FOOD AND GROCERY RETAIL IN BELGAUM

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In belgaum the research has been conducted about organised and unorganised

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factors affecting the choice between organized and unorganized retail outlets for purchase of groceries and vegetables

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Grocery

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INDUSTRY The country has witnessed a retail revolution in recent years particularly in urban revolutionary changes in the last few years- from poorly stacked ‘kirana’ stores Today most families prefer to purchase their goods at ‘one stop shops’ where everything is available under one roof. The grocery industry is one of the most important industries in the Indian economy The price of food and other staples has a day to day impact on the lives of consumers

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INDUSTRY Big houses like Tatas , Piramals , Rahejas , S.Kumar’s , Biyanis , RPG, Reliance have already made their presence felt in organized retailing by investing significantly in either of the format like malls / big departmental stores / chain stores/discount stores

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Evolution of Indian Retail Industry Barter system was known as the first form of Retail Followed by Kirana Stores and Mom & Pop Stores Finally Manufacturing era necessitated the small stores and specialty stores It was a seller’s market till this point of time with limited number of brands available 1980s experienced slow change as India began to open up economy. The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers.

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Grocery store A grocery store is a store that retails food A grocer, the owner of a grocery store, stocks different kinds of foods from assorted places and cultures, and sells these "groceries" to customers. Large grocery stores that stock products other than food, such as clothing or household items, are called supermarkets .

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Grocery store Small grocery stores that mainly sell fruits and vegetables are known as produce markets (U.S.) or greengrocers (Britain), and small grocery stores that predominantly sell snack foods and sandwiches are known as convenience stores or delicatessens . Today, grocers deal in a wide range of staple food-stuffs including such perishables as meats, produce and dairy products

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Evolution of Indian Retail Industry Post 1995 onwards saw an emergence of shopping centers Emergence of hyper and super markets trying to provide customer with 3 Vs - Value, Variety and Volume Expanding target consumer segment

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CURRENT SCENARIO COMPETITOR ANALYSIS:-

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CURRENT SCENARIO INDUSTRY GROWTH RATE:- Food and grocery retail industry is expected to have a grow at a rate of 30 %

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Indian retail Industry is Fifth largest in the world. The current penetration pegged at 5-7 per cent. Accounts for 24% of country’s GDP and 8% of the total employment. Food is the largest segment in terms of its . Industry Description

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EVOLUTION AND TRENDS IN ORGANIZED RETAILING FORMATS AND RETAIL OUTLETS

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Historical Indian retail market consisted of weekly markets, village fairs and mela’s and the 19 th century gave birth to the retail outlets which took the form of convenience stores, Mom and Pop stores/ kirana stores . This helped the consumers on to stick to a particular store for their day to day requirements and also avail the credit purchasing facility . And in the 1980’s people have seen the new formats like supermarket, departmental stores and discount stores entering into the Indian retail space.

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Hyper marts/supermarkets Mom-and-pop stores Departmental stores Convenience stores Shopping malls E-trailers Discount stores Vending Specialty stores Retail formats in India

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Key Success Factors for the industry

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ADVANTAGE Major contribution to GDP: the retail sector in India is hovering High Employment Generator Low Labor Cost Technology intensive industry Shopping convenience Changing consumer habits and lifestyles

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Dis -ADVANTAGE Policy related issues Lack of Skilled Labor Lack of adequate utilities

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Opportunities Potential for investment. Sectors with high growth potential. Fastest growing formats. Rural retail. Heavy flow of capital will help in building up the infrastructure for the growing population

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challenges Political issues. Social issues. Inflation. Lack of differentiation among the malls that are coming. Poor inventory turns and stock availability measures. Big players can knock-out competition Current Independent Stores will be compelled to close

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MAJOR INDIAN RETAILERS Lifestyle International Reliance Retail-Formats: Reliance ADAG Retail-Format Tata Group-Formats etc

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Industry analysis Grocery stores are the traditional destination for consumers looking to stock up on many of the items they use on a day-to-day basis. The need for shoppers to replenish their pantries and refrigerators typically results in frequent trips to the supermarke t .

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Industry analysis Grocery stores are the traditional destination for consumers looking to stock up on many of the items they use on a day-to-day basis. The need for shoppers to replenish their pantries and refrigerators typically results in frequent trips to the supermarke t .

