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INTRODUCTION TO RETAIL INDUSTRY
The India Retail Industry is the largest among all the industries, accounting for
over 10 per cent of the countrys GDP and around 8 per cent of the employment.
The Retail Industry in India has come forth as one of the most dynamic and fast
paced industries with several players entering the market. But all of them have not
yet tasted success because of the heavy initial investments that are required to
break even with other companies and compete with them. The India Retail Industry
is gradually inching its way towards becoming the next boom industry.
The total concept and idea of shopping has undergone an attention drawing change
in terms of format and consumer buying behavior, ushering in a revolution in
shopping in India. Modern retailing has entered into the Retail market in India as is
observed in the form of bustling shopping centers, multi-storied malls and the huge
complexes that offer shopping, entertainment and food all under one roof.
A large young working population with median age of 24 years, nuclear families inurban areas, along with increasing workingwomen population and emerging
opportunities in the services sector are going to be the key factors in the growth of
the organized Retail sector in India. The growth pattern in organized retailing and
in the consumption made by the Indian population will follow a rising graph
helping the newer businessmen to enter the India Retail Industry.
In India the vast middle class and its almost untapped retail industry are the key
attractive forces for global retail giants wanting to enter into newer markets, which
in turn will help the India Retail Industry to grow faster. Indian retail is expected to
grow 25 per cent annually. Modern retail in India could be worth US$ 175-200
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billion by 2016. The Food Retail Industry in India dominates the shopping basket.
The Mobile phone Retail Industry in India is already a US$ 16.7 billion business,
growing at over 20 per cent per year. The future of the India Retail Industry looks
promising with the growing of the market, with the government policies becoming
more favorable and the emerging technologies facilitating operations.
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LIST OF INDIAN RETAILING BRANDS
1.Easy Day2.More3.Sahara Q Shop4.Big Bzaar5.Wallmart6.V Shope7.Shopify8.E bay9.Home shopee10. Star CJ Alive
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EASY DAY
easyday stores are one-stop shops that cater to every familys day-to-day needs.
They bring together a wide range of relevant goods, high quality products and
great in-store experience and service, all under one roof. These neighbourhood
format stores offer more than 3,000 products at the lowest prices. The wide
assortment of goods include personal care products, stationery, household articles,
hosiery items, as well as daily-need groceries including staples, processed foods,
bakery and dairy products, meat and poultry and fresh produce.
easyday Market provides customers everything a great market offers, bringing
together a potent combination of the familiar and the innovative, all under one
roof. These stores range up to 55,000 sq. ft. and offer thousands of products
displayed in a consumer-friendly manner that brings both entertainment and ease to
the shopping trip. These include items ranging from apparel for men, women and
kids, home furnishings, home ware, cosmetics, a wide range of kids toys, small
appliances, mobile phones and stationery. These stores also have live bakery; meat,
poultry and fish; farm fresh fruits and vegetables; grocery and general
merchandise.
Pan-India Footprint: The first easyday store was launched in Ludhiana and easyday
Market in Jalandhar in 2008. Currently, there are over 210 stores in cities across
Punjab, Haryana, Uttar Pradesh, Uttarakhand, Madhya Pradesh, Rajasthan,
Himachal Pradesh, Chhattisgarh, NCR Delhi, Jammu & Kashmir, Maharashtra and
Karnataka.
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OUR STORES
Through our 3 formats easyday, easyday Market and easyday Hyper, we cater to
households shopping needs across Food & Grocery, Home Furnishings,
Electronics, Consumer durables and Clothing. At easyday, we aim to provide
significant savings to our consumers by being low priced everyday, which means
that our customers can be assured of savings every time they visit our stores
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INTRODUCTION TO MORE RETAIL MARKIT
Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, $40 billion
corporation. The Company ventured into food and grocery retail sector in 2007
with the acquisition of a south based supermarket chain. Subsequently, Aditya
Birla Retail Ltd.expanded its presence across the country under the brand "more."
with 2 formatsSupermarket & Hypermarket.
SUPER MARKET
more. - Conveniently located in neighbourhoods, more. supermarkets cater to the
daily, weekly and monthly shopping needs of consumers. The product offerings
include a wide range of fresh fruits & vegetables, groceries, personal care, home
care, general merchandise and a basic range of apparels. Currently, there are over
513 more.supermarkets across the country.
HYPER MARKET
more.MEGASTORE - is a one-stop shopping destination for the entire family.Besides a large range of products across fruits & vegetables, groceries, FMCG
products,more.MEGASTORE also has a strong emphasis on general merchandise,
apparels & CDIT.
