Retailing Case Studiesdss

Retailing case studiesRetailing industry is the "cash counter" for all the companies. More so for FMCG (Fast Moving Consumer Goods) companies. How in the world some one can explain Wal-Mart continuing to be one of the top-five Fortune 500 companies in the world? What does Wal-Mart manufacture? It manufactures world-class service utility. A typical google search for retailing would yield millions of results underscoring the importance of retailing. The other global retailers such as TESCO, Aldi, Target, Metro, GAP, etc have created new business platforms with their unique and sustaining business models.Retailing in India, mostly unorganized got a boost in the mid-90s with many Indian companies taking the organized route. Leading the pack is Future Group's (headed by Kishore Biyani) Big Bazaar, Pantaloons, etc. Following the success of these multi-location stores, other Indian conglomerates have started operating several Pan-India retail outlets. While Reliance Industries (led by Mukesh Ambani) has panned out Reliance Fresh outlets, Birla Group (headed by Kumar Mangalam Birla) had been operating 'MORE' retail outlets throughout the country. Other prominent Indian retail outlets are Subhiksha, Food World, etc.IBSCDC's collection of Retailing case studies relate both to the Global Retail companies as well as Indian Retail companies. Some of these case studies are best selling case studies with their focus and clearly defined business dilemmas.Browse Retailing Case Studies BySub-Categories Global Retailers Indian RetailingIndustries Services Banking, Insurance & Financial Services Entertainment Health Care Retailing Telecommunications Manufactruing Beverages Engineering, Electrical & Electronics Home Appliances & Personal Care Products Oil & Natural Gas Conglomerates General BusinessCompanies & Organizations AEON Aldi Apple ASDA Best Buy Bharti Bharti Retail Carrefour Circuit City Cott Corporation DAIEI Deutsche Bank FOPP HLL Indiabulls Inditex ITC Jungle Jim KARSTADTQUELLE Kmart Liz Claiborne Metro Metro AG METRO Cash and Carry Mitsubishi Pantaloon Philip Green Reliance RPG Saks Fifth Avenue Saks Inc. Seiyu Shoprite Sony Starbucks Subhiksha Sunoco Inc Target Tesco The Body Shop The Otto Group Trust-Mart Uniqlo VF Corp Walgreen Co Walmart Wegmans WH Smith PLC WuMartRegions ASIA CANADA China EUROPE GERMANY Global India Japan SOUTH AFRICA South Korea SPAIN UK US DubaiRecently Bought Case StudiesView more... Varun Softech Project Services: Project Control to Manage Changes in Project Plan Varun Softech Project Services: Project Control to Manage Changes in Project Plan Age Diversity at Ashok Leyland Ltd.: Narrowing the Generation Gap Big Bazaar, India's Hypermarket Chain: Can its Ambitious Future Plans Succeed? Formation of Global Trade Unions: Prospects and Challenges Jet Airways Labour Dispute: Trade Unions and Indias Labour Conundrum Mahindra Satyams Virtual Pool Program (VPP): Managing Talent in a Downturn? Tata Tea and the Employee Buy Out Model The Tata Group: HR Challenges Varun Softech Project Services: Project Control to Manage Changes in Project Plan Demand for and Supply of Money: A Case of India FII In India: Is It Making The Economy Vulnerable? Global Financial Crisis and ITS Impact on Real and Financial Sectors in India Indian Growth Paradox Trade Deficits, Current Account Deficits and Exchange Rates in US: The Policy Implications Coca-Cola: Targeting Niche Market through Brand Extension Coca-Colas Multi-branding Strategy: Is it the Right Move? Fairness Products Market in India: Who is the Fairest? Hindustan Unilever Limiteds Rexona: Repositioning Rexona Deodorant Indian FMCG Player Dabur: Repositioning its 'Real Activ' Varun Softech Project Services: Project Control to Manage Changes in Project Plan Varun Softech Project Services: Project Control to Manage Changes in Project Plan Age Diversity at Ashok Leyland Ltd.: Narrowing the Generation Gap Big Bazaar, India's Hypermarket Chain: Can its Ambitious Future Plans Succeed? Formation of Global Trade Unions: Prospects and Challenges Jet Airways Labour Dispute: Trade Unions and Indias Labour Conundrum Mahindra Satyams Virtual Pool Program (VPP): Managing Talent in a Downturn? Tata Tea and the Employee Buy Out Model The Tata Group: HR Challenges Varun Softech Project Services: Project Control to Manage Changes in Project Plan Demand for and Supply of Money: A