Differentiators

Spencers has chosen to differentiate by establishing itself as the preferred shopping destination for
young customers looking for a range of quality products that allows them to indulge in a global
lifestyle, yet at affordable prices. Its brand image of - Makes Fine Living Affordable stands -
testimony to this philosophy. From daily to weekly to specialty shopping, Spencers strives to fulfill
every need and provide maximum convenience.
Specifically, the following distinguish the Spencers brand and create a memorable all-encompassing
shopping experience for its shoppers:

Products Spencers offers the widest assortment of food and lifestyle (fashion, home,
entertainment), dealing both, with brands and private labels. It has different special sections within
its hypermarkets to delight the customer
Quality Quality is a major reason why Spencers is well-regard by its shoppers. Spencers lays a
huge emphasis on all-round quality in products, stores, service standards, and customer engagement
programs. Its Quality since 1863 tagline has stood the test of time.
Heritage Spencers is Indias oldest retailer tracing its roots back to1863. The brand has many
firsts to its credits.
Innovations/Specialty In Spencers hypermarkets, the shopper can find specialty sections such as
a live bakery, the patisserie, a nuts counter, a dedicated wine & liquor section, and Epicuisine.
Promotions Spencers seek to offer the right products at the right time at the right price, with
promotions carefully designed to suit the needs and wants of the consumers monthly, weekly and
daily shopping basket.
Brand Imagery Spencers stores have contemporary and international interiors, and it's extensively
trained staff strive to make customers feel at home while they shop, with a welcoming and trusted
attitude.
- See more at: http://www.spencersretail.com/differentiators#sthash.CIC6CvDu.dpuf
Innovations

Spencers has constantly helped reshape the retail landscape in India, introducing a host of
innovations to make shopping even more convenient and enjoyable for the consumer.
Its a common perception that all supermarkets and hypermarkets sell the same things. However,
Spencers proves that wrong. While it does stock a lot of what others stock, it puts in a great deal of
effort to stock a unique range of products as well.

Spencers Gourmet Centre: Run by a food scientist cum Cordon Bleu Chef, the food innovation
wing researches world cuisines and develops recipes for a wide range of popular and trendsetting
dishes. These form the basis for developing its own range of products, which includes delicious
cookies, sauces, pickles, juices and jams.
Spencer's Patisserie: The goodies from the patisserie are freshly baked daily in the live bakeries
situated within the hypermarkets. The offerings include specialty breads, bakery and confectionary
items, crafted from Indian and International recipes. The selection includes specialty breads such as
the Italian Focaccia, the French Baguette, the Mexican Spicy Salsa Picante Bread, the Indian
Masala Bread, and the regular white, multigrain, wholewheat and masala breads. The bakery also
churns out hot puffs, dry fruit cakes, assorted cookies , cakes and pastries.
Spencers Gourmet: A special section in its hypermarkets that retails over 4000 products from the
finest locales around the world, the Spencers Gourmet section is the perfect spot for the well-
travelled food connoisseur. Its the best place to buy international ingredients, be it for Thai,
Chinese, Indonesian, American, Chilean, Argentinian, Italian, French, Spanish, Sri Lankan, British
or Japanese dishes.
Wine & Spirits: Wine ignoramuses or aficionados, this section caters to both, with a wide range of
wines expertly selected from as many as 181 countries. Spencers was, in fact, the first Indian
retailer to offer a selection of Wine & Spirits in its stores, and the first to present an in-store wine
and cheese tasting experience to shoppers.
Fish & Meat: Spencers has a dedicated space to sell fresh non-vegetarian items, be it the finest pre-
packaged cold cuts or fresh seafood right from live tanks in-store.
Epicuisine: Spencers recently launched a new section called Epicuisine, which serves ready to eat
dishes and ready to drink juices, some from its very own live in-store kitchen, and some packaged
from popular restaurants and caterers in the geography.
Edutainment Booklets: Want to serve wine but not sure how? Want a recipe for preparing cheese
fondue? Curious to know why organic food is supposed to be better for you? Pick up a booklet and
find out. From the story of olive oil to the origins of cocktails, the Spencers edutainment booklets
tell you about the products on offer and how to use them.
Live Kitchens: Live Counters with Master Chefs preparing gourmet delights are always popular at
buffets. Spencers brought the concept to its stores in the form of the Spencers Chef Corner, a first-
of-its-kind in-store experience that involved customers. From Salads to Sushi, Pastas to Satays to
Cheese, the Spencers Chef Corner gives customers an opportunity to learn more about their
favourite world cuisines.
- See more at: http://www.spencersretail.com/innovations-0#sthash.KvLzozO6.dpuf
Ambience

