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Business Plan on Apna Bazar

Company Name: APNA BAZAR Company address: 2nd mile, Sevoke Road, Merchant square, Siliguri Company phone number: xxxxxxxxx Web address: www.apnabazar.slg.com

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Because todays dreams are the foundation on which Retailers can build tomorrows goals. As the excellent words given by the Former President of INDIA, Dr. ABDUL KALAM, Dream is not that what you see in sleep. Dreams are those which do not allow you to sleep Here the difference is between the desire and burning desire within a professional. The Retail Industry expansion programmes have been launched in APNA BAZAAR on the principle as stated by Dr.ABDUL KALAM. Employment and Industry must be interlinked Goals, which they are sure to achieving what they want. We try to give entrepreneurs a chance to pursue their dreams and equip them with the necessary skill sets to become successful in their destiny. Every year we groom entrepreneurs and fill their heads with new Ideas, fill their hearts with a Passion to succeed not only in the field of Retail Management but also in life.

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Introduction
Apna Bazaar, probably the oldest and largest consumer co-operative multi-state society with a customer base of over 12 lakhs. The Rs 140-crore retail chain, that, for over 55 years remained largely middle-class, Apna Bazaar has 80 outlets in Mumbai, Thane and the neighboring Konkan region. It has recently opened its first shop outside the state in Goa. It recorded a turnover of Rs 127 crore for the year 2003-04. We are the biggest chain of supermarkets in India operating with more than 500 outlets throughout the state, selling more than 6,000 essential commodities. We are the only biggest supermarket chain that keeps in view the development of consumer association, indirectly cooperates with every activity and supports consumer rights to acquire quality products without compromising on quality. We possess one of the best and biggest warehouse facilities. The same is well equipped, scientifically tested to be of quality one. It also provides direct employment to more than 1,000 volunteers and indirect employment to more than 10,000 people. In this way it has been a good job creator and sustainer. Our outlets are well spaced to display the vast range of products at easy view angles, with ample room for people's movements. Each and every outlet covers an average plinth area which is said to be a better space for this sort of retailing format.

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Apna Bazaar provides the following facilities to consumers: Quality products at reasonable prices. Variety of items under one roof. 24 hours drugs outlets. Self-service counters
Items of high quality tested by its quality- testing laboratory. Display boards and price lists at various counters to enable the customer to make his/her choice. Home delivery, but this facility is only available for purchase from branches. Discount sales periodically on various items

The store was started keeping in mind the lower middle class section of the society. But gradually it has moved up the consumer ladder with the inclusion of the middle class as its target consumer. Now slowly it is drawing the upper class towards it. It now caters to almost all the segments of the society depending on the location. In order to attract the upper class & to combat growing competition in the retail industry it is making changes in its product-mix.

Apna Bazar opened its first branch like a traditional shop, in December 1984, in BHEL,Hyderabad with an initial investment of Rs. 10000 and just 100 products. By year 2005, the turnover of apna bazaar reached Rs. 33,000 crores and 9,842 branches across 18 states were added to cater the needs of more than 20 lac families. Total number of employees reached to 92 thousand. The advertisement expenses incurred during 1984 to 2005 of apna bazaar was less than Rs one lac(For each branch). What was the secret mantra of such phenomenal growth?
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Our strong belief and trust in Human values and Relationships. The secret of Apna bazaars success lies in its customers loyalty to its stores. Children and grand children of our first customers, patronized the bazaar and there were times when three generations walked together to buy our products. Apna Bazar never felt it was doing a business. The running of business is treated like a social responsibility where human relations, customer service, high quality and lower prices are the prime factors. The relations between employees and customers were like friends and family.

Story of Success
The Right Shopping-Ally and the Right Buzz to Hum with APNA BAZAAR. Think of a mixture of old and new, traditional and modern, past glory and present bright times, think APNA BAZAAR, its the right place and the right getaway for all your shopping needs. Its a place where you feel at home, a home away from home. A place where you can scent quality, variety, security and an aura of assured feel-good factor in terms of affordable and reasonable rates. Super Bazaars are no more a place where purchase-chore is a mechanical affair, a place where one comes, makes purchases and goes. It has become a place where one should experience the thrill of shopping, which is an art in itself, an art which
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transmits a veil of joy, exuberance, fun, merriment, pleasure and above all a feeling of pride. Step into that confines and experience a shopping expedition in itself, step into Apna Bazaar and realize a whole new world, a world of shopping paradise. Stay tuned with us, we bring you the best and the latest of shopping goodies. The word Apna Bazaar means Our Bazaar and that is what we have been ever since our inception. The trend of shopping big and buying big started in the early 1980s, a momentous time in Indian history. It was a ready-made platform for those aspiring to have a big shopping presence, big and modern, yet simple and accessible to people of all income barriers. The idea of Apna Bazaar came about more than a decade back before the Government of Andhra Pradesh initiated the Rythu Bazaars and Gruha Mitra Schemes. The year 1983, saw us entering this segment. We originated from the initiative of a non-profit and charitable trust Consumer Awareness & Research Society (Trust), better known as CARS. We originated with the philosophy of meeting the needs of lakhs of consumers from different segments of society. The First APNA BAZAAR is opened on 12 December 1984 at B.H.E.L.(HYDERABAD) CARS emphasize the need for such a kind of supermarket, which makes available products of various hues, of the best quality at the most affordable prices. It drives home the point that the products sold by it are reliable and properly certified in the most accurate of weights and measurements.

