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marker research on d mart


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Market ResearchIn Retail“D-mart”(Powai) : 

Market ResearchIn Retail“D-mart”(Powai)


GROUP MEMBERS Abhijeet Amit Joel Yogesh


MISSION Supermarket chain D-Mart intends to launch aggressive expansion plans for the next two years. The retailer has 29 stores in Maharashtra and Gujarat, and is likely to double that number in the next two years. The plan is to close financial year 2010 with 35 stores, up from 29. D-Mart will add 10-15 large-format stores of 30,000-40,000 sq. ft every year for the next two years.


ACHIVEMENTS Other midsize retailers either shut stores or reduced their number during the downturn. D-Mart enjoys an edge due to its combination of large stores and a value platform. Launched in 2001-02 by Avenue Supermarkets Pvt. Ltd, the chain has stores of 8,000-30,000 sq. ft, compared with up to 4,000 sq. ft for other typical supermarkets. D-Mart executives credit the chain’s operating model for its smooth sailing. The chain pays its suppliers within 48 hours of delivery, gaining a 1-2 per cent advantage on cost margin over other national retailers.

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Competitive Rivalry Within industry Porter’s Five Force model Bargaining power Of suppliers Bargaining power Of Customer Threat of New Entrants Threat of Substitute

Competitor Rivalry within industry : 

Competitor Rivalry within industry D-mart is a retail store for buying monthly groceries, dry storage and good vegetables along with a few extra Items likes clothes and home appliances. D-mart’s main rival in powai is Haiko. But with its lower prices and good total deal it out smarts Haiko in monthly groceries and dry storage. Only main difference is the non veg section and better products in every department i.e. targeting above middle class customers while D-mart targets Middle and lower middle class customers. “So in all targeting different segments”.

Competitor Rivalry within industry : 

Competitor Rivalry within industry Relative price performance of substitute Buyer switching cost Perceived level of product differentiation Number of substitute products available in the market Ease of substitution.

Bargaining of the supplier : 

Bargaining of the supplier D-Mart’s mail reason for making products available in costs less than the MRP is it collects the products from the distributers or the factory itself to reduce the cost of the middle man. The chain pays its suppliers within 48 hours of delivery, gaining a 1-2 per cent advantage on cost margin over other national retailers. The main bargaining is done on the offers available along with its product. As purchasing is done in lots, huge discounts are available.(Purchase for all stores in Mumbai is done at one time).

Threat of new entrants : 

Threat of new entrants With the advent of malls in near by areas they have posed serious threats to D-mart powai. But because of its reasonable prices on bramds the store have managed to retain their customers in their segment.

Bargaining power of the customers : 

Bargaining power of the customers Buyers look for offers when they buy in lots, so D-mart offers them free products on various products. Buyers of the products in D-Mart powai are the middle class and the lower middle class. But because of its close proximity to Hiranadani powai it also attracts rich sections of the society. As the store has most of the well known brands in their shops and below MRP is their main USP so the buyers are loyal to D-Mart. They by doing so also avoid backward integration of their customers i.e. the small retail shops which sell products at MRP.

Market Segmentation : 

Market Segmentation 1. Demographic Age 10 year and above Gender All Family size All Family life cycle All Income Monthly income of 10000 and above

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1. Demographic Occupation All Education Not required Religion All Race All Nationality Indian

Market Segmentation : 

Market Segmentation 2. Geographic City Mumbai(powai) Density 5 Km radius 3. Psychographic Social class SEC B & C Life Style All Personality All

Market Segmentation : 

Market Segmentation 4.Behavioral Occasion Regular Benefits Quality, Service User Status Medium Loyalty Status Medium Attitudes towards products Positive

Research : 

Research Present in a good location where all the classes of customers are available. Cheaper than the Retail shops around. Various brands used in house hold are available.(From best to Middle range) Parking -1/5. Availability of trolley-5/5 (on weekdays) 3/5 (in week ends). Packaging -3/5. Ambiance & décor- 3/5.

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Store range -3/5. Distance between Racks -2.5/5. Interior design of the shop- 4/5. Waiting Q - 4/5. Billing -3/5. Lighting -4/5. Trail rooms- 3/5. Toilets -3/5. Mixing of brands -Nil Offers -4/5 Music -3/5. Service in shop- 4/5.

Conclusion : 

Conclusion Though the D–mart powai has a lot of competitors in close proximity but due to its reasonable rates and good offers it is able to retain its customers. Average service and bad parking is covered by the price and brand range. Thus to avoid further competition they need to step up with their service and bigger brands in clothes and appliance range.

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