Retail Management CIA 1.1 PRESENTED TO PROF. NIKHIL VARGHESE PRESENTED BY 20111302 Aaron Cross 20111310 Sunil Varma 20111311 Varian Walter 20111330 Omar Ahmed 20111341 Samyam Shetty 20111346 Shruthi Chada
ABOUT Dmart is a leading retail chain in India, known for its high- quality products and affordable prices. The company is owned and operated by Avenue Supermarts Limited, and has over 220 stores across 11 states in India. Dmart offers a wide range of products across categories such as food and grocery, household items, fashion, and beauty products. With its focus on offering value for money, Dmart has become a popular choice for customers across the country. The company's success can be attributed to its efficient supply chain, strong vendor relationships, and commitment to providing a seamless shopping experience for its customers.
SWOT ANALYSIS STRENGTHS Efficient Inventory Management: D-mart has a strong inventory management system, which ensures that the products are always in stock, and customers can find what they need quickly. Good Store Layout: D-mart has a well-organized store layout, making it easy for customers to find what they need quickly. Strategic Store Location: D-mart has strategically placed its stores in high-traffic areas, making it convenient for customers to visit the stores. Low Price: D-mart is known for its low prices, which attracts a large customer base. Efficient Supply Chain: D-mart has an efficient supply chain, which ensures that the products are delivered on time, and the operational costs are kept low. WEAKNESSES Limited Store Size: D-mart stores are smaller compared to some of their competitors, which may limit their product range. Limited Online Presence: D-mart has limited online presence, which may limit its reach and ability to attract customers who prefer to shop online. Limited International Presence: D-mart does not have a significant international presence, which limits its growth potential. Limited Loyalty Programs: D-mart does not have a loyalty program, which may make it challenging for them to retain customers.
SWOT ANALYSIS OPPORTUNITIES Expansion: D-mart can expand its store network to new cities and regions, which can increase its customer base and revenue. Technology: D-mart can invest in new technologies such as e- commerce, mobile applications, and artificial intelligence, which can improve the shopping experience for customers and increase efficiency. Private Label Products: D-mart can develop its own private label products, which can increase profitability and differentiate it from competitors. Diversification: D-mart can expand into new product categories, such as fashion or beauty, which can attract a wider customer base. THREATS Competition: D-mart faces stiff competition from other retail chains, which may impact its market share and profitability. Economic Slowdown: Economic slowdowns can impact consumer spending, which may result in lower sales for D-mart. Changes in Regulations: Changes in regulations, such as tax policies, can impact D-mart's profitability and expansion plans. Changing Consumer Preferences: Changing consumer preferences, such as a shift towards sustainable and eco-friendly products, can impact D-mart's sales and market share.
CUSTOMER ANALYSIS Demographics D-mart caters to a diverse customer base across various age groups, income levels, and geographic locations. Its core customer base consists of middle to lower-income groups who are value-conscious and price-sensitive Psychographics D-mart customers are generally value-conscious, and they prioritize low prices over brand names. They are willing to trade convenience for better prices and are willing to shop in bulk to save money. Behavioral D-mart customers tend to be frequent shoppers who visit the store at least once a week to purchase their daily necessities. They tend to be loyal to the brand and are more likely to recommend it to their family and friends. Geographic D-mart stores are located in urban and semi-urban areas, targeting customers in the middle and lower-income groups Purchase Behavior D-mart customers tend to purchase a wide range of products, including groceries, household items, and personal care products. They often purchase in bulk to take advantage of the low prices.
PRODUCT ANALYSIS Product Mix D-mart offers a wide range of products across different categories, including groceries, home appliances, and electronics, attracting a diverse customer base. The product mix is designed to offer a one-stop-shop solution for customers Product Quality D-mart's products are known for their high quality and affordability, which is one of its unique selling propositions. Product Packaging D-mart offers products with minimal packaging, which aligns with its strategy of low-cost operations and environmental sustainability. Product Pricing D-mart offers products at a low price, which is its main competitive advantage. It achieves this by leveraging its efficient supply chain management system and bulk purchasing Product Promotion D-mart focuses on offering the lowest prices and discounts to attract customers rather than promoting specific products. It also uses promotional events such as festive sales and end-of-season sales to attract more customers.