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Management Qualification

GENERAL MANAGER

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Chapter 1

Key Executive

Key Advisors

Service Provider

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Sources Of Income
Retailing is their core activity and a major part of their income come from the various retail outlets. They supply commodities like Dal, Pulses, Food grains, Cereals to Govt. Institutions, Hospitals for their Canteens. A 30 Days credit is given to them. They also earn income from the company racks that they display in their outlets. These racks contain the products of the particular company and the in turn pays Apna Bazaar for displaying these racks. For e.g.:- Maggie, Colgate, Pepsodent, Vicks, Nescafe etc. They provide space to companies e.g. MEPL (Electronic goods) in order to display and sell their goods by charging rent for space provided. They have 37 Franchise outlets, which act as a source of income for Apna Bazaar as Apna Bazaar supplies 70% of goods. Provide place to banks for opening ATM center by charging rent since almost all the outlets are owned by Apna Bazaar. MetLife India signed an agreement with Apna Bazaar Co-operative for selling life insurance policies. Based on the agreement, Apna Bazaar Co-operative shall become corporate agents for MetLife India and offer MetLife India products to its huge customer base. Henceforth Apna Bazaar will enable its customers to build financial freedom through MetLife India products based on need analysis. Apna Bazaar will receive a commission of 35% on Premium amount.

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Exports
'Apna Bazaar ' is a 55 year old co-operative organisation with US$ 37 million annual turnover through 07 departmental stores, 06 super markets & 65 retail outlets. Exporters Of: - Fresh & Frozen Sea foods, Fresh Water Fish. Apna bazaar used to export commodities like fish and grapes to Europe. In spite of good earnings on exports they have discontinued the exports from this year. The reason for the discontinuation was due to: The goods were seasonal in nature. In case of grapes the Jalgoan region in which grapes where cultivated was hit by drought, thereby by affecting the production of grapes. Besides the grapes were sprayed with certain chemicals which were banned in the European countries, thereby further affecting the exports. Besides exports is not Apna Bazaars core activity therefore the decision to discontinue exports was tak

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Chapter 4 Mission and Vision Statements

Vision Statement
Sister Concerns:
Apna bazaar has various sister concerns. These are:-

Apna Sahakari Bank:


During the last few years the Apna Sahakari Bank has made remarkable progress. In the 33 years of its existence, the bank has predicted an increase in its deposits to Rs. 274 crore. For the year ended 31st March 2000, the bank had a growth of 20.26% in its deposits. Providing efficient service towards the customer and up gradation of technology is of utmost importance to the bank. This has helped them to survive in the banking sector despite the presence of stiff competition.

Ashok Mehta Institute:


Ashok Mehta Institute is located at Vashi and Vaikhunt. This institute provides training for newcomers and existing employees of Apna Bazaar in the fields of Principles and History of Cooperatives, History and reputation of Apna Bazaar, Accounts, How to deal with new customers etc. it offers other courses like D.B.M, P.G.D.B.M., D.I.T., etc. which range from 6 months to 1 year duration. Employees and helpers attend workshops on various subjects organized by this institute.

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Others include:-

Mumbai Kamgar Sevak Sahakari Patpedi Apna Bazaar Adhikari Sahakari Patpedi

Mission statements:

We project the following highlights

Vastness and Space

We are the biggest chain of supermarkets in India operating with more than 9,842 outlets, in 18 states throughout the nation and 29 countries, selling more than 2,00,000 essential commodities and needy products.

We are the only biggest supermarket chain that keeps in view the development of consumer association, indirectly cooperates with every activity and supports consumer rights to acquire quality products without compromising on quality. We possess one of the best and biggest warehouse facilities. The same is well equipped, scientifically tested to be of quality one. It also provides direct employment to more than 10,000 volunteers and employment to more than 1, 00,000 people. In this way it has been a good job creator and sustainer.
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Our outlets are well spaced to display the vast range of products at easy view angles, with ample room for people's movements. Each and every outlet covers an average plinth area which is said to be a better space for this sort of retailing format.

