PROJECT REPORT ON SALES PROMOTIONAL ACTIVITY OF SAFAL VS RELIANCE FRESH AMITY BUSINESS SCHOOL AUUP. SUBMITTED TO:- MS. VANDANA GUPTA SUBMITTED BY:- NEERAJ AGRAWAL [309D19] DUSHYANT SHAH [309D14] AAKRITI GARG [309D09] ANINDITA BAGCHI [309D04] SANKET KHURANA [309D57] RAHUL BADESRA [309D24] 1
ACKNOWLEDGEMENT Acknowledging the debt is not easy for us as we are indebted to so many people. We take this opportunity in expressing the fact that this project report is the result of incredible amount of encouragement, co-operation, will to help and moral support we received from others. We acknowledge our sincere gratitude to our faculty Ms. Vandana Gupta for her valuable guidelines, inspiration and support throughout the course of study. We are also thankful to Sales Manager of Safal & Reliance Fresh for helping us in getting information from various sources. We will fail in our duty if we forget to express our gratitude to well wishers, family and friends who have given emotional and intellectual support to us. We must not also fail to acknowledge the help of those numerous Safal and Reliance Fresh customers who spent a part of their busy schedule in being a part of our survey. 2
CERTIFICATE This is to certify that Project Report entitled SALES PROMOTION ACTIVITY OF SAFAL VS RELIANCE FRESH is submitted by below mentioned group is a genuine work and the matter embodied in the project is original to the best of our knowledge. The matter embodied in the project work has not been submitted for the award of any other degree, diploma or any other similar title or prizes to the best of our knowledge and belief. NEERAJ AGRAWAL [309D19] DUSHYANT SHAH [309D14] AAKRITI GARG [309D09] ANINDITA BAGCHI [309D04] SANKET KHURANA [309D57] RAHUL BADESRA [309D24] PLACE: NOIDA DATE: 07 TH SEPTEMBER 2009. 3
TABLE OF CONTENT S. NO. PARTICULARS PAGE NO. 1. INTRODUCTION 05 2. PRODUCT LINE 09 3. SALES PROMOTIONAL OFFERS 11 4. DISTRIBUTION CHANNEL 13 5. SHIFT IN WAY OF SHOPPING 16 6. SALES PROMOTION STRATEGY 17 7. CONCLUSION 19 8. QUERY / FEEDBACK 20 4
INTRODUCTION SAFAL Fruit and Vegetable Unit was set up in the year 1988 by National Dairy Development Board, an institute of national importance, a body corporate created by Government of India, with an objective to provide a direct link between fruit and vegetable growers and consumers. The unit has drawn on NDDB's three decades of dairy sector strengths in designing it's state of the art large and ultramodern central distribution facility to handle fresh and frozen fruit and vegetable. Presently it is a unit of Mother Dairy Foods Processing Ltd, a wholly owned company of Mother Dairy Fruit & Vegetable Ltd. In April 2000, Mother Dairy Fruit & Vegetable Ltd was created as a subsidiary of NDDB. The processed products of the unit are marketed with the brand name 'SAFAL' Unit complex is situated on 22 acres of land. It comprises a prefabricated building consisting of cold store chambers with different sets of temperature and humidity conditions suitable for storage of various fruit and vegetables. It has controlled atmosphere 5