Currently, fifteen hypermarkets operate under the brand more.MEGASTORE in
Mysore, Vadodara, Indore, Mahadevpura, Old Madras Road, Marathalli, Bull
Temple Road & 4th Block Jayangar in Bengaluru, Thane, Saroor Nagar,
Kukatpally & Banjara Hills in Hyderabad, Rohini & Kirti Nagar in New Delhi &
Nashik
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Clubmore. - our loyalty program, currently has a strong membership base of over 3
million Clubmore Members.
Aditya Birla Retail Limited currently has employee strength of around 9,000
people. Key functions are headed by professionals with vast retail experience in
India and globally.
Quality & Value through own labels:
Aditya Birla Retail Ltd provides customers a wide choice of products under
its own labels. The objective is to provide quality products at attractive price points
to customers. Since quality of the products is of prime importance, stringent
quality norms have been set and are followed. All manufacturing partners are the
best in their class.
Own label Food Brands
more., Feasters, Kitchen's Promise, and Best of India
Home & Personal care brands
more., Enriche, 110%, Pestex, Paradise, and Germex
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OUR VISION & VALUES
Vision : "To consistently provide the Indian consumer complete and
differentiated shopping experiences and be amongst India's Top retailers, while
delivering superior returns to all stakeholders".
Values :
Integrity Commitment Passion Seamlessness Speed
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PRODUCTS & SERVICES
MORE. Food: brings you the entire grocery range for your daily consumption at
attractive prices like never before. Try once and the irresistible taste would bring
ou back to more.!
MORE. Cleaning: brings you the whole range of hygiene, personal care & wash.
The new range offers added variants giving you more. choice than ever before!
DAIRY: Milk, Butter, Curd, Ghee, Paneer, Cheese Slices.
FOOD: Cornflakes, Choco Marvel, Pickles, Fruit Drinks, Jams, Instant Soups,
Honey, Papads, Oats, Pasta.
BEVERAGES: Cola, Premium Tea, Green Tea, CTC Tea, Coffee.
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SNACKS: Namkeens, Ketchups, Noodles, Cheese Balls, Vermicelli, Regionalspecialities, Instant Mixes, Soan Papdi.
STAPLES: Rice, Pulses, Sugar, Salt, Atta, Refined Oil, Wheat, Bread, Spices
PERSONAL CARE: Soap, Facial Tissue, Toothbrushes, Liquid Handwash,
Deodorants, Shaving razor, Baby Diapers.
HOME CARE: Toilet Cleaners, Phenyl, Surface Cleaners, Scouring Pads,
Detergents, Detergent Bars, Dishwash Bars, Tissues, Steel scrubber, Room
Freshener, Insect Repellants, Naphthalene Balls, Dishwash Liquid.
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STRUCTURE OF RETAIL BRANDS
The retail industry in India is highly fragmented and unorganised. Earlier on
retailing in India was mostly done through family-owned small stores withlimited merchandise, popularly known as kirana or mom-and-pop stores. In those
times, food and grocery were shopped from clusters of open kiosks and stalls
called mandis. There were also occasional fairs and festivals where people went
to shop. In the twentieth century, infusion of western concepts brought about
changes in the structure of retailing. There were some traditional retail chains like
Nilgiri and Akbarallys that were set up on the lines of western retail concepts of
supermarkets. The government set up the public distribution system (PDS) outlets
to sell subsidised food and started the Khadi Gram Udyog to sell clothes made of
cotton fabric. During this time, high streets like Linking Road and Fashion Street
emerged in Mumbai. Some manufacturers like Bombay Dyeing started forward
integrating to sell their own merchandise. Shopping centres or complex came into
existence, which was a primitive form of todays malls.
Since liberalisation in early 1990s, many Indian players like Shoppers Stop,
Pantaloon Retail India Ltd (PRIL), Spencer Retail ventured into the organised
retail sector and have grown by many folds since then. These were the pioneers of
the organised Indian retail formats. With the opening up of foreign direct
investment in single-brand retail and cashand-carry formats, a new chapter
unfolded in the retail space. Many single-brand retailers like Louis Vuitton and
Tommy Hilfiger took advantage of this opportunity. The cash-and-carry format
has proved to be an entry route for global multichannel retailing giants like
Metro, Wal-Mart and Tesco.
