16

RETAIL MANAGEMENT

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

16RETAILING

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 SIZEIndias 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%

INVESTMENTAccording 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.

OverviewNew 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 facingHow 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 RETAILINGRetailing 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 EconomyRetailing is the major part of U.S and world commerceRetail 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,2006COUNTRYTotal Retail sales(mn)Share of organised retail(%)USA2,98385JAPAN1,18366CHINA78520UNITED KINGDOM47580FRANCE43680GERMANY42180INDIA3224BRAZIL28436RUSSIA27633

The 10 major Retailers in India survey in 2010RETAIL CHAINFOUNDED REVENUESFuture group199732,360RPG19961,67,160Tata group(trent)19982,95,070ITC(wills, choupal sagar )20002,43,600Reliance Retail20061,65,58,060Bharthi airtel2007NDK Raheja(shopper stop)1991120,690Land mark199811,490videocon198515,000Adithya birla retail20071,146,68

TOP RETAILERS IN INDIA 2014-151:PANTALOON RETAILERS2: K RAHEJA GROUP3: TATA GROUP4: RPG group5:LANDMARK GROUP6:BHARTI-WALMART7:RELIANCE8:AV BIRLAS GROUPS9: METRO10:VIVEKS LTD

PRODUCTS RELATED TO RETAIL INDUSTRYGroceriesFruits & vegetablesOils and gheeSnacks & savoriesBeveragesHealth drinksProcessed foodsConfectionary Ready to eat foodsFrozen foods

Dairy productsBakery productsPersonal careHouse hold needsCleaning aidsGeneral merchandising.

A TYPICAL CHANNEL OF DISTRIBUTION

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 RETAILINGIts 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 sectorPOLITICALTaxation policy-VAT,ST and others.Low access to banking facilityPolicy and Regulation

ECONOMICALGDP Growth ratesForeign investmentMoney supplyInflationConsumer benefit

SOCIALCorporate social responsibilityEnvironmental safetyEase of shopping

TechnologyOnline shoppingRetail media networkERP SystemCRM SystemCustomer Profiling and satisfying their needs

RETAIL MANAGEMENT SKILLSIts 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 ofStrategic 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 RESPONDENTSAGENO OF THE RESPONDENTSPERCENTAGEBelow 2036%20-301836%30-401428%40-501020%50 & above510%Total50100%

CHART SHOWING THE AGE OF RESPONDENT

SUPPLY CHAIN IN RETAIL INDUSTRYThey 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 1LEVEL 2LEVEL 3TRANSPORTATIONINVENTORY MANAGMENTROUTE OPTIMIZATIONFREIGHT FORWARDINGORDER FULFILMENTCROSS DOCKINGWAREHOUSINGPALLET TRACKINGNETWORK MANAGMENT

INDIAN TOP FOOD AND GLOCERY RETAIL NATURE BASKET.COMADITHYA BIRLA MORE LTDBIG BAAZAR (FUTURE GROUP)RELIANCE FRESHSMART RETAIL LTDBARATHI WALMART LTDNMART LTDVISHAL MARTSUBHIKSHA

NATURES BASKETCEO-Mohit khattar ( MD)Godrej Natures 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 Natures basket.Its total operation is 60,000 crore's in Retail industry.

PARENT COMPANYGodrej groupCategoryFood retailSectorLifestyle and retailTaglineWorld food storeUSPInternational and Gourmet food selection

STPSegmentSuper market retail segmentTargetUp market urban consumerPositionTo be Indias 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 ANALYSISStrengthsDifferentiates itself from other supermarket by offering a wide variety of international brands of varied food productsOffers value-added such as home delivery , customer credit, customer loyalty programs, clubs ect.Extremely friendly and well trained staff.Brand images

WeaknessThe store operation have not still achieved breakeven financially.Future growth calls for huge investment expenditure and debt.OpportunitiesGourmet sector in India is still small and niche.This segment has massive buyer power, is relatively price sensitive and growing fast.ThreatsRising attrition rates and labor cost in IndiaRecession in real estate sector and raising cost of land development.

COMPETITORSCompetitor

Lemarche

Carrefour

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 labelsAditya Birla Retail Ltd provides customers a wide choice ofproducts under its own labels. The objective isto provide quality products at attractive price points to customers. Since quality of the products is ofprime importance, stringent quality norms have been set and are followed.

Type PublicIndustry RetailingFounder(s) Kumar Mangalam BirlaHeadquarter MumbaiKey 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, HypermarketEmployees over 1,28,000Website: morestore.com

Supermarket & Hypermarket

Supermarket More.

