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Macro And Micro Environmental Factors Marketing Essay

Marketing is the procedure where the people who are really mixed up in products are found and they concentrate on these customers; produce the products according to their taste. In this technique the actual customers are located and the marketing section focuses on collecting the opinion from these customers. In order to help the strategist to arrange for the future of the organization an in depth examination on the macro factors influencing the development of the firm are done. This work also focuses on the marketing issues and analyses the perfect marketing combine which will help in taking their product and service to the right people at the most right time.


Reliance fresh is one of the major food sellers in India with its branches spread around India. They are simply in to main stream food creation and syndication where they produce and send out the foods of all types - from the recycleables to the ultimate food products. They have about 570 stores around India and it is now planning to invest more quantities in to this sector within the next 5 years. Its outlet stores are incredibly diverse long and the merchandise; they serve the best number and the product quality to the customers.

With the huge support from the management and the efficient authority of Mukesh Ambani now they want to increase by choosing the right market and the right people.


Macro environmental factors are the following:

1) Demographic

2) Economic

3) Natural

4) Technological

5) Political

6) Cultural

Diagram : PESTEL

Macro environmental products:


Any product should be completely focused on the customer, their needs and mostly dependent on where they live. For example people surviving in higher altitudes might not exactly need air conditioners and trying to sell these AC machines over there will never be a good business. Hence the first step along the way of marketing is to investigate where they are going to sell the products, who their customers are, in how many numbers and review their needs. Stocking more amount of vegetables & fruits in a location like Kodaikanal or in any hill station is a huge catastrophe because people will prefer to buy more fresh stock available in the out side market.

Hence Reliance establishments have to give attention to the marketplaces on the center class of the world who are the majority of their buying populace and hence they have to concentrate on developing the merchandise mainly focusing them.


The current down turn in the economy has a major effect on any companies that are in to the retail sector because they have got a direct impact and folks don't possess very good job offers and pay checks to invest more sum of money. Hence they ought to focus on producing goods at an extremely low priced and sell at competitive prices. The organizations like Reliance already require in selling the goods at a low cost but currently they are facing more problems because they're pressurized by the large amount of the operations cost and although they reduce their cost they cannot sell the goods at the rival prices.

Hence the only strategic suggestion for these people is to produce the goods themselves by purchasing their own farms and bring down the price tag on the suppliers and the center man included. Thus only by moving in for these strategies they can reduce the price of the production and be able to supply the goods to the customers at most lowest price on the market.


Whenever marketing their products they have to sell the merchandise suiting to the flavor of the clients in that particular location or region. Some individuals may like foods very spicy where as some might need foods which are mild. Hence they could need to improve their taste according to the client needs. (Kazmi, A, 1997)

For example Reliance is also reselling packed and ready to cook foods. It has additionally entered directly into Malaysia and Sri Lanka. It can never sell the same products sold in India immediately there, in the same way it cannot also sell the spicy foods sold at one part or point out of India at the other part because the tastes and the likings of folks differ. Hence the interpersonal needs of the individuals also should be considered because the products produced should mainly depend on their tastes and their likings.


The current solutions used by them are out dated and they don't have systems like SAP to investigate about their customers. The recent products produced and sold by them were not current and weren't coordinating the needs with their customers. Since the customer needs weren't met with they failed on the market.

The strategic suggestion for the kids is going set for the latest product like SAP / Oracle Business collection to maintain all the information's up to date about their clients, businesses, suppliers, inventories, etc With the use of the software like SAP thy may bring down their procedures cost because because of the incorrect management of the information they have lost large sums in the functions.


The cost for the business enterprise in India is very less as the labor charges, energy, transport and the electricity are very less and they are looking for additional upsurge in the trade. As increasingly more MNC's are coming into in to India the necessity foe the super marketplaces and hyper marketplaces are raising and they're looking in for more work at home opportunities. The federal government is also very favorable to the new businesses and they encourage new concepts and also offer discounts on the fees in order to promote the trade. Presently Reliance is also exporting Fruits & vegetables and at the same time it also imports the products. Indian government has taken down the import duties and is on an comprehensive campaign to promote the trade and nourishment of the firms.