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WHOLESALERS VS RETAILERS
Services provided by the wholesalers to the manufacturers:-
They place orders for the product in advance on the basis of expectationsregarding the demand for the product. This enables the manufacturer to plan his
production and secure the economies of scale.
They may also provide transportation facility by carrying goods from producers togodowns and then to retailers.
They perform advertising and sales promotion activities and also employ expertsales representatives for the purpose.
They provide financial accommodation to manufacturers in the form of cashpayments for goods purchased from them as well as provide credit to them.
They keep the manufacturers updated on the changes in customers' habits, tastes,preferences and fashion.
They also play an important role in fixation of the final prices of the goods.
Services provided by the wholesalers to the retailers:-
They act as the retailers 'buying agent' and saves them from the trouble ofsearching out and assembling goods from several manufacturers.
They inform the retailers about the new products, its uses and changes in theirprices. They also assist the retailers in advertising and selling of the products.
They provide financial assistance to retailers, sell goods on credit to retailers andthus help them to operate with small working capital.
A wholesaler being the ware-house keeper of the market, they protect the retailersfrom the risk of loss arising from holding large stocks of the product.
They may also sort out different grades of products according to quality and packthe goods into small lots for the retailers.
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ENVIRONMENT ASPECT
Retailers can play an important role in ensuring that greener products meet their
potential. By providing greener products, your business will be joining manyAmerican companies who are not only helping improve human health and the
environment, but also gaining a crucial competitive edge as "greener consumption"
increases worldwide. Product and packaging designers, as well as marketing and
merchandizing experts can all play a role in creating a more sustainable supply
chain. By optimizing product design, leveraging your buying power, and working
with your supply chain, you can increase the availability of greener products in a
wide range of product categories.
BENEFITS
Retailers that work with their product supplier partners to offer greener products
experience a range of benefits:
New revenue opportunities by catering to new and growing consumersegments
Improved ability to meet environmental goals Improved product safety and reliability risk Cost reductions through increased energy and material efficiency Improved worker safety and health Increased options and sales of environmentally preferable products Improved options for post-consumer recovery of product and packaging
materials
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PACKAGING DESIGN CONSIDERATIONS
Although packaging often has a smaller environmental impact than the
products they contain, the aggregate impact of packaging is still significantand should be addressed. Product (or packaging) manufacturers can reduce
the environmental impacts of their packaging by:
1.Evaluating the need for the package2.Designing a package so that a minimum amount of material fulfills
the functional requirements. By reducing the quantity of raw
materials used in the packaging, you can minimize its
environmental and economic footprint.
3. Increasing the recycled content of the packaging materials.4.Eliminating toxic constituents. Ensure that all the additives,
adhesives, coatings, and inks that get added to the package are safe
for human health and the environment.5.Using packaging materials that can be recycled or composted once
they have served their original purpose. Design your package so all
components can be easily taken apart and recovered.
6.Supporting materials recovery and recycling. Educate yourconsumers on what they can do with your package once they no
longer need it.
Resources: The Sustainable Packaging Coalition , supported by EPA, also
provides information and guidance on improving the environmental
impacts of packaging.
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An Analytical study of the development of
Retail marketing in India
THE PROCESS OF STRATEGIC MANAGEMENT
A process in management is defined as a perceptible flow of information through
interrelated stages of analysis directed towards the achievement of an aim. There are four
basic elements in the process of strategic management;
Environmental scanning Strategy formulation Strategy implementation Evaluation & control
Environmental scanning:
It involves monitoring the environment, & evaluating & disseminating
information obtained from the internal & external environments. The aim of this is to
identify the strategic factors that may determine the future of the firm. An organization
derive several benefits from environmental scanning including the development of a
common perception, identification of strengths & weaknesses, an understanding of
trends & conditions, & optimum utilization of internal & external information.
SWOT analysis is the most commonly used technique for environmental
scanning. SWOT is an acronym for the strengths, weaknesses, opportunities & threats
faced by a firm. Strengths & weaknesses are within the control of the top management
in the long run. Opportunities & threats are external factors that are outside the control
of the organization. The key strengths of the firm become the core competencies that the
organization can use to gain competitive advantage.
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ENVIRONMENTAL SCANNING FOR
INTERNAL SCANNING
The SWOT analysis of Big Bazaar is as follows:
Strengths:
The strengths of Big Bazaar are it is leading and growing at the fasterpace.
It has many outlets all over India. It has a good customer base. They launched Big-Bazaar a hypermarket with over 1, 70,000
products as the first offering in value retailing segment. Products are
cheaper than the market price by as much as 5 to 60%.
