Apna Bazzar

8/12/2019 Apna Bazzar

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WHAT IS CO-OPERATIVE SOCIETY?

Co-operative is a form of organization where people voluntarily

associate together as human being on the basis of quality and worktogether for a common goal. The main spirit of co-operation is

EACH FOR ALL AND ALL FOR EACH

INTRODUCTION TO CONSUMER CO-

OPERATIVES:-

A consumers' cooperative is a business owned by its customers for

their mutual gain. t is a form of free enterprise that is oriented

toward service rather than pecuniary profit. The customers or

consumers of the goods and!or services the business provides are

also the individuals who have provided the capital required to

launch or purchase that enterprise.

A consumers cooperative may be supermarkets" convenience stores"and other businesses owned by independently-owned" and run Co-

operative societies" which benefit from #oint co-ordination and co-

operation in managing their businesses. As mutually-owned

businesses" each member of a society has a shareholding equal to

the sum they paid in when they #oined.


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STRUCTURE OF CONSUMER CO-

OPERATIVES:-

The consumer cooperatives have a four tier structure comprising

primary consumer stores with branches functioning at the grass rootlevel" the wholesale ! central consumer stores with their branches at

district ! taluka level" the $tate Consumer Cooperative %ederations

at the $tate level" and the &CC% of ndia td." at the national level.

NATIONAL CO-OP CONSUMER

FEDRATION

STATE CO-OP CONSUMER

FEDRATION

WHOLESALE STORES

DEPARTMENTAL STORES

PRIMARY CONSUMER CO-OP

STORES

CONSUMER CO-

OP STORE FOR

RURAL

()(*AT)&

CONSUMER CO-OP

STORE FOR

INDUSTRIAL

+),,$

UNIVERSITY

COLLEGE

CONSUMER STORE


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APNA BAZAR FOR US CUSTOMER IS FIRST

INTRODUCTION:-

Apna /azaar is probably the oldest and largest consumer co-

operative multi-state society with a customer base of over 01

lakhs. The ,s 023-crore retail chain that" for over 44 years

remained largely 5middle-class6 has 73 outlets in 8umbai"

Thane and the neighbouring onkan region. t has recently

opened its first shop outside the 8aharashtra state" in 9oa. Apna

/azaar has developed a strong brand image in the mind of theconsumers. t en#oys strong consumer loyalty. There are #ust

2:-4: consumers who shift over to other retail stores.

Brand name- 8umbai amgar 8adhyavarti 9rahak $ahakari

8andal td

Da!e "#

In$"r%"ra!&"n- ;th 8ay 0;27 and it has now

completed


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the organization started the nation?s first departmental store on

the mill worker dominated areas like &aigaon" under the name

ofAPNA BAZAR. n a short time the brandAPNA BAZAR

grew popular all over 8umbai and has never looked back since.

After successfully establishing a wide network of branches all

over 8umbai" new branches were opened along the onkan

stretch following demand. %urther franchisees were encouraged"

giving livelihood opportunity to many entrepreneurs.

OBJECTIVES OF APNA BAZAR:-

0. To take effective measures to ensure price stabilization and

supply of goods to the consumers at reasonable price i.e.

below the 8,(.

1. To procure" produce and make available a range of

consumer goods under one roof.

>. To avoid e@ploitation of consumers

2. To create awareness among the consumers and protect

them from black marketing.

4. To provide quality goods at right quantity with ma@imum

customer satisfaction.


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MANAGEMENT STRUCTURE:-

The /oard of irectors changes every 4 years and the e@ecutivecommittee keeps changing annually. All the members render

their service on honorary basis.

CHAIRMAN

VICE-CHAIRMAN

E)ECUTIVE COMMITTEE

UNION

LEADER

CHIEF E)ECUTIVE

OFFICER

GENERAL

MANAGER

MANAGING

COMMITTEE

BOARD OF DIRECTORS


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MARKETING STRATEGY:-

THE 4 PS OF APNA BAZAR

PRODUCT:-nitially they sold food grains and other grocery items. )ver a

period of time they started adding variety of products to their

sales. t includes products like plastic items" toiletries" stationary

items" pharmaceuticals" household articles etc. of various

companies. n addition to this they have their own products like

spices" pickles" papads" etc. having their brand name in it. All

these products are of good quality and high standards.

PRICE:-

All goods sold at apna bazaar are below 8,(. the pricing

strategy adopted by them is as followsB-

PURCHASING COST+ MARGIN= NOT ABOVE

MRP

After considering the 8,(" their profit margin varies from 03 to

04:" even if the profit is nil or as minimal as rs.3.43.

PROMOTION:-

Apna /azar being a co operative society cannot incur heavyadvertisement e@penditure because they have to keep their cost

low. nspite of low advertisement they are able to attract

customers because of their good image and e@cellent services.


