76
ACKNOWLEDGEMENT It is always acknowledged so precious a debt as that of learning. It is the only debt that is difficult to reply through gratitude. It is indeed a great opportunity for me to pen down a few lines about people to whom my acknowledgement is due. I would like to acknowledge my deep sense of gratitude tour director Dr. Raghuveer Singh for providing me adequete help and support. Last but not the least I would also like to thanks my all those friends and all those respondents who could not find a separate name but has help me directly or indirectly. Ravi Chandak PGDM (2007- 09) CIPS-Jaipur 1

Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

  • View
    3.201

  • Download
    5

Embed Size (px)

DESCRIPTION

 

Citation preview

Page 1: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

ACKNOWLEDGEMENT

It is always acknowledged so precious a debt as that of learning. It is the only

debt that is difficult to reply through gratitude. It is indeed a great

opportunity for me to pen down a few lines about people to whom my

acknowledgement is due.

I would like to acknowledge my deep sense of gratitude tour director Dr.

Raghuveer Singh for providing me adequete help and support.

Last but not the least I would also like to thanks my all those friends and all

those respondents who could not find a separate name but has help me

directly or indirectly.

Ravi Chandak

PGDM (2007- 09)

CIPS-Jaipur

1

Page 2: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Executive summary

The project titled “Assessment of most selling staples & FMCG products in mop & pop stores

close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the

category volume in ‘more’ retail outlets” is made for Aditya Birla Retail Ltd. The project came

into act with a discussion when I was doing my summer training in Aditya Birla, the discussion

was about that a lot of research work is being made on consumers, what they want, what they

prefer but after the application of these research work the company is still facing stiff problem

in right assortment mix in staples & FMCG category.

So a research work started and the objective of research was to find our proper assortment

mix for ‘more’ in different areas, it was descriptive in nature as variables were known to us and

then questionnaire was appropriately designed and sample size taken was 5 shopkeepers from

each catchment area and 2 stores of each catchment area was to be taken, summing up to a

total of 60 shops. As the research started the researcher faced many problems , the

shopkeepers were very resistive .

Finally the findings so derived after the research was that there are many non branded

products which covers a major share in all 3 catchments for

e.g. Oswal soap , while there are few products which are common in all catchments so their

MBQ should be kept high. A detailed analysis of the research is discussed below.

2

Page 3: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Contents

Chapter no.

Particulars Page No.

1. Introduction

2. Conceptual Framework

3. Company Profile

4. Research Methodology

5. Data Findings and Analysis

7. Recommendations

8. Limitations

9. Conclusion

Annexure 1 Questionnaire

Bibliography

3

Page 4: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Introduction

As we enter 2008 retailers across the country speak about their vision of change for the years

ahead. It is evident that customer retention is top of mind for every retailer, regardless of format

or size.

For all the talk of growth rate of Super markets, the l market remains highly fragmented. For an

idea of just how fragmented the market is, look at the top two players: Reliance Retail and

Spencers Retail with many new companies entering into this field. In India the organized retail

covers a very low share of% and is subjected to increase to 12% in coming couple of years.

In such a high fragmented market an organization for not just to retain customers, but also to

expand its consumer base have to make continuous innovation, innovation in product, in

operations, in retail environment, in services, in everything. If your stores cannot generate

unforgettable consumer experiences, well, as the cliché goes, don’t blame it on Rio then, the

problem lies somewhere else.

Talking about the super markets, the consumer experiences can be generated by concentrating

on proper assortment mix which is an important strategic tool in retail marketing.

4

Page 5: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Conceptual Framework

Retailing

In an ideal business world, most marketers would prefer to handle all their distribution

activities by way of the corporate channel arrangement we discussed in the Distribution

Decisions Tutorial. Such an arrangement provides the marketer with two important benefits.

First, being responsible for all distribution means the marketing organization need only worry

about making decisions concerning their product. When others, such as resellers, are involved

in distribution attention is not given to a single supplier but is stretched across all products the

reseller carries. Second, having control on all distribution means the marketer is always in

direct contact with buyers of their products, which can make it easier to build strong, long-term

relationships with customers.

Unfortunately, as we saw in the last tutorial, for many marketing organizations a corporate

channel arrangement is not feasible. Whether due to high cost or lack of experience needed to

run a channel efficiently, the majority of marketing organizations rely on third parties to get

their products into the hands of customers.

In the next two sections of the Principles of Marketing Tutorials we examine the key parties

through which marketers seek distribution assistance. Choosing which parties to aid in product

distribution is important since a distributor’s actions can affect how customers view the

marketer and the products they offer. As we discussed in the Targeting Markets Tutorial, a

customer’s perception of a product affects how they mentally position the product in relation

to competitive products. How a product is distributed, including where it is located (e.g.,

reputation of resellers from whom they purchase) and customer experience with the

purchasing process (e.g., how long to receive, condition when received), will impact a

customer’s feelings about the product which in turn affects how a customer positions the

product in their mind.

5

Page 6: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Retailing Defination

Retailing is a distribution channel function where one organization buys products from

supplying firms or manufactures the product themselves, and then sells these directly to

consumers. A retailer is a reseller (i.e., obtains product from one party in order to sell to

another) from which a consumer purchases products. In the US alone there are over 1,100,000

retailers according to the 2002 US Census of Retail Trade.

In the majority of retail situations, the organization from which a consumer makes purchases is

a reseller of products obtained from others and not the product manufacturer. But as we

discussed in the Distribution Decisions Tutorial, some manufacturers also operate their own

retail outlets in a corporate channel arrangement. While consumers are the retailer’s buyers, a

consumer does not always buy from retailers. For instance, when a consumer purchases from

another consumer (e.g., eBay) the consumer purchase would not be classified as a retail

purchase. This distinction can get confusing but in the US and other countries the dividing line

is whether the one selling to consumers is classified as a business (e.g., legal and tax purposes)

or is selling as a hobby without a legal business standing.

As a reseller, retailers offer many benefits to suppliers and customers as we discussed in

the Distribution Decisions Tutorial. For consumers the most important benefits relate to the

ability to purchase small quantities of a wide assortment of products at prices that are

considered reasonably affordable. For suppliers the most important benefits relate to offering

opportunities to reach their target market, build product demand through retail promotions,

and provide consumer feedback to the product marketer.

6

Page 7: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Concerns of Retailers

Retailers are faced with many issues as they attempt to be successful. The key issues include:

Customer Satisfaction – Retailers know that satisfied customers are loyal customers.

Consequently, retailers must develop strategies intended to build relationships that result in

customers returning to make more purchases.

Ability to Acquire the Right Products – A customer will only be satisfied if they can purchase the

right products to satisfy their needs. Since a large percentage of retailers do not manufacture their

own products, they must seek suppliers who will supply products demanded by customers. Thus, an

important objective for retailers is to identify the products customers will demand and negotiate

with suppliers to obtain these products.

Product Presentation – Once obtained products must be presented or merchandised to

customers in a way that generates interest. Retail merchandising often requires hiring creative

people who understand and can relate to the market.

Traffic Building – Like any marketer, retailers must use promotional methods to build customer

interest. For retailers a key measure of interest is the number of people visiting a retail location or

website. Building “traffic” is accomplished with a variety of promotional techniques such as

advertising, including local newspapers or Internet, and specialized promotional activities, such as

coupons.

