OBJECTIVES OF THESTUDY

 To scan the customer buying behaviour.

 To know availability of varieties of products.
 To know about affordable price for everyone.
 To know the customer satisfaction level.
 To study of availability of offers and services.
 To study of quality of products.
 To determine the current status of D-Mart.
 To find out customers response towards D-Mart.

STATISTICAL INFORMATION
Rs. (in crore)

Year Total Total Net Profit After

Assets Revenue Sales Tax
2014 1,490.0 3,350.96 3,334. 92.34
62
2015 1,791.25 4,699.32 4,680. 159.65
60
2016 2,347.80 6,454.39 6,433. 211.39
52
2017 3,081.54 8,599.63 8,651. 318.24
96
2018 5,802.15 11,912.41 11,956 482.64
.82

 THE BUYING DECISION PROCESS: THE FIVE STAGES MODEL

Problem Recognition

Information Search
 Evaluation Alternatives

Purchase Decision

Post-purchase Behaviour

The consumer typically passes through five stages before he purchases: problem recognition,
information search, evaluation of alternatives, purchase decision, and post purchase behaviour.
Consumers may skip or reverse some of these steps. These steps may differ between first time
buyers and regular or repetitive purchases.

Problem Recognition

The buying process starts once the consumer recognizes a problem or need
triggered by internal or external stimuli. A consumer’s buying behaviour is influenced by
cultural, social, and personal factors such as reference groups, family, and social roles and
statuses. Reference groups have a direct or indirect influence on consumers’ attitudes and
behaviour.

 TYPES OF CONSUMER BUYING BEHAVIOUR

1. Complex buying behaviour

Consumers go through complex buying behaviour when they are highly involved
in a purchase and aware of significant differences among brands. Consumers are highly involved
when the product is expensive, bought infrequently, risky and highly self-expressive. Typically
the consumer does not know much about the product category and has much to learn. This buyer
 will pass through a learning process characterized by first developing beliefs about the product,
then attitudes, and then making a thoughtful purchase choice.

2. Dissonance- Reducing buying behaviour

Sometimes the consumer is highly, involved in a purchase but sees little

difference in the brands. In this case, the buyer will shop around to learn what is, available but
will buy fairly quickly because brand differences are not pronounced. The consumer will be alert
to information that might justify his or her decision. The consumer will first act, then acquire
new beliefs and end up with a set of attitudes. Here marketing communications should aim to
supply beliefs and evaluations that help the consumer feel good about his or her brand choice.

3. Habitual Buying Behaviour:

A typical consumer’s involvement in the buying process is low because the

consumer doesn’t see much difference between available brands in habitual buying behaviour.
The purchase of a food commodity such as a sack of flour or sugar is a good example.

4. Variety-Seeking Buying Behaviour:

Some buying situations are characterized by low consumer involvement but

significant brand differences. Here consumers are often observed to do a lot of brand’ switching.
An example occurs in purchasing cookies. The consumer has some beliefs, chooses a brand of
cookies without much evaluation, and evaluates it during consumption. But next time, the
consumer may reach for another brand out of boredom or a wish for a different taste. Brand
switching occurs for the sake of variety rather than dissatisfaction.

 Out of 100 respondents majority of the respondents i.e. 76% responds to D-Mart when they
think to purchase a products.

 Most of the customers buy their requirement in D-Mart on monthly basis. Customers realized
 that D-Mart store provides qualitative products with reasonable price.

 Most of the customers give response to the offers of D-Mart. Because of D-Mart provide
different offers to the customers.

 87% customers give response to D-Mart for a monthly purchase.

 As per the finding, majority of the respondents are interested to shopping house hold products
as compare to any other product.

 Because there are so many competitors in the market that’s why D-Mart give more offers as
compare to any other.

 D-Mart has positioned itself in the market as a discounted store because it provides low price
products.

 D-Mart holds a huge customers base because it is suitable to all level of income group.

 Majority of the respondents i.e. 77% respondents make a cash payment at the time of payment.

 At the time of visit or purchase 42 customers out of 100 spend between one hour to one and half
hour into D-Mart.

 50% customers mostly prefer time between 3p.m. to 6p.m. of the day.
  85% customer out of 100% customers have a distance between their house and D-Mart more
than10k.m..

 The location of D-Mart is 3.5 km away from Navi-Mumbai city. Even then people happy with
the location of D-Mart.

 Most of the customers are satisfied with parking facility provided the D-Mart.

 All most 96% customers recommend D-Mart to someone for shopping. But only 4% didn’t
recommend shopping from D-Mart because of parking facility, unavailability of products and
untrained staff.

