Cooperative Advertising in Reliance Fresh

Advertising: The advertising at Reliance fresh is done with the help of print and broadcast ads, packaging
outer, catalogue, directories, billboards, symbols and logos and audio materials. The Print ads are given
with the help of National Newspapers and Local Newspapers. The Packaging and carry bags include the
brand name and logo.
Catalogue Distribution: Catalogues are distributed sometimes through newspapers and to the customers
inside the store. Directories Advertisements are there in Tata yellow pages, MTNL telephone directory
and Just Dial.
Billboards: Billboards outside the store.
Point-of-Purchase Displays: Point- of- Purchase displays are used at reliance fresh to communicate the
benefits of a products.
Sales Promotions: These are a variety of short term incentives to encourage trail or purchase of a
product or service. The sales promotion at Reliance fresh includes premiums and gifts, Sampling,
rebates, Offers like Buy One Get One and Buy X Get Y etc.
Events: These are company sponsored activities and programs designed to create daily or special brand-
related interactions.
Horizontal and Vertical Conflicts
Conflict with Unorganized retail

Organized Vs. Unorganized Sectors
The Indian retail industry is divided into organized and unorganized sectors. The Indian retail sector is
highly fragmented, with a major share of its business is being run by unorganized retailers like the
traditional family run stores and corner stores. Whereas its only the beginning for the organized retail.
Unorganized Retail Sector
Indian retail is dominated by a large number of small retailers consisting of the local kirana shops,
general stores, chemists, footwear shops, apparel shops, local betel leaf and tobacco shops, hand-cart
hawkers, pavement vendors, etc. which together make up the unorganized retail. The last few years
have witnessed the entry of a number of organized retailers opening stores in various modern formats
in metros and other important cities. Unorganized retailers normally do not pay taxes and most of them
are not even registered for sales tax, VAT, or income tax. People prefer unorganized retail because of
proximity to their houses, more bargaining, home delivery and personalization to name a few
Organized Retail Sector
Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail
chains, and also the privately owned large retail businesses. The reason organized retail is gaining
popularity is because customers get all the brands under same roof which provides them with wide
variety of products, great offers, discounts and good ambience.
India's retail market: US$ 435 billion out of which only 7% organized retail as of 2011
And it is expected to reach 20 per cent by 2020.
By 2020 organized retail is expected to reach to 87 billion US$
Challenges Faced by the Organized Retail Industry as compared to unorganized retail:
International Standards
Inefficient supply chain management
Global Economic slowdown
Real estate issues
Retail sector has no recognition as an industry
Frauds in Retail
Challenges with Infrastructure and Logistics

Thus the organized sector faces a tough challenge from the unorganized sector. And there are other
factors also that pose some more challenges to the organized retail which are not present in the case of
unorganized retail.
Channel Conflicts: Retailers maintain a direct relationship with their suppliers. Due to the complex
taxation structure and geographical spread of India, most FMCG companies have developed regional
distribution and re-distribution network. Cutting out the distribution network will hurt the operating
structure of distributors. Thus channel conflict will act as an impeding factor for the organized retail.