Layout– For store-based retailers a store’s physical layout is an important component in creating

a retail experience that will attract customers. The physical layout is more than just deciding in what

part of the store to locate products. For many retailers designing the right shopping atmosphere

(e.g., objects, light, sound) can add to the appeal of a store. Layout is also important in the online

world where site navigation and usability may be deciding factors in whether of a retail website is

successful.

Location – Where to physically locate a retail store may help or hinder store traffic. Well placed

stores with high visibility and easy access, while possibly commanding higher land usage fees, may

hold significantly more value than lower cost sites that yield less traffic. Understanding the trade-off

between costs and benefits of locations is an important retail decision.

7

Page 8: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Keeping Pace With Technology – Technology has invaded all areas of retailing including

customer knowledge (e.g., customer relationship management software), product movement (e.g.,

use of RFID tags for tracking), point-of-purchase (e.g., scanners, kiosks, self-serve checkout), web

technologies (e.g., online shopping carts, purchase recommendations) and many more.

Retailing in India

India retail industry is the largest industry in India, with an employment of around 8% and contributing

to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by

strong income growth, changing lifestyles, and favorable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail

industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320

billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of

retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural

consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5

billion by 2010 from the current size of US$ 7.5 billion.

Shopping in India have witnessed a revolution with the change in the consumer buying behavior and the

whole format of shopping also altering. Industry of retail in India which have become modern can be

seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes

which offer food, shopping, and entertainment all under the same roof.

Retail industry

Even though India has well over 5 million retail outlets of all sizes and styles (or non-styles), the

country sorely lacks anything that can resemble a retailing industry in the modern sense of the

term. This presents international retailing specialists with a great opportunity.

It was only in the year 2000 that the global management consultancy AT Kearney put a figure

to it: Rs. 400,000 crore (1 crore = 10 million) which will increase to Rs. 800,000 crore by the

year 2005 – an annual increase of 20 per cent.

Retailing in India is thoroughly unorganised. There is no supply chain management perspective.

According to a survey b y AT Kearney, an overwhelming proportion of the Rs. 400,000 crore

8

Page 9: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

retail market is UNORGANISED. In fact, only a Rs. 20,000 crore segment of the market is

organised.

As much as 96 per cent of the 5 million-plus outlets are smaller than 500 square feet in area.

This means that India per capita retailing space is about 2 square feet (compared to 16 square

feet in the United States). India's per capita retailing space is thus the lowest in the world

(source: KSA Technopak (I) Pvt Ltd, the India operation of the US-based Kurt Salmon Associates).

Just over 8 per cent of India's population is engaged in retailing (compared to 20 per cent in the

United States). There is no data on this sector's contribution to the GDP.

From a size of only Rs.20,000 crore, the ORGANISED retail industry will grow to Rs. 160,000

crore by 2005. The TOTAL retail market, however, as indicated above will grow 20 per cent

annually from Rs. 400,000 crore in 2000 to Rs. 800,000 crore by 2005 (source: survey by AT

Kearney)

Given the size, and the geographical, cultural and socio-economic diversity of India, there is no

role model for Indian suppliers and retailers to adapt or expand in the Indian context.

The first challenge facing the organised retail industry in India is: competition from the

unorganised sector. Traditional retailing has established in India for some centuries. It is a low

cost structure, mostly owner-operated, has negligible real estate and labour costs and little or

no taxes to pay. Consumer familiarity that runs from generation to generation is one big

advantage for the traditional retailing sector.

In contrast, players in the organised sector have big expenses to meet, and yet have to keep

prices low enough to be able to compete with the traditional sector. High costs for the

organised sector arises from: higher labour costs, social security to employees, high quality real

estate, much bigger premises, comfort facilities such as air-conditioning, back-up power supply,

taxes etc. Organised retailing also has to cope with the middle class psychology that the bigger

and brighter a sales outlet is, the more expensive it will be.

9

Page 10: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

The above should not be seen as a gloomy foreboding from global retail operators.

International retail majors such as Benetton, Dairy Farm and Levis have already entered the

market. Lifestyles in India are changing and the concept of "value for money" is picking up.

India's first true shopping mall – complete with food courts, recreation facilities and large car

parking space – was inaugurated as lately as in 1999 in Mumbai. (this mall is called

"Crossroads").

Local companies and local-foreign joint ventures are expected to more advantageously

positioned than the purely foreign ones in the fledgling organised India's retailing industry.

These drawbacks present opportunity to international and/or professionally managed Indian

corporations to pioneer a modern retailing industry in India and benefit from it.

The prospects are very encouraging. The first steps towards sophisticated retailing are being

taken, and "Crossroads" is the best example of this awakening. More such malls have been

planned in the other big cities of India.

An FDI Confidence Index survey done by AT Kearney, retail industry is one of the most

attractive sectors for FDI (foreign direct investment) in India and foreign retail chains would

make an impact circa 2003.

Strategy

Strategy is the means by which objectives are pursued and obtained over time. This class will enable

learners to apply strategic thinking to their lives, through understanding strategy and putting it into

practice.

Military strategy is very comparable to any other form of planning. It is geared to governing a very large

group of individuals towards a very incredible goal in a highly capricious environment under astounding

constraints of space and time. That any military operations succeed at all is a testament to humanity’s

skill at the art of strategic planning. Military organizations have therefore got a great deal of the

strategic planning process down to a science. This science begins in administration and continues from

there.

10

Page 11: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Any organization charged with a goal to accomplish must go through a process of strategic planning. The

problem is, not many groups fully understand how to formulate a strategic plan that is at the same time

parsimonious and flexible. Most organizations attempt to perform strategic planning in the wrong order.

Many see risk analyses as the first step to be followed, some people simply break down tasks by looking

at the deadlines and performing first those that must be finished earliest. A cogent and regular system

of decision making is not often employed.

Some of the best policy-makers, however, look to the objective for their inspiration while planning. This

is the optimum mode of strategic planning, and is successful more often than not. It does not, however,

start at the very beginning of the strategic planning process. Strategic planning begins with organization.

Before anything else, or at least in tandem with the formulation of an objective, roles and

responsibilities must be given to those who will work in the execution of operations that will eventually

end in the attainment of an objective.

Strategic planning, therefore, begins with simple administration. “The Army,” after all, “marches on its

stomach.” Without adequate administration in place, logistics will not flow. When logistics do not flow,

the army cannot function. What’s more, to extend the culinary metaphor, “too many cooks spoil the

broth.” Overlapping responsibility not only begets a lack of parsimony, but it can create confusion at the

level of command. The first step to strategic planning, therefore, is to make certain the organization

charged with accomplishing a task is administrated effectively. The second stage is planning.

The intent of this Class is to give a very brief discussion of certain aspects of military administration in

their ideal forms, and then discuss strategic planning from a very high level of conceptualization. Basic

ideas about administration are rooted in the concept of chain of command, which delimit roles and

responsibilities. The roots of strategic planning are to be found in the identification of an objective, and

the processes used in planning how to attain it.

For those who have not read Sun Tzu’s military classic, the quote given above may seem mundane and

unspectacular. Sun Tzu’s mastery of war did not, however, come from crafty plans and perfect

stratagems. Though he understood the nature of deception and manoeuvre, one of his greatest

successes was knowing how to manage an army. One of the most important aspects of army

management is the chain of command. Understanding of the chain of command is essential to the

functioning of any large organization. Without adequate definition, rank structures can blur, and lines

11

Page 12: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

that separate areas of responsibility can be crossed. Such a situation creates waste, and is to be avoided.

