The 15 Minute Breakdown: 2024 Beauty Marketing Study
Next Gen Retail
1. Next Gen Retail Market in India
Project Guide - Prof. Mrs. Mahima Mishra
Project In charge – Prof. Suryakant Lele
Submitted By – Samar Saha and Alok Singh
Semester – 2nd , Exec.MBA
2. Indian Retail market at a glance
The contribution of retail industry to India’s GDP is more
than 13%.
The retail industry in India is of late often being hailed as
one of the sunrise sectors in the economy.
India's retail sector is on its way of modernization.
Traditional markets are making way for new formats
such as departmental stores, supermarkets and specialty
stores.
India's retail sector is estimated to touch US$ 833 billion by
2013 and US$ 1.3 trillion by 2018
3. Unorganized Retail sector
• The unorganized sector consists of
all private enterprise, having less
than ten total workers, operating
in proprietary or partnership
basis.
• Unorganized sector includes low-
cost retailing such as the local
kirana shops, owner-manned
general stores, paan/beedi shops,
convenience stores, handcart and
pavement vendors.
• They don’t even have a proper
calculation for their taxes. Hence
they are un-organized.
4. Characteristics of unorganized
retail market
The traditional formats of low-cost retailing
Small-store (kirana) the easiest ways to generate self-
employment
Generally family run business
Purchase from kirana store in credit
The convenience store for the customer.
5. Organized Retail sector
The organized sector, identified as
malls/multiplexes/supermarkets is still at a nascent stage,
and is unlikely to prove a threat to the unorganized
sector for many, many years to come.
There are a number of reasons which clearly vouch for
the fact that India will continue to be dominated by small
retailers for a long time to come. Such as - Even the
biggest of domestic players in organized retail lack the
muscle and resources to cater to significant proportion of
Indian population. It takes a lot of time and money for an
organized retailer to show decent profits in Indian
situations, and the weaker ones will continue to fall by
the wayside.
6. Research Methodology
For our survey we adopted primary data collection,
where we decided to plan a questionnaire with some
qualitative and quantitative questions.
We went store by store and also online.
We gave options in the questions wherever possible and
the other questions (qualitative), we made it too simple,
so that the kiranawalas understand better.
7. Questionnaire
All questions were having suitable options along with
additional input box “Other (please specify)” if they don’t
feel any of the option provided to be appropriate.
https://www.surveymonkey.com/s/L3QLZD2
Area of the shop?
Tenure of shop in years?
Type of customers?
Number of customers daily?
Number of employees in shop?
Effect on demand in recent times due to online and
organized retail market?
Why customers are opting for Malls/Online substitute?
Effect on demand due to location?
What schemes are you currently offering?
What are your plans, schemes, strategies to attract more
customers?
8. Analysis of Data
It shows, that majority of shops are
located near some societies, so
reach to people is limited.
Most of the shops having tenure of 5-10
yrs. So, they have good scope to try out
new opportunities to increase their
customer reach.
9. Analysis of Data (Cont.)
Daily customer count on an average
ranges from 75-200, which shows
their limitation to customer reach.
Customer are almost from every
aspect of age, type. Household
holding the max. share.
10. Analysis of Data (Cont.)
This result shows the lack of man
power in kirana shops where mostly
1-2 workers are present.
This clearly indicate the decrease in
business for Kirana shopkeepers
where their demands have been
dropped to even 50%.
11. Analysis of Data (Cont.)
This results shows mixed response
with almost every aspect holds equal
share.
Shopkeepers knows that location is
the most important factor for the
demand to decrease or increase. Now,
location is something that is mostly not
very easy to change.
12. Analysis of Data (Cont.)
Shopkeepers are very limited when it
comes to services they currently
provide such as home delivery and
goods on credit which is actually not
beneficial for their business.
Shopkeepers are willing to increase
their range of products and provide
more customer attractive deals which
would be generally difficult as per their
current infrastructure in India.
13. Conclusion from Analysis
Seeing the responses we received, below are some of
the major concerns that local shopkeepers have –
They are unable to reach mass customer base.
Not have clear idea which products are on demand and
what are out dated.
Do not have correct list of products to be available in
shop.
