RELIANCE DIGITAL

GENERAL ENVIRONMENT:

The organised consumer electronics market is estimated at US$11 billion in 2017 and is
expected to more than double to US$26 billion by 2021. Organised retail penetration in the
consumer electronics category is estimated at 27% and is expected to grow to in the range of
35% by 2021.

Reliance Retail operates Reliance Digital, the largest consumer electronics speciality retail
chain in India with 357 stores across 166 cities. Reliance Digital offers a wide range of
technology products and consumer electronics from mobiles, laptops, cameras to large
appliances such as UHD TVs, Air Conditioners, Washing Machines and much more.
Reliance Digital stores are located on high streets and malls, serving technology needs of all
age groups, including millennials to Generation Z and income strata across households.

Personalising technology for every Indian, Reliance Digital is transforming the way India
shops for technology products and consumer electronics by providing product experience
zones, wide range of assortment across 200 national and international brands, quality service
through ResQ, supported by trained and knowledgeable staff and much more.
PESTEL ANALYSIS:

Political Factors that Impact Reliance Digitals

The political factors that may impact the profitability or chances of survival of the company are
quite diverse. The political risks vary from sudden changes in existing political regimes to civil
unrest to major decisions taken by the government. In cases of possible multinationals, one may
also include political factors that take place/ affect not only the host country but also all countries
that contain business operations, or that may engage in trade with Reliance Digital
To properly appraise the extent of the overall systematic political risk that Reliance Digital may
be exposed to, the following factors should be considered before taking part in any investments:

 The level of political stability that the country has in recent years.
 The integrity of the politicians and their likelihood to take part in acts of corruption, as
the resulting repercussions may lead to possible impeachments or resignations of high
level government employees.
 The laws that the country enforces, especially with regards to business, such as contract
law, as they dictate what Reliance Digital is and is not allowed to do. Some countries, for
example, prohibit alcohol or have certain conditions that must be fulfilled, while some
government systems have inefficient amounts of red tape that discourage business.
 Whether or not a company’s intellectual property (IP) is protected. For example, a
country that has no policies for IP protection would mean that entrepreneurs may find it
too risky to invest in Reliance Digital
 The trade barriers that the host country has would protect Reliance Digital; however,
trade barriers that countries with potential trade partners would harm companies by
preventing potential exports.
  A high level of taxation would demotivate companies like Reliance Digital from
maximizing their profits.
 The risk of military invasion by hostile countries may cause divestment from ventures.
 A low minimum wage would mean higher profits and, thus, higher chances of survival for
Reliance Digital

Economic Factors that Impact Reliance Digital

Economic factors are all those that pertain to the economy of the country that Reliance Digital,
such as changes in the inflation rate, the foreign exchange rate, the interest rate, the gross
domestic product, and the current stage of the economic cycle. These factors, and their resulting
impact on aggregate demand, aggregate investment and the business climate, in general, have the
potential to make a company highly profitable, or extremely likely to incur a loss. The economic
factors in the PESTEL analysis are macroeconomic.
The economic factors that Reliance Digital may be sensitive to, and in turn should consider
before investing may include the following:

 The economic system that is currently operational in the sector in question- whether it is a
monopoly, an oligopoly, or something similar to a perfect competition economic system.
 The rate of GDP growth in the country will affect how fast Reliance Digital is expected to
grow in the near future.
 The interest rates in the country would affect how much individuals are willing to borrow
and invest. Higher rates would result in greater investments that would mean more growth
for Reliance Digital
 However efficiently the financial markets operate also impact how well Reliance Digital
can raise capital at a fair price, keeping in mind the demand and supply.
 The exchange rate of the country Reliance Digital operates in would impact the
profitability of Reliance Digital, particularly if Reliance Digital engages in international
trade. The stability of the currency is also important- an unstable currency discourages
international investors.
 A high level of unemployment in the country would mean there is a greater supply of jobs
than demand, meaning people would be willing to work for a lower wage, which would
lower the costs of Reliance Digital

Social Factors that Impact Reliance Digital

The social factors that impact Reliance Digital are a direct reflection of the society that Reliance
Digital operates in, and encompasses culture, belief, attitudes and values that the majority of the
population may hold as a community. The impact of social factors is not only important for the
operational aspect of Reliance Digital, but also on the marketing aspect of the organization. A
thorough understanding of the customers, their lifestyle, level of education and beliefs in a
society, or segment of society, would help design both the products and marketing messages that
would lead to a venture becoming a success.
The social factors that affect Reliance Digital and should be included in the social aspect of the
PESTEL analysis include the following:

 The demographics of the population, meaning their respective ages and genders, vastly
impact whether or not a certain product may be marketed to them. Makeup is mostly
catered to women, so targeting a majority male population would be less population than
targeting a population that is mostly female.
 The class distribution among the population is of paramount importance: Reliance Digital
would be unable to promote a premium product to the general public if the majority of the
population was a lower class; rather, they would have to rely on very niche marketing.
 To some extent, the differences in educational background between the marketers and the
target market may make it difficult to relate to and draw in the target market effectively.
Reliance Digital should be very careful not to lose the connection to the target market's
interests and priorities.
 Reliance Digital needs to be fully aware of what level of health standards, reactions to
harassment claims and importance of environmental protection prevail in the industry as a
whole, and thus are expected from any company as they are seen as the norm.

