customer about Reliance One Membership card.

 To increase store profit and methods to reduce costs.

 Identify methods to study and evaluate the stock movement of Non Food Fast
Moving Consumer Goods (NF-FMCG) & high value SKUs esp. large
chocolates and house wares and suggest appropriate low value NF-FMCG
product mix.
 To study the effective utilization of Planogram of the store.
 TABLE OF CONTENTS

CONTENTS PAGE NO.

CHAPTER
1 INTRODUCTION 1-13
1.1 PROJECT INTRODUCTION 5-9
1.2 RETAIL IN DETAIL 10
1.3 RETAIL TERMINOLOGY 11
1.4 RETAILING FORMATS IN INDIA 12-13
2 INTRODUCTION TO THE COMPANY 14-33
2.1 RELIANCE GROUP 15-24
2.2 RELIANCE FRESH LOYALTY PROGRAMME 25-30
2.3 RELIANCEONE MEMBERSHIP CARD 31-33
3 UNDERSTANDING PLANOGRAM 34-38
4 RESEARCH METHODOLOGY 39-45
5 DATA ANALYSIS AND FINDINGS 46-57
6 CONCLUSIONS AND SUGGESTIONS 58-60
BIBLIOGRAPHY 61
 CHAPTER -1

INTRODUCTI
ON
 INTRODUCTION

Retailing consists of the sale of goods or merchandise, from a fixed location

such as a department store or kiosk, in small or individual lots for direct
consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a retailer buys
goods or products in large quantities from manufacturers or importers, either
directly or through a wholesaler, and then sells smaller quantities to the end-user.
Retail establishments are often called shops or stores.

What is retailing?
 The sale of goods or commodities in small quantities directly to consumers.
 Buy, Sell & Move
Buy, Move & Sell
1. Buy
Buying would involve the following activities, which would mean setting the
guiding principles for all the merchandise decisions that a retailer makes. It should
reflect target market desires, retailer’s institutional type, market place positioning,
defined value chain, supplier capabilities, costs, competitors & product trends.

2. Move
It can be easily said but the processes that are involved in the “move” part are
complex but simple. From the product stage through the processing stage to the
packed ones the move stage would continue.
Various levels that involves in “move” part are:
• The buyer shortlists the product, places the order.
• The vendors receives the order, process the same, packs and send it to the
distribution center from where it reaches the store for the customer to buy.
• One of the fast picking up aspects of the logistic in India is the COLD
CHAIN. More and more organizations are looking for various aspects of cold
chain to ensure that the products where temperature plays a vital role is
maintained and sustained till such time the sale happens.

3. Sell
Finally of the Buy, Move & Sell comes the selling part of it which involves a
running of a retail stores. Operations as it is known are the crucial functions, which
derive its strength from various other faculties.
The beginning of the day is done with the store being opened by the competent
person. The first activity to happen will be the housekeeping activities followed by
the staff scheduling. The morning’s meetings happen chaired by the head of the
store. The stock outs are established and the replenishments happen as the day
progresses, though it is suggested that replenishments of the stock should always
happen when the customer is not there. The head of the store usually inspects any
one or all the departments of the store, which is otherwise, called the “FLOOR
WALK”.
The cashier would ensure that all the cashiers have enough and correct float cash,
whether the POS role, card swap machine and pen is in place or not. In starting of
the day head cashier gives all cashiers a sum of Rs.1500 as loan. Having set
everything in place, the store would then be opened for the customers.
The department’s heads in turn would brief their team on the achievements of the
previous day and set target of the day. During this brief any incidents worth
mention would also be discussed and the promotion offers, which are current, will
also be taken up. Orders will be placed for all the stock out SKU follows up will
also be done for those articles, which are delivered during the day. Cleaning of the
self and also ensuring that the stocks are kept as per the planogram are checked. It’s
just not the duties mentioned above but selling also happen simultaneously.
At the end of day the process of concluding the activities is called the “END OF
THE DAY” activities. As the person who is in charge of closing the store goes
around checking whether the locks are in place or not; the high value merchandise
counters are properly secured; check for any person hidden in the change rooms or
cloaks rooms; the cashier would ensure that all the money that has been given as
float tallies apart from the money that need to be submitted by the respective
cashiers. There will be a checklist that needs to sign off together by the security as
well as the in charge for having checked for conformity at the end of the day.
1.1 - PROJECT INTRODUCTION

The project was done at Reliance Fresh convenience store of Reliance Retail
situated at Bomikhal, Bhubaneswar.
This project is all about to increase the Loyalty Sales Percentage of the individual
stores.
Who is a customer?
A customer, also called client, buyer, or purchaser, is usually used to refer to
a current or potential buyer or user of the products. This is typically through
purchasing or renting goods or services. The slogans "the customer is king" or "the
customer is god" or "the customer is always right" indicate the importance of
customers to businesses - although the last expression is sometimes used ironically.
What is Loyalty?
The degree to which customers are inclined to stay with one company and
resist competitive offers.

Building Customer Loyalty

1. SERVICE NETWORK: The mantra for marketing professionals is service,

service and more service! That’s right! One of the best ways of ensuring your
customers keep coming back to you is providing impeccable service. This includes
everything from service at the point of sale to after-sales service, which builds a
lasting relationship with the customer. Most manufacturers of white goods
understand relationship marketing like no one else. The peculiarity lies in the
product itself, where it might need to be serviced long after it is bought. Moreover,
the purchase might have taken place somewhere different from where the service is
required. Companies like Eureka Forbes and Whirlpool pride themselves on superb
customer service satisfaction levels. They manufacture a wide range of durables
which can be serviced at various locations throughout the country.

2. QUALITY CONTROL: “You never get a second chance to make a first

impression” was the tagline for ‘Head and Shoulders’ shampoo years ago.
Impeccable service too cannot save you if you do not deliver a good quality product
each and every time. This is true especially for restaurants, where the food served
has to be of the same quality time and again to keep customers coming back to you.
Here, quality is conveyed via word-of-mouth. One bad experience is enough to ruin
the impression forever.