Case of India FII In India: Is It Making The Economy Vulnerable? Global Financial Crisis and ITS Impact on Real and Financial Sectors in India Indian Growth Paradox Trade Deficits, Current Account Deficits and Exchange Rates in US: The Policy Implications Coca-Cola: Targeting Niche Market through Brand Extension Coca-Colas Multi-branding Strategy: Is it the Right Move? Fairness Products Market in India: Who is the Fairest? Hindustan Unilever Limiteds Rexona: Repositioning Rexona Deodorant Indian FMCG Player Dabur: Repositioning its 'Real Activ'New Case Studies In LeadershipView more... The "Wrap" Story Kejriwal - Redefining Indian Politics Leadership Change at Unilever: Can Paul Polman build on the Achievements of Patrick Cescau? Intel After Barrett: Challenges for its First Outside Successor Exit of Bill Gates: Future of Microsoft Apple Computer Inc. After Steve Jobs: The Succession Dilemma Wendy's: Can New Owner Triarc give it a Successful Makeover? Sears Can Edward Lampert Save It? Reinvigorating Motorola: The New co-CEO's Daunting Task Reinventing Hewlett Packard with Mark HurdBest Selling Case Studies In LeadershipView more... Colgate-Palmolive: Leadership Style of Reuben Mark Tata Group: Under Ratan Tata Troy: Trojan War and Leadership Styles Coach Carter: The Change Agent Reinventing Hewlett Packard with Mark Hurd Carlos Ghosn as CEO of Nissan and Renault: Can he rework the Nissan magic? Howard Stringer: Turning Sony Around Grooming Future Leaders: The Infosys Way Napoleon - The Master Strategist Napoleon - The Master StrategistReliance Freshis the convenience store format which forms part of the retail business ofReliance IndustriesofIndiawhich is headed byMukesh Ambani[citation needed]. Reliance plans to invest in excess of250 billion in the next 4 years in their retail division.[citation needed]The company already has 1691 Reliance Fresh outlets across the country.[1]These stores sell fresh fruits and vegetables, staples, groceries, fresh juice, bars and dairy products.A typical Reliance Fresh store is approximately 30004000 square feet and caters to a catchment area of 23km.[citation needed]Contents[hide] 1History 2Controversy 3See also 4References 5External linksHistory[edit]After launch, in a dramatic shift in its positioning and mainly due to the circumstances prevailing in UP, West Bengal and Orissa, it was mentioned recently[when?]in news dailies that Reliance Retail is moving out of stocking fruits and vegetables[citation needed].Reliance Retailhas decided to minimise its exposure in the fruit and vegetable business.The company may not stock fruit and vegetables in some states. Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned.When the first Reliance Fresh store opened in Hyderabad last October[citation needed], not only did the company say the stores main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its farm-to-fork" theory[citation needed]. The idea the company spoke about was to source from farmers and sell directly to the consumer, removing middlemen out of the way.Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trends, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various formats that Reliance has rolled out.[citation needed]In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty Stores branded as iStore, sTarting with Bangalore.[citation needed]Controversy[edit]In 2007 Reliance stores in Jharkhand faced the ire of mobs of local vegetable vendors. They vandalised and attacked the stores claiming that they were stealing their livelihoods.[2]In August 2007, Uttar Pradesh Chief Minister Mayawati ordered to close 10 new stores keeping view of Law & order situation. In November 2007, Reliance Fresh stores were attacked byBharatiya Janshakti Partysupporters headed byUma Bharti.[citation needed]See also[edit] List of Indian companies Namdhari's Fresh Reliance Footprint Reliance JewelReferences[edit]1. Jump up^"How Reliance Got Top Position As India's Retailer". Authint Mail. 2014-04-21. Retrieved2014-05-05.2. Jump up^"National: Traders attack Reliance Fresh retail outlets". The Hindu. 2007-05-13. Retrieved2010-12-31. http://www.independent.co.uk/news/world/asia/economic-growth-in-asia-indias-store-wars-423133.htmlExternal links[edit] Reliance Official Site Reliance Retail Podbharti'spodcastreporting on the stone pelting incident at Reliance Fresh store atRanchi.[hide] v t eReliance Industries Limited