Throughout its long history, Spencers has been a recognized and respected player in the Indian
grocery business, and is synonymous with quality goods and services, trusted by Indias exploding
population of the upwardly mobile middle class.
Spencers has continually helped reshape the retail landscape in India, introducing a host of
innovations to make shopping an even more convenient and enjoyable activity for the consumer, by
creating an ambience that the consumer appreciates.
Design Philosophy
Spencers designs its stores so as to deliver its brand promise in a sophisticated manner, thereby
differentiating itself from competition. Over the years, Spencers has built a loyal customer base and a
strong brand equity because of this.
Central to the retail design strategy is its unique brand positioning of Makes Fine Living
Affordable, derived from its consumers transition from a price-conscious purchaser to a global-
minded, well-travelled citizen of the world who is looking out for authentic international flavors and
experiences. Spencers has consequently evolved from being just another grocery retailer to being a
world-class hypermarket retailer.
Its philosophy translates to every element in the store:
Storefront Design The store entrance resembles that of an entrance arch, leading in the shopper to
a world that is welcoming and exciting
Interior Design To ensure that shoppers enjoy a warm, friendly ambience with an upscale look
and feel, the interiors are carefully chosen based upon the specific location of the store. The stores
have color-corrected lighting, carefully selected veneers and textures that complement the color
palette of the brand, thereby creating a fresh, cheerful, and expansive feel.
Shopfit Design The emphasis is on attractive, space-efficient, and low-maintenance presentation
of modern, international goods alongside local products. The stores strive to drive product
experiences through hubs.
Graphics & Signage - Shopping at Spencers is a visual treat, enhanced by Heritage boards that
tell the Spencers history, curved signage featuring the signature Makes Fine Living Affordable
tagline, and category-specific color arches suspended over zones and departments to provide visual
relief and act as navigational aids.

Visual Merchandising Initiatives
At Spencers, visual merchandising is taken very seriously, with the objective of using theatre and
edutainment to depict Spencers as a retailer which Makes Fine Living Affordable.
This is evident in the hotspots and focal points dispersed around the store, which carry thematic
product displays to welcome shoppers and give them the opportunity to absorb the ambience that
constitutes a fine living experience, before continuing their journey of exploration through the
stores.
It also extends to the presentation of merchandise in a store. Category-specific color-coding allows
easy navigation, while visual metaphors of farm-fresh and Fine Living drive home its brand
promise. Models of seafood, meats, breads, and cheese highlight the fish &meat and delicatessen
section.
- See more at: http://www.spencersretail.com/ambience#sthash.jmacr3cs.dpuf



