1. Industry Profile
1.1 Indian Retailing:
Retailing in India is one of the pillars of its economy and accounts for about 15% of its GDP.
The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.
India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and AppleThe announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership. Indian government continues the hold on retail reforms for multi-brand stores.
Organized retailing, in India, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the
publicly-Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local mom and pop store, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.
Organized retailing was absent in most rural and small towns of India in 2010. Supermarkets and similar organized retail accounted for just 4% of the market.
1.2 Background of Indian retailing:
Most Indian shopping takes place in open markets or millions of small, independent grocery and retail shops. Shoppers typically stand outside the retail shop, ask for what they want, and cannot pick or examine a product from the shelf. Access to the shelf or product storage area is limited. Once the shopper requests the food staple or household product they are looking for, the shopkeeper goes to the container or shelf or to the back of the store, brings it out and offers it for sale to the shopper. Often the shopkeeper may substitute the product, claiming that it is similar or equivalent to the product the consumer is asking for. The product typically has no price label in these small retail shops; although some products do have a manufactured suggested retail price (MSRP) pre-printed on the packaging. The shopkeeper prices the food staple and household products arbitrarily, and two consumers may pay different prices for the same product on the same day. Price is sometimes negotiated between the shopper and shopkeeper. The shoppers do not have time to examine the product label, and do not have a choice to make an informed decision between competitive products.
India's retail and logistics industry, organized and unorganized in combination, employs about 40 million Indians (3.3% of Indian population). The typical Indian retail shops are very small. Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. India has about 11 shop outlets for every 1000 people. Vast majority of the unorganized retail shops in India employ family members, do not have the scale to procure or transport products at high volume wholesale level, have limited to no quality control or fake-versus-authentic product screening technology and have no training on safe and hygienic storage, packaging or logistics. The unorganized retail shops source their products from a chain of middlemen who mark up the product as it moves from farmer or producer to the consumer. The unorganized retail shops typically offer no after-sales support or service. Finally, most transactions at unorganized retail shops are done with cash, with all sales being final.
Until the 1990s, regulations prevented innovation and entrepreneurship in Indian retailing. Some retails faced complying with over thirty regulations such as "signboard licences" and "anti-hoarding measures" before they could open doors. There are taxes for moving goods to states, from states, and even within states in some cases. Farmers and producers had to go through middlemen monopolies. The logistics and infrastructure was very poor, with losses exceeding 30 percent.
Through the 1990s, India introduced widespread free market reforms, including some related to retail. Between 2000 to 2010, consumers in select Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry.
1.3 Growth of Indian retailing:
Growth over 1997-2010
India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale. Then, it required government approval. The approval requirement was relaxed, and automatic permission was granted in 2006. Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign direct investment, representing a very small 1.5% of total investment flow into India.
Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57 were approved and implemented. For a country of 1.2 billion people, this is a very small number. Some claim one of the primary restraints inhibiting better participation was that India required single brand retailers to limit their ownership in Indian outlets to 51%. China in contrast allows 100% ownership by foreign companies in both single brand and multi-brand retail presence.
Indian retail has experienced limited growth, and its spoilage of food harvest is amongst the highest in the world, because of very limited integrated cold-chain and other infrastructure. India has only 5386 stand-alone cold storages, having a total capacity of 23.6 million metric tons. However, 80 percent of this storage is used only for potatoes. The remaining infrastructure
Indian laws already allow foreign direct investment in cold-chain infrastructure to the extent of 100 percent. There has been no interest in foreign direct investment in cold storage infrastructure build out. Experts claim that cold storage infrastructure will become economically viable only when there is strong and contractually-binding demand from organized retail. The risk of cold storing perishable food, without an assured way to move and sell it, puts the economic viability of expensive cold storage in doubt. In the absence of organized retail competition and with a ban on foreign direct investment in multi-brand retailers, foreign direct investments are unlikely to begin in cold storage and farm logistics infrastructure.
Until 2010, intermediaries and middlemen in India have dominated the value chain. Due to a number of intermediaries involved in the traditional Indian retail chain, norms are flouted and pricing lacks transparency. Small Indian farmers realize only 1/3rd of the total price paid by the final Indian consumer, as against 2/3rd by farmers in nations with a higher share of organized retail. The 60%+ margins for middlemen and traditional retail shops have limited growth and prevented innovation in Indian retail industry.
Growth after 2011
Before 2011, India had prevented innovation and organized competition in its consumer retail industry. Several studies claim that the lack of infrastructure and competitive retail industry is a key cause of India's persistently high inflation. Furthermore, because of unorganized retail, in a nation where malnutrition remains a serious problem, food waste is rife. Well over 30% of food staples and perishable goods produced in India spoil because poor infrastructure and small retail outlets prevent hygienic storage and movement of the goods from the farmer to the consumer. One report estimates the 2011 Indian retail market as generating sales of about $470 billion a year, of which a miniscule $27 billion comes from organized retail such as supermarkets, chain stores with centralized operations and shops in malls. The opening of retail industry to free market competition, some claim will enable rapid growth in retail sector of Indian economy. Others believe the growth of Indian retail industry will take time, with organized retail possibly needing a decade to grow to a 25% share. A 25% market share, given the expected growth of Indian retail industry through 2021, is estimated to be over $250 billion a year: a revenue equal to the 2009 revenue share from Japan for the world's 250 largest retailers.
The Economist forecasts that Indian retail will nearly double in economic value, expanding by about $400 billion by 2020. The projected increase alone is equivalent to the current retail market size of France.
1.4 The Indian Retail Market:
Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0.19
percent is highest in the world. 1.8 million 45 lakh (US$85,500).