Companies Reliance Industries Reliance Industrial Infrastructure Reliance Logistics Reliance Solar Relicord Reliance Petroleum Reliance Fresh Reliance Retail Reliance Digital Jamnagar Refinery Mumbai Indians Network 18

Institute Reliance Institute of Life Sciences Dhirubhai Ambani International School Hurkisondas Hospital

Notable People Dhirubhai Ambani Mukesh Ambani Nita Ambani Anand Jain

Charitable trust Reliance Foundation

Categories: Retail companies of India Reliance Industries Companies based in Mumbai Companies established in 2006 Supermarkets of IndiaA fresh approach to food retailingTamil Nadu-based Pazhamudir has a successful business model in a challenging space thats been scaled up through product sourcing and pricing, says the retail innovation studyArundhati RamanathanTweetFirst Published:Fri, Apr 12 2013. 01 19 AM IST

Kovai Pazhamudir Nilayam MD Senthil Natarajan. Photo: SaiSen/MintChennai:Senthil Natarajan, 30, trained as a software engineera skill hes using to give his business an edge over competitors.The managing director of Kovai Pazhamudir Nilayam is taking the food and vegetable retail chain based in Tamil Nadu and founded by his father into the modern age. The younger Natarajan scouts the best sources overseas for exotic fruits and is also upgrading the system by using technology.By contrast, his fatherN. Natarajan, the founder of theRs.160 crore chain, once used to collect market intelligence by roaming the streets of Coimbatore with a fruit basket.The older Natarajan, the second of four brothers, dropped out of school as a nine year old to sell fruits along with his elder brother to make ends meet. He worked in a small fruit shop till the age of 14 and used his savings from this to open his first store by investingRs.300 in 1965. My father was of the view that when things we wear on our feet are sold in shops, things we eat should be dealt better, said his son, who espouses this as his philosophy for the business.The key to Pazhamudirs success is old-fashioned common sensegive customers fresh produce at an affordable price. What has helped is that the Natarajans introduced several firsts that are now emulated by at least 80 other retailers in the region. These measures were aimed at making the business customer-friendly and less prone to price gouging. Pazhamudir was the first to introduce fixed prices for fruit, allowing customers to choose those they wanted to buy. The company also introduced the system of selling fruit by weight instead of by the dozen.Growth was slow in the first two decades, as Natarajan only had four stores by 1985. But there was a reason for that.We were focused on ensuring each store was profitable on its own. This is something we ensure even today, said Senthil. By the time the enterprise spread to Chennai in 2001, Natarajan was also selling vegetables.Vegetables are less profitable, with a mark-up of up to 20%, compared with 30% for fruit. However, vegetables doubled footfalls to an average of 2,500 in a day. Growth was still slowone outlet was added every year as the company lacked a distributing centre with cold storage facilities and there was no central purchasing plan. The real growth came after 2005 when the younger Natarajan joined the business, having worked withMicrosoft Corp.for a year in Hyderabad.His introduction of technology and warehousing increased the cost of operations by 2-5% because of the extra logistics, rentals and labour. But this also allowed the business to stock more exotic fruits and vegetables, thanks to cold storage facilities. Also, wastage came down to 4-5% from 8%.Expansion was accelerated. We began opening an outlet once in every three months from the earlier pace of one outlet a year, Senthil Natarajan said.The firm now has 33 outlets in nine cities in Tamil Nadu, of which 19 are in Chennaiits biggest marketand nine in Coimbatore. It plans to add another 30 in Chennai by 2015. The average investment per store isRs.50 lakh and break-even takes about three to four years, said Natarajan, who has grown his business without seeking recourse to debt.Retail chains such asReliance Fresh, the food and groceries supermarket chain ofReliance Industries Ltd, have a larger footprint with more than 30 stores in Chennai and four in Coimbatore.Natarajan said, however, Pazhamudirs average sales per store is the highest among organized chains, making it the largest regional retailer by revenue. Pazhamudir has been growing at a compounded annual growth rate of 10-15% for the last three years and expects to have closed fiscal 2013 withRs.160 crore revenue. To its credit, the retailer also has a higher net gross margin of close to 20%, compared with 11-15% for its peers, said a Booz & Co. and Retailers Association of India report on successful innovations in Indian retail presented at the Retail Leadership Summit in February. The business shows how efforts focused on the supply side can also deliver consumer and business impact, the study said.However, scaling up will come with its own set of challenges, said analysts.Food and grocery retailing is aRs.18 trillion industry but the organized segment is justRs.450 billion, saidBinaifer Jehani, director, Crisil Research. Among all other retailing, gross margins in food and vegetable are among the lowest at 10-15%. And it takes seven to eight years to break even, Jehani said.It is a complex business. National retail chains such as Reliance Fresh have a single-source model where they source from the local APMC (agricultural produce market committee), but that does not distinguish you from the hawker. While they have deep pockets, they are still sorting out various issues like customer connect, merchandising, saidArvind Singhal, chairman, Technopak, a retail advisory. He said the unique selling point of stores such as Pazhamudir is the freshness of the produce.The moment volumes become large and demand exceeds the supply from your existing suppliers, you will have to bring in more suppliers into your fold, and that makes it more complicated to manage as you need to have multiple distribution centres, then capex climbs, and it leads to multiple inventory management, he said.Singhal believes while Pazhamudir has a good model, the nature of the business is such that it is best to remain local and exhaust the potential in one city before exploring others.Senthil Natarajan agreed. What customers buy varies every 50 km. We would rather be a south Indian player who understands what the customer wants before entering new markets.A fresh approach to food retailingTamil Nadu-based Pazhamudir has a successful business model in a challenging space thats been scaled up through product sourcing and pricing, says the retail innovation studyArundhati RamanathanTweetFirst Published:Fri, Apr 12 2013. 01 19 AM IST

