More Retailing Final

8/6/2019 More Retailing Final

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RETAILING

REPORT

ON

Submitted to:

Prof: Nandini Sawant

Submitted By:

Sagar l Mavanuri

Roll no:27


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INDEX

S.NO. CONTENTS

1. Introduction

2. Retail Format

3. Merchandise

4. Store Layout

5. Store Exteriors and Interiors

6. Store Atmosphere

7. Store location and Site Evaluation

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INTRODUCTION

Retailing is the interface between the producer and the individual consumer buying for

personal consumption. This excludes direct interface between the manufacturer and institutional

buyers such as the government and other bulk customers. A retailer is one who stocks the

producers goods and is involved in the act of selling it to the individual consumer, at a margin

of profit. As such, retailing is the last link that connects the individual consumer with the

manufacturing and distribution chain.

The retail industry in India is considered as one of the sunrise sectors in the economy. At

Kearney, the well-known international management consultancy, recently identified India as the

second most attractive retail destination globally from among thirty emergent markets. It has

made India the cause of a good deal of excitement of many foreign eyes. With a contribution of

14% to the national GDP and employing 7% of the total workforce (only agriculture employs

more) in the country, the retail industry is definitely one of the pillars of the Indian economy.

The Indian Scenario

Trade or retailing is the single largest component of the services sector in terms of

contribution to GDP. Its massive share of 14% is double the figure of the next largest broad

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economic activity in the sector. The retail industry is divided into organised and unorganised

sectors. Organised retailing refers to trading activities undertaken by licensed retailers, that is,

those who are registered for sales tax, income tax, etc. These include the corporate-backed

hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised

retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example,

the local kirana shops, owner manned general stores, paan / beedi shops, convenience stores,

hand cart and pavement vendors, etc.

Unorganized retailing is by far the prevalent form of trade in India constituting 98% of

total trade, while organised trade accounts only for the remaining 2%.

Efficiency enhancements and increase in the food retail sales activity would have a

cascading effect on employment and economic activity in the rural areas for the marginalized

workers. Thus, the corporate owned sector is expanding at a furious rate.

ABOUT MORE FOR YOU

Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD 28 billion

Corporation. The Company ventured into food and grocery retail sector in 2007 with the

acquisition of a south based supermarket chain. Subsequently Aditya Birla Retail Ltd. expanded

its presence across the country under the brand "more." with 2 formats

1.Supermarket

more. for you - Conveniently located in neighbourhoods, more. supermarkets cater to the daily,

weekly and monthly shopping needs of consumers. The product offerings include a wide range

of fresh fruits & vegetables, groceries, personal care, home care, general merchandise & a basic

range of apparels. Currently, there are over 600 more. supermarkets across the country.

2.Hypermarket

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more. MEGASTORE - is a one-stop shopping destination for the entire family. Besides a large

range of products across fruits & vegetables, groceries, FMCG products, more.MEGASTORE

also has a strong emphasis on general merchandise, apparels & CDIT.

Currently, nine hypermarkets operate under the brand more.MEGASTORE in Mysore,

Vadodara, Aurangabad, Indore, Bengaluru, Mumbai, New Delhi, Hyderabad and Vashi.

Clubmore. - our loyalty program, currently has a strong membership base of over 1 million

members.

Aditya Birla Retail Limited. currently has an employee strength of over 11,000. Key functions

are headed by professionals with vast retail experience in India & globally.

Quality & Value through own labels:

Aditya Birla Retail Ltd provides customers a wide choice of products under its own labels. The

objective is to provide quality products at attractive price points to customers. Since quality of

the products is of prime importance, stringent quality norms have been set and are followed. All

manufacturing partners are the best in their class.

Own label Food Brands

more., Feasters, Kitchen's Promise, and Best of India

Home & Personal care brands

more., Enriche, 110%, Pestex, Paradise, and Germex

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.

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STORE LAYOUT

The store layout should be planned in such a manner that customer finds enough space

for movement. The layout should be in such a systematic manner that customer can easily locate

products he/she wants to purchase. At More for you a very impressive layout has been put in

place where customer easily finds what he wants. The stores size varied from 1,500 sq ft to

3,000 sq ft, and stocked fresh fruits and vegetables, staples, FMCG products and dairy products

(Exhibits 5-7). The stores stocked their own private label in staples and food under the "Aditya

birla group Select" label (Exhibit-8). Eventually the label would include other food categories

such as dairy products, jams and colas. The fresh model was engineered to clock a faster

turnover of inventory Aditya birla group expected consumers to visit the store at least twice a

week for their top-up groceries. Each store would have an investment of approx $127,000 (Rs. 5

million) to$153,000 (Rs. 6 million). Industry sources expected more f to turn tor you his capital

over six times.

