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
Variety, quality, Attractive . oBilling time is comparatively
♥Customer can calculate
the money before buying
♥Packaging, attractive
shopping bags .
♥ All in one place.
OPPORTUNITIES
♥ More retail outlets.
♥To grow as the
hypermarkets
o Costly.
high.
o More brands are available
so the customers confused.
o Security.
o Stock keeping is difficult.
THREATS
o The retail shops are
mostly have rented space
, the rents are now
increasing.
o The upcoming organized
kirana shops.
oDifferences in consumer
buying behavior and taxation
 SWOT ANALYSIS - KIRANA
STRENGTHS
SHOPS
WEAKNESS
♥ Optimal cost o Less Varieties ( Colgate
♥ Bargain (vegetables & salt, neem, total)
some groceries) o No option for selection.
♥Easy to access o customer to employee is
♥Quick delivery 8:2
♥Own retail spacing o Private Labels – customer
OPPORTUNITIES are reluctant to buy
THREATS
♥ Expand as an organized
supermarkets o Supermarkets and
♥Can have tie up with the all hypermarkets within 2 km
the supermarkets and have an of radius.
local brand – quality
controlled. o Stocking of products is
♥25 stores in Delhi under the reduced to the sales which
banner of Provision mart are
joining hands to combine further affect sales.
monthly buying. Bombay
Bazaar and Efoodmart formed
 SURVEY
CUSTOMER SUPER KIRANA
MARKET
INCOMMING
RATE 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
 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 KIRANA
MARKET SHOPS
Ponni 475 520
rice(20
Kg)
Onion 25 28
 PROMOTION STRATEGIES

Supermarkets Kirana
Provide gift They don’t
promote in an usual
vouchers – bring
way but they
more customers deliver the goods
below MRP for the
frequent customers
Provide offers
They do door
for frequent
delivery and take
customers orders even
through phone.
Advertise in
They do give
PRODUCTS
 SUPERMARKET
EARLIER SUPERMARKET 08’
Revenue is at 700 Sq.ft
Retail shop- 4000 sq ft
Rent – 50 Rs. Sq.ft
Monthly revenue – 40 lakh
Salary – Rs. 30 Sq.ft
Revenue /sq. ft- 1000 Rs
Rent- 20 /sq.ft
This is due t the fact that the
Utilities -10 Rs/sq.ft
revenue is gone up by 7 %
Salary- Rs. 25 sq.ft but the rent and the power
spending has gone up by 6%
Including all the charges and 2%. Which results in the
( intrest, warehousing drop in the revenue
revenue is 15.5 %)
But the kirana’s are
working at 12% margin
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