RETAIL MANAGEMENT

KIRANA STORES V/S SUPERMARKETS
CIA II

BY: AKSHAY P JAIN (0911349) MARKETING 2

People also found the atmosphere better at the super market when compared to the kirana stores.SURVIVAL STRATEGIES OF BALAJI PROVISION STORES ABOUT BALAJI PROVISION STORES y y y y y Established: Location: Ownership Type: Retail Store Type: Competitors: September 2007 Jayanagar 4th T Block Sole Proprietor Kirana Stores Benison Super Market (Jayanagar 4th T Block) (Established in 2008) Smart Hyper Market (Jayanagar 4th T Block) (Established in June 2009) HIGHLIGHTS Balaji Provision Store has been operating in Jayanagar 4th T Block for 4 years now. Benison Super Market and Smart Hyper Market. Balaji enjoyed this wellbeing until Benison Super Market entered the place. For the 1st year the business of Balaji Provision stores went all well. It did enjoy its 1st mover¶s advantage as an organized ³kirana´ store where most of the household goods were available under 1 single roof. this was mainly because it was the 1st retail super market in the developing area. . People found it more convenient to shop at the store as they could look at the product themselves and choose from the various brands of products available on the shelves on the super market. As soon as Benison entered the retail market in Jayanagar 4th T Block Balaji lost most of its customers. Soon in 2009 (June) when Smart Hyper Market was opened at Jayanagar 4th T Block there was open and fierce competition between Balaji Provision Stores.

Balaji being a small store couldn¶t counterpart with these attractions offered by Benison and Smart. being a new store many people tried Smart Hyper Market to fell a new experience at the new store. computerized billing and the highly lighted store made it better for people to shop from the super/hyper markets. nor can they offer festive season discounts as the departmental stores do!! These were a few highlights of KIRANA STORES v/s RETAIL OUTLETS. the packaging of the products available at the departmental stores is different from that at the kirana stores. . The discounts offered on the private label products are more attractive when compared to the unbranded products offered by the kirana stores. Apart from these attractions. Balaji Stores was losing out on its foot hold as it didn¶t offer any shopping atmosphere to its customers and it was just another kirana store in the locality. but the kirana stores cant decorate their shop as brightly as the departmental stores can. The free home delivery. Shopping from kirana stores didn¶t sound or look good to people and that¶s one among the reason why people shifted from kirana stores to super/hyper markets. Even during the festive seasons the departmental stores are fully lighted and decorated and they also offer discounts on various products. Meanwhile.Benison being an older player could hold on to its loyal customers.

work together. 8. No political clout. 25. Poor mix of retail businesses in district. "Red-lining" by lenders. 15. 2. 9. Inadequate or poorly managed parking. 12. small businesses. 6. 13. Poor or out dated signage. Local government regulations inappropriate. Poor internal management of businesses. 4. 20. 23. High rents squeeze out small businesses. Large number of vacant buildings. Poor marketing of commercial district. Inadequate facilities or sevices to retain employees. 3. Inadequate capital to expand existing businesses. Negative image of area. Little understanding of market by existing businesses. Design of buildings poor. 14. 19. 11. Poor relations between property owners and tenants. Crime. 26. No financial feasibility analyses available for new. 21. 7. Inadequate capital to provide needed public improvements. 22. Inadequate organizational structure for small businesses to 24.PROBLEMS OF SMALL RETAILERS Following are the problems faced by BALAJI PROVISION STORES 1. Market inadequate to support businesses. Poor inventory control. Inadequate capital to start new businesses. 17. 18. 16. 5. 10. Poor merchandising. . Large number of second story vacancies. Inadequate numbers of skilled employees available to work in businesses in the district.

A smaller organization is unable to provide the depth of knowledge or experience that will enable an employee to make a major transition into another company or business entity easily. With the death of the patriarchic organization that supported a life-long employment. . Another key factor is the visibility of the organization. When an employee leaves. especially regional and national chains. employees are looking at employers to provide life-long employability. Many small-scale businesses rely on family members to fill some of the roles. 2. With deeper pockets of money. They also leverage high-end technology to keep costs under control in a way that cannot be emulated by the small-scale businesses. They also have several partnerships which allow them to bundle a wide variety of products and services for their customers. Lack of skilled employees or the inability to hire them can result in a lot of additional costs in terms of time (and money) spent in recruitment and retraining. Big businesses control the entire supply chain and they can manipulate it to meet the customer needs dynamically. they can outspend the smaller businesses in every aspect of their business and still charge lesser for their products. FINDING AND RETAINING QUALIFIED WORKERS: Small-scale businesses cannot pay the level of wages or benefits that can be offered by largescale businesses (not that the wages offered by Wal-Mart-style companies are anything to die for). the new employee must spend a non-trivial amount of time being trained so that he or she can replace the old employee. They have to look for employees within a reduced pool of candidates. some of whom may be transient. into the same geographical area as the small businesses poses an immediate threat to the small business. Hence most small businesses find it much more difficult to hire and retain skilled workers. MEGA BUSINESSES: The advent of much bigger competition.CHALLENGES FACED BY KIRANA STORE OWNERS 1.