RIL launches first Reliance Fresh retail store in
Hyderabad
30 October 2006
Just five months after Mukesh Ambani spelt out his retail plans, Reliance's retail foray
has moved at breakneck speed to open its first store in its fresh food format- Reliance
Fresh in Hyderabad. CNBC-TV18 takes a look at the new store. Reliance's Rs25,000
crore retail foray is being pitched as a friendly neighbourhood store. Dominated by
fresh produce, dairy and bread, Reliance Fresh is a compact 2000 sq ft store. Gunender
Kapur, president and CEO, Foods Business, RIL, says, "In this format the focus in on
fresh fruits and veggies and staple products that consumers buy very frequently from
the shop." The efficiency of Reliance's much talked about farm to folk supply chain is
being put to test with this retail launch. This particular store is directly procuring from
the farmers of Andhra Pradesh, Karnataka and Tamil Nadu giving it a quality and
pricing advantage, something that Reliance hopes will fuel its success. Private labels
across multiple categories are expected to drive Reliance's retail formats. And with this
new store comes the company's food brand 'Reliance Select'. Kapur further adds, "At this
point of time we have displayed in stores private labels in staples like rice, dhal, spices etc. so
we have got a wide range of categories in which Reliance Select will be available, and in
fullness of time we will get into other categories." Next in line is Fresh Plus Reliance's
second retail format likely to be launched next month that will also house a pharmacy, and
section for apparel and consumer durables. And six months later, Reliance hopes to roll out
its hypermarket format 75,000 square feet of multiple brands of apparel, FMCG, groceries
and white goods. For now, the spotlight remains on Reliance Fresh 40 similar stores are
being planned in Hyderabad, 11 of which will open their doors to customers on November 3.
After ITC's Choupal Fresh and Landmark's Max Retail stores, Reliance joins the list of
retailers who chose Hyderabad to test waters. The city offers real estate at a price that doesn't
quite pinch
MORE INFORMATION
Reliance Industries Limited (RIL) is India's largest private sector
company on all major financial parameters with turnover of Rs. 73,164 crore
(US $ 16.7 billion), cash profit of Rs. 12,087 crore (US $ 2.8 billion), net profit
of Rs. 7,572 crore (US $ 1.7 billion), net worth of Rs. 40,403 crore (US $ 9.2
billion), and total assets of Rs. 80,586 crore (US $ 18.4 billion). RIL is the first
and only private sector from India to feature in 2005 Fortune Global 500 list
of 'World's Largest Corporations' and ranks amongst the world's Top 200
companies in terms of profits. Reliance in now putting up a completely export
oriented unit with 30 MMPTA capacity under Special Economic Zone (SEZ)
at Jamnagar. Construction will commence very shortly and the project is
schedule to go into operation by March 2008. RIL group is about to establish
yet another industrial landmark by putting up the world's largest grass root
refinery totally dedicated for exports with an outlay of over Rs. 27,000 crores.
RIL group, as a corporate citizen, has always believed in creating
"employability" apart from providing employment. Towards this, it is process
of establishing a World Class Craft Training Institute This world class facility
will have latest generation equipments and machineries imported from best of
class manufacturers and will be located at Jamnagar. The Scheme We will
bring in thousands of youngsters - skilled / semi skilled / partially skilled /
unskilled from all over the country and provided temporary barracks - labour
accommodation with full facilities through contractors. The institute will train
them in respective trades with proper process for "Certification". Current
estimate warrants training of (assuming 50% will be Certified): Welders -
8000, Carpenters - 5000, Pipe Fitters - 5000, Grinders - 5500, Mill Wright
Fitters - 2000 Immediately on certification, they will be absorbed by our
contractors and be deployed on our world scale project at Jamnagar for a
period of approx. of 2 years. Thereafter, Reliance is confident that these skills,
which are badly required, will have an unlimited market and therefore, offer
a great earning future prospect to these youngsters around the globe.

Reliance Industries on Sunday launched its first retail
format called Reliance Fresh in Hyderabad. Spread
over 2,000-5,000 sq ft, 11 such Reliance Fresh
neighbourhood convenience stores will come up in the
city beginning November 3.

These stores will sell fresh fruit and vegetables besides
staples (dal, atta, rice) as well the companys in-house
brand, Reliance Select.

RIL is targeting not only the households but also
streetside vegetable sellers. According to sources, RIL
is setting up Ranger Farms outlets that will
specifically service streetside vegetable sellers who can
stock up on fresh farm produce.

The Ranger outlets will open at 2 a.m. and continue
selling produce to vendors till 9 a.m. The Ranger
format is something in the lines of German major
Metro Cash & Carrys operations in India. But while
Metro targets larger retailers such as restaurant chains
and bulk consumers, RIL is expected to forge a
relationship with streetside vegetable sellers through
the Ranger concept. It is not yet clear whether separate
outlets will be opened for Ranger Farm or the existing
Fresh outlets will function as Farms by the night.

Guninder Kapoor, president and CEO of Food Business
at RIL, says the Fresh stores at Hyderabad are part of a
pilot project. This is a pilot project which will help us
understand customer needs. The pilot for this format
will be taken to many other cities over the next few
months.

Next on the companys list are bigger cities, including
Delhi and Mumbai.

RIL has already said that it will invest close to Rs
25,000 crore over the next five years in the retail
business. The company plans to establish 4,000 retail
outlets across various formats by then, and is eyeing
sales of Rs 1,00,000 crore over the five-year period
from the retail business.

Besides Reliance Fresh, the company also plans to
launch larger format stores called Feel Fresh Plus
which will be spread over 10,000-15,000 sq ft. The
Fresh Plus stores will stock fruit and vegetables as well
as apparel, consumer electronics, FMCG items and
even medicines.

From Hyderabad, these stores will travel to Mumbai
and Delhi where Reliance has identified up to 80
locations each.

But even as the retail debut kicks off with fruit and
vegetables, it seems the company is doing a rethink on
whether to get into the larger formats such as
hypermarkets and
supermarkets. These two formats require over 1 lakh sq
ft of space and may not come up at prime city
locations. Instead, Reliance is contemplating tapping
alterative sites such as the SEZs for opening
hypermarkets.