Tasks involved in Store Administration which can contribute towards achieving customer

delight:

1. Floor Maintenance: The premises of the store need to be maintained as per standards

decided upon by the management.

Floor cleanliness and merchandise arrangement play a very crucial role in creating an

image of store in the minds of the target customers. This is crucial when customer tries to

evaluate several stores and matches the pricing of products offered with the services

provided by the store.

Therefore when a customer tries to compare More for you with Fair Price store, Fair

Price fails terribly as More for you has specially emphasized on its services apart from

pricing strategy.

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8

HOME FURNISHING PROCESSED FOOD

N

ON-FOOD

(Personal

Care)

DAIRY

PLASTICWA RE

S

PROCESSED

FO

ODS

PROCESSEDFOOD

STAPLES

PERSONALC

ARE

FOOD&BEVERAGE

S

FOOD&BEVERAGES

FRUITS&VE

GETA

BLES

VEGETABLES

BEVERAGES

/DAIRY

TILLTIL

L

STAPLESMOBILES

PROCESSED

FOOD


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But More for you is using a combination which definitely making it lead is that it

is providing all services a convenience store can provide but at better price which is

leading to Customer Satisfaction and Delight.

At More for you very impressive initiative was taken to maintain its overall store

floor maintenance in the name of Operation Shine where days were systematically

assigned for a particular task and at end of it store performance was evaluated for each

store which lead to store maintained and cleaned which gave a very good signal to its

customers for its uncompromising take on floor maintenance.

2. Manpower Planning: The next most important thing that a customer looks after entering

the store is how Customer Care Associates (CCA) attend to them, how well a CCA and

other staff members at the front end are dressed, educated and competent enough to

respond to their queries.

Manpower Planning may include certain functions like:

a. Shift Planning: A roster is maintained at a More for you Store in which the store

manager plans and assigns optimum staff to each shift also considering weekdays and

weekends.

This is done basically on the basis of footfalls of customer at a particular time. Hence

providing for more staff during evening hours when footfalls are high.

The Store Manager also has to intelligently assign work to his staff members

according to footfalls as he can assign routine work to supervisor and CCAs at lean

hour of the day for work like stock take (Physical Inventory, Stock Indenting etc). He

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Custom

Service

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has to push his staff towards attending customers at rush hours ask them to drive sales

through their efforts. This helps More for you to not only increase sales but gain

Customer Satisfaction and Delight.

b. In charge: For every task in the store a staff member is made incharge of that task so

that no confusion is there on the floor and in the store as a whole.

Various tasks like opening of store, indenting of F & V and milk, GRN, stock

correction etc. is assigned among supervisors shift wise.

CCAs are assigned bays and responsibility given to them regarding their bay

regarding maintenance of Planogram, FIFO, FEFO, proper stacking etc. By doing the

above the store can manage display efficiently and ensure the service of the store to

an optimal level.

MSRs are assigned to regularly make announcements of schemes offered by the store

as it is very crucial as communication helps consumer make decision and push sales.

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STORE EXTERIORS AND INTERIORS

The explanation and diagram of store exteriors and interiors is given in the adjacent pages.

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ATMOSPHERICS

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A very integral part of managing inventory at store level is display it correctly. The best

merchandise may remain unsold if it not displayed in a manner that is appealing and convenient

for the customer. A very simple example can be illustrated like if rice packets are put on high

bays it will become very inconvenient for which mostly female customer do the buying, hence

would negatively impact sales.

Display can be considered as a silent salesperson helping to self sell the products. Display is such

a critical part in serving customers as it helps avoid confusion and guides customer to make

prompt decision.Some of the key aspects of More for yous atmospherics are as follows:

Layout and ambience was Well lit, Neat, Bright and Easy to read Signage.

Highly visible store promotion, re iterating value for money proposition.

Store Faade- Bright, Striking and Primary Colors.

Prompt security round the clock.

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SCM AND THE IT SYSTEM BEING FOLLOWED BY THE ORGANISATION

Diagram and explanation are given in the adjacent pages. It is to be noted that the

organization uses the SAP Technology.

Some important processes followed by More for you in inventory management helping

them reach optimality in inventory levels and customer satisfaction are as follows:

1. Physical Verification of Stock: Under this process stocks are physically verified and

entered into the SAP. This activity is known as Stock Take.

Any variation with the book stock is recorded. This helps the store to control its

shrinkage if the SKUs are physically lesser than the book stock. Similarly excess stock if

any is also recorded.

The implication of these variations on planogram display is such that in case of Negative

variation i.e. Physical Stock < Book Stock then it leads to shortages of that SKU as Auto

Replenishment fails to function as inspite of stock in realty should have triggered the

Target Stock but will not as the system shows that there is more stock (Book Stock). This

causes great inconvenience to the customers like if a customer comes to purchase a

product of daily requirement like Spices and he is not getting it regularly due to such a

discrepancy he will definitely get unsatisfied and the store loses sale of that SKU due

shortage inspite of demand.

