“ A STUDY ON RETAIL INDUSTRY AND COMPARATIVE ANALYSIS ON

SMART BAZAAR AND D-MART “

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor of Management Studies

Under the Faculty of Commerce

By

SAAD FAZIL QURESHI

Roll No. 133 Seat no.

Under the Guidance of

PROF. ZULFA KHAN

Studying at

Rizvi Education Society’s

Rizvi college of Arts, Science & Commerce

Rizvi Educational Complex, Bandra (West), Mumbai

Academic Year 2022 - 2023

1
 DECLARATION

I, SAAD FAZIL QURESHI student of TYBMS class , Roll no.123 Seat no.

of the academic year 2021 - 22 studying at RIZVI COLLEGE OF ARTS,

SCIENCE & COMMERCE , hereby declare that the work done on the project entitled “ A
STUDY ON RETAIL INDUSTRY AND COMPARATIVE ANALYSIS ON SMART
BAZZAR AND DMART is true and original to the best of my knowledge and any reference
is duly acknowledged.

Date: Signature of Student:

2
 CERTIFICATE

This is to certify that SAAD FAZIL QURESHI student of TYBMS class, Roll no.133
Seat no. of the academic year 2021 - 22 studying at RIZVI COLLEGE OF
ARTS SCIENCE AND COMMERCE, has successfully completed the project entitled “ A
STUDY ON RETAIL INDUSTRY AND COMPARATIVE ANALYSIS ON SMART
BAZAAR AND DMART

PROF. ZULFA KHAN PROF. MOHAMMED GAUS ANSARI

(Project Guide) (BMS Co-ordinator)

External Examiner Dr.ANJUM ARA

(Principal I/c)

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 ACKNOWLEDGEMENT

The satisfaction that accompanies the completion of any task would be incomplete without
mentioning the people who made it possible, whose consistent guidance and encouragement
crowded my efforts with success.
I consider as privilege to express my gratitude and respect to all those who guided me in
completion of the project.
I express my sincere gratitude to the principal for providing the facilities and the guidance. I
extend my profound thanks to my project guide PROF.ZULFA KHAN for giving me
opportunity to undertake this project. I convey my regards to untiring support and
encouragement. I am very thankful for all the guidance and support during my project work.
Finally I give immeasurable thanks to my parents and to all those who extended their support
and co-operation in bringing out this project work successfully.

SAAD FAZIL QURESHI

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 Index
TITLE OF THE CHAPTER
CHAPTER’S PAGE
NO.
INTRODUCTION
1.1. Meaning and definition .
CHAPTER NO 1. 1.2. Why Retailing is important? 7
1.3. Different type of Retail stores.
1.4 Industry profile.
1.5 Company Profile Of -Smart
Bazaar.
1.6Marketing mix
1.7. Marketing strategies and marketing campaigns
1.8 .why SMART BAZAAR?
1.9 swot analysis
1.10 awards and recongnition
1.11 impact of covid 19
1.12 balance sheet
1.13 .profit and loss statement
1.14 cash flow statement
1.15 SMART BAZAAR featured products and brands
1.16 company profile – DMART
1.17 history of dmart
1.18 strategies adopted by dmart
1.19 how dmart is profitable?
1.20 swot analysis
1.21 strategies for success of dmart
1.22 balance sheet statement
1.23 profit and loss statement
1.24 cash flow statement
1.25 list of other Indian retailers
CHAPTER NO 2. RESEARCH METHODOLOGY
2.1. Objectives of the study.
2.2. Hypothesis.
2.3. Sample Design. 48
2.4.Research Design
2.5. Data Collection.
2.6. Scope of Study.
2.7. Limitations of study.
CHAPTER NO 3. LITERATURE REVIEW 51
CHAPTER NO 4. DATA ANALYSIS, INTERPRETATION AND 56
PRESENTATION

CHAPTER NO 5. CONCLUSIONS AND SUGGESTIONS 74

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 EXECUTIVE SUMMARY

Executive summary

Retail industry in India is undoubtedly one of the fastest growing retail industry in the world. It is the largest
among all industries accounting to 10 percent of the country GDP and employs 8 percent of the workforce .
India has seen a drastic shopping revolution in terms of formal and consumer buying behavior. From
entertainment and food all under one roof and it is because of this trends that the retail industry is
witnessing a revolution as many as new format markets like hypermarkets, supermarkets, departmental store,
have made their way in the market.

It is said that customer is THE KING and the king always wants to win in every circumstances, Retail sector
is one of the most promising and growing sector in India, every company is trying to win the heart of the
customer (their kings) and building their trust in every possible way. However there is always a 'first mover
advantage' which goes in the favor of D-Mart and SMART BAZAAR these two are the companies which
has been doing phenomenal in the retail sector since their establishment. It has brought about many changes
to the buying pattern of the people; it has created the formats which provide all the items under one roof at
the cheapest rate.

The project title "A STUDY ON RETAIL INDUSTRY AND COMPARATIVE STUDY ON OF D-MART
AND SMART BAZAAR" helps us to understand the marketing mix of the two big retail companies of India
and their growth their strategy and how did they do all the promotional activities to enter the market and
why these two are the strong competitors for each other further we study about their future growth and some
of plans.

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 CHAPTER NO 1:
INTRODUCTION
Retail consists of the sale of goods or merchandise from a fixed location, such as a department store,
boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing
may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In
commerce, a “retailer” buys goods or products in large quantities from manufacturers or importers, either
directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are
often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the
process of retailing as a necessary part of their overall distribution strategy. The term “retailer” is also
applied where a service provider services the needs of a large number of individuals, such as a public utility,
like electric power.
Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping
streets may be for pedestrians only.
Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online
retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order,
are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as
food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and browsing and does
not always result in a purchase.
Retailing is a convenient and comfortable method of selling goods and services. Retailing is that value
addition activity which adds services along with sale of goods/commodities.

1.1 Meaning and Definitions

Retail is the end or final stage of any economic activity. The word “retail” comes from the old French word
“retailers”, which means to cut off or to break bulk. Retail involves the sale of goods from a single point
(malls, markets, department stores etc.) directly to the consumer in small quantities for his end use.
Therefore the retailer may be defined as a dealer or trader who sells goods in small quantities.
Definitions:
According to Philip Kotler, “Retailing includes all the activities involved in selling goods or services to the
final consumers for personal, non-business use.” A retailer or retail store is any business enterprise whose
sale volume comes primarily from retailing. Any organization selling to final consumers whether it is a
manufacturer, wholesaler or retailer is doing retailing. It does not matter how the goods and services are sold
(by person, mail, telephone, vending machine or internet or where they are sold- in a store, on the street or in
the consumer’s home.)
A retailer buys or goods or products in large quantities from manufacturers or importers, either directly or
through a wholesaler, and then sells smaller quantities to the end-user. Demand is identified and then
satisfied through a supply chain.

Retail Store : A place of business usually owned and operated by a retailer but sometimes owned and
operated by a manufacturer or by someone other than a retailer in which merchandise is sold primarily to
ultimate consumers.
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SUPPLY CHAIN.
Manufacturer

Wholesaler

Retailer

Customer

Manufacturers-
Manufacturers are the ones who are involved in production of goods with the help of machines, labor, and the
raw materials.
Wholesaler-
The wholesaler is the one who purchases the goods from the manufacturers and sells to the retailers in large
numbers but a lower price. A wholesaler never sells goods directly to the end users.
Retailer-
A retailer comes at the end of the supply chain who sells the product in small quantities to the end users as
per their requirement and need.
End User- The end user goes to the retailer to buy the goods (products) in small quantities to satisfy his need
and demands. The complete process is also called as end user

1.2 Why Retailing is Important?

1. Sales to Ultimate consumers of the products

In a retail transaction, the goods and services are sold to ultimate or final consumers. The products don’t get
resold after this transaction. Goods and services sold at this point can be used for various purposes such as
for domestic use, household use or for industrial use. Hence, at this point manufacturer can interact with his
consumers through retailer and know about their views.

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2. A convenient form of selling quantity-wise

The meaning of word retail is to break down the goods in small pieces and reselling them. The goods are
bought by the retailer in large quantities from the middleman or manufacturer and bulk is divided into small
quantities and sold to consumers as per their requirements. To do this, the retailer can repack goods in
various quantities and shapes so that it is convenient for consumers to choose and carry them to their homes.

3. Convenient Place and Location

Retailer stores are generally set up at locations which are convenient for consumers to reach. A retail store
can be of various forms such as it could be a small shop, small store, or a multiplex. Goods can be sold
through internet and mobile apps as per the convenience of consumers. Moreover, shopping online is
becoming a new trend because of the advancement in technology and courier services. Therefore, more and
more companies are taking their business online where customers can view products at the comfort of their
home and buy them.

4. Retailing is an integral part of modern society.

People highly depend on retail stores to lead a comfortable life. In the past time, goods and service were
made available through the process of trading. But in present times trading is replaced by buying and selling
goods which makes retail stores an important part of the society.

5. Retail businesses contribute to the economy

In many countries, the retail business is one of the biggest contributors to the Gross Domestic Product
(GDP) and its contribution has increased as compared to past and is also increasing by leap and bounds.
Retailing is a driving force of the economy and its ambition is to encourage sustained growth.

6. Retail dominates the supply chain

In a supply chain, goods and services flow from the manufacturer or a service provider to final consumers
and when there is a huge number of consumers and they are distributed worldwide then the role of retail
stores become much more important. Retailers play the role of a connecting link between a manufacturer and
final consumers. Because of their crucial importance in the supply chain the structure of retail stores has
improved gradually over the years.

7. Retail is interdisciplinary

Retailing has developed from a number of interrelated disciplines such as economics, geography,
management, economics, and marketing. Economics is useful to manage the finances of a store. The good
knowledge of geography is important to make the right choice of location to open a store. Management plays
an important role in managing your staff and inventory and similarly, right marketing helps you to penetrate
in the market.

8. Retailers provide maximum employment

At the present time, the retail world employs maximum people. As per an estimation, one in nine of the
workforces is employed in the retail industry. Moreover, two third of the total workforce in the retail world
is women and more than half employees in retailing are part-time employees, which provides flexibility
to

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workers to adapt to the particular needs of any employer. In the past, the salaries paid to employees were
very low. Therefore, people worked on a temporary basis in the retail sector.

9. Retailing is an important subject area of study

Because of the importance of retailing more and more emphasis is being paid to the area of retailing.
Retailing is a separate subject of studies like management and marketing researches have been conducted
and professionals being hired to make this sector flourish.

10. Retailing offers scope for expansion in other countries

Retail provides a great opportunity to expand in international markets. A retailer who wants to extend their
business by selling their goods in other countries opens stores in different countries to increase the number
of consumers of their products.

11. Retailers rule the channel of distribution

Retailers are becoming the rulers of a channel of distribution. In past times, the power was in the hand of
suppliers because of a limited number of suppliers in the market. Retailers had no other option than getting
goods from the supplier to sell in their stores. But in present times there are many suppliers for a single type
of product.
12. Provides Comfort and facilities for shopping

Shopping has become a pleasant experience because of all the facilities and comfort provided by chain
stores, shopping malls, multiplexes, etc. people now don’t think shopping as work but they look forward to it
and consider it as a stress releasing and family activity. The giant retailers provide various facilities such as
air conditioning, parking, entertainment, kids play section, lifts, trolleys to carry goods, and food facilities,
etc. and retailing through mobile phones ensures doorstep delivery on all orders placed through the website
or mobile apps.

13. Provide services to the manufacturer

The retailer is the end part of the supply chain and he is the one who interacts with the customers. Therefore,
he has the opportunity to know about the views of customers and their likings and disliking. Retailer gathers
this information from his customers and shares it with the manufacturer.

14. Advantage of an expert and specialist

Retailers are experts and have experience in selling products to customers. he has a better understanding of
customers and their likes and dislikes because of this regular contact with them. He stores products as per the
need of customers and sells them to customers in different sizes and shapes.

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15. Creates utilities and value

Retailer increases the value of the product by creating a place, time, and utility in the distribution of goods.
Retailers buy products in bulk and break them in small quantities and sell them in small packs. In this way,
he creates form utilities.

Goods manufactured in one corner of the world are consumed in other parts of the world. he buys products
from manufacturers and sells them in the local market thereby creating place utility.

The retailer buys products in advance and place them in his store and sell them to the consumers whenever
the need arises. By creating these three utility value of goods is increased. The retailer makes sure the
regular production and consumption of goods.

1.3 Different Types of Retail Stores

Today, consumer can shop for goods and services in a wide variety of stores. The important types of retail
stores are:
1. Specialty store
2. Department store
3. Super market
4. Convenience store
5. Discount store
6. Off-price retailer
7. Superstore
8. Hypermarket
9. Catalogue showroom

Specialty Stores:
A specialty store refers to a store that stocks a particular type of merchandise or single product of durable
goods like furniture, household goods, consumer electronics etc. Such a business model is characterized by a
high level of service or product information being made available to customers. Specialty stores concentrate
on a limited number of complementary merchandise categories.
These are characterized by a narrow product line, with product depth concentrating mostly on jewellery,
apparels, furniture etc.
Specialty stores tailor retail strategy toward very specific market segments by offering deep but narrow
assortments and sales associate expertise. Examples of specialty stores in India include retail chain like
Victoria Secret, Apple, Pedigree etc.

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Department Store:
Department stores are retailers that carry a broad variety and deep assortment, offer customer services, and
organize their stores into distinct departments for displaying merchandise. They are large scale outlets, often
multi levelled that offer clothing, accessories, cosmetics, household goods etc. from more or less separate
departments on different floors.
Traditionally, department stores attracted customers by offering a pleasing ambience, attentive service, and a
wide variety of merchandise under one roof. They sold both soft goods and hard goods. But now most
department stores focus almost exclusively on soft goods. Each department within the store has a specific
selling space allocated to it, as well as salespeople to assist customers. The department store often resembles
a collection of specialty stops. Examples of such stores are Shopper’s Stop, Globus, Westside, Lifestyle etc.