Are not clear how to attract more customers.
Location constraint.
They are actually helpless to stand against organized
retail chains.
14. Proposal/ Business Idea
(Merakirana.com)
We propose an online grocery bazaar with a local twist.
It lets you shop for your groceries online but through your
neighborhood kirana store.
We aspire to give a technology edge to the Kirana business
to attract this generation.
Each local Kirana Store gets to create its own shops by
listing items, prices, discounts, delivery and payment
options, etc.
(We understand that Local Kirana shops are not tech savvy and
hence we will have to help them doing that initially. Computer
infrastructure needed for this can be made available @ a very
economical cost of Rs. 3000 and monthly recurring expense of 500.)
15. Business Idea Cont.….
Delivery of items will be made by shop owners as they
are already doing so (based on range of service).
Each customer gets his/her own login which will maintain
his history of lists, choices of his shops, history of his
expenses, his location, address and other important
details.
A customer can also set and alarm, reminders and use or
amend the previous list.
This will also help them track the rates of each individual
items over the period and will help them analyze
expenses over the period.
16. Other Benefits
Location of Kirana shops on Maps, with the reviews and
rating.
It will categorize customer’s list on “Packaged and
branded” items and “Loose and unbranded items”.
For a customer, just like Super markets, everything will be
available single roof.
Offer discounts for customers to encourage usage.
It will also prevent retailers to give their goods on credit to
large extent.
17. Do we earn!!! How?
Advertisements
Our site contains a wealth of information, resources and
services that we provide free. Now also, we have to start
thinking about generating income because our costs to
manage the site will keep on increasing.
Banner programs - that is paid either on cost per click
(CPC) or per impression basis. An impression is a banner
being displayed to a user once, a click is someone
clicking the banner and visiting the site being advertised.
18. Demand and Market analysis
Kirana/Grocery is a basic need of every house hold.
Independent kirana stores control about 95 per cent of
FMCG sales in India. However, their share has been
dipping in recent years. According to a report by HUL, 20
to 25 per cent of trade in urban centres has moved to
large format retail stores. Add to this the growing
presence of online grocery retail and these stores are up
for some real competition.
710 Kirana shops in Pune are present on Sulekha.com.
Our estimate is there are more than 2000 shops.
Pune has sizable number of technology savvy population
with easy access to computers and internet.
Urban lifestyle, more time spent on road, lesser quality
time for family demands such services.
19. Location Selection
Pune
The population of Pune mentioned here is from PMC’s
website; however we anticipate it be ~90 Lacs.
We intend to start with Pune; however soon want to go to
other cities once this concept has made foot hold in Pune.
Pune Population Literacy Rate
82 lac 81%
20. Marketing Plan
Segmentation – Identify population which has access to
computer and internet and target them. Working women,
men, youths.
Place – Majorly web space, Viral tools like emails, links,
Social networking sites. Also, pamphlets can be kept @
local kirana stores.
Price – This is a free service for customers.
Promotion – Discount coupons/Codes, Loyalty points, tie
ups, etc.
21. Risk Analysis
Market risks - New concept and hence resistance from
Customers and Grocery shops, existing online grocery shops,
Super markets from cash rich corporate enterprises, new
entrants to the market, slower than expected adoption.
Operational risks - Complicated Portal, space management on
portal, up time of the portal, Performance of the portal, Poor
Customer service, staffing risks.
Financial risks - Liabilities, poor contract negotiations with
Vendors, customers and investors causing investor pull outs,
poor accounting practices.
Managerial Risk - Unclear Vision, poor planning and improper
executions
We have considered these risks while Marketing and Portal
planning.
22. What Next
Other Cities – Once this concept has gathered foot hold
in Pune, we intend to go to the other cities with the help
of local experts in that city and launch it in cities across
India.
Smart Phones and Tablets – Almost parallel to this, we
intend to launch an application which will be native to
smart phones and tablets to enable customers to use
this app on the Go. A B2C flavor .
Consulting for shops – While the data pertaining to a
particular shop will always be available to the shop;
however we understand that not all the shop owners
are tech Savvy and hence we can offer consulting them
on stocking, delivery options, etc. at a minimal price.