Delving further into consumer buying categories: status-oriented and indulgence machines, dishwashers, microwave
Indulgence-oriented products include plasma TVs, state
high-end digital cameras, camcorders, and gaming consoles. Consumers in the status category buy because they need to maintain a position in their social group. Indulgence
happens with those who want to enjoy life better with products
When it comes to the festival shopping season, it is primarily the status contributes largely to the retailer’s cash registe
While India presents a large market opportunity given the number and increas
power of consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Challenges include: Geographically dispersed population, small ticket sizes, complex distribution networ
limitations of mass media and existence of counterfeit goods.
The Economist forecasts that Indian retail will nearly double in economic value, expanding by The projected increase alone is equivalent to the current retail
Indian market has high complexities in terms of a wide geographic spread and distinct consumer ng by each region necessitating a need for localization even within the geographic zones. India has highest number of outlets per person (7 per thousand) Indian retail
ft (0.19 m2)/ person is lowest in the world Indian retail densi 1.8 million households in India have an annual income of over
Delving further into consumer buying habits, purchase decisions can be separated into two oriented and indulgence-oriented. CTVs/LCDs, refrige
microwave ovens and DVD players fall in the status category. oriented products include plasma TVs, state-of-the-art home theatre systems,
end digital cameras, camcorders, and gaming consoles. Consumers in the status category buy because they need to maintain a position in their social group. Indulgence
happens with those who want to enjoy life better with products that meet their requirements. When it comes to the festival shopping season, it is primarily the status-oriented segment that contributes largely to the retailer’s cash register.
While India presents a large market opportunity given the number and increas
power of consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Challenges include: Geographically dispersed population, small ticket sizes, complex distribution network, and little use of IT systems, limitations of mass media and existence of counterfeit goods.
The Economist forecasts that Indian retail will nearly double in economic value, expanding by The projected increase alone is equivalent to the current retail
Indian market has high complexities in terms of a wide geographic spread and distinct consumer ng by each region necessitating a need for localization even within the geographic zones. India has highest number of outlets per person (7 per thousand) Indian retail )/ person is lowest in the world Indian retail density of 6
in India have an annual income of over
habits, purchase decisions can be separated into two refrigerators, washing ovens and DVD players fall in the status category. art home theatre systems, iPods, end digital cameras, camcorders, and gaming consoles. Consumers in the status category buy because they need to maintain a position in their social group. Indulgence-oriented buying that meet their requirements. oriented segment that
While India presents a large market opportunity given the number and increasing purchasing power of consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Challenges include: Geographically dispersed use of IT systems,
1.5 Major Indian Retailers:
REI AGRO LTD Retail: 6TEN and 6TEN kirana stores
Future Groups-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.
Raymond Ltd.: Textiles, The Raymond Shop, Park Avenue, Park Avenue Woman, Parx, Colourplus, Neck Ties & More, Shirts & More etc.
Fabindia: Textiles, Home furnishings, handloom apparel, jewellery
RP-Sanjiv Goenka Group Retail-Formats: Spencer’s Hyper, Spencer's Daily, Music World, Au Bon Pain (Internaional bakery cafeteria), Beverly Hills Polo Club
The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets, Croma.
Reliance Retail-Formats: Reliance MART, Reliance SUPER, Reliance FRESH, Reliance Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone, iStore
Reliance ADAG Retail-Format: Reliance World
K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit Mall
Nilgiri’s-Formats: Nilgiris’ supermarket chain
Marks & Spencer: Clothing, lifestyle products, etc.
Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores.
Pyramid Retail-Formats: Pyramid Megastore, TruMart
Next retail India Ltd (Consumer Electronics)(www.next.co.in)
Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe Deposit Lockers
PGC Retail -T-Mart India [1], Switcher, Respect India, Grand India Bazaar,etc.,
Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.
Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain
Vishal Retail Group-Formats: Vishal Mega Mart
German Metro Cash & Carry
Shoprite Holdings-Formats: Shoprite Hyper
Paritala stores bazar: honey shine stores
Aditya Birla Group - "More" Outlets
Kapas- Cotton garment outlets
Nmart Retails with 71 operating Stores till now and total 153 Stores in India and 1 to open in Dubai Shortly. (Expected to be 150 by the end of Aug-2012)
2. Company Profile
2.1 Background and inception of the company:
2.1.1 About Reliance Group
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 US$ 58 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
Dhirajlal Hirachand Ambani (1932-2002) Founder of Reliance Group
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, retail, infotel and special economic zones.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
Major Group Companies are Reliance Industries Limited, including its subsidiaries and Reliance Industrial Infrastructure Limited.
2.1.2 About Reliance Retail Limited
Reliance Retail Limited is an organized retail arm of the Reliance Industries Limited. Reliance industry is the largest conglomerate in India. It has an annual turnover of US$35.9 Billion. It is also listed on 206th position in the Fortune Global 500 companies.
Reliance Retail is actually the retail group of Reliance Industries Limited. It has a number of brands like Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance fresh, Reliance footprint, Reliance Jewels, Reliance trends, and Reliance living.
Reliance Group was established in 1970's. The Reliance Retail was found in the year 2006 as an operating subsidiary. It has its head office in Mumbai, India.
Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, Reliance is aggressively working on introducing a pan-India network of retail outlets in multiple formats. A world class shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique value-added services and above all, unmatched customer experience, is what this initiative is all about.
The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity, will be an integral feature of this project. By creating value at all levels, we will actively endeavor to contribute to India's growth.
The project will boast of a seamless supply chain infrastructure, unprecedented even by world standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch almost every Indian customer and supplier.
2.1.3 About Reliance Digital
Reliance Digital is a Consumer Electronics, Durables, IT & Telecom retail arm of Reliance Retail Group, a subsidiary of Reliance Industries Limited hosts over 150 national and international brands of electronic products. Reliance Digital Stores offer more than 4000 types of electronic products.
After a successful launch of Reliance Fresh stores across several towns and cities in India, Reliance Retail Limited unveiled ‘Reliance Digital’ in the year 2007, its pilot consumer electronics concept mega store. The new destination for the latest in technology and entertainment products & services, and currently 58 Reliance Digital stores are operating in India.
