Report of Retailing Marketing

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    PRESENTED BY:

    RANJITH.M

    RAKESH C PILLAI

    VIGNESH

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    What is retailing?y Retailer-someone who cuts off or sheds a small piece

    from something.

    y Retailing is the set of activities that markets productsor services to final consumers for their own personal orhousehold use

    y Retailer is a Person or Agent or Agency or Company or

    Organization who is instrumental in reaching theGoods or Merchandise or Services to the End User orUltimate Consumer.

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    y In India, retailing is considered the largest employerafter agriculture employing over 8% of the population.

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    KEY CHALLENGESy LOCATION:

    Locations decisions are harder to change

    y MERCHANDISE

    Merchandising consists of activities involved inacquiring particular goods and services and making

    them available at a place, time and quantity thatenable the retailer to reach its goals

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    y PRICING

    Pricing is a crucial strategic variable due to its

    direct relationship with a firm's goal and its interactionwith other retailing elements

    y TARGET AUDIENCE

    "Consumer Pull", seems to be the most important

    driving factor behind the sustenance of the industry

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    y SCALE OF OPERATIONS

    Scale of operations includes all the supply chain

    activities, which are carried out in the business

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    PRESENT INDIANSCENARIOy Unorganized market: Rs. 583,000 crores

    y Organized market: Rs.5, 000 crores

    y Over 4,000 new modern Outlets in the last 3 yearsy Over 5,000,000 sq. ft. of mall space under

    development

    y The top 3 modern retailers control over 750,000 sq. ft.

    of retail space

    y Over 400,000 shoppers walk through their doors everyweek

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    Top 7 Global Retailers

    RankRank Name of RetailerName of Retailer SalesSales Grocery Sales (%)Grocery Sales (%)

    (USD Bn)(USD Bn)

    11 WalmartWalmart -- USAUSA 280280 44%44%

    22 CarrefourCarrefour -- FranceFrance 8080 77%77%

    33 AholdAhold -- NetherlandNetherland 6363 84%84%

    44 MetroMetro -- GermanyGermany 6161 51%51%55 KrogerKroger -- USAUSA 5555 70%70%

    66 TescoTesco -- UKUK 5050 75%75%

    77 TargetTarget -- USAUSA 4848 18%18%

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    Corporates - Indian Retaily Spencers

    y Oldest Retailer in Indiay 135 Stores in 27 Citiesy Plans to open 365 Stores in 365 days

    y Big Bazaary 53 Stores and fast expanding

    y Subhikshay 700 stores operationaly Plans to touch 1000 in this financial year

    y Aditya Birla Groupy Acquired 160 stores of Trinetra, a well established retail chain of Southern Indiay Took over Fabmall about 50 storesy Plans to set up 15 Hyper Markets in Pune aloney Additional 1000 Super/Hyper markets across the country in next 3 years

    y Reliance Retail Ltd.y Opened its first store in Nov 2006y Today 225 plus stores across Indiay Rapidly Expanding

    y Bhartiy Joint Venture with Walmarty Plans to begin operations next yeary

    y Metro AGy German Retail Gianty Operating in Cash & Carry segment in the Indian Market

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    Major playersy - Food and grocery

    - Fashion

    - Food world- Shoppers' Stop- Vivek's- Subhiksha- Westside- Planet M- Nilgris- Lifestyle

    - Music World- Adani- Rajiv's

    - Pyramid- Crossword- Nirma-Radhey- Globus- Life spring

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    Retailing formats in Indiay Malls:

    The largest form of organized retailing today.Located mainly in metro cities, in proximity tourban outskirts. Ranges from 60,000 sq ft to7,00,000 sq ft and above. They lend an idealshopping experience with an amalgamation ofproduct, service and entertainment, all under a

    common roof.Examples include Shoppers Stop,Piramyd, Pantaloon.

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    Specialty Stores:

    Chains such as the Bangalore based Kids Kemp,

    the Mumbai books retailer Crossword, RPG'sMusic World and the Times Group's music chainPlanet M, are focusing on specific marketsegments and have established themselves

    strongly in their sectors.