Technological Factors that Impact Reliance

Digital
The technological factors that may influence Reliance Digital may include the following:

 The recent technological developments and breakthroughs made by competitors, as

mentioned above. If Reliance Digital encounters a new technology that is gaining
popularity in the industry in question, it is important to monitor the level of popularity
and how quickly it is growing and disrupting its competitors’ revenues. This would
translate to the level of urgency required to adequately respond to the innovation, either
by matching the technology or finding an innovative alternative.
 How easy, and thus quickly, will the technology be diffused to other firms in the industry,
leading to other firms copying the technological processes/ features of Reliance Digital
 How much an improvement of technology would improve/ transform what the product
initially offers. If this improvement is drastic, then other firms in the industry suffer more
heavily.
 The impact of the technology on the costs that most companies in the industry are subject
to have the potential to increase or reduce the resulting profits greatly. If these profits are
great in number, they may be reinvested into the research and development department,
where future technological innovations would further raise the level of profits, and so on,
ensuring sustainable profits over a long period of time.
Environmental Factors that Impact Reliance
Digital
The environmental factors that may significantly impact Reliance Digital include:

 The current weather conditions may significantly impact the ability of Reliance Digital to
manage the transportation of both the resources and the finished product. This, in turn,
would affect the delivery dates of the final product in the case of, say, an unexpected
monsoon.
 Climate change would also render some products useless. For example, in the case of
textiles, in countries where the winter has become very mild due to Global Warming,
warm winter clothes have much less of a market.
 Those companies that produce extremely large amounts of waste may be required by law
to manage their environmental habits. This may include pollution fines and quotas, which
may place a financial strain on Reliance Digital
 If Reliance Digital should (knowingly or unknowingly) contribute to the further
endangerment of an already endangered species may face not only the consequences from
the law but also face a backlash from the general public who may then boycott Reliance
Digital in retaliation.
 While relying, in any percentage, on renewable energy may be expensive, it often
receives support not only from the government but also from its customer base, who may
be willing to pay a premium price for the products that Reliance Digital may produce.

Legal Factors that Impact Reliance Digital

The government institutions and frameworks in a country, while technically also political and
thus subject to whichever political party holds the majority in a government body, are also legal
and thus should be considered in a PESTEL analysis. Often Reliance Digital policies on their
own are not enough to efficiently protect Reliance Digital and its workers, making Reliance
Digital appear an undesirable place of employment that may repel skilled, talented workers.
The legal factors that deserve consideration include the following:

 Intellectual property laws and other data protection laws are, as mentioned earlier, in
place to protect the ideas and patents of companies who are only profiting because of that
information. If there is a likelihood that the data is stolen, then Reliance Digital will lose
its competitive edge and have a high chance of failure.
 Discrimination laws are placed by the government to protect the employees and ensure
that everyone in Reliance Digital is treated fairly and given the same opportunities,
regardless of gender, age, disability, ethnicity, religion or sexual orientation.
 Health and safety laws were created after witnessing the horrible conditions that
employees were forced to work in during and directly after the industrial revolution.
Implementing the proper regulations may be expensive, but Reliance Digital has to
 engage in it, not only due to the law but also out of Reliance Digital's personal feeling of
ethical and social responsibility to other human beings.
 Laws are also placed to ensure a certain level of quality or reasonable price for certain
products to keep the customer safe and prevent them for being provided. The industries
this applies to find often their costs elevated.

COMPETITIVE ANALYSIS
COMPETITORS OF RELIANCE DIGITAL

VIJAY SALES -Vijay Sales is an Indian electronics retail store chain based out
of Mumbai. It currently operates 82 stores across the states of Maharashtra,
Haryana, UP, Gujarat and Delhi and has more than 5,000 Products to choose
and is located in prime location all over India.

CROMA-Cromā is an Indian retail chain for consumer electronics and

durables. Infiniti Retail, a subsidiary of the Tata Group, runs Cromā stores in
India. Presently, there are a total of 142 Cromā stores in 32 cities in India.
SWOT ANALYSIS:

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT)

Analysis of Reliance Retail. Strengths are:
1.It is Indian retail chain with 900+ stores in 80 cities in India
2.Hyper market with 95000 markets with tailoring, shoe and watch
Strengths
repair, laundry
3.It owns various private label brands
4.It has strong distribution network- 1600 channels in villages
5. Strong backing of the parent company

Here are the weaknesses in the Reliance Retail SWOT Analysis:

