presentation on retail industry

RETAIL MANAGEMENT
 PRESENTATION BY
B.H.M.SHASHIDAR SHARMA
USN NO: 1SI14MBA62

RETAILING
Retailing encompasses the business activities involved in
the selling goods and services to consumer for their
personal, Family ,or Household use. It includes every sales
to the final consumer –ranging from car to apparel to meal
at restaurants to movie tickets.
Retailing is the largest stage in the distribution process.

 Retailing today is at a complex cross roads. on the one hand
and, Retail sales are at there highest point in history.
 “WAL-MART” is the leading company in the world in the team
of sales-ahead of EXXONMOBILE,TOYOTO&
manufacturing giant.

INTRODUCTION
 In India retail industry has presently emerged as one of the
most dynamic and fast paced industries as several players
have started to enter the market.
 It account for 10% of the country GDP and around 8% of
the employment in India.
 The country today 5th largest global destination in the
world for retail.

MARKET SIZE
 India’s retail market is expected to double to US $ 1
trillion by 2020 from US $ 600 Billion in 2015 driven by
income growth , Urbanization & attitudinal shifts.
Highlighted the Boston consulting group & Retailers
Association of India report.
 While the overall retail market will grow @ 12%/annum.
 Modern trade will grow twice as fast@ 20%/ annum.
 Traditional trade @ 10%

INVESTMENT
 According to the Department of Industrial Policies
and Promotion(DIPP) Some of the companies invested
in retail business as follow:
 Pay tm plan to set up 30,000 to 50,000 retail outlets
where its customers can load cash on there digital
wallet.
 The company is also looking to Enrole retailers
mostly Kirana stores as merchants for accepting the
digital payments.

 Mobile wallet company Mobiwik has partnered with
Jabong.com to provide mobile payments service to
customers.
 Data wind has partnership with Home shop 18, and Data
wind will jointly launch special sales programs across the
broadcast.
 Amazon Inc and Flipkart India will invest nearly 2,300
Crores. In the near term as they plan to acquire more
customers in the country fast growing online retail stores.
 Abu-Dhabi-based Lulu group plan to invest 2,500,crores in
fruits and vegetables processing unit. And an integrated
meat processing unit. and modern shopping mall in
Hyderabad Telangaana.

Overview
 New technologies are improving there retail productivity.
 There are lot of opportunity to start a retail business.
 Retailers faces a many challenges weak economy in the
recent years has major impact on many retailers. And there
suppliers and consumer around the world.
 Customer service expectations are very high at a time
when more retailer offer self-services and automated
system.

Key issues Retailers facing
 How can we best serve our customers while earning a fair
profit?
 How can we stand out in the highly Competitive
environment where customers has many choices?.
 How can we grow our business while retailing a core of
loyal customers?.
 Retail decisions makers can best address these questions
by fully understanding and applying basic principles of
retailing in the well structured, systematic, and focused
retail strategy.

REASON FOR STUDYING
RETAILING
 Retailing is the important field to study because of its
impact on the economy, its function in the distribution and
its relationship with firms selling goods and services to
retailers for there resale or use.
 For students carrier opportunities, as highlighted with a
career in retailing.

The impact of retailing on
Economy
 Retailing is the major part of U.S and world commerce
 Retail sales and employment are vital economic
contributors, and it trends often mirror nation overall
economy.
 Retail in India accounts for over 10% of the country GDP
and 8.5% of total employment.
 Traditionally unorganized retailing, which has significant
competitive strengths that include consumer good will,
credit sales, amenability to bargaining. Ability to sell loose
items ,convenient timing, and home delivery.

SHARE OF ORGANISED RETAIL IN
SELECTED COUNTRIES,2006
COUNTRY Total Retail sales(mn) Share of organised
retail(%)
USA 2,983 85
JAPAN 1,183 66
CHINA 785 20
UNITED KINGDOM 475 80
FRANCE 436 80
GERMANY 421 80
INDIA 322 4
BRAZIL 284 36
RUSSIA 276 33

The 10 major Retailers in India
survey in 2010
RETAIL CHAIN FOUNDED REVENUES
Future group 1997 32,360
RPG 1996 1,67,160
Tata group(trent) 1998 2,95,070
ITC(wills, choupal sagar ) 2000 2,43,600
Reliance Retail 2006 1,65,58,060
Bharthi airtel 2007 ND
K Raheja(shopper stop) 1991 120,690
Land mark 1998 11,490
videocon 1985 15,000
Adithya birla retail 2007 1,146,68