Tie Ups
Oil major Hindustan Petroleum Corporation Ltd (HPCL) and Apna Bazaar Cooperative have entered into a tie-up. Their outlet is called APNA BAZAR HPCL speed mart. By joining hands, Apna Bazaar and HPCL aim to leverage their synergy for attracting consumers. HPCL would do it by offering more services at the petrol pumps; while Apna Bazaar would gain access to the large base of customers visiting the gas stations of the oil giant .It has three Outlets in Mumbai at Chembur, Dadar and Nerul.

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Chapter 3 Product or service Plan


Product:
Milk Product:
Apna Bazaar is distributing whole standard cow milk in Bombay and New Bombay. During the last 8 years it has introduced Toned Milk which has become popular. In this period it has been distributing this variety of Milk in Nasik and Aurangabad and sales of milk has been increased in both the towns. Now it is planning to expand milk distribution activity in other cities of Maharashtra. Apna Bazaar has introduced 200 gm & 500 gm packs of Stand-up-Pouches for selling Sahakar Ghee and Butter. The increased sales at its Department Stores and Branches. Sales of Ghee and Butter amounted to great extent. It has introduced Shrikhand and Paneer on experimental basis.

Agricultural products, Food grains etc.:


Masalas, sugar, dals, coconuts etc. are bought from the states of Gujarat, Andhra Pradesh, Madhya Pradesh, and Kerala etc. These products are sent to the Agricultural Produce Marketing Committee (APMC) market located at various places in Maharashtra. The sales turnover for last year for these products was Rs. 20 crore.

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Products of daily use:Products like soaps, oil, salt cosmetics etc. are purchased directly from companies who have their sales persons going to Apna Bazaar everyday and taking their requirements. Certain common products are brought in bulk, wherein the Apna Bazaar branches send the indent of their requirement to the Head Office in Naigaon. These products are collected in the Spring Mill Warehouse of Apna Bazaar. They are then sent to the department store warehouse, where they are unpacked, repacked and arranged in the respective sections for sale.

Services:
Medical Services: Pharmacy, Pathological services, diagnosis of disease by medi net, Suggesting the medicines, information about hospitals needed to the patient, Ambulance services, Health insurance, health card, Blood bank , Doctors information and services. Legal Services: Providing necessary advisors and advocates to solve the issues like Civil cases, Consumer cases, and Insurance disputes. Real Estate: Purchases, Sales, Legal opinions, Identification of lands, Land survey, Protection of land and building property etc Security services: Guidance and services.
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Placement Services: Guidance and services. Educational Advises (Primary to foreign education): guidance and services. Servant maid: Supply of Technicians, Labor, cooks, Plumbers, Electricians, Fiters, TV repairers, Computer repairers, Vehicle mechanics, Friz & Air Conditioning mechanics, Drivers, Hospitality management persons, Painters, etc Utility Services: Provision of paying electric bills, Telephone bills, Munucipal taxes, Water bills etc like e-seva. Mobile recharging: Giving connections and bill payments for the services like Tata Sky, Dish TV, Sun Network, Cable TV, and Internet etc Astrology Vaasthu Adrusta Diamond rudrakshas services and supply. Courier Services Parcel Services Packers & Movers Sales of Application forms of All jobs. Pass Port services Visa Services IT, Sales Tax, VAT, Firm Registration, R.O.C., I.O.C., S.S.I., Society/Trust registration Etc Trademark Registration, Copy Right, Patent Rights etc.. Travel Services: Bus Ticket, Train ticket, Flight ticket, Hotel booking, Taxi booking, Guide booking, Tourism packages, Pilgrimages,to anywhere across the world, etc Driving License, Driving school, Vehicle registration, Pollution certificate, Tax Payment, Vehicle insurance, etc Banking & Finance Savings & Investments Insurance Services: Life insurance, General insurance, Accidental insurance, Health insurance, Travel insurance and Postal insurance. Credit card, Health card, Discount card, and Debit card Services.
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Advertisement: Services like making the ads fit to internet, Radio, TV Channels, Magazines and their publishing and telecasting. Web designing, Website creation, etc Books, Magazines: Clipping services: Providing the necessary information to the different companies and business organizations on day, weekly and monthly bases by gathering the information from magazines, internet and Television. Fertilizers, Seeds, Pest killers, warehouse facilities for formers, and making convenience of getting the machines and tools for rent and giving them for rent, Marketing and loan facility. Second hand vehicles sales purchases, and loan facility. Arrangements of movie tickets, Audio & Video cassettes and Video games. Event management: All the facilities required for weddings, functions, Parties like catering services, Press relations etc Supplying of construction material and appointing the technical persons. Services like Caste certificate, income certificate, sales of non judicial stamps, non encumbrance certificate, etc Detective services: Power Services: Solar energy, UPS, Invertors, generators etc Supplying to consumers Electrical, Electronics, Consumer durables, Furniture, Hallmark gold & Jewelry, Costly garments, Watches, computers & Laptops etc as early as possible by showing the dummies, brochures and video cassettes. Mineral water, Bulk supply, Water purification of water tanks wells etcand supply of Bore well equipments, Soil testing, Motors etc Providing home Tuition Masters, Music teachers, Spoken English teachers, and computer basics teachers. Printing work services Fitness services like Beauticians, gym, yoga, Herbal treatment, etc
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Womens services like Foils, Dyeing, Embroidery, Tailoring, Fashion Designing, Stitching, Hand works, etc Provision for selling away waste things like waste papers, Iron, Waste Bottles, etc for better prices. Counseling for disputed families, smokers, drinkers, people in depression. Services for old age people, orphans, assaulted women. Money transfer and forex services. Gift Services: presenting bouquets and gifts to the people anywhere in the world on special days like birth days, wedding anniversaries in time on behalf of their well wishers. Aquarium, Pet Dogs, Pet animals, and plantation related services Provision for the donors to donate for the Charitable trusts and societies. Services like pest control and water leakages etc Translation services: Translation services to Indian languages and international languages. Co-operation in purchasing of new vehicles.

