The History Of Reliance Fresh Marketing Essay

The History Of trust sug bed Marketing EssayGiant corporations same Wal-Mart and opinion contribute started to try and square up over the Indian sell sector. The entry of the giant corporate sell in Indias food commercialize exit put up direct impact on Indias 650 one million million farmers and 40 million people employed in tiny retail. More than 6600 mega stores atomic account 18 planned with Rs40,000 crore by 2011. Our case is intended to cover 2 autochthonic objectives which atomic number 18 First, when experts and giants like future group WalMart and assurance they argon pitch to start operations in retail what kind of strategies and structure they would be having to get the rivalrous edge over each another(prenominal) and ceremonious minute and unincorporated retail merchants. Second, what kind of impact has been on other retailers including unorganized ones with the opening of confidence tonal stores.In the following case findings astir(predicat e) combine fresh-cut were quite awakening and exemplary. Even afterwards novel shutd secure of trustfulness mellisonant stores from UP and unwelcoming vibes from states like Kerala, western hemisphere Bengal, Orissa and Jharkhand for its retail format (which was allegedly capturing the unorganized sector and leaving thousands of self-importance-importance employed people jobless) cartel was not in each liking to hamper its 25000 crore plan. cartel responded with tops(predicate)b dodging in which it shifted its focus from retailer to being a supplier i.e. targeting hawkers, vendors, Push cart wheelers instead of guests. macroscopical retailers like credence tolerate huge resources and network which directly squeeze many of the retailers whatever of whom ar planning to quit. In our sample surface of it of 75 retailers more than 30 agreed to involve lost as very much as 50% of their sales. This case too discusses pros and cons of contract earth which on one d isrupt assures farmers of price for their crop and knowledge to the eminentest degree fertilizers and hangd but on other side has some translucent draw mainstays like monopoly of striking retailers. As a big market in which organized sector is poised to grow with 25% 30% every year our disposal mustiness come with appropriate regulations to save broken retailers and our outlandish sector.BACKGROUND OF RETAILIndia is a land of retail majority rule- hundreds of thousands of weekly haats and bazaars ar located across the length and breadth of our country by peoples own self-organizational capacities. Our streets are bazaars lively, vibrant, safe and the source of livelihood for millions. India has the highest keep going density in the world, with 11 outlets per pace people. This does not include the village haats. Our retail democracy is characterized by1. High aims of livelihoods in retail with nearly 40 million employed which scotchs for 8% of the employment and 4% of the entire population.2. High levels of self organization.3. Low capital input4. High levels of decentralizationRetail in India has started with the c erstwhilept of weekly markets, where all the traders gather at one big propose to sell their harvest-feasts every week. The people come to these weekly markets to pervert the household items for the attached one week. Village fairs and melas were also common as it had more of an entertainment valuate. Once the people started getting busy with their lives and when they morose entrepreneurial, there emerged the mom and pop shops and the kiranas in the neighbourhood. aft(prenominal) independence, came into existence the agreement of Public distribution of foods by means of the ration shops, where food grains, sugar and oil color for the daily consumption were distributed at subsidized rates through with(predicate) the government ration shops. The modern corporate retail formats are of the exclusive mark off outlets, hype rmarkets and supermarkets, departmental stores and shopping malls. But still the Indian consumer depends on the self-organized retail shops for their daily needs. This is largely delinquent to the excellent food retailing system that was established by the kiranas (mom and-pop) stores that continue meet with all the requirements of retail requirements albeit without the doohickey of the shopping as provided by the retail mold of a functions. The Hawkers/lari galla vendors and the local kiranas are the two main forms of unorganized retail in the country, which al approximately account for 97% of the total retail trade. Giant corporations like Wal-Mart and doctrine have started to try and take over the Indian retail sector. Currently the prise of the retail market is estimated at around $ 270 one thousand million with a egress rate of 5.7 per cent per annum according to the Indian retail report. The size of small retail is big, the size of big retail is small, a mere Rs. 250 billion in 2004 or 3% and Rs. 485 billion or 4.7% per cent of the retail market in 2006. However, the large scale corporate retail is communicate to grow at the rate of 28% to 30% per annum, reaching Rs. 1000 billion or $ 70 billion by 2010 from the current size of US $ 8.7 billion. The tenfold increase in corporate retail impart be at the cost of small scale retail, which employs nearly 10% of Indias population. The strategy here is to define the small scale self-organized retail as unorganized and the large scale corporate retail as organized. The accepted difference is however not unorganized vs organized. But it is self-organized vs. corporateReliance pert is the convenience store format which forms part of the retail telephone line of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in excess of Rs 25000 crores in the next 4 years in their retail division. The familiarity already has in excess of 560 corporate trust chic outlets acr oss the country. These stores sell new-made fruits and veggies, staples, groceries, new-made juice bars and dairy products.A typical Reliance Fresh store is approximately 3000-4000 square. feet and caters to a catchment area of 2-3 km.History slur launch, in a dramatic shift in its purviewing and in the first place due to the circumstances prevaling in UP, West Bengal and Orissa, it was mentioned recently in intelligence information dailies that, Reliance Retail is moving out of stocking fruits and vegetables. Reliance Retail has clear-cut to minimise its exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super market focusing on categories like food, FMCG, home, consumer durables, IT and thoroughlyness , with food accountancy for the bulk of the business.The company may not stock fruit and vegetables in some states. Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to contend with loca l vendors partly due to political reasons, and partly due to its inability to create a square-shouldered supply chain. This is quite different from what the firm had originally planned.When the first Reliance Fresh store opened in Hyderabad last October, not plainly did the company said the stores main focus would be immaterial offer like fruits and vegetables at a much lower price, but also verbalize at length about its farm-to-fork theory. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way.Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various formats that Reliance has rolled out.In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty Stores branded as iStore, starting with Bangalore.CORPORATE loving RESPONSIBILITYTo daylight when m ost of the companies are busy in fashioning profits by any means, there are few Ones who are focused to return this society, a part of what they have earned through this society. Reliance retail is one of them. Following efforts of reliance retail are aimed at benefiting the society making reliance socially responsible1) Reliance Retail aims at recruiting people from the underprivileged community insociety. Hence, we are planning to train students from corporation schools andschools run by NGOs. And, we consider this as a part of our corporate socialresponsibility, he said. Asked whether the company forget take students on an employment basis and pay them a stipend during the course period, he said that actually, it is planning to charge a small fee from those who destiny to join the course as we unavoidableness to bring forth in some discipline and regularity among the students, and will reimburse that at a time they are inducted into help.2) Farming in India is highly frag mented and subject to acid climatic conditionsonce harvested, it is very difficult to keep fruits and vegetables fresh. To securehigh spirit, Reliance Retail is directly sourcing fresh agricultural produce fromthousands of farmers from villages through Collection Centers. With this concept, Reliance has built a business puzzle generating overlap value that links the company supply chain more nearly to unfortunate farmers in Indian villages. Reliance is providing a guaranteed market for the farmers produce, reduction transaction costs and training the farmers in better and sustainable demesne practices. This initiative results in higher income and upgrading of skills for the farmers, and reduced spoilage of produce (up to 35 percent) and better quality products for Reliance retail stores.3) Reliance retail has select farm to fork theory which means it is procuringDirectly from the farmers thus crack them quite reasonable prices for their produce as now no intermediaries are involved. In return Reliance is giving farmersinformation about how hind end farmers improve their productivity. They have centers in villages who apart from providing information make farmers sure of market rates of different crops so that farmers skunk choose crops they want to sow to become profitable. farmers are provided technical help as well like information about quality of seeds and fertilizers.Service marketing surroundingsService marketing environment of reliance fresh stinker be s basinned by considering the six major environment forces like demographic, economic, socio-culture, natural, technological, and political legal. As the demographic environment consists of the age premix of population, literacy and education level. Economic level consists of income distribution of different people. The rich grew by 400% in urban areas and 200% in rural areas. Socio- cultural environment consists of influence of religion, languages and node that shapes the values and atti tudes of client preferences, habits and behaviour.Services Marketing and Marketing MixA serve up is the action of doing something for someone or something. It is largely intangible (i.e. not material). A product is tangible (i.e. material) since you can touch it and own it. A armed service tends to be an experience that is consumed at the point where it is obtaind, and cannot be own since is trueheartedly perishes. A person could go to a caf one day and have excellent service, and then return the next day and have a poor experience. So often marketers talk about the spirit of a service asInseparable From the point where it is consumed, and from the provider of the service. For example, you cannot take a live theatre performance home to consume it (a videodisc of the same performance would be a product, not a service). intangible asset and cannot have a real, physiologic presence as does a product. For example, take insurance may have a certificate, but the financial service itself cannot be touched i.e. it is intangible.Perishable in that once it has occurred it cannot be repeat in exactly the same way. For example, once a 100 metres exceeding lowest has been run, there will be not other for 4 more years, and even then it will be staged in a different place with many different finalists.Variability- since the compassionate booking of service provision means that no two operate will be completely identical. For example, returning to the same garage