Advantages and disadvantages of Private labels for Reliance Retail Ltd

Advantages and disadvantages of occult labels for assurance Retail LtdIndian sell sector is nurtured at US$ 353 billion in 2009 2010 and is projected to go on US$ 543.2 billion by 2014. The Indian sell sector is the second-largest employer after agriculture IBEF Retail (2010), and this sector is primarily much unorganized / traditional. Organized retail in India is still in the nascent stage with tot eachy 5% penetration, The retailer, Ernst Young, Jan (2009) and this signifies the immense potential this holds for growth. Traditional Kirana stores (small mom-and-pop general stores) be now being replaced by large format stores like Hypermarkets, Supermarkets and former(a) Specialty stores and these shifts is mainly due to the increased consumer expectations increase in the consumer class and will grow nearly from 50 million at present to 583 million by 2025.As discussed earlier Indian retail sector is highly unorganized and the access of modern retail is very negligible (5% penetration). And with the relaxation of Government policies pertaining to retail sector and with more than addition of retail space every year will definitely lift the growth of modern / organized retail in India. And even the mindsets of Indian consumers are changing they are now very demanding in terms of value and a shift from low price goods to more focus on convenience and all this with a superior shopping experience, also they are more brand conscious these days. IBEF Retail, (2010)There are only a handful of organized key retailers in the Indian retail sectorGroup breed BrandsTataLandmark(books and music), Croma( electronics), World of Titan (watches), Tanishq(jewellery), Titan Eye+ (eye wear),Westside (lifestyle retail store), Star Bazaar (hypermarket), Fashion Yatra (fashion store) trustingness GroupReliance Fresh (neighborhood store), Reliance Super (mini-mart), Reliance Mart (supermarket), Reliance Digital (consumer durables and information technology), Reliance TimeOut (books, music and entertainment), Reliance Trends (apparel and accessories), Reliance Wellness (health, wellness and beauty), iStore (Apple products), Reliance Footprint (footwear), Reliance Jewels, Reliance Living (home ware, furniture) and Reliance AutoZone (automotive products and services)Future GroupCentral (shopping mall), Big Bazaar (hypermarket), Pantaloons (fashion pop step to the forelet), Blue Sky (sunglasses), eZone(electronics), KBs Fair Price (essential products), Navaras(jewellery), Planet Store (multi-brand sports and lifestyle specialization retail), aLL(fashion garments), Ethnicity (Indian ethnic wear), Home Town (home take), Furniture Bazaar (furniture), Electronics Bazaar (electronics), Home Bazaar, Collection I (furniture), Brand Factory (multi-brand readymade apparels), Gen M One Mobile (cell phones), M-Port (electronics), habilitate Factory (footwear) and Depot (books and music)Few more to the list would be players like RPG group, K Raheja group, Landmark group, Bharti group, Mahindra group, Aditya Birla group and Vishal retail. IBEF Retail, (2010)In 2009 Reliance Retail as a part of its growth strategy planned to introduce Private labels in FMCG segment for selling in its retail stores (Livemint.com 2009). In view of the above it is distinct to carry out a study to weigh the existing opportunity for Reliance Retail Ltd, acquisitions if any? And to evaluate the benefits of introduction of Private labels in its retail stores.Conceptual underpinnings of the enquiryRetailing amongst the worlds biggest industries. From the marketing standpoint retailers are closer to consumers than the manufacturers (Reynolds 2004b, p.3). some factors are accountable for the current changes in the modern retail management. Many large retailers have huge turnovers and employee strengths Wal-Mart employs 1.8 million worldwide and Carrefour the largest European retailer (no.2) has more than 12,000 stores across the globe. Joachim Zentes, (200 7).ESTABLISHED FORMATSKirana storesDepartmental storesEvolution of Retail in IndiaEMERGING FORMATSHypermarketsSupermarketsSpecialty storesetcCONVENTIONAL FORMATSMelasMandisThe advantages of Private LabelThe key advantage from a retailer perspective could be the Private labels will fill the needs gap that is present in the market place unique product or a differentiated product in the market place. The critical prognosis of the private label for the retailer is that it gives the retailer a higher profit margin than what is offered on other brands. Though the Private label introduction whitethorn not always be advantageous to the retailer as they may face hostile response from other brand manufacturers and hence the retailer mustiness have a good monetary base Swapna Pradhan,(2008)Mergers AcquisitionsBoth these terms are use as