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Chapter 8 Marketing Plan

Place Strategy

All our outlets are located in prime locations which are home to people of varying backgrounds, income-range and purchasing power. We go by certain points before setting up of Apna Bazaar outlet in that area/locality. They are: Density of population Easy Address Access to four corners of that particular locality Parking Space Real Estate Neighborhood Outlets a study Income Group a study Double Roads their impact Frontage All of the above points are worked out to the nicety to provide the maximum benefit to the consumers.

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Promotion Strategy:
Apna Bazaar does not advertise. They feel that they are in business because of their brand name and goodwill. The word of mouth of the customer speaks for them. However, they have calendars printed every year, which are sent to their shareholders. The companies from where they buy their goods, place advertisements in the calendar. Hence, not much amount is spent on marketing.

Trade Discounts:
The purchases are made in bulk and the discounts received from the suppliers are passed on to the consumers in various forms. Usually the benefits are passed on the customers in the form of reduced Prices on almost all the commodities a discount of 5% on MRP is given. Other than that if the purchases exceeds Rs.3000/- in 3 months then the consumers are given 1% rebate i.e. they can take home an article equivalent to that amount absolutely free of cost. Other than that consumers are given Bonus points on the purchases. Besides if the purchases exceeds Rs. 500/- at a time than they are given a gift on the spot.

Consumer Loyalty:
It has a Consumer base of 12 lakhs. Over the period of 56 years Apna Bazaar has developed a strong brand image in the mind of the consumers. It enjoys strong consumer loyalty. There are just 4%-5% consumers who shift over to other retail stores.

Mode Of Payment:
In Apna Bazaar the mode of payment is Cash, Credit card, Debit card, Ticket restaurant, and Sodexho pass coupon. No individual credit is given. However Apna Bazaar also supplies commodities to govt. Institutes, Hospital etc. They supply food grains, Grocery etc. In this case they give a credit of month.

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U.S.P

Pure quality commodity Quantity is accurate Surety of no duplication All prices below MRP including medical product Guarantee on each product

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CHAPTER 7 Competetive Analysis

S.W.O.T. Analysis
Strengths: Goodwill: Apna Bazaar has built its image over the years as a value for money store, which supplies good quality goods at economical price. Number of Outlets: Apna Bazaar has 80 outlets spread all over Mumbai, Navi Mumbai, Thane and the neighborings Konkan region, Lanza (Bombay-Goa road), among other places in Maharashtra. All these areas are easily accessible as public transportation is available. Hence provides easy access to the customers. Team work: Although there is no training imparted to the employees at the outlets, there is co-ordination and understanding between them due to which the work goes on smoothly creating a win-win situation for both, the management and the employees. Modernization: Apna Bazaar makes use of modern technology to maintain correct supplier bills and giving accurate bills to customers giving details of each purchase and most importantly showing him the savings he has made while purchasing from Apna Bazaar. They also possess total details of their sales
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and the percentage of sales in each category so they know where the sales are high and where they are lagging behind.

Genuine Products: The products of Apna Bazaar are genuine as they purchase it directly from the companies. Lots of imitations of consumables such as honey, oil, etc. are available in many stores. People get cheated, as it is not easy to identify them. CRM: Apna Bazaar organizes a customer meet for their regular customers called MELAVDA at their anniversary to build stronger relations with their customers. On this day, the customers are offered purchase discounts which show that they have taken corrective steps towards customer satisfaction.
Weaknesses: Capital: Raising capital for expansion and improvement is also a constraint. Apna Bazaar is bounded by the laws of consumer co-operatives due to which they cannot raise funds from open market. There is also limit prescribed by the consumer co-operatives for number of shares issued by Apna Bazaar. This is a major drawback for Apna Bazaar.

