Post on 03-Jun-2018
transcript
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WHAT IS CO-OPERATIVE SOCIETY?
Co-operative is a form of organization where people voluntarily
associate together as human being on the basis of quality and worktogether for a common goal. The main spirit of co-operation is
EACH FOR ALL AND ALL FOR EACH
INTRODUCTION TO CONSUMER CO-
OPERATIVES:-
A consumers' cooperative is a business owned by its customers for
their mutual gain. t is a form of free enterprise that is oriented
toward service rather than pecuniary profit. The customers or
consumers of the goods and!or services the business provides are
also the individuals who have provided the capital required to
launch or purchase that enterprise.
A consumers cooperative may be supermarkets" convenience stores"and other businesses owned by independently-owned" and run Co-
operative societies" which benefit from #oint co-ordination and co-
operation in managing their businesses. As mutually-owned
businesses" each member of a society has a shareholding equal to
the sum they paid in when they #oined.
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STRUCTURE OF CONSUMER CO-
OPERATIVES:-
The consumer cooperatives have a four tier structure comprising
primary consumer stores with branches functioning at the grass rootlevel" the wholesale ! central consumer stores with their branches at
district ! taluka level" the $tate Consumer Cooperative %ederations
at the $tate level" and the &CC% of ndia td." at the national level.
NATIONAL CO-OP CONSUMER
FEDRATION
STATE CO-OP CONSUMER
FEDRATION
WHOLESALE STORES
DEPARTMENTAL STORES
PRIMARY CONSUMER CO-OP
STORES
CONSUMER CO-
OP STORE FOR
RURAL
()(*AT)&
CONSUMER CO-OP
STORE FOR
INDUSTRIAL
+),,$
UNIVERSITY
COLLEGE
CONSUMER STORE
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APNA BAZAR FOR US CUSTOMER IS FIRST
INTRODUCTION:-
Apna /azaar is probably the oldest and largest consumer co-
operative multi-state society with a customer base of over 01
lakhs. The ,s 023-crore retail chain that" for over 44 years
remained largely 5middle-class6 has 73 outlets in 8umbai"
Thane and the neighbouring onkan region. t has recently
opened its first shop outside the 8aharashtra state" in 9oa. Apna
/azaar has developed a strong brand image in the mind of theconsumers. t en#oys strong consumer loyalty. There are #ust
2:-4: consumers who shift over to other retail stores.
Brand name- 8umbai amgar 8adhyavarti 9rahak $ahakari
8andal td
Da!e "#
In$"r%"ra!&"n- ;th 8ay 0;27 and it has now
completed
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the organization started the nation?s first departmental store on
the mill worker dominated areas like &aigaon" under the name
ofAPNA BAZAR. n a short time the brandAPNA BAZAR
grew popular all over 8umbai and has never looked back since.
After successfully establishing a wide network of branches all
over 8umbai" new branches were opened along the onkan
stretch following demand. %urther franchisees were encouraged"
giving livelihood opportunity to many entrepreneurs.
OBJECTIVES OF APNA BAZAR:-
0. To take effective measures to ensure price stabilization and
supply of goods to the consumers at reasonable price i.e.
below the 8,(.
1. To procure" produce and make available a range of
consumer goods under one roof.
>. To avoid e@ploitation of consumers
2. To create awareness among the consumers and protect
them from black marketing.
4. To provide quality goods at right quantity with ma@imum
customer satisfaction.
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MANAGEMENT STRUCTURE:-
The /oard of irectors changes every 4 years and the e@ecutivecommittee keeps changing annually. All the members render
their service on honorary basis.
CHAIRMAN
VICE-CHAIRMAN
E)ECUTIVE COMMITTEE
UNION
LEADER
CHIEF E)ECUTIVE
OFFICER
GENERAL
MANAGER
MANAGING
COMMITTEE
BOARD OF DIRECTORS
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MARKETING STRATEGY:-
THE 4 PS OF APNA BAZAR
PRODUCT:-nitially they sold food grains and other grocery items. )ver a
period of time they started adding variety of products to their
sales. t includes products like plastic items" toiletries" stationary
items" pharmaceuticals" household articles etc. of various
companies. n addition to this they have their own products like
spices" pickles" papads" etc. having their brand name in it. All
these products are of good quality and high standards.
PRICE:-
All goods sold at apna bazaar are below 8,(. the pricing
strategy adopted by them is as followsB-
PURCHASING COST+ MARGIN= NOT ABOVE
MRP
After considering the 8,(" their profit margin varies from 03 to
04:" even if the profit is nil or as minimal as rs.3.43.
PROMOTION:-
Apna /azar being a co operative society cannot incur heavyadvertisement e@penditure because they have to keep their cost
low. nspite of low advertisement they are able to attract
customers because of their good image and e@cellent services.