Firm but flexible definition of roles and levels of command eliminates overlap and creates efficiency.

The modern concept of military strategy has four basic classifications that are useful for understanding

this concept in any organizational context. They are Grand Strategy, Strategy, Operations, and Tactics.

These four basic ideas are at the root of the usefulness of military rank structure. They also assist in

dividing responsibility between levels of the chain of command so that there is no overlap. These terms

will be defined further in the next section.

The successes of the Roman Legion, for example, were to a great extent based upon its superb

organizational structure. The capabilities of humans are only as good as the work environment into

which they are put. It was the Legion’s administration that made the Legionnaire so much more capable

than the Gallic tribesman. His work environment was well structured to utilizing him in the best way

possible. Marches were measured, each man carried an equal sized pack, the art of encastramentation

(constructing camps) was perfected, each man had a grain mill and adequate supplies of food. The

Legion was thus a policy tool with exceptional utility to policy makers. When a Senator wanted to know

how long it would take an army to get to its destination, he would measure it in marches, thus he knew

how many days it would walk, how much food was needed, as well as how much pay and salt to take for

the troops. Furthermore, the army had astounding battlefield flexibility. It was organized into four ranks

of specialists, (Velites, Hastati, Principes, Triarii), as well as being divided into ten cohorts of three

maniples each plus auxilia. Every section was an army in and of itself which could be used flexibly

because of the adequate training of each commander at every level of command.

Firm definition of the chain of command is thus not a process which ossifies an organization into

inaction, but a process of liberation through accurate definition. Workers function better when they

have been given a margin of manoeuvre that is well defined. A private, for example, who relies on his

sergeant to tell him when he can breathe is a useless private (with a useless sergeant, for that matter).

Granted, this is an overstatement of fact, but a private who is told “you man that machine gun and

cover this field of fire” is a useful private who frees his sergeant to do work in other areas. When the

sergeant has to stay at the foxhole to tell the private what to shoot at, both of the troops are rendered

less useful. The chain of command assists in avoiding this kind of overlap

The Four Levels of Strategic Planning

12

Page 13: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

The Levels of Strategic Planning: the Levels of Strategic Planning provide for a starting point from which

to organize a decision-making matrix. The four levels correspond also to ranks of military command and

general areas of interest in the planning of a military operation. These levels of analysis are useful as

they specify exact areas of responsibility for Command, Control, Communication, and Intelligence

(henceforth C3I) far more than do the simple terms “operational” and “policy.” Planning at the highest

levels is the most general and ethereal; the lowest levels are all the more specific and concrete.

Grand Strategy Political direction. As Clausewitz so accurately observed, “war is politics carried out by

other means.” The Grand Strategic decision-making process includes the decision to go to war, the

drafting of Rules of Engagement, and the decision on the GOALS to be achieved by a military operation.

The ruling government is at this level in military strategy. It plans wars.

Strategy High-level military planning. This work primarily involves LOGISTICS. The goals set are of lesser

scope than those of Grand Strategy, which is concerned with the whole war. Strategy is concerned with

dividing the war into theatres, supplying forces in these theatres, and harmonizing the Operational

objectives in-theatre to the general battle-plan. Once the army has been given its objectives by the

state, the Generals decide how best to achieve these aims. Generals plan campaigns.

Operations (Grand Tactics) In-theatre manoeuvre and attainment of limited objectives planned by the

General Staff. This work involves MANAGEMENT of forces which are attempting to make headway

towards Tactical goals which must be harmonized with the Strategic and in-theatre goals. Field/senior

officers (Colonels, Lt. Colonels, to a degree Majors) are charged with utilizing supplies provided at the

Strategic level to achieve their limited goals. These officers plan battles.

Tactics Short-term, easily identifiable objectives. With simple goals set by the Operational level of

command, the tactical goals are all bite-sized parts and parcels of the higher level game plan. This level

is primarily concerned with IMPLEMENTATION, and the personnel employed here, though not

necessarily long-term planners, are technically proficient and capable. Junior officers and senior Non-

Comissioned Officers manage combat. Securing and defending geographic points, persons, or denying

the same to the enemy are easily identifiable tactical goals. This level takes objectives within a battle.

The Objective

13

Page 14: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

In all strategic decision making, the objective must be held above all other considerations. By this it is

meant that the plan is secondary to the objective. Plans are thus made to reflect the objective first, and

other considerations second. Sun Tzu makes a very astute commentary about this aspect of planning. He

says “He wins his battles by making no mistakes. Making no mistakes is what establishes the certainty of

victory, for it means conquering an enemy that is already defeated.” This simple phrase accentuates the

importance of planning in the attainment of strategic goals. Objectives are not attained in the heat of

the moment with all your units working twenty hours a day, seven days a week. While this is proof of a

dedicated team and expert unit leaders, it is not a good reflection on the strategic planning process.

Sometimes such rushes are unavoidable, but better weather a rush while one is leisurely approaching an

accurate deadline than while rushing to complete another project. Planning is how you defeat the

problem or attain the objective before actually beginning work. Sun Tzu would say, “What the ancients

called a clever fighter is one who not only wins, but excels in winning with ease. Hence his victories bring

him neither reputation for wisdom nor credit for courage.”

Assurance of victory in this sense is accurate budgetary, time, and manpower assessments. Deadlines

are set with the knowledge of the capabilities of the organization, just as the logistical constraints of the

Legion were known because of its firm administration. Measurement and estimation is at the heart of

achievement. In order for plans to succeed, they must be made early and accurate. In order to do this, a

great range of expertise is required. This is why planning is necessarily an iterative process. Planning

considerations must incorporate the need for change. Since expertise is required, that expertise must be

used in a parsimonious fashion.

14

Page 15: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Company profile

Aditya Birla Group

Vision

To be a premium global conglomeratewith a clear focus on each business.

Mission

To deliver superior value to our customers, shareholders, employees and society at large.

Values

IntegrityCommitmentPassionSeamlessnessSpeed

HISTORY 

The roots of the Aditya Birla Group date back to the 19th century in the picturesque town of Pilani, set amidst the Rajasthan desert. It was here that Seth Shiv Narayan Birla started trading in cotton, laying the foundation for the House of Birlas.

Through India's arduous times of the 1850s, the Birla business expanded rapidly. In the early part of the 20th century, our Group's founding father, Ghanshyamdas Birla, set up industries in critical sectors such as textiles and fibre, aluminium, cement and chemicals. As a close confidante of Mahatma Gandhi, he played an active role in the Indian freedom struggle. He

15

Page 16: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

represented India at the first and second round-table conference in London, along with Gandhiji. It was at "Birla House" in Delhi that the luminaries of the Indian freedom struggle often met to plot the downfall of the British Raj.

Ghanshyamdas Birla found no contradiction in pursuing business goals with the dedication of a saint, emerging as one of the foremost industrialists of pre-independence India. The principles by which he lived were soaked up by his grandson, Aditya Vikram Birla, our Group's legendary leader.

Aditya Vikram Birla: putting India on the world map

A formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a global business empire at the age of 24. He was the first to put Indian business on the world map, as far back as 1969, long before globalisation became a buzzword in India.

In the then vibrant and free market South East Asian countries, he ventured to set up world-class production bases. He had foreseen the winds of change and staked the future of his business on a competitive, free market driven economy order. He put Indian business on the globe, 22 years before economic liberalisation was formally introduced by the former Prime Minister, Mr. Narasimha Rao and the former Union Finance Minister, Dr. Manmohan Singh. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the Philippines and Egypt.

