retail introduction ppt

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    FOOD AND GROCERY RETAILING

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    Key Challenges in Food Retailing

    DEMAND SIDE:

    Penchant for fresh/home-made and value

    consciousness

    Diversity of tastes and preferences

    Willingness to travel

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    SUPPLY SIDE:

    Sourcing base and efficiency

    Real estate availability and cost Manpower availability

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    Emerging trends in food retailing

    Big becoming bigger

    Rise of organic foods and health and wellness

    segment

    Increasing focus on private labels

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    Scope for innovation in food retail

    Innovation on Retail format - Players can innovateon formats in different ways :

    by targeting specific customer segments and

    serving their needs better e.g. working women,single office goers, etc

    by changing the product mix e.g. entirely privatelabel stores, exclusively fresh produce stores

    by offering new forms of convenience and widerrange to the customer e.g. teleretail and internetretail

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    Technological Innovations - Employing cutting edgetechnology in retail could prove to be the source of

    competitive advantage for retailers. Self-scan checkouts have the potential of both reducing

    check-out time manpower cost for the retailer

    Using RFID tags can help track and reduce in-storeinventory management costs and give retailers better

    insights into customer in-store movement patterns Web-enabled POS systems, e-SCM systems, e-Procurement

    systems and warehouse management systems will enablefood retailers in integrating the entire agri value chainleading to efficient procurement and supply chain

    management. Use of cutting edge analytics can bring insights into

    customer buying behaviour with implications on storelayout, pricing and promotions.

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    There are various factors paving the way to revolutionizing food retailing in

    India. Among them few are:

    Changing life styles and tastes

    Growing need for convenience

    Increasing disposable income

    Increasing numbers of working women Change in consumption patterns

    Higher aspirations among youth

    Impact of western lifestyle

    Plastic Revolution Increased use of credit cards anddebit cards

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    UP-AND-COMING FOOD RETAIL FORMATS:

    A. Neighbourhood Stores B. Supermarkets

    C. Hypermarkets

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    OPPORTUNITY IN FOOD & GROCERY

    Consumers : Urban Middle Class continues to grow by 20-25million annually, the population is predominantly young, betterexposed to modern lifestyles, and harbours a preference forpackaged food and beverages.

    This growing Indian Middle Class, especially the employedyouth in the ITES, BPO and other Service sectors, have higher

    propensity to consume, which is further fuelled by easyavailability of credit due to popularization of plastic cards.

    Retailers : More than 3,500 Food outlets and restaurantsoperational across tier-I & tier-II cities and Retail space of over5 million sq.ft have come up for F&G supermarkets, departmentstores, hypermarkets and food catering outlets.

    25 major F&G Retailers emerged in less than a year and Retailsales in the segment grew by nearly 150% over 2006!

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    OPPORTUNITY IN LOGISTICS

    Logistics, Supply Chain : Improved logistics, warehousing, state-

    of-the-art technology and availability of quality processed andpackaged food are factors that will boost the growth oforganised F&G retail in India.

    Indian corporates like ITC, Godrej, DCM Shriram have initiatedthe process of direct supply linkages with the farm, Globalmajor Metro AG was the first to introduce up-to-date know-

    how logistics and supply chain management, Corporate majorReliance is investing heavily on this front, Wal-Mart too plansback-end operations with Bharti.

    Investments to the tune of USD 23.5 Billion in the foodprocessing sector over the next three years is in the pipeline.

    This will undoubtedly create a huge demand for the foodprocessing and packaging industry But keeping in view thevast farm sector and the surmounting demand for quality foodproducts, there remains room for much more

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    OPPORTUNITY IN FOOD PROCESSING

    Nearly 80% of agricultural produce in developed

    countries gets processed and packaged. It is just about 1.3% in the case of India - a reason

    why less than 1% of the F&G retail segment isorganised.

    Even the existing organised F&G Retailers arefinding it difficult to keep their stacks full & fresh.

    This is just the right time for global firms to invest inthe food processing sector, especially so when thegovernment seems eager to boost rural/farm

    incomes. Marine Food Parks & Agricultural Special Economic

    Zones are already being worked out to ensure thatfarmers are not displaced.

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    STAR BAZAARchota budget lambi shopping

    A TATA enterprise.

    All home and foodneeds available (staplefoods, beverages,personal care products,fresh dairy products &durables, freshvegetables and fruits,and household items)

    Neat storage and freshvegetables

    All groceries arrangedsystematically

    http://saleraja.com/offer-sale/Star-Bazaar
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    Guide to whats available where?

    20-20 special

    Back to school offer

    Winter mega offers

    Various schemes and offers run on weekdaysand weekends

    Multiple billing counters to save time.

    In house bakery Non veg in cold storge

    http://saleraja.com/offer-sale/Star-Bazaar
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    STAR BAZAAR ADVANTAGE

    One of the largest live bakeries in the city offering

    delicious cakes, pastries cookies, breads

    Multiple check out counters to make your shopping easier and faster

    High quality products made available at extremely low prices in the city

    A wide range of private labelled apparels offering the best value tocustomers

    Unparalleled and irresistible offers and discounts

    Exclusive programs:

    'Star Power Rewards Program (Rs. 500 or more)

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    Reliance FreshGrowth through value creation

    http://1.bp.blogspot.com/_bnTH_4QgfBA/RfFJNDHJN_I/AAAAAAAAASU/4mFu57qxzNg/s1600-h/vegetable+sellers.gif
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    Fresh

    Cheap

    http://1.bp.blogspot.com/_bnTH_4QgfBA/RfFJNDHJN_I/AAAAAAAAASU/4mFu57qxzNg/s1600-h/vegetable+sellers.gif
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    Eg: Banjara hill outlets-sourced directly- vantimamdi, chevella, and

    nearby mandals in ranga reddy district.

    Recruiting PeopleUnderprivileged Community

    Biometric CardsFarmersLoans upto Rs. 15000

    Training the farmer

    Information centre:

    Increase productivity

    Market rates of different Corps

    Technical HelpQuality of seeds and fertilizers

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    Product Range:

    Vegetables and fruits House hold items

    Food and beveragesAll premiere

    brand + Private label

    Groceriesonly private label

    Dairy products

    Non veg food items

    Ready to eat items

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    Promotion:

    Main ideamake bulk purchase

    Discount scheme daysSaturday and Sunday

    Reliance fresh membership cardReliance One

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    Pricing:

    Low prized private labels

    Discount on bulk buying

    Private Labels:

    Maximum Space: Own Products Less Space: Nestle Maggi, MTR Masala, Pepsi, Lays Chips.

    Reasons: High Margin