D'Mart Supply Chain Management

1. Topic :- D’mart Supply Chain Management
Subject :- Strategic Sourcing in SCM

2. •The Indian retail industry has experienced high growth over the last decade with a
noticeable shift towards organized retailing formats. The industry is moving
towards a modern concept of retailing.
• The Indian retail market, currently estimated at USD 490 billion, is projected to
grow at a CAGR of 6%to reach USD 865 billion by 2023(Source:-IBEF).
•The opportunities in food and grocery retail in India are immense, given that it
constitutes about 69%of India’s total retail market.
•Increasing consumption, comfortable shopping experience, new categories, wide
variety of brands under a single roof and attractive prices.
•A whopping 55% of the modern trade shoppers actively seek promotional
deals, 35%of them make bulk purchases, of which 30%are male customers.
• Mass media has a big role in bringing the rural market to the centre-stage, which
is setting the actual consumer aspiration. The key element to be focused on is the
supply chain and infrastructure in the Tier-II cities and huge market to tap.
The Indian Retail Sector

3. Introduction
Founded on May 2002 by Radhakishan
Damani, under Avenue supermarts ltd.
175 Stores across India.
51.55% revenues from food and Non Food ,
20.03% General Merchandise & Apparel ,
28.42% other products.
Best in industry CAGR (41%).Revenue per
square feet Rs.33000.
Best inventory turnover (13.08)
Product prices 5-6% lower than all
listed competitors.
The brands D Mart, D Mart Minimax, D Mart
Premia, D Homes, Dutch Harbour, etc are
brands owned by ASL

4. USP & STP of D-Mart
Unique Selling Proposition Heavy discounts and has
managed to sell cheap
Market Segment Price sensitive group
Target Market Middle income
households
Market Positioning One-stop value retail store
chain

5. COMPETITORS
Highly competitive space.
Competitors strive for cost
leadership.
Festivity based promotional
campaigns (Big Bazaar
Ganpathi, #dildar Diwali)
Affective message strategy
used for promotions by Big
Bazaar, Reliance fresh.
Informative communications
used by online competitors
and small scale retailers.

6. Source:- Economic Times data- March 2018 data
Retailer Sales
(in Cr.)
Stores
(in India)
Average
Sales / store
(in Cr.)
Reliance
Retail
32436 9146 3.54
Future Retail 18477.97 1700 10.86
D’mart 15008.89 175 85.76
Average sales turnover per store

7. D-Mart Big Bazzar
Strengths Strengths
1) EDLP(Every Day Low Price)
2) Discount Policy
3) Clear price based differentiation
4) Slow scaling up
5) People centric approach
6) Stores at prime location
1) EDLP(Every Day Low Price).
2) Affordability for middle class is provided by Big
Bazaar in India.
3) Big Bazaar offers quality, choice and
convenience.
4) Wide range of products and service offerings.
5) Strong presence in local market.
6) Attractive promotional offers given by Big Bazaar
to attract customer through discounts, sales,
exchange offers etc.
7) Good branding and advertising by also roping in
celebrity brand ambassadors also boosted Big
Bazaar's presence

8. D-Mart Big Bazzar
Weakness Weakness
1) Focus on certain places
2) Slow growth
3) No frills
3) Low brand loyalty among customers
4) No backing of a known corporate/business
house.
5) Doesn’t sell electronic equipment's, which
are currently in huge demand.eg Laptops,
Plasma TV’s, Digital cameras, Mobile
phones.
6) Standalone stores, not situated in any
commercial building/malls/hub.
1) Unable to meet store opening targets on time.
2) No different game plan according to divergent
people, their lifestyles, their tastes and budgets in
3) Limited only to value offering low price products.
A no of branded products are still missing from Big
Bazaar’s line of products. E.g. Jockey, Van heusen,

9. D-Mart Big Bazzar
Opportunities Opportunities
1) Booming retail sector
2) Limited presence in Suburbs, town
markets can be potential untapped markets
in major cities.
3) Digital Strategy
4) Technology
5) Customer-centric Approach-
Personalization of services
1. Big Bazaar can plan to expand globally by tie-ups
2. Entering into high premium segment
3. Opportunity to expand into financial services
catering to huge segment
4. Increased rural penetration can also benefit Big
Bazaar

10. D-Mart Big Bazzar
Threats Threats
1) Online retailers
2) Online Start-ups
3) Human Capital
4) Availability of land and real estate
1) Competition from other value retail chains such
as Shoprite, Reliance (Fresh and trends) and
D mart.
2) Unorganized retail also appears to be a threat to
Big Bazaar’s business. A large population still
prefers to visit local convenient stores for daily
purchases.
3) Changing Government policies
International players looking to foray India.

11. Supply Chain Management

12. Downstream Supply chain
Upstream Supply chain

13. Future Focuses
1. D’mart ready for online order
2. Self pickup at near D’mart ready stores or delivery
at home at nominal delivery cost.
3. Managing delivery boys.
4. Managing the supply chain for home delivery.
5. Opening stores at more locations.

14. Conclusion
1) D’mart focuses on profitability of its stores before opening.
2) D’mart focuses on product quality before procurement.
3) D’mart manage it’s supply chain at very lower cost compare
to the industry,
4) D’mart is having good relationship with supplier which helps
in procurement.
5) D’mart do not spend on marketing and believe in customer
satisfaction which is helping it as word of mouth marketing.

15. Bibliography
https://www.dmartindia.com/
https://economictimes.indiatimes.com/topic/D-Mart
https://economictimes.indiatimes.com/topic/Big Bazzar
https://www.scribd.com
https://www.marketing91.com