2.2 Nature of the business carried:
Reliance Digital Store is a one stop shop for different electronic needs of all customers. May it be household appliances, computers, laptops, games or telecom products; customers can find every gadget, for every budget at Reliance Digital. It has over 4000 products at reasonable prices for its valued customers.
2.3 Vision, Purpose, Values and Promises:
2.3.1 Vision
Reliance Digital seeks to fulfill the dream of every Indian, be it through its nationwide network of conveniently located stores or through its presence on the web, by providing a delightful shopping experience of products & solutions and helping them bring home the latest & best in technology from the widest selection at the lowest assured price with complete peace of mind through lifelong support.
Or more simply
“We bring Technology to life for you”
2.3.2 Purpose
• Growth is Life
“Bettering the lives of Indian everyday”
2.3.3 Values
• We believe in people
• We believe in and follow the customer
2.3.4 Promises
• A delightful shopping experience
• A delighted community
• A delightful place to work
2.4 Products/ Services Profile:
Reliance Digital – The Merchandise Mix Complete range of• Consumer electronics
• Home appliances
• Kitchen appliances
• Computing & gaming
• Personal audio
• Mobile communications
• High-end audio & home theaters
• High definition flat panel televisions
• Music and movies
• Digital photography & photo printing
• Accessories to enhance product usage & experience
• And lots more!
More than 150 brands, 4000 products and countless solution bundles individually recommended to best suit the customers’ needs.
Services
Reliance Digital reviews all its products to provide the best to its customers. It has a specially designed ‘Experience Zones’ to get the real feel of the product before purchasing it.
Reliance Digital provides financial assistance through easy EMI Schemes; Company has appointed Bajaj Capital to provide financial assistance to its consumers. Consumers have to make 40% down payment and the remaining amount is distributed into 8 EMIs and interest rate varies from brand to brand products.
Reliance Digital has a ResQ facility, which serves the purpose of a technical support team. It comes to rescue to provide solutions for problems that customers may face with products from
all leading brands. This facility is available 7 days a week; 365 days a year from 10 a.m. to 10 p.m. They have qualified engineers to deal with installation and to guide you with the usage of the appliances.
ResQ services are -
Product installation: ResQ help to set up customers’ product for optimum
performance
Specialised customer training:
• Specialised training to customers on products and related applications by an industry trained personnel
Authorised Service Station for diagnosis and repairs (Caters to all brands)
• One stop solution for repairs for all brands’ products
• Repairs covering both pre and post manufacturer warranty periods
• On-site service for select products – for the rest, our engineers shall transport products to and fro from the service station
Demonstrate Product Usage:
Health check-up plan: Preventive Maintenance
• To ensure that products do not malfunction, resQ offer periodic services and maintenance check-ups
• Tips on upkeep of products for optimal performance
• Also covers products not purchased from Reliance Digital
Enhanced Utility: ResQ Accessories
• ResQ offer a host of utility products and accessories that are compatible with products & help customers get more of them!
Extended Warranty Service- ResQ Care Plan
• Free repairs, including both parts and labour
• Free preventive maintenance visits during plan period
2.5 Area of operation – National:
Reliance Digital is a Consumer Electronics, Durables, IT & Telecom retail arm of Reliance Retail Group, a subsidiary of Reliance Industries Limited, and currently 58 Reliance Digital stores are operating in India and 9 stores are operating in Bangalore.
2.6 Ownership pattern:
Reliance industry is the largest conglomerate in India, having number of brands with the different businesses. The ownership pattern of Reliance Digital can be explained as - Reliance Industries Limited has different subsidies; Reliance Retail Limited is one among the subsidies and under which Reliance Digital is one of the Retail Business of Reliance retail.
Reliance Digital or the Reliance Retail Limited has not listed in stock market individually but Reliance Industries Limited (RIL) as whole listed under stock market where all the subsidies of RIL is considered to be a group and listed in the stock market. Hence Reliance Digital is a Public Limited Company and Mr. Mukesh D. Ambani is the Chairman and Managing Director of Reliance Industries Limited.
Reliance Industries Limited
Refining Petrochemicals
- Polymers Textiles Retail Petrochemicals -
Polyester & Fibre Intermediates Reliance Gas & Reliance Aviation Vimal Vimal Gifting & V2 Vimal Reliance Digital Reliance fresh Reliance footprint Reliance Jewels Reliance trends Reliance Petroleum Retail Roxy Office Depot GAPCO And many more
Repol Relene Reon Cisamer & Relab Recron Stretch Recron Cotluk Recron Dyefast Recron 3s Recron LP Relpet And many more
2.7 Competitors Information:
Croma
Croma is India’s first national, large format, specialist retail chain for consumer electronics and durables.
Croma is promoted by Infiniti Retail Ltd, a 100% subsidiary of Tata Sons. Woolworths, one of the world’s leading retailers, provides technical and strategic sourcing support, ensuring that you buy nothing but the best.
Croma's first store opened on October 9, 2006 at Juhu in Mumbai, and it's rolling out many more stores across India.
Brand Philosophy
If service wasn't important.
If technology wasn't complex.
If variety wasn't confusing.
We would have no reason to be in business.
We help you buy.
eZone
eZone is an experience-led lifestyle format that brings together the best in national and international consumer electronic and durables brands in a family-centric environment. Typically covering 12,000 square feet, an eZone store truly enables you to experience electronics through three dedicated zones - Liberation Zone, Experience Zone and Home Zone.
The Liberation Zone offers personal products like computers, laptops, handy cams, MP 3 players and mobile phones. Entertainment products such as Plasma / LCD, Flat TVs, Home Theatre systems, DVD players, and Stereo systems are displayed in the Experience Zone. In the Home Zone segment, one gets to pick electronic goods of his or her choice including Refrigerators, Air-Conditioners, Washing Machines and Microwave ovens among other kitchen-related appliances. eZone also offers an unparalleled service and support through the special ‘E-Care’ customer support centre. E-Care is a special, dedicated support system designed to offer the best customer service after purchase of any product at eZone.