chambers and ripening rooms, deep freeze rooms, preparation hall, processing hall, dispatch hall, reception, dispatch facilities etc. Material handling is done in specially designed plastic crates with the help of forklifts... The Unit also initiates and supports production enhancement activities at farm, improved pre and post harvest practices, efficient logistics from farm to the retail outlets, scientific quality assurance and education of grower, support staff and consumer. Production of quality product begins at the farm level where the grower, in cooperation with unit officials, work to cultivate and supply quality produce to the Unit. With the utmost care and dedication, the growers and Unit officials try to apply their professional knowledge and skills to give consumers the best return for their money. Standards are defined for each fruit and vegetable so as to link price to quality. Procurement specialists and trained field staff help the farmers in crop management and protection. Efforts are made to introduce new seed varieties and scientific methods of agriculture to increase the yield and improve the quality of produce. 279 specially designed modern retail outlets have been set up in and around Delhi to market fresh and frozen fruit and vegetables, directly to the consumers. Each shop caters to large number of customers, with a capacity to sell 1,600 kilos of fruit and vegetables a day. The shops are equipped with electronic machines that automatically weigh the produce and print item wise bills. Unit also manufactures products such as Jam, Squash, and Ketchup etc at its Ramgarh unit. Fruit & Vegetable Unit is IS/ISO-9002:1994 / DIN EN ISO 9002: 1994 & HACCP Certified Organization. 6
RELIANCE FRESH The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail. Reliance enjoys global leadership in its businesses; The Group exports products in excess of USD 15 billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum 7
Limited and Reliance Retail Limited) and Reliance Industrial Infrastructure Limited. Reliance Fresh is the Retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest Rs. 25000 Crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is RIL s Rs. 25,000 Crore venture and it plans to add more stores across different states, and eventually have a pan-india footprint by year 2011. The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. Besides, the stores would provide direct employment to 5 Lakh young Indians and indirect job opportunities to a million people, according to the company. The company also has plans to train students and housewives in customer care and quality services for part-time jobs. 8
PRODUCT LINE SAFAL 9
1. FRESH FRUITS like Green Apple, Strawberry, Kiwi, Cherry, etc 2. FRESH VEGETABLES like Cauliflower, Potato, Tomato, etc 3. IQF VEGETABLES like Frozen Peas, Frozen Aloo Tikki, etc 4. PROCESSED FOOD like Pickle, Squash, Jam, Ketchup, etc 5. ICE CREAMS of various flavours and types. 6. DAIRY PRODUCTS like Butter, Milk (Flavoured & Tetra Pack). 7. BAKERY like Bread, etc 8. EDIBLE OILS like vegetable oil, etc RELIANCE FRESH 1. FRESH FRUITS 2. FRESH VEGETABLES 3. FMCG PRODUCTS 4. DAIRY PRODUCTS 5. HOUSEHOLD PRODUCTS 6. GROCERIES 7. NON-FOOD ITEMS 10
8. READY TO EAT PRODUCTS 9. STAPLES MOST OF THE ABOVE PRODUCT LINE OF RELIANCE FRESH ARE SAME AS THAT OF SAFAL. SALES PROMOTIONAL OFFERS SAFAL 1. SAFAL GUVAVA NECTOR 200ML. OF MRP RS. 45/- OFFER PRICE RS. 30/- ONLY. 2. ON PURCHASE OF TWO SAFAL GUVAVA NECTOR GET ONE FREE. 3. ON SAFAL MANGO & GUVAVA NECTOR (FRUIT JUICE) 1 LITRE PACK GET RS. 25/- OFF ON MRP. 4. ON SAFAL MIXED FRUIT JUICE 1 LITRE PACK GET RS. 17/- OFF ON MRP. 11