3. CONSTANT INNOVATION: “Once a customer, always a customer”, is no

longer true in these days of fluctuating brand usage. Customers now have more
choices than before and are more willing to try out new brands. This fickle-minded
buying warrants a constant focus on the changing mindset of the customer. The
brand too has to change with customer tastes. Nestle India does it best with its
brand of Maggi food products. They now have variants for their instant noodles like
‘Dal Atta Noodles’ and ‘Rice Noodle Mania’. Their competitors in the food
segment, HLL (Hindustan Lever Limited, now called Hindustan Unilever Limited)
tickled the Indian palate by making multiple variants of the traditional Tomato
Ketchup in flavors like mint, tamarind and chilli. Amul, which has a strong
presence in the ice-cream segment, sensed the need to keep the health-conscious
customer in its kitty by adding the new Probiotic range of sugar free ice-creams!
4. DIVERSIFICATION INTO SIMILAR PRODUCT LINES: If a
customer feels that Dove Soap is the best for her skin, why not make her think the
same way about shampoos as well? That’s exactly why the brand name has now
been extended to shampoos in the Indian market. Stretch the loyalty and benefits
associated with a brand to include other similar products.
Lotus Herbals, for instance, makes chemical-free skincare products like creams,
lotions and sunscreens. It has a strong base of happy customers because of its USP -
‘herbal ingredients’. Now, it has also launched its ‘herbal’ range of cosmetics on
the shelves.

5. STRONG DISTRIBUTION CHAINS: If I want to buy a product, it must

simply be available. For fast moving consumer items, it means availability at the
nearest grocer. From personal experience, I can tell you how important this is. I like
Nestlé’s Munch chocolate a lot, but many a time I end up coming home with a
Cadbury’s Perk in hand, due to unavailability of the other brand. Perk tastes just as
good, and pretty soon I ended up asking for Perk at the local grocery shop instead
of Munch. This shows how just availability or lack of it can affect the customer’s
brand choices forever. For a long period Amul faced a similar problem with its
products. Originating from Gujarat, the availability of its products was restricted to
the home state and a few neighboring ones. Consciously, after a lot of effort Amul
successfully expanded its distribution chains throughout the country. An effective
media campaign helped pass this advantage on to the customers. If you want people
to keep buying your brands, make sure the grocery store around the corner stocks it.

6. REINFORCE THE DECISION: Lastly, after people have tried your

product, tell them that they have made the right decision. What better example to
give you than the Pepsi ad which said, “Yehi hai right choice baby, aha!” You will
have customers hanging on to you forever. The human mind looks for signals to
reinforce the decision made by it, to tell itself that yes, you were correct! It’s no
wonder then that the L’Oreal ad shows Aishwarya Rai spouting the phrase
“Because you’re worth it!
Benefits
•Customer loyalty towards your brand can give you the advantage of decreased cost
of advertising.
•You can also increase the price of your brand to capitalize on the same.

Loyalty Sales % = Sales through the Loyalty Card X 100

Total Sales

Customer Loyalty programs need to stay fresh is easy to administer, and tightly
integrate with the central price file and all the customer touch points. Successful
Loyalty programs pinpoint value to a specific group of consumers. The continuous
change in programs keeps consumers engaged and avoids the attitude of
entitlement.
The Retalix customer loyalty application suite, however, is not your run-of-the-mill
solution. It is comprehensive, easy to administer, and effective.
Retalix Loyalty is a real time, online, centralized system that manages the Loyalty
and Promotional marketing campaigns for Grocery and Convenience Store
Retailers.
Coupled with the Retalix 1-to-1 Targeted Marketing Analysis tool, a retailer can
easily reward customers according to their specific taste and loyalty level via a
multitude of reward programs to keep it fresh and fun.
Retalix Loyalty includes:
 Integrated POS and Pump interface to collect data, print Loyalty program
information on the receipt, display messages to the cashier and customer,
discount items, and redeem e-gift certificates, tender credits, and loyalty
points
 Net-based online communications architecture
 Multiple set of basic programs (Charity, Continuity, Sweepstakes, e-
Coupons, Points)
 Tiered pricing rewards (electronic discounts) including fuel, according to
loyalty levels
 Reports to measure loyalty not only by gross spending but also by gross
profit
 Reports to measure program participation by store and chain
 Net-based Centralized Management System
 Retalix 1-to-1, Targeted Marketing

Why the card is not being used?

 Customer forgets their card.
 Customer doesn’t know the benefits of card.
 Quality of temporary card is very poor.
 Cashier forgets to ask about the card.
 Many unwanted details are to be filled in form by customer.
1.2 - RETAIL IN DETAIL

The Indian Retail market is worth a whooping 93000 crores. If one has to
divide between the organized and unorganized sectors the major contribution comes
from the unorganized sector, which contributes close to 98% of the total retail
market. The balance of 2% amounts anywhere between 18-2000 crores.

Factors that influence the growth in retail

To summarize the top 6 factors that drive the growth of the retail
industry in India would be as follows:
 The Demographics
 Lifestyles
 Needs and Desires
 Shopping Attitudes and Behavior
 Retailers action
 Environmental Factors

These six factors clubbed with a co-coordinated logistics make the sale happen. As
in any industry there is a social commitment also to be fulfilled. These can be
recapitulated as under:
 Quality products
 Competitive prices
 Wide range to choose from
 Employment opportunities that are created
 The economy would experience sea of change and
 Would mean a WIN WIN situation to everyone
1.3 RETAIL TERMINOLOGIES

Alike any other industry the retail industry also has a wide range of
terminologies, which are in use on a day-to-day basis. Few samples of them would
include the following:
Till - The cash point
Tender - The type of payment the customer is making
SKU - Stock keeping unit
Merchandise Credit - Credit note
Assortment - Range of products and so forth
Maximum Bay Quantity - It is the maximum quantity of each product, which can be
placed on each shelf.
Maximum Display Quantity – It is the number of SKUs, which can be directly seen
by the customer in the front side.

Top Retailer Worldwide

Rank Retailer Home Country

1 Wal-Mart Stores, Inc. U.S.A.
2 Carrefour Group France
3 The Kroger Co. U.S.A.
4 The Home Depot, Inc. U.S.A.
5 Metro Germany

1.4 RETAILING FORMATS IN INDIA

 Malls: The largest form of organized retailing today. Located mainly in
metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00000
sq ft and above. They lend an ideal shopping experience with an amalgamation of
product, service and entertainment; all under a common roof. Examples include
Shoppers Stop, Pyramid, and Pantaloon.

Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai
books retailer Crossword, RPG's Music World and the Times Group's music chain
Planet M, are focusing on specific market segments and have established
themselves strongly in their sectors.

Discount Stores: As the name suggests, discount stores or factory outlets, offer
discounts on the MRP through selling in bulk reaching economies of scale or excess
stock left over at the season. The product category can range from a variety of
perishable/ non perishable goods.
Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a
variety of consumer needs. Further classified into localized departments such as
clothing, toys, home, groceries, etc.

Department Stores: Departmental Stores are expected to take over the apparel
business from exclusive brand showrooms. Among these, the biggest success is K
Raheja's Shoppers Stop, which started in Mumbai and now has more than seven
large stores (over 30,000 sq. ft) across India and even has its own in store brand for
clothes called Stop!.
Hyper marts/Supermarkets: Large self service outlets, catering to varied shopper
needs are termed as Supermarkets. These are located in or near residential high
streets. These stores today contribute to 30% of all food & grocery organized retail
sales. Super Markets can further be classified in to mini supermarkets typically
1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to
5,000 sq ft. having a strong focus on food & grocery and personal sales.

Convenience Stores: These are relatively small stores 400-2,000 sq. feet located
near residential areas. They stock a limited range of high-turnover convenience
products and are usually open for extended periods during the day, seven days a
week. Prices are slightly higher due to the convenience premium.

MBO’s: Multi Brand outlets, also known as Category Killers, offer several brands
across a single product category. These usually do well in busy market places and
Metros.
 CHAPTER -2

INTRODUCTI
ON TO THE
COMPANY
 INTRODUCTION TO THE COMPANY

2.1 Reliance group

Founder Chairman of Reliance Group

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

Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
Shri Dhirubhai Ambani was an exceptional human being and an
outstanding leader. He dared to dream on a scale unimaginable before in Indian
industry. His life and achievements prove that backed by confidence, courage and
conviction, man can achieve the impossible. From a humble beginning, he went on
to create an enviable business empire within a span of just 25 years. The US$ 54
billion Reliance Group is a living testimony to his indomitable will, single-minded
dedication and an unrelenting commitment to his goals.
Today, the Group's turnover represents nearly 3 percent of India's GDP.
The Reliance Group 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
22 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, fiber 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, fiber intermediates, plastics and
chemicals), textiles and retail.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn
and fiber producer in the world and among the top five to ten producers in the world
in major petrochemical products.
The Group exports products in excess of USD 7 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), Indian
Petrochemicals Corporation Limited and Reliance Industrial Infrastructure Limited.
Mr. Mukesh Ambani
Chairman & Managing Director
Mr. Mukesh D. Ambani, age 49, is a Chemical Engineer from the University of
Bombay and pursued MBA from Stanford University, USA. He is the eldest son of
Mr. Dhirubhai H. Ambani, Founder Chairman of the Company.
Mukesh Ambani is the chairman, managing director and the largest shareholder of
Reliance Industries, India's largest private sector company and a Fortune 500
Company. His personal stake in Reliance Industries is 48%. His wealth is US$ 20.1
billion as of March 2007, making him the world's 14th richest person and the
second richest person in India. Mukesh and younger brother Anil are sons of the
late founder of Reliance Industries.
Mukesh Ambani joined Reliance in 1981 and initiated Reliance's backward
integration from textiles into polyester fibres and further into petrochemicals. In this
process, he directed the creation of 60 new, world-class manufacturing facilities
.Mukesh Ambani is also steering Reliance's initiatives in a world scale, offshore,
deep water oil and gas exploration and production program, a pan-India petroleum
retail network involving 5,800 outlets and a research-led life sciences initiative
covering medical, plant and industrial biotechnology.
Mr. Ambani's Achievements include:
 Conferred 'ET Business Leader of the Year' Award by The Economic Times
(India) in the year 2006.
 Had the distinction and honor of being the co-chair at the World Economic
Forum Annual Meeting 2006 in Davos, Switzerland.
 Ranked 42nd among the 'World's Most Respected Business Leaders' and
second among the four Indian CEOs featured in a survey conducted by
Pricewaterhouse Coopers and published in Financial Times, London,
November 2004.
 Conferred the World Communication Award for the 'Most Influential Person
in Telecommunications in 2004' by Total Telecom, October 2004.
 Chosen 'Telecom Man of the Year 2004' by Voice and Data magazine,
September 2004.
 Ranked 13th in Asia's Power 25 list of 'The Most Powerful People in
Business' published by Fortune magazine, August 2004. 30 Growth is Life
 Conferred the 'Asia Society Leadership Award' by the Asia Society,
Washington D.C., USA, May 2004.
 Ranked No.1 for the second consecutive year, in The Power List 2004
published by India Today, March 2004.

Major Subsidiaries & Associates:-

The Reliance Industries Limited is the flagship company of Reliance Group which
has ownership interest in the following subsidiaries & associates

Major Subsidiaries:
Reliance Petroleum Limited
Reliance Netherlands BV (including Trevira)
Reliance Retail Limited
Ranger Farms Private Limited
Retail Concepts and Services Private Limited
Reliance Retail Insurance Broking Limited
Reliance Dairy Foods Limited
Reliance Retail Finance Limited
RESQ Limited
Reliance digital Retail Limited
Reliance Service Solutions Limited
Reliance Jamnagar Infrastructure Limited
Reliance Haryana SEZ Limited
Reliance Industrial Investment & Holdings Limited
Reliance Exploration & Production - DMCC
Reliance Industries (Middle East) DMCC
Reliance Global Management Services (P) Limited
Reliance Commercial Associates Private Limited
RIL (Australia) Pty Limited
Major Associates:
Indian Petrochemicals Corporation Limited
Reliance Industrial Infrastructure Limited
Reliance Fresh

Reliance Industries launched its first retail format called Reliance Fresh in
Hyderabad. Spread over 2,000-5,000 sq ft, 11 such Reliance Fresh neighborhood
convenience stores were come up in the city.
Branches:

• Chennai,
• New Delhi,
• Hyderabad,
• Jaipur,
• Mumbai,
• Chandigarh,
• Ludhiana,
• Orissa,
• UP
• West Bengal
• Jharkhand

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

this end, we are aggressively working on introducing a pan-India network of retail
outlets in multiple formats. A world class shopping environment, state of art
technology, a seamless supply chain infrastructure, a host of unique value-added
services and above all, unmatched customer experience, is what this initiative is all
about The retail initiative of Reliance will be without a parallel in size and spread
and make India proud. Ensuring better returns to Indian farmers and manufacturers
and greater value for the Indian consumer, both in quality and quantity, will be an
integral feature of this project. By creating value at all levels, we will actively
endeavor to contribute to India's growth.
Product range of reliance fresh

Vegetables and fruits: this is the specialty of the store as they provide fresh fruits
and vegetables at a rate lower than the market price.

Households Items: In the stores we can get items which are at slight premium rate
than market price, but usually of high quality.

Food and Beverages: This area of the product line they stock all the premier
brands and also their private label.

Groceries: In this sector reliance is promoting its private label as they are
promoting their own brands and they do the packaging of the product and then label
it privately and then sell it at premium as compared it to the loose items.

Dairy Products: The dairy products in some locations are procured from the
farmers themselves and some places they procure it from the manufacturers.

Refrigerated products: This product line is dominated by the brands available in

market and very less private labeling is done.

Non food items: Here we get many petty non food items at a premium than market
price.

Reliance Fresh would carry fresh fruits and vegetables, staples, top-up
grocery, non-food items and dairy products and a whole lot of other categories at
very competitive prices. All the stores opened have an average area of about 1,800
sq ft and an average of about 20 sales associates attending to customers in each
store open from 8 a.m. to 10 p.m. on all seven days of the week.
A targeted sales turnover of Rs 90,000 crores (US$ 20 billion) by 2010 with a
planned investment of Rs 30,000 crores over the next five years – that's the retail
vision of Mukesh Ambani and his RIL retail team. RIL's retail venture seems all set
to achieve the status of being the flag-bearer of India Retail Inc, and that too in
record time!
 It's been in the news for quite some time now. Earlier, about a year ago, it
was only whispered in close industry circles. Slowly the whispers become louder,
and the word gained ground that India's largest private sector company, Reliance
Industries Limited (RIL), is entering the Indian retail sector in a real big way.
But with virtually nothing coming from anyone in the know inside RIL about their
retail plans; this has to be one of the most closely guarded secrets of India's
corporate story.
Retail Will Become Core Business of RIL:
Reliance Industries Limited is the largest and one of the fastest
growing private sector companies in India, with business activities encompassing
almost all major growth sectors of the Indian economy. The company manufactures
and markets a wide range of products with market leadership in almost all its
businesses.
All of Reliance Group production and services ventures have one common feature –
global scale operations employing state-of-the-art technology in all fields. The
company is truly emerging as a well diversified conglomerate with global
competence in technology, management and financial capabilities to meet the needs
of a rapidly growing Indian market.
With domestic market shares ranging from 40-80 per cent, RIL is also ranked
among the top 10 producers globally, for all its major product segments. It is one of
India's largest business conglomerates with total revenues of Rs 1, 00,650 crores
(US$ 22.6 billion).
It is being speculated within the industry that the ROIs made by RIL in the retail
space will far out-shadow its existing core flagship businesses – and very soon
retail will become the core business for the Mukesh Ambani-controlled Reliance
empire.
Future Planning:
Company plans to have a pan-India presence by opening stores in 784 cities and
600 small towns and achieve a target of Rs.10 billion revenue by 2010 by which
time it hopes to complete Phase 1. In the first phase company plans to employ
500,000 people. It is following an all-inclusive model giving the right affordability
across all income groups. Company is aggressively partnering farmers by following
a farm-to-fork strategy in its supply chain management model and ensures that it
delivers fresh fruits and vegetables at affordable prices to consumers. Currently,
Reliance Fresh has over 100 stores across the country.
Reliance Fresh also offers a membership and loyalty programme - Reliance One -
to deliver customized benefits to frequent shoppers. Currently, it has 200,000
loyalty customers across Hyderabad, Jaipur and Chennai.
Reliance Retail, the 100% subsidiary of Reliance Industries, on October 28
unveiled Reliance Fresh, the first of its multi-format retail foray involving an
investment of Rs 25,000 crores.
Reliance Fresh is the company’s brand for neighborhood fresh-food outlets. It will
also sell kitchen equipment and other edibles.
The Reliance Fresh supermarket chain is RIL’s Rs 25,000 crores venture and it
plans to add more stores across different geographies, 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.
Supply Chain Management:
A supply chain is a network of facilities and distribution options that
performs the functions of procurement of materials, transformation of these
materials into intermediate and finished products, and the distribution of
these finished products to customers. Supply chains exist in both service
and manufacturing organizations, although the complexity of the chain may
vary greatly from industry to industry and firm to firm.

Farmers
Collection center

Reliance Fresh Distribution center

From the above pictorial representation of supply chain management of

reliance fresh it is clear that raw material is procured from vendors,
transformed into finished goods in a single step, and then transported to
distribution centers, and ultimately, customers. Realistic supply chains have
multiple end products with shared components, facilities and capacities.
The flow of materials is not always along an arbores cent network, various
modes of transportation may be considered, and the bill of materials for the
end items may be both deep and large.
2.2 Reliance Fresh Loyalty Programme

1. What is Loyalty Membership?

Loyalty Membership is a program devised by Reliance Industries Limited for

Reliance Fresh to retain the customers visiting their stores. It is a program by which
Reliance Fresh store issues a Loyalty Membership Card to its customers to
encourage them to shop at the store regularly. Each time they buy something they
collect points which will allow them to redeem cash vouchers to shop at store in
future. Followings are the features of the program:

• An electronic method of identifying customer purchases and translating that

information to reward customers based on their shopping habits.

• There is a reward point system by which customers receive reward points on

every purchase made at the store.

• For every purchase of Hundred Rupees customer will receive one reward
point.

