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Retail visit at MORE Megastore

Project Report

Submitted by-Sachin Pratap SinghMBA3 (1357)Universal Business School

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• Introduction…………………………………………..3• Retail trend in india………………………………...4• Grid layout of MORE………………………………..5• Socio economic importance of More Megastore in andheri east……………………………………….6-7• Identifying the Retail Type and its Product/Service Categories…………………………..8-9• Competitive Priorities………………………………..10• Value Proposition……………………………………11• Strategic Drivers of the Consumer Electronics and Durables Industry………………………………12-15• Marketing Mix Strategy applied by More megastore……………………………………..16-18• Conclusion……………………………………………19• Bibliography……………………………….…………6

Title and Content

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• More is a pan-India retail chain operated by the Aditya Birla Group company, Aditya Birla Retail Ltd. Currently 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.

• Aditya Birla Retail Limited provides customers products under its own labels. 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.

INTRODUCTION

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• India’s largest industry.• It accounts for 10% of the India’s GDP and around 8%

of the employment.• India's fastest growing sector with 5% compounded

annual rate.• Ranked 2nd in a Global Retail Development Index of

30developing countries• Rated 5th most attractive emerging retail market• Expected growth US$ 175-200Billion by 2016, of

which organized retailing makes up 3percent or US$ 6.4 billion

Retail Trends In India

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Grid layout of MORE

This is a Grid store layout

                                                                                                                                                                                                

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I have chosen the More megastore located in Andheri east Mumbai. It has a very pressure free atmosphere. To start off with, the More Megastore in Andheri is a freestanding or a stand-alone store. It is isolated and has no adjacent retailers with which they have to share traffic. This type of store has quite a few advantages which work in the favour of More Megastore-Andheri. Advantages• Reduction in costs are possible, leading to lower

prices• High flexibility in terms of timings and larger

space may be obtained.• No competition in close proximity.• Relatively low rental costs.• Better road and traffic visibility is possible.• Adaptation of facilities according to individual

specification.• Easy parking can be arranged.

Disadvantages • Cost such as outside lighting, security, ground

maintenance, trash collection is to be borne by More Megastore.

• They have a limited trade area.• Continuous and consistent traffic will not flow

long distances to visit a specific store.

Socio economic culture

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India’s retail sector remains highly fragmented: 97 percent of the market belongs to unorganized outlets; just three percent to organized ones. India’s retail sector remains one of the few large unconsolidated markets in the world. The last few years have witnessed an sudden increase of organized retail formats like supermarkets and hypermarkets in an otherwise fragmented Indian retail market. India is witnessing an unparalleled consumption explosion.

The economy is growing between 8 %– 9 % and the improvement in income along with factors like favourable demographics and growths in aspiration consumption are the drivers for retail in India. In 2005, the retail industry in India amounted to Rs. 10000 billion accounting for about 10% growth to the country’s GDP. The organized retail market in India out of this total market accounted for Rs. 350 billion which is about 3.5% of the total revenues. This retail market in Indian retail sector has crossed more than Rs. 1000 billion by 2013.

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At more for you they are committed to deliver quality & value to our customers and have a range of private label brands as they will as commercially branded products, offering - 100% satisfaction on the quality of the products & services offered.

More for you hosts a range of private label brands across various categories that follow stringent quality norms, and are available in attractive prices and packaging. Our premium products give you the opportunity to enjoy the difference and quality that is equal to or better than the market's leading brands, but at competitive prices. Recently our private label brands received the coveted

• "The Most Admired Private Label"

• Golden Spoon award at the Food Forum India. they offer a wide range of assortment of over 4000 products, ranging from fresh food to beverages, grocery to household care products. Our range covers everything, from day-to-day essentials to traditional favorites, from delicious treats, to healthy alternatives. To ensure the freshest supply of fruits and vegetables for you, they have built direct linkage with the farmers.

Identify the Retail Type and its Product Categories

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SUPERMARKET

Bakery

Beauty Concepts

Beverages

Basic Apparels

Cutlery & Cookware

Fruits & Vegetables

Frozen & Dairy Products

FMCG Products

Home Care Products

Home Needs & Home Upkeep

Home Decor Products

Mobile Store

Personal Care & Cosmetics

Processed Food

Pharmacy

Ready to Cook/Prepared Food

Product Categories

HYPERMARKET

Apparels -Men/ Women

Audio & Video (A & V)

Bakery Beverages

Books and Audio & Video

Computer & Accessories

Do it yourself

Auto Accessories

Electronics

FMCG Products

Footwear

Frozen & Dairy Products

Fruits & VegetablesFurniture

General Merchandise

Home Care Products

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More. promises a world-class pleasurable shopping experience to Indian consumers in their very own neighborhood.• More. Quality• Every product at more. goes through a thorough quality

check process ensuring 100 percent 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.