1.Product variety is available but more SKUs are not present due to
Weaknesses
inefficient back end infrastructure
2. Poor inventory control at certain locations is a concern
 Following are the Opportunities in Reliance Retail SWOT Analysis:
1.Sourcing directly from bands; no middlemen could earn more profit as
number of items will increase five times in next 5 years
Opportunities
2.Leveraging on brand name and entering into Reliance saloon
3.Large potential to reduce operation cost in cities using strong supply
chain

The threats in the SWOT Analysis of Reliance Retail are as mentioned:

1. Strong competition globally from Carrefour, Metro A.G., Tesco
Threats 2.Operationg cost are too high
3.Wallmart is biggest competitor when it comes to sourcing/ backward
integration

KEY SUCCESS FACTOR

 Reliance Digital offers guidance on arriving at qualified decisions, timely
delivery, and best prices. Add to that reliable after sales services that
enable you to make decisions that reinforce the path of your company and
become a contributing factor to its success.

 The online platform is an extension of Reliance Digital

 Reliance Digital looking at acquiring a significant market share of the

consumer electronics and smart phones sector in the upcoming festive
season.

 It plans to offer price-competitive deals along with heavy discounts.

 Reliance Digital also has an in-house service wing called ResQ, which
handles installation requests, demos, and after-sales service for its
products. This could also act as a differentiating factor for the company.
Reliance Digital Marketing Mix (4Ps) Strategy
Marketing Mix of Reliance Digital analyses the brand/company which covers
4Ps (Product, Price, Place, Promotion) and explains the Reliance Digital
marketing strategy. The article elaborates the pricing, advertising & distribution
strategies used by the company.
PRODUCT
The product strategy and mix in Reliance Digital marketing strategy can be
explained as follows:
Reliance Digital is one of the biggest conglomerates in India. Reliance
Industries has invested into several sectors and it contributes 20 % of India’s
exports. Its business is present in various sectors, which can be studied to
understand Reliance’s product strategy in its marketing mix. Retail sector
includes Reliance Fresh, Big Bazaar, Reliance Mart, Reliance Market, Reliance
Home Kitchen, Reliance iStore and many more. In production and selling of
solar energy into rural areas, it introduced Reliance Solar. Reliance Life
Sciences is involved in Medical, Plant and biotechnology as it specializes in
branding, manufacturing and marketing Reliance industries products in bio
pharmaceuticals. Reliance logistics is involved in transportation, distribution,
logistics, supply chain related activities and telemetry solutions.

PRICE
Below is the pricing strategy in Reliance Digital marketing strategy:
Reliance Digital follows different pricing strategy for different sectors. Hence,
the marketing mix pricing strategy of Reliance Industries is diverse, based on
competition and market leadership in some sectors. It follows penetration
pricing for retail, telecommunication and health. When the company launched
Reliance Jio, it offered free Jio services to its customers during the launch
period to increase market share.
However, the retail and telecommunication sectors are at loss, but the company
is providing offers to customers to increase its customer base. The pricing
decisions on petroleum sector largely depend on the macro environment factors
and global market scenario. Outlets such as Reliance Fresh, procure its products
directly from the source hence it has cut down on the intermediaries thereby
providing benefit to the consumer in terms of discount and price reduction.
Reliance Industries carries out thorough pricing analysis before coming to
pricing decisions and is influential factor for its rise in the competitive market.
PLACE
Following is the distribution strategy of Reliance Digital:
Reliance Industries has a strong presence all across India. Reliance Retail is the
largest retailer has more than 1500 stores across India and other brands like
Reliance Fresh, Reliance Footprint, Reliance Digital and Reliance Trends have
reached the Tier 1 and Tier 2 cities. Reliance Jio sim services are available
across major regions and its connectivity is also improved in recent months.
Reliance Industries’ distribution strategy is well planned that even though it is a
new entrant its reach has covered major part of India. Reliance fresh procures
raw materials directly from the source hence it has attracted large number of
customers due to the discounts offered.

PROMOTION
The promotional and advertising strategy in the Reliance Digital
marketing strategy is as follows:
Reliance Industries is heavily inclined towards advertising and brand
promotion. The promotional strategy in the marketing mix of Reliance
Industries is focused towards 360 branding and aggressive brand
promotion. Reliance uses the tagline “Growth is Life” and has
encapsulated its sentiments of taking people together. RIL owner Mr.
Mukesh Ambani acquired rights of the Mumbai Indians franchise for 10
years and this acquisition is instrumental in bringing the Reliance brand
to limelight. Reliance Industries had roped in popular Bollywood actor
Hrithik Roshan for endorsing Reliance Telecom. It announces discounts
and conducts various promotional activities at various Reliance outlets.
Due to its strong brand awareness, Reliance Industries has attracted
customers across its various stores. Weekend discounts, bulk purchase
and customer loyalty points often lead to increased customer base. Jio
Digital Life tagline is taken into consideration with #Digital India that
target youth using smart phones and other devices to be digitally
progressive. Hence, this covers the marketing mix of Reliance Industries.
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