Retail visit at MORE Megastore

Project
Report
1
Submitted by-
Sachin Pratap Singh
MBA3 (1357)
Universal Business School

Introduction..3
Retail trend in india...4
Grid layout of MORE..5
Socio economic importance of More Megastore
in andheri east.6-7
Identifying the Retail Type and its
Product/Service Categories..8-9
Competitive Priorities..10
Value Proposition11
Strategic Drivers of the Consumer Electronics
and Durables Industry12-15
Marketing Mix Strategy applied by
More megastore..16-18
Conclusion19
Bibliography.6


Title and Content
2

More is a pan-India retail chain operated by the Aditya Birla Group
company, Aditya Birla Retail Ltd. Currently it has 509 supermarkets
and 15 hypermarkets across the country. It plans to increase it to
1,300 supermarkets and 65 hypermarkets respectively by 2016.

Aditya Birla Retail Limited provides customers products under its
own labels. As per a report in Economic Times, Aditya Birla Retail
Ltd ( ABRL) with its 500 + 'More' branded supermarkets and 14
hypermarkets reported sales of Rs 1,966 crore and a net loss of Rs
650 crore in the year ended March 2012. The company has
accumulated losses of Rs 2,984 crore since it entered the segment
over six years ago. The third largest supermarket chain in the country
after Future Group and Reliance Retail has decided to increase its
borrowing limit to Rs 7,500 crore from Rs 5,000 crore. The firm
plans to open 100 supermarkets and 6-8 hypermarkets this fiscal
year.
INTRODUCTION
3

Indias largest industry.
It accounts for 10% of the Indias GDP and around 8% of the
employment.
India's fastest growing sector with 5% compounded annual rate.
Ranked 2
nd
in a Global Retail Development Index of
30developing countries
Rated 5
th
most attractive emerging retail market
Expected growth US$ 175-200Billion by 2016, of which
organized retailing makes up 3percent or US$ 6.4 billion

Retail Trends In India
4
Grid layout of MORE
5

I have chosen the More megastore located in Andheri east Mumbai. It
has a very pressure free atmosphere. To start off with, the More
Megastore in Andheri is a freestanding or a stand-alone store. It is
isolated and has no adjacent retailers with which they have to share
traffic. This type of store has quite a few advantages which work in the
favour of More Megastore-Andheri.
Advantages
Reduction in costs are possible, leading to lower prices
High flexibility in terms of timings and larger space may be
obtained.
No competition in close proximity.
Relatively low rental costs.
Better road and traffic visibility is possible.
Adaptation of facilities according to individual specification.
Easy parking can be arranged.
Disadvantages
Cost such as outside lighting, security, ground maintenance, trash
collection is to be borne by More Megastore.
They have a limited trade area.
Continuous and consistent traffic will not flow long
distances to visit a specific store.
Socio economic culture
6

Indias retail sector remains highly fragmented: 97 percent of the market belongs
to unorganized outlets; just three percent to organized ones. Indias retail sector
remains one of the few large unconsolidated markets in the world. The last few
years have witnessed an sudden increase of organized retail formats like
supermarkets and hypermarkets in an otherwise fragmented Indian retail market.
India is witnessing an unparalleled consumption explosion.











The economy is growing between 8 % 9 % and the improvement in income
along with factors like favourable demographics and growths in aspiration
consumption are the drivers for retail in India. In 2005, the retail industry in India
amounted to Rs. 10000 billion accounting for about 10% growth to the countrys
GDP. The organized retail market in India out of this total market accounted for
Rs. 350 billion which is about 3.5% of the total revenues. This retail market in
Indian retail sector has crossed more than Rs. 1000 billion by 2013.
7

At more for you they are committed to deliver quality & value to
our customers and have a range of private label brands as they will
as commercially branded products, offering - 100% satisfaction on
the quality of the products & services offered.
More for you hosts a range of private label brands across various
categories that follow stringent quality norms, and are available in
attractive prices and packaging. Our premium products give you
the opportunity to enjoy the difference and quality that is equal to
or better than the market's leading brands, but at competitive
prices. Recently our private label brands received the coveted
"The Most Admired Private Label"
Golden Spoon award at the Food Forum India. they offer a wide
range of assortment of over 4000 products, ranging from fresh
food to beverages, grocery to household care products. Our
range covers everything, from day-to-day essentials to
traditional favorites, from delicious treats, to healthy
alternatives. To ensure the freshest supply of fruits and
vegetables for you, they have built direct linkage with the
farmers.
Identify the Retail Type
and its Product Categories
8
SUPERMARKET
Bakery
Beauty Concepts
Beverages
Basic Apparels
Cutlery & Cookware
Fruits & Vegetables
Frozen & Dairy Products
FMCG Products
Home Care Products
Home Needs & Home Upkeep
Home Decor Products
Mobile Store
Personal Care & Cosmetics
Processed Food
Pharmacy
Ready to Cook/Prepared Food
Product Categories
HYPERMARKET

Apparels -Men/ Women

Audio & Video (A & V)

Bakery Beverages

Books and Audio & Video

Computer & Accessories

Do it yourself

Auto Accessories

Electronics

FMCG Products

Footwear

Frozen & Dairy Products

Fruits & Vegetables
Furniture

General Merchandise

Home Care Products

9

More. promises a world-class pleasurable shopping experience to
Indian consumers in their very own neighborhood.
More. Quality
Every product at more. goes through a thorough quality check
process ensuring 100 percent more satisfaction.