• Customer should accumulate minimum of 25 points to get a reward voucher

by which he can make purchase at the store equivalent to Rupees 25.

• Customers can also retain these points and receive reward voucher whenever
they want.

• Members will also receive accidental insurance of Rupees 50,000 under this
program.

• Customer will be issued a permanent membership card after 180 days of

issuing of temporary card.
2. How Loyalty Membership Program benefit Retailers?

• The program data help retailers to adjust their product assortment to customer
demands.

• Retailers remove or cut back slow-moving items and devote more shelf space
to the products that program members buy.

• Identify their most loyal customers.

• Learn more about their best customers buying habits.

• Offer the products and services according to their best customers demand.

3. How do Loyalty-Membership Program works?

• To enroll, customers typically complete an application form asking for their

Name, address, gender, phone number, e-mail address, income etc.

• Each time cardholders make a purchase; the store scans their membership
card, tracks the sale and converts this data into useful information.

• Loyalty Membership programs give customers points that accrue with their
purchases and can be redeemed for rewards.

• Cardholders receive their discounts by presenting their card at the checkout

or by redeeming targeted coupons.
4. How can food retailers help consumers and Manage Operations with the
data they collect?

Analyze shopping habits, refine marketing programs and fine-tune the product mix
at the chain or individual store level.

Stores use data gleaned from loyalty-marketing programs to:

• Identify the promotions that appeal most to various customer groups, e.g.,
discounts or rebates for price-conscious shoppers; home delivery services for
busy shoppers.

• Reduce the shelf space devoted to slow-moving items in order to stock the
products that customers prefer.

• Reveal when products were sold and whether they were sold on or off
promotion, and the profit margin on each sale.

• Improve speed-to-shelf and decrease out-of-stocks.

• Determine how product deletions affect their best customers, and take steps
to keep those customers from taking their business elsewhere.

5. What are the advantages of this Loyalty Program for customers?

Following are the advantages of Loyalty Program:

• Loyalty Program gives customers the sense that the retailer values them
personally and respects them.

• This program has an inbuilt system of giving discount over the competitive
prices of the goods, if compared from general retailers.

• Besides this it also offers an accidental insurance of rupees 50,000.

6. How we can make Loyalty Program more Effective?

• We can make it effective by introducing various types of schemes which can

attract customers.

• We can issue prepaid cards in different denominations to our customers and

provide additional discounts and offers in addition to our normal reward
point system.

• We can also categories the cards as Platinum, Gold and Silver based on
purchasing capacity/trend of different segments of customers. The
advantages can be increased with the upgraded membership.

• Card can be made attractive by issuing a plastic or a laminated card in place

of the present paper card so that it can be retained for a long time.

• Increase level of personalized service/interactive approach with the

customers. Through interaction and personalize service the front line staff
should ensure to make the customers feel that they are the valued clients.

• Cashier should request and enlighten the customers to use their cards.

• Regular announcement should be made to encourage customers to use their

loyalty cards to redeem reward points.

• There can be additional rewards depending on the frequency of usage of card

or can be based on their visit to the store.

• The Loyalty Program form can be bilingual and should be of one page so that
customers find it easy to fill.

7. Can Loyalty be bought?

• Yes, it can be bought by winning the faithfulness of the customers by giving

them quality services without interruption. Meeting the changing
expectations of the customers will help strengthen a lasting relationship and
ensure that the customers no longer feel like going elsewhere.
8. What is the percentage of customers using Loyalty Cards?

• On an average every Reliance Fresh is issuing 80-120 loyalty cards per day.

• The ratio of customers using this card floats between 50%-60%.

• Educated people are giving more attention to the loyalty card.

9. How many customers are having more than one card? Why?

• Customers are not able to retain existing paper card for a long time so
customers can be issued a new card with the same number if the exiting card
cannot be scanned by machine properly.

• 10% cards cannot be scanned as these are paper cards and get distorted.

10. How we can build our product awareness?

• The advantages of a customer card must be actively conveyed from the

management to the customer via the staff.

• We can utilize the time of customers by making them aware about the reward
program when they are waiting for billing.

• Regular announcements can be made by the MSR’s regarding the benefits of

the Loyalty Card and asking customers to use the benefits of the program.

• Clippings about the product may be flashed through the electronic media.

• Details of the Loyalty Program may also be circulated through pamphlets in

newspapers.
11. What are the problems being faced by customers? How we can work on it?

• Token system should be introduced; as yet customers are facing problems as

their belongings are not safe outside the store.

• Customers have to wait for a long time for billing so we can introduce a
system of separate queues for ladies and senior citizens and can also increase
number of cash counters.

• Customer is coming in Reliance Fresh due to a brand name and thinking its
product would be of good quality, but sometimes there are rotten fruits and
vegetables with the bunch of fresh ones this leads to a wrong impression on
customers. So, there should be proper sorting to maintain the consistency in
their quality.

• Sometimes store staff are ignorant and don’t pay much attention to customers
and this frustrates the customers. So store staff should be trained to assist the
customers in a proper way.

• Facility of drinking water should be provided at the store which is not

available at present
.
• Toilets for customers should be made available.

12. How to increase efficiency of employees?

• Providing refreshments like tea, coffee at least in two intervals so that the
employees feel energetic and work more efficiently.

• Orientation program can be conducted for the employees to make them aware
of the targets to be achieved.

• The employees should be kept in high state of morale. This could be achieved
by the effective leadership.

• Career progression of the employees should be chalked out.

2.3 RELIANCEONE MEMBERSHIP CARD

• This is a card which was given to the customer at free of cost. This card helps
to increase the loyalty sales percentage of the store. Benefits of this card are:
• Customer will get 1% point of his purchasing amount added to his\her
membership card.
• When these points will become 25, it means that 25 points is equivalent to
25/-. He\she will be able to redeem his\her points & get a discount of 25/-
• With this card customer will get “Accidental Death Insurance” of 50000/- by
default.
• If customer will recharge their Hutch, Reliance, Airtel & Idea mobile from
CSD then also 15 point of the amount he recharge will be added to his card.
• In starting customer will get temporary card, which is valid for 180 days.
Within 180 days customer will get permanent card, which is look like plastic
card at postal address given by the customer in the form for issuing of
Reliance One Membership Card. Conditions for eligibility of permanent card
are as follows:

CUSTOMER INFORMATION CHANGE REQUEST:

• If customer wants to change his Postal address, Telephone Number or
Email ID then customer have to fill the “Customer Information
Change request”.