Ageing society: Apna Bazaar started after World War 2 when there was need of essential commodities at lower prices. But, after liberalization many super markets and hypermarkets have opened up due to which there is explosion of

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choices. Moreover, people today have the money to go for convenience shopping, and hence, the purpose for opening the co-operative is defeated.

Obstacles in recruitment: Apna Bazaar does not have the budget to recruit skilled staff. The employees are not well educated and hence, they are not aware of the management practices. A qualified employee demands higher salary, which cannot be given by Apna Bazaar due to their constraints. Hence they cannot appoint a MBA a managerial job. No online retailing: Apna Bazaar does not have information about its products online. They should have their own website as it is very important in todays world. They could even learn about customer grievances by the feedback.

Price fluctuation: Price Fluctuation is a major threat to Apna Bazaar. If the product is bought at a higher price is has to be sold at that price only so as not to incur losses. For example, the price of oil fluctuates a lot. So if the price for oil is Rs. 820 for a can when it is purchased, it will be sold at Rs 820 per can even if the price falls to Rs. 800 per can. In this case the oil available from other shops will be cheaper.

Opportunities: Brand building: Apna Bazaar can take efforts to build its brand image. For this purpose, a marketing firm can he hired. This will attract more and more people to its outlets. Also, they have upgraded their outlets. This can be the base for attracting more customers as they will soon have all air conditioned stores.
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Expansion: Apna Bazaar can expand its outlets to other states. At present, they have discovered interests from Madhya Pradesh and Delhi. The initiation is on the anvil. Development in suburbs: People are now moving in the suburbs; infrastructure is developing due to which there is huge potential to attract more customers.

Retailing boom: Retailing today is not only about selling at the shop, but also about surveying the market, offering choice and experience to consumers, competitive prices and retaining consumers as well. The establishment of supermarkets and convenience stores has been a great effort to communicate the advantages of organized retailing to customers.

Threats: Malls: There are a large number of malls that offer discounts the discounts offered by them are as good as those offered by Apna Bazaar because the malls purchase in bulk and can hence afford to give heavy discounts to the customers. The customer has an explosion of choices and will prefer shopping at these big malls because of the ambience. They get the complete shopping experience at malls. Hence, malls are a major threat for Apna Bazaar.
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Competition from other stores in terms of:-: 1. Customer Centric Approach: Most other stores take feedback from the customers in form of grievances, opinions and suggestions. They can find out customer needs and ways to satisfy them. 2. Image: Image of a private retailer is more modern and advanced compared to that of Apna Bazaar. The display is also more attractive in other super markets and hypermarkets compared to Apna Bazaar. Theft / Shoplifting: The Apna Bazaar stores are large in size. Therefore, it is difficult to keep a check on the customers. Also the lack of any security gadgets makes it more tedious for the staff to notice any malpractices that might be occurring on the premises. Thus, thefts occur at least 2 3 times a month. Defaulters are charged a fine of Rs. 501.

Lack of Personal Attention: Apna Bazaar stores a large number of commodities and has around 2500 3000 customers visiting it daily. Thus it is almost impossible for the staff to give personal attention to the customers.

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Chapter 9 Operational plan

Location Criteria
I am choosing the mall named Merchant Square opposite of Anandaloke Nursing Home as it is fulfills all the criterias of a best location place for a successful marketing complex needs. The necessitive criterias are as follows:

Firstly, it is at a proper location i.e.; it is in the mid of the city. Secondly, people faces problem to shop at Spencers at City Centre

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Registration
State level: Apna Bazaar has to obtain permission from the Directorate of Marketing of the Government of that certain Sate. District level: Apna Bazaar has to obtain permission from the District Deputy Registrar (DDR). Apna Bazaar has to register with the Cooperative Commissioner (Registrar of Societies) under the Cooperative Societies Act, 1960. In the case of establishment of supermarket in Siliguri, the permission will be given by District Deputy Register (DDR).

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Elections
Elections are held every 5 years for the post of the Chairman and the Board of Directors (BOD) in the presence of the District Deputy Registrar. The shareholders elect the BOD who elects the Chairman who elects the members. The BOD and the Chairman are the policy makers of the society.

Franchise
Apna bazaar has 37 franchise stores spread across Mumbai and a few regions in the Konkan. In the franchise store the board of Apna Bazaar is put up and 70% of its goods (food grains, pulses etc.) are supplied by Apna bazaar. Besides Apna Bazaar send their employees to train the franchisee. The criteria for becoming the franchisee of Apna Bazaar are: The financial background of the individual

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The area in which he is planning to open the store i.e. the location, population, standard of living etc

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Chapter 10 Organisational plan

Job Description:

Purchase Department:
Apna Bazaar buys its products from reputed suppliers. They insist on quality products, as it is of utmost importance to them and in no case do they compromise on Quality. In case, any consignment is found to have bad quality, the whole consignment is returned back to the supplier. Apna Bazaar also acts as a launch pad for new products. They buy new products on a consignment / approval basis. This is because, if the newly launched product does not appeal to the customers, they can send the product back to the company. Thus, the company can test launch their product before it is actually launched.

