Presentation1

DEVELOP WINNING DEVELOP WINNING STRATEGIES IN FOOD RETAILSTRATEGIES IN FOOD RETAIL

SUBMITTED TO:- Ms.Priya Arora

SUBMITTED BY:- Mr. Abdullah ShahidMr.Abu ObaidMr.Mohd. TauqirMr.Abbhijeet SahaMs.Anu Bhatti

Introduction TheThe food industry is on a roller coaster ride as food industry is on a roller coaster ride as

Indians continue to have a feast. Fuelled by– large Indians continue to have a feast. Fuelled by– large disposable incomes – the food sector is witnessing disposable incomes – the food sector is witnessing a remarkable change in consumption patterns, a remarkable change in consumption patterns, especially in terms of food. Food retailing has especially in terms of food. Food retailing has come of age -- from a period when food items were come of age -- from a period when food items were sold in small road side grocer shops & mandis, sold in small road side grocer shops & mandis, haats and bazzars by vendors to a stage when food haats and bazzars by vendors to a stage when food products (processed and groceries) are retailed products (processed and groceries) are retailed through supermarket stores where consumers can through supermarket stores where consumers can inspect, select and pick up the products they like in inspect, select and pick up the products they like in a comfortable ambience and still pay a fair price a comfortable ambience and still pay a fair price for the product and the merchandise and sometimes for the product and the merchandise and sometimes even pay less than the price they would have paid even pay less than the price they would have paid at the nearest food stores. Shopping for groceries is at the nearest food stores. Shopping for groceries is no longer a strenuous and uncomfortable affairno longer a strenuous and uncomfortable affair..

continuecontinue

Instead, it is a pleasurable experience. From Instead, it is a pleasurable experience. From simple trading activity, food retailing is now simple trading activity, food retailing is now heading to the status of an industry. Imagine heading to the status of an industry. Imagine yourself walking through the air conditioned yourself walking through the air conditioned lanes smelling fresh food and groceries, lanes smelling fresh food and groceries, enjoying light music, experiencing five star enjoying light music, experiencing five star ambiences and above all buying food products ambiences and above all buying food products (vegetables, spices and beverages) without (vegetables, spices and beverages) without bargaining with the vendors. Food retail has bargaining with the vendors. Food retail has surpassed the dominating apparel and surpassed the dominating apparel and accessories sector.accessories sector.

Causes to Revolutionizing Food Causes to Revolutionizing Food Retailing in India:Retailing in India:

1: Changing life styles and tastes1: Changing life styles and tastes2: Growing need for convenience2: Growing need for convenience3: Increasing disposable income3: Increasing disposable income4: Increasing numbers of working women4: Increasing numbers of working women5: Change in consumption patterns5: Change in consumption patterns6: Higher aspirations among youth6: Higher aspirations among youth7: Impact of western lifestyle7: Impact of western lifestyle8: Plastic Revolution – Increased use of credit cards and 8: Plastic Revolution – Increased use of credit cards and

debit cardsdebit cards

Major Players:Major Players:

Safal OutletsSafal Outlets SubhikshaSubhiksha Reliance FreshReliance Fresh MoreMore Big BazarBig Bazar Food MartFood Mart ITC,s e-chaupalITC,s e-chaupal

Reliance Fresh:Reliance Fresh:

Profile:Profile:

Reliance fresh-part of Reliance IndustriesReliance fresh-part of Reliance Industries Key People: Mukesh AmbaniKey People: Mukesh Ambani Headquarter: MumbaiHeadquarter: Mumbai Website: Website: www.relianceretail.comwww.relianceretail.com It has near about 400 storesIt has near about 400 stores Tied up with Apple for its i-storeTied up with Apple for its i-store

MORE: Aditya Birla GroupMORE: Aditya Birla Group

Profile:Profile:

Part of Aditya Birla RetailPart of Aditya Birla Retail Chairman : Kumar Manglam BirlaChairman : Kumar Manglam Birla Headquarter : MumbaiHeadquarter : Mumbai Motto : More quality, More variety, Motto : More quality, More variety,