Kovai Pazhamudir Nilayam MD Senthil Natarajan. Photo: SaiSen/MintChennai:Senthil Natarajan, 30, trained as a software engineera skill hes using to give his business an edge over competitors.The managing director of Kovai Pazhamudir Nilayam is taking the food and vegetable retail chain based in Tamil Nadu and founded by his father into the modern age. The younger Natarajan scouts the best sources overseas for exotic fruits and is also upgrading the system by using technology.By contrast, his fatherN. Natarajan, the founder of theRs.160 crore chain, once used to collect market intelligence by roaming the streets of Coimbatore with a fruit basket.The older Natarajan, the second of four brothers, dropped out of school as a nine year old to sell fruits along with his elder brother to make ends meet. He worked in a small fruit shop till the age of 14 and used his savings from this to open his first store by investingRs.300 in 1965. My father was of the view that when things we wear on our feet are sold in shops, things we eat should be dealt better, said his son, who espouses this as his philosophy for the business.The key to Pazhamudirs success is old-fashioned common sensegive customers fresh produce at an affordable price. What has helped is that the Natarajans introduced several firsts that are now emulated by at least 80 other retailers in the region. These measures were aimed at making the business customer-friendly and less prone to price gouging. Pazhamudir was the first to introduce fixed prices for fruit, allowing customers to choose those they wanted to buy. The company also introduced the system of selling fruit by weight instead of by the dozen.Growth was slow in the first two decades, as Natarajan only had four stores by 1985. But there was a reason for that.We were focused on ensuring each store was profitable on its own. This is something we ensure even today, said Senthil. By the time the enterprise spread to Chennai in 2001, Natarajan was also selling vegetables.Vegetables are less profitable, with a mark-up of up to 20%, compared with 30% for fruit. However, vegetables doubled footfalls to an average of 2,500 in a day. Growth was still slowone outlet was added every year as the company lacked a distributing centre with cold storage facilities and there was no central purchasing plan. The real growth came after 2005 when the younger Natarajan joined the business, having worked withMicrosoft Corp.for a year in Hyderabad.His introduction of technology and warehousing increased the cost of operations by 2-5% because of the extra logistics, rentals and labour. But this also allowed the business to stock more exotic fruits and vegetables, thanks to cold storage facilities. Also, wastage came down to 4-5% from 8%.Expansion was accelerated. We began opening an outlet once in every three months from the earlier pace of one outlet a year, Senthil Natarajan said.The firm now has 33 outlets in nine cities in Tamil Nadu, of which 19 are in Chennaiits biggest marketand nine in Coimbatore. It plans to add another 30 in Chennai by 2015. The average investment per store isRs.50 lakh and break-even takes about three to four years, said Natarajan, who has grown his business without seeking recourse to debt.Retail chains such asReliance Fresh, the food and groceries supermarket chain ofReliance Industries Ltd, have a larger footprint with more than 30 stores in Chennai and four in Coimbatore.Natarajan said, however, Pazhamudirs average sales per store is the highest among organized chains, making it the largest regional retailer by revenue. Pazhamudir has been growing at a compounded annual growth rate of 10-15% for the last three years and expects to have closed fiscal 2013 withRs.160 crore revenue. To its credit, the retailer also has a higher net gross margin of close to 20%, compared with 11-15% for its peers, said a Booz & Co. and Retailers Association of India report on successful innovations in Indian retail presented at the Retail Leadership Summit in February. The business shows how efforts focused on the supply side can also deliver consumer and business impact, the study said.However, scaling up will come with its own set of challenges, said analysts.Food and grocery retailing is aRs.18 trillion industry but the organized segment is justRs.450 billion, saidBinaifer Jehani, director, Crisil Research. Among all other retailing, gross margins in food and vegetable are among the lowest at 10-15%. And it takes seven to eight years to break even, Jehani said.It is a complex business. National retail chains such as Reliance Fresh have a single-source model where they source from the local APMC (agricultural produce market committee), but that does not distinguish you from the hawker. While they have deep pockets, they are still sorting out various issues like customer connect, merchandising, saidArvind Singhal, chairman, Technopak, a retail advisory. He said the unique selling point of stores such as Pazhamudir is the freshness of the produce.The moment volumes become large and demand exceeds the supply from your existing suppliers, you will have to bring in more suppliers into your fold, and that makes it more complicated to manage as you need to have multiple distribution centres, then capex climbs, and it leads to multiple inventory management, he said.Singhal believes while Pazhamudir has a good model, the nature of the business is such that it is best to remain local and exhaust the potential in one city before exploring others.Senthil Natarajan agreed. What customers buy varies every 50 km. We would rather be a south Indian player who understands what the customer wants before entering new markets.