Sales Promotion for Reliance Fresh

(APKA FRESH APKE PADAOS ME)

ByMoumitaShatabdiSundari

COMPANY PROFILE

Industry: Retail Type: Supermarket Chairman & Managing Director:

Mukesh Ambani First Outlet: Hyderabad( Banjara

Hills) Founded: 30th October 2006 Headquarter: Mumbai

Product Range

Vegetables and Fruits: Household items Food and Beverages- all private labelled and

premiere brands. Groceries –only private labelled items Dairy products Refrigerated products Non-Food items

Positioning

Reliance has positioned itself as a convenience store or neighbourhood store.

It is also related itself with freshness in the customers mind.

• Generally located in small commercial complexes close to 3-4 big residential areas

• Observation: found close to ‘Crossroads’

• Enjoy a clear view from the road

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Reliance Fresh : Place

The main idea behind every effort is to make a bulk purchase

Saturday and Sunday are considered as discount and scheme day.

Rebates and Premiums focusing on bill value Audio visual tools been employed

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Reliance Fresh : Promotion

Product Mix consists of Fresh Fruits, Vegetables, Dairy products, Frozen Items, Groceries, cosmetics and Daily Use products.

Less Assortment but focus on specific product categories like vegetables, dairy products, detergents, fruits and daily use items

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Reliance Fresh : Products

• The pure foods convenience store model of Reliance Fresh requires far less space than a full-fledged supermarket

• Most of these outlets need around only 2,000-5,000 sq. ft• Simple, colorful but cramped• Separate entry and exit point• Chocolates and other kids items were nearby cash counter• Vegetables and Fruits items were in display near entry

gate

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Reliance Fresh : Presentation

Layout and ambience –Well Lit, Neat, Bright and Easy to read Signs

Low prized Private labels Discount on bulk buying Measures taken to reduce the length of Supply

Chain thereby purchase directly from farmers, which is in turn sent to distribution centre.

Two times supply of vegetable and fruits daily to ensure “fresh”

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Reliance Fresh : Pricing

• 2 shift staff for small stores and 3 shift staff for larger ones

• 5 to 6 sales persons per shift• Staff uniform: red, green and blue• 1 week training given to staff

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Reliance Fresh : Personnel

THE FARM TO FORK MODEL(RELIANCE FRESH)

• Reliance Fresh’s shelves provide an indication that the group is looking for higher margins. Most of the staples are under its own private label brand — ‘ Reliance Select’.

• Excepting a few packets of Nestlé's Maggi, or MTR’s masalas or Pepsi’s Lays chips, there is very little shelf space given to the big brand owners in the country.

• Reason: Private labels offer far better profit margin to the retailer than branded products of FMCG companies.

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Reliance Fresh : Private labels

STATEGYHighlights the saving

Affordable brandsWide Range to choose from

BRANDSGLEN Cooktops-GL 1046 PLCB

INALSA Cooktop 2 Burner –Harmony

PREETHI GAS STOVE DUAL FLAME GS610

STATEGY

Highlights the savingAffordable brands

Wide Range to choose from

Excellent aesthetics

BRANDS

AristoPratap

Signoraware

Sales Promotion:

The main idea behind every effort is to make a bulk purchase.

Saturday and Sunday are considered as discount and scheme day.

Two types of offer: 1. BOGO (Buy one get one free)2. BXGY (Buy X product get Y product free)

Rebates and Premiums focusing on bill value.Auto material inside the store including the latest promotions & offers.Point of Purchase displays are used at reliance fresh to communicate the benefits of a product.Festive season special offers.Live announcement & Spot discount.

Cont….Reliance Fresh Membership Cards.

Social events & store tour.

Providing gifts- free goods.

What Reliance Fresh is doing?To increase sales volume:

Concentrate on Visual Merchandising.

New concept of promotional strategy.

One to One Marketing.

Direct & long term relationship with farmers and manufacturers.

Providing concessional long term loans to farmers.

Push v/s pull strategies

PUSH STRATEGY

Point of sale displays. Special Displays. Dealers Premium, Gifts. Advertising materials. Catalogs and brochure. Events. Sampling.

PULL STRATEGY

Coupons Samples Premium and gifts Refunds/Rebates POP advertisement.

Swot analysis

Private label sale – own products (Reliance Select)

Contract Farming

Network – 1600

channels in villages

Poor inventory control

Staff – Lack of knowledge about

products Parking

Farm to fork, No middlemen, Farmers

– Customer Hundreds of farmers – 1 million farmers –

next five years

International Retail Giants:

Carrefour, Metro AG,

Tesco. Bharti –

Wallmart (Farm to

Fork)Operating cost are too high

SWOT

COMPETITORS MORE Total Mall Spencers Daily Namdhari Fresh Food World Nilgiris Auchan Spar Hypermarket Hyper City

Benefits

1.All under one roof2.Wide range to choose

from3.Information regarding

various offers4.Loyalty programs and

benefits

1. Increased Footfall

2. Increase in sales

3. Ability to manage merchandise based on customer information

Customers COMPANY

Future plans:

Plans to invest Rs 25000 Crore in next 4 year in their retail division

Train students and housewives – Customer care & Quality service – Part time job

Every Indian Consumer New format of food and café –

Reliance food Private label sale – Kirana store Pharmacy retail store 6000 outlets – 784 cities Launch soaps, detergents, cosmetics

and non FMCG products – Private label

Thank you