Others
There are other unorganized consumers electronic and durables brands such as Pai International, Girias and Harsha Electronics are operating in Karnataka and some other states of the country and these can be called as local market competitors but these brands are not to be considered as competitors for Reliance Digital Retail Limited.
2.8 Infrastructural facilities:
PlanogramAlso known as plano-gram, plan-o-gram, and POG, planogram is a visual representation of a store's products or services considered as a tool of visual merchandising in retail store.
Signage
Signage is kind of visual graphics created to display information about products to customers.
Experience Zones
Experience zones take consumers through a delightful and interactive voyage in the world of electronics and durable goods. Crafted with the latest signage, audio and merchandising where customers can experience the products before purchasing.
Home theater experience zone
It is an exclusive experience zone in reliance digital store. It is a small room arranged well furnished with sound systems where consumers can experience the home theaters before purchasing.
Play station
Play station is advanced video gaming station where customers who visit the store can play and have delightful shopping experience with reliance digital.
Learning Center
Learning center is training center that is located within the reliance digital store where employees are trained on the products those arrived in the store and usually this center is used for meetings in the store.
2.9 Work flow model:
The nature of the business is retailing hence the
reliance digital instead goods are ordered and brought into stores for the retail sales. The numbers of products from the different brands with different product ranges are recruited into stores and further sales is made
Ordering Process.
Learning center is training center that is located within the reliance digital store where employees trained on the products those arrived in the store and usually this center is used for meetings
The nature of the business is retailing hence the manufacturing of goods is not
goods are ordered and brought into stores for the retail sales. The numbers of products from the different brands with different product ranges are recruited into and further sales is made so the work flow model could be Operating Model and Stock
Operating Model
Learning center is training center that is located within the reliance digital store where employees trained on the products those arrived in the store and usually this center is used for meetings
not involved with goods are ordered and brought into stores for the retail sales. The numbers of products from the different brands with different product ranges are recruited into k flow model could be Operating Model and Stock
Operating Model Explanation
1. The operating model begins with Pre – installation Counseling & queries of customers basically this happens though telephonic queries by customers or approach to know about product available in reliance digital and this step will supported by resQ team. Usually this will not be the initial step in most of the cases, customers directly approach store to know about the products.
2. The second step could begin the actual operating model because most of the customers first approach store and get to know details about their required product, when customers walk in to the store employees counsel the customers, attend their queries and also understanding their requirements they provide consultative solution to customers and this can be considered as beginning step of operating model.
3. After counseling and consultation when customer make the purchase of goods, delivery of goods will be supported by Reliance D&L Team, team also help customer in exchange and product pick-up in case of any replacements after sale of goods as post sales service. 4. When goods are delivered to customers by D&L team, reliance resQ team helps
customers by Demonstration and Installation of product at customers place.
5. And after sales services such as extended warranty/maintenance and repairs will be supported by resQ team in the company.
6. And also replacement and up gradation of products will be supported by resQ team and further queries regarding products etc will handled by resQ team, with this again operating model may continues as discussed above.
Stock Ordering Process
Reliance Digital has classified electronics and consumer durable goods into four departments as 1. Consumer Electronics
2. Home Appliances 3. Information Technology 4. Telecommunication
When the goods in the departments need to be ordered; each department follow the following procedure for ordering the stock.
Stock Ordering Process Explanation
1. Stock report of every product is
2. In case there is no stock or less quantity
has to be sent to the category department of respective section requesting the list of goods required in the department
Article code and Quantity,
3. Category department is a central body present in the Mumbai corporate office, category department place the order to
house of the state.
Reliance Digital has classified electronics and consumer durable goods into four departments as
When the goods in the departments need to be ordered; each department follow the following procedure for ordering the stock.
Stock Ordering Process
Stock Ordering Process Explanation
product is verified regularly by all the departments.
In case there is no stock or less quantity in the stock for the products, stock ordering mail has to be sent to the category department of respective section requesting the list of goods department with the complete details such as Product, Brand Name, Article code and Quantity, and ordering mail should have store code.
Category department is a central body present in the Mumbai corporate office, category department place the order to respective Brands to deliver the goods to central ware Reliance Digital has classified electronics and consumer durable goods into four departments as
When the goods in the departments need to be ordered; each department follow the following
.
for the products, stock ordering mail has to be sent to the category department of respective section requesting the list of goods with the complete details such as Product, Brand Name,
Category department is a central body present in the Mumbai corporate office, category respective Brands to deliver the goods to central ware
4. Brand people deliver ordered goods to respective central ware house, central ware house become the distribution center for the stores.
5. Distribution center sends the goods to the stores those are ordered.
6. When the goods arrive to the store goods are received by material department of store. 7. And finally goods are sent to the respective departments.
8. Each department has to update its stock report every day for the stock reference and keep follow up on stock level.
2.10 Future Growth and Prospectus:
At a time when inflation and high input costs are putting pressure on margins of retail companies, Mukesh Ambani-led Reliance Retail expects its specialty and value formats driving the firm’s next stage of growth.
Reliance Retail’s value formats include Reliance Fresh, a neighborhood retail concept, Reliance Mart, an all-under-one-roof supermarket concept, and Reliance Super, a mini-mart concept. The value formats offer a wide range and assortment of products required for daily household needs. Its specialty formats include Reliance Digital, consumer durables and information technology concept, Reliance Trends, apparel and accessories concept, and iStore by Reliance Digital, an exclusive Apple products stores. Other specialty formats include Reliance Footprint for footwear, Reliance Jewels, and Reliance Living, a home wear, furniture, modular kitchens and furnishings concept. Reliance Retail plans to double its stores across all formats within next five years. At present, it has more than 1,050 stores and a pan-India presence.
