Tsm Group 11 More.

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MORE.Presented by:

Akanksha Gupta

Avni Jain

Shiven Mehta

Swaroop Kumar

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"OUR MISSION IS TO CHANGE

THE WAY PEOPLE SHOP. WEWILL GIVE THEM MORE."

-MR. KUMAR MANGALAMBIRLA

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"TO CONSISTENTLY PROVIDE THE INDIAN

CONSUMER COMPLETE ANDDIFFERENTIATED SHOPPING EXPERIENCESAND BE AMONGST INDIA'S TOP RETAILERS,WHILE DELIVERING SUPERIOR RETURNS TO

ALL STAKEHOLDERS".

Vision :

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About More.

More. is the retail brand owned by Aditya Birla RetailLimited (ABRL)

Aditya Birla Retail Limited is the retail arm ofAdityaBirla Group, a USD 28 billion Corporation Indias 2nd largest supermarket operator

Acquired Trinethra, the south-India based chain of stores in2006

May 2007: Aditya Birla Retail Limited (ABRL), launched theirown brand of stores MORE.

2 formats Supermarket & Hypermarket

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About More.

Till end of July 2008: Supermarkets (including the former Trinethra stores): MORE.

minimum size of 2,500 sq ftCurrently, there are over 600 more

Hypermarkets: MORE. Megastoreminimum size of 50,000 sq ftCurrently, 3 hypermarkets operate under the brand more.

Clubmore. - loyalty program, currently has a strongmembership base of over 1 million members

The company has an employee strength of over 11,000employees

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Porters five forces:Analysis

5 FORCES

ANALYSISRivalry amongst competitors Big Bazaar, Big Apple, Reliance Fresh,

Easyday etc

Threat of entrants FDI policy not favorable for internationalplayers

International players looking to foray India

Bargaining power of supplier The unorganized sector has a dominantpositionThere are a few players who have a slightedge over others on account of beingestablished players and enjoying brand

distinction

Bargaining power of buyers Consumers are price sensitiveAvailability of more choice

Threat of substitutes Unorganized retail

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Current Strategy

Closed down non- performing storesHad shut down 107 non viable stores

Increased private labels

Shifted focus to higher margin format hypermarkets

Pricing strategy:Customized catchment strategy to build sales

Optimization strategy: to boost returns and effective use ofavailable real estateTo double the number of SKUs from 1.25 SKUs/ sq. ft. to 2 SKUs/ sq.

ft. Increase the rack height

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Customer Segmentation

Based onIncome

Price sensitiveness

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Target Customer

More. Targets upper and middle classcustomers

The large and growing young workingpopulation is preferred as a market segment

More. Specifically targets working womenand home makers who are the primarydecision makers

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Life cycle of MORE.

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Positioning

Value positioning= EXTRA

Hamesha Extra concept

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Positioning

High Service

Low Service

Low

Price

High

Price

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MARKETING MIX

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Products

Range of products: Processed foods

home and personal care

fruits and vegetables

general merchandise

Apparel

CDIT

Many of the stores have

a bakery and other shopin shops catering tomobile stores,pharmacy, Indian sweetsand the like

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More.

SugarGhee

PulsesMaha saver packs (e.g.

Arhar dal @ Rs. 104/ kgcompared to Rs. 125 @Kiranashop)Other brand: Rajdhani

Spices

Dry fruits

Atta

Cola

Sharbat

More. 110%

Detergent; whiterbrighter clothes(Rs. 60/kg as

compared to Tide @Rs. 62/900gm)

Toilet cleanerSurface cleaner

Soap bars(@ Rs. 25/240gm)

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FeastersNamkeen

SquashChips

Noodles

Biscuits

Best of India: readyto eat

Tea: Selecta

Coffee

Liquid blue @ Rs. 28 250ml (Ujala @ Rs. 35)

Phenyl fresh

Pickle: Kitchens Promise

Have more than 350 products under private label. 15% cheaper than any other FMCG brands

Private labels sales are 60-70% more than any of thebenchmark products of FMCG majors

Packaging is similar to competitors product

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Pricing

Value Pricing

Promotional pricing

Bundling

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Place

Over 600 supermarket stores and 3hypermarket stores across India

Located at main city- tier I & tier II

Approachable destination

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SUPERMARKET STORELOCATOR

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Punjab 26

Haryana 8

NCR 29

Jaipur 13

Ahemedabad 12

Anand 1Baroda 6

Surat 5

Rest ofGujarat

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Nasik 13

Mumbai 46

Pune 22

Karad 2

Kolhapur 5 20


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Solapur 2

Baramati 1

Ahmednagar 1

Aurangabad 3

Sangamner 1

Hubli-

Belgaum

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Mangalore 12

Bangalore 66

Mysore 11

Kochi 20

Kottayam 4

Aleppey 1

Kozikhode 6

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Vizag 28

Vijaywada 27

Hyderabad 90

Nizamabad 1

Howrah 4

Kolkota 16

Hooghly 1

Asansol 4

Pattanamtitha

2

Kollam 1

Chennai 54

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Promotion

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People

Aditya Birla Retail Limited. has an employeestrength of over 11,000

Well trained staffMore than 1300 employees were given training for front

end retail

Empowered individual

Performance oriented culture

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Management Team

Thomas Varghese, CEO - Aditya Birla Retail Ltd.