And in case of Positive variation i.e. Physical Stock > Book Stock it creates a different

kind of problem where excess stock is sent by the DC and it becomes difficult to manage

it as it have to remain scattered all over the floor waiting for the stocks on the bay to get

cleared. This also gives negative impression about the store as an ill managed store where

products are scattered and there is problem in free movement. This should also be

avoided.

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2. Proper recording of Dump and Shrinkage: To maintain proper MBQ it is very

important to regularly update dump and shrinkage. This has to be done apart from Stock

take which is done once a month or as and when asked by the management.

3. Push Indenting of Promo article for a particular scheme: During an offer on a product

a sudden spurt in demand can be seen which is quite temporary in nature. There it is not

advisable to change MBQ as it is more permanent in nature. In case of upward revision of

MBQ the product will be delivered in increased quantity even after removal of promo

offer. There a temporary increase in indenting is done called Push Indenting. Hence after

withdrawal of the scheme the product is delivered on the normal basis.

4. Revision of MBQ: There is also a process of revising MBQ in case there is a regular

increase in demand and the store is maintaining lower MBQ meaning regular shortages.

There an upward revision is done.

In case of slow moving goods which the store manger feels is a drag on store

performance and is just blocking space he can request for revising the MBQ to lower

levels or removing it from the shelf altogether. The product has to be sent back to DC.

5. DSD Indenting: Direct Store Delivery (DSD) Indenting is done for very fast moving

goods like beverages, highly perishable goods like ice-creams and also glass items which

highly fragile in nature.

On the part of consumer it helps him to receive products fresh in case of perishables

leading to maintainability of high quality standards.

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On part of management it reduces cost of holding such perishable and fragile products as

the store will receive from the vendor only products which are saleable and meet

standards.

STORE LOCATION AND SITE EVALUATION

More for you works explicitly on proximity to customers, provision of good quality of

products and excellent ambience. Some of the parameters which are considered under site

evaluation and store location are as follows:

Demographics- Rise in the working population which is young, pay- packets

which are hefty, more nuclear families in urban areas, rise in the number of

women working, more disposable income and customer aspiration, western

influences and growth in expenditure for luxury items. All these are the factors for

the growth in Indian organized retail sector. In fact, India retail industry is the

fastest growing industry in India and it accounts for 10% of the country's GDP. In

2006, the retail industry in India amounted to US$ 200 billion and out of this the

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organized retail sector in India amounted to US$ 6.4 billion. By 2010, the Indian

organized retail sector is expected to rise to US$ 23 billion.

Proximity to supply sources- Aditya birla group started its retail operations of

more for you stores with following supply chain model. Procuring directly from

the farmers and operating with moderate margin but mass selling was key to more

for you operations for first few months. Whole Sale Trading (WST) Aditya birla

group formalized its second supply chain model to shift itself from grocery

retailer to grocery supplier by focusing and establishing itself in Mandis.

Economic base: Today, Aditya birla group Retails 920 stores are spread across 20

formats in 80 cities and 14 States covering almost 4.5 million sq. ft. of consumer-facing

retail space. Its Hypermart encompasses a million sq ft as of now, and this year will see a

few more opening up. However, like other retailers are, Aditya birla group too, is

grappling with the slowdown which has impacted its plans. In the last one year, because

of the slowdown, say these sources, there have been some cut backs. While there have

been reports of cutting back of staff strength in ABG, industry sources say that of Aditya

birla group Retail 25,000 employees, around three to five per cent of managerial staff

were rendered surplus and were either redeployed or moved out Aditya birla group plans

to invest Rs 25000 crores in the next 4 years in their retail division and has plans to begin

retail stores in 784 cities across the country. Union Bank of India and FINO has enrolled

1,600 vegetable and fruit vendors who are regular suppliers to More for you. These

vendors will soon be issued biometric cards using which they can avail themselves of

small loans from the bank.

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Competition- Spencer : Oldest Retailer in India

135 Stores in 27 Cities

Plans to open 365 Stores in 365 days.

Big Bazaar: 53 Stores and fast expanding.

Bharti: Joint Venture with Walmart

Plans to begin operations next year.

TATA Group: Has set up Star Bazaar and Westside all over

country.

Store location and its availability: As already mentioned More for you is located keeping

in mind proximity to customers and suppliers both. There is smooth transport facility for

carrying goods and commodities. It is to be noted that vegetables and fruits from such

farms are collected through aditya birla group own logistics and brought to collection

Processing centers where quality check and other required processing is done.

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