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MOREMORETHE ADITYA BIRLA RETAIL LIMITEDTHE ADITYA BIRLA RETAIL LIMITED


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Retail trend in IndiaRetail trend in India

Indias largest industry.

It accounts for 10% of the IndiasGDP and around 8% of theemployment.

India's fastest growing sector with5% compounded annual rate.

Ranked 2nd in a Global RetailDevelopment Index of 30developing countries

Rated 5th most attractive

emerging retail market Expected growth US$ 175-200

Billion by 2016, of whichorganized retailing makes up 3percent or US$ 6.4 billion


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KEY GROWTH DRIVERS

Growing Economy

Consumption Boom

Rising Income levels

Rise in Working Population

Increasing Nuclear Families

Changing Food Behaviour

Profusion of Brands

Change in Indias Socio - Economic Structure


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INDIA

Slow rate of growth

Bureaucratic

Protected and slow

Small consumer

markets Underdeveloped

infrastructure

One of fastest growing

world economies

Reasonably proactive

Opening up of sectors

for investment Promising consumer

markets

Significant investment

in infrastructure

creation for industry

YESTER DAY

TO DAY


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Most of the giant corporate companies areMost of the giant corporate companies are

entering this field likeentering this field like

1. Tata Westside

2. Birla- more

3. RPG Food world,

Spencers, Giant,

Music world, Health &

Glow

4. Pantaloons Bigbazaar, Food bazaar,

Gold bazaar

5. Sahara Sahara mall

7. ITC Lifestyle

8. Shoppers stop

9. HPCL

10. RPL

11. Globus chain

12. IOC

13. BPCL


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GROWTH IN INDIAN FOOD MARKETGROWTH IN INDIAN FOOD MARKET


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INEFFICIENT SUPPLY CHAIN IN INDIAINEFFICIENT SUPPLY CHAIN IN INDIA


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Classification By Owner shipClassification By Owner ship

Independent retailers(80 85%)

Independent retailers(80 85%)

Chain retailerChain retailer

FranchisingFranchising

Leased departmentLeased department

Vertical marketingunits

Vertical marketingunits

Consumer

Cooperatives

Consumer

Cooperatives

All convenient stores (kirana shops)All convenient stores (kirana shops)

Pantaloons, Spencers Shoppers stopPantaloons, Spencers Shoppers stop

Mc Donalds, Dominos, Petroleum businessMc Donalds, Dominos, Petroleum business

Big shoppy at Big bazaar, Music world at Cross wordBig shoppy at Big bazaar, Music world at Cross word

Manufacturing, wholesaling & Retailing will bedone by the same company E.g.: Reliance Petroleum

Manufacturing, wholesaling & Retailing will bedone by the same company E.g.: Reliance Petroleum

Amul, Mother diary, Anand Bazaar, Supply Co. KeralaAmul, Mother diary, Anand Bazaar, Supply Co. Kerala

Store Type Example


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hhhh

Aditya Birla Retail Limited is the

retail arm of Aditya Birla Group, a

USD 28 billion Corporation.

Aditya Birla Retail Limitedlaunched their first supermarket

more in Pune inMay 2007.

Now ABRL operate 640

supermarkets and seven hyper-markets in India.

The retail chain currently have

workforce of 11,000.

14 per cent market share


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Competitive Priorities-The edgemore. promises a world-class pleasurable shopping experience to Indian consumers in their veryown neighborhood.

more. Quality

Every product at more. goes through a thorough quality check process ensuring 100 per cent

more satisfaction.

more. variety

Apart from a large range of national brands, shoppers will also find a section called the Best ofIndia, which is an assortment of unique products sourced from across India. The wide range of

fresh fruits and vegetables along with private label offerings under brand names Value, Select

and Premium ensure that more. variety is a promise delivered across the store.

more. convenience

Convenient locations within easy reach of consumers and a neat, cheerful and friendly layout,

enough isle space, signage that speaks the consumer's language aiding in identifying what she

has come to shop for easily, all go a long way in ensuring more. convenience.

more. valuemore. promises best in market pricing. Linking up directly with farmers to source fresh fruits,

vegetables and staples ensure great quality as well as great price. Add to this, the membership

program Club more, which provides convenience, customized shopping solutions and savings,

and the more. value promise becomes all the more evident.


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Ready to eat (RTE), Biscuits etc.Baby foods, Energy drinks, health

drinks

Cold

drinks

Vegetables

Fruits

Atta

and

rice

Tea,

Instance juice

And others

Foods

And

Spices

PERSONAL

CARE

PERSONAL

CARE

HOME AND PERSONAL CARE

Entrance

Cash counter

and customerservice

This is a Grid store layout


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GEOGRAPHIC- urban, metropolitan cities

DEMOGRAPHIC-

Family Size-family life cycle

Income- middle and upper middle PSYCHOGRAPHIC-

Socioeconomic Class- A2,B2

BEHAVIORAL-

Occasions-regular

Benefits-quality, economy, service

User status-regular

Usage rate-medium

Loyalty status-medium & strong

Attitude-positive

Targeting:

Middle class and uppermiddle class.