More convenience, More ValueMore convenience, More Value It has near about 656 storesIt has near about 656 stores Website: www.adityabirla.comWebsite: www.adityabirla.com

Vishal Food MartVishal Food Mart

At Jalandhar:At Jalandhar:

Profile:Profile:

A branch of Vishal Mega MartA branch of Vishal Mega Mart Chairman : Mr. Ramchandra AgarwalChairman : Mr. Ramchandra Agarwal Headquarter : DelhiHeadquarter : Delhi It has near about 180 stores in all over countryIt has near about 180 stores in all over country Tag line : Save More, Spend LessTag line : Save More, Spend Less Wabsite : www.vishalmegamart.netWabsite : www.vishalmegamart.net

Objective of The Project:Objective of The Project:

Develop winning strategies in food retailDevelop winning strategies in food retail Consumer Behaviour Consumer Behaviour Modern Food Market Vs Traditional MarketModern Food Market Vs Traditional Market

Research Methodology:Research Methodology:

Visits to the food retail marketsVisits to the food retail markets

Survey of the food retail marketsSurvey of the food retail markets

QuestionnaireQuestionnaire

Which one is better?Which one is better?

50% modern market50% modern market

30% traditional market30% traditional market

20% both20% both

(On the basis of survey)(On the basis of survey)

Customers goes to considerCustomers goes to consider::

10% considers price10% considers price

40% considers quality40% considers quality

50% considers both50% considers both

Harpreet Kaur (A regular customer of V-food mart)- Harpreet Kaur (A regular customer of V-food mart)- ‘‘mahnga roye ek bar , sasta roye bar-bar’mahnga roye ek bar , sasta roye bar-bar’

ssttaass

Is food retail industry fastest Is food retail industry fastest growing?growing?

60% accept this60% accept this

20% people don't accept20% people don't accept

20% don't have idea20% don't have idea

Chance of improvementChance of improvement

60% people think that there is a chance to 60% people think that there is a chance to improvement in existing modern food retail improvement in existing modern food retail marketsmarkets

20% says it is satisfactory20% says it is satisfactory

20% don't have any idea20% don't have any idea

VegetablesVegetables

In the town areas maximum people purchase In the town areas maximum people purchase the vegetables from Traditional market about the vegetables from Traditional market about 100%.100%.

In the case of cities like Mumbai & Delhi :In the case of cities like Mumbai & Delhi :

Vegetable marketing from modern food market Vegetable marketing from modern food market is increasing rapidly but right now it is not is increasing rapidly but right now it is not more than 5%.more than 5%.

Is modern food retail market better Is modern food retail market better for farmers?for farmers?

50% says it is better for farmers50% says it is better for farmers

30% have negative response30% have negative response

20% don't have idea20% don't have idea

Are modern food retail markets Are modern food retail markets harassing to the local markets?harassing to the local markets?

50% accept this50% accept this

40% don't accept40% don't accept

10% don't have any idea10% don't have any idea

A kirana shopkeeper AmreeshA kirana shopkeeper AmreeshSays: there is no any affect Says: there is no any affect

What about FDI in food retail What about FDI in food retail market?market?

50% people think that FDI will have a positive 50% people think that FDI will have a positive effect in Indian food retail market.effect in Indian food retail market.

30% people consider FDI as a negative effect 30% people consider FDI as a negative effect in Indian food retail market.in Indian food retail market.

20% people don't have any idea about FDI.20% people don't have any idea about FDI.

Observation:Observation:

Food FightFood Fight:: Interaction between retailers and producersInteraction between retailers and producers is is

of great importance to ensure the maintenance of great importance to ensure the maintenance of an of an efficient chainefficient chain that facilitates that facilitates development of the industry as a whole. Food development of the industry as a whole. Food retailers and producers will debate on vital retailers and producers will debate on vital issues to determine the way ahead for the food issues to determine the way ahead for the food industry in this session .industry in this session .

