Strategic Management

in the retail industry in India

Mehak
Specialty Stores & Department
Stores
Department stores Specialty stores

A department store is store that

ofers wide variety and range of
products of diferent brands

A department store resembles

collection of specialty stores

Discount store is a large store

located at a prime location or inside
a mall.

Eample! "roma# $antaloons%

A specialty store is a shop that focus

on selling a particular brand or a
particular type of product

Specialty store is a small store

located in a shopping hub&malls or
busy streets

Eample! 'anish(# 'itan eye plus#

'he mobile store
About ")*MA..

$hilosophy+ ,-E .E/$ 0*1 2103

"hain of 45 stores across diferent cities in 6ndia

*fers over 7888 products over 9 diferent categories

/arge Appliances : )efrigerators# A"# -ashing Machines

Small Appliances : Microwave *wen

"omputers ! .ome $"s# /aptops

Music & D;D ! Audio & ;ideo "Ds&D;Ds

"ommunications! Mobile phones

<aming ! <aming .ardware& Software

.ome Entertainment : .ome theatre# '. ;.# D;D players

6maging ! Digital "amera# "amcorder

Strategies Adopted by ")*MA

"roma has earned itself the tag of being an innovator and a leader
in terms of ofering the latest gadgets

/aunch partners for most of new products launched in the country

*fers wide variety of products by all ma=or brands as well as

private label products

Staf is well trained to understand a customer>s re(uirements and

recommend products to ?t the need

'o enhance in!store face!to!face interaction with customers#

maintains customer to staf ratio @+5
Strategies Adopted by ")*MA

"roma has A types of stores+

"roma standalone stores! 5B888 to @8888 s( feet

"roma stores located in mall! B888 to 58888 s( feet

"roma Cip stores!smaller format stores to attract the young and

the restless generation of gadget!lovers

,-e turn around our stores in =ust 78 days D from identifying the
location# to doing up the interiors and ?nally cutting the ribbon#3 :
MD & "E*# A=it Eoshi

Easy access of products inside the store with merchandiFe

displayed according to the category
Strategies Adopted by ")*MA

"roma focuses on uni(ue customer service and high customer

satisfaction

,6n case consumers faces any issues with the products# we have a
one!year, no-questions-asked replacement policy for the
products. 'hese measures help us build consumer con?dence on
the range3 : MD & "E*# A=it Eoshi

Easy EM6 facilities with down!payment as low as )s 5

*fers great deals and discounts to the customers# specials

electronic sale on 5B
th august and @7th Eanuary every year.
"onvenience Stores &
Supermarkets
Supermarkets Convenience stores

Supermarkets are large self!service

grocery stores that ofer customers a
variety of foods and household
supplies.

'he merchandise is organiFed into an

organiFed aisle format# where each
aisle is numbered or labeled and has
only similar goods placed together.

Supermarkets are (uite larger

compared to traditional grocery stores
and are smaller than hyper!markets

Eample!D!Mart

"onvenience stores are small stores

that are open for long hours and
ofer a small variety of goods

"onvenience stores stock on goods

that a person might re(uire in an
emergency and would not like
travelling long distances for it

"onvenience stores are small stores

that are located in busy streets#
street corners# highways# etc

Eample!'wenty Gour Seven

Strategies Adopted by 'wenty Gour Seven

'he <roup aims to create an environment which promotes

innovation# participation and team!work.

'heir varied strengths# industry!leading skill sets and eceptional

workforce put them ahead of others.

'he <roup is committed to achieve high standards through a

socially and morally responsible approach aimed at making the
world a better place to live in.

A strong focus on training of their sales force# and the commitment

to impart education to their channel partners to leverage the
company>s strengths# also goes a long way in building the <roup>s
strengths from within.
Strategies Adopted by 'wenty Gour Seven

'he .) function in the <roup lays great emphasis on talent

management and competency development. 'hey have also
incorporated the latest technology to deliver products of the ?nest
(uality in the market.

Driven by innovation and speed to market# the manufacturing

facilities are e(uipped with state!of!the!art e(uipment and
incorporate best practices like 'HM# .aichi!2an# BS# IaiFen etc.

*wing to the strong processes and resilient production process# the

<roup has put in place comprehensive )esearch and Development
capabilities for its industries.
Strategies Adopted by 'wenty Gour Seven

'he company>s vision! convert most of the store

managers into franchise partners.