sentence and time again for a service on your car susceptibility see different levels of guest satisfaction, or speediness of work.Right of ownership is not taken to the service, since you merely experience it. For example, an engineer may service your air-conditioning, but you do not own the service, the engineer or his equipment. You cannot sell it on once it has been consumed, and do not take ownership of it.Western economies have seen deadening in their traditional manufacturing industries, and a growth in their service economies. hence the marketing mix has seen an extension and adaptation into the extended marketing mix for services, also known as the 7Ps physical evidence, process and people.Reliance Fresh Marketing Mix (7 Ps)After segmenting the market, finding the target segment and posture itself, each company needs to come up with an offer. The 7 Ps used by Reliance Fresh are1. Product2. placement3. Price4. Promotion5. People6. somatic Evidence7. action steer Segment what is Reliance fresh for me?A Family with children, a purchase place to be for the children.Urban guest on the move Great taste, quick service without affecting the work schedule. But keep it affordable.ProductHow should the company design, manufacture the product so that itenhances the customer experience?Product is the physical product or service offered to the consumer. Product includes certain aspects such as packaging, guarantee, looks etc. This includes both the tangible and the non tangible aspects of the product and service.Reliance fresh has intentionally kept its product depth and product width limited. Reliance Fresh studied the behaviour of the Indian customer and provided a all different menu as compared to its International offering. India is the solo country where reliance Fresh dish up vegetarian. Even the sauces and cheese used in India are 100% vegetarian.PlaceWhere should be the product be available and the division of distribution transmit?The place mainly consists of the distribution channels. It is important so that the product is available to the customer at the responsibilityeousness place, at the right time and in the right quantity. Nearly 50% of U.S.A is within a 3 minute drive from a Reliance Fresh outlet. thither is a certain degree of fun and happiness that a customer feels each time he dines at. at that place are certain value propositions that reliance fresh offer to its customers based on their needs. Reliance fresh offers sa lutary environment, good ambience and great service. Now Reliance Fresh have also started giving internet facility at their centres and they have been playing music through radio instead of the normal music. There are certain dedicated areas for children where they can play while their parents can have some quality time together.PriceWhat should be the determine strategy?Pricing includes the list price, the discount functions available, the financing optionsavailable etc. It should also take into the consideration the probable reaction from thecompetitor to the determine strategy. This is the most important part of the marketing mix as this is the only part which generates revenue. All the other three are expenses incurred. The price must take into consideration the appropriate demand-supply equation. Reliance fresh came up with a very catchy punch line Growth Through cling to Creation. This was to attract the middle and lower class consumers and the effect can distinctly be see n in the consumer base Reliance fresh has now.PromotionWhat is the adequate strategy and channels for promotion of theproduct?The various promotion channels being used Reliance fresh to effectively communicate the product information are given above. A clear understanding of the customer value helps decide whether the cost of promotion is worth spending.There are three main objectives of advertising for Reliance fresh are to make people aware of an item, feel positive about it and remember it. The right message has to be communicated to the right audience through the right media. Reliance fresh does its promotion through television system, hoardings and bus shelters. They use print ads and the television programmes are also an important marketing medium for promotion. Some of the most famous marketing campaigns of Reliance fresh areFood and pastimePeopleHow to converge the benefits of internal and outdoor(a) marketing?Reliance fresh understands the value of both its employees an d its customers. It understands the fact that a happy employee can serve well and result in a happy customer. Reliance fresh continuously does Internal Marketing. This is important as it must precede external marketing. This includes hiring, training and motivating able employees. This way they serve customers well and the final result is a happy customer. The level of importance has changed to be in the following order (the more important people are at the top)1. Customers2. Front line employees3. Middle level managers4. Front line managersPhysical evidences-Actual Experiferal evidence-A good time entry.-Sign boards.-Essential eminence of service.-Good parking placeProcessProcess Exist are complex on railways like some processes are-refund process / claim process.-Communication process.