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nspite of their low profit margin they offer attractive offers for

their customers. This is evident in the discount which they offer

on medicines.

TYPE OF CITI*EN DISCOUNT OFFERED

ON MRP$&), CT& . 8edical stores F 2

2. %ood stores - 12

4. %ranchisee stores F >E


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EMPLOYEE BENEFITS:-

All the workers of Apna /azar are paid the minimum

wages of ,s.>;33 per month.

They are entitled to other benefits like 9ratuity" (rovident%und" /onus and $.

They have an authorized union for their workers?

The provision of Doluntary ,etirement service GD,$H is

made available to their employees.

There is a scope for every worker to progress which is

possible due to the training programs undertaking by Apna

/azar+

f an employee requests for a transfer to a location which is

nearby to his!her residence" then he!she can transfer his!her

#ob with the concern of higher authorities.

Apna /azar is very much concerned about its employees

and workers. Their concern is evident as they havedisplayed a list of items" quantity and the size of bags to be

used for packing in the warehouse where packing is done.


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Cu!"#$% B$&$'(!:-

Their practice of pricing the product at a low margin is

ultimately passed on to the customers in way of products

priced below 8,(.

The customers hesitate to e@change or complain in case of

any defective products in big malls which is not the case in

Apna /azar.

Apna /azar also fulfills social responsibilities as they

arrange awareness programs and demonstration forconsumers which enables the consumers to differentiate

between the original and duplicated products and also helps

them in identifying adulterated goods.

f the prices of certain commodities increase" Apna /azar


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makes sure that they don?t increase the price but they

reduce their margin till they are able to accommodate their

purchasing cost. The customers are assured that slight price

fluctuations in certain commodities will not affect the price

of Apna /azar?s product.

PROCUREMENT AND INVENTORY

MANGEMENT:

The goods are purchased from A(8C market. The packing is

done in A(8C market or by reliable suppliers. %or some food

products which they manufacture on their own packing is doneby them.

To ensure minimum inventory and ma@imum rotation" they have

centralized the supply chain management. +hile the super

markets are serviced directly by the companies" the requirements

of franchisee outlets are met by Apna /azaar to ensure better co-

ordination.

/ack-end automation has already been started in some stores

with specific emphasis in areas of inventory management. The

front-end and back-end of si@ department stores in 8umbai are

computerized.


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TARGET SEGMENTS:-

The store was started keeping in mind the lower middle class

section of the society. /ut gradually it has moved up the

consumer ladder with the inclusion of the middle class as its

target consumer. &ow slowly it is drawing the upper class

towards it. t now caters to almost all the segments of the society

depending on the location.

SOURCES OF INCOME:-,etailing is their core activity and a ma#or part of their ncomecomes from various sources likeB

0H They supply commodities like al" (ulses" %ood grains"

Cereals to 9ovt. nstitutions" =ospitals for their canteens. A >3

ays credit is given to them.

1H They also earn income from the company racks that they

display in their outlets. These racks contain the products of the

particular company and the in turn pays Apna /azar for

displaying these racks. .g. 8aggie" Colgate" (epsodent" Dicks"

&escafe etc.

>H They provide space to companies e.g. 8( Glectronic

goodsH in order to display and sell their goods by charging rentfor space provided.

2H They have >E %ranchise outlets" which act as a source of

income for Apna /azar as Apna /azar supplies E3: of goods.


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4H (rovide place to banks for opening AT8 center by charging

rent since almost all the outlets are owned by Apna bazar.


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+e all have a misconception that apna bazar being a co

operative must be getting support and incentives from the

government but this is not the case. Apna bazar has to fulfill all

the requirements that any other departmental store has to comply

with. They do not receive any ta@ benefits" concessions and

subsidiaries from the government. The per unit rate of electricity

applicable for apna bazar being a co-operative is same as the

rate applicable to the mall.

MANAGERIAL ISSUES:-

0H They follow a traditional system of management which

means they don?t follow modern management #argons.

1H They cannot afford to keep highly professional people like

8/As" CAs under them as they cannot give them higherpay package.

>H The present employees lack management and technical

knowledge.

C"#*$!(!("&:-

Apna bazaar faces loads of competition from big retail and

departmental stores like /ig /azaar" $hoprite" emart" etc. The

various parameters areB


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0H As these stores provide goods at prices below 8,( with

added benefits or schemes like buy one get one free" special

+ednesday discount" e@change offer" etc.

1H /ig stores spends heavily on advertisements where as Apna

/azaar spends only 0: in comparison to the big stores.

>H The display is more attractive in other super markets and

hypermarkets compared to Apna /azaar. /ig stores have a good

ambience and are very spacious.

2H Apna /azaar serves only one purpose of shopping but itscompetitors serves two purposes of shopping and refreshments.

