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Shiny Provision Store - Retail challenge for a kiraana store
1. Shiny Provision Store: Retailing
Challenges in the Indian Context
Brought to you By
Devanand
Manoj Jones Raj
Rajiv Subramoniam
Gayathri
Priyadharshini
2. Recommend strategies to assist Anandan and strengthen the position in the retail
Industry and compete with modern Retail outlets.
INDIAN RETAILING SCENARIO
Major Retail forms include
1. Fairs
2. Shandies
3. Village Shopkeepers
4. Public Distribution System (PDS)
OBJECTIVE
3. GROWTH OF RETAILING
Kirana Shops are like “mom and pop” shops of the west.
Ranges from 25 to 400 sq.ft
Both Branded and unbranded.
MODERN RETAILING FORMS
Organized Retailing :
• Transparency in Accounting.
• Organized SCM.
Unorganized Retailing:
• Operated by a single Owner.
• Lacks Technical Standards.
• Lacks Accounting standards.
4. Kirana Shops Vs Modern Retail Outlets
(Research Study)
• 100 Respondents
• 50 From Reliance Fresh Area (Modern Retail)
• 50 From Shiny Provision Store (Kirana Store)
• Reliance Fresh Area – 3,000 to 3,500 Square Feet
• Shiny Provision Store Area – 600 to 1,000 Square Feet
• Survey Conducted on three aspects
• Retail Store Image
• Demographics
• Psychographics
5. Reasons for selecting Shiny Provision Store
• Located in the main area of BTM Layout and were situated two
kilometers apart.
• Stocked several kinds of groceries and FMCG.
• Had a mix of both branded and unbranded products.
• Appropriate for comparison.
• Door delivery service, mobile/phone delivery.
Assumptions
• Same kind of demographic and lifestyle preferences.
• Consumer loyalty
6. Categories Reliance fresh Shiny provision store
Average monthly
expenditure
High
Low
Branded
Consumption pattern
Unbranded
Percentage
expenditure on
groceries/vegetables
and fruits
High
Low
7. Income range
Average monthly
expenditure per HH
No. of
Households Monthly expenditure
<10000 4575.16 3000 INR 13,725,480
10000-20000 7722.3 2300 INR 17,761,290
20000-30000 9678.57 1100 INR 10,646,427
30000-40000 10136.47 900 INR 9,122,823
40000-50000 13748.72 700 INR 9,624,104
>50000 16500 500 INR 8,250,000
Total INR 69,130,124
Retailing sales potential in the Bangalore Suburban area
17. Activities
Income (In INR) Reliance Fresh Shiny Provision Store
< 10000 3.74 3.24
10000 – 20000 3.54 3.11
20000 – 30000 3.32 2.93
30000 – 40000 3.43 3.19
40000 – 50000 3.72 3.67
>50000 3.52 3.03
Total 3.54 3.19
Shopping With Friends
TV
Loyalty Programs
18. Interests
Income (In INR) Reliance Fresh Shiny Provision Store
< 10000 3.87 2.88
10000 – 20000 3.57 3.25
20000 – 30000 3.44 3.13
30000 – 40000 3.38 3.33
40000 – 50000 3.61 3.52
>50000 3.81 3.25
Total 3.61 3.22
Prize in Event Marketing
Restrooms
Special Offers
Events by RJs and VJs
19. Opinions
Income (In INR) Reliance Fresh Shiny Provision Store
< 10000 3.78 3.14
10000 – 20000 3.60 3.32
20000 – 30000 3.47 2.99
30000 – 40000 3.61 3.39
40000 – 50000 3.69 3.65
>50000 3.77 3.54
Total 3.65 3.54
Good Lighting and Space
Credit Card Points
In-Shop Announcements
No Billing Mistakes
Exclusive Sales Promotion Offer
Convenience
20. Hybrid Grid
Demand Generation Tasks Reliance Fresh Shiny Provision Store
Information More Moderate (Sometimes Low)
Communication More Moderate (Sometimes Low)
Price Agreements No Yes
Place Orders Yes Yes
Returning No Yes
Home Delivery Yes Yes
Discounts Periodical Any Time
21. RECOMMENDATIONS
Concentrate on 10,000-20,000 monthly income earners (Highest Sales Potential)
Give shelf space for startup products since their products will be good and process will
be less than that of Market leader. (An attempt to attract people with monthly income of
10k to 20k and below)
Advertisement focusing local areas
Improved Service
Focus on Psychographic Dimensions
More offers on sales
Loyalty Programs