• More. convenience• Convenient locations within easy reach of consumers and a

neat, cheerful and friendly layout, enough isle space, signage that speaks the consumer's language aiding in identifying what she has come to shop for easily, all go a long way in ensuring more. convenience.

• More. value• More. promises best in market pricing. Linking up directly

with farmers to source fresh fruits, vegetables and staples ensure great quality as well as great price. Add to this, the membership program Club more, which provides convenience, customized shopping solutions and savings, and the more. value promise becomes all the more evident

Competitive Priorities

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Value Propositio

n

Special desk for billing

Exchange

period

Regular update

Home delivery

Parking refunde

d

Instant discount

Value Proposition

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• Maintaining customer relationship.

• Retaining customers by Loyalty Programs.

• Giving ambient environment at stores.

• Working on Market Research Methodology.

• Maintaining stored products.

• Rigorous advertising and Promotion activities.

• Attract shoppers & keep the min stores.

• Women’s need more space.

• Honor the transition zone.

Evaluate the key strategic drivers of the industry in which this Retailer is part of…

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Target Audience

More Megastores targets higher and upper middle class customers.

The large and growing young working population is a preferred customer segment.

More megastore specifically targets working women and home makers who are the primary decision makers.

Currently focused to tier 1 & 2 but 3 years down the line tier 3 will also be added.

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SWOT Analysis

Strength

1. It has strong pan-India presence as 540 supermarkets and nine hypermarkets across country2.It owns private label food brands like Feasters, Kitchens promise and best of India3. Over 11,000 employees form the workforce4. Strong backing of the Aditya Birla Group5. Good branding and marketing in India6. The stores loyalty program has over 1 million customers subscribed

Weakness

1.Tough competition from existing players and unorganized sector means limited market share2. New entrant in market compared to other players and low penetration

Opportunity

1. Evolving retail industry in India’s urban and semi urban market, it is expected to grow2.Growing awareness and brand consciousness across different socio-economic classes

Threats

1. Strong competition from domestic players also from global players entering into Indian retail market2.Increasing commodities prices causing pressure on profit margins

Competition

Competitors

1.Relaince Fresh2.Food Baazar3.Vishal Mart4.Subhiksha

SWOT Analysis

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Five force Analysis

Rivalry among competitors Reliance Retail Big Bazaar Bharti & Wal-Mart etc.

Threats of the entrants FDI policy not favorable for international buyers.

Domestic conglomerates looking to start retail chain.

International players looking to foray India.

Bargaining power of the supplier The bargaining power of supplier varies depending upon the target segment.

The unorganized sector has a dominant position.

There were few players who have a slight edge over others on account of being established players & enjoying brand distinction.

Bargaining power of buyer Consumers are price sensitive. Availability of more choice.

Threat of substitutes Unorganized retail.

Porters Five Forces Model

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Apparels Food Farm Product Chill station

Denims & T-shirts

Fabric & cut piece

Formal wear Casual wear Party wear Ethnic wear Accessories Night wear Under garments Dress materials Sarees

Staples Ready to eat Ready to cook International

food Spices Tea & Coffee

Fruits Vegetables Imported fruits Dairy products

 

Soft drinks Packaged

juices Milk items Frozen foods Ice creams

Product Mix

Identify the Marketing Mix Strategy applied by the Retailer to gain competitive advantage

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• Cost plus price and Percentage method pricing.

• Most widely used technique to price merchandise

• Low prized private labels

• Discount on bulk buying

• To earn high profit margins on Private Labels brand

• Give the opportunities to stand out from the crowd

• To control on the quality of the product

• To offer unique valuable product to customer

• Organized Retailing Business is driven by one crucial factor:

• Location

• Approachable

• Parking

• Located in small commercial complexes close to 3-4 residential areas

• Observation: Close to cross roads

Pricing Mix

Place

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• To survive in the tough competition all retail outlets use different strategies to attract customers and to retain them

• Print medium.

• Loyalty programs

• In-store Visual merchandising

Main idea -make bulk purchase

Promotion Mix

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• Our destination hypermarket caters to your monthly, weekly and special occasion-based shopping requirements.

• more.MEGASTORE is a one-stop shopping destination for your entire family, where they offer you atop-notch experience by giving you a wide spectrum of products, while making shopping affordable for you and your family.

• More. MEGASTORE aims to bring international standards and operations on par with the rest of the global retailers, while following stringent quality norms for our private labels, all our manufacturer and partners are the best in their class.

Conclusion

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• 1.Aditya Birla Group Companies Indian companies Aditya Birla Retail Limited.

• 2. Company Journals.

• 3.www.google.com

• 4.www.morestores.com

• 5. www.adityabirlagroups.com

Bibliography