Supermarkets
A conventional supermarket is a large, self-service retail food store offering groceries, meat as well as some
non-food items such as health and beauty products and general merchandise. Supermarkets are usually
characterized by large, low cost, low margin, high volume self-service market designed to meet the food and
non-food items needs of the customers. Typically, the supermarket has a selling area between 400 sq. m. and
2,500 sq. m, selling at least 70% of its merchandise comprising of foodstuffs and everybody commodities.
An example of supermarket is SMART BAZAAR.

Convenience Stores:
These are relatively small store located near residential areas that are open for long hours,
throughout the week offering a limited variety of convenience products especially groceries.
These stores are in busy areas where people would most likely drop by to get a few things
they would need quickly.

Discount Store:
A discount store sells standard merchandise at lower prices. Higher volumes of sales compensate lower
margins and increase the overall profitability. Discount retailing has moved into specialty merchandise stores
such as sport goods stores, e

Here, the merchandise is sold at costs lower than that at retail stores. Off-price retailers purchase
manufactures’ seconds, overruns or off seasons at a deep discount. The merchandise that is offered in these
stores may be in odd sizes, colours may be unpopular or with some minor defects. They offer an inconsistent
assortment of branded goods at low prices. Off-price retailers may be of three types.
1. Factory outlets
These are owned and operated by manufacturers. They carry the manufacturer’s surplus, discontinued or
irregular goods. e.g. , dinner ware, shoes, upscale apparel, etc.
2. Independent off price retailer
Independent off-price retailers are owned and run by entrepreneurs or by divisions of larger retail corporations.

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3. Warehouse clubs
These are otherwise known as wholesale clubs. They sell a limited selection of brand-name grocery items,
appliances, clothing etc.
4. Super store:

Super stores meet consumers’ total needs for routinely purchased food and non-food items.

Hypermarkets:
Hyper markets originated in France. Hyper markets combine specialty stores, limited line stores in a single
level store. Product assortment goes beyond routinely purchased goods. It includes furniture, large and small
appliances, clothing items, etc. Bulk display and minimum handling by store personnel are the other features
present in the hyper markets. Discount is offered to customers who are willing to carry heavy appliances and
furniture out of the store.

Catalogue Showroom:
Catalogue retailers are the ones who specialize in house ware, consumer electronics, jewellery etc. Here the
customers come and place the order through a catalogue of the products that he would like to buy and then
arrangement is done to bring the product from the warehouse for inspection and purchase.

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1.4 INDUSTRY PROFILE
OVERVIEW OF INDIA’S RETAIL INDUSTRY
Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences
varying by each region necessitating a need for localization even within the geographic zones. India has
highest number of outlets per person Indian retail space per capita at 2 sq ft per person is lowest in the world
Indian retail density of 6 percent is highest in the world. 1.8 million households in India have an annual
income of over ₹4.5 million.
The organized retail market has a share of 8% as per 2012. While India presents a large market opportunity
given the number and increasing purchasing power of consumers, there are significant challenges as well
given that over 90% of trade is conducted through independent local stores. Challenges include:
Geographically dispersed population, small ticket sizes, complex distribution network, little use of IT
systems, limitations of mass media and existence of counterfeit goods.
A number of merger and acquisitions have begun in Indian retail market. PWC estimates the multi-brand
retail market to grow to $220 billion by 2020.
The organizational structure of a retail store will vary by the size and type of the business. Most tasks
involved with operating a retail business will be the same. However, small or independent retail stores may
combine many sectors together under one division, while larger stores create various divisions for each
particular function along with many layers of management.
For example, the small specialty shop may have all of its employees under one category called Store
Operations. A large department store may have a complete staff consisting of a manager, assistant manager
and sales associates for its Sporting Goods department, Home and Garden, Bed and Bath, and each
additional department.
In order to define the store's organization, start by specifying all tasks that need to be performed. Then divide
those responsibilities among various individuals or channels. Group and classify each task into a job with a
title and description. The final step is to develop an organizational chart.
Retailing Structure:
The following is a brief outline of some of the divisions in retail organization.
• Owner/CEO or president
• Store Operations: Management, Cashier, Sales, Receiving, Loss Prevention
• Marketing: Visual Displays, Public Relations, Promotions
• Merchandising: Planning, Buying, Inventory Control
• Human Relations: Personnel, Training
• Finance: Accounting, Credit
• Technology: Information Technology
stores create various divisions for each particular function along with many layers of management.
For example, the small specialty shop may have all of its employees under one category called Store
Operations. A large department store may have a complete staff consisting of a manager, assistant manager
and sales associates for its Sporting Goods department, Home and Garden, Bed and Bath, and each
additional department.

14
In order to define the store's organization, start by specifying all tasks that need to be performed. Then divide
those responsibilities among various individuals or channels. Group and classify each task into a job with a
title and description. The final step is to develop an organizational chart.
Retailing Structure:
The following is a brief outline of some of the divisions in retail organization.
• Owner/CEO or president
• Store Operations: Management, Cashier, Sales, Receiving, Loss Prevention
• Marketing: Visual Displays, Public Relations, Promotions
• Merchandising: Planning, Buying, Inventory Control
• Human Relations: Personnel, Training
• Finance: Accounting, Credit
• Technology: Information Technology

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1.5 COMPANY PROFILE
Company Profile of SMART BAZAAR

Introduction:
SMART BAZAAR is a household name that is used synonymously with ‘retail’ in India. We represent the
requirements of a typical Indian home. Founded in 2001 by Kishore Biryani, we as a retail chain operate
under the parent organization – Future Group – that holds a significant prominence in the Indian retail and
fashion sectors.
SMART BAZAAR is one of the oldest hypermarket chains that houses around 250+ stores in the country.
We cover three essential categories in Indian retail: home, food, and fashion. Popular retail chains – like the
Food Bazaar and fb form an integral part ofr’s ty. The latter (i.e. fbb) has exponentially grown into a major
brand that epitomizes fashion in India.
In spite of covering a wide gamut of consumer essentials at reasonable prices, we are best known for our
understanding of our customers’ evolving needs and comforts. In a fast-paced world, we are perceived as a
thought leader who relies on traditional Indian values of seva or ‘care for the customer’ while remaining
firmly futuristic in taking business decisions that fuel better quality and efficiency.
SMART BAZAAR is not just another hypermarket; it caters to every need of your family. Where SMART
BAZAAR scores over other stores is its value for money proposition for Indian customers. We guarantee the
best products at the best prices. With the ever-increasing array of in-house brands, we have opened doors in
the world of fashion and general merchandise, including home furnishings, utensils, crockery, cutlery, sports
goods and much more at prices that will surprise you. And this is just the beginning.
SMART BAZAAR is a name renowned in Retail. It is now a brand image in private retail sector. Wal-Mart
is the retail stores of USA and is known all over the world for its fashionable and affordable materials and is
known as one of the best in its field, SMART BAZAAR can be said as the Wal-Mart of India running a
chain of more than 100 retail stores in India.

People around the country thinks that SMART BAZAAR is inspired from Wal-Mart and it is quite obvious
to think as Wal-Mart is world leading chain of retail shopping but actually the idea of SMART BAZAAR
came to the CEO Kishore Biyanifrom a 25 years old store "Saravana" which was owned by a family and
worked on the philosophy of "low margin high turnover".

Following its slogan of "isse sasta or achha kahin nahi"(Meaning cannot find cheaper and better than this
anywhere) it provides the consumer with the best of the materials at a rate less than rest of the market.

SMART BAZAAR is the subsidiary of Future Group, Pantaloons Retail

India ltd. The brain behind SMART BAZAAR is the CEO of Future Group

Mr. Kishore Biyani

Future group is has various brands like Pantaloons, F123, Copper Chimney, Etam, Staples, One Mobile,
Urbana, Brand Factory, LootMart, HomeTown and Central. SMART BAZAAR covers all parts of India
including the metro cities Kolkata, Delhi, Chennai, and Mumbai.

SMART BAZAAR started with its first store in Kolkata, west Bengal in 2001 and now owns more than 100
stores all over India making itself the fastest growing retail chain in India and leaving all its competitors
behind.

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1.6 Marketing Mix of SMART BAZAAR
Marketing mix refers to actions or tactics that a company uses to promote its brand or product in the
market to the right people at the right time. The model focuses on the 4P’s of marketing: Product, Price,
Place and Promotion which forms the conceptual core of an overall marketing strategy.
So let us go through the marketing mix model of SMART BAZAAR in detail and look at the parameters
one by one in the coming section.

 Product Strategy of SMART BAZAAR

SMART BAZAAR offers a wide variety of products under one roof, ranging from apparel, food, fresh
produce, toys, furniture, and essentials. This allows SMART BAZAAR to expand its customer base and
recover any losses from one product category with the benefits from another product category.
SMART BAZAAR sells a variety of products under its name through brand names such as Tasty Treat,
Clean Mate, DJ & C, etc.

 Price Strategy of SMART BAZAAR

SMART BAZAAR promises its consumers high-quality products at low prices. Moreover, it offers
discounts all year round and creates special sales and campaigns during festivals (Durga Puja, Diwali, etc) to
encourage bulk buying.
SMART BAZAAR conducts sale days at least 4 times a year and has incorporated the E-Wallet Future
Pay which acts like a customer loyalty program through which customers can earn and redeem points at
any of the Future Group stores.
SMART BAZAAR also uses bundling tactics by offering products at a discounted rate when bought in
combos to generate sales.

 Place Strategy of SMART BAZAAR

SMART BAZAAR’s presence in different geographic locations has ensured easy accessibility and reach
to their target market. SMART BAZAAR aims at starting departmental stores in developing areas besides
investing in the metropolitan cities to have a head start against their competitors. SMART BAZAAR
generally targets key semi- urban areas.
With a strong market hold offline in tier 1 and tier 2 cities (before the pandemic), SMART BAZAAR is
looking to expand its customer base online and gain momentum in e-commerce transactions.

 Promotion Strategy of SMART BAZAAR

With huge budgets, the promotional strategy of SMART BAZAAR is to promote itself to create brand
awareness targeted to building an image for low-cost shopping options. The company opts for print and
advertising media to promote itself in the form of newspaper ads, magazines, billboards, TV commercials
or radio.
SMART BAZAAR leverages social media campaigns as its main channel for online marketing and e-
commerce. It has tie-ups with various E-Wallets (PhonePe, GooglePay, Paytm) to offer additional discounts
and cashback to its loyal customers.
For increasing brand loyalty, value-added cards and coupons are given to consumers.
This is how SMART BAZAAR maintains its position as a market leader with affordable products while
ensuring accessibility and quality.
17
1.7 Marketing Strategies and Marketing Campaigns of SMART BAZAAR

Successful retail stores such as SMART BAZAAR can predict market trends and can help develop
products and services to sustain those trends using campaigns and marketing strategies to meet the
expected needs and demands of the customers.
Most of the campaigns or advertising strategy of SMART BAZAAR has been around the theme of offering
products for less than the Maximum Retail Price (MRP).
Some of the marketing campaigns of SMART BAZAAR and marketing strategies of SMART
BAZAAR are mentioned below:

 Wednesday Bazaar – “Hafte ka sabse sasta din”

Discounts are offered all year round at SMART BAZAAR but every Wednesday, special discounts are
offered on categories like apparel, food, toys or electronics to acquire more walk-in customers on
weekdays.

 The Great Exchange Offer – “junk swap”

The Great Exchange Offer campaign is a “junk swap” wherein customers can exchange any old and broken
items (junk) and get new products at a discounted price from SMART BAZAAR – quite in tune with the
Indian mindset of getting value even for junk.

Influencer Marketing

SMART BAZAAR brought in various celebrities to endorse their brands. These celebrities included cricketers
like
M.S. Dhoni and Shikhar Dhawan, actors & actresses like Varun Dhawan, Sakshi Tanwar, Asin and Katrina
Kaif. The aim was to boost sales from fan-following and increase brand appreciation and perception.
Marketing strategies in SMART BAZAAR help increase the footfall of the store. Customers are attracted
to discounts, schemes & sales. Various product lines also give the customers options to choose from.

Online Presence of SMART BAZAAR

With about 65% of India’s population shopping online for clothes, essentials and food, the “offline-to-
online” project was a long time coming for SMART BAZAAR. SMART BAZAAR launched its
mobile application to facilitate online shopping from local stores in August 2018 and has built its
online presence leaning on various social media platforms (Facebook, Instagram, Twitter).
The unprecedented lockdowns due to the Covid-19 pandemic and travel restrictions further pushed their
cause for home deliveries as consumer preferences and market needs have changed drastically in the last 18
months.
Today, SMART BAZAAR competes with other e-retailers like Amazon, Grofers and Big Basket in
the “home delivery in two hours” segment and has extended this service in more than 100 cities.
While delivery of non-essential retail products through online channels was not permitted in many places
during the lockdown period, SMART BAZAAR, like most online platforms and marketplaces has kicked
off discounts and offers and advanced their sale periods in various product categories to tap the Un-
lockdown momentum.
18
Competitors’ Analysis of SMART BAZAAR

The Indian retail industry is a fast-growing segment in the digital world. The Covid-19 pandemic has only
pushed the envelope further. The most popular and well-known names in the Retail market that SMART
BAZAAR is competing against include DMart, Grofers, BigBasket, Amazon, Reliance Mart.
SMART BAZAAR is a well-established Reliance Industries Limited & Amazon India are going head
to head in acquiring the Future Group (The company that runs SMART BAZAAR and its sister stores
in India) in a legal context.
The following are some of the reasons why SMART BAZAAR is more popular than any other supermarket
chain in India:
 In comparison to its competitors, SMART BAZAAR has a higher brand loyalty due to its entry
before any other supermarket chain in the Indian subcontinent – it was the first of its kind on such a
grand level.
 The quality of the products sold in SMART BAZAAR is higher. Brands of SMART
BAZAAR add value to the purchasing items.
 SMART BAZAAR engages in a ‘family shopping’ experience’ i.e., shopping for all age groups
under one roof.
 SMART BAZAAR has departmental stores located in malls which increases their footfall
significantly in comparison to its competitors that have just stand-alone independent stores.
 Resources from the Retail Industry say that while the competitors of SMART BAZAAR complete
3,00,000 to 5,00,000 orders daily, the order value per transaction is lower (₹500-₹600) when
compared to that of the SMART BAZAAR shoppers who spend almost twice that amount (₹1000-
₹1200).
 According to the reports and projections, there is a chance of the growth rate increasing by 9% in the
year 2021.
With that being said, this case study on the Business Model of SMART BAZAAR comes to an end.

