You are on page 1of 2

Shiny Provision Stores Current: Shiny Provision Store in Bangalore Owner: Madhavan Anandan Running the food and

grocery store for several years Traditional managing and market based skills Old Kirana type store Modern retail outlets threatening the store

Action taken: Asked one of customer who was a market research She decided to research and develop a strategy on how a small grocery store can survive in a sophisticated and professional environment

India: The country’s diversity leads to many marketing and retail challenges Differing consumer segments with different lifestyles, incomes etc. 72% population in villages but Urban India accounts for 64% of consumption Majority of the households (Eighty Million) earn below US$1584

India Retailing Scenario: History Vedas considered trading to be the pillar of society Indian traders among the first to acquire retailing skills

Retail Formats Fairs: annually conducted, thousands of people from surrounding areas, retailers sold goods such as clothes, ornaments, spices etc. Shandies: weekly markets organized on particular day, retailers and farmers sold their goods, high bargaining Village shopkeepers: individual merchants who sold items door to door, prevalent in villages Public Distribution shops: govt. run chain that ensured availability of food grains to the poor at affordable prices

Growth of Retailing: 1947: poverty, necessity based retailing 1950: 0.25 million retail outlets only 1960: not a single supermarket 1978: only 2.335 million retail outlets stocking FMCGs 1997: 5.55 shops per 1000 people 2005: 10.51 shops per 1000 people

Modern Retails Outlets Objective to analyse modern retail outlets vs. organized supply chain. discount based Specialized/Category Killers stores: extensive range under single category Factory Outlets: out of vogue. centralized quality control Expected to reach $30 billion by 2010 up from $14 billion. includes kirana stores Modern Retails Formats: Supermarkets: food and household products Department Stores: lifestyle driven Hypermarkets/Discount stores: large volume driven.e. Kirana shops Modern Retailing Formats: Modern/organized: Retail outlet chain. transparency in accounting. lacking technical and accounting standardization. Kirana outlets Analyze the strategy of kirana stores which can also be utilized by modern retails outlets .2 percent of population 80% outlets run by individuals or their family members Existed in local neighbourhoods unlike the modern retailing outlets India had 15 Million kirana shops Retailer had informal interaction and could even influence the purchase decision. professionally managed. Unorganized: Operated locally by any single owner. This had significant implications for consumer’s perception of modern retailing vs. Contributed to 60% of retail sales and comprised of mostly unorganized sector Unorganized sector created employment for nearly 39. 9. discounted prices Kirana Shops vs.5 Million people i.Kirana Stores: 25 to 400 sq feet Wide range of products for daily requirements of masses Offerings with limited Stock Keeping Units (SKU) Kept branded as well as lower priced & inferior unbranded products Food & grocery primarily Food & grocery market in India valued at US$236 billion in 2008.