Customer Information Change request

Please incorporate the following changes in my Reliance One membership details
 (Please tick the appropriate box)

Reliance One Membership No.

First Name

Last Name

I have moved to a new house. Please send all communication to my new address
given below

Address Line 1*

Address Line 2

Landmark

City\ Taluka*

Pincode*

My Phone Number has changed

Std Code Phone (Res)

Mobile

Std Code Phone (Off)

I have a new email address

Email

Date D D M M Y Y Y Y Signature

FOR OFFICE USE ONLY

Store Code

Request ID: CIC - D D M M Y Y -

Store code Date Serial No

MSR Code

Replacement Card Request :

If the card of the customer is damaged or lost then he has to fill a “Application
Form for Request for Replacement Card”.

The format of Application Form for Request for Replacement Card is:
Application Form for Request for Replacement Card

RelianceOne Membership No.

First Name

Last Name

This is to inform you that my RelianceOne membership card is lost/ damaged. I have
been issued a replacement card with card number

I request you to deactivate my old card and transfer all the points to my new card
number mentioned above. I understand that I would not earn any points on usage of my
old card.

I declare that I have surrendered the damaged card at the customer service desk
I declare that I will destroy the lost card if found.

Date D D M M Y Y Y Y Signature

FOR OFFICE USE ONLY

Store Code

Request ID: RRC - D D M M Y Y -

Store code Date Serial No

MSR Code

MSR Signature
 CHAPTER -3

UNDERSTAN
D THE
PLANOGRA
M
 CHAPTER- 3 UNDERSTANDING PLANOGRAM

A planogram is a diagram of fixtures and products that illustrates how and

where retail products should be displayed, usually on a store shelf in order to
increase customer purchases. It is an arrangement of different products in the most
appropriate order with optimum utilization of available space. It also shows the
exact quantity of each product in the store as well as its position on a particular bay
& shelf.
They may also be referred to as Planogram, Plano’s, Plano-grams, plan-o-grams,
schematics (archaic) or POGs. A Planogram is often received before a product
reaches a store, and is useful when a retailer wants multiple store displays to have
the same look and feel. Often a consumer packaged goods manufacturer will release
a new suggested Planogram with their new product, to show how it relates to
existing products in said category.
Since the purpose of a Planogram is to communicate how to set the merchandise to
increase customer purchases, much research often goes into the layout of a
Planogram. Attention is given to adjusting the visibility, appearance and presence
of products to make them look more desirable, or to ensure sufficient inventory
levels on the shelf or display. There are some consulting firms which specialize in
retail space layout and planogramming. Some chain stores and wholesalers also
create and maintain Planogram for their stores.
Planogramming is a skill developed in the fields of merchandising and retail space
planning. A person with this skill can be referred to as a planogrammer.
Scope:
To study and re-engineer the existing Planogram.

Purpose:
• To communicate how to set the merchandise.
• To increase customer purchases.
• To adjusting the visibility, appearance and presence of products
• To make them look more desirable.
• To ensure sufficient inventory levels on the shelf or display.
• To use space effectively whether floor, page or virtual.
• To optimize short- and long-term returns on investment into retail space.
• To provide a logical, convenient and inspiring product-customer interface.
• To make right selection of products available.
• To facilitate communication of retailer’s brand identity.
• To maximize profit per centimeter of shelf space.
• Understand the relationship between space, sales and profit

Merchandising:
Merchandising refers to the methods, practices and operations conducted to
promote and sustain certain categories of commercial activity.

Visual Merchandising (VM) is the art of presentation, which puts the merchandise
in focus. It educates the customers, creates desire and finally augments the selling
process.
Visual Merchandising helps in:
 Educating the customers about the product/service in an effective and
creative way.
 Establishing a creative medium to present merchandise in 3D environment,
thereby enabling long lasting impact and recall value.
 Setting the company apart in an exclusive position.
 Establishing linkage between fashions, product design and marketing by
keeping the product in prime focus.
 Combining the creative, technical and operational aspects of a product and
the business.
Sample Planogram Image
 PROCEDURE OF REPLENISHMENT OF STOCK

The whole system of RELIANCE FRESH is connected through an ERP

SOFTWARE i.e. SAP and the replenishment procedure is based on auto indenting
& manual indenting.
Auto Indenting:
MBQ of each SKU is already stored in the system of DISTRIBUTION CENTRE.
(D.C. is the place from where the required quantity of stock is sent to the respective
stores.)
As & when sales of a particular SKU takes place it is automatically recorded in the
system.
Within 3 days D.C. dispatches the required quantity of each SKU to the store, to
maintain the MBQ level of each shelf.
Manual Indenting:
Before closing the store daily CSA of each category identify the requirement of
each SKU and communicate it to supervisor and finally it is feed to SAP or mailed
to Distribution Centre (D.C.) to maintain the required level of inventory.
 CHAPTER -4

REARCH
METHODLO
GY
 RESEARCH METHODOLOGY

Step 1: Per day sales of each SKU was obtained. The SKUs list of
Reliance Fresh which contains approximately 6000 SKUs/products of all different
categories (Fruits & Vegetables, Staples, Process Food, Non-Food Fast Moving
Consumer Goods, House wares, Beverages, Dairy, Bakery, Frozen, etc.) is provided
by the head office. With the help of this list, at store, daily sales of each SKU was
obtained from CSAs by interviewing them in depth. The probable demand of those
SKUs which were not in the Planogram of the store were also obtained so that these
could also be introduced if found appropriate.