The retail rush
11 Reliance Fresh neighbourhood convenience stores
will be launched first in Hyderabad
These stores will be set up soon in Mumbai and Delhi
where Reliance has identified up to 80 locations each
RIL is also setting up Ranger Farms outlets that will
specifically service vegetable vendors
Ranger outlets will open at 2 a.m. and continue selling
produce to vendors till 9 a.m.
Company plans to establish 4,000 retail outlets across
various formats in the countryNew
Delhi: Reliance Retail
is likely to open its first fresh food store in Delhi
and the 100th across the country this week after
spending about Rs 2,000 crore on real estate
acquisitions in the national capital. "The 100th
store will be opened soon possibly in Delhi or
Pune," PTI quoted a Reliance Retail official, who
declined to elaborate, as saying. Since its launch
in Hyderabad in November last year, the
company has so far opened 96 Reliance Fresh
stores, spread over a total carpet area of
2,50,000 sq ft, across cities. Reliance Retail,
whose parent Reliance Industries has pledged an
investment of Rs 25,000 crore by 2012 in the
retail business, targets a revenue of Rs 90,000
crore from its various formats like hypermarkets,
supermarkets and speciality stores by 2010. So
far, the company has unveiled only its fresh food
stores, which according to industry sources have
been averaging a sale of Rs 3.5 to Rs 4 lakh a
day. The national capital region alone has 24
stores that account for more than a quarter of
the total fresh food business, sources said,
adding that average sale in NCR was much above
the national numbers at Rs 5 lakh a day and the
average billing for a customer was Rs 1,600 a
day. Reliance Fresh stores sell farm fresh
products like vegetables and fruits and dairy
products, besides frozen foods, groceries and
cutlery. Sources said the company has spruced
up back-end operations to meet the high
demand, besides stepping up quality controls
and checks.


SUPPLY CHAIN & DISTRIBUTION

Operation Management

INTRODUCTION The traditional model of vegetable retailing in India involved vegetables being sold in small
stores on the roadside, and there were no formal rules regarding weighing, bargaining and quality issues, let alone
cold storage and sophisticated supply chains. Produce travelled slowly and inefficiently through a series of
intermediaries before reaching the hands of customers, suffering mark-ups, wastages and quality losses along the way.
Reliance Fresh marketing model operates on affordability and a hygienic ambience along with a good shopping
experience, said Mukesh Ambani, the Chairman of RIL. Reliance Fresh intended to bring high quality fresh food to
the customers at an affordable price. Reliance Fresh also wanted to establish a benchmark of hygiene and quality in
their sales. It thus sought to provide the consumer affordable and quality produce in a congenial and pleasing
environment and enforced stringent quality and hygiene guidelines which would help it bring high value to the
consumer.

Operations Management Project Report PGP14/Group 1

The Rationale behind the Supply Chain Strategy adopted by Reliance Fresh as given by Reliance officials: We will
always buy from the farmer, almost never from the mandi (wholesalers), said a group official. For example, the leafy
vegetables, aubergines, tomatoes and green chillies in the one of the outlets in Mumbai were sourced directly from
farmers in nearby districts. This in effect got translated into lower prices by at least 15% to 20%. We'll be very
affordable and competitive in the market, but we arent playing a price game here. The full effort is to deliver value to
the customer, said Chief Executive, Customer Operations, KS Venugopal. Produce from the farmers came to
Reliance's city distribution centre, which connected two very different...

Company overview:

Reliance Fresh is the convenience store format which forms part of the retail business 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 company already has in excess of 560 reliance fresh outlets across the country. These stores sell
fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products. A typical Reliance Fresh store is
approximately 3000-4000 square feet and caters to a catchment area of 23 km. Reliance Fresh was the first foray into
retailing by the $25 billion behemoth known as Reliance Industries Limited.

There were three basic reasons for Reliance Industries Limited (RIL) choosing foods and vegetables for entering into
retailing

First, it wanted to go after the very core of the great Indian retail Opportunity. Food accounted for over two-thirds of
the $200 billion Indian Retail market and yet, it had seen hardly any penetration by modern retail so far.

Second, its aim was to build a high-profitability business and food was perhaps The best place to start.

Third, the grossly inefficient food supply chain provided a well resourced and well managed organization like RIL
with an opportunity to think of amending the flaws which would also make business sense. In the traditional supply
chain in India, there were several intermediaries, who added their respective profit margin to the cost

Besides, there was huge wastage in transit. This offered potential for savings and profits and Reliance Fresh was a
Step in that direction.

Reliance fresh was founded on 30th October 2006 having its head quarter in Mumbai.

Vision:
vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers,
Reliance Fresh, a subsidiary of RIL, was set up to lead Reliance Groups foray into organized retail. Since its...