1.8 WHY SMART BAZAAR?

Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are
fighting to win the hearts of customer. There is always a 'first mover advantage' in an upcoming sector. This
advantage goes to "SMART BAZAAR" in India. It has brought about many changes in the buying behavior
of people as SMART BAZAAR provides all items in one roof at low rates.

The consumer's preferences are changing & they are moving from shops stores to Modern Retail outlet. It's
the main challenge to the Modern retail outlets to attract the customers towards them from that of
competitors. To attract more customers companies have to carry out the promotional activities in unique
way. SMART BAZAAR has maintained that uniqueness & has succeeded in attracting customers.

The promotional activity of the company, which famous as Less Price than others as it says'Nobody Sells
Cheaper and Better!'is made its place in minds of customer. As the competition is becoming stiff in the
19
market the activities conducted by the company are unique, that have brought fruitful result to the company.
Among them sales Promotions is one of the leading activity or unique among all other activities & has high
influence on the customer walk-in.

OBJECTIVES:

 To know the effective marketing strategy which influence customer to purchase a product of
SMART BAZAAR.
 To know the marketing and promotional strategy of SMART BAZAAR.
 How SMART BAZAAR Establish and maintain its position in retailing through promotion.

Strategy:
3-C Theory
According to Kishore Biryani‘s 3-C theory, Change and Confidence among the entire population is leading
to rise in Consumption, through better employment and income which in turn is creating value to the
agricultural products across the country. SMART BAZAAR has divided India into three segments:
1. India one:

Consuming class which includes upper middle and lower middle class (14% of India's population).
2. India two:

Serving class which includes people like drivers, household helps, office peons, liftmen, washer men, etc.
3. India three:

Struggling class (remaining 31% of India's population).

Schemes and innovations.

Wednesday Bazaar:
The concept of Wednesday Bazaar was promoted as-“Hafte Ka Sabse Sasta Din” (Cheapest Day of the
Week). Initiated in January 2007, the idea behind this scheme was to draw customers to stores on
Wednesdays, the day when consumer presence is usually less. According to the chain, the aim of the concept
was to give homemakers the power to save the most.

Maha-Bachat:
The concept of-“Maha-Bachat” (Mega Saving) was introduced in the year 2006 as a single day campaign
with attractive promotional offers across the company outlets. Over the years, the concept has grown to
become a six-day biannual campaign. During this campaign, attractive offers are given in all the value
formats including SMART BAZAAR, Food Bazaar, Electronic Bazaar and Furniture Bazaar.

The Great Exchange Offer:

Introduced on February 12, 2009, The Great Exchange Offer it allows customers to exchange their old goods
for SMART BAZAAR coupons. The coupons can be redeemed later for buying brand new goods from
SMART BAZAAR outlets across the nation.

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1.9 SWOT Analysis:-
The SWOT analysis of SMART BAZAAR discusses the strength, weaknesses, opportunities and threats for one of the
major retailers of India – SMART BAZAAR.

Strengths:-

 Strengths in the SWOT analysis of SMART BAZAAR

 High brand equity enjoyed by SMART BAZAAR

 State of the art infrastructure

 A vast variety of stuff available under one roof

 Everyday low prices, which attract customers

 Maximum percent of footfalls converted in sales

 Huge investment capacity

 Biggest value retail chain in India

 It offers a family shopping experience, where entire family can visit together.

 Available facilities such as online booking and delivery of goods

Weakness:-
 Weaknesses in the SWOT analysis of SMART BAZAAR

 Unable to meet store opening targets on time

21
  Falling revenue per sq ft

 General perception: ‘Low price = Low quality’

 Overcrowded during offers

 Long lines at billing counters which are time consuming

 Limited only to value offering low price products. A no of bran branded products are still
missing from SMART BAZAAR’s line of products. E.g. Jockey, Van heusen,

Opportunities:-
 Opportunities in the SWOT analysis of SMART BAZAAR

 A lot of scope in Indian organized retail as it stands at approximately 4%.

 Increasing mall culture in India.

 More people these days prefer to visit big stores where they can find large variety under one roof

Threats:-
 Threats in the SWOT analysis of SMART BAZAAR

 Competition from other value retail chains such as Shoprite, Reliance (Fresh and trends),
Hypercity and D mart.

 Unorganized retail also appears to be a threat to SMART BAZAAR’s business. A large

population still prefers to visit local convenient stores for daily purchases

 Changing Government policies

 International players looking to foray India

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SWOT analysis of SMART BAZAAR shows that indeed there are much strength like brand equity, highly
discounted products and the variety of products that are available under one roof. It has also very high
opportunities to expand its business geographically as well as in form of the product width. But,
simultaneously analysis also shows that there are many weaknesses and threats to this retailing tycoon. There
is an old phrase that “popularity is not always fruitful”, as it has been a case with SMART BAZAAR. It
remains over crowded during offer hours, there are time consuming long lines on bill counters. Some
consumers also think that the cheap products in SMART BAZAAR are perhaps of low quality, that‟s why
they do not purchase from SMART BAZAAR. Besides its sales and marketing strategies, it is facing threat
from its rivals also like Reliance and Bharti etc. Wal-Mart has entered into India and the old problem of huge
unorganized sector still persists.
Pest Analysis
Political
• Government is stable.
• Government policy towards investment is liberal (49%).
• Labor law & Restriction for MNC‟s.
• Properties of taking over properties and real estate.
• Problems of getting subsidy from Octroi Duty (local tax) and on different taxes like Land, Water etc.
• A stable government at the center facilitates speedy economic recovery and creates an encouraging
investment climate.
Economical
• Economy is growing (7.2%).
• Almost Recovered from Recession.
• India one of the fastest growing economies.
• Retail industry to grow with an increase in income of people.
• Increase in percentage of service contribution to GDP.
• Stable even during recession & Growth stage: High revenue but high expenditure on
promotion. Socio-Cultural
• Increase in nuclear families.
• People prefer to shop in local store with reasonable price.
• Increase in working women proposition.
• Life style changes gradually.
• Shift in product and service preferences.
• Increase in young population (currently 35%).
Technological
• Rapid expansion of IT sector.
• Technological development for faster service.
23
• Better application of IT in the modern retail industry, like in Supply Chain Management, Store
Management and Customer Relationship Management.
• Electronic billing.
• Use Enterprise Resource Planning Module for handling inventory and finance.

PEST Analysis generally scans the subject by four aspects i.e. Political, Economical, Socio-Cultural and
Technological aspect. Every aspect seems favorable to SMART BAZAAR. Political stability, growing
economy, favorable changing population demographics and technologically booming industry seems to take
retail industry of India beyond par within a short span of time. Developing economy and a huge chunk of
young population i.e. currently 35% are the two strengths for SMART BAZAAR. Huge working force acts
as an easily available human resource as well as customers for SMART BAZAAR. Increasing efficiency in
Supply Chain Management and Customer Relationship Management due to technological advancement in IT
sector helps SMART BAZAAR to fulfill the needs of customers in time and with greater satisfaction. But,
there is a big threat i.e. the advantages that the SMART BAZAAR is enjoying, they are same for its
competitors also like Reliance, Aditya Birla Group and Bharti etc.

1.10 Awards and Recognitions

The Company and its formats received awards in categories like:
SMART BAZAAR  SMART BAZAAR ranked among the most valuable brand by Interbrand;
 SMART BAZAAR ranked as one of India’s top 50 Brands in ninth edition of Pitch Top 50 brands
exchange4media;
 SMART BAZAAR’s Cook Along Won Gold in Exchange4Media: Maddies of the Year 2019 for the use
of rich media and interactive content;
 SMART BAZAAR’s Food YouTube Channel Won : Silver Play Button;
 SMART BAZAAR Profit Club wins accolades at the Customer Fest Leadership Awards 2020 for:  Best
Card based loyalty program in India;  Best use of contents / promotions in a loyalty program.
 SMART BAZAAR Wins The Universal Design Award For Making Its Stores Accessible For Shoppers
With Disability;
 SMART BAZAAR Wins the most admired VM of the year (food) at Coca Cola Golden Spoon Awards
2020;  SMART BAZAAR won the most inclusive retail brand of the year for its “Sub Ke Liye Initiative”
at ET Now Awards for Global Retail Excellence. fbb (Fashion @ SMART BAZAAR)
 Social Samosa – Sammie Award for:  National Jeans Day (Best Use of SM to generate leads or drive
revenues);  500 Festive Stories (Best Use of Influencers).
 Afaqs! Foxglove Award for 500 Festive Stories (Best Use of Influencer Marketing);
Adgully Digixx Award for:  500 Festive Stories (Best Use of Content Marketing: Retail Sector);  World
Shorts Day (Best Use of Social Media).
 IAMAI’s IDA Award for National Jeans Day (Best Lead Generation Campaign Through Mobile);
 #PujoPerfect Love Story First brand in the world to create a unique interactive web series on Instagram
Stories by Facebook Case Study. Easyday
24
 Easyday Club Wins the following awards at Coca Cola Golden Spoon Awards 2020:  Most admired small
/ mid format retailer of the year;  Most admired innovation of the year. Foodhall
 Foodhall @ Linking Road won the award for best store in the food groceries & general merchandise
category at ET Now Awards for Global Retail Excellence.

1.11 IMPACT OF COVID – 19

In the wake of the novel coronavirus (COVID-19) outbreak, most of the stores of the Company, in most of
the States, were closed except selling only essential commodities and grocery items as directed by Local and
State Government offices. The business of the Company is adversely affected by temporarily shut down of
stores, de-growth of revenue, sizable drops in footfalls and selective spending on essentials only by the
Customers.

Further, the Company’s maximum staff except connected with essential services, were working from their
respective residence under “work from home policy” implemented by the Company. The countrywide
lockdown began towards the latter half of March, 2020 and continued through the end of May, 2020. During
this period, more than half of our stores remained closed for operations due to regulatory instructions and
stores that were open, operated for restricted hours. Customer footfalls were significantly lower and as per
directives of the authorities.

The Company is also leaving no stone unturned in redefining workplace hygiene. The Company has
implemented new standards of safe working with guidelines for social distancing. Face masks were
mandatory for all employees and customers visiting our premises. We also ensured regular sanitisation of all
our premises and adequate availability of sanitising material. Similar protocols have been created for safe
customer engagements.

We also commenced servicing our customers through several new channels of delivery to provide them all
essential goods through on-line apps. COVID-19 pandemic and consequent lockdown imposed throughout
the country, has had a significant adverse impact on the business operations and the financial results of the
Company. The Company has assessed the impact of the lockdown, on its business operations and financial
status and has considered all relevant information available up to the date of approval of these financial
results, in determination of the recoverability and carrying value of its financial assets and non-financial
assets. The impact of COVID-19 pandemic and consequent global slowdown of business and uncertain
overall economic environment may affect the underlying assumptions and estimates used to prepare the
Company’s financial results, whereby actual outcome may differ from those assumptions and estimates
considered as at the date of approval of these financial results.

The Company will continue to closely monitor any material changes to future economic conditions and to
take various precautionary measures to ensure health and safety of its customers, employees and other
stakeholders from COVID-19 pandemic.

25
1. 12 BALANCE SHEET AS AT MARCH 31, 2020

Parameter MAR'19 MAR'18 Change %

(₹ Million) (₹ Million)

Sales Turnover 2,01,649.00 1,84,780.00 9.13%

Other Income 204.70 116.70 75.41%

Total Income 2,01,854.00 1,84,896.00 9.17%

Total Expenses 1,91,280.00 1,76,456.00 8.40%

Operating profit 10,573.80 8,439.90 25.28%

Gross Profit 8,334.00 647.40 1187.30%

Interest 2,239.80 1,753.80 27.71%

PBDT 6,094.20 -1,106.40 650.81%

Depreciation 0.00 0.00 0.00%

PBT 7,328.10 113.10 6379.31%

Tax 0.00 0.00 0.00%

Net Profit 7,328.10 113.10 6379.31%

Earnings Per Share 14.58 0.23 6239.13%

Equity 1,005.20 1,004.00 0.12%

Preference Capital 0.00 0.00 0.00%

Reserves 37,514.30 29,958.70 25.22%

Face Value 2.00 2.00 0.00%

26
1.13 Profit & Loss Statement:-

Parameter MAR'18 MAR'17 Change %

(₹ Cr.) (₹ Cr.)

Gross Sales 20,106.14 17,980.46 11.82%

Less :Inter divisional transfers 0.00 0.00 0.00%

Less: Sales Returns 0.00 0.00 0.00%

Less: Excise 0.00 0.00 0.00%

Net Sales 20,106.14 17,980.46 11.82%

EXPENDITURE:

Increase/Decrease in Stock -681.87 -378.57 -80.12%

Raw Materials Consumed 14,422.55 13,212.92 9.15%

Power & Fuel Cost 264.79 252.43 4.90%

Employee Cost 929.95 803.44 15.75%

Other Manufacturing Expenses 123.23 127.43 -3.30%

General and Administration Expenses 1,750.12 1,716.94 1.93%

Selling and Distribution Expenses 1,964.77 1,278.12 53.72%

Miscellaneous Expenses 429.14 317.36 35.22%

Expenses Capitalised 0.00 0.00 0.00%

Total Expenditure 19,202.68 17,330.07 10.81%

PBIDT (Excl OI) 903.46 650.39 38.91%

Other Income 15.23 23.80 -36.01%

Operating Profit 918.69 674.19 36.27%

Interest 250.08 273.33 -8.51%

PBDT 668.61 400.86 66.79%

Depreciation 53.43 32.58 64.00%

Profit Before Taxation & Exceptional Items 615.18 368.28 67.04%

Exceptional Income / Expenses -603.87 0.00 100.00%

27
 Profit Before Tax 11.31 368.28 -96.93%

Provision for Tax 0.00 0.00 0.00%

PAT 11.31 368.28 -96.93%

Extraordinary Items 0.00 0.00 0.00%

Adj to Profit After Tax 0.00 0.00 0.00%

Profit Balance B/F -125.29 -490.88 74.48%

Appropriations -113.98 -122.60 7.03%

Equity Dividend (%) 0.00 0.00 0.00%

Earnings Per Share (in ₹) 0.23 7.81 -97.11%

Book Value (in ₹) 61.53 53.96 14.02%

1.14 Cash flow statement:-

Parameter MAR'18 MAR'17 Change %
(₹ Cr.) (₹ Cr.)