Conveniently located in neighbourhoods, more. Super market scatter to the daily, weekly and monthly shoppingneeds of consumers. The product offerings include a wide range offresh 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 acrossfruits & vegetables groceries, FMCG products, more. MEGASTORE also has a strong emphasis on general merchandise, apparels

Moreis a pan-Indiaretail chain operated by theAditya Birla Groupcompany.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 veryown neighbourhood .More Quality more. Variety ,more Convenience and more. Value are the four delivery cornerstones of the more. chain ofsupermarket stores.More. QualityEvery product at more. goes through athorough quality check process ensuring 100 per cent more. satisfaction.More VarietyApart from a large range of national brands, shopperswill also find a section called the Best of India, which isan assortment of unique products sourced from across India The wide range of fresh fruits and vegetablesalong 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 ACTIVITIESDISCOUNT CARDS MORE CLUB MEMBERSHIP CARDPROMO CODES COUPONS WEEKLY ONE DAY DISCOUNT ON SELECTED ITEMSFESTIVAL OFFERS FAMILY MEMBERSHIP CARD

Food Bazaar and Reliance Fresh

Introduction-Food Bazaar & Reliance FreshRetail Mix Strategy12

Food Bazaar-Introduction

Food Bazaar Part of Future Groups 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-IntroductionPart 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

Store LocationFOOD BAZAARRELIANCE FRESHAccessibilityShop-in-Shop(SIS) format with Big Bazaar ,stand alone formats in malls,metro stations etc

Number Of Stores173 Food Bazaar stores in 73 cities and 65 rural areas.

AccessibiltyNeighborhood store format- found in markets or localities near to the customer.

Number Of Stores453 Stores till date in 45 cities

Customer Segmentation-Both targets middle class customersCater to the large and growing young population

Product OfferingsClear divisions in Food Bazaar [Head to Toe,Fabric Kleen, Chakki Fresh etc]Reliance Fresh focusses on food items whereas Food bazaar focusses on overall health care of a customer,example-Soaps3. The stock keeping units of Food Bazaar is too huge,example-Surf Excel-5 Kg Packs4.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 pricingReliance Fresh prices come close to competing with Food Bazaar only in vegetables and fruits section.

Customer ServicesMembership Cards

Reliance Fresh

Food Bazaar

Employee InteractionHigh in Food Bazaar and less in Reliance Fresh

Promotional Methods Food Bazaar Reliance FreshBelow the line PromotionCoupon discounts,, gift with purchase, competitions and prizes, money back offers and exchange offers, special occasions.

Above the line promotionGive advertisement in newspapers, TV, Internet(own website which gives online shopping services

Partnership with Bigfix, Big FM 92.7.

Celebrity endorsement (Vidya Balan)

Main Idea-make bulk purchase

Discount scheme days- Saturday and Sundays

Reliance Fresh membership card- Reliance One

ObservationsBasisReliance FreshFood BazaarStore ManagementGoodGoodShopping ExperienceComfortableSatisfactoryEnvironmentPeacefulNoisy & UnpleasantDiscountsLowHighLocationMarketsMallsParkingBadGoodQualityGoodGoodAir ConditioningEffectiveAverageCleanliness GoodAverage

THANK YOU

MORE RETAIL OUTLET

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 labelsAditya Birla Retail Ltd provides customers a wide choice ofproducts under its own labels. The objective isto provide quality products at attractive price points to customers. Since quality of the products is ofprime importance, stringent quality norms have been set and are followed.

Type PublicIndustry RetailingFounder(s) Kumar Mangalam BirlaHeadquarter MUMBAIKey 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, HypermarketEmployees over 1,28,000Website morestore.com

Supermarket & Hypermarket

Supermarket More.- Conveniently located in neighbourhoods, more. Super market scatter to the daily, weekly and monthly shoppingneeds of consumers. The product offerings include a wide range offresh 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 acrossfruits & vegetables groceries, FMCG products, more. MEGASTORE also has a strong emphasis on general merchandise, apparels

Moreis a pan-Indiaretail chain operated by theAditya Birla Groupcompany.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 veryown neighbourhood .More Quality more. Variety ,more Convenience and more. Value are the four delivery cornerstones of the more. chain ofsupermarket stores.More. QualityEvery product at more. goes through athorough quality check process ensuring 100 per cent more. satisfaction.More VarietyApart from a large range of national brands, shopperswill also find a section called the Best of India, which isan assortment of unique products sourced from across India The wide range of fresh fruits and vegetablesalong 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 Clubmore. - loyalty program, currently has a strong membership base of over 1 million members.

THANK YOU