Supermarket Analysis - (MF Presentation)

8/8/2019 Supermarket Analysis - (MF Presentation)

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Supermarket Analysis

Presented By:

Arvind Kamboj

Ruby Dobriyal

Sakshi Vats



Contents

Introduction

Different Package Sizes

Unit Pricing

Effects of flexible packaging and unit Pricing

Different brand offerings in terms of Unit Price

Effects of unit pricing on buying decisions.

Conclusion



Introduction

This presentation will throw a light on our observations of a Super Market

µBig Bazar¶



Big Bazar

Big Bazar, is the chain of retail stores of thebig banner Pantaloon Retail (India) Ltd.,which in turn is a segment of the Kishore

Biyani, regulated Future Group of Companies.

Big Bazar, a part of the Pantaloon Group, is ahypermarket offering a huge array of goods

of good quality for all at affordable prices.Big Bazar with over 50 outlets in differentparts of India, is present in both the metrocities as well as in the small towns



This large format store comprise of almosteverything required by people from different incomegroups. It varies from clothing and accessories for all genders like men, women and children,

playthings, stationary and toys, footwear, plastics,home utility products, cosmetics, crockery, hometextiles, luggage gift items, other novelties, and alsofood products and grocery

The added advantage for the customers shopping in BigBazar is that there are all time discounts and promotionaloffers going on in the Big Bazar on its salable products.



Package Sizing

When you visit Big Bazar you will see:

Different products across brands are available like TataTea, Red Label, Taj Mahal, Double Diamond etc. are

different brands for tea available.

different package sizes in terms of weight or number of

units contained are available like tea packets availble in

100 gms, 250gms, 500 gms, 1Kg etc. are available.



Quantity: 1Kg

MRP: Rs.183

Quantity: 1kg

MRP: Rs.227

Quantity: 1 kg

Price: Rs.307

Quantity: 1Kg

MRP: Rs.145



Pricing Strategy to attract

Customers

You will see that manufacturers offer

commodities in smaller packages just to

attract customers as if, we compare the

prices with bigger packages it might be

same or may be more.

Let¶s have a look at some products

available in different package sizes:



Maggi Tomato Ketchup

Maggi Tomato Ketchup ±Maggi tomato ketchupwhich was initiallyavailable in 200gms,

500gms, 1kg, (Priced at ± Rs.30, Rs.58,Rs.110)has launched:

Maggi Pichkoo whichcomes as a small doy

pack (200gms for Rs.34).

Also, easy pouches (10gms ± Rs.2)



Nescafe

Nescafe ± It was earlier

available in package

sizes of 100gms,

200gms, 500gms,

(Priced at ±Rs. , Rs.136,

Rs.225)has launched:

packet sizes of 2gms,

20gms,and 50gms.(2

gms ± Rs.2 and 50gms ± Rs.10)



Advantages of Flexible Packaging

³It offers the advantage of packing smaller

quantities compared to traditional

packaging and hence, middle class

consumers, who comprise a major section

of the Indian society, have the choice of

purchasing just the required amount of

products.´



Also, it has following benefits:

Ease of handling

Lesser storage space becomes

increasingly appreciated

Keeping the product from adulteration and

moisture

Convenience of disposal.

Cost savings on transportation.



Unit Pricing

Different Package sizing also results in variations in unit price as westated in previous slides however sometimes, Unit Price varies frombrand to brand for the same product.

Before we move further, lets see what does Unit Pricing means:

The "unit price" tell you the cost per pound, gram, or other unit of weight or volume of a food package. It is usually posted on the shelf below the food. The shelf tag shows the total price (item price) andprice per unit (unit price) for the product.



Here are some observations from our

survey for variations in unit price of sameproducts but different brands.



Microwave Ovens

Inalsa Microwave Oven

21LMG

MRP: Rs. 5195

HS18 Price: Rs.3999

IFB Microwave 17L Grill

MRP: Rs. 4900

HS18 Price: Rs.4399

LG 17L Grill Microwave

Oven - MG-1742WE

MRP: Rs. 5,699



Rice

LalQuilla Basmati Rice

Quantity ± 1 kg

MRP ± Rs.73

Dawat Basmati Rice

Quantity ± 1 Kg

MRP ± Rs.72

Kohinoor Basmati Rice

Quantity ± 1 Kg

MRP ± Rs.69



Effectiveness of Unit Pricing

Unit pricing can help us in the following ways:

decide what brand to buy. Store brands and little known brandsoften cost less than well-known national brands. The way the lower-priced brands look may be the only difference.

It provides a fair idea of the actual price of the commodity where

manufacturers try to influence customers with small packagingstrategy and increasing the price for example - Sunsilk Shampoolowered the volume per package. The bottle size like these used tocontain 400 ml of shampoo and 200 ml of conditioner, now only 385ml shampoo and 180 ml conditioner for the same price.

You can save money when you compare the unit price of each of the alternative available for a particular product before you makeyour decision.



Conclusion

Through this survey we could determinethat different package sizes are availablefor different brands which is a strategy to

attract consumers. However, the unit pricestrategy provides a fair picture of thecommodity sold as it shows the total priceincluding the shelf price and productioncost. Hence, we can conclude that UnitPricing is an effective Strategy in today¶smarket.

Supermarket Analysis - (MF Presentation)

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