4H As big stores purchases in bulk quantities" wholesalers not

only give heavy discounts and also allow them to give

promotional incentives to customers which not only help in

promoting the brands also the store itself.


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The various methods by which they tackle competition are as

underB

0H They take back the defective goods.

1H They are trying to upgrade their technology.

>H They give H There is a problem of theft. ue to lack of technology like

CCTD cameras a lot of thefts take place. Therefore

supervision on each and every customer becomes difficult.

SWOT ANALYSIS:-

STRENGTHS


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0. (ure quality commodity and $urety of no duplication

The products of Apna /azaar are genuine as they purchase it

directly from the companies. ots of imitations of consumables

such as honey" oil" etc. are available in many stores. (eople get

cheated" as it is not easy to identify the duplicate product.

1. Juantity is accurate and All prices below 8,( including

medical products

Apna /azaar makes use of modern technology to maintain

correct supplier bills and giving accurate bills to customers

giving details of each purchase and most importantly showinghim the savings he has made while purchasing from Apna

/azaar. They also possess total details of their sales and the

percentage of sales in each category so they know where the

sales are high and where they are lagging behind.

>. 9uarantee on each product

2.$trong network as compared to competitors

Apna /azaar organizes a customer meet for their regular

customers called 8ADA at their anniversary to build

stronger relations with their customers. )n this day" the

customers are offered purchase discounts which show that they

have taken corrective steps towards customer satisfaction.

WEANESSES

0. Ambience not satisfactory


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1. Congested Glack of spaceH

>. 8anual management of inventory

2. ack of parking space

4. &o up gradation of technology.

OPPORTUNITIES

0. Tie ups with Amul" (arle" =(C" 8etlife etc.

1. )pening stores e@ceeding 43333Ksq fts" equipped with air

conditioners" trolleys etc.

>. scope of e@pansion by upgrading technology.

THREATS

-8art and 9iant =ypermarkets provides the e@perience of

shopping which apna /azaar does not provide.Ma..'

There are a large number of malls that offer discounts the

discounts offered by them are as good as those offered by Apna

/azaar because the malls purchase in bulk and can hence afford

to give heavy discounts to the customers. The customer has an

e@plosion of choices and will prefer shopping at these big malls

because of the ambience. They get the complete shoppinge@perience at malls. =ence" malls are a ma#or threat for Apna

/azaar.


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Fu!u%$ *+,&:- Apna /azaar has 7< outlets" of which 2< are company

owned and the rest are franchisees. The network includes seven

department stores" si@ supermarkets" 1< food stores and five

speciality chemist stores. They are now planning improvement

on whatever they presently run.

They are more in to consolidation than e@pansion" and to

form strategic alliances. They are going to have patnership with

with the Lapanese Consumer Co-operative *nion GLCC*H in

areas of training the staff force" visual merchandising and setting

up a co-operative food brand. The company is also foraying into

co-branding e@ercises to offer value to its consumers.

*pgrading the skills of the manpower" creating vehicleparking facility are also in the agenda. They are focusing on the

new generation customers" and talks are on with (lanet8" ,(9

9roup etc. there may be tie-up with Citibank on co-branding.

Credit caed facilities will be introduced. As visual

merchandising" a new way for presenting the products will be

introduced.

ncreasing the distribution reach is a strategy to countercompetition the co-operative plans to increase its outlets. The

ma#or thing on Apna /azaar?s plans is to work on all >-32" they have taken the following steps to

eradicate these lossesB

0H They are trying to reduce the inventory turnover to two days

with the help of ,adha rishna %ood land. These would reduce


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the blockage of capital and interest on it.

1H Apna /azar has discontinued the outlets" which are making

losses for many years. )utlet in /andra was closed.

>H Training and evelopment of staff in order to improve their

efficiency and productivity.

CONCLUSION:-

Apna bazar is successful because they provide valuable servicesand save consumers money. $ince the primary goal of

cooperatives is to meet needs" not generate profits" they can

serve their members at low cost.

Apna bazar often provides services to their communities that are

not readily available from for-profit businesses.

n other cases" cooperatives enhance the level of competition in

the marketplace by providing consumers with an alternative

source of products and services. t plays a vital role from thedistribution of consumer goods" particularly essential consumer

goods at fair prices to rural areas" including remote" inaccessible

and hilly terrains.

+hen it comes to food it has to be Apna /azaar that must come

into one's mind. will say the punch line for Apna /azaar will


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be - when you think about genuine products" think about Apna

/azaar.

BIBLIOGRAPHY:-

(ro#ect information provided by

MR. ANAND VELING(Chairman of APNA BAZAR Dadar branch.)

MANAGEMENT OF

CO-OPERATIVES

PROJECT ON APNA BAZAR


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(,)%. C. 8. $. *TTM

Apna Bazzar

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