More. variety
Apart from a large range of national brands, shoppers will also find a
section called the Best of India, which is an assortment of unique
products sourced from across India. The wide range of fresh fruits
and vegetables along with private label offerings under brand names
Value, Select and Premium ensure that more. variety is a promise
delivered across the store.

More. convenience
Convenient locations within easy reach of consumers and a neat,
cheerful and friendly layout, enough isle space, signage that speaks
the consumer's language aiding in identifying what she has come to
shop for easily, all go a long way in ensuring more. convenience.

More. value
More. promises best in market pricing. Linking up directly with
farmers to source fresh fruits, vegetables and staples ensure great
quality as well as great price. Add to this, the membership program
Club more, which provides convenience, customized shopping
solutions and savings, and the more. value promise becomes all the
more evident
Competitive Priorities
10
Value Proposition
11

Maintaining customer relationship.

Retaining customers by Loyalty Programs.

Giving ambient environment at stores.

Working on Market Research Methodology.

Maintaining stored products.

Rigorous advertising and Promotion activities.

Attract shoppers & keep the min stores.

Womens need more space.

Honor the transition zone.
Evaluate the key strategic drivers
of the industry in which this Retailer
is part of
12

Target Audience
More Megastores targets higher and upper middle class
customers.
The large and growing young working population is a
preferred customer segment.
More megastore specifically targets working women and
home makers who are the primary decision makers.
Currently focused to tier 1 & 2 but 3 years down the line
tier 3 will also be added.
13
SWOT Analysis
Strength
1. It has strong pan-India presence as 540 supermarkets and nine
hypermarkets across country
2.It owns private label food brands like Feasters, Kitchens promise
and best of India
3. Over 11,000 employees form the workforce
4. Strong backing of the Aditya Birla Group
5. Good branding and marketing in India
6. The stores loyalty program has over 1 million customers
subscribed
Weakness
1.Tough competition from existing players and unorganized sector
means limited market share
2. New entrant in market compared to other players and low
penetration
Opportunity
1. Evolving retail industry in Indias urban and semi urban market, it
is expected to grow
2.Growing awareness and brand consciousness across different socio-
economic classes
Threats
1. Strong competition from domestic players also from global players
entering into Indian retail market
2.Increasing commodities prices causing pressure on profit margins
Competition
Competitors
1.Relaince Fresh
2.Food Baazar
3.Vishal Mart
4.Subhiksha
SWOT Analysis
14
Five force Analysis
Rivalry among competitors Reliance Retail
Big Bazaar
Bharti & Wal-Mart etc.
Threats of the entrants FDI policy not favorable for
international buyers.
Domestic conglomerates looking to
start retail chain.
International players looking to
foray India.
Bargaining power of the supplier The bargaining power of supplier
varies depending upon the target
segment.
The unorganized sector has a
dominant position.
There were few players who have a
slight edge over others on account
of being established players &
enjoying brand distinction.
Bargaining power of buyer Consumers are price sensitive.
Availability of more choice.

Threat of substitutes Unorganized retail.
Porters Five Forces Model
15
Apparels Food Farm Product Chill station
Denims & T-
shirts
Fabric & cut
piece
Formal wear
Casual wear
Party wear
Ethnic wear
Accessories
Night wear
Under garments
Dress materials
Sarees
Staples
Ready to eat
Ready to cook
International
food
Spices
Tea & Coffee
Fruits
Vegetables
Imported fruits
Dairy products

Soft drinks
Packaged
juices
Milk items
Frozen foods
Ice creams
Product Mix
Identify the Marketing Mix Strategy
applied by the Retailer to gain
competitive advantage

16

Cost plus price and Percentage method pricing.
Most widely used technique to price merchandise
Low prized private labels
Discount on bulk buying
To earn high profit margins on Private Labels brand
Give the opportunities to stand out from the crowd
To control on the quality of the product
To offer unique valuable product to customer


Organized Retailing Business is driven by one crucial factor:
Location
Approachable
Parking
Located in small commercial complexes close to 3-4 residential
areas
Observation: Close to cross roads
Pricing Mix
Place
17

To survive in the tough competition all retail outlets use
different strategies to attract customers and to retain
them
Print medium.
Loyalty programs
In-store Visual merchandising
Main idea -make bulk purchase
Promotion Mix
18

Our destination hypermarket caters to your monthly, weekly
and special occasion-based shopping requirements.
more.MEGASTORE is a one-stop shopping destination for your
entire family, where they offer you atop-notch experience by
giving you a wide spectrum of products, while making
shopping affordable for you and your family.
More. MEGASTORE aims to bring international standards and
operations on par with the rest of the global retailers, while
following stringent quality norms for our private labels, all our
manufacturer and partners are the best in their class.
Conclusion
19

1.Aditya Birla Group Companies Indian
companies Aditya Birla Retail Limited.
2. Company Journals.
3.www.google.com
4.www.morestores.com
5. www.adityabirlagroups.com
Bibliography
20