Step 2: Per day sales was then multiplied by 3 so as to maintain the required
stock level for 3 days. After getting the daily sales of each SKU, it was then
multiplied by 3. Since, the supply of SKUs other than Fruits & vegetables and
Dairy from Distribution Center is made after every 3 days and in order to maintain
the required MBQ level the sales figure is multiplied by 3.
For example, the daily sales of Parle Krackjack 75-gram biscuit
were 5 units approximately told by the CSA. This projection of MBQ level was
totally based on the judgments of CSAs and on the previous month’s sales report.
Therefore, its required MBQ level should be 5x3, i.e., 15 units in the store. This
approach was applied for all SKUs of each category in order to adjust the MBQ
level of all SKUs of Planogram.

Step 3: Figure obtained in step 2 was then compared with MBQ figure of
current Planogram for each SKU. The figure so obtained for all the SKUs, by
applying the same approach, was then compared with the actual MBQ level of
respective SKUs in the Planogram. By this comparison the difference between
actual and obtained MBQ level was found. This difference was then used to adjust
the MBQ level.
For example, the MBQ level as per current Planogram of FORTUNE
SOYA OIL 1 LT POLY PACK was 56 units but actual per day sales of this were 32
units, therefore, according to this sales figure MBQ level should be 96 units. But
this figure is more than actual MBQ level; therefore, its MBQ level was increased
to 96 units by providing it single facing and double vertical stacking.
Step 4: MBQ level of each SKU was adjusted by either increasing or
decreasing its quantity. Similarly the MBQ level of each SKU was adjusted by
either increasing or decreasing its quantity which was required for the optimum
utilization of available bay space and better inventory management. This approach
helped in better visibility of the SKUs and raising the profitability of the store. This
step resulted in the empty spaces on the different bays.
Step 5: Empty spaces obtained because of step 4 was then filled by new SKU
which was obtained in consultation with CSAs, FDM, Franchisee Manager, on
the basis of our judgment & based on feedback from store staff . After getting
the empty shelves, those SKUs were finalized in consultation with CSAs, FDM,
and Franchisee manager and on the basis of our own judgments, which were mostly
demanded by customers other than those SKUs which were available in the store.
This helped in introducing some new SKUs in Planogram.

Methodology Used
For re-engineering Planogram, following research was done:
1. Research Design
Research Design is the overall plan to conduct research. It covers:
• data collection methods
• sampling decisions
• data analysis methods
Often constraints on resources limit research design so that it is less ideal.

Types of Research Design

There are three types of research designs:
1. Exploratory research design
Used for discovering ideas and insights
2. Descriptive research design – longitudinal and cross-sectional
Used for describing characteristics of population
3. Causal research design
Used for proving cause-effect relationship
2. Exploratory Research
Following designs (methods) are used for exploratory research:
I. Secondary data
II. Focus groups
III. Depth interviews
3. Depth Interview
Principle of Depth Interview
 Respondent will reveal truth about sensitive issue after taking him in
Confidence.
 Respondent’s answer will be obtained by probing
Collection of Data:
Secondary Data
Secondary data is the data gathered by someone else prior to the current needs of
the researcher. It is already available to the researcher before he starts conducting
his research work.
Advantages of secondary data
 Quickly available
 Economical
 Dependable
 Easy to Use
 Accessible
 Understandable
Primary Data
The researcher originates the primary data. The primary data for re-engineering
Planogram was collected as follows:
 Feedback from
 CSA
 Customer (limited to people known)
 Customer demographics
Feed Back Questions asked from CSAs
1. Which SKUs have the maximum queries?
2. Which SKUs have maximum complains?
3. Which SKUs customers are happy with?
4. Are there any SKUs that you suggest as a substitute?
a.) For what SKUs?
b.) What is the substitute?
5. Do you receive any queries for any SKUs which are not stocked?
6. How much does each SKU is being sold on daily basis?
7. Is the customer satisfied with the quality of products available in the
store?
8. Is the customer happy with the pack size available (especially for

staples, ghee & vegetable oil) or they require big or small one?

Feedback received from CSAs

 Maximum demand is for Fruits & Vegetables (F&V) category.
 Customers are happy with F&V and Process Food (P.F.) but for P.F.
introduce some more products.
 Substitute suggested is mainly for staples and P.F. category. For
example:- Customer demanded a particular brand of Atta but
sometimes due to unavailability of stock, Atta of other brand was
offered.
  Customers query more about NF FMCG & toiletries (Currently this
category of SKUs is not available in the store.)
 Sometimes customers complain about the freshness of F&V as they
Strengths Opportunities
•Potential Market
• Brand Name

• Strong Financial Backup

• Good employee base

• Easily Reachable

• First Mover advantage

Weaknesses Threats

• More time in billing •Local retailers

• Fruits & Vegetables are not •Opposition by Govt.

always fresh
•Big retailers are entering
• Offer’s announcements are
not proper

find it rotten and also fresh ones mixed with rotten ones.
 Some customer also asks for smaller pack size for staple SKUs.
SWOT ANALYSIS
 CHAPTER -5
DATA
ANALYSIS
&
FINDINGS
 DATA ANALYSIS AND FINDINGS
There was a questioner, which was filled by the customer to know the
feedback of the customer about the “Customer Loyalty Programme”. There were 50
sampling had filled up by the customer who were coming to the Reliance fresh store
at Bomikhal. The ratio between the male & female were 3:1.Maximum customer
were service holder Business man.
The format of questioner is as follows:
Reliance Retail:
Study of “Comparative Edge Of Reliance Fresh Customer Loyalty Programme” At
Bhubaneswar
Questionnaire:
1. Where do you purchase your monthly household provision?
a)Reliance Fresh , b) Any other modern outlet, c) Local Market

2. If other modern outlet, then please specify the name of outlet and please specify
reason?

3. If Reliance Fresh, do you purchase your total monthly requirements regularly from RF
or occasionally?

4. Please specify reason for regular/occasional purchase from Reliance Fresh?

a) Quality stuffs. B) Availability of all items, c) Good ambience, OR, d) Any other
specific reason

5. Are you aware of Reliance Fresh Customer Loyalty Programme?

a) Yes b) No
6. If yes, have you enrolled in Reliance Fresh Customer Loyalty Programme?
a) Yes b) No
7. If yes, how you find the programme?
a) Excellent, b) Very Good, c) Good, d) Needs improvement

8. What is your suggestion to make Customer loyalty programme of Reliance Fresh

more popular?
a) Offering discount to customer participated in this programme.
b) Door delivery of the merchandise under this programme.
c) Establishing direct relation with customer by organizing loyal customer meets. OR
d) Any specific suggestion.