Net Profit Before Taxes 11.31 368.28 -96.93%

Adjustments for Expenses & Provisions 831.15 236.55 251.36%

Adjustments for Liabilities & Assets -226.47 -399.75 43.35%

Cash Flow from operating activities 600.59 197.03 204.82%

Cash Flow from investing activities -468.91 -75.68 -519.60%

Cash Flow from financing activities -130.47 -88.41 -47.57%

Effect of exchange fluctuation on translation reserve 0.00 0.00 0.00%

Net increase/(decrease) in cash and cash equivalents 1.21 32.94 -96.33%

Opening Cash & Cash Equivalents 128.45 89.49 43.54%

Cash & Cash Equivalent on Amalgamation / Take over / Merger 13.93 6.02 131.40%

Cash & Cash Equivalent of Subsidiaries under liquidations 0.00 0.00 0.00%

Translation adjustment on reserves / op cash balalces frgn subsidiaries 0.00 0.00 0.00%

Effect of Foreign Exchange Fluctuations 0.00 0.00 0.00%

Closing Cash & Cash Equivalent 143.59 128.45 11.79%

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 1.15 SMART BAZAAR - Featured products
and brands Featured products

o Bazaar

o New

o Top

o TV

o Car

o Chocolate

o T-shirt

o Vegetables

o Drone

o Banana

o Table

o Washing machine

o Bluetooth

o Watermelon

o Shirt
Featured brands
o FRESH

o Cool

o Star

o SUN

o Patanjali

o Maggi

o Buffalo

o Lotus

o Surf Excel

o Tide

o Colgate

29
1.16 Company Profile

Company profile of Dmart

About DMart
DMart is a chain of supermarkets run and managed by Avenue Supermarts Limited, established in the year
2002. Initially, DMart started as a single store in the year 2000 with the aim of providing the lowest-priced
goods to consumers among its competitive peers.

Since then it went onto expanding its footprints, providing its customers with an exceptional shopping
experience, confident that they can rely on the quality of its offerings at such discounted prices.
It is owned by Radhakishan Damani who is also one of India’s most respected investors and it is
headquartered in Mumbai, Maharashtra.
Today, DMart has become synonymous with the word “Supermarket” and is also regarded as the “Walmart
of India” as it offers a wide range of product categories right from groceries to clothes as well as
manufacturing and producing some of the products under its brand name.

Category Offerings of DMart

DMart is a listed on the NSE and BSE stock exchanges under the name of ‘Avenue Supermarts’ and is
valued at around 1.95 Lakh Crores. It also has five subsidiaries to its name that work towards the smooth
functioning of DMart and Avenue Supermarts Limited entity as a whole.
Now that we know about DMart as a company, let us now go through the company’s marketing mix model
in detail to get an overall understanding of its offerings.

Marketing Mix of DMart

A marketing mix is a model that a company uses to get its products and services noticed by the right people
at the right time. This model is based on pillars of 4Ps: Product, Price, Place and Promotion. It forms the
conceptual core of an overall marketing strategy.
So let us go through the marketing mix model of DMart by looking at the parameters of Product, Price, Place
and Promotion in the coming section.

Product Strategy of DMart

Talking about the product strategy of Dmart, as previously said, it offers a wide range of products, the
company has segmented its wide range of products into three categories, i.e Foods, Non-foods and General
Merchandise and Apparel.

30
  Under its Foods Category – It offers groceries, staples, processed foods, dairy, frozen products,
beverages & confectionery and fruits & vegetables that contributes close to 52 percentage in
revenues
 Under its Non-foods Category – It offers home care products, personal care products, toiletries and
other over-the-counter products that contribute close to 21 percentage in revenues
 Under its General Merchandise and Apparel Category – It offers bed & bath, toys & games,
crockery, plastic goods, garments, footwear, utensils and home appliances that contributes close to 29
percentage in revenues

DMart also sells a variety of products under its own name through brand names such as D Mart Minimax, D
Mart Premia, D Homes, Dutch Harbour.

Price Strategy of DMart

DMart deeply discounts its merchandise and offers products at less than competitive prices. Thanks to this
strategy, it has succeeded in creating an image as a low-cost retailer and has attracted customers who are
price sensitive.
The company prides itself on being able to provide affordable prices to its customers regardless of whether
they live in urban areas or rural areas.
Its pricing is usually less than the Maximum Retail Price (MRP) except for vegetables, fruits, and medicines.
During festival seasons, these low prices make customers buy products in bulk quantities which results in a
huge volume of sale.
The pricing strategy of Dmart is the major reason why its supermarkets’ chain has been one of the most
successfully operated entities in the country

Place & Distribution Strategy of DMart

DMart is the fastest-growing supermarket retail brand in India. As of 2020, DMart has about 214 stores
present in about 11 states and 1 union territory and is constantly expanding its stores’ footprints.

DMart stores are present in a major part of India which includes a presence in cities like Ahmedabad,
Hyderabad, Banglore, Chennai, Mumbai etc.
All of its stores are strategically placed as this helps the company to gain a competitive advantage as easy
accessibility attracts customers and also leads to proper transportation facility for logistics and operations
related functioning which is very important for the survival during uneven times and to accelerated growth
of the business during the normal times.

It also offers online ordering & delivery as well as takeaway service under its DMart Ready vertical.

Promotion Strategy of DMart

DMart, being the largest multi-brands in India, has been maintaining its positioning as a supermarket
offering products at lower prices.

31
They offer various coupons to reward the customers and employees and thus boost their sales in the market.
Coupons are also allotted to the customers when they meet certain standards of bulk purchases.
For instance, during the festive seasons, they offer 15% off on sweets and various other products. It also
offers goods at 50% off or at one plus one free offer.
The company however doesn’t engage in aggressive marketing promotion but chooses to promote itself
through Newspaper Ads and Outdoor Ads. It also recently collaborated with HDFC Bank and offered
additional discounts on payments done with HDFC Cards.

This is how DMart’s lines up on the parameters of the marketing mix model. Let us now go through its
marketing strategy in the coming section.

Marketing Strategy of DMart

DMart is one such company that doesn’t focus much on marketing itself aggressively unlike most of its
competitors. Rather it has always maintained its Unique Selling Position (USP) of offering goods at less than
Maximum Retail Price (MRP).
Thus, DMart has managed to get a lot of lower price points than its competitors and this is what makes it
stand out when compared to other stores selling the same products.
However, it has involved in aggressive CSR activities and other low-cost promotional activities.

Better School, Brighter Futures! – A CSR Activity Campaign of DMart

DMart is a company committed to supporting its employees and communities through socially responsible
business practices. Through this, DMart aims to make a positive impact on the lives of those who work for
it, as well as the people around them
Through this campaign, it has launched an excellence program at various schools in and around Mumbai that
helps students in understanding things better and aims at creating an ecosystem that allows students to
benefit from better education, mentoring, research facilities as well as networking opportunities.

Promotion via Low-Cost Advertising Mediums

DMart uses both visuals and print advertisements to promote its name. The visual component consists of
hoardings that are displayed in major locations of stores announcing specific product offers.
It also uses newspaper ads that contain information about sales and coupons. These ads utilize pictures of
different products along with descriptions that explain why shoppers should buy them.

Outdoor Ads of DMart

32
 Outdoor Ads of DMart

Newspaper Ads of DMart

Now that we know that DMart focuses more on CSR activities rather than regular marketing campaigns, let
us go through its overall digital presence in the coming section.

Digital Presence of DMart

Although DMart has one of the strongest offline presence among all major retailers, the retail giant has
avoided creating a digital footprint because it doesn’t believe it needs one.
Today, digitalization has become a necessary component for any successful brick and mortar or e-commerce
store and Dmart moving forward should embrace the idea of digitalization as part of its overall strategy for
growth.
However, the company has taken various steps on the improvements on digital fronts such as by installing
chatbot on Facebook Messenger, launching DMart Ready but it has a long way to go.

DMart uses Facebook just to inform and clarify doubts of customers which is great but this translates to
underutilization of social media. It is not present on Instagram and Twitter which is a major drawback and
should work on having a healthy presence on these platforms.
Talking about its competitors like Future Retail (the company that runs SMART BAZAAR in India) has
maintained a very strong digital presence. So, DMart should also be focusing on its digital presence to have
an extra advantage.

Now that we have talked about its competitors, let us now run through DMart’s competitors in the coming
section.

33
Competitor Analysis of DMart
The Indian retail segment is one of the fastest-growing and least tapped segment. Overall, the retail market is
highly unorganized and as we know that India is a developing country and the youngest country, it is
observed that the retail segment is something that can become the next big thing.
Companies such as Reliance Industries Limited & Amazon India are going head to head in acquiring the
Future Group (The company that runs SMART BAZAAR, Brand Factory stores in India).

Recently, Tata’s have announced their arrival in the retail segment with the acquisition of Big Basket.
Whereas Flipkart, Grofers are all focusing on the penetration of the grocery segment.

With DMart being one the most well-established company in this segment business-wise, it needs to work on
its digital marketing part to give maintain the loyalty of its customers.
With that being said, this case study of DMart comes to an end, let us conclude things in the final section.
Conclusion
DMart strives to give its customers the best quality at a low price by leveraging its financial strength,
valuable real estate assets located in various parts of the country as well as its extensive network of
distribution facilities. This has helped it become one of the most successful retail companies in India.

1.17 HISTORY OF DMART

Dmart was founded in the year 2002 by a 45-year-old Radhakrishnan Damani at a point when he already
made his millions in the market. When Damani founded Dmart, he was already a legendary name in Indian
stock markets or Bombay Stock Exchange. Moreover, he picked up several value stocks and seen them as a
rise to stratospheric valuations for the new company, including Gillette and HDFC Bank. He dropped out of
a commerce degree after the first year in the graduation, and he first joined his father’s ball bearings business
after quitting studies but had started investing in stocks when he was 32 years old. Hereby, he ended up
becoming one of the biggest stock investors of the 90s, and the current stock market investor Rakesh
Jhunjhunwala considers him to be the best mentor of all time.

But after a full packed successful stock market career in investing for consumer-facing companies,
Radhakishan Damani decided to start his own work and he founded the supermarket chain Dmart in the year
2002. Moreover, he adopted strategies that were unique to the Indian retail market. Afterward, most retail
chains leased their stores for their market and Dmart chose meticulously to do its research and owned its
own stores outright in various corners around India. That strategy seems to have worked for Dmart and from
that day they never had to shut down a store, it’s opened in all the years of its operation in various places.
While other retail players in the market time to the time change and forayed into other categories, including
electronics and fashion, Dmart remained simply focused on its core food and grocery business in the market.

34
Apart from that, when other supermarket chains are all launching their own private brands for more sales and
in a bid to improve margins, DMart still stocks only third-party products for its grocery.

1.18 Strategies Adopted by D-Mart:

In the beginning, Dmart wants to create an image in the market amongst the masses of a discount providing
a store that offers most of the products from across all major brands. Basically, they want to launch a store
that offers value for money.
For now, most of the people come to Dmart because they will get all things what they need under one roof;
hereby, Dmart stores are operational in high traffic areas and urban cities. They are providing the business
across three formats including Hypermarkets that are spread across 30,000-35,000 sqft. Apart from that,
Dmart Express format that is also spread over 7,000-10,000 sqft and lastly, the Supercenter’s, that are set up
at over 1 lakh square feet are very big business for Dmart. Ultimately, Dmart’s final target audience is the
middle- income group as they like using Discount offers as a promotional tool for luring the customer range
and increasing their sales as well. Moreover, Dmart’s success is mainly focused on three things: All
Customers, Vendors, and their Employees.
Take Customers is their real-time strategy since Dmart is targeting middle-income households, all its real-
time stores are in, or near to, residential areas that are not in malls. Their aim is not to only meet every
consumer’s needs like other competitors, but they wanted Dmart to aspires and meet most regular consumer
needs while providing value for their money in groceries.

Loyal Consumer:
One of the major reasons for Dmart’s dedicated customer base is its low prices for Indian households. For
instance, there is a minimum of a 3% discount on every product off its shelf if you buy it from Dmart.
Ultimately, the store décor of Dmart is simple, even for the ones situated in urban localities like Mumbai.
This does not drive away any positive consumers and they keep returning to busy from the trusted brand
name. This is also coupled with a low price range, which means that bulk buying is a very common
phenomenon, on the demand side of Dmart.

Growth:
Since the time Radhakishan Damani was an investor, he liked the consumer-based business and was seen
investing in similar stocks to grow more. Therefore, Damani always had a strong affinity to start up a
business in the same sector. In the year 1999, when the retailing business was far from reality in India, he
decided to enter the ring of this market with a strong will of winning. He suddenly shocks to everyone and
left the stock market for about six years, and along with his Damodar Mall, took a 5000 soft land for ‘Anna
Bazaar’ franchisee in Nerul, Navi Mumbai and soon, added many more outlets . After two years, they finally
set up Dmart and took over Apna Bazaar which is their own brand.
The early days of their business were all about intensive learning for the market, majorly understanding the
customer’s mindset and accordingly creating a store chain, improving billing systems in India, gaining the
confidence of vendors, etc.