TOP RETAILERS IN INDIA 2014-15
 1:PANTALOON RETAILERS
 2: K RAHEJA GROUP
 3: TATA GROUP
 4: RPG group
 5:LANDMARK GROUP
 6:BHARTI-WALMART
 7:RELIANCE
 8:AV BIRLAS GROUPS
 9: METRO
 10:VIVEKS LTD

PRODUCTS RELATED TO RETAIL
INDUSTRY
 Groceries
 Fruits & vegetables
 Oils and ghee
 Snacks & savories
 Beverages
 Health drinks
 Processed foods
 Confectionary
 Ready to eat foods
 Frozen foods

 Dairy products
 Bakery products
 Personal care
 House hold needs
 Cleaning aids
 General merchandising.

A TYPICAL CHANNEL OF
DISTRIBUTION
MANUFACTURER
WHOLESALER
DISTRIBUTORRETAILER
FINAL CONSUMER

The Important of Developing and
Applying a Retail Strategy
 Define the type of business in terms of the goods or
services category and the company specific orientation.
 Set long –run and short run objectives for sales and profit,
market share ,image, and so on.
 Determine the customer market to target on the basis of
its characteristics such as gender, income, and needs such
as brand preferences and products,.
 Implement an integrated strategy that combines the store
Location ,product Assortment, pricing, and advertising
and display to achieve objectives.

RETAILING CONCEPT
 CUSTOMER ORIENTATION: The retailer determine
the attributes and needs of its customer and Endeavour to
Satisfy needs to fullest.
 COORDINATED EFFORT: The retailer integrates all
plans and activities to maximize efficiency.
 VALUE DRIVEN: The retailer offers good value to
customers, whether it be upscale or discount .
 GOAL ORIENTATION: The retailer sets goals and then
uses it strategy to attain them.

RELATIONSHIP RETAILING
 It’s the seek to establish and maintain the long term bonds
with customers, rather than act as if each sales transaction
is a completely new encounter.

PEST Analysis for organized Retail
sector
POLITICAL
 Taxation policy-VAT,ST and others.
 Low access to banking facility
 Policy and Regulation
ECONOMICAL
 GDP Growth rates
 Foreign investment
 Money supply
 Inflation
 Consumer benefit

SOCIAL
 Corporate social responsibility
 Environmental safety
 Ease of shopping
Technology
 Online shopping
 Retail media network
 ERP System
 CRM System
 Customer Profiling and satisfying their needs

RETAIL MANAGEMENT SKILLS
 Its fact that the retailing industry is in its starting phase in
our country. The benefit of organized retailing will only be
felt once in a equitable scale is achieved.
 The need for specialized skills is increasingly felt in area
of
 Strategic management-strategizing, targeting and
positioning. Marketing and site selection .among others.
 Merchandise management –vendor selection, inventory
management& so on.

 Store management –layout, display, customer relationship,
inventory management ect.
 Administrative management –Human resource, finance,
marketing and so on.
 With need of specialized skill set, retailing has become a
specialized area of knowledge and training.
 Many Top retail stores in India seeking information
planning from IIM Branches and All top B-School
students ideas.

AGE OF RESPONDENTS
AGE NO OF THE
RESPONDENTS
PERCENTAGE
Below 20 3 6%
20-30 18 36%
30-40 14 28%
40-50 10 20%
50 & above 5 10%
Total 50 100%

CHART SHOWING THE AGE OF
RESPONDENT
Sales

SUPPLY CHAIN IN RETAIL
INDUSTRY
 They form partnering with 3PLs highly beneficial. many
individual logistic service providers such as Gati, safe
express ,AFL logistics are now expanding like never
before and can potential candidate for a long term
relationship.