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ORGANISED vs. UNORGANISED NOT STACKED 200 Sq.Ft. LOCATION ONLY DRY ITEMS DAILY ITEMS ONLY DIS.ON TOTAL COST NO PARKING NO LOYALTY PROGRAMS NO USE OF TECHNOLOGY WELL STACKED ITEMS CLEAN ENVIROINMENT FRESH STOCK MORE VARIETY LESS PRICE PARKING FACILITY LOYALTY PROGRAMS BARCODE SYSTEM

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ORGANISED vs. UNORGANISED

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ORGANISED vs. UNORGANISED

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ORGANISED vs. UNORGANISED

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the factors affecting the choice between organized and unorganized retail outlets for purchase of groceries and vegetables

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Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46m ² ) in size. Unorganized market: Rs. 583,000 cores Organized market: Rs.5, 000 cores Over 4,000 new modern Outlets in the last 3 years Over 5,000,000 sq. ft. of mall space under development The top 3 modern retailers control over 750,000 sq. ft. of retail space Over 400,000 shoppers walk through their doors every week 47 global fortune companies & 25 of Asia's top 200 companies are retailers Situational Analysis

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Big Bazaar.(2007 in Belgaum) Aditya Birla , More.(2008-2 outlets, 2010-1 outlet, 2011-1 outlet) Reliance fresh.(2010) All unorganized outlets Competitors analysis in Belgaum

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Customer ’ s perception towards organized retail outlets and kirana stores on the basis of various parameters. To determine who goes organized or unorganized or both for different factors. To understand the overall shopping habits of customer. To know the major factors considered by customers while shopping in organized or unorganized retail shops. Objectives ( Factors Considered while Purchasing of groceries

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Analysis of Grocery Purchase among the Women in Belgaum

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grocery purchase

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Frequency of shopping

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Buying of Groceries

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Shopping place for groceries

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Age of the respondents Age Total no of Respondents 16-25 60(24%) 26-35 99(40%) 36-45 52(21%) 46-55 34(13%) 55-65 5(2%)

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Purchasing of groceries in particular outlet

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On what basis do you purchase groceries

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Experience while grocery shopping

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Monthly expenditure on Groceries Total no of Respondents >1000 17 (8%) 1000-2000 80 (35%) 2000-3000 33 (14%) 3000-4000 21 (9%) >4000 78 (34%)

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Why you don’t go for groceries shopping with your family

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Customer’s perception towards organized retail outlets and kirana stores Total no of Respondents Organized retail outlet 114(50%) Unorganized retail outlet 113 (50%) Total no of Respondents Ease of handling of goods purchased 77(16%) Less time consumption 83(17%) Location 131(27%) Parking 83(17%) Presence of branded product 15(3%) Value for money 38(8%) Ambience 2(0%) Socio economic status 37(7%) Previous Experience 24(5%) Organized retail outlet Unorganized retail outlet

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To determine who goes organized or unorganized or both for different factors Age (16-25) 60 Age(26-35) 99 Age(36-45) 52 Age( 46-45) 34 Age(56-65) 5 Total 250 Org Un-Org Org Un-Org Org Un-Org Org Un-Org Org Un-Org - 30 13% 16 9% 49 22% 44 19% 21 7% 32 14% 12 5% 21 4% 3 1% 2 1% 229 21

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Overall shopping habits of the customers Total no of Respondents Price 65(14%) Brand name 44(11%) Quality 87(21%) Discount 93(22%) Packaging 59(16%) Uniqueness 56(13%) Wide product assortments 8(2%) Others 6(1%)

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The major factors considered by customers while shopping in organized or unorganized retail shops Organized retail outlet The major factors considered by customers while shopping in organized retail outlet i s Price Quality/Uniqueness Discount Packaging Parking Variety of product Ambience Status Ease of handling of goods purchased Value for money

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The major factors considered by customers while shopping in organized or unorganized retail shops Un-Organized retail outlet The major factors considered by customers while shopping in Un-organized retail outlet is Quality Price Location Previous experience Availability of products

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In Belgaum city there are 6 outlets of the organized retail outlet Big Bazaar (1), More (4), Reliance fresh. (1) They are very well known in the terms of facilities and discounts, wide product assortments, Offers which they always keep for the customers and because of this unorganized is reaming slightly back Un-organized retail outlet needs to provide more facility in terms of parking and wide product assortments, packaging etc A majority of unorganized outlet is keen to stay in the business and Compete, while also wanting the next generation to continue likewise. They can go for something new Suggestion

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Most unorganized retailers are committed to remaining independent and Barely but they can prefer to become franchisees of organized retailers. Some women’s go for status sake for organized retail outlet so they can stop it and go for both the retail outlets Un-organized retail outlets they need to keep some offer ,Creditability facilities to attract the customers Un-Organized need to improve on their service Suggestion

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Conclusion

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Thank you Sarika.C

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