Damodar Mall

8/8/2019 Damodar Mall

1/23

Selling Staples & FreshThe Food Bazaar Way


2/23


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..


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..


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


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..


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


8/23

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..


9/23


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..


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


12/23

Fresh ProduceEvolution


13/23

How do we see categories?

Destination

Convenience

Transaction Builders


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


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


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


17/23

Come, Lets play


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


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


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


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.


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.


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

Damodar Mall

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