Retail Marketing Supervs Kirana

BLITZKRIEG by DINESH KUMAR. M MAHESH KUMAR. R KARTHICK. R RAJESWARI.K KRISHNAVENI. A

KIRANA SHOPS

SUPER MARKETS

HISTORY OF SUPERMARKETS  1930: Michael Cullen opens the first supermarket in Queens, N.Y., and names it King Kullen.  1958: The aluminum can is first used as a food container.  1988: Wal-Mart opens its first supercenter in Washington.  Khadi & Village Industries Commission  1980 -Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains  1990- Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword

TYPES OF RETAILING

URBAN PLANNING

ANALYZE COMPARE PURCHASE

SEARCH COMPROMISE PURCHASE

SWOT ANALYSIS STRENGTHS SUPERMARKETS WEAKNESS

♥ More choice, Brands o Costly. Variety, quality, Attractive . oBilling time is comparatively ♥Customer can calculate high. o More brands are available the money before buying ♥Packaging, attractive so the customers confused. o Security. shopping bags . ♥ All in one place. o Stock keeping is difficult. THREATS OPPORTUNITIES o The retail shops are ♥ More retail outlets. mostly have rented space ♥To grow as the , the rents are now hypermarkets increasing. o The upcoming organized kirana shops. oDifferences in consumer buying behavior and taxation

SWOT ANALYSIS - KIRANA SHOPS STRENGTHS WEAKNESS

o Less Varieties ( Colgate salt, neem, total) o No option for selection. o customer to employee is 8:2 o Private Labels – customer are reluctant to buy OPPORTUNITIES THREATS ♥ Expand as an organized o Supermarkets and supermarkets ♥Can have tie up with the all hypermarkets within 2 km the supermarkets and have an of radius. local brand – quality o Stocking of products is controlled. ♥25 stores in Delhi under the reduced to the sales which banner of Provision mart are further affect sales. joining hands to combine ♥ Optimal cost ♥ Bargain (vegetables & some groceries) ♥Easy to access ♥Quick delivery ♥Own retail spacing

monthly buying. Bombay Bazaar and Efoodmart formed

SURVEY CUSTOMER INCOMMING RATE

SUPER MARKET

KIRANA

50

20

NEW CUSTOMERS

25

4

FREQUENT CUSTOMERS

10

8

LOYAL CUSTOMERS

5

5

BUSINESS MODEL OF AN RETAIL SUPERMARKET

Consumer proposition • Food World -“Great shopping experience without a price penalty”, Subhiksha’s -“No-frills shopping at best prices”. Reliance Fresh and More-“Value for money, wide range, in a very good ambience”. Overriding the theme “price “ Use of technology • SKUs (stock keeping units) , barcodes The technical terminology for this is “shelf edge sticker”. • Management of shelf edge stickers lead to efficient management of stock turns, seamless

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Supply chain management Supermarket chains are sourcing their grains and pulses as well 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 at a 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 serious and diligent about training of their frontline service staff. The turnover of frontline staff as indeed

PRICE PRODUCT SUPER MARKET Ponni 475 rice(20 Kg) Onion 25

KIRANA SHOPS 520 28

PROMOTION STRATEGIES Supermarkets Provide gift vouchers – bring more customers Provide offers for frequent customers Advertise in

Kirana They don’t promote in an usual way but they deliver the goods below MRP for the frequent customers They do door delivery and take orders even through phone. They do give

PRODUCTS

SUPERMARKET EARLIER Retail shop- 4000 sq ft Monthly 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 kirana’s are working at 12% margin

SUPERMARKET 08’ 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 up by 7 % but the rent and the power spending has gone up by 6% and 2%. Which results in the drop in the revenue

Impact on Unorganized Retailers There is some decline in employment in the North and West regions which, however, also weakens over time. The rate of closure of unorganized retail shops in gross terms is found to be 4.2 per cent per annum which is much lower than the international rate of closure of small businesses. The rate of closure on account of competition from organized retail is lower still at 1.7 per cent per annum. A majority of unorganized retailers is keen to stay in the business and

Small retailers have been extending more credit to attract and retain customers. However, only 12 per cent of unorganized retailers have access to institutional credit and 37 per cent felt the need for better access to commercial bank credit. Most unorganized retailers are committed to remaining independent and barely 10 per cent preferred to become franchisees of organized retailers. The premier packaging institute of the country is chalking out a cluster branding strategy, which could help the thousands of kirana shop owners