Reliance Fresh vs More Final

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Reliance Fresh vs more Final — Presentation Transcript   1. 2. Agenda Merchandising Retail Mix Importance of retail mix Retail Mix: Reliance Fresh v/s more. Conclusion  3. What is merchandising? Merchandising is the methods , practices and operations used to promote and sustain certain categories of commercial activities. It means maximizing merchandise sales using product design, selection, packaging, pricing and display that stimulates consumers to spend more .  4. CHOOSING THE RETAIL MIX
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  Reliance Fresh vs more Final — Presentation Transcript    1.    2. Agenda Merchandising Retail Mix Importance of retail mix Retail Mix:Reliance Fresh v/s more. Conclusion    3. What is merchandising? Merchandising is the methods , practices andoperations used to promote and sustain certain categories of commercialactivities. It means maximizing merchandise sales using product design,selection, packaging, pricing and display that stimulates consumers to spendmore .    4. CHOOSING THE RETAIL MIX Target Market Product Price PromotionPlace Personnel Presentation    5. Importance of retail mix Placing products at the right place gives themhigher visibility Good customer service is very important in order to retain acustomer Store location is an essential factor as if the store is at aninconvenient location, it may reduce the number of customers visiting itGood promotion and pricing of products increases the volume of sales    6. PRESENTATION (COMMUNICATION) OF THE RETAIL STOREEmployee Type & Density Merchandise Type & Density Fixture Type & Density Sound Odors Visual Factors Factors in Creating Store‘s Atmosphere    7. How many How knowledgeable How helpful / invasive Fit the image of the product Good personal sellers Factors in Personnel decisionsPERSONNEL OF THE RETAIL STORE    8. RETAILING STRATEGY-PRICING Use Everyday Low PricingBenchmark or Signpost Items  –  items used by consumers as an index of overall price level of the store I.e.  –    ―How much do they sell T shirts for?‖ Allow for Shrinkage and discounting OR How much mark-up?    9. RETAILING STRATEGY - LOCATION Central Business DistrictRegional Shopping Centers Strip Location Multichannel Retailers Anchor  Stores Parasites Destination stores Power centers Freestanding StoreShopping Center Tenant Mall Tenant    10. Important terms Variety: It represents the number of merchandisecategories a retailer offers. It is also referred to as breadth of merchandiseAssortment: It is the number of different items in a merchandise categorySKU (stock keeping unit): It is each different item of merchandise    11. Breadth versus depth of merchandise lines    12. Retail Mix Reliance Fresh v/s More    13. Reliance Fresh Reliance Retail Limited (RRL), a subsidiary of the Indianconglomerate Retail Industries Limited, launched its first convenience storein November 2006. RRL has grown rapidly and operates over 900 storesacross 80 cities in 14 States, which include over 750 Reliance Fresh stores.Reliance Fresh is the convenience store format which forms part of the retailbusiness of Reliance Industries of India . It is positioned as a pure play supermarket focusing on categories like food, FMCG, home, consumer durables,IT and wellness , with food accounting for the bulk of the business.    14. Place 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    15. Promotion The main idea behind every effort is to make a bulk purchaseSaturday and Sunday are considered as discount and scheme day Two typesof offer: BOGO BXGY Rebates and Premiums focusing on bill value Audiovisual tools been employed    16. Product Strictly vegetarian Product Mix consists of Fresh Fruits,Vegetables, Dairy products, Frozen Items, Groceries, cosmetics and DailyUse products Less Assortment but focus on specific product categories likevegetables, dairy products, detergents, fruits and daily use items    17. Presentation The pure foods convenience store model of Reliance Freshrequires far less space than a full-fledged supermarket Most of these outletsneed around only 2,000-5,000 sq. ft Simple, colorful but cramped Separateentry and exit point Chocolates and other kids items were nearby cashcounter Vegetables and Fruits items were in display near entry gate     18. Pricing Low prized Private labels Discount on bulk buying Measurestaken to reduce the length of Supply Chain thereby purchase directly fromfarmers, which is in turn sent to distribution centre. Two times supply of  vegetable and fruits daily to ensure ―fresh‖      19. Personnel 2 shift staff for small stores and 3 shift staff for larger ones 5to 6 sales persons per shift Staff uniform: red, green and blue 1 week training given to staff Amiable staff but poorly informed    20. Private labels Reliance Fresh: Reliance Fresh‘s shelves pro vide anindication that the group is looking for higher margins. Most of the staplesare under its own private label brand  —    ‗ Reliance Select‘. Excepting a few packets of Nestle‘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 brandedproducts of FMCG companies.    21. more. Aditya Birla Retail Limited is the retail arm of Aditya BirlaGroup, a USD 28 billion Corporation. The Company ventured into food andgrocery retail sector in 2007 with the acquisition of a south basedsupermarket chain. more. supermarkets cater to the daily, weekly andmonthly shopping needs of consumers. Currently the group has a nationalpresence The store, has been aptly named more. As it promises to change theeveryday shopping experience for consumers    22. Place Generally more. is located in a series of conveniently locatedneighbourhood supermarkets Currently it has 18 stores in AhmedabadLocated in areas of high footfalls like movie theatres, shopping malls,restaurants, etc.    23. Promotion Large size promotional offer banner at the entrance Specialoffers on private labels displayed near the entrance Audio  –  visualpromotion of private label products New concept: Color Slips based onproduct pricing Introduction of $ store concept Promotional schemescombined with vodafone Mobile store kiosk - parasite Attractive offer names like ‗July mein Dhulai‘      24. Product The product offerings of the more supermarkets include a widerange across fresh fruits and vegetables, groceries, personal care, home care,general merchandise and a basic range of apparels Hypermarket stores alsohave a strong emphasis on general merchandise and apparels more. also has  a range of products from its own stable available across value, premium andselect ranges Variety is a promise delivered across the store    25. Price Private label products were marked down by a substantial marginIntelligent pricing strategies for private labels were defined so thatcustomers could not compare with usual goods promises best in marketpricing. Linking up directly with farmers to source fresh fruits, vegetablesand staples ensure great quality as well as great price the membershipprogram Clubmore., which provides convenience, customised shoppingsolutions and savings    26. Presentation bright and clean stores, at convenient locations with layoutsthat allow ease of navigation The product display is well organised andfacilitates ease of choice The stores have been designed by Fitch, the leadinginternational retail design firm Separate entry and exit points Higher airconditioning levels at the front end of the store    27. Personnel 2 staff shifts: 7am to 4pm & 1pm to 10:30pm Staff densityhigher in first shift = 11 as compared to 20 in the second shift Co operativeand well informed Staff uniform- orange and black     28. Private Label Aditya Birla ‗More‘ strategy to offer budget and high value private label offerings under brand names Value, Select and Premiumensure that more Product name: Feasters Packaging: very similar to thebranded counterpart Placement: alongside the branded counterpart toconfuse the customer Pricing: significant price difference Promotion: colorslips promotions strategized to indulge customer in private label purchaseAudio video promotion done only for private labels    29. Conclusion Both the retail giants do not vary much in their offerings andimage It may be possible in the near future that they are left with nodifferentiation but still create a loyal customer base for themselvesAccording to analysts, in the long run, this would develop niche markets forthem    30.
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