Finance Department:
As profit is not the main objective of Apna Bazaar, the overall profit margin on commodities is low. The face value of Apna Bazaars share is Rs. 100. There are about 15,000 shareholders. The profit left is divided among the shareholders by way of dividend (nearly 20%). A very less amount is kept for reserve funds and investment. There are less or nearly no sources of funds. Therefore, they cannot raise capital as private companies. Thus they cannot earn interest, and hence cannot invest more. Thus, there is a viscous circle of non-availability of funds where due to no investment; no further generation of funds is possible. The Mumbai District Central Cooperative Bank is the apex bank providing finance to Apna Bazaar along with Bank of Maharashtra. If they want to open a new branch, they take land on rent / lease. They cannot afford to buy land or building, but have to required manpower and management expertise to set up a new branch.
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Auditing is done on a yearly basis by internal auditors and by the Auditors coming from the Department of Cooperatives of the Government of Maharashtra.

Marketing Deaprtment:
Apna Bazaar does not advertise. They feel that they are in business because of their brand name and goodwill. The word of mouth of the customer speaks for them. However, they have calendars printed every year, which are sent to their shareholders. The companies from where they buy their goods, place advertisements in the calendar. Hence, not much amount is spent on marketing.

Sales:
Apna bazaar has a daily turnover of about Rs. 35 lakhs. Sales are done on a First In First Out basis (FIFO). Thus, the purchasing policy of Apna Bazaar is to buy goods in bulk quantity. Due to this, they get large discounts from their suppliers. This enables them to keep a low profit margin and thus all the commodities are sold at less than MRP. This is the unique selling preposition of Apna Bazaar. The annual sales turnover of Apna Bazaar is of Rs. 130 crore. The sales of Apna Bazaar are mainly on cash basis. The customer will get a bill even for a product that is extremely low priced. 99% sales are on cash basis. They have recently introduced credit card systems for the benefit of customers, which account for the remaining 1% of the sales. In the case of medicines, there is an overall discount of 8% to the customer. Life saving drugs (insulin for diabetes) are also provided free of cost to senior citizens.

Personnel/Human Resource:
Apna Bazaar employs a total of about 1200 employees all over Maharashtra. The Officers agree they pay low wages to their employees but that is because Apna Bazaar is a non profit making organisation. The wages paid are not below the minimum amount as specified in the Minimum Wages Act of the Government of Maharashtra. Promotion is done on the basis of merit. Transfers and promotions are done yearly or bi yearly.

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Apna Bazaar gives periodical training for newcomers and existing employees in the fields of Principles and History of Cooperatives, History and reputation of Apna Bazaar, Accounts, How to deal with new customers etc. The Ashok Mehta Institute at Vashi gives the required training to the employees. Apna Bazaar expects its employees to be faithful to the organisation. If any employee is caught doing an illegal activity on the premises, he is removed. Thus various schemes are offered to the employees. Employee State Insurance, Public Provident Fund, Gratuity for Employee Bonus is some of the schemes offered.

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Chapter 12 Growth Plan

More Outlets We aim to reach out to each and every mandal,taluqa,District,mejar Grama Panchayaths in our Country irrespective of size and any other parameters. The same is done up to pass on the benefits to almost all the consumers in the Country in a most sincere and befitting fashion. These outlets will be opened in 4 different formats small, midsize, large size and franchise operations. Going Global We aim to go global and the same has been taken considering the enormous leverage and power of NRIs all over the world.( We are already opened 29 oversees franchise branches all over the world). We plan to offer them a feast of service-oriented and organized retailing which enables them to savour the traditional Indian goods and items at cost-effective rates at a quality which is worthy and more than useful. We are proud to announce that we have attracted the attention of ETA (European Telugu Association), ATA, TANA which has assured us its support in setting up APNA BAZAAR outlets in their places. Distribution (F2O - Farmer to Outlet Policy) We want to get rid of all middle men involved in order to gain the crucial margin advantage. Towards this end, we are going to
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reach out to the farmers creating an exclusive supply chain that will stretch right from the farmer to our stores. The main reason behind the same is to set up a single and biggest distribution outlet in the nation catering to the need of the retailing community as well. Brand Image We believe in the corporate philosophy policy, that is, an inclination towards taking our brand name closer to the people and make the same a household name. The same is being planned to be achieved through educating/enlightening what we are all about.