The recent rise in the fuel prices has highly inspired their growth - because they may have completely changed their strategies; just a bit increasing the price tag on the merchandise.

3. 6. CULTURE:

When ever they are entering directly into any country they have to focus on the cultural needs of the people. They must adopt separate strategies in several parts and always must ensure that they never hurt the feelings in virtually any of their ad or almost any campaign these are in to. Thus they must ensure that the ethnical needs of the individuals are noted and respected

Strategy for targeting a chosen product or the service:

One of the main strategies used by Reliance is that they mainly aim for their product on the specific market - plus they continue steadily to market their product with the lowest costs strategy. They fix the cheapest prices in comparison to their competitors on the market. They also produce products with the higher prices for the several markets and so they are very clear on the various pricing strategies followed based on the income of the people, the particular segment for which they are really focused.



The marketing combination clearly identifies who they are as well as for whom they are producing the merchandise. Especially in Reliance they have a logo design "Cheap and the best" which concentrates both on the quality and the purchase price. More over they provide huge variety of foods like;

Fruits and vegetables

Frozen meats, chicken

Ready to consume frozen items

Cool drinks

Ready to consume Chinese language food items



Frozen Sea foods and so on

Thus even though these are specialised in the fruits & vegetables they also focus on other products to chuck the image of variety among the customers. Thus they provide services which can be completely diverse and of high quality.

Strategist use this to gain competitor advantage over the marketplace because they always concentrate on less price plus more good quality in an identical manor they make use of it to market to individuals who they can get diverse amount of products all under one single roof and they need not proceed to different retailers and spend their times for every and every goods. Moreover since all the food products sold by them are checked and certified the customers need not concern with the side results or any thing related to the product quality. Thus strategist use these to throw a competitor benefit over their opponents who lack this kind of strategy.


They are always the marketplace leaders in offering the goods at the cheapest cost in the market and they're capable of achieving this even through the times of severe economical down flip because they have got started producing their own goods by purchasing their own farms, have produced their own logistics and hence being that they are not with regards to the 3rd people the intermediate costs attended down and therefore they could produce and sell goods at cheaper cost. They also provide customers goods at cheaper price and also give account cards to them. A lot more they choose the more tips they gain; and based on this they gain offers. Reliance also collects everything about their customers and predicated on these information they send information to the customers about the merchandise and will be offering to them.

The strategist uses this as an advantage because they are the lowest cost providers on the market and they provide the products at the cheapest cost. More over in addition they provide quality value your money can buy the customers are putting to choose the goods. Even they are simply spending an extremely bit or buying a tiny product they are given enough importance like others and hence they use this as competitive benefit over the others. Since no-one can offer the products at such a low cost like Reliance it serves as a key technique for them to remain outrageous on the market.

Their major factor for success is they have used this very intelligently in all their advertising and logos depicting that they sell the goods at the cheapest cost and the best quality; and hence they have reached the center of the customers.


Ample Space is one of the major constraint in India which is very much congested. They find it very difficult to park the vehicles and shopping always becomes a hardcore experience. Reliance has rewritten this by making shopping as a nice experience plus they provide ample space for car parking. Their outlets are also completely air conditioned and they're properly purchased. Hence the clients find it super easy to buy their products and they're also supported by the customer support agents to aid in the shopping. More over they have executed the RFID technology like the traditional western countries and hence the customers do not need to hang on long in the queues to buy their products. Hence the procedure of shopping has always become a pleasant experience.

This is one of the greatest benefits for Reliance because every single shop is multiply over 3000 - 4000 sq toes and the customers always think it is super easy to buy their goods which has not been attained by any of their customers

Similarly the strategist are preparing to bring in a full fledged online shopping for all the places across India due to extensive spread of the computer literacy among the people in India. Another major edge for the Reliance is that they have resources i terms of the places and lands around India; and since they own their own lands they are able to do the business all over India. Another key to their growth is the use of the technology very effectively plus they have their own communication network called as Reliance which performs around India and for that reason their communication cost is very cut of. In any organization one of the major over head is the cost put in in the communication, rents paid on their shops and vehicles. But since these anything is owned or operated by Reliance never have any issue in the liquidity as all the expenditures are managed by themselves. Moreover they employ a strong financial position because they periodically invest all their resources or the surplus amounts on the lands which make them very special set alongside the others.