35
1.19 How D-Mart is Profitable?
Well for starters, no matter where it operates, the prices that Dmart offers are 6-7 % lower than its
competition. What lets it achieve such pricing tactics is its operational style.
Out of the all the stores it runs, Dmart owns majority of the properties, which helps them to save a huge
chunk of money on rent.
They also avoid opening stores inside malls unlike other hypermarkets to avoid high CAM (Common Area
Maintenance) charges and highly inflated rents. And since rent is adds in a big way to the operations costs of
a retailer, that burden goes away, and helps Dmart to boost its profits further. This amounts for almost 6-10
% of its sales.
What helps them even more is that, since most D-Mart stores are in the suburbs in the metros and in tier II &
tier III cities, the operational costs remain low.
Other than that, Dmart also saves a good amount of 2-3% from the suppliers by paying them upfront in about
48 hours of delivery, when all other organized retailers, buy goods on credit of 30-60 days.
Unlike bigger retailers, costs are further kept low by keeping a basic and economical layout without any
flashy interior.
Given its size, Dmart also manages to keep its financials at check and grounded too. They have kept their
debts and a bare minimum and have also cut their advertising budgets by 30-40 % in the last couple of years
to save costs.
There is an unsaid rule in the market that – “one must not open any store within a 1km radius of Dmart,
simply because, no one can beat them on prices.”
But honestly, Dmart’s cost efficiency model is practically very difficult to replicate. One a larger scale, it is
not possible for bigger chains to own stores because, it requires huge capital expenditure, and this method is
only affordable till the time you’re a small chain, which is why Dmart is growing slowly.
Using such strategies, Dmart has managed to reach profitability much before any other peers!

D-Mart Ready:
Dmart Ready is the online channel of supermarket - Dmart. With Dmart Ready, You can place order online
through app/website and enjoy everyday low prices on all daily essential products like groceries, snacks ,
beverages , personal care products , home care products etc. from the comfort of your home/office.
Dmart Ready offers two flexible delivery options : Self Pick-up - Order online and pick your order at a
convenient Dmart Ready Pick-up point close to your residence or office for no charge. or Home Delivery -
Order online and get delivery at your doorstep for a fee.

1.20 SWOT Analysis:-

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.

36
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 SMART
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.

Strength:-
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 maximize 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.

Weakness:-
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.
No frills : D Mart follows a no-frills approach where the focus in to cut costs wherever possible. Their
facilities are basic and lack the frills of most upmarket retailers. The customers who come here essentially
look at the low prices of products on offer. So thus the sustainability of this differentiator is questionable.

37
Opportunities:-
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:-
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.
Pillars of DMart:
DMarts success is focused on three pillars Customers, Vendors and Employees.
1. Customers: Since DMart is targeting middle income households, all their stores are in, or close to,
residential areas and not in malls. Their idea is not to meet every consumer need like other competitors,
but instead, DMart aspires to meet most regular consumer needs, while providing value for their money
and since, 90% of these stores are owned directly by DMart, they don’t have to worry about monthly
rentals and their rise, or relocation risk. Additionally, this is helping them build assets on their books. This
also helps to keep DMart well capitalized and debt-light, while its operations generate spare cash. All the
money that is saved using this strategy is eventually offered back to the customers in the form of
discounts.

2. Vendors: The relationships with vendors are the second pillar of their model. Since he comes from
a trader background, his vendor relationships have been his biggest strength. The FMCG industry has a
payment norm of 12-21 days, but DMart pays its vendors on 11th day itself. This helps him stay in
the good books of the vendors and avoids stock outs and since DMart

3. Employees: It is the third pillar of their model. DMart offers good money, flexibility, empowerment,
and relaxed & efficient work culture. They even go on to hire 10th standard dropouts with the right attitude
and commitment.
They prefer hiring raw talent, and then invest heavily in training, to mold them as per their requirement.
Employees are just told once about the value system and policies at D-Mart and then are empowered by
giving them the freedom to operate without somebody constantly looking over their shoulders.
38
There is absolute clarity on what needs to be achieved, but you don’t need to fear targets.

1.21 Strategies for Success of DMart:

A) Strategy 1: Full Ownership of Space: Majority of the known names like SMART BAZAAR, Star
Bazaar, Hypercity, More etc. have a good number of stores located in malls which is rented space. This
is done to benefit from customer footfalls & also because the initial investment is much lesser, since
good malls only give out spaces on rent which is significant and becomes a fixed operational cost
month on month. DMart have their own properties. Over a period of last 10 years, this strategy has made
perfect sense because, now these properties have all appreciated in value and they do not have to pay any
rent, which is usually the most major cost factor for a retailer which resulted in higher margins.
B) Strategy 2: Low Margin and High Volume: FMCG business is based on low margin and high
volume business. The better way to attract the Indian consumers is by offering more discounts. DMart
bought good volume of goods from the distributors and instead of requesting them to extend a credit line
to DMart. They assured Payment of Goods in about 15 days. Other players work usually on a 60-day
credit line. No comparable competitor competes with DMart on this and DMart gets extra margin for quick
cash. Behind the scenes, this fast turnover is what it uses to negotiate with wholesalers and companies for
better prices. This doesn’t mean arm-twisting suppliers though. In fact, payment to most suppliers are
arranged fortnightly. This is among the shortest credit periods in any industry.
C) Strategy 3: Low Private Brands: They offer a lesser array of top brands for a particular product
when compared to other shopping malls. This is because , they contract people to directly manufacture
products. This ensures elimination of distributors and middlemen. Now since, they have volume
bargaining & cash power, they negotiate best margins. Some of which are passed to the customer and
remaining become profits along with better control on the supply chain. Similarly, contrary to other chains, it
does not have private labels, nor does it offer a wide choice of brands in each segment. The focus is
clear: daily consumption goods + known brands only + limited options = ultra-fast turnover.
D) Strategy 4: Elimination of Intermediaries: DMart uses bargaining power to negotiate with top
brands by eliminating distributors. While, the best of brands make an exception for them because the sales
volume is too large to ignore. This strategy has caught up with other retailers too.
E) Strategy 5: Value Based Management and Team: They have a wonderful top management and
employee team. They have developed the unique value proposition for their organization and employees to
perform better which contributed to the growth of the DMart.

F) Strategy 6: Cautious Business Focus: Other retail companies have expanded quickly into multiple
segments with differentiated retail chains, D-Mart’s sales mix is largely limited to food, groceries and daily
products. Categories like high-end electronics, jewellery and watches which companies like Reliance have
forayed into and which make up as much as 25% of Indian consumer spending is something the company
stays far away from. DMart thrives on low margins and, to a certain extent, D-mart is built around
this philosophy. Industry executives call it their three step business model as “Start with low-cost products
that consumers need on a daily basis and that you can sell for slightly below MRP. This allows to rack up a
great inventory turnover ratio. Then use that quick inventory turnover to negotiate better prices with
wholesalers which supports to get low prices”
G) Strategy 7: Different Duckling Approach: Private labels and top-end products bring in higher
margins but saddle companies with inevitably higher inventory turnover. Offering multiple brands of the
same product also leads to similar outcomes, which is why the assortment of products and variety of brands
that one finds at a D-Mart store is often limited when compared to other retail stores. .

39
H) Strategy 8: Assembly Chain of Sales: They want the products are converted into sales as fast as
possible because of this, they are able to avoid the high-stakes, perennial discount game that other
retailers often get trapped in. Customers who walk into a DMart store understand that they are getting a no-
frills approach but also know that most food items and groceries on offer will be 6% to 12% cheaper than
what they will find at other stores. In some cases, certain products will be 10% below MRP.
I) Strategy 9: Regimented Business Model: Much of the company’s focus, as well as comparisons to
Walmart, stems from decision to follow a store-ownership model. The company has spent over Rs 23
billion on acquiring land and buildings but either owns most of its stores or has them on a 30-year long-term
lease. This is, in part, what has forced it to rack
up debt of a little over Rs. 1000 crores; a certain amount of its IPO proceeds have been allocated
towards repaying this debt.
J) Strategy 10: Particular Location as per Density: While competitors head to India’s rapidly-
growing malls because that’s where consumer spending is highest, DMart hasn’t and doesn’t ever plan
on opening a store in a mall. As other retailers are experimenting with a wide range of formats and
geographic locations, D-Mart sticks to what it knows best. It uses one of two formats of stores whose size
is calculated based on location and shopper density. The company is also extremely reluctant to expand
geographically. Until 2014, it had stores only in four Indian states. Over the last three years, it has
expanded into five more states but is still conspicuously absent in the NCR region and other high consumer
spending states like Tamil Nadu. This strategy pays off for the company.
K) Strategy 11: Conscious Pricing Approach: D-Mart operates on pricing and discounts. Consumers
are offered a minimum 3% discount on every product off its shelf, and in some cases the discount is as
much as 10% off MRP. As we will see, it influences all decision-making for the chain.
L) Strategy 12: Lowest Product Inventory Turnover: Profitability in retail is driven by a combination
of profit margins and inventory turnover. With price as the differentiator, profit margins on individual
items will be squeezed (its gross margin is only about half of its competitors). Hence, D-Mart operates
in limited product segments mainly food and groceries. Most other retail chains have expanded into high-
end segments too, but D-Mart has stayed away from them to keep inventories low and inventory
turnover high
Strategy and Success of DMart:
The Case of Retail Chain in India 11 National Institute of Development Administration (during 2012-2016,
inventory turnover was about 11.6 times in a year i.e. its stock was bought and sold an average of 11.6 times
every year).
M) Strategy 13: Diligent Cost Control: It has been another key focus area of DMart. Unlike its peers
in the retail space, DMart has steered clear of exuberant spending on marketing and advertising. It has
simple store plans and has never set up fancy stores in malls or launched multiple formats and categories.
Instead, it moved forward taking measured steps. It owns most of its stores or has them on 30-year long-term
leases. This has brought down costs further as real estate dents revenues to some degree. Besides avoiding
swift and costly expansion strategies to gain market share, DMart has also avoided forking out astronomical
pay packages to top honchos. In fact, it does not hire high profile executives like its competitors.
N) Strategy 14: Low Cost Promotional Methods: DMart advertises mainly about its store openings, and
occasionally about the prices. Also, because the combination of product lines and prices offered by the
store will build habitual visits hence the promotion has a limited role.

O) Strategy 15: Emphasis on Fast Moving Products: The idea behind launching DMart stores was
simple, It cater to the growing middle-class’s daily household needs by purveying groceries, vegetables,

40
electronics and apparel at ultra-competitive prices. On the lines of global retail giant Wal-Mart’s everyday
low prices, DMart also started offering Every Day Low Price and Every Day Low Cost. It proved to be its
biggest unique selling point and till date is the sole reason behind housewives and other bargain hunters
making a beeline for its stores. This has resulted in high inventory turnover, particularly in the food segment
which sees over half the demand, and thus even with low profit margins, the retail chain has managed
to flourish. Further, DMart’s tight and a relatively small assortment has also helped it arrest losses from
wastage.
P) Strategy 16: Stringent Distribution System: Since location is the most expensive and critical
decision in retail, D-Mart ensures it doesn’t burn money by a compact supply chain and staying away from
malls. The concentrated supply chain means not spreading their footprint far and wide. In fact, until
2014, it was present only in 4 states. It follows a policy of opening 75% of its new stores in existing
states or markets. In terms of formats too, it has limited itself just to 2 size formats, and choosing between
them is based on Avinash Pawar and B. V. Sangvikar

NIDA International Conference for Case Studies on Development Administration 2019 (NIDA-ICCS 2019)
12 location and shopper density. While, not being in malls helps the chain to keep retail costs low. It
also believes in owning the retail space so that rental costs are low. In places where owning is not
possible, the store is on 30-year leases.

Q) Strategy 17: Maintaining Loyal Consumers: One of the primary reasons for DMart’s dedicated
customer base is its low prices. For one, there is a minimum 3% discount on every product off its shelf.
Secondly, the store decor is simple, even for the ones situated in urban localities this does not drive away
any strata of consumers and they keep returning. This, coupled with low prices, means that bulk buying is a
very common phenomenon, on the demand side.

1.22 Balance Sheet Statement:-

BALANCE SHEET OF AVENUE MAR 20 MAR MAR MAR MAR

SUPERMARTS (in Rs. Cr.) 19 18 17 16

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 647.77 624.08 624.08 624.08 561.54

41
TOTAL SHARE CAPITAL 647.77 624.08 624.08 624.08 561.54

Reserves and Surplus 10,487.75 4,970.40 4,018.63 3,212.98 950.32

TOTAL RESERVES AND SURPLUS 10,487.75 4,970.40 4,018.63 3,212.98 950.32

TOTAL SHAREHOLDERS FUNDS 11,135.52 5,594.48 4,642.71 3,837.06 1,511.86

NON-CURRENT LIABILITIES

Long Term Borrowings 0.00 125.67 246.00 980.92 908.47

Deferred Tax Liabilities [Net] 48.20 64.07 46.30 51.75 40.09

Other Long Term Liabilities 178.60 0.78 0.78 1.38 18.06

Long Term Provisions 0.00 0.00 0.00 0.00 0.00

TOTAL NON-CURRENT LIABILITIES 226.80 190.52 293.07 1,034.05 966.62

CURRENT LIABILITIES

Short Term Borrowings 3.73 299.15 7.25 122.66 113.49

Trade Payables 445.97 458.28 315.88 266.76 200.47

Other Current Liabilities 257.78 442.47 341.70 533.46 283.71

Short Term Provisions 14.33 12.67 11.85 8.16 5.38

TOTAL CURRENT LIABILITIES 721.81 1,212.57 676.68 931.04 603.05

TOTAL CAPITAL AND LIABILITIES 12,084.13 6,997.57 5,612.47 5,802.15 3,081.53

ASSETS

NON-CURRENT ASSETS

Tangible Assets 5,707.69 4,205.86 3,233.65 2,515.18 2,061.27

Intangible Assets 11.19 10.27 6.20 6.35 4.18

Capital Work-In-Progress 361.94 376.55 147.05 152.89 81.69

Other Assets 16.53 18.10 16.33 27.37 13.65

FIXED ASSETS 6,097.35 4,610.78 3,403.23 2,701.80 2,160.78

42
Non-Current Investments 287.30 212.00 129.50 36.62 16.00

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00

Long Term Loans And Advances 0.00 0.00 0.00 0.00 0.00

Other Non-Current Assets 3,407.21 145.74 133.33 95.63 114.82

TOTAL NON-CURRENT ASSETS 9,791.86 4,968.52 3,666.07 2,834.04 2,291.60

CURRENT ASSETS

Current Investments 0.00 0.00 51.70 0.00 0.00

Inventories 1,909.43 1,576.22 1,147.04 933.16 660.20

Trade Receivables 48.53 75.52 33.36 21.00 8.38

Cash And Cash Equivalents 92.24 213.55 556.46 1,881.31 32.59

Short Term Loans And Advances 0.00 0.00 0.00 0.00 0.93

OtherCurrentAssets 242.07 163.76 157.84 132.64 87.84

TOTAL CURRENT ASSETS 2,292.27 2,029.05 1,946.40 2,968.11 789.94

TOTAL ASSETS 12,084.13 6,997.57 5,612.47 5,802.15 3,081.53

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 2,207.02 1,583.58 0.00 0.00 0.00