Interestingly, for Mr. Aditya Birla, globalisation meant more than just geographic reach. He believed that a business could be global even whilst being based in India. Therefore, back in his home-territory, he drove single-mindedly to put together the building blocks to make our Indian business a global force.

Under his stewardship, his companies rose to be the world's largest producer of viscose staple fibre, the largest refiner of palm oil, the third largest producer of insulators and the sixth largest producer of carbon black. In India, they attained the status of the largest single producer of viscose filament yarn, apart from being a producer of cement, grey cement and rayon grade pulp. The Group is also the largest producer of aluminium in the private sector, the lowest first cost producers in the world and the only producer of linen in the textile industry in India.

At the time of his untimely demise, the Group's revenues crossed Rs.8,000 crore globally, with assets of over Rs.9,000 crore, comprising of 55 benchmark quality plants, an employee strength of 75,000 and a shareholder community of 600,000.

16

Page 17: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Most importantly, his companies earned respect and admiration of the people, as one of India's finest business houses, and the first Indian International Group globally. Through this outstanding record of enterprise, he helped create enormous wealth for the nation, and respect for Indian entrepreneurship in South East Asia. In his time, his success was unmatched by any other industrialist in India.

That India attains respectable rank among the developed nations, was a dream he forever cherished. He was proud of India and took equal pride in being an Indian.

Under the leadership of our Chairman, Mr. Kumar Mangalam Birla, the Group has sustained and established a leadership position in its key businesses through continuous value-creation. Spearheaded by Grasim, Hindalco, Aditya Birla Nuvo, Indo Gulf Fertilisers and companies in Thailand, Malaysia, Indonesia, the Philippines and Egypt, the Aditya Birla Group is a leader in a swathe of products — viscose staple fibre, aluminium, cement, copper, carbon black, palm oil, insulators, garments. And with successful forays into financial services, telecom, software and BPO, the Group is today one of Asia's most diversified business groups.

MANAGEMENT GROUP

The Aditya Birla Management Corporation Private Limited, is the Group's apex decision making body and provides strategic direction to Group companies. Its Board of Directors comprises::: Mr. Kumar Mangalam Birla, Chairman:: Mr. S. Aga:: Mr. D. Bhattacharya:: Mr. S. K. Jain:: Dr. S. Misra:: Mr. S. Misra:: Dr. B. K. Singh:: Mr. K. K. Maheshwari:: Mr. Vikram Rao:: Mr. Ajay Srinivasan

 

17

Page 18: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations.

The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea.

Globally the Aditya Birla Group is:

:: A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter

:: No.1 in viscose staple fibre

:: The fourth largest producer of insulators

:: The fourth largest producer of carbon black

:: The 11th largest cement producer globally

:: Among the world's top 15 BPO companies and among India's top three

:: Among the best energy efficient fertiliser plants

In India:

:: A premier branded garments player

:: The second largest player in viscose filament yarn

:: The second largest in the chlor-alkali sector

:: Among the top five mobile telephony companies

:: A leading player in life insurance and asset management

18

Page 19: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

:: Among the top three supermarket chains in the retail business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting.

Beyond business — the Aditya Birla Group is:

:: Working in 3,700 villages

:: Reaching out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla

:: Focusing on: health care, education, sustainable livelihood, infrastructure and espousing social causes

:: Running 41 schools and 18 hospitals

Transcending the conventional barriers of business to send out a message that "We care".

key products and brands locations capacities country

Hindalco Industries Ltd. alumina chemicals Renukoot (Uttar Pradesh),

Muri (Jharkhand), Belgaum (Karnataka)

1,160,000 tpa India

primary aluminium Renukoot, Hirakud (Orissa), *Taloja

489,000 tpa

extrusions Renukoot, Alupuram 27,700 tpa

rolled products Belur(West Bengal), Taloja(Maharashtra), Renukoot, Mauda(Maharashtra)

200,000 tpa

19

Page 20: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

wire rods Renukoot, Alupuram(Kerala) 64,400 tpa

aluminium foil Silvassa (Dadra & Nagar Haveli), Kalwa(Maharashtra)

11,000 tpa  

aluminium wheels Silvassa (Dadra & Nagar Haveli) 300,000 pcs  

*For Taloja recycling plant

Indal (subsidiary of Hindalco)

foil rolling Kollur (Andhra Pradesh) 4,000 tpa  

key products and brands locations capacities country

Birla Copper (Hindalco Industries Ltd.)

copper cathodes Dahej (Gujarat) 500,000 tpa India

continuous cast copper rods 97,200 tpa

sulphuric acid 1,670,000 tpa

phosphoric acid 180,000 tpa

gold (Birla Gold) 15 mt

silver (Birla Silver) 150 mt

DAP and complexes (Birla Balwan)

400,000 tpa

Hindalco Industries Ltd. (Aditya Birla Minerals Resources Pty. Ltd.)

copper cathodes Nifty mines 25,000 tpa Australia

copper in concentrate Mt. Gordon mines 40,000 tpa Australia

power Mt. Gordon mines 28mw Australia

key products and brands capacities country

Grasim Industries Ltd.

white cement Birla White 475,000 tpa India

grey cement UltraTech Cement (formerly Birla Plus), Birla Super

13.12 mn tpa

UltraTech Cement Ltd.

ordinary portland cement, portland blast furnace slag cement, portland pozzolana cement and grey portland cement

17 mn tpa

20

Page 21: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

key products and brands capacities country

Aditya Birla Nuvo Ltd (Hi-Tech Carbon)

carbon black Birla Carbon 230,000 mtpa India

Thai Carbon Black Co. Ltd.

carbon black Birla Carbon 220,000 mtpa Thailand

Alexandria Carbon Co. S.A.E

carbon black Birla Carbon 285,000 mtpa Egypt

Liaoning Birla Carbon Co. Ltd.

carbon black Birla Carbon 55,000 mtpa China

key products and brands capacities country

Pulp

Grasim Industries Ltd.

rayon grade pulp 70,000 tpa India

AV Cell Inc. softwood / hardwood pulp 122,500 tpa Canada

AV Nackawic Inc.

dissolving pulp 189,000 tpa Canada

Fibre

Grasim Industries Ltd.

viscose staple fibre (VSF) Birla Viscose 270,100 tpa India

Thai Rayon Public Company Ltd.

