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    Blitzkrieg By: Dinesh Kumar. M Mahesh Kumar. R Karthick. R Rajeswari.K Krishnaveni. A

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    Binu Kuriakose
    The document discusses the history and evolution of supermarkets and kirana shops in India. It provides a SWOT analysis of both models, noting strengths of supermarkets like variety and quality but also higher costs, while kirana shops have strengths like low prices and convenience but limited variety. The document also analyzes customer traffic, pricing, promotion strategies, products, and the business model and impact on margins of supermarkets over time compared to kirana shops. Overall, it provides an overview of the supermarket and kirana shop retail models in India and some of the key factors in their development and competition.

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    Blitzkrieg By: Dinesh Kumar. M Mahesh Kumar. R Karthick. R Rajeswari.K Krishnaveni. A

    Uploaded by

    Binu Kuriakose
    76 views19 pages
    The document discusses the history and evolution of supermarkets and kirana shops in India. It provides a SWOT analysis of both models, noting strengths of supermarkets like variety and quality but also higher costs, while kirana shops have strengths like low prices and convenience but limited variety. The document also analyzes customer traffic, pricing, promotion strategies, products, and the business model and impact on margins of supermarkets over time compared to kirana shops. Overall, it provides an overview of the supermarket and kirana shop retail models in India and some of the key factors in their development and competition.

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    14010536 Retail Marketing SuperVs Kirana

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    The document discusses the history and evolution of supermarkets and kirana shops in India. It provides a SWOT analysis of both models, noting strengths of supermarkets like variety and quality but also higher costs, while kirana shops have strengths like low prices and convenience but limited variety. The document also analyzes customer traffic, pricing, promotion strategies, products, and the business model and impact on margins of supermarkets over time compared to kirana shops. Overall, it provides an overview of the supermarket and kirana shop retail models in India and some of the key factors in their development and competition.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    76 views19 pages

    Blitzkrieg By: Dinesh Kumar. M Mahesh Kumar. R Karthick. R Rajeswari.K Krishnaveni. A

    Uploaded by

    Binu Kuriakose
    The document discusses the history and evolution of supermarkets and kirana shops in India. It provides a SWOT analysis of both models, noting strengths of supermarkets like variety and quality but also higher costs, while kirana shops have strengths like low prices and convenience but limited variety. The document also analyzes customer traffic, pricing, promotion strategies, products, and the business model and impact on margins of supermarkets over time compared to kirana shops. Overall, it provides an overview of the supermarket and kirana shop retail models in India and some of the key factors in their development and competition.

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    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 and Fountainhead in books 1996 May first retail store in chennai was inaugurated by M.S. Subbulakshmi.

    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


    Optimal cost Bargain (vegetables & some groceries) Easy to access Quick delivery Own retail spacing

    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
    monthly buying. Bombay Bazaar and Efoodmart formed

    SURVEY
    CUSTOMER INCOMMING RATE NEW CUSTOMERS FREQUENT CUSTOMERS SUPER MARKET KIRANA

    50 25 10 5

    20 4 8 5

    LOYAL CUSTOMERS

    Consumer proposition Food World -Great shopping experience without a price penalty, Subhikshas -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 management or supply chain from suppliers to warehouse.

    BUSINESS MODEL OF AN RETAIL SUPERMARKET

    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 supervisory staff in the retail industry is far higher than even the IT industry. Supermarkets, therefore, have given short shift to training of frontline staff.

    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 local channels , Newspapers

    Kirana They dont 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 on credit basics

    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

    SUPERMARKET 08
    Revenue is at 700 Sq.ft Rent 50 Rs. Sq.ft Salary Rs. 30 Sq.ft

    Including all the charges ( intrest, warehousing revenue is 15.5 %) But the kiranas are working at 12% margin

    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 compete, while also wanting the next generation to continue likewise.

    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 of the country to counter the organized megaretailers such as Big Baazar, Bharti Wal-Mart or Reliance Retail

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