Apparels are cheaper by 25 to 60% while the price difference on theother products varies between 5 to 20%.
The Big-Bazaar has been positioned to the customer as a place wherethe customer can shop for each & everything for which if goes to a
market.
Weakness:
Big Bazaar has not yet trapped the whole market. Facing problems due to political environment
Opportunities
Huge untapped marketThreats
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Competition from organized retail players which are in market andemerging like Reliance, shoppers stop, Wal-Mart
Competition from local retailers.EXTERNAL ENVIRONMENTAL SCANNING
Before Big Bazaar coming to India their strategy was to scan the
environment & find the location where the Mall should be situated. It will
also use various tools such as surveys for getting the preferences of big
bazaar. We got the opinion that Big Bazaar sustain in the market or not,
where it is situated. For gaining the opinions from the local people they
will prepare the questionnaire and get it filled from the people. Then they
will form a focus group for getting more and more of information. They
can also adopt open forum strategy for environmental scanning. For that
purpose we have prepared a questionnaire and collected the data.
Analysis of political and legal factors:
In India there is a political triangle this consist of the municipal
corporation which belongs to Indira congress, the other is MLA which
belongs to Shivsena and BJP and MP which belongs to the national
congress. The congress political people are having contacts with common
people and not much concerned with merchants but contradictory to this
that the BJP and Shivsena they are having more concern about merchants
of the city. As Municipal Corporation is in the hands of congress party and
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they are ready to have big bazaar in India that is the reason they are ready
to provide some kind of perks to big bazaar they are as follows:
Subsidy from octroi, different taxes like land tax and water tax Help in taking over properties and real estate Some concessions from labor laws
Socio-cultural factors:
Now a days in India also proportion of working womens is
increasing and the literacy rate has also increased this will lead intoincrease in standard of living of people. As people are aware about western
culture through various Medias they are very much eager to follow the
western culture. People from talukas are coming to India as it is a district
place for shopping, taking education, for working etc. this also creates
demand. There is a majority of middleclass people in India and it is a most
populated district consisting 13 talukas. The major communities in India
city are Hindus, Muslims, Christians, Jain, Sindhi and Punjabi.
Economic environment:
As this district is having 13 talukas and most of them are having
good agricultural base which ultimately leads to higher seasonal income.
Another one is that most of the people who are residing in India they are
engaged in various jobs and businesses they is the part of regular income
group. So this will lead to higher purchasing power and a huge potential
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market. One more advantage to big bazaar coming to India is availability of
cheap labor.
From the external analysis we came to know that the people residing
the India city are in the favor of Big Bazaar coming to India. The location
preferred by them is Savedi as it is highly developed and accessible area to
all the people.
The Organized Retail Sector Can Be Further Subdivided Into:
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INSTORE RETAILERS
This type of retail format is also known as the brick and mortar format. These retail
stores are in the form of fixed point sale outlets. They are specially designed to lure
the customers. There are different types of stores through which the instore
retailers operate.
RETAIL FORMATS IN INDIA
The retail formats in India can be categorized into the traditional and the modern
forms. The traditional format includes Karanas, street markets, kiosks and
multiple brand stores.
The modern format, on the other hand includes supermarkets, hypermarkets,
department stores and specialty chains.
In discussing about the structure of the retail sector in India we cannot forgo
forecourt retailing and trade parks.
TRADE PARKS
Trade parks are basically business complexes that promote international trade. The
global players here have access to the top Indian exporters. To the buyers this
would prove to be a boon since they do not have travel to far off towns to enter
into business deals with the exporters, especially in places where infrastructure is
very poor. By this the exporters not only enhance their visibility but they also
enjoy a host of other advantages. They can design libraries, studio etc, in order toattract potential customers.
ANALYSIS OF THE SITUATION
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India is standing in the threshold of a retail revolution. The Indian consumer
class consists of a 300 million strong bourgeoning middle-class, expected to grow
to 600 million by 2010. Overall economic growth and increasing disposable
incomes have boosted double-digit growth in consumer spending, enabling retail
sales o grow by 50-100% in 2006.
According to the India Retail Report 2007, total private consumption reached INR
20,000 billion at current prices in 2006. The share of organized retail stood at 4.6
per cent of the total Indian Retail Value of INR 12,000 billion ($270 billion).
However, the organized sector is expected to grow at 35-40% in the next few years
as compared to overall retail growth of 7-8%. The potential for introducing
international brands, ability to make huge capital investment and ease of setting
shop in India is luring foreign players to the industry. Thus, the retail sector will
experience an influx of international retail models and quality outlets in the coming
few years.