VSF Birla Viscose 110,000 tpa Thailand

PT Indo Bharat Rayon

VSF Birla Viscose 155,000 tpa Indonesia

Thai Acrylic Fibre

acrylic fibre Texlan 100,000 tpa Thailand

Alexandria Fiber Company, S.A.E

acrylic fibre 18,000 tpa Egypt

Yarn

Aditya Birla Nuvo Ltd.

viscose filament yarn Ray One 16,400 tpa India

Aditya Birla Nuvo Ltd. (Jaya Shree Textiles)

21

Page 22: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

flax yarns 15,340 spindles India

worsted yarns 25,548 spindles

PT Indo Liberty Textiles

rayon yarn, polyester, blended yarn

45,120 ring spindles Indonesia

PT Elegant Textile Industry

rayon, polyester, rayon-polyester blended spun yarn

168,088 spindles Indonesia

PT Sunrise Bumi Textiles

viscose rayon, polyester viscose, spun polyester, polyster combed cotton, anti pill yarn, sewing thread, high twist yarn, reverse twist yarn, flame retardant yarn, rayon cotton blended yarn, micro denier polyester rayon yarn, rayon silk yarn, slub yarn, lycra core spun yarn

89,376 spindles Indonesia

Indo Phil Acrylic Manufacturing Corporation

high bulk acrylic dyed yarn, non-bulk acrylic dyed yarn

3,700 mtpa Philippines

Indo Phil Textiles Mills Inc

poly viscose blended yarn, poly cotton blended yarn, polyester yarn

13,500 mtpa Philippines

Indo Phil Cotton Mills Inc

cotton yarn 10,000 mtpa Philippines

Indo Thai Synthetics Co. Ltd.

synthetic yarns 98,568 spindles Thailand

Fabrics

Grasim Industries Ltd.

fabric - polyester, viscose, silk and wool blends 146 looms India

Uncrushables, Ice Touch, Purista, and CleanFab 18 million metres

Aditya Birla Nuvo Ltd.

pure linen and linen blends Linen Club 107 looms India

flame retardent fabrics Pyroguard

Branded apparel

Aditya Birla Nuvo Ltd. (Madura Garments)

ready-to-wear garments Louis Philippe,Allen SollyVan Heusen, Peter England

India

key products and brands capacities country

22

Page 23: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Indo Gulf

urea Birla Shaktiman 864,600 mt India

Birla Copper (Hindalco Industries Ltd.)

DAP/NPK complexes Birla Balwan 400,000 tpa India

key products and brands capacities country

Grasim Industries Ltd.

caustic soda 258,000 tpa India

Aditya Birla Nuvo Ltd.

caustic soda 82,125 tpa

liquid chlorine 50,340 tpa

hydrochloric acid 5,475 tpa

Tanfac Industries Ltd.

aluminium fluoride 17,000 tpa India

hydrofluoric acid 17,000 tpa

Bihar Caustic and Chemicals Ltd.

caustic soda (100% NaOH) 92,750 tpa India

liquid chlorine 56,000 tpa

hydrochloric acid (100%) 43,750 tpa  sodium hypochlorite (Cl2 weight) 1,800 tpa  compressed hydrogen 17,42,400 nm3/a  aluminium chloride 12,000 tpa

stable bleaching powder 17,500 tpa

Aditya Birla Chemicals (Thailand) Ltd.

sodium triployphosphates,tetrasodium pyrophosphate,sodium hexametaphosphate,sodium acid pyrophosphate,monosodium phosphate,disodium phosphate,trisodium phosphate, speciality phosphates

epoxy resins (bis-a and bis-f), diluents, curing agents and allied products

sodium sulphite, sodium metabisulphite,sodium bisulphite

Polyphos® EpotecBirlasulf-SS,Birlasulf-SM,Birlasol 35

Thailand

23

Page 24: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

epichlorohydrin caustic soda chlorine

Thai Peroxide Co. Ltd.

hydrogen peroxide, peracetic acid, calcium peroxide

Encare, Ecare, Aqua-x, Birlox 5, Birlox 12, Ocare

15,000 mtpa Thailand

PT. Indo Raya Kimia

carbon disulfide 50,000 tpa Indonesia

key products and brands capacities country

Essel Mining & Industries Ltd

iron and manganese ore 15 million tons India

key products and brands capacities country

Pan Century Surfactants Inc.

fatty acids 55000 mtpa Philippines

fatty alcohol 30000 mtpa

glycerin 6500 mtpa

key products and brands capacities country

Aditya Birla Insulators

insulators 34,500 tpa India

key products and brands capacities country

PSI Data Systems Ltd. (subsidiary of Aditya Birla Nuvo Ltd.)

IT solutions (banking, finance and insurance) India

24

Page 25: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

key products and brands capacities country

Aditya Birla Minacs Worldwide Limited (subsidiary of Aditya Birla Nuvo Ltd.)

BPO / ITES 9,089 seats India

key products and brands capacities country

Birla Global Finance Company Ltd.

financial services India

Birla Sun Life Insurance Company Ltd.

insurance solutions India

Birla Sun Life Asset Management Company Ltd.

mutual funds India

Birla Sun Life Distribution Company Ltd.

investment planning services India

Birla Insurance Advisory Services Ltd.

non-life insurance advisory services India

key products and brands capacities country

Idea Cellular

cellular services Idea 21 million subscriber base India

key products and brands capacities country

Aditya Birla Retail Limited

25

Page 26: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

multi-format stores 170 retail outlets India

Aditya Birla Retail Limited

The Group's foray into the retail sector began in 2006, when the Aditya Birla Group acquired Trinethra, the south-India based chain of stores. Trinethra has over 170 outlets spread across Andhra Pradesh, Karnataka, Tamil Nadu and Kerala.

May 2007 saw Aditya Birla Retail Ltd. launching their brand of stores more.

While the supermarkets will have a minimum size of 10,000 sq.ft, the hypermarkets will be spread over an area of 75,000 sq.ft.

The more. retail chain is positioned on a platform that promises consumers a refreshing shopping experience that gives them better quality, better value and more variety, combined with convenience and ease of shopping.

more. promises a world class shopping experience to consumers, in their very own neighbourhood. Fulfilling everyday shopping needs for fruits, vegetables, grocery, frozen food, bakery, homecare, personal care and pharmacy. Offering branded FMCG products and house brands.

Till date 100 supermarkets have been rolled out spanning Pune, Mumbai, Ahmedabad, Delhi, Vizag, Bangalore, Vijayawada and Chennai.

[ Buying Categories ]

- Computer and Electronics >> Audio - Computer and Electronics >> Video and Camera - Electrical and Lighting >> Fans and Air Conditioners - Home and Office >> Furniture

Home appliance, Consumer Electronics, furniture

26

Page 27: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Registration Date 2005/11/01 (Year/Month/Date)

Buyer / Seller in EC21 Buyer

Business Type Buying Office

Year established 1999

Employees total 11 - 50

Annual revenue USD 5,000,001 - 10,000,000

Company Aditya Birla Retail Limited

AddressNo.1023 F10, Zhonghua Plaza, Huaihai Road, Shanghai Shanghai Shanghai 200020 China

Phone 86 - 021 - 63915960

Fax 86 - 021 - 63915949

Homepage www.adityabirla.com

Contact Eric Liu / Courcing Manager

Aditya Birla Retail (Press announcement)

— To be among the leading players

"Our mission is to change the way people shop. We will give them more." says Mr. Kumar Mangalam Birla

Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, today unveiled the brand name under which the Group's retail business will operate —"more.".

Addressing the media in Mumbai, Mr. Birla said, "We believe that the Indian consumer today is underserved. Even though we have many shopping outlets in India, many of them do not offer the kind of shopping experiences that people in most other parts of the world are used to, and even take for granted. As a result, spends by Indian consumers on their day-to-day needs and special shopping occasions are much less than they ought to be."

"Part of the reason for the underdevelopment of the Indian shopping environment is the lack of

27

Page 28: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

suitable infrastructure — whether it be the lack of economically viable real estate, a developed supply chain, the availability of trained manpower or backward linkages with suppliers. Our mission is to change the way people shop. We will give the Indian consumers a fundamentally better shopping experience. We will offer them more. than what they expect. Hence the brand — more.", averred Mr. Birla.

