MORE
THE ADITYA BIRLA RETAIL LIMITED
PRESENTED BY:-
Uttam Kr. Patra (PG09112)
Ujjal Jana (PG09111)
Pallav Kumar (PG0971)
Retail trend in India
• India’s largest industry.
• It accounts for 10% of the India’s GDP
and around 8% of the employment.
• India's fastest growing sector with 5%
compounded annual rate.
• Ranked 2nd in a Global Retail
Development Index of 30 developing
countries
• Rated 5th most attractive emerging
retail market
• Expected growth US$ 175-200 Billion
by 2016, of which organized retailing
makes up 3 percent or US$ 6.4 billion
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 India’s Socio - Economic Structure
INDIA
TO DAY
• One of fastest growing
world economies
• Reasonably proactive
• Opening up of sectors
YESTER DAY for investment
• Promising consumer
• Slow rate of growth markets
• Bureaucratic • Significant investment
• Protected and slow in infrastructure
creation for industry
• Small consumer
markets
• Underdeveloped
infrastructure
Most of the giant corporate companies are
entering this field like
1. Tata – Westside 7. ITC – Lifestyle
2. Birla- more 8. Shoppers stop
3. RPG – Food world, 9. HPCL
Spencer’s, Giant, 10. RPL
Music world, Health & 11. Globus chain
Glow
12. IOC
4. Pantaloons – Big
13. BPCL
bazaar, Food bazaar,
Gold bazaar
5. Sahara – Sahara mall
GROWTH IN INDIAN FOOD MARKET
INEFFICIENT SUPPLY CHAIN IN INDIA
Classification
Classification By
By Owner
Owner ship
ship
Store Type Example
Independent
Independentretailers
retailers
(80
(80––85%)
85%) All
Allconvenient
convenientstores
stores(kirana
(kiranashops)
shops)
Chain
Chainretailer
retailer Pantaloons,
Pantaloons,Spencer’s
Spencer’sShoppers
Shoppersstop
stop
Franchising
Franchising Mc
McDonald’s,
Donald’s,Domino’s,
Domino’s,Petroleum
Petroleumbusiness
business
Leased
Leaseddepartment
department Big
Bigshoppy
shoppyatatBig
Bigbazaar,
bazaar,Music
Musicworld
worldatatCross
Crossword
word
Vertical
Verticalmarketing
marketing Manufacturing,
Manufacturing,wholesaling
wholesaling&&Retailing
Retailingwill
willbe
be
units
units done by the same company E.g.: Reliance Petroleum
done by the same company E.g.: Reliance Petroleum
Consumer
Consumer Amul,
Amul,Mother
Motherdiary,
diary,Anand
AnandBazaar,
Bazaar,Supply
SupplyCo.
[Link]
Kerala
Cooperatives
Cooperatives
hh
Aditya Birla Retail Limited is the
retail arm of Aditya Birla Group, a
USD 28 billion Corporation .
Aditya Birla Retail Limited
launched their first supermarket
“more” in Pune in May 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
Competitive Priorities-The edge
more. promises a world-class pleasurable shopping experience to Indian consumers in their very
own 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 of
India, 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. value
more. 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.
This is a Grid store layout
Baby foods, Energy drinks, health Ready to eat (RTE), Biscuits etc.
drinks
Cold
Cold drinks
PERSONAL
drinks
Foods
Tea,
And CARE
Instance juice PERSONAL
Spices CARE
And others
Vegetables
Fruits
HOME AND PERSONAL CARE
and customer
Cash counter
rice
and
Atta
service
ce
Entran
• GEOGRAPHIC- urban, metropolitan cities
• DEMOGRAPHIC-
Family Size-family life cycle
• Targeting:
Income- middle and upper middle Middle class and upper
• PSYCHOGRAPHIC-
Socioeconomic Class- A2,B2 middle class.
• BEHAVIORAL- • Positioning:
Occasions-regular
Benefits-quality, economy, service “more for you”
User status-regular
Usage rate-medium
Loyalty status-medium & strong
Attitude-positive
VALUE PROPOSITION
SPECIAL DESK
FOR BILLING
INSTANT HOME
DISCOUNT DELIVERY
EXCLUSIVE
PARKING
PARKING
SHOPPING
REFUNDED
REFUNDED
DAYS
VALUE
VALUE
PROPOSITION
PROPOSITION
REGULAR
REGULAR ONLINE
ONLINE
UPDATE
UPDATE PURCHASING
PURCHASING
SPECIAL
SPECIAL
INVITES IN
INVITES IN EXCHANGE
EXCHANGE
HAPPEING
HAPPEING PERIOD
PERIOD
EVENTS
EVENTS
Marketing mix
1st P: PRODUCT
• Product- refers to the merchandise i.e. the
range of in house and branded product.