Investment in The Food sector:Investment in The Food sector:

The Urban Middle Class continues to grow by 20-The Urban Middle Class continues to grow by 20-25 million annually. The population is young, 25 million annually. The population is young, better exposed to modern lifestyles, and has a better exposed to modern lifestyles, and has a preference for packaged food and beverages. More preference for packaged food and beverages. More than 1,000 Food and Grocery outlets operational than 1,000 Food and Grocery outlets operational across tier-I and tier-II cities and Retail space of across tier-I and tier-II cities and Retail space of over 3 million sq. ft. have come up for F&G over 3 million sq. ft. have come up for F&G supermarkets, department stores and hypermarkets. supermarkets, department stores and hypermarkets. 25 major F&G Retailers emerged in less than a 25 major F&G Retailers emerged in less than a year and Retail sales in this segment grew by year and Retail sales in this segment grew by nearly 150 per cent over 2006.nearly 150 per cent over 2006.

Opportunity in Food Processing:Opportunity in Food Processing:

Nearly 80 per cent of agricultural produce in developed Nearly 80 per cent of agricultural produce in developed countries gets processed and packaged. It is just about 1.3 countries gets processed and packaged. It is just about 1.3 per cent in the case of India - a reason why less than one per cent in the case of India - a reason why less than one per cent of the F&G retail segment is organised. Even the per cent of the F&G retail segment is organised. Even the existing organised F&G Retailers are finding it difficult to existing organised F&G Retailers are finding it difficult to keep their stacks full & fresh. keep their stacks full & fresh.

This is just the right time for global firms to invest in the food This is just the right time for global firms to invest in the food processing sector, especially so when the government seems processing sector, especially so when the government seems eager to boost rural/farm incomes. Marine Food Parks and eager to boost rural/farm incomes. Marine Food Parks and Agricultural Special Economic Zones are already being Agricultural Special Economic Zones are already being worked out to ensure that farmers are not displaced. The worked out to ensure that farmers are not displaced. The opportunity is huge.. and early movers will reap the maximum opportunity is huge.. and early movers will reap the maximum advantageadvantage

Boost the Incomes of Indian Boost the Incomes of Indian Farmers:Farmers:

Organised F&G retail requires direct sourcing of bulk Organised F&G retail requires direct sourcing of bulk produce and this ensures a boon for farmers. produce and this ensures a boon for farmers. Initiatives thus far, are proving the point as traditional Initiatives thus far, are proving the point as traditional mandis loose relevance, middlemen get eased out, mandis loose relevance, middlemen get eased out, and as a result there is substantial increase in the and as a result there is substantial increase in the income of farmers. Adverse effects of fragmentation income of farmers. Adverse effects of fragmentation of land holdings can also be effectively countered. of land holdings can also be effectively countered. Initiative and Investment by Global companies can Initiative and Investment by Global companies can help make Cluster farming, Demand oriented farming help make Cluster farming, Demand oriented farming and Raw material oriented farming the mainstay for and Raw material oriented farming the mainstay for Indian farmers. India could well become the agri-Indian farmers. India could well become the agri-business powerhouse in the export of fruits, business powerhouse in the export of fruits, vegetables, spices and food grains. vegetables, spices and food grains.

Opportunities for Opportunities for Food & Farm supplies:Food & Farm supplies:

More than 5,000 new outlets, 100 hypermarkets, More than 5,000 new outlets, 100 hypermarkets, 500 department stores and 2000 supermarkets are 500 department stores and 2000 supermarkets are opening. Over 5,000 small and big existing outlets opening. Over 5,000 small and big existing outlets are to undergo a complete facelift. But the supplies are to undergo a complete facelift. But the supplies are inadequate. Organised retail in India will need are inadequate. Organised retail in India will need fresh and processed food and farm produce worth fresh and processed food and farm produce worth US$ 30 billion by the year 2010. US$ 30 billion by the year 2010.