"We intend to be among the leading players in India," stated Mr. Birla. Elaborating on Aditya Birla Retail's strategy, he said that they would provide multi-shopping formats, a series of conveniently located neighbourhood supermarkets that would stock the daily and weekly household shopping needs and destination hypermarkets that cater to monthly and event-based shopping needs. The Group envisions having a national presence with both these formats in the not-so-distant future.

Mr. Birla announced that the first supermarkets under the more. brand name would open shortly in Pune and then quickly expand to other major cities in India.

Aditya Birla Retail intends to differentiate itself by providing very competitive prices and the right selection of products in a friendly and exciting environment. Over time, they will be developing their own products.

To ensure the freshest supply of fruits and vegetables to customers, the company is building linkages directly with the farmers. They are also in the process of architecting a supply chain to connect households more directly to farmers and towards this invest appropriately in backend infrastructure.

In January this year, the Group had acquired Trinethra Super Retail which has given them more than half a million square feet of selling area and a strong presence in the supermarket business in the four southern states of Andhra Pradesh, Karnataka, Tamil Nadu and Kerala, where it is the No.1 retailer.

Plans to increase its penetration in the south and initiate a pan-India roll-out are on the anvil. Across all of Aditya Birla Retail's formats, the brand name will be common, i.e. more.

The company does not intend having a joint venture partner given that the Aditya Birla Group has the necessary competencies inhouse. The investment in retail will not be out of any of the listed companies in the Aditya Birla Group, informed Mr. Birla.

Mr. Sumant Sinha, the CEO of the retail business said, "more. is an aspirational brand for an aspirational country. We have a bright and committed, enthusiastic team that represents the

28

Page 29: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

best experience from India and globally. Already on board are Mr. Andrew Denby to head the supermarkets, and Mr. Russell Berman, for the hypermarkets. We are all very excited about our business".

Research Methodology

Problem Definition: -

“Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail

outlets in Jaipur & designing an appropriate strategy for enhancing the category volume in

‘more’ retail outlets”

Purpose of Research:-

29

Page 30: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

• To identify proper assortment mix of Aditya Birla’s ‘more’ retail outlets differencing in

3 catchments.

• To design appropriate strategies for the above.

• To identify most selling staples and FMCG products in mom and pop stores close to

‘more’ retail outlets.

Research Design: -

Descriptive: -

• To find out most selling staples and FMCG products in mom and pop stores close to

‘more’ retail outlets at Jaipur.

Sampling Design: -

• Population: - All mop and pop stores close to ‘more’ retail outlets at Jaipur.

• Sampling Method: - Non-Probability

“Convenience Sampling”

Sample Size: - 60 shops in city of Jaipur

2 stores of each catchment & 5 shops in each catchment.

30

Page 31: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

DATA COLLECTION:-

Instrument: Questionnaire

Method: -

Most of the primary data are collected through direct personal interview with the use of

structured question.

Data analysis and findings

Data analysis and findings are the most important part of a research report, one can say the essence of a report. The whole research report depends on the fact how fairly and unbaisly the researcher has collected the data and analyzed them.

In this report the researcher haven’t used any personal questions to examine since this report is based on sellers so the demographics of the person selling goods won’t matter it would all depend on the location of the shop.

The data analysis and findings are based on location on basis of 3 catchment (A, B, C) and lastly showing an overall result taking all 3 catchment in consideration. Starting with A- catchment :

31

Page 32: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Category : RICE

Fig 1.1 Loose/Packet fig 1.2 In packet which brand

33

67

Sales (in %age)

loosepacket

42

20

10

28

Sales (in %age)

lalquiladaawatdoonindia gate

In A-catchment area 67% of people purchase packed rice and only 33 % people purchase loose. This shows that in A-catchment area people mostly prefer branded items rather than purchasing loose.

In fig 1.2 it can be seen that 42% people in A-catchment purchase lalquila and 28% purchase india gate and rest daawat and doon resembles to 20% and 10% respectively.This shows that people in A-catchment are not price sensitive, they are ready to pay the price if they get the quality.

Category : AATA

32

Page 33: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Fig 1.3 In packet which brand : Fig 1.4 Pack Size

60

30

10

Sales

Aashirwaad Sarbatilaxmi bhogshakti bhogaamrit

70

30

Sales

10 kg5 kg

I00% of shopkeepers sell packed aata , which again signifies that people of A-catchment prefer packet products over loose.

In fig 1.3 it can be seen that 60% of people purchase aashirwaad sarbati and 30% laxmibhog and rest 10% is for shakti bhog. So, from the above findings the resercher can once again conclude that people of A-catchment are not price sensitive rather they are quality sensitive as aashirwaad sarbati is of high price as compared to other brands.

In fig 1.4 it can be seen that 70% of shopkeepers say that people here basically ask for 10 kg packet and only a few 30% ask for 5 kg packet

Category : DALFig 1.5 type of Dal preferred

50

30

155

Sales

Moong mogarmoong chilkamoong dalchana dal

Category : GHEE Category : Edible Oil

33

In fig 1.5 it can be seen that 50% people of A–catchment generally prefer having moong mogar and 30% prefer having moong chilka , a minor 15% prefer having moong dal nag rest 5% chana dal.

In respect to packing 100% of shopkeepers say that generally people of that area ask of 1 kg.

So the observation drawn from the above points are that people of A-catchment are very hygienic and purchase in very less quantity in perishable items as seen above.

Page 34: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Fig 1.6 Most preferred brand : Fig 1.7 Most Preferred brand :

40

40

20

Sales

SarasAmulMilk foodKrishna

30

40

30

Sales in %age

saffolafortunechambalsundrop

All people of A-catchment purchase ghee and edible oil in packet which signifies that these people are very hygienic and prefer packet products.

In fig 1.6 it can be seen that saras and amul dominates this category with having a share of 40% each and rest 20% is shared by milkfood. So this again shows that people of A-catchment are not price sensitive as as both saras and amul market price is Rs180 and Rs200 respectively which is much higher then other ghee’s.

In fig 1.7 frotune oil covers maximum market share with 40% ands next to it are saffola and chamble with share of 30% each. Category : Sampoo Fig 1.8 Catregory : Bathing soap fig 1.9

10

30

20

40

Sales (IN %AGE)

SUNSILKHEAD & SHOULDERSCLINIC ALL CLEARGARNIER

40

10

40

10

Sales (in %age)

lux pears dettol lifeboy

In fig 1.8 garnier covers 40%, head n shoulders 30 % , 20%clinic plus and rest by sunsilk. In Fig 1.9 lux and dettol covers 40% each and lifebuy and pears 10% each.

So it can be concluded from above that people are very helth concious as 40% use dettol soap .

Fig 1.10 Category : Washing soap Fig 1.11 Category : Washing Powder

34

Page 35: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

40

20

40

Sales

rin wheel tide oswal

30

30

10

30

Sales

rin surf excelarieltide

In the above categories when shopkeepers were asked about pack sizes they just responded the normal pack size generally available in market.

In fig 1.10 rin and oswal having a share of 40% each and 20% is covered by wheel . So, it can be noted oswal shop shares 40% market which is a local brand .

In fig 1.11 rin , surf excel and tide share 30% each and rest 10 % is shared by ariel In this category people genrally go for branded products.

Fig 1.12 Category : Namkins fig 1.13 Category : Talcum powder

60

20

10

Sales

Bikaji haldiram ajab other

30

40

10

10 10

Sales

axe ponds dermicool

nycil boroplus

In category namkins i.e. fig 1.13 bikaji covers 60% market, 20% is covered by haldiram and 10% by ajab. Now, ajab is a local brand which signifies that in this category people also have local brands i.e. they are not very brand loyal.

