MALL MANAGEMENT

Advantages and Disadvantages of kirana and supermarket From

customers and owners point of view

Presented By:Somit

Presented To:Mr. Shankar SahayFaculty of Retail

FDDI

OBJECTIVE

To study :

Advantages and disadvantages of Kirana Store

and Super Market from customer point of view.

Advantages and disadvantages of Kirana Store

and Super Market from owner’s point of view.

Recommendations .

Kirana Stores

Businesses that are owned and

operated in a single location

It is an independent mom and pop

kind of unorganized retail store.

It provides the merchandise of day

to day use.

Advantages of kirana Stores From customer point of view

• Need no special planning to visit • Does not require to drive long distance

Time and energy saving

• Next to door • Can be approached any time when required Convenience

• Free home delivery • Credit facilityFacilities

• Better understanding of customer preference by the kirana owner

Good relation overtime

• One can easy do price bargaining in kirana storePrice Bargaining

• unplanned product and perishable productGood for low shelf life good

Disadvantages of kirana Stores From customer point of view

•Product bought in huge quantities•products that are expensive and well considered before purchase.

Not good for planned expensive goods

•Not large variety of the products available Low range of product

•Supply chain for product is long therefore customer has to pay high price High price

• special discounts and offers as available in supermarket is not available

Less offer and discounts

• Small capital is required to start kirana storeSmall Start-up capital

is required

•Operational cost, maintenance cost•and rental cost is low because of low in size

Low cost

• Learn the buying pattern of regular customer .• Helps in maintain the merchandise of customer

choice

Better understanding of customer preference

• Require less staff• Account keeping other official matter is also not

complexLess maintenance

• Can regulate the merchandise as per demand and season

Flexible merchandising policy

Advantage of Kirana store from owner’s point of view

Disadvantage of Kirana store from owner’s point of view

• Less credit period • Not regular visit by company representative

No special facilities by the manufacturer

• No special or customized product made especially for a particular kirana store

No customized product

• Merchandise assortment Is low due to low capital

Less merchandise assortment

• High end customer prefer to purchase from supermarket

Low high end customer

• Since capital is low and operation are also low therefore profit is also lowLow profit

• Not backed by brand icon and identity Lack of brand image

Supermarket

A supermarket is a self-service store offering a wide variety of food and household merchandise, organized into departments.

It is larger in size and has a wider selection than a traditional grocery store and it is smaller than a hypermarket or superstore.

The stores often are part of a corporate chain

Supermarkets usually offer products at low prices by reducing their economic margins

Advantages of Supermarket From customer point of view

• Low price as compared to kirana storeComparative less price

• Always there are some offers and discounts Special offers and discounts

•Nice shopping experience• After sales service•Centralized buying facilities

•Customer can buy large variety of product or different range.Large Varity and

options

•Best for planned expensive and high value personal productExclusivity

Disadvantages of Supermarket From customer point of view

Need special planning for visiting

Queues at checkout point

Fixed price no bargaining

Location problem

lack of inter personal relationship with customer

Advantage of Supermarket from owner’s point of view

High customer foot falls

Brand image of the store

Extended credit facility

Special discount and offers from manufacturer

Division of losses

Purchase directly from manufacturer

Profit margin is high

Disadvantage of Supermarket from owner point of view

• huge capital investment is required to start a supermarket and security deposit is also very high.

High start - up capital

• As these are in down town area they have to pay high rental, parking cost and maintenance cost

High rental and other indirect

expenses

• Supermarket are affected by shrinkage like high shoplifting mostly by their own employees .

High shoplifting

•Complex and high financial and other maintenance is required data of each and every activity is to be maintained Complexities

Suggestions

Kirana store should not worry about supermarket . They should try to

build their own U.S.P. They should work on in-store atmosphere and if

they get any chance to associate with brand icon they should go for it.

Future of supermarket is very bright but they need just to work on

getting closer to customer and reducing their costs.

At the end of the day, both kirana and supermarkets are here to stay.

And given the unique demands of the Indian market and its 1 billion

plus customers, both of them can co-exist peacefully by capitalizing on

their own unique strengths.

Thank you