1. Group 6 Akanksha Singh 0911004 Saurabh Chandra 0911047 Sumit Kumar 0911057 Arvind Choudhary 0911085 Bhawna Jain 0911301 Ganeshram K 0911309 Shikha Rawat 0911344 Retail Branding

3. Organized retail penetration -14% by 2015

4. 5 mn sq feet (2010) -> 20 mn sq feet (2011)

6. regulatory policies (29 licenses required to start a hypermarket in Mumbai)

8. Favorable demography: more than half the country is under 25 years of age

9. Consumer mindset: Mandi to Market

10. By2025, India will be 5th largest consumer market (60 mn people in Indian middle class)

11. More working women; More plastic moneyEntry of global giants in India through multiple tie-ups! Aggressive growth plans of domestic players!

14. Bharti Wal-Mart stores near cities only

15. Tata & Reliance have no ready plans too.

16. Fragmented customer base

17. Opposition from market middle men

19. In a Big Bazaar outlet in Sangli - a family ran up a bill of Rs 1.25 lakh!

20. In Alwar, Big Bazaar store had annual sales of over Rs 18 crore. Sale of small stores has dropped 8%.

21. “Treat catchment area like constituencies - just the way political parties don’t ignore ethnic communities."

22. Concepts built specially for rural India - stocking aluminium vessels in Muslim dominated communities, tapping local trader & women SHG for food items to address local preferences.

25. Product Variety – customers want a one-stop shop. So fruits & vegetables + staples, grocery & household products.

26. Product Quality – Though low price, but customers want best quality.

27. Product Stock – should remain fresh 24*7

28. Customer complaints – about Reliance Fresh not being “fresh”

30. Ability to price premium – difficult

31. Reliance Fresh plays on “value for money”

32. Gives volume discounts

33. Achieved cost cutting – private labels

35. Neighborhood store: In small commercial complexes close to 3-4 big residential areas; Close to cross roads

36. Scale & replicate – immediate priority

37. Moving towards owning the store than leasing it out to control real estate price

38. No franchisee to lower risk

39. More. To reduce operating costs, shifted from fixed rentals schemes to revenue sharing

40. More.: Before launching any hyper mart, senior executives visit at least 35-40 families near a store and have a FGD to know neighborhood’s preferencesPlace

42. Focus – functional benefits & discounts

43. Weekend – discount day

44. Festive season discounts

45. Rebates & Premiums focusing on bill value

46. Reliance One: customer loyalty program

47. Target to get its loyalty program in top 10 loyalty card base in worldwide retail sector by 2012 – currently 3 mn customer base

48. Home delivery of groceries

49. No website; morestore.com

50. Customers not aware of discounts; Big Bazaar: purana do naya lo; Wednesday - hafte ka sabse achcha din

51. Less in-store promotion.

52. Reliance One – can accumulate points only after 6 months; More. – welcome points for new enrolment!

54. Consciously segregated non-vegetarian items – “Delight”

55. Different billing counter for < 8 items

56. Stores open at 07:00 am

57. Physical infrastructure - important

58. Stale fruits and vegetables!

59. Understaffed billing counters!

60. Diff between quoted & billing price

61. Bad layout & floor maintenance

63. Process very important in ensuring customer satisfaction and delight

64. Currently process of interaction is standardized and staff not able to handle varying customer problems

65. Transparency in billing etc missingProcess

67. Skill sets required – Advanced

68. Compensation – Not high

69. People – Most important

70. Staff uniform – red, green and blue

71. 1 week training to staff

72. Needs to be courteous, well trained and informed - more of a generalist

73. New CEO – focus increasing on customer satisfaction (Aapki Khushi Hamari Khushi)

74. Reliance Fresh lacking on people front. Numerous customer complaints on bad service, staff not informed on discounts & prices and un courteous staff (highest on consumercomplaints.com)

76. Role expectation – Doer

77. Personification – Educated middle class housewife

78. Attitude – Value for money

79. Age – middle class

81. Typical sponsorship - Cookery show (events around housewives and young women)

82. Adjectives – useful, convenientBrand as Symbol

83. Report Card FY 2010 Comparables *Figures in Rupees Crore, Assumed USD 1 = Rs 45

85. Removal of excise duty on products - cash flow improvements, since GST will be paid on sale/supply rather than on the product.

87. Train your staff – customer service becomes imperative especially with the threat of international retailers coming inEventually who will survive? Retailers with deep pocket Integrated and efficient back end supply chain National presence including in rural areas

89. Better trained staff

90. Effective communication to consumer needed (hafte ka sabse achcha din)!

91. Go lean (Aldi)Seamless supply chain infrastructure JV with Wincanton (specialist in logistical & dist. services), to effectively manage back-end operations Cutting costs Merged operational management and sourcing for Reliance Fresh, Reliance Hyper & Reliance Super stores. Consolidated back-office operations, pruning superfluous facilities Farm-to-fork model: If done efficiently, price to consumer will be only 10% above farm-gate prices! Not-To-Do Don’t lose focus from “neighborhood store” . Don’t dilute it by adding apparel in stand alone Reliance Fresh stores Private Labels “Profits earned from them are almost double than those from third-party brands” – COO, Shoppers’ Stop Reliance Fresh: 30% revenue from private labels. In future, also plans to sell its private label products (“dairy pure”, “reliance select”, “reliance value”) to small independent local stores

92. Learnings from Aldi - World Leaders Unique cart system to save labor time Carries only 1400 fast moving grocery items instead of 30,000! Less inventory, rent and electricity costs All products are placed in shipping boxes directly on the shelves to save labor time. Get your own bags – saves cost 95% private labels Website Promotions

93. Even Wal-Mart advertises! http://www.youtube.com/watch?v=QJHWJHYH_bk&feature=related

94. Simple and neat layouts

95. Minimal decoration

98. What competitors are doing? Positioning More. – Hamesha extra - international experience at Indian prices Big Bazaar – Issesastakuchnahi- all products at one place at cheaper prices – Modern Mandi Private Labels More. – Is pushing hard its private labels. Stocked 18% of a store in Vishakhapatnam with FMCG private products (general standard is 5%). Only private labels are being pushed by audio-video advertising. Currently 19% of revenue comes from private labels and this number is slated to increase to 30% by 2015 Big Bazaar – full assortment concept formats – private labels is just another choice for customers

99. The Detail in Retail Hype & Interest of Retail in India Is Big Retail making money? Casualties: Shubhiksha, Vishal Retail, Indiabulls! Spencers’ loss: Rs 300 crore in 2008-09. Is still losing Rs 12-13 crore a month. Downsizing (<1 million square feet now) Shoppers Stop’s loss: Rs 64 crore in 2008-09 ABG’s More Chain (2007) hopes to become positive in 2012-13 Pantaloon highly leveraged (Rs 4,000 crore of debt) Reliance Retail: loss of Rs 700 crore in 2008-09 & Rs 450 crore in 2009-10.

100. Value percentage of total retail space ( including unorganized)

101. Comparative Financial Measures Spencer’s Aditya Birla Retail Reliance Fresh All figures in Rupee Crore