• Supplementary services -include a component
of fashion, life style and Ambient shopping as
an addition to the core product.
• Today, customers buy experiences and not
brands or products.
Range of products…
SUPERMARKET HYPERMARKET
• Bakery *
• Beauty Concepts * Apparels - Men/ Women
• Beverages Audio & Video (A & V)
• Basic Apparels Bakery
• Cutlery & Cookware Beverages
• Fruits & Vegetables Books and Audio & Video
• Frozen & Dairy Products
Computer & Accessories
• FMCG Products
Do it yourself
• Grocery
• Home Care Products
Auto Accessories
• Home Needs & Home Upkeep Electronics
• Home Decor Products FMCG Products
• Mobile Store * Footwear
• Personal Care & Cosmetics Frozen & Dairy Products
• Processed Food Fruits & Vegetables
• Pharmacy * Furniture
• Ready to Cook/Prepared Food General Merchandise
• Small White Appliances *
Home Care Products
• Staples
Home Decor Products
• Stationery
• Women's Accessories
Home Needs & Ho
2nd P: PRICING
• Cost plus price and Percentage method
pricing.
• Most widely used technique to price
merchandise
Low prized private labels
Discount on bulk buying
Private Labels
• To earn high profit margins on Private Labels
brand
• Give the opportunities to stand out from the
crowd
• To control on the quality of the product
• To offer unique valuable product to customer
STOCKING OWN BRAND
ADVANTAGES DISADVANTAGES
• High margins •'Just Another Brand'
•Underestimate competitors.
• Freedom in pricing strategies •customer giving preference to
• Control on quality established brands.
•Private label cannot be successful without
• Control on scrap and wastage good effective strategies
• Helps in market expansion •costs is very high because the production is
low
• Adding value to the customer •High advertising to promote its brand
in giving low price • Potential risk –Failure of product.
• Very few players are into own
manufacturing
3rd P : PLACE
• Organized Retailing Business is driven by one
crucial factor:
• Location
• Approachable
• Parking
Located in small commercial complexes close
to 3-4 residential areas
Observation: Close to cross roads
4th P: PROMOTION
• To survive in the tough competition all retail
outlets use different strategies to attract
customers and to retain them
– Print medium.
– Loyalty programs
– In-store Visual merchandising
• Main idea – make bulk purchase
Loyalty Program
Benefits 7 star 5 star 3 star 1 star
Gift Voucher worth Rs.
Discounts on all
10% 7.5% 5% 200/- on new
subsequent Purchases
enrolment
Upgrade Enrolment Upgrade Kit Upgrade Kit Upgrade Kit Welcome Kit
Add-on Card to Family
2 2 1 1
Members
End of Season Sale
Yes Yes Yes Yes
Preview
Green Channel Yes Yes Yes Yes
Yes - around the year
Green Drop Yes - around the year except End of Season No No
Sale
Green Exchange 90 days 60 days 60 days 60 days
Green Service Desk Yes Yes Yes Yes
Green offers &
Yes Yes Yes Yes
Promotions
5th 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 mix
which adds tangibility to the service of
creating an experience
6th P: PROCESSES
• Retail-friendly supply network, connects its locations online all
over India.
• Enables immediate replenishment of stocks at any given
outlet.
• ERP package.
– ERP package handles
– Merchandise management
– Warehouse management
– Automated replenishment
– Sales management
7th P : PHYSICAL
EVIDENCE
• Managing Appearance of the
building & Location
• Maintaining Temperature , Music, Lighting and
Fragrance inside the store
• Availability of services like, trolley, Parking
space etc
• Stylish Stocking of Merchandise
• Mirror finish style flooring
STRATEGIES
• Maintaining customer
relationship.
• Retaining customers by Loyalty
Programs.
• Giving ambient environment at
stores.
• Working on Market Research
Methodology.
• Maintaining stored products.
• Rigorous advertising and
Promotion activities.
• Attract shoppers & keep them in
stores.
• Women’s need more space.
• Honor the transition zone.
FINDINGS
Food and Beverage Private
label are mostly known
Preferred by Middle Income
Group
Private Label attract because of
low Price
Provide High Margin
Big Bazar Private label offering
are Better
Recommendation
More Retail store after its fourth year of operation not yet is
profitable 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.