'he vision gives them the automatic solution to retain his

best employees and makes them one among few retailers
in 6ndia who have taken stride to reward outstanding
employees climb the net ladder in retail business

'his conversion would automatically solve J main issues+

Aspiration levels will never come down

.igh $ersonal interest

Attrition rate will be under control

*perational eLciencies improved

Supermarkets & .ypermarkets
Supermarkets Hypermarkets

<rocery stores that also provide

household items : ofers a variety of
food and household supplies

Merchandise organiFed in aisle

format with similar goods placed
together

E.+ D!Mart

/arge retail establishments :

combination of grocery stores#
departmental stores and discount
stores

"onsidered a one!stop shop having

merchandise to ful?ll all the daily
needs of a consumer

E.+ 2ig 2aFaar

Strategies Adopted by D!Mart

Sets up stores in dense residential areas

2uys most of their store space instead of renting it# and refrains
from opening stores in malls

ELciently handled the <lobal "risis without having to close down

any store

$ays vendors in @ days# making @!AM additional gross margin#

which they pass on to their customers

)esponds (uickly to vendorsN initiates promotions within a few

days

Smaller siFe Oalmost a 7

th of 2ig 2aFaarP helps them reduce write!ofs on clogged inventory

Gollows the principle of ofering 98M of the products

'ries to investigate# identify and make available new product categories for customers

*fers guaranteed discounts ranging from @M ! 58M unlike other retailers ofering limited discounts

Spends less on the interiors

Strategies Adopted by D!Mart

*fers prices 7!4M less than the competition# independent of where

they operate

Able to ofer higher discounts by avoiding credit system

Stores a good mi of national products and local products even in

towns

6s epanding and plans on being a $AQ!6ndia player unlike

competitors like Qamdhari and .eritage
Strategies Adopted by D!Mart

)evamped the store to provide more convenience to customers

6ncreased cash tilts to make billing faster

'ook initiatives such as Seva in )a=a=i Qagar Store in 2angalore

Sells community!speci?c staples and grains and food under

,Ektaa3 brand

Gaces huge competition from the Star 2aFaar# which has one of the
largest live kitchens and wide assortment of fruits and vegetables
Strategies Adopted by 2ig 2aFaar
Hypermarkets

/arge retail establishments

: combination of grocery
stores# departmental stores
and discount stores

An epansive one
stopfacility carrying a wide
range of products under
one roof# including
fullgrocerieslines
andgeneral merchandise

E.+ 2ig 2aFaar

Supercenters

$hysically large retail

establishment# usually part
of achain

'he store may sell

generaldry goods or may
also sell groceries# including
instances of pharmaceutical
centers# clothing# gas
stations# internal parking#
internal cafeteria et cetera

E.+ -alMart
.ypermarts & Supercenters

Optimum Pricing: follows everyday low pricing OED/$P#

special events promotional pricing# low interest ?nancing#
time diferential pricing strategies

Large stock of cheap & local product mix: has a variety

of in!house brands like Ioryo# Ma=ithia and "are Mate# as
well as brands like />*real# .aldiram# $epsodent et cetera