Reliance Digital Retail Limited will have 100 stores by the year 2014 in pan India. And also company planning to provide financial assistance to the reliance digital customers by the reliance group as of now it has appointed Bajaj Capital for the financial assistance to Reliance Digital customers.
3. The
The McKinsey 7S model
The McKinsey 7S model was named after a consulting company, McKinsey and Company, which has conducted applied research in business and industry. The McKinsey 7S Framework was created as a recognizable and easily remembered model in business. The seven variables, which the authors term "levers", all begin with the letter "S":
These seven variables include structure, strategy, systems, skills, style, staff and shared values. Structure is defined as the skeleton of the organization or the organizational chart. The authors describe strategy as the plan or course of action in allocating resources to achieve identified goals over time. The systems are the routine processes and procedures followed within organization. Staff are described in terms of personnel categories within the organization (e.g. engineers), whereas the skills variable refers to the capabilities of the staff within the organization as a whole. The way in which key managers behave in
goals is considered to be the style variable; this variable is thought to encompass the cultural style of the organization. The shared values variable, originally termed super ordinate goals, refers to the significant meanings or
The McKensy’s 7S Framework
was named after a consulting company, McKinsey and Company, which has conducted applied research in business and industry. The McKinsey 7S Framework zable and easily remembered model in business. The seven variables, which the authors term "levers", all begin with the letter "S":
These seven variables include structure, strategy, systems, skills, style, staff and shared values. the skeleton of the organization or the organizational chart. The authors describe strategy as the plan or course of action in allocating resources to achieve identified goals over time. The systems are the routine processes and procedures followed within organization. Staff are described in terms of personnel categories within the organization (e.g. engineers), whereas the skills variable refers to the capabilities of the staff within the organization as a whole. The way in which key managers behave in achieving organizational goals is considered to be the style variable; this variable is thought to encompass the cultural style of the organization. The shared values variable, originally termed super ordinate goals, refers to the significant meanings or guiding concepts that organizational members share.
was named after a consulting company, McKinsey and Company, which has conducted applied research in business and industry. The McKinsey 7S Framework zable and easily remembered model in business. The seven variables,
These seven variables include structure, strategy, systems, skills, style, staff and shared values. the skeleton of the organization or the organizational chart. The authors describe strategy as the plan or course of action in allocating resources to achieve identified goals over time. The systems are the routine processes and procedures followed within the organization. Staff are described in terms of personnel categories within the organization (e.g. engineers), whereas the skills variable refers to the capabilities of the staff within the achieving organizational goals is considered to be the style variable; this variable is thought to encompass the cultural style of the organization. The shared values variable, originally termed super ordinate goals,
From above 7, three are called Hard ‘S these are such as
Strategy
System
Structure
And other four are called Soft ‘S’, namely
Skills
Staff
Shared value
Style
McKinsey’s 7s at Reliance Digital
Strategy
Strategy is the plan of action an organization prepares in response to, or anticipation of, changes in its external environment. Strategy is differentiated by tactics or operational actions by its nature of being premeditated, well thought through and often practically rehearsed.
Reliance Digital routinely have different campaigning strategies for their new products and to move stock which offer exciting sales promotion offers for the customers to persuade them to know the product and purchase it. For e.g. During Christmas and New Year sale they had up to 50% discount on products.
Reliance Digital uses display fixtures to communicate and educate customer about the sales promotion and they decorate the window areas with the products related to their promotion.
System
The system that Reliance Digital has for its sale of goods is friendlier and assists customer in purchase of products. The procedure that they follow in Reliance Digital for sale of product is initially when customers walk in to store junior sales associate welcome customer in to store by
particular product. When customer makes purchasing decision the same person takes customer to cash counter to make bill of the purchased product and when customer reaches cash counter cashier at counter greet the customer and makes billing and keep the product in Reliance Digital carry bag and hand over to customer in case goods are heavy to carry there are
help customer taking them out of store and keep the products in their vehicle are huge in size they make delivery arrangement
Structure
The design of organizational structure is a critical task of the
It is the skeleton of the whole organization. It prescribes the formal relationship among various positions and activities.
particular product. When customer makes purchasing decision the same person takes customer to ter to make bill of the purchased product and when customer reaches cash counter cashier at counter greet the customer and makes billing and keep the product in Reliance Digital carry bag and hand over to customer in case goods are heavy to carry there are
help customer taking them out of store and keep the products in their vehicle and they make delivery arrangement through D&L Team.
The design of organizational structure is a critical task of the top management of an organization. It is the skeleton of the whole organization. It prescribes the formal relationship among various
Organisation Structure
particular product. When customer makes purchasing decision the same person takes customer to ter to make bill of the purchased product and when customer reaches cash counter cashier at counter greet the customer and makes billing and keep the product in Reliance Digital carry bag and hand over to customer in case goods are heavy to carry there are store boys who and if the products
top management of an organization. It is the skeleton of the whole organization. It prescribes the formal relationship among various
CMO – Commercial Operations Manager VM – Visual Merchandiser DM – Department Manager CE – Consumer Electronics Telecom – Telecommunication HA – Home Appliances IT – Information Technology TL – Team Leader
SSA – Senior Sales Associate JSA – Junior Sales Associate
MOO – Material Operational Officer MOE – Material Operational Executive CRM – Customer Relationship Manager
Store Hierarchy
Commercial Operations Manager
Material Operational Officer Material Operational Executive Customer Relationship Manager
Skills
Employees must have products knowledge and they should have skills to persuade customer to purchase product. At Reliance Digital Company provide training to the employees on products which help employees to make sale of product with their best knowledge of product and skill. In successive intervals the company sends mystery shoppers to stores to evaluate the performance of the employees and they rate the performance of employees in the store and report to the company if the training is required company arranges for it. And whenever new product has arrived to store they provide training on that particular product in the store learning center. During the training conducted by the company they make sure that the employees are aware about the products information and also sales associates are given proper selling skill tips and training on selling procedure.