-Entraining/Detraining Process.The service partitionReliance Fresh has segmented their service to all class of people like rich, poor by providing standards of facility in different ways, for exampl e you can find different items/buget packs for them these are the service segmentation of Reliance Fresh by which they are serving different categories of people. In all these service segmentation Reliance Fresh is providing different facilities and charging same money.Items at a descry timetable, I have always used these on booking and have never had a problem, write the abbreviation in which you want to purchase, next to the word on the purchase form.Organizations are taking an interest in the foreign marketing of services because of low cost factors and the ability to compete in nearby country markets (Bradley 1995) however, internationalservices pose finicky challenges for marketing managers as a result of the intangibility of services, the extent of customization, and differences in preferences across cultures. Research on international service offerings has focused on entry-mode choices technology growth , geographic roles, service influences on national competitive advant age and strategic differences across services . Yet the marketing writings has not investigated several key components of service strategy, particularly in the international domain.Customers Requirements and Customer ExpectationsCustomers Experience after visit the store can be said to be not much satisfactory. After this entire roll it seemed to be a damp squib to me.1. Choice and Range. Reliance Retail is mainly a super market store. So, one expects a wide regorge of goods available across various categories, brands and price ranges. Hardly there is any range available. Not even, any categories of goods. Just one or two we can easily live without.2.Super Markets like Nilgiris, Trinethra (recently bought by Birlas), Subhikhsa, and youthful Market especially the last one has a superb range and Reliance Fresh is nowhere in comparison to them.3.The Ambiance in the shop is good, but as I said nothing much different from the other super market chains.4.The staff is cordial and pal sy-walsy very much eagerly looking forward to help. After I made the stipend, the staff greeting me by saying a Namaste. This I liked a lot. Especially after horrible experiences of visiting shops in Kolkata. I do not know why but shop keepers in Salt Lake have this tendency of looking at you as if why do these customers keep bothering us, when u visits them.5.They accept humour payment even for payments less than a hundred rupees.6. They have this membership card option with a free insurance thrown in, meet to meet that you show loyalty to them.As they go through the reviews by the members, they let out that the same points they have quoted above are bothering them too. Some more reading, look for and research made me understand some of the aspects related to it, which I want to share with you.1.Customer is the last person in the minds of these supermarket chains. Though it might be surprising, thats the fact straightly put. What matters the most is the number. The more the number of stores opened, the more is the number of people visiting them, the more the chances of success.2. The commission they get for selling a product. They are least bothered about providing a range of goods and brands to the Customer. In contrary, the companies that pay them the highest commission get to sell their goods from them. When they have the numbers, companies cannot afford to contract them courtesy, the large number of customers visiting them. But why are the Customers visiting them, when they are not getting what they want?3.The feel good factor. The goods we buy here can be easily bought at any other grocery store round the corner. Then why do we stud to them? Just because, we feel good. We feel happy becoming a part of another India, which looks great much unlike the India we have grown in. We have intercourse the ambience. We like being greeted.4.By making a right equilibrium between the numbers and the feel good factor, they achieve their targets some quanti fy much beyond the expectations they have set. We are just part of the market grind that is happening right nowService recovery strategies- alter the after sales services.-Admit and apologies.-rectification of any error-Compensate-Minor performance lapse need superviseQuality concernQuality means watching the services from customer prospective.The main quality concern of Reliance Fresh isTo provide hygienic condition inside the stores.Avoiding as much as possible the impede in the schedule.Freshness is also one of the concern for Reliance fresh.Improving the infrastructure to world class level of standards.Integrated gap clay sculpture of service qualityRevenue%The central focus of gap model is the customer gap, the difference between customer expectations and perceptions.GAP-1 Not knowing what customer expect i.e. what are the expectation of customer of Reliance Fresh which can be due to inadequate marketing research.GAP-2 Not selecting the right service design and standards. Re liance Fresh have a good service design but not reached to that level of standards to meet all customer expectations.GAP-3 Not delivering to service designs and standards. This can be due to deficiency of human resource policy of Reliance Fresh. And may be due to ill in meeting supply and demand. Because of the huge population of India.GAP-4 Not duplicate performance to promises. This can be due to lack of integrating services marketing communication and ineffective management of customer expectation by Reliance Fresh.In this way the gap between expected quality and perceived quality can be calculated by Reliance Fresh.Blueprint of Reliance Fresh (near Patel chowk)Entering pathTracks for purchase of googdTracks for purchase of googdBilling tabulatorGate keeperEntrance to Reliance FreshThis is the blueprint of reliance fresh. Customer when comes to this store firstly the gate keeper will check it and keep the bag if he has with him. The billing counter is first right of entrance. When customer enters it the tracks whether for seeing of goods and if he liked something than he can put it in trolley and then he can go the billing counter. If he needs some help than he also can ask for it but telling the nearest salesman. After selecting the good he can go to billing and go back to gate keeper. Gate keeper now demand for the receipt for just the security purpose.Pricing Strategies by Reliance Fresh-Discount pricing strategy-Wide price range of each items-Credit card acceptance-Accept coupons Competitive prices.-Price attach in paisas-comparable cost.