CIF VALUE OF IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 0.00

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE IN FOREIGN
EXCHANGE

43
Expenditure In Foreign Currency 626.27 650.29 401.06 279.93 192.14

REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS

Dividend Remittance In Foreign Currency -- -- -- -- --

EARNINGS IN FOREIGN EXCHANGE

FOB Value Of Goods -- -- -- -- --

Other Earnings 5.04 5.98 -- -- --

BONUS DETAILS

Bonus Equity Share Capital -- -- -- -- --

NON-CURRENT INVESTMENTS

Non-Current Investments Quoted Market -- -- -- -- --

Value

Non-Current Investments Unquoted Book -- -- 129.50 36.62 16.00

Value

CURRENT INVESTMENTS

Current Investments Quoted Market Value -- -- -- -- --

Current Investments Unquoted Book Value -- -- 51.70 -- --

1.23 Profit & loss Statement:-

PROFIT & LOSS ACCOUNT OF MAR 20 MAR 19 MAR 18 MAR 17 MAR

AVENUE SUPERMARTS (in Rs. Cr.) 16

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

REVENUE FROM OPERATIONS 27,014.48 21,827.98 16,446.54 12,717.71 9,150.53

[GROSS]

Less: Excise/Sevice Tax/Other Levies 2,372.18 1,946.43 1,471.89 859.30 593.22

44
REVENUE FROM OPERATIONS 24,642.30 19,881.55 14,974.65 11,858.42 8,557.30
[NET]

TOTAL OPERATING REVENUES 24,675.01 19,916.25 15,008.89 11,881.12 8,575.18

Other Income 63.33 51.41 72.65 31.29 20.05

TOTAL REVENUE 24,738.34 19,967.66 15,081.54 11,912.41 8,595.23

EXPENSES

Cost Of Materials Consumed 0.00 0.00 0.00 0.00 0.00

Operating And Direct Expenses 0.00 0.00 0.00 0.00 0.00

Changes In Inventories Of FG,WIP And -333.21 -429.18 -213.88 -272.96 -130.28

Stock-In Trade

Employee Benefit Expenses 424.74 335.03 276.56 189.47 146.22

Finance Costs 62.76 47.15 59.42 121.80 91.23

Depreciation And Amortisation Expenses 339.81 198.80 154.65 126.02 97.10

Other Expenses 1,112.21 959.10 746.14 632.00 458.44

TOTAL EXPENSES 22,955.45 18,520.02 13,885.65 11,165.29 8,106.87

PROFIT/LOSS BEFORE 1,782.89 1,447.64 1,195.89 747.11 488.35

EXCEPTIONAL,
EXTRAORDINARY ITEMS AND
TAX

Exceptional Items 0.00 0.00 0.00 0.00 0.00

PROFIT/LOSS BEFORE TAX 1,782.89 1,447.64 1,195.89 747.11 488.35

TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 448.84 501.21 417.17 251.24 160.82

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00

Deferred Tax -15.87 17.77 -5.45 11.65 9.49

Tax For Earlier Years 0.03 -7.69 -0.49 1.58 0.13

45
TOTAL TAX EXPENSES 433.00 511.29 411.23 264.47 170.44

PROFIT/LOSS AFTER TAX AND 1,349.89 936.35 784.66 482.64 317.91

BEFORE EXTRAORDINARY
ITEMS

PROFIT/LOSS FROM CONTINUING 1,349.89 936.35 784.66 482.64 317.91

OPERATIONS

PROFIT/LOSS FOR THE PERIOD 1,349.89 936.35 784.66 482.64 317.91

OTHER ADDITIONAL
INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 21.49 15.00 12.57 8.56 5.66

Diluted EPS (Rs.) 21.33 14.79 12.41 8.55 5.66

VALUE OF IMPORTED AND

INDIGENIOUS RAW MATERIALS
STORES, SPARES AND LOOSE
TOOLS

Imported Raw Materials 0.00 0.00 0.00 0.00 0.00

Indigenous Raw Materials 0.00 0.00 0.00 0.00 0.00

STORES, SPARES AND LOOSE

TOOLS

Imported Stores And Spares 0.00 0.00 0.00 0.00 0.00

Indigenous Stores And Spares 0.00 0.00 0.00 0.00 0.00

DIVIDEND AND DIVIDEND

PERCENTAGE

Equity Share Dividend 0.00 0.00 0.00 0.00 0.00

Tax On Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend Rate (%) 0.00 0.00 0.00 0.00 0.00

46
1.24 Cash flow statement

CASH FLOW OF AVENUE MAR MAR MAR MAR MAR

SUPERMARTS (in Rs. Cr.) 20 19 18 17 16

12 mths 12 mths 12 mths 12 mths 12

mths

NET PROFIT/LOSS BEFORE 1,782.89 1,447.64 1,195.89 747.11 488.35

EXTRAORDINARY ITEMS AND TAX

Net CashFlow From Operating Activities 1,287.39 852.78 722.98 448.82 425.26

Net Cash Used In Investing Activities - - 432.50 - -

4,699.58 1,000.72 2,474.63 624.99

Net Cash Used From Financing Activities 3,383.53 204.04 - 2,024.29 196.48
1,121.73

Foreign Exchange Gains / Losses 0.00 0.00 0.00 0.00 0.00

Adjustments On Amalgamation Merger 0.00 0.00 0.00 0.00 0.00

Demerger Others

NET INC/DEC IN CASH AND CASH -28.66 56.10 33.75 -1.52 -3.26
EQUIVALENTS

Cash And Cash Equivalents Begin of Year 120.11 64.01 30.26 31.78 35.03

Cash And Cash Equivalents End Of Year 91.45 120.11 64.01 30.26 31.78

1.25 List of Other Indian Retailers:

1. Reliance Retail Limited
2. Pantaloons Retail Limited
3. Prorogue India Ltd
4. Shoppers Stop
5. ITC –LRBD
6. Trent Ltd

47
7. Vishal mega mart
8. Aditya Birla Retail
9. Titan Industries
10. Kewel Kiran Clothing Limited
11. Star Bazaar
12. Hyper City
13. Spar
14. Food World
15. Spencer’s
16. Easy day
17. Carrefour
18. Varkeys
19. Subhiksha
20. More Store

48
 CHAPTER 2
RESEARCH METHODOLOGY
2.1. OBJECTIVES
Every task is taken with an objective. Without any objective task is rendered meaningless.
The main objectives for undertaking this project are:
1. To know about retail industry.
2. To know the awareness of the customers towards SMART BAZAAR and
D-mart.
3. To know about customers perception regarding hypermarket.
4. To know whether the customers are satisfied with present services given by the SMART
mart. BAZAAR and D-
5. To know the strategy to make customer retention.

2.2. HYPOTHESIS:-
H0: Customers are not satisfied with the organized retail stores
H1: Customers are satisfied with the organized retail stores
H0: There is no stores that provides better clothing
H2: There is a store that provide better clothing
H0: The advertisement does not effect shopping behavior
H3: The advertisement does effect your shopping behavior
H0: Not satisfied with the services provided
H4: Satisfied with the services provided

2.3. Sample Design:-

A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique
or the procedure the researcher would adopt in selecting items for the sample. The sample design is
determined before data are collected.
The sampling used for the study is “Convenience Sampling”. Under this sampling design every item or the
universe has equal chance or inclusion in the sample because this is Consumers’ Perception survey, so we
give each person at any place an equal probability of getting into the sample.
The SMART BAZAAR AND DMART Biscuits of random sampling are:
1. It gives each element in the population an equal probability of getting into the sample; and all choices
are independent of one another.

2. It gives each possible sample combination an equal probability of being chosen.

49
 2.4. Research Design:-
“The research design is the conceptual structure with in which research is conducted it consist the blue print
of the collection measurement and analysis of data.”
In that project the research design was adopted for the “Descriptive research study” the exploratory research
studies are also termed as formulate research studies. The main purpose of such studies is that of formulating
a problem for more precise investigation or of developing the working hypothesis from an operational point
of view
The main purpose of the study was to tell the consumer perception in ‘A . The major emphasis was on the
discovery of the ideas and opinions of the consumers at different levels in the existing environment.
Two methods that are used for the study are:
1. The survey of concerning literature.
2. The experience study.

2.5. Data Collection:-

Market research requires two types of data i.e. secondary data and primary data .primary data has
been used abundantly for the study . Well structured questionnaires were prepared & the survey was
undertaken. Feedback for the display has been taken by asking questions & observations has also done to
gather primary information.

Following are the two type of data collection :

Primary data:
Questionnaire and interview
Primary data involves the collection of data that does not already exist. This can be through numerous forms,
including questionnaires and telephone interviews amongst others.

Secondary data:
Books and Journals
Secondary research involves the summary, collection and/or synthesis of existing research rather than primary
research, where data are collected form, for example, research subjects or experiments.
Thus the sources of data collection were as follows:

PRIMARY
1. Interview schedule

50
 2. Questionnaires
3. Observation method
4. Discussion
SECONDARY
5. Company records
6. Magazines
7. Other records
8. Website of company
Data type:

Primary as well as secondary data was collected.

Sample unit:

Friends and Families visiting to supermarkets.

2.6 Scope of study:-

The data was collected from the respondents across all the income groups, occupation and gender. The total
sample size for the study is 100. The study involves ascertaining the customer perception towards various
areas such as price, promotions offered, billing system and parking facility etc. The study also tries to know
why the customers visit and shop at D-Mart and get valuable suggestions from them. So, the study tried to
get the responses almost all kinds of respondents. This research is based on primary data and secondary data.
Due to time constraint, only limited number of persons contacted.

2.7 Sampling Method

Since the study is restricted to retail sector , all functional Departments of SMART BAZAAR & Dmart and
the respondents are found at the store only so according to the convenience randomly they are being picked
to sampling method is used in the study is Random Convenient Sampling.

51
 CHAPTER NO 3
REVIEW OF LITERATURE
LITERATURE
REVIEW

Indian retailing is at all time growth today. The industry is flooded with footfalls of foreign retail giants; in
this situation the discussion is open on the survival of kirana stores (unorganized retailers) in India. Retailing
in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The customer taste
is also changing according to the change in whole retailing environment. Wal Mart entering in Indian market
is still talk of the town in the country. The government of India has allowed 51% FDI in multi brand
retailing. India is one of the fastest growing retail markets in the world, with 1.24 billion people .the main
focus of the research will be highlighting the tools which can help Kirana stores to provide a better retail mix
for attracting more customers and their securing their long time existence.
Introduction:
The Indian retail experience has gone beyond the traditional brick–and-mortar store and includes numerous
touch points such as online stores, social networks, call centers, etc. Changing economic dynamics, diverse
choices in products and services, numerous shopping formats and unparalleled access to information has
empowered customers to expect more from their retail experience. The recent economic downturn has taught
discipline to the customers. In today’s rapidly changing and digitally connected world, customers are more
value conscious while making purchase decisions. India’s retail market is expected to touch a whopping
Rs.47 trillion by 2016–17, expanding at a compounded annual growth rate of 15 per cent, according to a
study by a leading industrial body.
The total organized retail supply in 2013 stood at approximately 4.7 million square feet, witnessing a strong
year-on-year growth of about 78 per cent over the total mall supply of 2.5 million sq ft in 2012. The foreign
direct investment inflows in single-brand retail trading during the period April 2000– 52ulfilm 2014 stood at
us$ 98.66 million, as per data released by department of industrial policy and promotion.
As of 2013, India’s retailing industry was essentially owner manned small shops. In 2010, larger format
convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present
only in large urban centers. India’s retail and logistics industry employs about 40 million Indians 3.3% of
Indian population.
On 7 December 2012, the federal government of India allowed 51% FDI in multi-brand retail in India. The
government managed to get the approval of multi-brand retail in the parliament despite heavy uproar from
the opposition. Some states will allow foreign supermarkets like Wal-Mart, Tesco and Carrefour to open
while other states will not.

Rama Venkatachalam and Awrahs Madan(2012) in their have highlighted on level of prices , quality of fresh
groceries & availability of exotic fruits and vegetables, display & cleanliness and hygiene, home delivery &
credit facility provided by both the organized and unorganized retailer. Change in customer preference has
been noticed while shopping fresh grocery from unorganized or organized retailers. The author has also
mentioned that organized retailing is doing the right things to sustain, survive and grow.
According to Ms. Monika Talreja and Dr. Dhiraj Jain (2013) both modern and traditional retailers will co-
exist in India for some time to come, as both of them have their own competitive advantages. The Kirana
stores have a low- cost structure, location advantage, and customer familiarity whereas organized retail
offers a mixture of product width and depth and a better shopping experience. Organized retailing is
becoming a destination shop for buying fresh fruit and vegetable.
52
Mr. Kishore Biyani who was appointed as “Chairman & Managing Director” was re-designated as
“Executive Chairman” effective from March 05, 2020 till March 31, 2022 and thereafter he will continue as
Non- Executive Chairman of the Company in terms of applicable provisions of the SEBI Listing Regulations
read with provisions of SEBI Notification dated January 10, 2020.
• Mr. Rakesh Biyani who was appointed as “Jt. Managing Director” was re-designated as “Managing
Director” effective from March 05, 2020 till the remainder period of his existing term i.e. upto May 01,
2022.
• Mr. Sanjay Jain who was appointed as Chief Executive Officer (CEO) of the Company with effect from
March 05, 2020 has requested the Board for keeping his appointment as CEO in abeyance as he was pre-
occupied with his earlier responsibilities within Future Group. Accordingly, the Board of Directors at their
meeting held on March 23, 2020 has considered and accepted the said proposal.