3. workplace rules and the paperwork associated with tax compliance contribute to most of the burden. small businesses are more affected. Recent developments such as globalization have affected small business owners drastically. and health and safety inspections. particularly those manufacturing products that can now be imported at very low cost. When such employers decide to lay off hundreds of workers. this poses a burden on the business owner in terms of time and money that could have been spent growing the business. A disproportionate amount of regulatory work has to be done by the employer and other owners which leave less time for management that would yield better results for the company. it adversely affects several small scale businesses that were built around those employers. Although all businesses have to bear the burden of regulations. . 4. Events such as multi-national treaties like the Kyoto environmental treaty. ECONOMIC UNCERTAINTY: Many small business owners are at the mercy of economic conditions that they have no control on. Environmental regulations. dollar rate fluctuations and new trade blocs happening elsewhere in the world have impact on small businesses affected by the new economic conditions. STATE AND FEDERAL REGULATIONS: Every business owner has to comply with a variety of regulations. including obtaining permits and licenses. TOWN. While necessary for the overall wellbeing of the community. This is particularly true in cities and towns dependent on large employers. Research shows that small firms employing less than 20 employees have a higher annual regulatory burden per employee than firms employing more than 500 employees.

the capital crunch grows more severe as banks reduce lending to riskier borrowers. to which category small businesses belong. Most small businesses are not technically savvy enough to use the Web effectively. . have affected lending to small-scale entrepreneurs.5. During downturns in the economy. especially in the last decade. when the pace of technological advancement has been phenomenal. Changes in banking organizations. BEING UP-TO-DATE WITH TECHNOLOGY: Small business owners are generally laggards in technology adoption. 6. The primary reason is the high cost of keeping up with the latest technological innovations in the particular industry. I personally find that even people in IT industries and big companies do not realize their importance yet. Also new technology usually brings the promise of reduced costs and/or increased revenue. Lenders require security for loans and many smaller businesses do not have adequate security to be accepted. One cannot talk about new technology without mentioning the Internet. ACCESS TO ADEQUATE CAPITAL: Many small businesses find it very difficult to obtain finance. While blogs are becoming more popular. The major risk with a small business living with outdated technology is that of competition leapfrogging over it and quickly reducing it to oblivion. particularly large mergers. especially if they are starting up or if they are a relatively new business. They also cannot afford to hire expert site designers to map out a good online strategy.

y It is found that there is a significant relationship between occupation and problem faced by the customer. it is suggested that the government should provide financial facility (short term and medium term loans) to those retailers who are financially weak. Though bad debts are unavoidable in business. For that it is suggested that the retailers should maintain friendly relationship with their customers. Then only the retailers can escape from this critical problem:y It is found that majority of the sample respondents are suffering from the problem of limited financial resources. Hence it is suggested to the retailer that may try to cater the needs of different occupation group of people by selling the products at reasonable price. it can be minimised. y It is found that majority of the sample respondents ranked poor market condition as their major problem. y It is found that price discrimination by the employees and retailers is considered as major problem to the customers. must assess the credit worthiness of their customers before allowing credit and allowing credit sales only to the regular customers. Hence. Hence. . Hence. it is suggested to the retailers could successfully market their products by more careful identification of market segments and providing service superior to that of the competitors.SUGGESTIONS y It is found that majority of the retailers are suffering from the problem of bad debts. ensuring the availability of branded and non-branded products etc. it is suggested that the retailers and \ employees should try to follow some ethics in price fixation and avoid the discrimination in fixing price failure of which would dampen their business growth in a long run.

CONCLUSION Retail is clearly the sector that is poised to show the highest growth in the next five years. preferred result could be accomplished. Based on the findings of the study. various suggestions were made. . There are about 300 new malls. The present size of the organized retailing sector is approximately 3% and is expected to grow to 25-30% by the year 2010.5%. This sector contributes 10% of India's GDP and the current growth rate is 8. as both the present players and new entrants are gearing up to explore the market. If those will be properly considered by the retailers. The sector is set for a revolution. 1500 supermarkets and 325 departmental stores currently under construction.

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