Descri ption of the concept
Manufacturers can look at the following alternatives to increase sales volume:
1) Sales promotion and advertising in malls
Most supermarkets and hypermarkets promote in-house offers to attract customers.
They also spend a lot on visual display of promotions. These costs can be shared
by the company, thus increasing their stake in the sales of the mall.
a) Retail outlets will be supportive of sales promotion and advertising by
companies inside malls for two reasons:
- it increases sales of the entire category as such
- it reduces burden on malls to attract/educate consumers towards particular
products.
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For the FMCG companies, return on advertising in terms of increased sales (or
market share) will be more pronounced due to point-of-purchase promotion.
b) Manufacturers can share costs of advertising and make sections of the store
more attractive in return for slightly lower margins to the retailers. They can set up
small kiosks or shelves to display their own products. This involvement of the
company in the operation of the mall will also help build a strategic relationship
between the two.
2) Use malls to target niche segments
Malls and supermarkets typically attract the middle and upper-middle class
consumers who have considerable spending power as well as brand awareness.
Thus manufacturers can use this channel effectively to launch specific variants of
existing products or niche products for which they are able to Concept Paper
Indian Institute of Management Ahmadabad attract a premium from such
consumers. These products should be launched exclusively in the malls and not
through Kirana stores. The presence of a larger product range will increase the
attractiveness of shopping at a mall for the consumer, making it a win-win
situation for both.
Indias retail market is at its pinnacle and is drawing huge attention from both
global and local retailers.
Reasons for Indias high growth rate in the retail sector are:
High growth rates- Indias GDP is projected to grow by more than 8 percent in
fiscal year 2008; projections for 2009 are a more modest at about 7 percent
Untapped growth potential- Organized retail, which still accounts for less than 5
percent of the market is expected to grow at a compound annual growth rate
(CAGR) of 40 percent to $107 billion by 2013. Indias overall retail sector is
expected to rise to $833 billion by 2013 and to $1.3 trillion by 2018, at a CAGR of
10 percent.
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Growing Purchasing Power- Consumer spending is on a sharp rise. In the last
four years the consumer spending has grew by astounding 75 percent. This can be
attributed to the significant rise in the disposable incomes of Indias young
population. It has to be noted that more than 33 percent of Indian population is
below the age of 15.
BENEFITS OF RETAILING
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Retailers play a major role in the transfer of goods and services from the
manufactures to the end users. In this process retailer delivers many benefits to
customers, manufactures, wholesalers, and the economy.
Benefits to customers
Retailers act as a buying agent for consumers. They perform various business
activities that increase the value of the goods and the service they sell to the end
users. As buying agents a retailer performs various activities to satisfy the end
consumers. These activities include
1. Breaking bulk2. Providing assortment3. Holding inventory4. Providing after sales services5. Providing information
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Benefits to Manufactures and wholesalers
Manufactures and wholesalers consider retailing as a channel for delivering
their product /services to the end consumer. By selling services retailers provide
the manufactures great revenue, which could be reinvested in production. Thus
retailers play major role in smoothing out the variation between the production and
sales of the manufactures product.
Benefits to the economy
The retailing business is the largest privet industry in the world with
turnover of US $6.6 trillion. Retailing plays a crucial role in the management of
world economy and retailers constitute a tenth of the fortune 500 companies. In
INDIA retailing accounts for over 10% GDP and around 8% of the employment
only next to the agriculture industry.
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CONCLUSION
The retail sector has played a phenomenal role throughout the world in
increasing productivity of consumer goods and services. It is also the
second largest industry in US in terms of numbers of employees and
establishments. There is no denying the fact that most of the developed
economies are very much relying on their retail sector as a locomotive of
growth. The India Retail Industry is the largest among all the industries,
accounting for over 10 per cent of the countrys GDP and around 8 percent of the employment. The Retail Industry in India has come forth as
one of the most dynamic and fast paced industries with several players
entering the market. But all of them have not yet tasted success because
of the heavy initial investments that are required to break even with
other companies and compete with them. The India Retail Industry is
gradually inching its way towards becoming the next boom industry.
For launching Big bazaar in India city is companys mission to
expand the business. For this purpose company is carrying out many
marketing strategy. To study this marketing strategy I will be visiting the
mall and also the manager to collect the data from them. Also Ill be
collecting data from the customer as what strategies they liked.