Kuldip Nar, Founder –Responsenet Development Services “There is no better approach to challenges than
collaborating to address them together. We’re incredibly grateful to the Sone Ki Chidiya Foundation for
providing the Bhawana community with that one joy that every child gets on receiving new clothes. The
generous support will surely help us rewrite the story of India’s underprivileged children”
- Ujjala Bedi, Director Navjyoti India Foundation “Your initiative to give new clothes to children from
struggling communities is really worth appreciating. It brings smiles on the faces of many children who not
only cannot afford new clothes but mostly do not have a third pair of clothes. Your gift stimulates their self-
esteem which helps them to aspire and achieve something in their lives. I would like to thank Sone Ki
Chidiya Foundation for this great opportunity.”
- Sanjay Hegde, Director of Seva Sahayog Foundation “One act of random kindness can indeed change the
whole world. Children are the future of our society and their future depends on how we treat them today.
With the lack of financial capacity and low economic status among the marginalised and vulnerable parents,
they are unable to purchase new clothes for their children which is one of the happiest moment in a child’s
life. But, Sone Ki Chidiya Foundation has been filling in this gap with their noble and generous act which
has brought happiness and smiles in the face of several children and their parents over the years as well and
we look forward to sharing this joy again in the coming days. “
Baker Prewitt (2000) has found that service quality influence relative attitude and satisfaction , while
satisfaction influence relatives attitude , repurchase and recommendation but has no effect on store loyalty .
He has also found that loyalty is influenced by recommendations and repurchases intentions
Binta Abubakar (2001) have found that the retailer seems to meet the needs of the customers consisders
important . There were differences across the postal districts but these were not many .Postal code area B
seems to have the most satisfied customers .
Bernadette D’ Silva (2001) concludes that Indian shoppers are quite influenced by the visibility , advertising
and attractive bumper offers on the product .They have found some important factors which can increase the
customers loyalty as well as the demand for the products in the supermarkets .
M Luth (2006) have found five dimensions of customer satisfaction namely quality of goods , consulting and
service, atmosphere , price- performance ratio , and trust . they have also found that discount – oriented ,
customers ,organic food shop customers and organic food shop customers and organic supermarkets
customers are differ in terms of choice decision.
According to Hansemark & Albinsson (2004), “satisfaction is an overall attitude towards a product provider
or an emotional reaction to the difference between what customers expect and what they actually receive
regarding the fulfilment of a need”. Kotler (2000) also define satisfaction as a person’s feelings of pleasure,
excitement, delight or disappointment which results from comparing a products perceived performance to
his or her expectations.
53
Nair Suja (2008) in her book ‗Retail Management‘ has tried to explain the growth of retailing in Indian
context especially in the context of new economic policy, global economic development, changes in the
marketing and economic system as well as changing pattern and classification of economic activity.
Hamilton Ryan (2009) in their research paper majorly focused on the important decision that retailers always
involves in selecting the number of items constituting their assortments. A key issue in making these
decisions is the role of assortment size in determining consumers choice of a retailer. The authors address
this issue by investigating how consumer choice among retailers offering various-sized assortments is
influenced by the attractiveness of the options constituting these assortments. The data show that consumer
preference for retailers offering larger assortments tends to decrease as the attractiveness of the options in
their assortments increases and can even lead to a reversal of preferences in favour of retailers offering
smaller assortments. This research further presents evidence that the relationship between assortment size
and option attractiveness is concave, such that the marginal impact of assortment size on choice decreases as
the attractiveness of the options increases. Data from eight empirical studies offer converging evidence in
support of the theoretical predictions.
Krishnaveni (2006) identified that the most important paradigm which is associated with promotion of
loyalty among consumers is the attribute of quality. Present generation invest more on the basic factors such
as books, clothes, food, music and gadgets such as mobile phones.
Kuruvilla and Ganguli (2008) explained that shopping develops into important aspect in the lives of people,
as they are becoming financially sound to do purchase in malls and they begin to consider the shopping
value as an important factor along with the price of the products. In 1990s the modern trend in shopping mall
concept had been introduced by ‗Spencer Plaza‘in Chennai and ‗Crossroads‘in Mumbai. After that, there
has been a great improvement in this modern concept
Dwivedi (2010) explained that when compared to major cities in India, the smaller cities seem to be a better
place for investment. This is because these cities have low priced lands, low functional and operational
expenses and greater number of available lands. He further specified and explained that there has been a
transition in the taste and purchasing priorities of the customers from Tier II and III cities in the past ten
years. He also presented the views of Ernst and Young which illustrated that there was twenty six percentage
of growth in mall of the metropolitan cities while malls in Tier II and III cities showed fifty five percentage
of growth.
Kotler and Armstrong (2012) define retailing as all the activities for selling goods or services directly to
ultimate buyers for their personal, non-business use.
According to Amit & Kameshvari, (2012), the origin of word “retail‟ comes from the French „retailer‟, that
means „to cut a piece off‟ or „to break bulk‟. In other words, it shows a first hand-transaction with the
customer The retailer is a person or agent or agency or company or organization who sends the products or
services to the ultimate consumer Thus, the customer and the 54ulfilment of customer desires and needs
which are the key points of retailing are the retailing focus
According to Tiwari,(2009),. Retailing is as old as exchange. Retailing is one of the oldest businesses in the
world and was practiced in prehistoric times. Earlier it was the exchange of food and traditional weapon
which followed the emergence of traders and peddlers. The day barter has been replaced by exchange
through money (in any form) the retailing came into existence A few centuries ago, in the 16 th and 17th
centuries, some retail chains in some European cities were known.However, the beginning of retailing
development is acknowledged to be at the end of the 19th century and early of the 20th century. At the
beginning, retailers dominated with any merchandise. Later, retailers specializing in the market began to
gain momentum. Last few years, there are very large stores, but again selling every kind of merchandise. In
countries that have developed retailing, competition has reached high levels and has again started focusing
on specialized stores. According to Hansemark & Albinsson (2004)

54
Bijapurkar (2008) explained that the reduction indicates the increase in the number of middle class
populations who can manage to pay for food, beverage and entertainment in addition to their basic needs. In
India a great increase in family income has been observed
Feinberg, Sheffler, Meoli and Rummel (1989) considered the social stimulation provided by malls, finding
that the mall served as an outlet for social behaviour.
C S Venkata Ratnam (2007) have detailed changing consumer behaviour in retail trade in India in his paper
entitled “Changing Consumer Behaviour and Emerging Challenges to the Retail Trade In India” The author
has highlighted that sustained and rapid growth of China and India, which together provide home to over a
fifth of the humanity, are creating a tremendous surge in consumerism on a scale which is unprecedented.
Both the countries are attractive destinations for investment and production as well as sales and marketing.
Fornell (1992) found in the study that customer satisfaction enhances the customer loyalty, reduce the
customer churn, decrease the costs of failed marketing, signifies the price sensitivity of customers, create
new customers, enhance the effect of advertising, lowers the cost of operations and finally improves the
reputation.
Hamburg and Koschate (2004) studied the role of perceived fairness and customer satisfaction on the
repurchase intention after a price increase. Their findings of the study suggested that perceived fairness has a
positive impact on the repurchase intention while satisfaction moderates this relationship.
Martenson (2007) researched the effect of the corporate store image on customer satisfaction and store
loyalty in grocery retailing and deduced that the brand image of the store is an important aspect for the
customer satisfaction. If the retailers understand and address the need of the customers, the customers are
satisfied.
Zielke (2008) indicated that value for money, the price level and special offers are both satisfiers and
dissatisfies; price perceptibility, price process ability and price fairness tend to be dissatisfiers only; and
price advertising and products in the upper price range are indifferent requirements.
Fonseca (2009) by adopting a new technique and a new conceptual model of customer’s satisfaction
expressed that in order to estimate the global customer satisfaction measure; one should appeal to
methodologies recognising that satisfaction must be understood as a latent variable, quantified through
multiple indicators.
Sánchez-Fernández and Iniesta-Bonillo (2009) studied the relationship between consumer satisfaction and
economic value. They suggested an operational tool to measure economic value of designing suitable
strategies to create and deliver value to customers by retailers.
Torben et al. (2011) detected that the level of satisfaction among the customers with various retailers cannot
be understood by matching expectations with products & services, but may also be based mental justification
of the customer.
Hamburg and Koschate (2004) studied the role of perceived fairness and customer satisfaction on the
repurchase intention after a price increase. Their findings of the study suggested that perceived fairness has a
positive impact on the repurchase intention while satisfaction moderates this relationship.
Dr. Girish K. Nair & Harish K. Nair (2013) conclude that “the customer perception of retail service quality
is an important segment to the emerging and the existing retailers in the market. As the study reveals that
perception of service quality is influenced by the various natures among various customers, even some of the
general factors like Personal interaction, physical aspects are the dimensions on which customer perception
remains constant and common to the entire customer on a majority basis. So the retail outlets have to frame
their own strategies in order to attract the customers on a longer basis.

55
 CHAPTER NO. 4
Data Interpretation

1. AGE
98 RESPONSES

AGE

21%

44%
8%

27%

18-2021-2626-30ABOVE 30

RESULTS
CHOICES % COUNT

18 – 20 44 44

21 – 26 27 27

26 - 30 8 8

Above 30 21 21

From the above diagram Out of 100 responses 44 % people are from the age category of 18-20 , 27%
are from age category of 21-26, 8% are from age category of 26- 30 ,21 % are from age category
Above 30.

56
2. OCCUPATION
100 RESPONSE

OCCUPAION
11%

7%

22% 60%

STUDENTEMPLOYEDSELF EMPLOYEDOTHERS

RESULTS
CHOICES % CONT

Student 60 60

Employed 22 22

Selfemployed 7 11

Others 11 7

From the above diagram Out of 100 responses 60 % are students, 22% are employed ,7% are self
employed , 11% are from other category.

57
3. GENDER
100 RESPONSE

GENDER

49%
51%

MALEFEMALE

RESULTS
CHOICES % CONT
Male 51 51
Female 49 49

From the above diagram Out of 100 responses 51% people are male , and 49% are females

58
4. WHICH SUPER MARKET IS NEAR-BY TO YOUR PLACE ?
100 RESPONSE

15% 14%

23%

48%

SMART BAZAARDMARTBOTHOTHER

RESULTS
CHOICES % COUNT

SMART BAZAAR 14 14

Dmart 48 48

Both 23 23

Others 15 15

From the above diagram Out of 100 responses the nearby supermarket to place is 14% are for
SMART BAZAAR, 48% % is for dmart , 23%% is for both ,and 15% % is for other.

59
5. HOW OFTEN DO YOU VISIT THE STORE ?
100 RESPONSES

15% 17%

6%

3%

59%

ONCE IN A WEEKONCE IN A MONTHTWICE IN A WEEK

TWICE IN A MONTHONCE IN A YEAR

RESULTS
CHOICES % COUNT

Once in a Week 17 17

Once in a Month 59 59

Twice in a week 3 3

Twice in a month 6 6

Once in a year 15 15

From the above diagram Out of 100 responses 17% people visit once in a week , 59% people visit
once in a month , 3% people visit twice in a week , 6% people visits twice in a month,15%people visit
once in a year

60
6. WHICH STORE PROVIDE YOU BETTER CLOTHING OPTIONS?
100 RESPONSES

28%
31%

21%
20%

SMART BAZAARDMARTBOTHOTHER

RESULTS
CHOICES % COUNT

SMART BAZAAR 28 28

Dmart 21 21

Both 20 20

Others 31 31

From the above diagram Out of 100 reponses the SMART BAZAAR provides 28% of better clothing
options
,dmart also 21% , both provide 20% % and 31 % is of others.
61
7. WHICH SHOP DID YOU PREFERRED FOR PURCHASING PRODUCT
BEFORE GETTING INTRODUCED TO SUPERMARKET ?
100 RESPONSES

10%

33%
57%

LOCAL KIRANA SHOPSGROCERY SHOPOTHER

RESULTS
CHOICES % COUNT
Local kirana shops 57 57

Grocery shops 33 33

Other 10 10

From the above diagram Out of 100 responses , 57% people preferred going to local kirana shops
before getting introduced to super markets , 33% people preferred going to grocery shops, and 10%
people preferred going other shops.

62
8. DO YOU PREFER SUPERMARKET OR SITES WHICH GIVES YOU ONLINE
SERVICES
100 RESPONSES

36%

64%

YESNO

RESULTS
CHOICES % COUNT

Yes 64 64

No 36 36

From the above diagram Out of 100 responses 36% people prefer supermarket and 64% people prefer
sites that provides online services.

63
9. MAIN REASON FOR VISITING THE STORE
100 RESPONSES

9%

31%

40%

20%

VALUE FOR MONEYPRICE RANGE OFFEREDDISCOUNTSSAVING OF TIME

RESULTS
CHOICES % COUNT

Value for Money 31 31

Discounts 40 40

Price range offered 20 20

Saving of time 9 9

From the above diagram Main reason for visiting the store out of 100 responses 31% people visit for
value for money , 40 % people visit for discounts, 20% people visit for price ranges offered, and 9% of
people visit because of saving of time.

64
10. WHICH STORE IS VALUE FOR MONEY
100 RESPONSES

28%

72%

SMART BAZAARDMART

RESULTS
CHOICES % COUNT

SMART BAZAAR 28 28

D mart 72 72

From the above diagram Out of 100 responses according to 28% people SMART BAZAAR is value
for money and according to 72% people dmart is value for money.