Employees are also trained on how to greet and groomed to their best ability and they are trained to handle all minor issues encountered in the store.
Staff
Organizations are made up of humans and it's the people who make the real difference to the success of the organization in the increasingly knowledge-based society. The importance of human resources has thus got the central position in the strategy of the organization, away from the traditional model of capital and land.
Reliance Digital has 58 stores in pan India and has got more than 1000 employees working for the company.
Shared value
• We believe in people
• We believe in and follow the customer
• We believe in the good of the community
Style
Reliance Digital has a very friendly environment for all the employees .The management follows top/down and bottom/up approach. Where in top management transfers the information from the higher level to the lower level. The target and objectives are set by the top level managers and are delegated to the lower level managers those in turn transfer to Team leader and sales associates in the store level, hence all the major decision are taken by the higher authority and shared to the lower level.
The lower level employees i.e., Team leader and sales associates revert back to the daily reports to the Department manager who in turn reports to the store manager and further store manager to his higher authority and it continues.
Every employee has a participative approach towards the business. Every employee is concerned with his Duties, Responsibilities and accountability for the happening of the event and employees have to report to their higher authority at regular intervals.
4. SWOT Analysis
Strength:
• Brand Name Reliance - Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
• resQ Services - The dedicated service arm that is available for support all 365 days of a year, from 10 a.m. to 10 p.m.
• Network - Over150 international and national brands.
• Private label sale – Some of own products (Reliance Reconnect).
• Product mix - One-stop shops for all technological solutions, it has over 4000 products at reasonable prices.
Weakness:
• Poor inventory control.
• Inadequate human resources.
• Operating costs are too high.
Opportunity:
• Potential for investment.
• High growth potential.
• E-retailing.
• Retail franchising.
• Wholesale trading.
Threat:
• Increasing competitor’s market share.
• Price war with competitors.
• Inflation.
5. Analysis of Financial Statements
Reliancedigital Retail Limited Balance Sheet as at 31st March, 2010Analysis:
• Long term funds increase in 2010 compare to the year 2009. Share capital remains unchanged where Reliance Digital Retail Limited borrowed more funds in the form of secured and unsecured loans.
• The investment in fixed assets is increased to 10448.63 lakhs in 2010 from 8509.70 lakhs in 2009.
• The investment on current asset increased from 3989.34 lakhs in 20009 to 6790.10 lakhs in 2010.
Interpretation:
The Reliance Digital Retail Limited investing more money in the form of fixed assets.
The current liabilities are not sufficient to meet the regular requirements and also company is using long term funds to finance current assets.
Profit and Loss Account for the year ended 31st March, 2010
The sale is increased from 31628.01 lakhs in 2009 to 41186.78 lakhs in 2010. Though sales has increased when comparative to last year the loss margin increased in 2010 because of increased in the operating expenses.
6. Learning Experience
Opting for internship at reliance digital was an opportunity for me to understand the retail industry and its nature of business. Understanding Retail management difference in organized retail and unorganized retail was a huge scope for my learning, the process and operation in organized and unorganized retails has a lot of difference that I could able to compare in my learning.
Using theoretical knowledge of Marketing and Retail Management I found how practically the strategies are implementing in organized retail and also I could find some areas of improvement that can be done in the company.
Learning about merchandising and stocking in retail for the sale and motivating sales team was a good exposure. I could find the level of difficulty in convincing customers and the pain that sales team undergoes to make a sale of product.
In my course of the study I understood all the factors those are to be considered for an effective sale where I could find how merchandising plays a vital role in attracting customers and stimulate them to buy the product.
I understood the flow of work and the organizational hierarchy from top level management to the store level. And also I could understand the motivational factors that make employees to have job satisfaction in the organization.
Customer’s mentality towards promotional sales programme also led me to understand that people look for price prior to the quality or the actual product. Overall exposure to Retail Management was an eye opener to me as how business is carried out and what all should be considered for making sales and to have effective retail management.
7. General Introduction to The Study
7.1 Statement of the problem
Online advertisement being the one of the most effective advertisement channel for the any brand or product, when company would like to go for the internet or online advertisement it is necessary to understand the customers or internet users’ perception and behavior towards the advertisement that is posted on internet. When the company plan to establish E Commerce distribution channel it is essential to have internet advertisement strategies to ensure that it has high reach to internet users or customers, that would create awareness of online distribution of the products by the company as well as it promote the brand name. Therefore the statement of the research problem would become the designing the strategies for internet advertisement for the retail industry particularly electronic and durable retail segment hence the title of the project is “A Study on Developing Effective Internet Advertising Strategies with Respect to Reliance Digital at Bangalore”.
7.2 Objectives of the study
• To study internet advertisement strategies
• To study online advertisement strategies with respect to Reliance Digital
• To study perception of customers on internet advertisement
• To study customers awareness and preference for online purchasing
• To suggest measures for improvement to the company
7.3 Scope of the study
7.4 Methodology
Universe: The respondents for the study will be the people who have awareness about use of
internet and already using internet for the various purpose and the respondents can or cannot be the customer of Reliance Digital but the respondents would have knowledge about electronic and durable goods.
Sample Frame: The research is limited to Bangalore city. Sample Size: The size of the sample is 100.
Sampling Technique: The technique used here is the non probability sampling method,
convenience sampling technique.
7.5 Data collection method
Primary Data collection method has been used; the information for the study collected from the respondents who have the awareness of internet and using the internet for various purposes, Primary data was collected from internet users to know the awareness of online purchasing and the perception towards internet advertisements which would help in designing advertisement strategies.
7.6 Tool of data collection
The tool used to collect the data was the questionnaire which consists of multiple choices, open ended and close ended questions to measure the internet users’ attitude and perception towards internet advertisement and also awareness of online purchasing.