though they were identical, but in real whizz they are both different. An acquisition occurs when one company takes over the management of another produc tion line clearly establishing itself as the new owner of that firm.Merger occurs when ii companies agree mutually to work together as a single entity going forward. This can be mergers of two companies of equal size or unsymmetrical sizes Edward Gerald, (2005)Companies through Mergers Acquisitions can expect to achieve Edward Gerald, (2005)Competitive advantage over othersIncrease its market share / profitabilityTo enter new markets / geographiesAccess to in vogue(p) technology / talentDiversification into new businessesPurposeThe key focus of this study is to searchThe advantages / disadvantages for Reliance Retail Ltd after introducing Private labels?And also explore if there is any scope for growth by inorganic means.SWOT for Reliance Retail LtdResearch questionsWhat are the advantages / disadvantages for Reliance Retail Ltd with the introduction of Private Label?Is there any opportunity for Reliance for acquisitions in retail space?Scope of the present look into project The current study is carried out at the Reliance Fresh outlets located in Bangalore, India, due to restrictions and limited time available. Such a study can also be carried out at Reliance wise(p) stores across all the major Indian cities.Section -2 Research methodology2.1 Research strategyResearch methodology is a systematic method of solving a research problem. It includes the set of methods and techniques required to approach a particular research problem. In general marketing research process can be split into the following broad stepsRanjit Kumar,(2005)Data CollectionResearch DesignProblem DefinitionData analysisReport Presentation2.2 SamplingSampling can be defined as a process of drawing conclusions to the whole but by only probing a part of it Ranjan Kumar, (1996). Private Labels has already been introduced by few of retail giants here in India and Mergers Acquisitions in Indian retail space is close negligible in order to probe further into this Reliance fresh outlets (Store Managers) in Bangalore will be contacted. And Convenience sampling will be used as the sampling technique as this will be more appropriate for such a study. The sample size of 15 Reliance fresh stores has been selected here.2.3 Data collectionData collection forms an important part of any research project. Data can either be from Primary or standby sources. Primary data refers to the data collected by the detective in context to the research and these are mainly collected through a organize Questionnaire consisting of both open ended and closed ended questions. For the current study primary data forms the core. The questionnaire will be sent to the concerned personnel via e-mail and also based on requirement they may also be contacted on their phones.Secondary data can be from trade associations, journals, news articles and other research information providers like IBEF (Indian brand equity foundation)2.4 Data analysisData obtained from the sources will be processed to obt ain information using which the researcher will arrive at a conclusion and make his recommendations / give insights (Decision making) to the client.2.5 Validity and dependablenessValidity and Reliability are often associated with each other. Reliability is defined as any test or procedure yielding the same output for a given set of repeated trials. Reliability does not mean Validity. Validity in general refers to the concepts conclusions that correspond to the real world. Edward Richard, (1986)2.6 AccessThe research is primarily based on the ease of data accessibility and for this research store managers of Reliance Retail Ltd in Bangalore will be contacted either by sending the questionnaire via email or by contacting them on phones and prior to this we are required to fix a suitable time slot with the Store manager for the interview. And the final output from this study will be shared with all the Store managers who has been interviewed during this study.2.7 Gantt ChartTaskDesc ription Weeks123456789101112131Literature Review1.1Workshop on user needs1.2Draft of methodology1.3Evaluation of methodology2 condition of Integrated System2.1Inventory of resources in selected regions2.2Review of existing facilities2.3Specify technical developments required2.4Impact analysis of different scenarios2.5Prepare detailed business plans3Feasibility Studies for each region 3.1Review existing practices 3.2Review technologies (state of the art) 3.3Sensitivity analysis of scenarios 3.4Report on most suitable options4 protrude Management and CoordinationDissemination of information WorkshopsMilestones and DeliverablesGuideline for methodologyInterim ReportsBusiness Plans for four regionsDraftPublic Workshop on resultsFinal Report