FoodWorld(A): Market Entry Strategy

Bhavnita Naresh Kumar 12512

Objective
To design the retailing offer by synchronizing the

retailing format and services offered with the customer needs and expectations

Retail Market Scenario in India

Indias population as pern1991 population census is

846 million One fourth of the population lived in 3768 towns & remaining in in 627,000 villages The retailing system in India operated at three parallel levels :
Formal sector Informal sector Fair price shops

Distribution of stores
Small retail shops (300 400 sq. feet) 64% of total

retail stores Large & very large retail shops (800 sq. feet) - 11% of total retail stores
Type of retail outlets Small Medium Large Very Large Total Proportion (in %) 64 25 8 3 100

Customer Needs and Requirements

Marketing Strategy Elements

Target Segment
Middle and upper middle class families

Positioning Strategy
Store ambience and fit-out with air-

conditioned shops Offered top brands in the market

Site Selection
Residential high streets with minimum 6000

households in 2-3 km radius Shopping area of the locality

Merchandising Strategy and Supply Chain Management

To carry every item carried by a typical target

household Item were classified into four categories: destination, strategic, convenience, and specialty Destination category was used to attract customers Distribution strategy policy to minimize suppliers was followed Regional hubs were created from where the supplies were coordinated to different outlet

Pricing
In line with the corner grocer SKUs in destination or staples category are discounted

to match the cheapest in the city Remaining destination category to be in line with the prevailing market prices Top 15 branded SKUs at 3% below maximum retail price Mega price offer on at least 2 SKUs every month Quality discount savings on food SKUs Fresh vegetables, top 5 items would be cheaper than the market price Fruits sold at a premium quality price (price- quality relationship)