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nspite of their low profit margin they offer attractive offers for
their customers. This is evident in the discount which they offer
on medicines.
TYPE OF CITI*EN DISCOUNT OFFERED
ON MRP$&), CT& . 8edical stores F 2
2. %ood stores - 12
4. %ranchisee stores F >E
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EMPLOYEE BENEFITS:-
All the workers of Apna /azar are paid the minimum
wages of ,s.>;33 per month.
They are entitled to other benefits like 9ratuity" (rovident%und" /onus and $.
They have an authorized union for their workers?
The provision of Doluntary ,etirement service GD,$H is
made available to their employees.
There is a scope for every worker to progress which is
possible due to the training programs undertaking by Apna
/azar+
f an employee requests for a transfer to a location which is
nearby to his!her residence" then he!she can transfer his!her
#ob with the concern of higher authorities.
Apna /azar is very much concerned about its employees
and workers. Their concern is evident as they havedisplayed a list of items" quantity and the size of bags to be
used for packing in the warehouse where packing is done.
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Cu!"#$% B$&$'(!:-
Their practice of pricing the product at a low margin is
ultimately passed on to the customers in way of products
priced below 8,(.
The customers hesitate to e@change or complain in case of
any defective products in big malls which is not the case in
Apna /azar.
Apna /azar also fulfills social responsibilities as they
arrange awareness programs and demonstration forconsumers which enables the consumers to differentiate
between the original and duplicated products and also helps
them in identifying adulterated goods.
f the prices of certain commodities increase" Apna /azar
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makes sure that they don?t increase the price but they
reduce their margin till they are able to accommodate their
purchasing cost. The customers are assured that slight price
fluctuations in certain commodities will not affect the price
of Apna /azar?s product.
PROCUREMENT AND INVENTORY
MANGEMENT:
The goods are purchased from A(8C market. The packing is
done in A(8C market or by reliable suppliers. %or some food
products which they manufacture on their own packing is doneby them.
To ensure minimum inventory and ma@imum rotation" they have
centralized the supply chain management. +hile the super
markets are serviced directly by the companies" the requirements
of franchisee outlets are met by Apna /azaar to ensure better co-
ordination.
/ack-end automation has already been started in some stores
with specific emphasis in areas of inventory management. The
front-end and back-end of si@ department stores in 8umbai are
computerized.
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TARGET SEGMENTS:-
The store was started keeping in mind the lower middle class
section of the society. /ut gradually it has moved up the
consumer ladder with the inclusion of the middle class as its
target consumer. &ow slowly it is drawing the upper class
towards it. t now caters to almost all the segments of the society
depending on the location.
SOURCES OF INCOME:-,etailing is their core activity and a ma#or part of their ncomecomes from various sources likeB
0H They supply commodities like al" (ulses" %ood grains"
Cereals to 9ovt. nstitutions" =ospitals for their canteens. A >3
ays credit is given to them.
1H They also earn income from the company racks that they
display in their outlets. These racks contain the products of the
particular company and the in turn pays Apna /azar for
displaying these racks. .g. 8aggie" Colgate" (epsodent" Dicks"
&escafe etc.
>H They provide space to companies e.g. 8( Glectronic
goodsH in order to display and sell their goods by charging rentfor space provided.
2H They have >E %ranchise outlets" which act as a source of
income for Apna /azar as Apna /azar supplies E3: of goods.
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4H (rovide place to banks for opening AT8 center by charging
rent since almost all the outlets are owned by Apna bazar.
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+e all have a misconception that apna bazar being a co
operative must be getting support and incentives from the
government but this is not the case. Apna bazar has to fulfill all
the requirements that any other departmental store has to comply
with. They do not receive any ta@ benefits" concessions and
subsidiaries from the government. The per unit rate of electricity
applicable for apna bazar being a co-operative is same as the
rate applicable to the mall.
MANAGERIAL ISSUES:-
0H They follow a traditional system of management which
means they don?t follow modern management #argons.
1H They cannot afford to keep highly professional people like
8/As" CAs under them as they cannot give them higherpay package.
>H The present employees lack management and technical
knowledge.
C"#*$!(!("&:-
Apna bazaar faces loads of competition from big retail and
departmental stores like /ig /azaar" $hoprite" emart" etc. The
various parameters areB
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0H As these stores provide goods at prices below 8,( with
added benefits or schemes like buy one get one free" special
+ednesday discount" e@change offer" etc.
1H /ig stores spends heavily on advertisements where as Apna
/azaar spends only 0: in comparison to the big stores.
>H The display is more attractive in other super markets and
hypermarkets compared to Apna /azaar. /ig stores have a good
ambience and are very spacious.
2H Apna /azaar serves only one purpose of shopping but itscompetitors serves two purposes of shopping and refreshments.