DWCRA - Apna Bazaar Two revolutionary concepts, one Apna Bazaar and another DWCRA join hands together and make an irresistible and people friendly combination. Coming on one platform, we offer a new concept which promises to change the way people buy products. We aim to take the concept to the peoples door step and make it a success. DWCRA is an organization which is associated with the enlistment of the rural women and strives for their betterment, progress and prosperity. This it done by encouraging them to produce and manufacture products and help in selling them, thus allowing them to earn their living. It enables them to be self-sufficient and instills in them to stand on their own feet.

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To meet the exacting standards of cost-effectiveness and efficient service to consumers, we, Apna Bazaar and DWCRA come together to create DWCRA Apna Bazaar Super Market, a unique and interesting convergence that seeks to change the way people of Andhra Pradesh look at and buy products and then sample their utility value. The following are the goals of this unique concept:

We aim to provide either in a direct and indirect manner employment opportunity to lakhs of rural women and help them to earn their living. We sell quality products at affordable prices to all the rural and urban consumers through our network of super markets. We sell the products prepared and manufactured by the DWCRA women at all the State, National and International outlets in the name of Apna Bazaar. We seek to help the consumers realise their rights and make them aware of the consumer production courts. We aim to, through DWCRA women associations, make the consumers in the rural areas to be aware of identification of the defects in the products, malpractices followed in measurements, duplicity of products and many more such devious methods through the consumer rights protection act. The participation of women in the consumer revolution results in the development of the state.

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We aim to start our super markets at more than 1,100 mandals throughout the state and also with the cooperation of Telugu Associations, set up Apna Bazaar Super Markets in USA, England, Singapore, Switzerland, South Africa and Mauritius. Oars will be one of a kind and is sure to change the way shopping is done and enjoyed. We remain your steadfast ally in all things, shopping and beyond. We remain your constant partner on the road to good health, wealth and prosperity now and ahead.

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Financial Analysis
In the financial year 2008-09 Apna Bazaar dept. stores, supermarkets and other outlets total retail sales was Rs. 99 Crores and 52 lacs .It registered an increase of Rs. 1 crore and 56 lacs as compared to previous year.

Total Sales: In the financial year 2009-10 the organizations total sales amounted to Rs. 127 crore and 36 lacs. There has been a fall of Rs. 5 crore in the total sales compared to the previous years. This was due to loss making outlets were closed down. Expenditure: Out of the total expenditure incurred by Apna Bazaar Payment to staff constitutes to more than 40-45% in the financial year 2004-05, 2005-06, 2006-07. Also Interest on deposits and borrowings were around 20-25%. Apna Bazaar borrowed money in order to set it off against the losses. These lead to increasing interest burden and almost resulting into debt trap. Budgeted & Actual: The budgeted sales of Apna Bazaar for the year 06-07 were Rs, 14050(in lacs) where as the actual for the year 06-07 were Rs. 12736(in lacs). Also the Actual gross profits Rs.1215 (lacs) were less than the budgeted gross profit Rs.995 (lacs). The total budgeted expenses for the year 03-04 were Rs.1450 lacs were as the actual expenses were Rs 1331 (lacs). There is a favourable variance between budgeted expenses and the actual expenditure. Also the Budgeted net profit was expected to be Rs. 15 (lacs) but had to face a loss of Rs. 120(lacs). For the future Apna Bazaar has planned to make a net profit of 15 lacs for the year 2005-06.
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Inventory: Sources The F.M.C.G. products are directly from the company whereas food grains are purchased from a market at Thane, Vegetables & fruits are purchased from RadhaKrishna Foodland, Dry fruits are purchased from market in Vashi. Valuation of stock The physical method used for valuation of stock. The stock is valued on FIFO basis i.e. first in first out basis. Inventory turnover 1. 2. 3. 4. 5. Fruits, vegetables, milk (Perishables) are ordered daily. Food grains, Sugar on alternate days. FMCG products, biscuits, tea are ordered once a week. Oil 2-3 times a week. Utensils in 1 or 2 months.

Unsold stock The stock turnover for Items like cakes, vegetables, Fruits, milk etc is on Daily basis. Commodities like food grains, sugar, tea etc dont remain unsold. If the vegetables remain unsold on the day of purchase then they are changed on the next day itself as the shelf life is very short, of not more than 24 hrs. In case of items like food grains remaining unsold they are discarded only when they deteriorate. FMCG products if
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remained unsold are returned to the company after 6-8 months and the amount is adjusted against the purchase amount. In case of clothes the inventory is changed after 2-3 months. Shortage of inventory APNA BAZAAR is never short of inventory of branded products. But in case of unbranded products like Masalas, pickles etc if the inventory is short then nothing can be done on the spot. Stock Taking:
Stock taking is done quarterly, half yearly, three quarterly and yearly. During the stocktaking, they find out, which product is moving (selling fast) and which is not. The FSN (Fast moving, slow moving, non-moving) Analysis is done periodically to know the excess or shortage of a particular product. If the product is fast moving or slow moving, it is kept in the store but if it is non-moving, it is not kept.

