Presented by:

Akash Sethi 081106

Akhil Goyal 081107
Akriti Agrawal 081108
Alka Jha 081110
Amit Shringarpure 081111
Agenda
Merchandising
Retail Mix
Importance of retail mix
Retail Mix: Reliance Fresh v/s more.
Conclusion
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 .
 CHOOSING THE RETAIL MIX

Product

Personnel Promotion

Target
Market

Presentation Place

Price
Importance of retail mix

 Placing products at the right place gives them higher visibility

 Good customer service is very important in order to retain a customer

 Store location is an essential factor as if the store is at an inconvenient

location, it may reduce the number of customers visiting it

 Good promotion and pricing of products increases the volume of sales
PRESENTATION (COMMUNICATION) OF
THE RETAIL STORE

Employee Type & Density

Merchandise Type & Density

Fixture Type & Density

Factors Sound
in
Creating Odors
Store’s
Atmosphere Visual Factors
PERSONNEL OF THE RETAIL STORE

How many

How knowledgeable

How helpful / invasive

Factors
Fit the image of the product
in
Personnel
decisions Good personal sellers
RETAILING STRATEGY-PRICING

 How much mark-up?

 Allow for Shrinkage and discounting
OR
 Use Everyday Low Pricing

 Benchmark 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?”
RETAILING STRATEGY - LOCATION

 Central Business District

• Parasites
Freestanding
 Regional Shopping Centers Store
• Anchor Stores
Shopping
 Strip Location Center Tenant
• Destination stores

• Power centers Mall Tenant

 Multichannel Retailers
Important terms
 Variety: It represents the number of merchandise categories a retailer

offers. It is also referred to as breadth of merchandise

 Assortment: It is the number of different items in a merchandise category

 SKU (stock keeping unit): It is each different item of merchandise

Breadth versus depth of merchandise lines
Retail Mix

Reliance Fresh

v/s

More
Reliance Fresh
 Reliance Retail Limited (RRL), a subsidiary of the Indian conglomerate

Retail Industries Limited, launched its first convenience store in November

2006.
 RRL has grown rapidly and operates over 900 stores across 80 cities in 14

States, which include over 750 Reliance Fresh stores.

 Reliance Fresh is the convenience store format which forms part of the

retail business of Reliance Industries of India .

 It is positioned as a pure play super market focusing on categories like food,

FMCG, home, consumer durables, IT and wellness , with food accounting

for the bulk of the business.
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

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:

 BOGO

 BXGY

 Rebates and Premiums focusing on bill value

 Audio visual tools been employed

Product
 Strictly vegetarian

 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

 Presentation
 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

 Pricing
 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”
Personnel
 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

 Amiable staff but poorly informed

 Private labels
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 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 branded products of FMCG companies.
more.
 Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD

28 billion Corporation. The Company ventured into food and grocery retail
sector in 2007 with the acquisition of a south based supermarket chain.
 more. supermarkets cater to the daily, weekly and monthly shopping needs

of consumers.
 Currently the group has a national presence

 The store, has been aptly named more. As it promises to change the

everyday shopping experience for consumers

Place
 Generally more. is located in a series of conveniently located

neighbourhood supermarkets
 Currently it has 18 stores in Ahmedabad

 Located in areas of high footfalls like movie theatres, shopping malls,

restaurants, etc.
Promotion
 Large size promotional offer banner at the entrance

 Special offers on private labels displayed near the entrance

 Audio – visual promotion of private label products

 New concept:

 Color Slips based on product pricing

 Introduction of $ store concept

 Promotional schemes combined with vodafone

 Mobile store kiosk - parasite

 Attractive offer names like ‘July mein Dhulai’

Product
 The product offerings of the more supermarkets include a wide range across

fresh fruits and vegetables, groceries, personal care, home care, general
merchandise and a basic range of apparels
 Hypermarket stores also have a strong emphasis on general merchandise

and apparels
 more. also has a range of products from its own stable available across

value, premium and select ranges

 Variety is a promise delivered across the store
Price
 Private label products were marked down by a substantial margin

 Intelligent pricing strategies for private labels were defined so that

customers could not compare with usual goods

 promises best in market pricing. Linking up directly with farmers to source

fresh fruits, vegetables and staples ensure great quality as well as great
price
 the membership program Clubmore., which provides convenience,

customised shopping solutions and savings

Presentation
 bright and clean stores, at convenient locations with layouts that allow ease

of navigation

 The product display is well organised and facilitates ease of choice

 The stores have been designed by Fitch, the leading international retail

design firm

 Separate entry and exit points

 Higher air conditioning levels at the front end of the store

Personnel
 2 staff shifts: 7am to 4pm & 1pm to 10:30pm

 Staff density higher in first shift = 11 as compared to 20 in the second shift

 Co operative and well informed

 Staff uniform- orange and black

Private Label
 Aditya Birla ‘More’ strategy to offer budget and high value private label

offerings under brand names Value, Select and Premium ensure that more
 Product name: Feasters

 Packaging: very similar to the branded counterpart

 Placement: alongside the branded counterpart to confuse the customer

 Pricing: significant price difference

 Promotion: color slips promotions strategized to indulge customer in private

label purchase
 Audio video promotion done only for private labels
Conclusion
 Both the retail giants do not vary much in their offerings and image

 It may be possible in the near future that they are left with no differentiation

but still create a loyal customer base for themselves

 According to analysts, in the long run, this would develop niche markets for

them