Store Location Analysis PROS: 01 High-Traffic Areas D-mart stores are located in high-traffic areas, making it convenient for customers to access the store easily. This can result in higher footfall and revenue. 02 Accessible Locations D-mart stores are typically located in easily accessible locations, such as near public transport or on major roads. This can attract customers who prefer to shop at stores that are easily accessible. 03 Strategic Location D-mart stores are often located in semi-urban or suburban areas, which can attract customers who are looking for affordable and quality products. 04 Proximity to Residential Areas D-mart stores are often located close to residential areas, which can attract customers who prefer to shop close to their homes. 05 Parking Facilities D-mart stores often offer ample parking facilities, which can attract customers who prefer to drive to the store.
Store Location Analysis CONS: 01 Limited Store Size D-mart stores are often smaller than its competitors, which may limit the range of products it can offer. This can result in customers choosing to shop at stores with a larger product range. 02 Limited International Presence D-mart has a limited international presence, which may limit its ability to compete with other retail chains that have a global presence. 03 Limited Online Presence D-mart has limited online presence, which can limit its ability to attract customers who prefer to shop online. 04 Limited Brand Awareness D-mart is a relatively new brand compared to its competitors, which can result in limited brand awareness and lower customer loyalty. 05 Limited Customer Experience D-mart stores may offer a limited shopping experience compared to some of its competitors. For example, it may not have the same level of customer service or store ambiance as larger retail chains. This can result in customers choosing to shop at stores that offer a better customer experience
STORE LAYOUT Entry and Exit Dmart stores typically have separate entry and exit points, with security personnel stationed at both. Customers are required to have their bags checked before entering the store. Grocery and Food Products The first section of the store typically features grocery and food products, including fresh produce, packaged food items, and frozen foods. Dmart is known for offering a wide range of products in this category, and the section is usually well-organized and easy to navigate. Household Items The next section of the store typically features household items, including cleaning products, kitchenware, and home decor. This section is usually laid out in a way that makes it easy for customers to find what they're looking for. Fashion and Apparel Dmart also offers a range of fashion and apparel products, including clothing, footwear, and accessories. This section is usually located towards the back of the store and features a range of options for men, women, and children. Checkout and Payment: The checkout area is typically located near the exit of the store, with multiple cash registers to minimize wait times. Customers can pay using cash, card, or mobile wallet options.
Suggestions 1 Focus on Social Media Marketing: D-mart can improve its st ore recognition and consumer traffic by focusing on social media marketing. This can include creating engaging content, running targeted ads, and responding promptly to customer inquiries and feedback. 2 Partner with Local Businesses D-mart can attract more consumers by partnering with local businesses, such as restaurants or cafes, to offer discounts or other incentives to their customers. 3 Offer Home Delivery Services D-mart can improve consumer traffic by offering home delivery services for online orders. This can attract customers who prefer the convenience of shopping from home 4 Conduct Market Research D-mart can conduct market research to better understand consumer preferences and shopping habits. This can help it identify new opportunities to attract more customers and improve store recognition. 5 Improve Customer Engagement D-mart can improve customer engagement by organising events or workshops, such as cooking classes or product demos, that can help customers connect with the brand and its products.
Observations 01 Turnover D-mart stores are located in high-traffic areas, making it convenient for customers to access the store easily. This can result in higher footfall and revenue. 02 Accessible Locations D-mart stores are typically located in easily accessible locations, such as near public transport or on major roads. This can attract customers who prefer to shop at stores that are easily accessible. 03 Strategic Location D-mart stores are often located in semi-urban or suburban areas, which can attract customers who are looking for affordable and quality products. 04 Proximity to Residential Areas D-mart stores are often located close to residential areas, which can attract customers who prefer to shop close to their homes. 05 Parking Facilities D-mart stores often offer ample parking facilities, which can attract customers who prefer to drive to the store.