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Future Plans
Apna Bazaar plans to open outlets in the new housing colonies coming up in the interior suburbs like Kandivili and Thane. Increasing the distribution reach is a strategy to counter competition the co-operative plans to increase its outlets from 80 at present to about 100 by next year. This would comprise department stores, super markets, franchisee outlets and medical stores, both in Maharashtra as well as rest of the country. Apart from that, it has money transfer facility under an arrangement with Western Union money transfer. On the tie-up with HPCL for having Apna Bazaar outlets at the petrol pumps, so far three HPCL pumps have Apna Bazaar outlets and the results are still being analyzed. Apna Bazaar Co-operative has embarked on a restructuring exercise and has appointed Darashaw and Company as strategic consultants. The restructuring involves exiting certain business while adding more services, to be provided under its umbrella. The restructuring plan involves exiting out of businesses like export of fish and grapes, milk processing, manufacturing bakery products like biscuits and also pickles papads and spices. Online booking for provisions through the Net and a centralized system to control inventory are also on the anvil. To begin with the co-operative plans to have a dedicated call center for customers to phone in their requirements, which would then be delivered from the nearest Apna Bazaar outlet. An online presence, on the lines of Sangam Direct-the online initiative of HLL-is under consideration.
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To ensure minimum inventory and maximum rotation, the cooperative is planning to centralize its supply chain management. It is talking to FMCG majors like Tata, Nestle, HLL and P&G to ensure rotation without building up much inventory. While the super markets would be serviced directly by the companies, the requirements of franchisee outlets would be met by Apna Bazaar to ensure better co-ordination. Apna Bazaar operates the Akshay Labh Yojana scheme wherein the customers can deposit Rs. 10,000 at any point of time in the year and get items worth Rs. 100 per month free. They also have term deposit schemes. Apna Bazaar has also entered into an eCRM tie-up with Venture Infotek, the e-infrastructure solutions provider, whereby Venture Infotek provides the integrated end-to-end solutions, with the shared infrastructure and payment-as-you-use payment mechanism, without investment in infrastructure. The first thing on Apna Bazaars plans is to work on all 365 days like other big players. Upgrading the skills of their manpower and create vehicle parking facility are also in their agenda. They plan to have a tie-up with Citibank on co-branding. Regarding credit card, they are on the verge of signing a MoU with SBI. As visual merchandising, a new way for presenting the products will be introduced. The National Consumers Co-Operative Federation has approached Apna Bazaar and enquired about the possibility of running department stores under the brand name Apna Bazaar in Delhi and Madhya Pradesh. Apna Bazaar is planning to open another outlet in Goa as they have got a good response from the supermarket.
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Recommendations
Government interference has had a major effect on the democratic setup of Apna Bazaar. Therefore, lesser dependence on government should be opted for. Government should help stores like Apna Bazaar with credit at cheaper interest rates. Apna Bazaar should improve their capital assets by enrolling more members and also introduce more product varieties. In the coming years, the economy will be dominated by the retailing sector. Times are changing, organizations are changing. Changing according to times is inevitable. Apna Bazaar has to change its traditional viewpoints. It should adopt new techniques and accept change wholeheartedly. Bringing qualitative changes in their skill and especially mindset will help it to survive competition. Apna Bazaar can open one outlet offering all the products it sells in the 80 outlets so that people get all products offered by Apna Bazaar under one roof. Though Apna Bazaar offers self-service, the staff needs to be more customer friendly, and interact with the customers. There is also a need for professionalism.

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Conclusion
Consumer Cooperatives constitute the institutional framework in the distributive trade for providing essential consumer articles to the vulnerable section of society at reasonable prices. As a National policy, consumer cooperatives have been developed as self-reliant grass-root democratic institutions owned, managed and controlled by their members for the protection of interests of consumers. The presence of consumer cooperatives creates an impact in the market especially to protect the interests of consumers by way of keeping intermediaries away from the distribution channel. It plays a vital role from the distribution of consumer goods, particularly essential consumer goods at fair prices to rural areas, including remote, inaccessible and hilly terrains. Consumer Cooperatives have received a good deal of support from the Govt. as they help check malpractices in times of crises arising from shortages by making goods available and thereby checking undue rise in their prices. These apart, Consumer cooperatives not only provides potential employment opportunities to the young, educate and literate persons but also adding income to the Center and States/UTs in the form of Income Tax, Sales Tax, other prevailing local Taxes, etc. Total Cost: ( assumpted figures) Franchise 40 lakh Land 35 lakh Interior 10 lkh
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Others
Total

10 lakh
95 lakh

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