The main advantage for them is their name as the name itself earns reliance among the list of people. Also they offer very good marketing promotions for his or her products by using the brochures in their retailers and the posters and hoardings in all the main places. Regular e mails are delivered to almost all their customers about their services and promotions. They instantly offer certain special offers and they are highly attractive to their customers as one tells relating to this to the other which serves as the inner online marketing strategy because one customer informs his other family members and friends about the nice discounts they had received by using the pamphlets and the brochures received from the stores.

They are very famous in India for providing buy 1 get 1 or buy 2 and get the 3rd one free kind of offers. As in India folks have an extremely huge craze towards the discounts and the offers; these are highly dependent on these promotions and Reliance effectively uses this mindset or the buying habit of the individuals as a competition advantage over others and they utilize it to sell their products. But one good truth about Reliance is that they never sell the reduced quality goods by this method rather they always sell the surplus stock or any food product that is nearing its completion date by this method. They never enjoy reselling the spoilt product to the people.

4. 5. PEOPLE

The people are excellent asset for Reliance because they always utilize this as a strategy for success because they always provide job offers to the local crowd in that particular location. Hence because the people in that particular part are given job they gain in a good will one of the people. Also, they are satisfied they are serviced by their friend or relative whom they have seen several times. In the same way they also supply them with good salary and facilities; hence the migration rate of their employees is very less plus they always adhere to their job.


In order to provide folks good quality of goods they have to apply modern medical options for their costing strategy. They have to implement modern methods in their production, transportation, supply chain, inventory, CRM, communication, supplier management and only by optimizing their procedures they can attain rival advantage in the market. They are currently having problems in their source chain and goods are taking more time to reach the vacation spot than expected. The only way to overcome this issue is to look in for the process of clearly planning their logistics plus they have to extend their logistics or go in for out sourcing a few of their activities. It is very fine they are employed in for removal of the 3rd party dependency but they also need to focus on the reduction of the logistics which is merely possible when they can to acquire more amount of vehicles and extend their current vehicles. This can also help in bringing the products to the hands of the individuals at most right time and also assist in gaining the nice will of the customers.


This is only possible by going in for the supply back from the clients. They have to adjust their current system and deploy more quantity of employees to be able to acquire the view from the customers about the merchandise and shop floor interview is among the finest methods. Other than this they can also acquire the thoughts and opinions from the employees predicated on the review from other web sites plus they can also use the cultural press sites like face publication, twitter, Orkut to accumulate thoughts and opinions about them. This is easily achieved by starting the new space for any kind of the merchandise or the service launched by them and based on the reviews distributed by the general public they can gather the thoughts and opinions and send it to the higher degree of the management to improve or modify the prevailing product. This will help them in producing the merchandise as per the needs of the people complementing in their flavor and the needs. Hence at low cost Reliance can find out about the taste of the customers alternatively than spending in large amount on the surveys.

Feed rear method always helps them to know about the flavor of these customers (Hamel, G & Prahalad, C. K. 1990). Hence they need to always go set for the test marketing where in they test a product in the market and then go set for the full fledged implementation of the product. Through the test stage they can know the flavour of the customers, alter them according to their needs and start it on the market. This method is currently utilized by the strategist organizers of reliance for starting in their products and this can be improved by moving in for altering the techniques using that they collect the view from the clients.

5. Advice:

They should not only concentrate on the Indian market segment alone and they have to focus on entering other areas of the world also. Hence they need to plan to start out lets worldwide by making sensible alliances and joint endeavors. They should arrange for producing diverse products and they have to concentrate on producing goods in different range of the products.

Since India is a growing land it can't spend more on technology and folks are not available to much of the technology. Hence it can go in for producing better products at a cheaper price and adopt more discount strategies to attract the customers.

6. Summary:

Hence this content discusses about the current happenings in the Indian retail industry with reliance as the organization under the study. It also examines the existing business fads in the Indian market, exterior affects, and macro and micro factors. Predicated on these an obvious marketing mix a strategy has been laid for Reliance to improve its existing services and help the competitor benefits over others in the market.

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