Course Instructor: DR.

ARVIND KUMAR Course Title:- MARKETING MANAGEMENT

Academic Task No.: CA2 Academic Task Title: COMPONY BASED ASSIGNMENT

Date of Allotment: 6 August 2019 Date of submission: September 17, 2019

Student’s Roll no: A26 Student’s Reg. No: 11910931

Evaluation Parameters: (Parameters on which student is to be evaluated- To be mentioned by students
as specified at the time of assigning the task by the instructor)

Learning Outcomes: I have successfully studied about different marketing strategies applied by a very
profitable and successful retail chain i.e. DMART. The strategies adopted the company were very
localized and effective in context of Indian market.

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student’s
work or from any other source except where due acknowledgement is made explicitly in the text,
nor has any part been written for me by any other person.

Student’s Signature:

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: Max. Marks: …………………………

DMART
About the Company:

Dmart is an emerging national supermarket chain, with a strong focus on value-retailing. DMart
was conceived by value investor Mr. Radhakishan Damani in the year 2000, operating a single
store in Maharashtra. With a mission to be the lowest priced retailer in its area of operation,
DMart has grown steadily over the years and operates 176 stores in 11 States and 1 Union
Territory of India with Retail Business Area of 4.94 million sq. Ft.

The supermarket chain of DMart stores is owned and operated by Avenue Supermarts Ltd.
(ASL). The company has its headquarters in Mumbai.
The brands D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour, etc are brands
owned by ASL

Company’s Beginning:

By the late 1990s, Company’s founder, Mr. Radhakishan Damani, was already established as
one of the more successful and well-known value investors in the Indian equity markets.
He was anxious to start a business beyond investing, which would enable him to test his
hypothesis about the Indian consumer. After a couple of years of introspection and research, he
decided to start a grocery retail chain, focusing primarily on the value segment.
Thus, DMart retail chain, was conceived by Mr. Damani in the year 2000 and DMart took eight
years to start its first ten stores.
Compony mission:

At DMart, we research, identify and make available new products and categories that suit the
everyday needs of the Indian family. Our mission is to provide the best value possible for our
customers, so that every rupee they spend on shopping with us gives them more value for
money than they would get anywhere else.

The below Image Shows how DMart has a consistently growing presence across India:
Company’s Distribution Centres:

Company operates distribution centres and packing centres, which form the backbone of
Dmarts supply chain to support the retail store network.
As of 31st March, 2018, company had 24 distribution centres and 6 packing centres in
Maharashtra, Gujarat, Telangana and Karnataka.
Key Product Categories & Revenue (%)

Company’s Financial Performance:

Product in the Marketing Mix of D-Mart:

D-Mart is a one-stop outlet that offers a wide range of choice in home and
personal products to its customers. It believes in mass commodities and
therefore its products are available in different sizes and colours. Apparels
are displayed in a systematic manner in accordance with their size options.
Retail price, actual discount and offer price are displayed on the tags for
the convenience of customers. Area of the outlet is divided in accord with
products as every product has a separate section from which a customer
can easily make a choice.

Place in the Marketing Mix of D-Mart:

D-Mart has a reach in most of the important cities in India. It is able to

provide its products through a network of one hundred and ten stores and
has its headquarters base in Mumbai, India. D-Mart has set up its stores at
very strategic points to gain maximum advantage from its locations
because easy accessibility and proper transportation facilities are very
important for the survival of any outlet.

Price in the Marketing Mix of D-Mart:

D-Mart is a departmental store and believes in levying an economic pricing

policy for its products. As mass merchandise is its mantra it has kept prices
at reasonable and economic rates so that a customer can easily purchase
it. D-Mart has adopted a simple strategy of garnering huge sales through
affordable prices and keeping price range within reach of customers is its
top priority.

It offers a 5% of minimum discount on MRP at any given time on all items

except fruits, grocery, vegetables and medicines. D-Mart periodically offers
its customers various incentives and lucrative discounts during festival
seasons. Customers at such times buy in bulk quantities resulting in a huge
volume of sales. This is the reason why such stores are able to earn
greater revenues.
Promotions in the Marketing Mix of D-Mart:

D-Mart is one of the largest multi-brands in India and to maintain its

position as one of the best, company has adopted several promotional
activities. It offers gift coupons to reward its employees and during certain
periods to boost its sales, coupons are also allotted to customers when
they meet certain standards of bulk purchase, for example, there was a
10% off on prices of Cadbury products during Raksha Bandhan. D-Mart
also creates brand awareness and visibility through hoardings. Latest offers
and schemes can be easily known through its promotional activities that
are published in newspapers.

Secrets behind the success of DMART:

Radhakishan Damani, the 61-year-old founder and promoter of retail chain

D-Mart, was a legendary investor and share trader before he became a
legendary entrepreneur. The stunning success of D-Mart is credited entirely
to Damani. The public offer of D-Mart's holding company Avenue
Supermarts today made a spectacular debut on BSE, as its shares got
listed at a 102.14 per cent premium. D-Mart is valued at Rs 39,400 crore.
Damani is a quiet man who keeps a low profile, but his winning traits are
too evident to be missed. Below are his 10 approaches to business that led
him to roaring success:

1.Keep an eye on the long term: Like Warren Buffett, Damani too has
been a value investor who would take canny view of the long term. When
he turned an entrepreneur, he retained the same approach and built D-Mart
without relying on any quick shortcuts.

2. Small is big: Damani started small and did not hurry to expand. Low
scale gave him a better control of supply chain and allowed him to focus on
profitability right from the beginning. In the 15 years of its existence, D-Mart
has turned a profit each year.

3. Value your people: Damani began with buying a franchise of Apna

Bazar. That was when he began building personal relations with vendors
and suppliers. He values both and they never let him down. The stores
never go out of stock.
4. Buy low, sell cheap: Damani knew what he was doing: offering people
consumer products of daily use at heavy discounts. One of his methods
was to pay his suppliers and vendor within days instead of weeks which
was the industry norm. They provided the goods at a cheaper rate to him in
lieu of early payment. He passed on the cost benefits to his customers,
which ensured consistent footfall.

5. Go local: Even though D-Mart is the most successful grocery retail chain
of the country, Damani has confined it to the western states. One reason is
his reliance on local supplies instead of elaborate supply chains.

6. Go slow: Though D-Mart started 16 years ago, it still has 119 stores in a
few states, a small number compared to those owned by Ambani and
Biyani. Instead of rapid expansion, Damani adopted a slow pace which
gave him his focus on profitability. That's why D-Mart has not shut a single
store since it started and generates higher per store revenues than the
stores of Ambani or Biyani.

7. No frills: Damani knew the purpose behind his enterprise was to supply
consumer goods at lower prices. He did just that, without wasting his
energy on frills. His stores have limited range of products and have simple
decor. People come for just one thing: lower prices. The trait reflects in his
own appearance. He wears only white shirt and white trousers, for which
he is called "Mr White and White".

8. Ignore the herd: Damani had learnt and practised with success the art
of not following the herd while he was an investor. There have been so
many new-fangled ideas in retail, such as various e-commerce trends,
which he did not give any importance. Fashions or trends cannot influence
the man who knows what he wants and how he can get it.

9. Avoid credit: Credit and delayed payments in retail business are risky
because they can badly impact your supplies and costs. Damani keeps
away from credit and pays sooner than his suppliers expect.

10. Let your work speak: Damani keeps a low profile which affords him
total dedication to his work. His slow and silent rise in a depressed sector is
a mark of his single-minded focus on work. He has rarely given an
interview to a TV channel or a newspaper.
D-MART COMPITITORS