In fig 1.13 ponds share 40 %, 30% Is shared by axe and dermicool ,nycil nad boroplus share 10% each.So it can be observed from above that few are very brand loyal while this category also have population which are not very brand conscious.

35

Page 36: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

B-catchmentCategory : RICE

Fig 1.1 Loose/Packet fig 1.2 In loose of what price

60

40

Sales (in %age)

loosepacket

10

20

30

40

Rs 15-20Rs 21-25Rs 26-30Rs 31-36

In B-catchment area 60% of people purchase loose rice and only 40% people purchase packet. This shows that in B-catchment area people mostly prefer loose items . Here people are both price sensitive and quality sensitive.

In fig 1.2 it can be seen that 40% people in B-catchment purchase rice priced between 31-35 and 30% purchase between 26-30 .This shows that people in B-catchment are price sensitive, but in accordance with price they also lookfor quality.

36

Page 37: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Category : AATA

Fig 1.3 In packet which brand : Fig 1.4 Pack Size

30

40

10

20

Sales

Aashirwaad Sarbati laxmi bhog

shakti bhog aamrit

70

30

Sales

10 kg5 kg

I00% of shopkeepers sell packed aata , which again signifies that people of B-catchment prefer packet products over loose.

In fig 1.3 it can be seen that 40% of people purchase laxmi bhoj and 30% aasirwad sarbati and 20% is for aamrit bhog and rest 10% sakti bhog.So, from the above findings the resercher can once again conclude that people of B-catchment are price sensitive as 40% purchase laxmi bhog and they are also quality sensitive as aashirwaad sarbati is of high price as compared to other brands.

In fig 1.4 it can be seen that 70% of shopkeepers say that people here basically ask for 10 kg

Category : DALFig 1.5 type of Dal preferred

50

30

155

Sales

Moong mogarmoong chilkamoong dalchana dal

37

In fig 1.5 it can be seen that 50% people of B–catchment generally prefer having moong mogar and 30% prefer having moong chilka , a minor 15% prefer having moong dal nag rest 5% chana dal.

In respect to packing 100% of shopkeepers say that generally people of that area ask of 1 kg.

So the observation drawn from the above points are that people of A-catchment are very hygienic and purchase in very less quantity in perishable items as seen above.

Page 38: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Category : GHEE Category : Edible Oil

Fig 1.6 Most preferred brand : Fig 1.7 Most Preferred brand :

30

30

40

Sales

SarasAmulMilk foodKrishna

10

40

50

Sales in %age

saffolafortunechambalsundrop

All people of B-catchment purchase ghee and edible oil in packet which signifies that these people are very hygienic and prefer packet products.

In fig 1.6 it can be seen that saras and milkfood dominates this category with having a share of 30% each and rest 40% is shared by milkfood. So this again shows that people of B-catchment aret price sensitive .

In fig 1.7 chambal oil covers maximum market share with 50% ands next to it is fortune and rest 10% is shared by saffola.

Category : Sampoo Fig 1.8 Catregory : Bathing soap fig 1.9

10

30

20

40

Sales (IN %AGE)

SUNSILKHEAD & SHOULDERSCLINIC ALL CLEARGARNIER

20

10

40

30

Sales (in %age)

lux pears dettol lifeboy

In fig 1.8 garnier covers 40%, head n shoulders 30 % , 20%clinic plus and rest by sunsilk. In Fig 1.9 dettol covers 40% each and lifebuy around 30 %.

So it can be concluded from above that people are very helth concious as 40% use dettol soap .

38

Page 39: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Fig 1.10 Category : Washing soap Fig 1.11 Category : Washing Powder

40

20

40

Sales

rin wheel tide oswal

30

30

10

30

Sales

rin surf excelarieltide

In the above categories when shopkeepers were asked about pack sizes they just responded the normal pack size generally available in market.

In fig 1.10 rin and oswal having a share of 40% each and 20% is covered by wheel . So, it can be noted oswal shop shares 40% market which is a local brand .

In fig 1.11 rin , surf excel and tide share 30% each and rest 10 % is shared by ariel In this category people genrally go for branded products.

Fig 1.12 Category : Namkins fig 1.13 Category : Talcum powder

40

20

40

Sales

Bikaji haldiram ajab other

30

40

10

10 10

Sales

axe ponds dermicool

nycil boroplus

In category namkins i.e. fig 1.13 bikaji covers 60% market, 20% is covered by haldiram and 40% by ajab. Now, ajab is a local brand which signifies that in this category a mahor share is of ajab namkins .

In fig 1.13 ponds share 40 %, 30% Is shared by axe and dermicool ,nycil nad boroplus share 10% each.So it can be observed from above that few are very brand loyal while this category also have population which are not very brand conscious.

39

Page 40: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

C-Catchment

Category : RICE

Fig 1.1 Loose/Packet fig 1.2 In loose of what price

80

20

Sales (in %age)

loosepacket

30

40

20

10

Rs 15-20Rs 21-25Rs 26-30Rs 31-36

In C-catchment area 800% of people purchase loose rice and only 200% people purchase packet. This shows that in C-catchment area people mostly prefer loose items . Here people are mostly price sensitive.

In fig 1.2 it can be seen that 40% people in C-catchment purchase rice priced between 21-25 and 30% purchase between 15-20 .This shows that people in C-catchment are very price sensitive, the main factor for purchasing any product from any place is price.

40

Page 41: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Category : AATA

Fig 1.3 In packet which brand : Fig 1.4 Pack Size

10

40

30

20

Sales

Aashirwaad Sarbati laxmi bhog

shakti bhog aamrit

70

30

Sales

10 kg5 kg

I00% of shopkeepers sell packed aata , which again signifies that people of C-catchment prefer packet products over loose.

In fig 1.3 it can be seen that 40% of people purchase laxmi bhoj and 30% sakti bhog and 20% is for aamrit bhog and rest 10% aashirwaad sarbati.So, from the above findings the resercher can once again conclude that people of C-catchment are price sensitive as 90% of sale comprises from laxmi bhog,sakti bhog and aamrit and all three comes under ame price range.

In fig 1.4 it can be seen that 70% of shopkeepers say that people here basically ask for 10 kg

Category : DAL

50

30

155

Sales

Moong mogarmoong chilkamoong dalchana dal

41

In fig 1.5 it can be seen that 50% people of B–catchment generally prefer having moong mogar and 30% prefer having moong chilka , a minor 15% prefer having moong dal nag rest 5% chana dal.

In respect to packing 100% of shopkeepers say that generally people of that area ask of 1 kg.

So the observation drawn from the above points are that people of A-catchment are very hygienic and purchase in very less quantity in perishable items as seen above.

Page 42: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Category : GHEE Category : Edible Oil

Fig 1.6 Most preferred brand : Fig 1.7 Most Preferred brand :

20

20

30

30

Sales

SarasAmulMilk foodKrishnaLoose

40

50

10

Sales in %age

saffolafortunechambalengine

All people of B-catchment purchase edible oil in packet and in respect of ghee 30% population purchase loose.

In fig 1.6 it can be seen that branded ones account to 70% of sale , while 30% purchase it loose.so it can be said that people of C-catchment want low ost gfhee or they cant afford in large quantity.

In fig 1.7 chambal oil covers maximum market share with 50% ands next to it is fortune and rest 10% is shared by engine.