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    Discount Stores:

    As the name suggests, discount stores or factory

    outlets, offer discounts on the MRP throughselling in bulk reaching economies of scale orexcess stock left over at the season. The productcategory can range from a variety of perishable/

    non perishable goods

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    Department Stores:Large stores ranging from 20000-50000 sq. ft,

    catering to a variety of consumer needs. Furtherclassified into localized departments such asclothing, toys, home, groceries, etc

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    Hypermarts/Supermarkets:Large self service outlets, catering to varied

    shopper needs are termed as Supermarkets. Theseare located in or near residential high streets.These stores today contribute to 30% of all food &grocery organized retail sales. Super Markets canfurther be classified in to mini supermarkets

    typically 1,000 sq ft to 2,000 sq ft and largesupermarkets ranging from of 3,500 sq ft to 5,000sq ft. having a strong focus on food & grocery andpersonal sales

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    Convenience Stores:These are relatively small stores 400-2,000 sq. feet

    located near residential areas..

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    MBOs :Multi Brand outlets, also known as Category

    Killers, offer several brands across a single productcategory. These usually do well in busy marketplaces and Metros

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    Sabari super markety Kerala is not a producing state for more than 90%

    Requirement of people

    yPresence of an organization is essential to bring theessential requirements from production centers

    without profit motive

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    Sabari super Market located at Pathanapuram town.

    Run by SUPPLYCO, Govt. of Kerala

    Its started on 2005 December

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    SUPPLYCOy SUPPLYCO is fully owned Govt. company

    y Head quarters in Kochi

    y 5 Regional marketing officesy 56 sub depots

    y Around 1200 retail outlets

    y Dedicated workforce of nearly 3500

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    y SUPPLYCO is the largest retail chain dealing inessential commodities

    y

    Leading manufacturers of tea, coconut oil, palmolinoil, curry powder in the branded name of Sabari

    y Runs festival markets during Onam, Xmas andRamzan seasons

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    SYPPLYCOS MARKET STRENGTHType of outlets Numbery Maveli Stores

    y Mobile Maveli Stores

    y Sipplyco Sabary Super Market

    y Maveli Medical Stores

    y Petrol Bunks

    y LPG Outlets

    y Sub Depots

    y Maveli Cafeteria

    y Keroscene Depot

    y Sabari Stores

    y Festival special markets

    860

    8

    288

    84

    11

    3

    9

    1

    1

    1659

    Onam, Xmas, Ramzan

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    SABARI SUPERMARKETSyA chain of retail self service outlets named Labham

    markets and Supplyco Sabary Super Markets

    y

    Aim was to attract high and middle income groupsy Provide all facilities comparable the best supermarkets

    in private sector

    y Equipped with all modern facilities

    yAll items are available at prices that are less than MRPy 288 suppyco sabari supermarkets

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    SWOT ANALYSISy STRENGTHS

    y Government support

    y Good customer relationy Demand

    y Less price

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    y WEAKNESS

    y Less space

    y Less parking areay No proper alignment of products

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    y OPPORTUNITIES

    y Expanding market by increasing product range

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    y THREATS

    y Emerging competition

    y Decreasing Government subsidy

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    Transportationy Bus stand is very nearer to the shop

    yAuto &Taxi are very easy to available.

    y This is very helpful to customersy These factors are very helpful to increase the sales.

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    Parking Facilityy Shop have its own parking area

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    Promotional Activitiesy Not profit motive

    y Centralized promotional activities

    y Discount card/ Privilege card

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    Selection of employees

    y Centralized selection

    y Shop has no power to select employees

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    Traningy Centralized training

    y Training deals with product, display, sales..

    y Training for computer fluency

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    Salaryy 2 permanent staffs and 5 temporary staffs

    y Temporary staffs are for packing

    y Their pay depends on packing

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    Average Salesy On regular day sales will be around Rs50000.

    y Onam season sales will be double

    y Maximum sales: Onam seasony Minimum sales: Next month after onam

    yAverage walking: 300

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    Sabari productsy Sabari products

    y Sabari Tea

    y

    Sabari coconut oily Curry Powders,Rice,Oils, Salt etc

    y Sabari brand Coffee,

    y Matta Rice,

    y Iodised Salt,

    y Chicken Masala and Meat Masala.

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    Suggestionsy Increase space

    y Improve parking facility

    y Implement advanced systems to avoid theft

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    THANK YOUTHANK YOU