65
11. WHICH SUPERMARKET PROVIDES BETTER SERVICES ?
100 RESPONSES

13%

37%

50%

SMART BAZAARDMARTOTHERS

RESULTS
CHOICES % COUNT

SMART BAZAAR 37 37

Dmart 50 50

Others 13 13

From the above diagram Out of 100 of responses 37% people says SMART BAZAAR provides better
services
, 50% people says dmart provides better services , 13% people says other stores provide better services.
66
12. WHICH STORE ADVERTISEMENT IS MORE POWERFUL ?
100 RESPONSES

31%

69%

SMART BAZAARDMART

RESULTS
CHOICES % COUNT

SMART BAZAAR 69 69

D mart 31 31

From the above diagram Out of 100 responses according to 69% people SMART BAZAAR
advertisement is more power full and according to 31% people dmart advertisement is more power
full.
67
13. RATE THE LEVEL OF SATISFACTION TOWARDS SMART BAZAAR
100 RESPONSES

2%

21% 23%

54%

EXCELLENTGOODAVERAGEBELOW AVERAGE

RESULTS
CHOICES % COUNT

EXCELLENT 23 23

GOOD 54 54

AVERAGE 21 21

BELOW AVERAGE 2 2

From the above diagram Out of 100 responses 23% people says their satisfaction level is excellent
towards SMART BAZAAR , 54% people says their satisfaction level is good towards SMART
BAZAAR , 21% people says their satisfaction level is average towards SMART BAZAAR , 2% people
says their satisfaction level is below average towards SMART BAZAAR .

68
14. RATE THE LEVEL OF SATISFACTION TOWARDS DMART
100 RESPONSES

1%
14%

39%

46%

EXCELLENTGOODAVERAGEBELOW AVERAGE

RESULTS
CHOICES % COUNT

EXCELLENT 39 39

GOOD 46 46

AVERAGE 14 14

BELOW AVERAGE 1 1

From the above diagram Out of 100 responses 39% people says their satisfaction level is excellent
towards dmart , 46% people says their satisfaction level is good towards dmart , 14% people says their
satisfaction level is average towards dmart , 1% people says their satisfaction level is below average
towards dmart .

69
15. WHAT DO YOU PREFER?
99 RESPONSES

24%

76%

GOING SUPERMARKETORDERING ONLINE

RESULTS
CHOICES % COUNT

Going supermarket 76 76

Ordering online 24 24

From the above diagram Out of 99 responses 76 people’s says that they prefer going supermarkets,
whereas 24% of the people’s says that they prefer online ordering ..

70
16. WHICH STORE PROVIDE YOU BETTER FMCG (FAST MOVING
CONSUMER GOODS ) OPTIONS ?
100 RESPONSES

6%

26%

23%

45%

SMART BAZAARDMARTBOTHOTHERS

RESULTS
CHOICES % COUNT

SMART BAZAAR 26 26

Dmart 45 45

Both 23 23

Others 6 6

From the above diagram Out of 100 responses 26% of the people’s says SMART BAZAAR provide
them better FMCG options , whereas 45% of the people’s says dmart provide them better FMCG
options , 23% of the people’s says both ( SMART BAZAAR n dmart ) provide them better FMCG
options and 6% of people’s says that others stores provide them better FMCG options than SMART
BAZAAR and dmart.
71
17. ACCORDING TO YOU WHICH SUPERMARKET HAS MORE CUSTOMERS ?
99 RESPONSES

36%

64%

SMART BAZAARDMART

RESULTS
CHOICES % COUNT

SMART BAZAAR 36 36

D mart 64 64

From the above diagram Out of 99 responses 36% of the people think SMART BAZAAR has more
customers , whereas 64% of the people thinks dmart has more customers.

72
18. WHICH SUPERMARKET HAS GOOD MANAGEMENT FACILITIES
99 RESPONSES

49%
51%

SMART BAZAARDMART

RESULTS
CHOICES % COUNT

SMART BAZAAR 36 36

D mart 64 64

From the above diagram Out of 99 responses 36% people says SMART BAZAAR provides good
management facilities, whereas 64% people says 64 % people says dmart provides good management
facilities
73
 CHAPTER NO. 5 CONCLUSION , FINFINGS AND SUGGESTIONS

CONCLUSION
SMART BAZAAR & D-Mart are a major shopping complex for today’s customers. It is a place where
customers find variety of products at a reasonable price. SMART BAZAAR & D-Mart has a good reputation
of itself in the market. It has positioned itself in the market as a discounted store. It holds a huge customer
base. The majority of customers belong to middle class family. The youth generation also likes shopping and
moving around SMART BAZAAR & D-Mart. Volume sales always take place in SMART BAZAAR & D-
Mart.
SMART BAZAAR & D-Mart is a hypermarket as it provides various kinds of goods like apparels, grocery,
stationary, food items, electronic items, leather items, watches, jewelry, crockery, decorative items, sport
items, chocolates and many more. It competes with all the specialty stores of different products which
provide goods at a discounted rate all through out the year. It holds a large customer base and it seemed from
the study that the customers are quite satisfied with SMART BAZAAR & D-Mart. As of now there are 34
SMART BAZAAR & D-Marts in different cities of India, it seems that there is a vast growth of SMART
BAZAAR & D-Mart lying as customers demand; increasing for SMART BAZAAR & D-Marts. It has
emerged as a hub of shopping specially for middle class people.

Different types of products starting from a baby food to pizzas wide range is available under one roof. In
Mumbai it is the middle class people who mostly do marketing from SMART Bazaar & D-Mart. Even
most of the people do their monthly shopping from SMART BAZAAR & D-Mart. People not only visit
SMART BAZAAR & D- Mart to do shopping but also visit for outing purpose as it provides a very nice
ambience to its customers. As people go to malls they just tend to move around SMART BAZAAR & D-
Mart whether it is for shopping purpose or for outing purpose. Grocery, apparels and food items are the
products which are demanded most by the customers of Ahmedabad in SMART BAZAAR & D-Mart.

The major reason why D-mart is tough competitor for SMART BAZAAR because of less prices of
commodity and special discounts. Also D-mart provides online services such as D-mart ready through which
one can order product through online. One of the drawback of D-mart is lack of advertisement as compared
to SMART BAZAAR. Also SMART BAZAAR provides better clothing option with variety and good
quality as compared to D-mart. SMART BAZAAR a variety of clothing brands such fbb, pantaloons, etc.

D mart is a hypermarket as it provides various kinds of goods like apparels, grocery, stationary, food items,
electronic items, leather items, watches, jewellery, crockery, decorative items, chocolates and many more. It
completes all socially stores of different product which provides good at a discounted rate all throughout the
year. It holds a large customer based and it seemed from the study that the customer is quite satisfied with
Dmart.

The customers are also satisfied with some services like complaints & return handling, packaging / gift
wrapping, information from the store, safety of personal things, alteration, refreshment facilities, shopping
carts as well as the pricing of these services. However, many services fall short of the expectations of the
customers, e.g. parking, baby strollers, fitting / trial room, personal assistance in selecting merchandise,
washrooms and drinking water, billing facilities, store environment, warranties. It can be concluded that

74
customer satisfaction is very important. Thus, though customer satisfaction does not guarantee repurchase on
the part of the customers but still it plays a very important part in ensuring customer loyalty and retention.
Therefore, organizations should always strive to ensure that their customers are very satisfied.

To conclude, as of today, SMART BAZAAR has 290+ stores in India in over 130 cities. Sister chains of
SMART BAZAAR include Brand Factory, Home Town, Central. SMART BAZAAR is now eyeing small
towns to gain an edge over its competitors. The retailer believes that the future is going to be an
incorporation of both channels of selling their products: walk-in stores and home delivery or online
purchasing. SMART BAZAAR’s current tagline aptly suggests the same: “Naye India Ka Bazaar” –
“Market for New India”. SMART BAZAAR is now focusing predominantly on generating e-commerce
revenue and building creative marketing strategies.
It can be concluded that indeed SMART BAZAAR is progressing, it is accomplishing its goals with a clear
vision and mission gradually. It has achieved high brand equity, highly discounted products and the variety
of products that are available under one roof. It is also expanding its business geographically as well as in
form of the product width. SMART BAZAAR is advancing in Supply Chain Management and Customer
Relationship Management that helps it to fulfill the needs of customers in time and with greater satisfaction.
It has also been very successful in making brand loyalty in the minds of people and without any doubt it has
been very successful in target segmenting.

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 FINDINGS

Most of the customers buy their requirement in SMART BAZAAR & D-mart on the basis of Weekly and
monthly basis. Customers realized that SMART BAZAAR & D- mart stores provide qualitative
products/service with reasonable price.
At present time SMART BAZAAR & D-mart provide different types of product assortments to the customers.
SMART BAZAAR & D-mart is a hypermarket as it provides various kinds of goods like apparels, grocery,
stationary, food items, electronic items, leather items, watches, jewellery, crockery, decorative items, sport
items, chocolates and many more. It competes with all the specialty stores of different products which
provide goods at a discounted rate all through the year.
SMART BAZAAR and D-mart mainly deal with middle income group people who want qualitative
product with reasonable cost.
There are more than 50 SMART BAZAARs in different cities of India, it seems that there is a vast growth of
SMART BAZAAR lying as customers demand is increasing for SMART BAZAARs.
The customers gives response for most powerful advertisement is Big-Bazaar. We can also interpret that the
big-bazaar comparison is more powerful people attract with advertisement like T.V, Hoarding, news paper,
is most of the part of purchasing by advertisement.

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 SUGGESTION

SUGGESTION
On the basis of the study, some of the recommendations are as follows:

SMART BAZAAR should keep offers in regular intervals so that there should not to be a long term gap,
because offer is the most important influencing factor which is responsible for customer purchase decision.
D-mart should concentrate on TV advertisement they should show ads and promotional offers interval in
languages like Hindi and English.
D-mart should provide better clothing options with more brands and better quality.
SMART BAZAAR should also providing online and home delivery services like D-mart ready.
The infrastructure is needed to be changed a bit during weekends as heavy crowd comes into the supermarket.
It can start a concept of “HAPPY HOURS”.
It can initiate various Student Plans.
It can look to target Rural Market.
It needs to focus more on CRM and improve in store assistance.
It should invest more in supply chain infrastructure.
It should include more brands in its line of products.
Exchange offers should be made clear as customers are not clear of how to use them.
There should be aggressive expansion plan to open in tire II cities. 9. It should start facilities like free home
delivery etc.

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 BIBLOGRAPHY

https://www.ndtv.com/business/stock/future-retail-ltd_fretail/financials-cash-flow

https://www.ndtv.com/business/stock/future-retail-ltd_fretail/financials-profit-loss

https://www.ndtv.com/business/stock/future-retail-ltd_fretail/financials

https://www.moneycontrol.com/financials/avenuesupermarts/balance-sheetVI/AS19

https://www.slideshare.net/sarlajswl/big-bazaar-anddmart

https://en.wikipedia.org/wiki/Big_Bazaar
https://www.slideshare.net/guest70b206/company-profile-big-bazaar-1142871

https://economictimes.indiatimes.com/future-retail-ltd/balancesheet/companyid-45395.cms

https://www.dmartindia.com/about-us

https://en.wikipedia.org/wiki/DMart

https://retail.economictimes.indiatimes.com/tag/dmart

https://www.moneycontrol.com/financials/avenuesupermarts/balance-sheetVI/AS19
https://www.slideshare.net/malaya_123/customer-satisfaction-at-big-bazfinal-
project

https://blog.finology.in/investing/business-model-dmart

https://franchisebatao.com/dmart-business-model-in-india/

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List of websites referred:
1. www.D.Mart.com
3. www.Dmartabout.com
4. www.article.com
5. www.article.com
6. www.wikepedia.com
7. www.slideshare.com
8. www.quora.com

BOOKS REFERRED FOR MY PROJECT :

SINGH,KULDEEP,RETAIL MANAGEMENT IN NEW DIMENSION, 1 EDITION 2011, GLOBAL

VISION PUBLISHING HOUSE , PGNO; 1 , 6.

COOK,D. AND WALTERS, D (1991), RETAIL MARKETING : THEORY AND PRACTICE ,PRENTICE
HALL.

FREATHY , P (2003) , THE RETAILING BOOK , PEARSON EDUCTION.

HOWE , W.S. (1992), RETAILING MANAGEMENT , MACMILLAN .

GIBSON G. VEDAMANI , Retail Management – Functional Principles and Practices, 3rd Edition
(Revised and Enlarged), JAICO Publishing House, Mumbai, 2008

Suja Nair, Retail Management, 3rd Edition, Himalaya Publishing House, Mumbai, 2008

79
 APPENDIX

QUESTIONS

1. AGE

2. OCCUPATION

3. GENDER

4. WHICH SUPER MARKET IS NEARLY TO YOUR PLACE ?

5. HOW OFTEN DO YOU VISIT THE STORE ?

6. WHICH STORE PROVIDE YOU BETTER CLOTHING OPTIONS ?

7. WHICH SHOP DID YOU PREFERRED FOR PURCHASING PRODUCT BEFORE GETTING
INTRODUCED TO SUPERMARKET ?

8. DO YOU PREFER SUPERMARKET OR SITES WHICH GIVES YOU ONLINE SERVICES.

9. MAIN REASON FOR VISTING THE STORE .

10. WHICH STORE IS VALUE FOR MONEY .

11. WHICH SUPERMARKET PROVIDES BETTERS SERVICES ?

12. WHICH STORE ADVERTISEMENT IS MORE POWERFUL ?

13. RATE THE LEVEL OF SATISFACTION TOWARDS SMART BAZAAR.

14. RATE THE LEVEL OF SATISFACTION TOWARDS DMART .

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15. WHAT DO YOU PREFER .

16. WHICH STORE PROVIDE YOU BETTER FMCG ( FAST MOVING CONSUMER GOODS )
OPTIONS ?

17. ACCORDING TO YOU WHICH SUPERMARKET HAS MORE CUSTOMERS.

18. WHICH SUPERMARKET HAS GOOD MANAGEMENT FACILITIES .

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