Category : Sampoo Fig 1.8 Catregory : Bathing soap fig 1.9

10

30

30

10

20

Sales SUNSILK

HEAD & SHOULDERS

CLINIC ALL CLEAR

GARNIER

chik

20

30

20

20

20

Sales (in %age)

lux gogrej no 1 dettol

lifeboy emami

In fig 1.8 chik covers 20%, head n shoulders 30 % , 30% clinic plus and rest by sunsilk. In Fig 1.9 all soaps share equally 20% each. So it can be concluded from above that people are very helth concious as 40% use dettol soap .

42

Page 43: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Fig 1.10 Category : Washing soap Fig 1.11 Category : Washing Powder

40

20

40

Sales

rin wheel tide oswal

30

10

30

40

Sales

rin surf exceltideothers

In the above categories when shopkeepers were asked about pack sizes they just responded the normal pack size generally available in market.

In fig 1.10 rin and oswal having a share of 40% each and 20% is covered by wheel . So, it can be noted oswal shop shares 40% market which is a local brand .

In fig 1.11 rin , rin and tide share 30% each and rest 40 % is shared by others. In this category people of C-catchment genrally go for non-branded products.

Fig 1.12 Category : Namkins fig 1.13 Category : Talcum powder

10

10

2060

Sales

Bikaji haldiram ajab other

30

40

10

10 10

Sales

axe ponds dermicool

nycil boroplus

In category namkins i.e. fig 1.13 others covers 60% market, 10% is covered by haldiram and 20% by ajab. Now, a major 60% is shared by local brands .

In fig 1.13 ponds share 40 %, 30% Is shared by axe and dermicool ,nycil nad boroplus share 10% each.So it can be observed from above that few are very brand loyal while this category also have population which are not very brand conscious.

43

Page 44: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Recommendations

Aditya Birla Retail Ltd’s ‘more’ should set their assortment mix differentiating in

3 catchments (A,B,C)

‘More’ retail outlets should revise their MBQ’s ( Maximum Bin Quantity)

For A-catchment it should emphasize on quality and for perishable products it should set

less MBQ’S.

Range is also important for A-catchment area as people here are very brand loyal and if

they don’t get their brand it becomes a loss of potential customer.

For perishable products it should set MBQ very less and try and keep fresh items ,

especially for A-catchment.

Customer of A-catchment is not price sensitive.

For B-catchment customers it should emphasize both on price and quality.

It should keep loose rice if different varieties and price so that customer gets choice in

loose products also.

It should appropriately design various promotional schemes for B-catchment customers

so as to increase footfall.

C-catchment customers are very price sensitive, so it should try and keep the prices there

as low as possible.

In C-catchment it should keep products very less in quantity as their purchasing power is

very less.

It should packet various items in less quantity like 100gms,200 gms,250 gms so that

customer get a choice, as C-catchment customers purchase very less quantity at a time.

It should negotiate a deal with oswal soaps as it is sold in all 3- catchments and also

captures huge market share in washing soap category.

It should also make a deal with other local dealers in respect to namkins , washing

powder, as people of C-catchment generally prefer low priced good.

44

Page 45: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Few products like Frotune oil, chamble oil,milkfood ghee,oswal soaps,dettol shop etc.

which are having almost equal demands in all catchments ,their MBQ should be kept high

and should take care of never running short of these products.

45

Page 46: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Limitations

The sample size taken for our survey is small and hence the conclusions drawn from this

may not apply to the entire population.

Response Error: It is of two types:

a) Inability error: Many a times it so happens that the respondents are not fully

aware. In such cases it was difficult for them to fill up the questionnaire.

b) Unwillingness Error: Respondents were deterrent to provide information because

of lack of time and no incentive for them.

46

Page 47: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Conclusion

At the end of the research work the researcher can conclude that for the success of any retail outlet a proper assortment mix is extremely important. Today in this competitive environment especially in retail sector where every day a new company is being established we can only say ‘survival of the fittest’ and to survive here every organization must keep a check on every thing happening in and around.

So, to survive the competition every organization have to design different strategy for different areas based on its demographics and this research work is also based on proper assortment mix in different catchments of Aditya birla’s ‘more’ retail outlets. After the research it can be concluded that their needs to be difference in type , range, variety ,price in different areas.

The overall analysis can be derived in 3 points :

A-catchment people are not price sensitive, they prefer quality on price and moreover they also need variety as they are brand loyal customers.

B-catchment customers are both price and quality sensitive these people are not very brand loyal can change their brand preference but maintains a level of quality.

C-catchment customers are only price sensitive and they prefer product which is of lower price whether it be of private level or branded.

Lastly the researcher hopes that the above research will help the organization and also make a difference to it.

47

Page 48: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

48

Page 49: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Questionniare

Dear Seller , we are conducting an survey on type of grocery item mostly sold at your shop so that we can appropriately design policies on those items. So I request you give your 10 min to fill this questionnaire.

1. Name of person / Shop ………………………………………………………………………..

2. Location …………………………………………………………………………………………………

3. Rank appropriately as per Consumption/Sales ( please rank at least two )

a)

Rice Tick Loose

Category Price

Packet Rank Pack Size Rank

Loose Basmati 15-20 Lal quila 500 gms

packet Dubar 21-25 India gate 1 kg

Tibar 26-30 Doon 2 kg

Parimal 31-35 Kohinooor 5 kg

Sella 36-40 Charminar 10 kg

Kinki 41-45 Daawat

b

Aata Rank If packet then which, Pack size Rank

Packet Aashirwad 1 kg

49

Page 50: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

loose Aashirwaad Sarbati 2 kg

Laxmi Bhog 5 kg

Shakti bhog 10 kg

Aamrit

Others………………..

c)

Dal Tick If loose then which,

Rank QuantityRank Sampoo Pouch

RankBottle Rank

Packet Chana dal 500 gms Sunsilk

Loose Moong dal 1 kg Head n shoulders

Tur/arhar dal 2 kg Dove

Moong Chilka 5 kg Clinic all clear

Other…… Garnier

Chik

Pantene

50

Page 51: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Bibliography

51

Page 52: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

d)

Ghee Tick

If Packet then which,

Rank Quantity

Rank

Oil Tick

If Packet then which,

Rank Quantity

Rank

Packe

t Saras 500 gms Packet Saffola 500 ml

Loose Amul 1 kg Loose Fortune 1 ltr

Milk food

2 kg Nature fresh

2 ltr

Mother

Dairy 5 kg

Chamba

l 5 ltr

Krishna Sundrop 15 ltr

Mahaan Dhara

Other… Engine

e.

Bathing soap

Rank Washing soap

Ran

k

Washing Powder

Rank Pack Size Rank

Lux Rin Rin

52

Page 53: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Liril Wheel Surfexcel

Dettol Tide Ariel

Lifeboy Oswal Tide

Dove Bandar chap

Wheel

Cinthol Gharahi Gharee

Pears Sunflower Nirma

Godrej Other Other..

Others..

f.

Juices Rank Namkins Rank Pack

size

Rank Talcum powder Rank

Real Bikaja AXE

Fresh Haldiram Ponds

Kisaan Parsumal Fa

Rasna Vardaman Neviea

Other Other. Liril

53

Page 54: Assessment of most selling staples & FMCG products in mop & pop stores close to ‘more’ retail outlets in Jaipur & designing an appropriate strategy for enhancing the category volume

Dermicool

Nycil

54