5. ON SAFAL FROZEN PEAS 500GM. PACK GET 100GM. FROZEN PEAS FREE OR ANY FRUIT JUICE OF 200ML. FREE. 6. ON PURCHASE OF SAFAL JAM 500GM., PICKLE, KETCHUP & RICE GET 200GM. SAFAL FROZEN PEAS FREE. 7. ON PURCHASE OF TWO MOTHER DAIRY MISRTI DAHI OF MRP RS. 8/- GET A BOWL FREE. 8. ON PURCHASE OF MOTHER DAIRY ICE-CREAM FAMILY PACK FROM 250ML. TO 1 LITRE GET 50% FREE ON VANILLA FLAVOUR, 25% FREE ON STRAWBERRY & CHOCO CHIPS FLAVOURS RESPECTIVELY. LAST SEASON OFFERS WERE FROM 15 TH JULY TO 31 ST JULY 2009. AND DAILY VARIOUS SALES PROMOTIONAL OFFERS ARE BEING LAUNCHED ON FRESH FRUITS & VEGETABLES. RELIANCE FRESH THERE IS A VAST RANGE OF PRODUCTS AVAILABLE IN RELIANCE FRESH IN COMPARISION TO SAFAL. SO, THE SALES PROMOTIONAL OFFERS AVAILABLE HERE ARE 24 X 7 X 365. MAINLY THE OFFERS AVAILABLE HERE IS ON STAPLES, FMCG PRODUCTS & GROCERY ITEMS. WHEREAS OFFERS ON FRESH FRUITS & VEGETABLES ARE APPLICABLE MAINLY ON SEASONAL PRODUCTS DURINGS IT S SEASON. RELIANCE FRESH ALSO PROVIDES FREE PRODUCTS, DISCOUNTS AND OFFERS ON PURCHASE OF VARIOUS PRODUCTS. 12
FOR EXAMPLE:- ON PURSHASE OF 5 LITRE SAFFOLA GROUNDNUT OIL GET 1 KG. SUGAR FREE. DISTRIBUTION CHANNEL SAFAL 13
SAFAL IS HAVING A SMALL PRODUCT WIDTH, WHICH HELPS THE MANAGEMENT TO MANAGE THE DISTRIBUTION IN A EASE WAY. THEY HAVE THEIR OWN FARMS FROM WHERE THEY BRING FRESH VEGETABLE & FRUITS, AND OTHER PRODUCTS ARE BEING MANUFACTURED BY THEM AT THEIR UNITS. THEN THEY STORE ALL THEIR PRODUCTS IN THEIR OWN COLD STORAGE WAREHOUSES OR DEPOTS. THEN THEY SUPPLY IT TO THEIR REGIONAL OFFICES FROM WHERE THE PRODUCTS ARE DESTINED TO THEIR RESPECTIVE STORES OR OUTLETS. THE REGIONAL OFFICE OF SAFAL OF DELHI AND N.C.R. IS LOCATED IN RANJITNAGAR & PAPATGANJ. The 100% export oriented ultra modern Fruit Processing Plant was established in 1996 at Mumbai, capitalizing NDDB's food processing strength. All the equipments and technical know-how has been supplied by Sasib-Manzini Cosmaco SPA of Italy. The plant is located in the heart of India's finest tropical fruit growing region that produces finest quality mango, banana, guava, papaya, grapes and tomato in abundance.the ultra modern mechanized fruit processing plant has an annual processing capacity of 15000 MTS. There are twelve ripening chambers having a total capacity of 420 MT. 14
The plant also have a facility to pack fruit pulp in 3.1 KG sterilized and hermetically sealed aluminum cans @ 1 MT / hr and a plat freezer to instantly block pulp @ 10 MT / hr. The frozen products can be shrink packed before dispatch in cartons. Other facilities in the plant include two tetra pack-filling machines for packing fruit drinks. The processing facility has obtained US Food & Drug Administration registration. HACCP quality system is followed at every stage. The unit is ISO9002 certified. The products are Kosher certified. Mumbai unit is a registered member of SGF, Europe. The fruit processing plant at Mumbai is engaged to process and refine products specially aseptic & frozen purees and concentrates from various varieties of finest tropical fruits such as mango, banana, papaya etc. These products can be packed in a plethora of bulk and small quantities in a wide range of packing materials. Fruit drinks in Tetrapacks are the other popular consumer products. The unit has established an office at Rotterdam in Netherlands to develop market at Europe, America and Asia. The unit enjoys active presence with all its products in Europe, USA, Canada, Australia, Middle East, Japan, Singapore and Hongkong. The unit also ensure its presence at major International Food/Trade fairs. RELIANCE FRESH FARMERS CATEGOR Y FARMERS CATEGOR Y FARMERS CATEGOR Y 15
Farmers Own Transportation COLLECTIO N POINT/UNI T Farmers Own Transportation RELIANCE FRESH OUTLETS RF Reliance own Logistics RELIANCE OWN PROCESSIN LOGISTICS G UNIT/POINT RELIANCE FRESH OUTLETS Reliance own Logistics RF RELIANCE FRESH OUTLETS HENCE, BY THE ABOVE DIAGRAM WE CAN UNDERSTAND HOW RELIANCE FRESH PURCHASES THE FRESH FRUITS & VEGETABLES FROM FARMERS AND THEN TRANSPORATED TO ITS OUTLETS. SHIFT IN WAY OF SHOPPING 16
