Prateek(76) Rishab Singh Kohli (83) Surbhi Gupta (106) Surbhi Gupta (107)

Introduction of Food Sector

The food sector in India is expected to witness a 50 per cent increase in investments in 2012 to about Rs. 41572 million. No. of outlets = 12-15 million Food Retail (Modern and Traditional)= 270 billion (60% of total retail sales) Total revenue of food industry = 6.3 % of GDP ( rank 5th in the world ) Indian food industry :Organised= 25% Unorganised=42% Small scale industry =33%. 40% growth expected by 2015 .

Reliance Profile
Type Industry Founded Headquarters Owner Website Area Turnover Total no of stores Tag line Supermarket Retail 30 October 2006 Mumbai, (India) Mukesh Ambani www.ril.com 2000-4000 sq. ft 3200 crore (2010-2011) 920 ( 80 cities -14 states ) Aapka fresh apke pados me

Product range
Fresh fruits Vegetables Chocolates Confectionaries House hold products Toiletry items Spices and dry food Freeze items like butter, ice cream etc.

Competitors
Big Apple Food Bazaar More Easy Day Safal Sabka Bazaar Fair Price

Pest analysis of Food Industry

Political Income tax rebate allowed.
Policy initiatives have been taken from time to time to promote growth .

Economic
Food industry is growing at 13% despite of economic slowdown.
Indias share in global food trade is increasing from 1.5% to 3%.

Widening the R&D base in food processing segment.

Setting up analytical and testing laboratories for active participation in the laying down of food standards.

Declared priority sector in 1999.

It is expected to witness 50% increase in investment in 2012(investment in infrastructure of retail industry).

Social Health consciousness.

Rapid transformation in the lifestyle of Indians. Shift in product and service preferences. People refers to shop in local stores with reasonable prices.

Technological Shortage of Cold Chain Storage.

Number of new technologies have emerged both in processing and packaging. The computerization of the various operations. The job of preventing theft, promoting the store's goods and creating a better shopping atmosphere.

SWOT analysis of Reliance Fresh

Strength
Good financial position. Private label sales (own products) Contract farming Network- 1600 channels in villages.

Weakness Poor supply chain

No Parking Prime locations Untrained staff Multi - format

Opportunity Growing retail market.

Increasing buying power of Indian consumer. Many untapped markets in India.

Threat Low price competition

Government policy Increase in operating cost

TOWS Matrix of Reliance Fresh

Strength TOWS
1. Good financial position. 2. Backward integration. 3. Horizontal integration.

Weakness
1. Multi- formats. 2. Prime locations.

Opportunity
1. Untapped market. 2. Increasing buying power of people.

SO
1. Good financial position. 2. Horizontal integration.

WO
1. Multi- formats. 2. More sales.

Threat
1. Increasing operating cost. 2. Low price competition.

ST
1. Backward integration. 2. Good financial position.

WT
1. 1. Increasing operating cost. 2. Low price competition.

BCG Matrix of Reliance Fresh

Perishable products ( fruits and vegetables) Stars ( high growth, high market share) Cash Cow ( low growth, high market share) Ready-to-eat category ( chips, chocolates, etc.)

Dogs ( low growth, low market share) Limited other brand products.

Question Mark ( high growth, low market share) Non- FMCG Section ( clothes, utensils, toiletries, etc.)

Value chain model of Reliance fresh

Current Strategies followed

A convenience store for providing customers with a variety of fresh fruits, vegetables, staple foods and other products in a world-class ambience. Partnered farmers by following a farm-to-folk strategy to ensure fresh fruits and vegetables at affordable prices. They have consciously segregated its vegetarian and nonvegetarian items by having a separate brand with a separate distribution centre. They are able to provide their merchandise at cheaper rates than any other retailer due to reduction in distribution cost. Providing concessional long term loan to farmers.

Strategies
Product strategy
Good quality. Products of its own Home delivery

Pricing strategy
Discount Wide price range of each item Credit card acceptance Competitive pricing

Distribution strategy
Up to mark inventory Target urban cities Sourcing out requirements.

Promotional strategy
Advertising Festive season special offers Membership cards Organizing events Providing gifts

FUTURE PLANS
Plans to add more store across different geographic by 2013. Bring new format of food and caf. Unique value proposition for each customer segment. Thrust on cost-effective retail network of high quality. Minimum logistics cost to gain competitive edge. Invest in innovation. Build sustainable growth.

Suggestions
Space to be created for billing queue formation. Fruits and vegetables should be of good quality and rotten should be removed from time to time from shelf. Parking area should be provided for customer convenience. Beverages, cheese, butter, milk, etc. should be arranged in visually appealing manner.