Observations Varian & Sunil Aaron & Shruthi Omar & Samyam Turnover Footfall Weekday: 500Weekend: On weekends 3000- Weekdays 500- 1500Per Cycle:1500 4000On weekdays 1000Weekends 2000- 500-1000 3000 Which products sell Daily needs and FMCG FMCG the most? Homecare Average bill in 2000 1500 basket Auctions for product Yes, Currently P&G and placement HUL has eye to buy and end of elise spots Suppliers FMCG, Unbranded Local manufacturers and Manufactures FMCG No. Beep per second 6 5 4 Most seen Brand In FMCG the observation P$G, Unilever P&G was HUL and P&G Restock Daily Daily, on sundays Daily sometimes twice SKU for some The stock is kept on top of No special storage Stock is on top of the shelf products shelf for easy use except for dmart for FMCG products. products Special storage in the topmost floor Heavy products at the Products that sell the corners of the most ie Fmcg store.Products which are products are usually bought together are kept at eye far so that a consumer levelDiscounted Product walks and gets lured in products are usually FMCG products are Placement(observati abundant in the ground other deals.There are behind the floor.There are clothing ons) products on the first floor. warehouses connected to aislesVegetables and each floor where heavy other low expiration and fast selling products products are at the are kept.Lightweight and left most end of the fast selling Products have storeBigger versions stock at the top of their of products are on shelf. the top self D Mart Brand The brand is normally Position positioned just below the eye to buy level. Category of DMart Plasticware, Grains, Brand Electronics & Apparael Price difference of 30% to 60% 20-50 percent local market and D Mart Age and gender of 30-50 and their Mostly middle age people Customers accompanied by around the age 25-50. childern Children also present with their parents
The observations suggest that D Mart is a popular retail store with a high footfall, especially on weekends when it can be as high as 3000-4000 customers per cycle. The store primarily sells daily needs and home care products, as well as FMCG products, which are the most in demand. The average bill in the basket is around 1500-2000 rupees. The store also holds auctions for product placement, which are currently sought after by leading FMCG companies such as P&G and HUL. D Mart sources its products from FMCG and unbranded manufacturers, as well as local manufacturers. The store restocks its inventory daily and sometimes twice on Sunday Product placement in D Mart follows a specific strategy, with heavy and fast- selling products placed at the corners of the store, while lightweight and fast- selling products are kept on the top of their shelves. Products that are often bought together are placed far apart to encourage customers to walk through the store and get lured into other deals. FMCG products are usually at eye level, while discounted products are placed behind the aisles. Vegetables and other low-expiration products are positioned at the left-most end of the store, and bigger versions of products are placed on the top shelf. The store's clothing products are located on the first floor. D Mart has its own brand, which is positioned just below the eye-to-buy level, and the product categories of this brand include plasticware, grains, electronics, and apparel. The prices of D Mart products are generally 30-60% lower than those of the local market, making it a preferred shopping destination for customers. The age group of customers visiting the store ranges from 30-50, and they are often accompanied by their children. In summary, D Mart's popularity can be attributed to its strategic product placement, affordable prices, and a wide range of products catering to daily needs and home care, making it a one-stop-shop for its customers.
CONCLUSION In conclusion, the SWOT analysis of DMART has identified the company's strengths, weaknesses, opportunities, and threats. Its strengths include efficient inventory management, good store layout, strategic store location, low prices, and efficient supply chain. Its weaknesses include limited store size, limited online presence, limited international presence, and limited loyalty programs. The opportunities for DMART include expansion, technology, private label products, and diversification, while its threats include competition, economic slowdown, changes in regulations, and changing consumer preferences. The analysis also highlighted the customer analysis, product analysis, and store location analysis. To improve its performance, DMART can focus on expanding its online presence, creating awareness through social media, and improving customer experience in its stores. By addressing these issues, DMART can maintain its position as a leading retail chain in India and improve its competitiveness in the industry.
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