Positioning:

more for you


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VALUE

PROPOSITION

SPECIAL DESK

FOR BILLING

HOME

DELIVERY

PARKING

REFUNDED

ONLINE

PURCHASING

EXCHANGE

PERIOD

SPECIAL

INVITES IN

HAPPEING

EVENTS

REGULAR

UPDATE

EXCLUSIVE

SHOPPING

DAYS

INSTANT

DISCOUNT


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Marketing mixMarketing mix


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1st P: PRODUCT1st P: PRODUCT

Product- refers to the merchandise i.e. the

range of in house and branded product.

Supplementary services -include a componentof fashion, life style and Ambient shopping as

an addition to the core product.

Today, customers buy experiences and not

brands or products.


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Range of productsRange of productsSUPERMARKET

Bakery * Beauty Concepts *

Beverages

Basic Apparels

Cutlery & Cookware

Fruits & Vegetables

Frozen & Dairy Products

FMCG Products

Grocery

Home Care Products

Home Needs & Home Upkeep

Home Decor Products

Mobile Store *

Personal Care & Cosmetics

Processed Food

Pharmacy *

Ready to Cook/Prepared Food

Small White Appliances *

Staples

Stationery

Women's Accessories

HYPERMARKET

Apparels - Men/ Women

Audio & Video (A & V)

Bakery

Beverages

Books and Audio & Video

Computer & Accessories

Do it yourself

Auto Accessories

Electronics

FMCG Products

Footwear

Frozen & Dairy Products

Fruits & Vegetables

Furniture

General Merchandise

Home Care Products

Home Decor Products

Home Needs & Ho


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2nd P: PRICING2nd P: PRICING

Cost plus price and Percentage method

pricing.

Most widely used technique to pricemerchandise

Low prized private labels

Discount on bulk buying


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Private LabelsPrivate Labels

To earn high profit margins on Private Labels

brand

Give the opportunities to stand out from thecrowd

To control on the quality of the product

To offer unique valuable product to customer


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STOCKING OWN BRANDSTOCKING OWN BRAND

ADVANTAGES

High margins

Freedom in pricing strategies

Control on quality Control on scrap and wastage

Helps in market expansion

Adding value to the customer

in giving low price Very few players are into own

manufacturing

DISADVANTAGES

'Just Another Brand'

Underestimate competitors.

customer giving preference to

established brands.

Private label cannot be successfulwithout good effective strategies

costs is very high because theproduction is low

High advertising to promote itsbrand

Potential risk Failure ofproduct.


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4th P: PROMOTION4th P: PROMOTION

To survive in the tough competition all retailoutlets use different strategies to attractcustomers and to retain them

Print medium.

Loyalty programs

In-store Visual merchandising

Main idea make bulk purchase


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Loyalty ProgramLoyalty Program

Benefits 7 star 5 star 3 star 1 star

Discounts on all

subsequent Purchases10% 7.5% 5%

Gift Voucher worth Rs.

200/- on new

enrolment

Upgrade Enrolment Upgrade Kit Upgrade Kit Upgrade Kit Welcome Kit

Add-on Card to Family

Members2 2 1 1

End of Season Sale

PreviewYes Yes Yes Yes

Green Channel Yes Yes Yes Yes

Green Drop Yes - around the yearYes - around the yearexcept End of Season

Sale

No No

Green Exchange 90 days 60 days 60 days 60 days

Green Service Desk Yes Yes Yes Yes

Green offers &

Promotions Yes Yes Yes Yes


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5th P: PEOPLE5th P: PEOPLE

Every second a customer spends inside the

store has to be viewed as Moment of Truth

People is that aspect of the marketing mixwhich adds tangibility to the service of

creating an experience


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6th P:6th P: PROCESSESPROCESSES

Retail-friendly supply network, connects its locations online allover India.

Enables immediate replenishment of stocks at any givenoutlet.

ERP package.

ERP package handles

Merchandise management

Warehouse management

Automated replenishment

Sales management


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7th P : PHYSICAL7th P : PHYSICAL

EVIDENCEEVIDENCE

Managing Appearance of the

building & Location

Maintaining Temperature , Music, Lighting andFragrance inside the store

Availability of services like, trolley, Parking

space etc Stylish Stocking of Merchandise

Mirror finish style flooring


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STRATEGIESSTRATEGIES

Maintaining customerrelationship.

Retaining customers by LoyaltyPrograms.

Giving ambient environment

at stores. Working on Market Research

Methodology.

Maintaining stored products.

Rigorous advertising andPromotion activities.

Attract shoppers & keep themin stores.

Womens need more space.

Honor the transition zone.


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FINDINGS


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More Retail store after its fourth year of operation not yet isprofitable entity. To turn profitable the store is more relying on

its Private Label because in FMCG branded the margin is two

low and it is very high in the case of Private Label. In future the

store is looking to increase its revenue to 30%. So to become profitable the Aditya Birla Retail is planning to

launch Private Label for White Good (Consumer durable and

Electronics) in coming two years.

Global Retailers like Wal-Mart and Tesco have 40% and 55 %and representation of Own label in Their store. Earlier more

have Own Label representation of 5% in their store now it

changes its strategy and keeping 25% of shelf for Private Label.


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