4H As big stores purchases in bulk quantities" wholesalers not
only give heavy discounts and also allow them to give
promotional incentives to customers which not only help in
promoting the brands also the store itself.
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The various methods by which they tackle competition are as
underB
0H They take back the defective goods.
1H They are trying to upgrade their technology.
>H They give H There is a problem of theft. ue to lack of technology like
CCTD cameras a lot of thefts take place. Therefore
supervision on each and every customer becomes difficult.
SWOT ANALYSIS:-
STRENGTHS
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0. (ure quality commodity and $urety of no duplication
The products of Apna /azaar are genuine as they purchase it
directly from the companies. ots of imitations of consumables
such as honey" oil" etc. are available in many stores. (eople get
cheated" as it is not easy to identify the duplicate product.
1. Juantity is accurate and All prices below 8,( including
medical products
Apna /azaar makes use of modern technology to maintain
correct supplier bills and giving accurate bills to customers
giving details of each purchase and most importantly showinghim the savings he has made while purchasing from Apna
/azaar. They also possess total details of their sales and the
percentage of sales in each category so they know where the
sales are high and where they are lagging behind.
>. 9uarantee on each product
2.$trong network as compared to competitors
Apna /azaar organizes a customer meet for their regular
customers called 8ADA at their anniversary to build
stronger relations with their customers. )n this day" the
customers are offered purchase discounts which show that they
have taken corrective steps towards customer satisfaction.
WEANESSES
0. Ambience not satisfactory
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1. Congested Glack of spaceH
>. 8anual management of inventory
2. ack of parking space
4. &o up gradation of technology.
OPPORTUNITIES
0. Tie ups with Amul" (arle" =(C" 8etlife etc.
1. )pening stores e@ceeding 43333Ksq fts" equipped with air
conditioners" trolleys etc.
>. scope of e@pansion by upgrading technology.
THREATS
-8art and 9iant =ypermarkets provides the e@perience of
shopping which apna /azaar does not provide.Ma..'
There are a large number of malls that offer discounts the
discounts offered by them are as good as those offered by Apna
/azaar because the malls purchase in bulk and can hence afford
to give heavy discounts to the customers. The customer has an
e@plosion of choices and will prefer shopping at these big malls
because of the ambience. They get the complete shoppinge@perience at malls. =ence" malls are a ma#or threat for Apna
/azaar.
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Fu!u%$ *+,&:- Apna /azaar has 7< outlets" of which 2< are company
owned and the rest are franchisees. The network includes seven
department stores" si@ supermarkets" 1< food stores and five
speciality chemist stores. They are now planning improvement
on whatever they presently run.
They are more in to consolidation than e@pansion" and to
form strategic alliances. They are going to have patnership with
with the Lapanese Consumer Co-operative *nion GLCC*H in
areas of training the staff force" visual merchandising and setting
up a co-operative food brand. The company is also foraying into
co-branding e@ercises to offer value to its consumers.
*pgrading the skills of the manpower" creating vehicleparking facility are also in the agenda. They are focusing on the
new generation customers" and talks are on with (lanet8" ,(9
9roup etc. there may be tie-up with Citibank on co-branding.
Credit caed facilities will be introduced. As visual
merchandising" a new way for presenting the products will be
introduced.
ncreasing the distribution reach is a strategy to countercompetition the co-operative plans to increase its outlets. The
ma#or thing on Apna /azaar?s plans is to work on all >-32" they have taken the following steps to
eradicate these lossesB
0H They are trying to reduce the inventory turnover to two days
with the help of ,adha rishna %ood land. These would reduce
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the blockage of capital and interest on it.
1H Apna /azar has discontinued the outlets" which are making
losses for many years. )utlet in /andra was closed.
>H Training and evelopment of staff in order to improve their
efficiency and productivity.
CONCLUSION:-
Apna bazar is successful because they provide valuable servicesand save consumers money. $ince the primary goal of
cooperatives is to meet needs" not generate profits" they can
serve their members at low cost.
Apna bazar often provides services to their communities that are
not readily available from for-profit businesses.
n other cases" cooperatives enhance the level of competition in
the marketplace by providing consumers with an alternative
source of products and services. t plays a vital role from thedistribution of consumer goods" particularly essential consumer
goods at fair prices to rural areas" including remote" inaccessible
and hilly terrains.
+hen it comes to food it has to be Apna /azaar that must come
into one's mind. will say the punch line for Apna /azaar will
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be - when you think about genuine products" think about Apna
/azaar.
BIBLIOGRAPHY:-
(ro#ect information provided by
MR. ANAND VELING(Chairman of APNA BAZAR Dadar branch.)
MANAGEMENT OF
CO-OPERATIVES
PROJECT ON APNA BAZAR
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(,)%. C. 8. $. *TTM