LEVEL 1 LEVEL 2 LEVEL 3
TRANSPORTATION INVENTORY
MANAGMENT
ROUTE OPTIMIZATION
FREIGHT FORWARDING ORDER FULFILMENT CROSS DOCKING
WAREHOUSING PALLET TRACKING NETWORK
MANAGMENT

INDIAN TOP FOOD AND GLOCERY
RETAIL
 NATURE BASKET.COM
 ADITHYA BIRLA MORE LTD
 BIG BAAZAR (FUTURE GROUP)
 RELIANCE FRESH
 SMART RETAIL LTD
 BARATHI WALMART LTD
 NMART LTD
 VISHAL MART
 SUBHIKSHA

NATURE’S BASKET
 CEO-Mohit khattar ( MD)
 Godrej Nature’s is a retail venture of the Godrej group. It
was started in 2005 as a single fresh food store. Its stores
are strategically located in Mumbai, Delhi, Pune ,
Bangalore, Hyderabad. Ekstop shop private ltd is an
online store dealing in grocery and daily essential It
processes around 165 orders/day. It was founded in 2012.
and started its operation from Mumbai. Its gradually
expanding other cities as well as like Pune, Delhi,
Bangalore ect.

 EKSTOP.COM competent with Bigbasket.com,
Grofers.com with acquisition by Godrej Nature’s basket.
 Its total operation is 60,000 crore's in Retail industry.
PARENT COMPANY Godrej group
Category Food retail
Sector Lifestyle and retail
Tagline World food store
USP International and Gourmet food
selection

STP
Segment Super market retail segment
Target Up market urban consumer
Position To be India’s foremost retail destination
for fine foods from across the world.
The gourmet retail chain stock the best
international and domestic wines, cold
beverages, exotic and rare ingredient.
Meals, sauces, preserves and packaged
food from around the world.

SWOT ANALYSIS
Strengths Differentiates itself from other supermarket by offering a wide
variety of international brands of varied food products
Offers value-added such as home delivery , customer credit,
customer loyalty programs, clubs ect.
Extremely friendly and well trained staff.
Brand images
Weakness The store operation have not still achieved breakeven financially.
Future growth calls for huge investment expenditure and debt.
Opportunities Gourmet sector in India is still small and niche.
This segment has massive buyer power, is relatively price sensitive
and growing fast.
Threats Rising attrition rates and labor cost in India
Recession in real estate sector and raising cost of land development.

COMPETITORS
Competitor
Lemarche
Carrefour

presentation on retail industry

 The Group's aim into the retail sector began in December
2006 when it acquired Trinethra, the chain of stores based
in south India. May 2007 saw Aditya Birla Retail Limited
(ABRL) launch their own brand of stores called 'More.'
ABRL's vision is "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".

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.

 Type Public
 Industry Retailing
 Founder(s) Kumar Mangalam Birla
 Headquarter Mumbai
 Key people Mr. Kumar Mangalam Birla
Mr. Pranab Barua
(Business Director- Apparel and Retail),
Mr.Russell Berman (CEO-Hyper Markets
Mr. Vishak Kumar (CEO- Super Markets)

`
 Products Supermarket, Hypermarket
 Employees over 1,28,000
 Website: morestore.com

Supermarket & Hypermarket
 Supermarket More.
 Conveniently located in neighbourhoods, more. Super market scatter
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 & a basic range of apparels. Currently,
there are over 600 more. Super markets across the country.

Hypermarket 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

 More is a pan-India retail chain operated by the Aditya
Birla Group company.
 it has 509 supermarkets and 15 hypermarkets across
the country.
 It plans to increase it to 1,300 supermarkets and 65
hypermarkets respectively by 2016.

 The more. for you advantage: more. Promises a world-class
pleasurable hopping experience to Indian consumers in their
very own neighbourhood .More Quality more. Variety ,more
Convenience and more. Value are the four delivery cornerstones
of the more. chain of supermarket stores.
 More. Quality
 Every product at more. goes through a thorough quality check
process ensuring 100 per cent more. satisfaction.
 More Variety
 Apart from a large range of national brands, shoppers will also
find a section called the Best of India, which is an assortment of
unique products sourced from across India The wide range of
fresh fruits and vegetables along with private label offerings
under brand names Value, Select and Premium ensure that
more. variety is a promise delivered across the store

 Aditya Birla Retail Limited provides customers
products under its own labels.
 Private label Food Brands include Feasters,
Kitchen's Promise, and Best of India.
 Home & Personal care brands include Enriche, 110%,
Pestex, Paradise and Germex.As per a report in
Economic Times, Aditya Birla Retail Ltd ( ABRL) with
its 500 + 'More' branded supermarkets and 14
hypermarkets reported sales of Rs 1,966 crore and a
net loss of Rs 650 crore in the year ended March 2012.