9. How you find Reliance Fresh modern retail format in comparison to Big Bazar,
Pantaloon etc.?
a) Superior, b) Not much different.

10. How do you find the customer service staff of Reliance Fresh?
a) Excellent, b) Good. c) Needs improvement .d) Poor

11. Have you ever faced any problem with Reliance Fresh floor manager during your
purchases?
a) No never. B) Yes, sometimes. C) Often faced.

12. Which section of Reliance Fresh you like most?

a)Grocery. B) Vegetables c) Cosmetics & stationery.

13. Which aspect of Reliance Fresh attracts you most?

a)Commitment level. b)Relationship building with customer. c) Understanding of
Customer need, d) Friendly approach towards all section of customer.
14. Are you getting all your household requirements during your visit to Reliance fresh?

15. Do you feel the products more in demand are often not available during your visit?

16. Do you feel the perished/expired items are not properly differentiated from fresh
items?

17. Do the price charged by Reliance fresh is competitive?

18. Do the Reliance Fresh sales personnel informing you about the schemes and
discounts applicable on specific products on that day during your visit?

19. Are the products having discounts/schemes are available for billing?

20. Do Reliance fresh display the updated price of each product correctly ?

21. How much average time you spend at billing counters?

22. How comfortable you are with exchanging a bought product which does not meet
your requirement/need?

18. Are you getting the privilege of availing all schemes announced by Company?

19. How is your overall experience with Reliance Fresh?

a) Above expectation, b) Below expectation. c) At par with the expectation.

20. Would you ask your relatives and friends to shop in Reliance Fresh?
a) Yes b) No c) Not sure
21. Would you like to provide any suggestion to make Reliance Fresh service team more
effective?
22. Profile:
a) Name: b) Age: c) Sex:

d) Profession:
 FINDINGS
• Lack of professionalism in the behavior of CSAs.
• Customers are not aware with the benefits of the card.
• Customer forgets their card at home.
• Customer has no time.
• MSR not asking for the cards major of the time.
• No one is there who give card number from Membership Master Dump.
• Rigid ness to follow Planogram in spite of non-availability of SKUs.
• Place for Mobile counter is not proper.
• Dummy of some mobile handsets were not available.
• Customers feel inconvenience to purchase wheat without seeing
& touching its sample.
• Store becomes too congested during peak hours.
• Many a time’s fresh F&V are mixed with rotten ones.
• Non-availability of NF FMCG (Toiletries etc.).
• Consistency in quality in case of F&V is not maintained.
• Planogram of F&V changes as per its supply & sorting, therefore,
Its Planogram changes frequently.
• Planogram of staple, P.F., beverages, dairy etc. exits for longer
Duration, therefore, these are emphasized.
• Some items were not available in the store given in Planogram.
• Sorting of F&V was not done at right time.
• Customers` feel inconvenience to purchase wheat without seeing
& touching its sample.
• Non-Planogram SKUs were continuously sent by the D.C. to
Store.
• The store has ample but unorganized parking space.
• The problem of storage space was solved in time, which helped
in effective inventory management.
• There are possibilities of introducing NF FMCG & toiletries in
the store as customer frequently ask about these and required
Space for these can also be created.
Category contribution to total sales:

60%
57%

50%

40%

30%

20% 17%

10%
9%
5% 5% 3% 5% 4%
0%
  Category contribution to gross margin

60%

49%
50%

40%

30%

20%
13 %
11%
9% 8%
10% 5% 5%

0%

120

100

80 Contribution To
Gross Margin
60

40

20 Contribution to
Total Sales
0
 CHAPTER -6

CONCLUSIO
N
AND
SUGGESTIO
N

Conclusions
 Bomikhal is a price sensitive area. People prefer smaller quantities and good
quality products. There are less retail shops nearby the store. Instead some
small grocery stores and local vegetable mandies at Cuttack road
 There is always a gap analysis between Retailer & customer.
 Customers are ready to buy even at same rate or more than as compared to
outside if we provide them a quality.
 Customer has no time. They don’t want to waste their time in selecting good
vegetables.
 By analyzing the primary and secondary data it was identified that majority
of sales is from F&V category instead of mandi near to store only in the case
when quality is good. While for other categories some changes like
introducing more variety and keeping competitive prices can be done to
increase their sales.
 Data gathered through sales report and CSAs were analyzed to adjust the
MBQ level of each SKU and to increase the store profit.
 Reliance Fresh needs to adjust its Planogram according to the tastes and
preferences of customer. Since store does not offer NF FMCG and toiletries
most of the customers are switching to other players.

SUGGESTIONS

 Announcement for the Membership card should be there.

 Effective utilization of storage space is possible.
 Rigidity in following Planogram should be avoided.
 Possibility of Non-Food FMCG
 Effective utilization of empty Shelves
 Consistency in quality should be maintained.
 Proper training should be imparted to CSAs.
 Effective utilization of space should be done.
 Mark down of SKUs especially for Fruits & Vegetables should be done at
proper time.
 Sample of wheat and other staple items can be kept for better exposure.
 Consistency in quality should be maintained
 Proper training should be imparted to CSA’s
 Effective utilization of space should be done
 Mark down of SKU’s, especially for Fruits & Vegetable should
be done at proper time.
 Sample of wheat & other staples items can be kept for better
Exposure

 Fine Line Product Differentiation of SKUs should be done.

 Announcement for the Membership card should be there.
 Effective utilization of storage space is possible.
 Rigidity in following Planogram should be avoided.
 Possibility of Non-Food FMCG

BIBLIOGRAPHY

1) Philip Kotler ,” Marketing Management”, New Delhi, Pearson Education Inc,

2006.

2) Kothari, C. R, Research Methodology methods and techniques, New Delhi,

New Age International (p) Ltd,1990.

3) Copy of current Planogram

4) List of SKUs
3)

5) Websites:

- www.ril.com
- www.businessworldindia.com
- www.ORG-GFK.com
- www.india-reports.com
- www.wikipedia.org
- www.economictimes.indiatimes.com