For consumer

Also read: D-Mart listing makes Damani richer than Anil Ambani, Rahul Bajaj
Damani is a quiet man who keeps a low profile, but his winning traits are too evident to be missed.
Below are his 10 approaches to business that led him to roaring success

1. Keep an eye on the long term

Like Warren Buffett, Damani too has been a value investor who would take canny view of the long
term. When he turned an entrepreneur, he retained the same approach and built D-Mart without
relying on any quick shortcuts. For instance, he never leases property for his stores but buys it. In
the long term, it saves him from a big rental outgo. This was a key factor behind the profitability of
D-Mart.

Also read: Radhakishan Damani: Man with the Midas touch in the stock markets

2. Small is big

Damani started small and did not hurry to expand. Low scale gave him a better control of supply
chain and allowed him to focus on profitability right from the beginning. In the 15 years of its
existence, D-Mart has turned a profit each year.

3. Value your people

Damani began with buying a franchise of Apna Bazar. That was when he began building personal
relations with vendors and suppliers. He values both and they never let him down. The stores
never go out of stock.

4. Buy low, sell cheap

Damani knew what he was doing: offering people consumer products of daily use at heavy
discounts. That became his only goal. One of his methods was to pay his suppliers and vendors
within days instead of weeks which was the industry norm. They provided the goods at a cheaper
rate to him in lieu of early payment. He passed on the cost benefits to his customers, which
ensured consistent footfall.

5. Go local

Even though D-Mart is the most successful grocery retail chain of the country, Damani has
confined it to the western states. One reason is his reliance on local supplies instead of elaborate
supply chains.

6. Go slow

Though D-Mart started 16 years ago, it still has 119 stores in a few states, a small number
compared to those owned by Ambani and Biyani. Instead of rapid expansion, Damani adopted a
slow pace which gave him his focus on profitability. That's why D-Mart has not shut a single store
since it started and generates higher per store revenues than the stores of Ambani or Biyani.

7. No frills

Damani knew the purpose behind his enterprise was to supply consumer goods at lower prices.
He did just that, without wasting his energy on frills. His stores have limited range of products and
have simple decor. People come for just one thing: lower prices. The trait reflects in his own
appearance. He wears only white shirt and white trousers, for which he is called "Mr White and
White".

..
8. Ignore the herd

Damani had learnt and practised with success the art of not following the herd while he was an
investor. As an entrepreneur, he has the same approach. There have been so many new-fangled
ideas in retail, such as various e-commerce trends, which he did not give any importance.
Fashions or trends cannot influence the man who knows what he wants and how he can get it.
9. Avoid credit

Credit and delayed payments in retail business are risky because they can badly impact your
supplies and costs. Damani keeps away from credit and pays sooner than his suppliers expect.

10. Let your work speak

Damani keeps a low profile which affords him total dedication to his work. His slow and silent rise
in a depressed sector is a mark of his single-minded focus on work. He has rarely given an
interview to a TV channel or a newspaper...

SWOT analysis of D mart

December 9, 2018 By Hitesh Bhasin Tagged With: SWOT articles

D mart is a supermarket and hypermarket retail chain that is based out of India. The
chain which is a multi-category retailer offers a wide range of products under its
umbrella. Some of the categories it deals with include consumer goods, groceries,
personal care products, home care solutions, deli, kitchenware, furniture and home
appliances.

The company was started by Mr. Radhakishan Damani with the objective of offering
value-based products to families across the country at affordable rates. The retailer is
said to be modelling itself on Big Bazaar and follows similar pricing strategy. The
company that is headquartered in Mumbai also sells a lot of its private labels such as D
Mart Premia and D Mart Minimax.

D Mart has multiple stores at various location across India and also a fairly well spread
out distribution channel. The company registered an annual revenue of 1.86 billion
USD in the year 2016 and the business is expected to also showcase a steady growth.

Strenghts in the SWOT analysis of d-mart.

Strengths are defined as what each business does best in its gamut
of operations which can give it an upper hand over its competitors. The following are
the strengths of DMart :

 Focus on long-term: Damani, the founder of D Mart is an investor and thus the
company has been focused entirely on long-term gains. This has made the company
maximise its returns through a value is driven pricing strategy.
 Slow scaling up : D Mart started off on a very low key note and slowly took its time
to move up the ladder. This gave the company a better control and deeper
 understanding of its supply chain and also helped them manage the bottom line
better.
 People-centric management style : D Mart has a very good employee policy in
place and is very transparent in its employee relations. They also have a good
relationship with vendors and suppliers and the stakeholders are happy.
 Discount Policy: One factor that delineates D Mart from its competitor is its huge
discount policy. The retailer sells essential goods at a flat discount price which most
competitors cannot match and this helped them penetrate the market.
 Clear price based differentiation : D Mart never followed the trends set by other
competing retail brands but believed in setting their own trends. They captured the
market through a clear price based differentiation and priced their goods at
significantly lower prices than competitors.