Key Winning Strategies In Food Key Winning Strategies In Food Retailing:Retailing:

Consideration of FDIConsideration of FDI Entry of corporate players Entry of corporate players Retailers have been region specificRetailers have been region specific Entrance in the unbranded food spaceEntrance in the unbranded food space Regular contact with regular customersRegular contact with regular customers Schemes for regular customersSchemes for regular customers Festive discountsFestive discounts Quality should be bestQuality should be best

Conclusion:Conclusion:

The past 4-5 years have seen increasing activity in The past 4-5 years have seen increasing activity in food retailing. Various business houses have already food retailing. Various business houses have already planned for few investments in the coming 2-3 years. planned for few investments in the coming 2-3 years. Though the retailers will have to face increasingly Though the retailers will have to face increasingly demanding customers and intensely competitive demanding customers and intensely competitive rivals, more investments will keep flowing in and the rivals, more investments will keep flowing in and the share of organized food sector will grow rapidly.share of organized food sector will grow rapidly.

Organized food retailing in India is surely poised for Organized food retailing in India is surely poised for a takeoff and will provide many opportunities both to a takeoff and will provide many opportunities both to existing players as well as new entrants.existing players as well as new entrants.

Limitations:Limitations:

Indian taxation system favoures unorganised Indian taxation system favoures unorganised food retail business.food retail business.

Middle class psychologyMiddle class psychology

Increasing real estate priceIncreasing real estate price

Politics for votesPolitics for votes

Suggestion to Develop Food Retail Suggestion to Develop Food Retail Market:Market:

Create a calendar for customers with shop's name and Create a calendar for customers with shop's name and address on it. address on it.

Submit to the local newspaper, trade journal or other Submit to the local newspaper, trade journal or other publications.publications.

Create an annual award and publicize it. Create an annual award and publicize it. Get a memorable local or toll-free phone number. Get a memorable local or toll-free phone number. Be sure to reach the non-English speaking market Be sure to reach the non-English speaking market

(local area) as well. (local area) as well.

Bibliography:Bibliography:

Survey (Khanna, MandiGobindgarh)Survey (Khanna, MandiGobindgarh)

www.researhandmarkets.comwww.researhandmarkets.com

www.chillibreeze.comwww.chillibreeze.com

MagazinesMagazines

Annexure:Annexure: Q.1: Is organized food retail market better than unorganized food retail market?Q.1: Is organized food retail market better than unorganized food retail market?

Ans.: a) Yes b) No c) No ideaAns.: a) Yes b) No c) No idea

Q.2: Are you think that organized food retail sales price of commodities less in comparison of Q.2: Are you think that organized food retail sales price of commodities less in comparison of unorganized food retail market price?unorganized food retail market price?

Ans.: a) Yes b) No c) No ideaAns.: a) Yes b) No c) No idea

Q.3: Is organized food retail industry fastest growing industry in India?Q.3: Is organized food retail industry fastest growing industry in India?

Ans.: a) Yes b) No c) No ideaAns.: a) Yes b) No c) No idea

Q.4: Are modern (organized) food retail markets harassing to the local or traditional markets?Q.4: Are modern (organized) food retail markets harassing to the local or traditional markets?

Ans.: a) Yes b) No c) No ideaAns.: a) Yes b) No c) No idea

Q.5: What do you consider to purchase the commodities from food retail market?Q.5: What do you consider to purchase the commodities from food retail market?

Ans.: a) Price b) Quality c) BothAns.: a) Price b) Quality c) Both

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Q.6: Is there a chance to improve the facility in modern food retail market?Q.6: Is there a chance to improve the facility in modern food retail market?

Ans.: a) Yes b) No c) No ideaAns.: a) Yes b) No c) No idea

Q.7: Do u purchase vegetables from organized food retail market?Q.7: Do u purchase vegetables from organized food retail market? Ans.: Ans.: a) Yes a) Yes b) No b) No

Q.8: What is the impact of modern (organized) food retail market?Q.8: What is the impact of modern (organized) food retail market?

Ans.: a) Good b) Bad c) No affect Ans.: a) Good b) Bad c) No affect Q.9: Is organized food retail market better for farmers?Q.9: Is organized food retail market better for farmers?

Ans.: a) Yes b) No c) No ideaAns.: a) Yes b) No c) No idea

Q.10: What do you think about FDI in food retail markets?Q.10: What do you think about FDI in food retail markets?

Ans.: a) Good affect b) Bad affect c) No ideaAns.: a) Good affect b) Bad affect c) No idea

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