MBA-AB 07-09 Semester III Agri-Retail management

Presentation by: Group-7

Group members
Sr No 1 2 3 4 5 6 7 8 PRN 07020242017 07020242024 07020242029 07020242031 07020242044 07020242045 07020242046 07020242055


General outlook of industry

India-Fifth largest retail destination 22 per globally cent
Modern retail share in the total retail market by 2010.

Largest number of retail outlets: India

Source: India Brand Equity Foundation

Organised retail has increased its share

• Source: IBEF: Delloite june.08

The fastest growing segments in that order
Estimates : the organised segment to account for 25 per cent of the total sales by 2011. Rural retail market is estimated to cross US$ 45.32 billion mark by 2010 and US$ 60.43 billion by 2015, says a study by CII and YES BANK.

Mall space

Source: Jones Lang LaSalle's third annual Retailer Sentiment Survey-Asia.

Fruit and vegetable retail
• 40% is wasted currently between farm and folk. • The vegetable and fruit production contributes more than 30 per cent of the agriculture GDP. • The crop diversification has led to rise in horticulture production, which has reached 185.2 billion tonnes last year

• Widespread fragmentation in the supply chain
• Low productivity levels • Huge post harvest losses
• • • • • Inadequate storage Cold chain Transport infrastructure Logistics Supply chain management

• Solution: • Organised and traditional retailing • Export potential also needed to be taken care of.

Overview of selected company

About Subhiksha
• Started in 1997 • Founded by Mr. R. Subramanian, an IITChennai & IIM-A alumni. • India's largest supermarket, pharmacy and telecom chain. • >90 cities. • Vision: Deliver consistently value and savings!!



Source : Digital inspiration june1,07

Retailing and legal issues

Store design


Wide Selection of Goods
• Supermarket • Fruits and vegetables • Pharmacy • Telecom

• • • • • Groceries Food Child care House hold Toiletieries

Subhiksha: Planning for a hybrid model
• Display counters for self-service in addition to, • Feed in orders into a computer and products are supplied from a warehouse. • With foreign retail chains and top Indian groups spending large on retail, Subhiksha could still make its presence felt owing to the first mover advantage, • lower infrastructure cost and better acquaintance of the local geography and customer.


Pricing Promise...
• • • • • Sharply discounted prices. On variety of items. On all days. Irrespective of purchase. Discount offered is also more comparatively.

Every Day Low Pricing

How much discount does Subhiksha offer?
• Supermarket - An average discount of 8-10% on whatever you buy. • Pharmacies- Flat discount of 10% is given on all medicines. • Fruits and vegetables section- Fresh fruits and vegetables - direct from the farm - at very reasonable prices.

Low prices..How??
• • • • Preferring Lease-rental route. Greater control on the operations. Procure directly from manufactures. Buy in large quantities and get large discounts.

Bacchat Mera Adhikaar!!

• Reliance Retail loses 5 execs to Subhiksha at VP levels…tough competition…. Source : 13 Dec, 2006, 0053 hrs IST,Rajiv Banerjee, TNN, Economic times. • What does this confers to us?

Ethical and Legal Issues in Retailing
• • • • • Focus on the Customer Dealing with Ethical Issues Social Responsibility Environmental Orientation Legal Framework

Legal issues for Subhiksha
• The FDA had earlier temporarily cancelled the chain’s license on two separate occasions -March 1to10 and June 23 to 27 - for failing to comply with hygiene regulations of the state in the food packaging area within its warehouses.

CRM Issues: Feedback

Mobile store
• • • • • • Largest mobile retailer. Lowest price on all phone brands. Variety of brands. Comparison of models across the companies. Facilitates enquiry. Facilities:

Other offering
• Opening time: 9am to 9pm. • Guaranteed delivery.
▫ Delivering time:2 to 6 hrs.

• Return policy. • Real customer support. • Getting nearest store location by SMS.


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