NOWADAYS, PEOPLE ARE CHANGING THEIR WAY OF SHOPPING OF THEIR PRODUCTS. THEY WANT BENEFIT IN EVERY THING THEY BUY. SO, THERE ARE MANY RETAIL STORE ARE WORKING IN ORDER TO FULFILL THEIR WISHES AND DEMANDS. THEY PROVIDE ALL THE PRODUCTS AT ONE PLACE, WHICH SAVES THE TIME AS WELL AS CUSTOMERS GET THE LUXURY OF BUYING IN CLEAN AND AIR CONDITIONED PLACE, INSTEAD OF DIRTY, STINKING & CROWDED PLACE. TRADITIONAL MODEL MODERN MODEL SALES PROMOTIONAL STRATEGY SAFAL 17
Sales Promotional Activity of Safal is very easy and effective in comparision to that of Reliance Fresh because they have limited number of product, having a nice brand name. In their store or outlet they only keep the products which they produce, which is a big advantage of them over Reliance Fresh. They promote the entire product according to the costing they incure in producing them. They keep the FREE 100GM. SAFAL FROZEN PEAS OFFER on various products so that people will taste their product and will switch to it later during off season. Likewise, they play a fair game and also promote their own product in their own store. RELIANCE FRESH Reliance Fresh also had an effective Sales Promotional Strategy. They provide offers and schemes on the products whose profit margin is more in comparision to other daily products. They also have an advantage over Safal is they have a wide range of products which customers can easily get like grocery, staples, etc They give Oil Free on Big Bottle of Shampoo, Buy Two Get One Free, etc... are few of the nice schemes being implemented by the Sales Managers of the Reliance Fresh over their various stores. They also take Feedback of customers to improve their strategy, they also issue Loyalty Card to their regular customer to avail them better service with extra offers and schemes. This method has helped them a lot in increasing the Sales of the store. SIMILARITIES IN SALES PROMOTIONAL ACTIVITIES OF SAFAL AND RELIANCE FRESH 18
They conduct meeting with the Managers of the stores and outlets, so that they can listen to their views, problems and possible solutions. They also conduct Market Research before launching any product so that they would know the views and suggestions. They keep CRM s to improve the relationship between company and customers. They treat customers warmly and avail them every service that they possibly can. CONCLUSION 19
Safal is having a less cost efficient store whereas Reliance Fresh is fully air conditioned shop which incures a huge running cost. Safal concentrates on opening the store in between of societies where women can easily come and shop with full safety, and Reliance Fresh are opened in lavish places as well as most of the stores are located on the main road where there is lot of traffic which reduces the freedom of women to shop freely and with full safety. Safal stores are economic and small, whereas Reliance Fresh have a big and high expenditure stores. These are the few reasons and points where Safal have a big advantage over Reliance Fresh. Currently, Reliance Fresh is incurring more loss than of Safal. So, they should concentrate on their cost cutting and increase the Sales by introducing more offers. Their main motive is to reduce as much cost possible, so that they can earn some profit after cutting every cost they bear in their outlets. 20
ANY QUERY..? OR FEEDBACK THANK 21
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