7.7 Analysis Techniques
The collected data were analyzed using simple average method and Chi-square Test.
• Simple average method
Number of respondents for the particular research
--- X 100 Total number of respondents
• Chi-square (X2) Test X2 = ∑ (Oi – Ei)2/ Ei
Where
Oi = the frequencies observed Ei = the frequencies expected
∑ = the ‘sum of ’
7.8 Limitations of the study
1. The survey research is limited to Bangalore city only. 2. The respondents’ response may be bias.
8. Data Analysis, Interpretation and Observation
• How often respondents make use of internetOptions Percentage (%) Once in a day 39 Twice in a day 28 Once in two days 10 Once in a week 7
Almost 24*7 16
Total 100
Table 8.1
Analysis
Form the above table we come to know that 39% of the respondents browse internet once in a day, 28% twice in a day, 10% once in two days, 7% once in a week and 16% of respondents browse internet almost 24*7.
Chart 8.1 Once in a day 39% Twice in a day 28% Once in two days 10% Once in a week 7% Almost 24*7 16%
Inference
The study shows that 39% of respondents browse internet once in a day it is being the highest and 16% of respondents browse internet almost 24*7. Therefore 55% of respondents browse internet on daily bases so with this we can notice that more than half of the internet users making use of internet for various purposes in their day today life, hence internet being the best channel for communication to create awareness about product or brand.
• Websites that respondents browse often
Websites Total Responses
Percentage of Responses (%) Facebook 89 24.93 Google 95 26.61 Wikipedia 14 3.92 Gmail 58 16.24 Yahoo 45 12.60 Youtube 23 6.45 Others 33 9.25 Total 357 100 Table 8.2 Analysis
The above table reveals that respondents browsing websites often in their regular intervals 89 respondents using social networking website Facebook, 95 respondents says they browse google, 14 browse Wikipedia, 58 Gmail, 45 Yahoo, 23 Youtube and also 33 respondents browse other websites viz., Rediffmail, Skype, twitter, linkedin, hotmail, moneycontrol, orkut, indiatimes, songspk, torrento, irctc, icccricket, bcci, news.com etc.
Inference
From the survey we can find that
being one of the search engine but only 14
website Facebook having highest usage by the respondents, other social networking website such as twitter, likedin and orkut etc having less usage by the same respondents. Gmail, Yahoo and Youtube are used by 58, 45 and 23 respondents respectively. Other websites include Rediffmail, Skype, twitter, linkedin, hotmail, moneycontrol, orkut, indiatimes, songspk, torrento, irctc, icccricket, bcci, news.com etc. these all together mentioned by different respondents.
survey we come to know websites viewership by the respondents.
• Respondents browsing internet for advertisement 0 10 20 30 40 50 60 70 80 90 100 89 95 Chart 8.2
From the survey we can find that 95 respondents use search engine google and Wikipedia is also being one of the search engine but only 14 respondents are using it where social networking website Facebook having highest usage by the respondents, other social networking website such kut etc having less usage by the same respondents. Gmail, Yahoo and 58, 45 and 23 respondents respectively. Other websites include Rediffmail, Skype, twitter, linkedin, hotmail, moneycontrol, orkut, indiatimes, songspk, torrento, irctc, icccricket, bcci, news.com etc. these all together mentioned by different respondents.
survey we come to know websites viewership by the respondents.
Respondents browsing internet for advertisement
Options Percentage (%) Yes 37 No 63 Total 100 Table 8.3 95 14 58 45 23 33
search engine google and Wikipedia is also respondents are using it where social networking website Facebook having highest usage by the respondents, other social networking website such kut etc having less usage by the same respondents. Gmail, Yahoo and 58, 45 and 23 respondents respectively. Other websites include Rediffmail, Skype, twitter, linkedin, hotmail, moneycontrol, orkut, indiatimes, songspk, torrento, irctc, icccricket, bcci, news.com etc. these all together mentioned by different respondents. By the
Analysis
37% of respondents browse internet for advertisement to know the product features, price, offers and discount. And also for the comparison of products on which they are in need and some respondents think that browsing advertisement
the information about the products.
Inference
From the chart 03 we can conclude that 37% of the respondents browse adve various reasons on their required product
reach to these people on their requirement time
• How respondents read promotional emails
No 63%
37% of respondents browse internet for advertisement to know the product features, price, offers and discount. And also for the comparison of products on which they are in need and some respondents think that browsing advertisement on required product saves time in searching for the information about the products.
Chart 8.3
From the chart 03 we can conclude that 37% of the respondents browse adve on their required product therefore posting advertisement of the products ese people on their requirement time.
How respondents read promotional emails
Options Percentage (%) Always 3 Sometimes 48 Often 11 Yes 37% No 63%
37% of respondents browse internet for advertisement to know the product features, price, offers and discount. And also for the comparison of products on which they are in need and some on required product saves time in searching for
From the chart 03 we can conclude that 37% of the respondents browse advertisement for advertisement of the products might
Analysis
From the Table 04 we can see that only 3% of the respondents read all the promotional emails and 12% respondents do not read at all, 48% respondents say they read sometimes, 11% often, 6% seldom, and 20% hardly read promotional emails.
Chart 8.4
Inference
Study shows that only 3% reads all promotional emails and 12% do not read at all and from rest 85% we can come to conclusion that they read rarely. Hence mailing promotional emails may be one of the ways to create brand and product awareness.
• Respondents aware of online shopping websites
Options Percentage (%) Yes 77 No 23 Total 100 Table 8.5 Always 3% Sometimes 48% Often 11% Seldom 6% Hardly 20% Not at all 12%
Analysis
77% of the respondents have awareness about the online shopping websites and 23% do not have awareness. Therefore we can see that 77% of the internet users have awareness about e commerce websites.