 The company has accumulated losses of Rs 2,984 crore
since it entered the segment over six years ago.
 The third largest supermarket chain in the country
after Future Group and Reliance Retail has decided
to increase its borrowing limit to Rs 7,500 crore from
Rs 5,000 crore

 The firm plans to open 100 supermarkets and 6-8
hypermarkets this fiscal year.
 More supermarkets are neighbourhood stores with the
core proposition of offering value, convenience and
trust to the customers and averaging 2,500 sq ft area.

 Currently, two hypermarkets operate under the brand
more MEGASTORE in Mysore and Vadodara
 Club more. - loyalty program, currently has a strong
membership base of over 1 million members.

PROMOTION ACTIVITIES
 DISCOUNT CARDS
 MORE CLUB MEMBERSHIP CARD
 PROMO CODES COUPONS
 WEEKLY ONE DAY DISCOUNT ON SELECTED
ITEMS
 FESTIVAL OFFERS
 FAMILY MEMBERSHIP CARD

Introduction-Food Bazaar & Reliance Fresh
Retail Mix Strategy
1
2

Food Bazaar-Introduction
• Food Bazaar –Part of Future Group’s Pantaloon Retail ltd.
• Owned by “King of Retail” -Kishor Biyaani
• Started in 2002 with the western values of convenience,
cleanliness and hygiene and Indian values of see-touch-feel
• Presently have 173 Food Bazaar stores in 73 cities and 65 rural
areas.
• Positioned as Bazaar having quality products at affordable
and economic prices

Reliance Fresh-Introduction
• Part of Reliance Retail Ltd headed by Mr.Mukesh
Ambani
• First store in October 2005 at Hyderabad
• 453 Stores till date in 45 cities
• Positoned as ‘friendly neighbourhood store
• committed to bring high quality fresh food to the
• customers at an affordable price’

Retail Mix Strategy
Retail Mix
Strategy
Operating
Procedures
Product
offerings
Pricing
Store
atmosphere
Customer
services
Promotion
Store
Location

Store Location
FOOD BAZAAR
RELIANCE
FRESH
 Accessibility
 Shop-in-Shop(SIS) format with
Big Bazaar ,stand alone formats
–in malls,metro stations etc
 Number Of Stores
 173 Food Bazaar stores in 73
cities and 65 rural areas.
Accessibilty
 Neighborhood store format-
found in markets or localities
near to the customer.
 Number Of Stores
 453 Stores till date in 45 cities
Customer Segmentation-
•Both targets middle class customers
•Cater to the large and growing young population

Product Offerings
1. Clear divisions in Food Bazaar [Head to Toe,Fabric
Kleen, Chakki Fresh etc]
2. Reliance Fresh focusses on food items whereas Food
bazaar focusses on overall health care of a
customer,example-Soaps
3. The stock keeping units of Food Bazaar is too
huge,example-Surf Excel-5 Kg Packs
4. Private brand 'Reliance Select' is easily visible wheras
its not with Food Bazaar's 'Tasty Treat'

Pricing Tactics
 Reliance Fresh and Food Bazaar differentiates themselves
from other small retailers on basis of low prices.
 A much larger scale of operations & bundling strategy
provides Food bazaar a clear edge on pricing part.
 Food Bazaar also deals in EDLP (Everyday Low
Pricing),Special events pricing and Psychological pricing
 Reliance Fresh prices come close to competing with Food
Bazaar only in vegetables and fruits section.

Customer Services
 Membership Cards
 Reliance Fresh
 Food Bazaar
 Employee Interaction
 High in Food Bazaar and less in Reliance Fresh

Promotional Methods
Food Bazaar Reliance Fresh
 Below the line Promotion
 Coupon discounts,, gift with
purchase, competitions and prizes,
money back offers and exchange
offers, special occasions.
 Above the line promotion

o Give advertisement in newspapers,
TV, Internet(own website which
gives online shopping services
o Partnership with Bigfix, Big FM
92.7.
o Celebrity endorsement (Vidya
Balan)

 Main Idea-make bulk
purchase
 Discount scheme days-
Saturday and Sundays
 Reliance Fresh membership
card- Reliance One

Observations
Basis Reliance Fresh Food Bazaar
Store Management Good Good
Shopping Experience Comfortable Satisfactory
Environment Peaceful Noisy & Unpleasant
Discounts Low High
Location Markets Malls
Parking Bad Good
Quality Good Good
Air Conditioning Effective Average
Cleanliness Good Average

presentation on retail industry

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