14010536 Retail Marketing SuperVs Kirana

8/6/2019 14010536 Retail Marketing SuperVs Kirana

1/19

BLITZKRIEGby

DINESH KUMAR. M

MAHESH KUMAR. R

KARTHICK. R

RAJESWARI.K

KRISHNAVENI. A


2/19

KIRANA

SHOPS

SUPER

MARKETS


3/19

HISTORY OF SUPERMARKETS

1930: Michael Cullen opens the first supermarket inQueens, N.Y., and names it King Kullen.

1958: The aluminum can is first used as a foodcontainer.

1988: Wal-Mart opens its first supercenter inWashington.

Khadi & Village Industries Commission

1980 -Textiles sector with companies like BombayDyeing, Raymond's, S Kumar's and Grasim first sawthe emergence of retail chains

1990- Food World, Subhiksha and Nilgiris in foodand FMCG; Planet M and Music World in music;Crossword and Fountainhead in books

1996 May first retail store in chennai wasinaugurated by M.S. Subbulakshmi.


4/19

TYPES OF RETAILING


5/19


6/19

SEARCH

COMPROMISE

PURCHASE


7/19

SWOT ANALYSIS -SUPERMARKETSSTRENGTHS

More choice, BrandsVariety, quality, Attractive .Customer can calculatethe money before buyingPackaging, attractive

shopping bags . All in one place.OPPORTUNITIES More retail outlets.To grow as thehypermarkets

WEAKNESSo

Costly.oBilling time is comparativelyhigh.o More brands are availableso the customers confused.

oSecurity.o Stock keeping is difficult.THREATSoThe retail shops aremostly have rented spacerented space, the rents are nowincreasing.oThe upcoming organizedkirana shops.oDifferences in consumerbuying behavior and taxation


8/19

SWOT ANALYSIS - KIRANASHOPS

STRENGTHS

Optimal cost Bargain (vegetables &some groceries)Easy to accessQuick deliveryOwn retail spacing

OPPORTUNITIES Expand as an organizedsupermarketsCan have tie up with the all

the supermarkets and have anlocal brand qualitycontrolled.25 stores in Delhi under thebanner of Provision mart are

joining hands to combine

monthly buying. BombayBazaar and Efoodmart formed

WEAKNESS

o Less Varieties ( Colgatesalt, neem, total)oNo option for selection.o customer to employee is8 : 2oPrivate Labels customerare reluctant to buyTHREATSo Supermarkets andhypermarkets within 2 km

of radius.o Stocking of products isreduced to the sales whichfurther affect sales.


9/19

SURVEY

CUSTOMERCUSTOMER SUPER MARKETSUPER MARKET KIRANAKIRANA

INCOMMINGINCOMMINGRATERATE 5050 2020

NEWNEWCUSTOMERSCUSTOMERS 2525 44FREQUENTFREQUENTCUSTOMERSCUSTOMERS 1010 88

LOYALLOYALCUSTOMERSCUSTOMERS 55 55


10/19

BUSINESS MODEL OF ANRETAIL SUPERMARKET

Consumer proposition Food World -Great shopping experience without a price

penalty, Subhikshas -No-frills shopping at best prices.

Reliance Fresh and More-Value for money, wide range, ina very good ambience.

Overriding the theme price

Use of technology

SKUs (stock keeping units) , barcodes The technicalterminology for this is shelf edge sticker.

Management of shelf edge stickers lead to efficientmanagement of stock turns, seamless management orsupply chain from suppliers to warehouse.


11/19

Supply chain management

Supermarket chains are sourcing their grains and pulses aswell as fruits and vegetables from the wholesale markets.

Sourcing products directly from farmers.

Private labels

Private labels other than pulses and grains are still stuck ata low single digit percentage of revenue.

Significant improvement in the general merchandising

range both in depth and quality.Employment and training

During the first flush of retailing, companies were seriousand diligent about training of their frontline service staff.

The turnover of frontline staff as indeed supervisory staff inthe retail industry is far higher than even the IT industry.Supermarkets, therefore, have given short shift to trainingof frontline staff.


12/19

PRODUCT SUPER

MARKET

KIRANA

SHOPSPonni

rice(20 Kg)

475 520

Onion 25 28

PRICE


13/19

Kirana

They dont promote in anusual way but they deliverthe goods below MRP forthe frequent customers

They do door delivery andtake orders even throughphone.

They do give products on

credit basics

PROMOTION STRATEGIES

Supermarkets

Provide gift vouchers bring more customers

Provide offers for frequent customers

Advertise in local channels , Newspapers


14/19


15/19

PRODUCTS


16/19


17/19

SUPERMARKETEARLIER SUPERMARKET 08

Retail shop- 4000 sq ftMonthly revenue 40 lakh

Revenue /sq. ft- 1000 Rs

Rent- 20 /sq.ft

Utilities -10 Rs/sq.ft

Salary- Rs. 25 sq.ft

Including all the charges( intrest, warehousing

revenue is 15.5 %) But the kiranas are

working at 12% margin

Revenue is at 700 Sq.ft

Rent 50 Rs. Sq.ft

Salary Rs. 30 Sq.ft

This is due t the fact that

the revenue is gone upby 7 % but the rent andthe power spending hasgone up by 6% and 2%.Which results in the drop

in the revenue


18/19

Impact on Unorganized RetailersThere is some decline in employment in the North

and West regions which, however, also weakens overtime.

The rate of closure of unorganized retail shops ingross terms is found to be 4.2 per cent per annumwhich is much lower than the international rate ofclosure of small businesses.

The rate of closure on account of competition fromorganized retail is lower still at 1.7 per cent per

annum.A majority of unorganized retailers is keen to stay

in the business and compete, while also wanting thenext generation to continue likewise.


19/19

Small retailers have been extending more creditto attract and retain customers.

However, only 12 per cent of unorganizedretailers have access to institutional credit and 37per cent felt the need for better access tocommercial bank credit.

Most unorganized retailers are committed toremaining independent and barely 10 per centpreferred to become franchisees of organized

retailers.The premier packaging institute of the country is

chalking out a cluster branding strategy, whichcould help the thousands of kirana shop owners ofthe country to counter the organized mega-retailers such as Big Baazar, Bharti Wal-Mart or

Reliance Retail

14010536 Retail Marketing SuperVs Kirana

Documents

Transcript of 14010536 Retail Marketing SuperVs Kirana