Inference
From the study we can draw inference that 77% internet user in the market
commerce websites hence these 77% of the internet users can be potential customer for the company perhaps the company open an e
durable goods available easily to customers. awareness about online shopping websites.
77% of the respondents have awareness about the online shopping websites and 23% do not have Therefore we can see that 77% of the internet users have awareness about e
Chart 8.5
From the study we can draw inference that 77% internet user in the market
commerce websites hence these 77% of the internet users can be potential customer for the company perhaps the company open an e-commerce distribution channel to make electronic and durable goods available easily to customers. And here we will come to know about the market awareness about online shopping websites.
Yes 77% No
23%
77% of the respondents have awareness about the online shopping websites and 23% do not have Therefore we can see that 77% of the internet users have awareness about
are aware of e-commerce websites hence these 77% of the internet users can be potential customer for the
commerce distribution channel to make electronic and ome to know about the market
• Awareness of online shopping websites
Online shopping websites
Total Responses Percentage of Responses (%) Flipkart 52 31.51 Snapdeal 22 13.33 OLX 11 6.67 Homeshop18 9 5.46 Ebay 18 10.90 Amazon 13 7.88 Myntra 14 8.49 Naaptol 7 4.24 Others 19 11.52 Total 165 100 Table 8.6 Analysis
From the table we can see that 52 respondents has awareness about flipkart online shopping website out of 77 respondents who has awareness about online shopping websites, 22 respondents know about snapdeal, OLX is known to 11 respondents and homeshop18, Ebay, Amazon, Myntra, and Naaptol known to 9, 18, 13, 14 and 7 respondents respectively and also 19 respondents mentioned other shopping websites viz., futurebazaar, Mginger, indiatimesshoping, inkfruit,quicker, tradus etc.,.
Inference
In the chart 06 we can see flipkart is the
respondents i.e. 52 respondents have mentioned flipkart website out of 77 respondents who have awareness about online shopping w
mentioned snapdeal and ebay being the third highest
etc holding their position in the market through this survey. awareness of different e-commerce websites.
• Respondents have purchased products online 0 10 20 30 40 50 60 52 22 Chart 8.6
In the chart 06 we can see flipkart is the online shopping website well known to all most all respondents i.e. 52 respondents have mentioned flipkart website out of 77 respondents who have awareness about online shopping websites. Snapdeal stands in the second palce 22 respondents nd ebay being the third highest and also we can see OLX, Myntra, Naaptol etc holding their position in the market through this survey. Here we can understand market
commerce websites.
purchased products online in their past
Options Percentage (%) Yes 39 No 61 Total 100 Table 8.7 11 9 18 13 14 7 19
online shopping website well known to all most all respondents i.e. 52 respondents have mentioned flipkart website out of 77 respondents who have Snapdeal stands in the second palce 22 respondents we can see OLX, Myntra, Naaptol Here we can understand market
they have purchased online they are pen watch, iphone, micro oven, hard disk,
Inference
From the Chart 07 study shows that 39% of the respondents purchased different products from online shopping websites and the products have already mentioned in analysis of table 07. With this information we can come to conclusion that 39% of the respondents purchased online and also mentioned electronic goods that they have purchased such as mobile, pen drive and laptop and home appliance micro oven.
Chi-square (X2) Test
Chi-square test at 5% level of significance
20 25 Above 45
Ho: Online purchase made for products and the ages are independent. E (1, 1) = 39*29/100 = 11
E (1, 2) = 61*29/100 = 18
No 61%
they have purchased online they are pen drive, books, jewels, mobile, shoes, clothes, wrist watch, iphone, micro oven, hard disk, laptop and movie tickets.
Chart 8.7
From the Chart 07 study shows that 39% of the respondents purchased different products from online shopping websites and the products have already mentioned in analysis of table 07. With come to conclusion that 39% of the respondents purchased online and also mentioned electronic goods that they have purchased such as mobile, pen drive and laptop
significance Age Group Yes No 20 - 25 9 20 29 25 - 45 24 30 54 Above 45 6 11 17 39 61 100 Ho: Online purchase made for products and the ages are independent.
Yes 39%
drive, books, jewels, mobile, shoes, clothes, wrist
From the Chart 07 study shows that 39% of the respondents purchased different products from online shopping websites and the products have already mentioned in analysis of table 07. With come to conclusion that 39% of the respondents purchased online and also mentioned electronic goods that they have purchased such as mobile, pen drive and laptop
E (2, 1) = 39*54/100 = 21
E (2, 2) = 61*54/100 = 33
E (3, 1) = 39*17/100 = 7
E (3, 2) = 61*17/100 = 10
Oi Ei (Oi – Ei)2 [(Oi – Ei)2 / Ei]
9 11 4 0.364 20 18 4 0.222 24 21 9 0.429 30 33 9 0.273 6 7 1 0.143 11 10 1 0.100 100 100 1.531 X2 cal = 1.531
X2 table = 5.99 [2 degree of freedom]
2 Degree of Freedom because (3-1) * (2-1) = 2 Degree 1.531<5.99
X2 cal < X2table Therefore accept Ho
• Respondents view about statement “Online marketing would take over traditional marketing in next 10 years”
Options Percentage (%) Strongly agree 29
Agree 51
Analysis
51% of the respondents agree to the statement online marketing would take over traditional marketing in next 10 years, 2% dis agree to the statement and 18% of the respondents leave view that can’t be said and in which 29% of the respondents strongly agree to the statement.
Chart 8.8
Inference
Study shows that respondents are very optimist about the online marketing only 2% of the respondents dis-agree to the statement “Online marketing would take over traditional marketing in next 10 years” and 18% says that it can’t be said but together 80% of the respondents are optimist about the statement. This would help the study to draw inference about perception of the respondents with respect to online marketing against traditional marketing.
Strongly agree, 29%
Agree, 51% Can't
say, 18%
Disagree, 2% Strongly