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1/23
Selling Staples & FreshThe Food Bazaar Way
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2/23
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3/23
I am hoping you know .
A supermarket increases CONSUMPTION in its
catchment by 15%! That this number could be 35%+ for certain
categories
Overall value and feel good context provided by usactually induces customers to try new offerings &uptrade..
That upto 50% of whats in her bag at exit was noton her list, when she entered..
8/8/2019 Damodar Mall
4/23
The Retailer we have grown up knowing..
A Faceless, Reliable, Box Pusher, Amenable to cranking
Faceless Has no mindshare or scalable identity
Reliable Has same response to the same stimulus.
Transparent view to the customer
Box Pusher Does not alter the elements of the brand mixDoes not use customer/category insights
Amenable to Cranking..
8/8/2019 Damodar Mall
5/23
The Retailer we are trying to know..
Is a brand in itself; and fully aware of its value
Is manned by people who are just like us
Plays around with your marketing mix, esp. price
Influences the context and the salience of brand presentation
8/8/2019 Damodar Mall
6/23
She is tough.she can kill
Bhaisahab, mujhe mat sikhaao..
Mortality rate very high in
Food product and service
brands.
Its tough to get it right..
8/8/2019 Damodar Mall
7/23
With me, shes a bit different..
Then
In a hurry
Shopping a chore
Predecided on choices Does not expect advice,
inputs at the shop
Very little decisionmaking at the shop
Now
Easy, relaxed
Shopping as leisure..
Looking for choices open mind on brands
Expects, deals,information, newchoices
Open to brandcommunication
8/8/2019 Damodar Mall
8/23
Food Bazaar : Who Am I ?
Layout Theme
Islands, Not Aisles
Lots of wet market feel
Lots of theater
Basic floors, basic ceiling, racks
Visual Theme
Bright, colourful, warm sectionnames
Ethnic Indian; local visualsymbols, merchandise toregional tastes
Lots of customer faces, herlanguage, expressions..
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9/23
8/8/2019 Damodar Mall
10/23
The Difference I want to make
Freshness of Food
Customisation
thanda matlabbaasi
packed matlab quality??
just the way I want it
how come, they know..
8/8/2019 Damodar Mall
11/23
Fresh food looks clean and tidy (78%)
Food sold in stores with highturnover and high foot traffic is morefresh (72%)
It is important for me to see stockmovement through a store/outlet asthis assures me it is fresh (68%)
Fresh food looks more natural if itlooks like it has arrived directly fromthe farm. (e.g. vegetables may havemud or debris on them). (63%)
Pre-packed is less fresh than'just cut' (59%)
Food kept in an air-conditionedshop/outlet can remain fresh for a long
time (44%)
1st tier
drivers
2nd tierdrivers
3rd tier
drivers
Fresh ProduceEvolution
Freshness Perception Drivers
8/8/2019 Damodar Mall
12/23
Fresh ProduceEvolution
8/8/2019 Damodar Mall
13/23
How do we see categories?
Destination
Convenience
Transaction Builders
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14/23
3 Way Win Approach to Business
Customer win Better Value; relevant offering
Supplier win Demand led physical supplychain
Transparent info supplychain
Simpler mkt access; distribution
Retailer win Differentiated offering
Better value realisation
8/8/2019 Damodar Mall
15/23
Farm Fresh: Way Forward
Engage with the producer
Cut time spent, and number of links in thechain
Gains:Customer Fresh, safe produce
Farmer Better realisation; better yields
Food Bazaar Customer loyalty
8/8/2019 Damodar Mall
16/23
Building Alliances
Respecting each others domain expertise
Willing to leave some value on the table
Open take prototypes to market
Belief in co-creation of value
8/8/2019 Damodar Mall
17/23
Come, Lets play
8/8/2019 Damodar Mall
18/23
The Structural SupplyChain Bottleneck is real
Both, Growers and Retailers are
disempowered.- Pay high transaction costs.
- Have non access to newproducts/ markets
- Often face helplessness.
Current Channel is short on
- Size, Capital.
- Physical reach infrastructure- Transparency, fair practices.
Lots of Small producers
Lots of Small R etailers
Traditional
wholesalers /suppliers
8/8/2019 Damodar Mall
19/23
How do I see product Brands?
Will she switch brand or switch store? I can not learn everything I work with
Category Captains
Retailing is a service I provide to productbrands. If I do it better, Ill earn betterrewards
Category insights from suppliers andcustomer proximity from me, is a dreamcombination
8/8/2019 Damodar Mall
20/23
The New Opportunities too are Real
If RETAIL is a service provided to the product
brand, then I am risking Rs 100 Cr of riskcapital every year to build this service for
YOUR brands
Value added offerings do better with me; cycletime for learning goes down..
Per Capita Income + Great supplier proposition + Modern trade= Magic in Asia
8/8/2019 Damodar Mall
21/23
The Power Shift is for RealShare of her basket
Commodity Foods 25%
Branded Food/HPC 40%
Packaged Food/HPC 35%
I am the largest BRAND in her purchase basket.
8/8/2019 Damodar Mall
22/23
Our Worldview on commodity foods
supplychain in India
Produce destruction in the chain is over romanticised.ina poor country, everything is salvaged
Delivered price of most agri produce to the urbancustomer is already low the guy who needs help is thegrower
Indian farmer is a low cost producer. The interventionrequired is information.price discovery, demandpattern, urban preferences, access to capital
Risk reduction thru information and access to capital will
build next level of value for the growers
This is a specialist subject and we should actively workwith mature alliance partners.
8/8/2019 Damodar Mall
23/23
Food Bazaar : Who is She?
Largest selling soap thruthe year . Pears
Fruit drinks > Fizz
Basmati rice = All otherrice put together
SEC A, BEducated, Aspirational
Homemaker/Family
Youngstershang out
Senior citizens..cherry pick
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