Russell Berman, CEO Hypermarket

Satendra Aggarwal, CEO Supermarket

Giridhar Sanjeevi, CFO

Ramesh Mitragotri, CPO

Shashi Sareen, Head Quality

Vidhya Srinivasan, Head Strategy

Manoj Krishnan, CIO Anurag Srivastava, Head - Private Label

T V. Venkataraman, Head - Internal Audit

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Physical Evidence

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Process

Daily replenishment

IT software: Oracle

Initially they hadNavision

Oracle is comparativelyfaster

Reliance fresh uses SAP

(so far the best butexpensive)

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More. Mansrover Gardenoutlet

Promotional offers: monthly offersNot on per day basis

Reliance fresh: vegetables high priced in the morning and lower in the evening

Current promotional offers:Winter festival

Shop worth Rs. 3000 get a halogen room heater free

Reward offers: Clubmore

Offer money back

Exchange policy: within 14 days by presenting the original memo

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System: Oracle

Initially they had NavisionOracle is comparatively faster

Reliance fresh uses SAP (so far the best but expensive)

Daily stock check and daily replenishment of goodsWarehouse: Bacoli, near Narela

Store layout: at store managers discretion

Average sales per day: Rs. 25000Vegetables: Rs. 6000 per day

Reliance Fresh: Rs. 25000 per day only by selling Milk

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Customer base: A class

USP: Pricing: cheapest, same

throughout the day

Better quality

HUL dominatedHave pre- signed contracts with

companies

A minimum fixed visibilityguaranteed

60% of customers buy fromthe counterAlso reduces pilferage

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Consumer Insight Reliance fresh and More. provides comparative prices

and schemes, at More. vegetables are very fresh till 8:30am but in the evening they arent so fresh. Although

there is just one cash counter and it takes a little largerfor billing but still I shop at More. because it is closer tomy home instead of Reliance Fresh

- Mrs. Sheena Arora, Housewife, 32 yrs

Branch manager: Lokesh Sharma: 9718963222

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More. Pusa Road outlet System: Daily replenishment

ARS: Automatic replacement stocks

MBQ: Minimum Basic Quantity

Catchment of nearby residents

Customer feedback form available at the cash counter

Weekly feedback goes to the head office

Monthly target for Dec: Rs. 40 lack (Pusa Road)

Other competitors:

Big Apple, Old Rajinder Nagar

Fair Price, Patel Nagar

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6 Cash counters

Local brands (forselected products)

24 customer service

associates

Store Manager:Mr Inder (9990802223)

Assistant StoreManager: Mr. Amit

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More. Paschim Viharoutlet

Location: Main market,jwalaheri

Area: 1870 sq ft

18 employees (Customerservice associates + Storemanager)

Other competitors: Big Apple,Reliance Fresh

Had an apparel section, closedit recently because of low sales

Average turnover: 17-18 lacper month

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USP: price, ranges, latestmanufacturing rates,

customer service Insights: limca pearl pet @

Rs.55 + buscuit pack freeworth Rs. 15; kirana @ Rs. 50;Easyday @ Rs. 42

Rent charges very high:Rs. 1,40,000 per month Very high operational cost

Total Sales: 10-15% higher

as compared to Q2 ofprevious year

Store Manager: Mr.Wakrambam

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More. Noida sec 11Outlet

14 employees (customerservice associates +store manager)

Stock is replenished daily

in the morning based onthe previous days closingentries

Most of the offers wereon Private Label products

More discounts; More=customer loyalty

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Products not sold at

competitorsMagazinesJournalsBlanketsNeva thermal

Located in the mainmarket (block 16market)

Competitors: Kirana

Stores

Home delivery foramount> Rs. 1000

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Expected results forFY2010

Supermarket network to become Ebidta- positive; retail company tobecome Ebidta- positive by 2012

Expected sales turnover: Rs. 1,600-1,700 crore 45% growth w.r.t previous year; turnover for FY 2008-09: Rs. 1,130

crore

19% of total sales expected to be from Private labels

Rent to revenue ratio: 3 to 4%

To close supermarket count at 680-690 stores.

Add 60-70 more private label brands

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More. Future strategy

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Summary

More. is still in initial stages of growth

To maintain higher margin, More. focuses more on its private label products

Volatile commodity and raw material prices accompanies by fluctuatinginflation in India puts significant pressure on margins

Focus on rural market

70% of Indian household

To achieve profitable growth, supply chains need to be transformed to:

Handle larger volumes

Expand reach

Balance costs

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THANK YOU

Tsm Group 11 More.

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