Post on 07-Apr-2018
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BLITZKRIEGby
DINESH KUMAR. M
MAHESH KUMAR. R
KARTHICK. R
RAJESWARI.K
KRISHNAVENI. A
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KIRANA
SHOPS
SUPER
MARKETS
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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.
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TYPES OF RETAILING
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SEARCH
COMPROMISE
PURCHASE
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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
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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.
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SURVEY
CUSTOMERCUSTOMER SUPER MARKETSUPER MARKET KIRANAKIRANA
INCOMMINGINCOMMINGRATERATE 5050 2020
NEWNEWCUSTOMERSCUSTOMERS 2525 44FREQUENTFREQUENTCUSTOMERSCUSTOMERS 1010 88
LOYALLOYALCUSTOMERSCUSTOMERS 55 55
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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.
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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.
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PRODUCT SUPER
MARKET
KIRANA
SHOPSPonni
rice(20 Kg)
475 520
Onion 25 28
PRICE
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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
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PRODUCTS
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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
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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.
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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