Establishment as a Brand+ ,naye 6ndia ka baFaar3

Reduce rental budget

Strategies Adopted by 2ig 2aFaar

Designed with feel of an Indian bazaar (mandi to make

every type of shopper comfortable

"onsumer habit of feeling the grain before purchase

led to selling of staples in loose condition

! shaped sections# as families come together to shop

Omore as an entertainment unlike the -estern cultureP

Set up in ke" real estate locations in ma=or cities

#usic in store is played according to region

Strategies Adopted by 2ig 2aFaar
S T ! " # T H S
! * n e s t o p s h o p
! 2 e n e ? t o f e a r l y e n t r y i n t o t h e r e t a i l
i n d u s t r y
! " h e a p g o o d s a s n o m i d d l e m a n
! D i v e r s i ? e d b u s i n e s s
! 2 e t t e r u n d e r s t a n d i n g o f c u s t o m e r s
S T ! " # T H S
! * n e s t o p s h o p
! 2 e n e ? t o f e a r l y e n t r y i n t o t h e r e t a i l
i n d u s t r y
! " h e a p g o o d s a s n o m i d d l e m a n
! D i v e r s i ? e d b u s i n e s s
! 2 e t t e r u n d e r s t a n d i n g o f c u s t o m e r s
$!%&"!SS!S
! .igh cost of operation due to large
?ed costs
! Sub standard (uality of goods
! ;ery thin margin
! .igh attrition rate of employees
$!%&"!SS!S
! .igh cost of operation due to large
?ed costs
! Sub standard (uality of goods
! ;ery thin margin
! .igh attrition rate of employees
'(('T)"ITI!S
! *rganiFed retail OJ!BMP
! )ural market
! Evolving consumer preferences
! 2usiness in smaller cities
'(('T)"ITI!S
! *rganiFed retail OJ!BMP
! )ural market
! Evolving consumer preferences
! 2usiness in smaller cities
T H ! % T S
! 1 n o r g a n i F e d r e t a i l
! / o t o f o v e r s e a s c o m p e t i t o r s c o m i n g u p
t o t a p m a r k e t p o t e n t i a l O M e t r o A < #
- a l M a r t # ' e s c o P
! M a r g i n o f b u s i n e s s r e d u c i n g a l l t h e t i m e
T H ! % T S
! 1 n o r g a n i F e d r e t a i l
! / o t o f o v e r s e a s c o m p e t i t o r s c o m i n g u p
t o t a p m a r k e t p o t e n t i a l O M e t r o A < #
- a l M a r t # ' e s c o P
! M a r g i n o f b u s i n e s s r e d u c i n g a l l t h e t i m e
2ig
2aFaar+
S$'T
2ig
2aFaar+
S$'T
2ig 2aFaar+ PEST Analysis
Technological*
5. Gast billing# more cash tills
and (uicker service as a result
of technological
advancements
@. 'echnological changes in
supply chain# store
management# point of sale and
customer relationship
management
Socio-cultural*
5. 6ncrease in nuclear families
@. $eople>s preference of local
stores ofering lowest prices
A. <radual shift in product and
service preferences
J. 6ncrease in young population
!conomical*
5. 6ndia one of the fastest
growing economies O<D$ 7.BMP
@. <rowth of retail sector from
1SR J55 billion in @855 to 1SR
98J billion by @85B
A. 6ncrease in percentage
contribution of service sector
to <D$
J. 6ncrease in investment of 6'
Oto achieve cost
minimalisationP
(olitical*
5. Speedy economic recovery
with government change
@. $roblems of getting subsidy
from *ctroi# diferent taes
A. $roblems of procuring
property# real estate
Strategies of 2ig 2aFaar as opposed to
-alMart
$ource: Strategic Management, 10E; John A. Pearce, Richard . Ro!inson Jr " Anita Mittal
Strategies Adopted by .yper"ity
)etail Gormats
Mono&sing
le brand
retail
shops
Eclusive
showrooms
franchised by
the
manufacturer
"omplete
range
available for
one brand#
certi?ed
product
(uality
Multi
brand
retail shop
Gocus on
particular
product
categories and
carry most of
the brands
available
-ider
customer
choice# lower
investment
bracket for
foreign players
"onverge
nce retail
outlets
Display most
convergence#
as well as
consumer&elec
tronic products
*ne stop
shop# many
product lines#
home brands#
etc
E!'railers
*nline
shopping
facility# least
investment#
holding cost#
etc.
Gavorable
market
conditions#
@J4
availability#
ease of access
GD6 policy & how it has shaped
retail sector

1ncertainty due
to+

A8M sourcing
from 6ndian
vendors.

<S' ! <eneral
Sales 'a
.ow have the GD6 policies afected
6ndiaS O@85@P
Sector Entry )oute GD6 limit
$holesale cash
+ carry
automatic ,--.
Single /rand
product retailing
0oreign investment
+ promotion /oard
,--.
Multi-/rand,
1ront end retail
0oreign investment +
promotion /oard
2,.
Bene3ts o1 0DI in
Indian etail
Technology
4process
trans1er
Ta5 revenue
generation
6B'T7
Increase in
consumer
choice
8uality
con1ormanc
e
Strategy
group
1ormation
<rowth drivers for retail in 6ndia
Iey Strategies of 6ndian retailers

E : commerce growth has provided a surge to e:tailers. -ith @85A

standing at A@ billion 1SR.
8.7
A@
48
58
58A
@88
*nline )etail
E ! commerce
6mpact of e!'ailers

/eader in multiple retail format

/eader in diversi?ed market strategy

Guture retail & Shoppers Stop :
market leaders
*ther strategies adopted by
competitors

http+&&www.modi.com&our!strengths.html

http+&&
retail.economictimes.indiatimes.com&news&foo
d!entertainment&food!services&twenty!four!se
ven!convenience!store!plans!franchise!strate
gy!through!hub!and!spoke!model&@97A47BA

http+&&www.tata.in&article&inside&dm0DAuQfp
t1T&'/0;rA0$kM1
T

http+&&en.wikipedia.org&wiki&"romM"JM95
)eferences
Thank you9
Atri=a <aur O55JP U Sneha <ovani O55BP U $iyush <upta O557P
Mehak Eain O554P U $anili Eain O559P U ;arun Eain O55VP