Weaknesses in the SWOT analysis of D mart :

Weaknesses are used to refer to areas where the business or
the brand needs improvement. Some of the key weaknesses of D Mart are:

 Focus on certain places: Quite unlike their competitors, who are present
everywhere, D Mart has focused more on the Western States and has a very low
presence in the South. This has restricted them from gaining market prominence.
 Slow growth : D Mart has established almost 16 years ago much before the retail
boom set a fire in India. However, it has not been able to capture the market even as
much as many of the later entrants primarily because of its long-term focus.
 Sustainability of low pricing: The company has a zero credit policy and thus
vendors and suppliers give them a much better price which is how the company is
able to afford the low prices that the competitors cannot imagine.

Opportunities in the SWOT analysis of D mart :

Opportunities refer to those avenues in the environment that surrounds the business
on which it can capitalize to increase its returns. Some of the opportunities include:

 Technology: Technology has a lot to offer to retailers in terms of in-store experiences

and retailer can use IoT, artificial intelligence etc to create value-adding services to
their customers for which a premium can be charged.
 Personalization of services: Customers are looking for personalized services for
which they are willing to pay extra. Retailers should capitalize on this propensity to
pay more and increase the quality of their services.
Threats in the SWOT analysis of D mart :
Threats are those factors in the environment which can be detrimental to the growth of
the business. Some of the threats include:

 Online retailers: People in cities especially are highly lethargic about leaving their
homes and prefer to shop online today. Companies like Amazon and Flipkart thus
become major threats to most retailers.
 Online Start-ups: The hottest trend in India is online start-ups. Many of them are
aggregators who bring together the supplier and the customer cost-effectively. These
companies are the emerging threats more so because many new brands are
cropping up in the aggregation market primarily because of lower barriers to entry.

10 Secretes of Radhakishan Damani Success as Entrepreneur

#1 Firm belief on own Business
R K Damani carries a firm belief in his own business. He has highest promoters holding in his
own company Avenue Super Market. He believes in himself. Here is promoter holding details
of various holders in biggest companies in India. Due to his highest promoter holding he has
become second richest person of India.

#2 Long Term Vision

Radhakishan Damani is visionary entrepreneur. He carries this quality since stock market days.
He retains same approach while building a D-Mart. While building biggest retail chain of India,
D-Mart (Avenue Supermarket) he prefer to purchase own property for building a store rather
than taking it on rent. If property is taken on the rent lease period would be 30 years or above.
This could help him in big rental outgo (in turn increasing profitability of business)
#3 Buy in Wholesale (low price), sell in retail (high discount)
Buy in wholesale at low price & sell in retail with high discount is main principal of Damani for
D-Mart. As his company is buying things in bulk principal cost is low. Due to low cost
company can offer more discount to his customer. Due to high discount more customer gets
attracted to store. The store operates of B2C model which eliminates middlemen which helps
company to sell goods at lower price.

#4 Store for Middle Class Family

The D-Mart store is popular as store for the middle class family. The preferred area for the store
is middle class area where property price is very low. The products available in the store is
general purpose product, house hold products and area specific products. Big discount attracts
common man for buying household products.

#5 Vendor Relations
Maintaining vendor relations is next secrete of D-Mart success. Damani begun with buying a
franchise of Apna Bazar. From the beginning he started building relations with vendors and
suppliers. He values both suppliers and vendors. His vendors support him like anything. That’s
the reason store of D-Mart never go out of stock.

#6 Vendor Payment Terms

Fast payment to vendor is another secrete behind success of Damani’s venture D-Mart. In
general vendor payment condition is 30 to 60 days. However, he adopted aggressive payment
terms of 11 days. The faster vendor payment helps company to get things at lower price.
#7 Successful Copy of WallMart Model
Radhakishan Damani has successfully copied WallMart Business model. In order to under
WallMart business, he visited USA many times. WallMart is successful due to Every Day Low
Price Every Day Low Cost strategy. This strategy increases both sales and customer loyalty.
The similar strategy is successfully adopted by Damani in D-Mart. In order to implement this
strategy company works constantly on the minimizing operating costs.

#8 Local Supply Instead of Supply Chain

Although D-Mart is successful grocery retail chain of the country. Still store scope is confined
to western states. The company relies on the local supply instead of spending money on logistic
and supply chain.

#9 Low Number of Store and Focus

Radhakishna Damani’s next secrete sauce would appear to be focus. Avenue super market that
operate super market retail chain D-Mart opens only small number of stores. By 2020 company
holds only 196 Store all over India. On the other hand, reliance retail has 10901 store and
Future retail has 2000 stores. The less number of stores provide focus. Additionally, focus is
placed to make store as pure food and grocery store instead of adopting multiple other formats.
#10 Volume Business
Volume business is another secrete behind success of Damani’s business D-Mart. D-Mart turned
out to be low-price retail store. The low price leads to footfall of customers and leads to higher
sales volume. Due to higher volume more and more manufacturer wants to keep products in the
D-Mart Store. They are ready to give discount which is passed on to the customers.

As per me, Radhakishan Damani is a genius who turned out to be successful businessmen with
exceptional intelligence.