TEAM MEMBERS

Mavoori.Tarun-22BSPHH01C0644
Manu Priya-22BSPHH01C0636
Naman Patel-22BSPHH01C1481
Jyotsna Menon-22BSPHH01C0658
Mayank Mani -22BSPHH01C0645
Mukund Maskara - 22BSPH01C0683
Nabeel- 22BSPHH01C0698
Nilesh Das-22BSPHH01C0743
Mehak Kaul- 22BSPHH01C0656
Neha Chaudhary-22BSPHH0714
PRICING STRATEGY AND
GROWTH OF DMART
 Radhakishan 2002 Mumbai, 38952
Damani India

INTRODUCTION YEAR NO. OF

FOUNDE ORIGIN
TO DMART R FOUNDE
D
EMPLOYEE
S

Public $3.3 billion $35.52 billion $170 million

COMPANY ANNUAL MARKET NET

TYPE REVENU CAP PROFIT
E
ABOUT THE FOUNDER
1. Radhakishan Shivkishan Damani is an Indian billionaire
investor, business magnate and the founder of DMart. He also
manages his portfolio through his Investment firm, Bright Star
Investments Limited.
2. Damani left his ball bearing business and became a stock market
broker and investor and made profits by short-selling stocks that
were inflated by illegal means by Harshad Mehta in the 1990s.
3. He quit stock market in 2000 to start his
own hypermarket chain, DMart, setting up the first store
in Powai in 2002.
 COMPETITORS ANNUAL BUSINESS MODEL
REVENUE
Big Bazar $1 million No mediators to have greater profit
COMPETITORS margin. They eliminate middlemen.

OF D-MART Big Basket $386 million  Inventory model that helps them incur
fewer loss on perishable item
 Hyper-local delivery model that tied up
with 1800 local stores that ensures
delivery on time.

Spencer’s $263 million  E-commerce that helps them to tie up

with local suppliers and logistic
provider in international market
 Social media-oriented business model
that helps them to enter new market at
low cost

Aditya Birla Retail $ 3.53 billion  Customer relationship management

which helps them establish long lasting
relationship with its client.
 • DMART offers products at less than competitive prices. It has
PRICING succeeded in creating an image as low-cost retailer and has attracted
STRATEGY OF customers who are price sensitive.

DMART
• Regardless of location, the company is able to provide affordable
prices to its customers.

• The price is usually less than the MRP for vegetables , fruits, and
medicines.

• During festival season , low prices make customers buy products in

bulk quantities which results in a huge volume of sale .

• DMART has been one of the most successful entities in the country
because of its pricing strategy.
 • Low operational costs and fewer expenses - The company works in
GROWTH launching more and more products in fewer spaces for the customers to
STRATEGY OF choose from, which can also be summed up as a low-interior-cost

DMART concept to reduce the operational costs.

• Ownership model - Damani, the company’s founder, had decided quite

early in the game to adopt a store-ownership model.The company owns
around 80% of all the stores that it is credited for.

• Affordable rates of products- It is usually observed that in the FMCG

sector, the retailers pay off the credit to their vendors within a period of
3 weeks whereas DMart pays off their credit within a week. This helps
the company benefit in many ways including the huge discounts that
they get from the vendors.
 • Target customers - DMart’s target customers are the middle-class
GROWTH groups and lower-middle-class groups, those who often want to buy
STRATEGY OF low-cost goods that come with hefty discounts but are of good quality.

DMART
• Sales channel - DMart opts for a B2C (Business to Consumer)
business model, where the company sells the products directly from
manufacturers to the end-consumer. The company purchases its goods
in bulk and this eliminates the middleman.

• Slotting fee - DMart levies a ‘Slotting Fee’. It is a fee that DMart

charges from the manufacturers to store their products on the shelves of
DMart stores. DMart, on the other hand, with its appealing marketing
strategies and attractive discounts ensures that the products are sold out
as quickly as possible.
FUTURE
GROWTH

• Estimated annual growth of 20%

to 25%.
• Achieved its highest ever
milestone of opening 50 stores in
a year.
• Attempts to scale up its
unprofitable E commerce
business.
FUTURE
GROWTH

• Intends to boost its store count

by five as it seeks to grow
market share.
• Likely to add 135 DMart outlets
by March 2024.
• Aims to tap India’s teeming
population.
 • To provide insights about the success of D-Mart in
India.

OBJECTIVES OF
OUR STUDY • To study the income of the customers of D-Mart.

• To understand customers’ overall behavior and

satisfaction with D-mart products and services

• To study D-Mart’s performance compared to its

competitors
 • The survey is conducted through a questionnaire
method and the sample chosen was the peer groups.
METHODOLOGY
OF STUDY • We have a total of 12 questions carefully designed to
find the objective of our study.

• In the questionnaire, the answers were multiple choice

questions where people had to answer on a scale of 1 to
5 where 1 represented “Highly Disagree” and 5
represented “Highly Agree”

• Tools for analysis:

• Bar graph
• Pie chart
ANALYSIS(SAMPLE OF GRAPH
2/10)
ANALYSIS (SAMPLE OF PIE
CHART 2/10)
DMart attracts its customers by giving discounts Our team objective for this question is to find out how many agreed with our questions and determined that most of the survey agreed with
this question. Both males and females of different age groups are showing positive responses to the statement.

Do Customers prefer DMart over other general The majority of males and females are showing positive responses to the statement. Determining that the general urban population of India
retail stores prefers DMart over other stores and through personal investigation we determined that DMart acts as a one-stop shop of there daily needs.

DMart is more appropriate as compared to the From this question our team wanted to find the transition of the general public from the old store method to a collective mall model where you
traditional retail store model will find many needs fulfilled in one place. And found that specifically Male members below 10 lakh income of various age groups show
positive response towards the statement.

Amount of purchase reduced from traditional Males and females of age 40 or above mostly agreed with this question and if we are seeing from general purchasing activity done in India it’s
retail stores after coming of DMart majorly done by parents or person who is the main income earner of the family. So going through average they are major shifters from old
stores to DMart.

DMart should provide high-quality products to In this Citizens with a salary above 20 LPA and age above 24 years shows a positive response to the statement. Indicating that DMart is not
attract high-income customers radicalized to one part of society but became commonplace in purchasing.

DMart needs to promote its offers and goods This question was asked to determine the future perspective of DMart entering the online market and forecasting its demand. Females of
online also different age groups are showing positive responses to the statement.

Billing process should be improved by DMart as In this, we are determining how the customers react to the long queues of DMart and we determined that most of the respondents were
customers are dissatisfied with it unhappy with its billing process. Males of different age groups were more dissatisfied than women of the same age

Are the Middle-income population the main This question was asked to determine the perspective of respondents towards the DMart customer base and the results of our survey also
customers of DMar determined same that MIDDLE-INCOME people of India are its main target. (Middle income constitutes ₹6lac- ₹10lac).

DMart always opens its stores in a residential As DMart customer strategy, they have opened their stores majorly in urban residential areas and our respondents also agree with it.
area as its easy catchment

DMart does not have high end interior: To this question the respondents were a bit spectacle and were not of highest agreement but still according to them their interior were normal
or satisfactory but not with high look.
CONCLUSION

• Consumers of D-mart
are satisfied with the
services provided by D-
mart.
• What contribute to the
popularity of the
demand is the service.
• D-mart is one of its
largest competencies.
CONCLUSION
• Techniques and
strategies employed by
D-mart.
• D-mart has limited
segmentation.
• Most of D-mart's
customers are middle-
income and prefer D-
mart for its price, value
for money, offers and
discounts.