Reality……

in Real India…..
today
 Information

Money Consumption Attitude/lifestyle

Products/service availability
 Today the consumption in “Real India” is constraint by
availability of products and not other factors.
 How can we tap this consumption space?
 Our Interpretation
 Population is sparse,
 “Value for money” is more than urban,
 Scared to come in a place… “Not For Me”,
 So we may not be able to target them
directly,

 So …………..
 Can we sell goods to retailer who sells to
the consumers?
 Customer Insights
 Retailer/ customer has to travel long
distance, so cost lots of time and money,
 No access to new products
 Quality assurance
 Unfair trade practices and lack of
transparency
 Consistency of quality and availability
 Supplier’s Insights
 Costly to build brands and distribution channel
 Relies on wholesalers
 Exploitation by wholesalers
Payments, Prices, Stocking, Service
parameters
 Forced to follow unlawful trade practices
 Lack of loyalty from wholesaler
 No new products/line development
Can we create a trading platform to
integrate the suppliers and
retailers/customers in a
meaningful and profitable
manner?
 Brand Soul
 Why cant small retailers buy at reasonable
rates and have good quality with
consistent availability of products? Why
does the supplier be at the mercy of few
wholesalers?
 Can the consumer in “Real India” consume
same quality goods as an urban consumer
if not directly through organized retail but
indirectly.
 Brand Philosophy
 Brand Personality Rural, Efficient, Mentor
 Brand Positioning Give the feel of Mandi /Gullies
 Brand Experience
 All sensory (See, smell, Touch, hear and taste)
should be like a bazaar. No straight aisles,
narrow spaces, earthy smell and lots of stock on
floor, “SASTE KA MAAL RASTE PE”
 Vision
 To create an alternative organized
wholesale trading platform for Real India
 To change the way existing retailers buy
from existing wholesale system
 To change the way supplier sells to existing
wholesale market
 Thus make products available for “Real
India” consumers
 Brand Equity

Peripherals CORE Detractors

* Multiple categories * Credit
* On the highways “Khareedo Bachao, * Unlawful trade
10-15 mins distance practices
from BS/RS Karobar Badao” * Adaptability
* No Frills * Existing trade
* Factories to floor In Real India hostility
 SWOT - Strength

 Organized player
 Existing SCM
 Group backing
 Pan India Presence
 SWOT - Weakness

 Availability of trained people

 Location, away from existing wholesale
market
 Varying tastes and preferences vis a vis
urban consumer and regional
 Low margin business
 SWOT - Opportunities
 Private label creation
 Desire to consume is on the rise
 Retailers and suppliers want to know new
ways of doing business
 Platform for suppliers to try new products
 Procurement of farm produce
 Give an alternate to existing unorganized
Market in organized manner
 SWOT - Threat

 Unlawful trade practices (tax evasion)

 Credit system
 Trade hostility
 Who is our Customer

 Medium and small retailers,

 Bulk consumers,
 Wholesaler and semi wholesalers,
 Office and institutions
 Hotel/Restaurants/ Dhabas /Canteen
 Health and Educational institutions
 Product Mix Strategy

 Aim is to provide width in terms of categories

with minimum depth
 675 MC’s across 20 Departments
 Overall master not to be exceed 5000 SKUS, of
these 2000 SKUS will be consistent and 3000 will
be rotational
 Product Mix Strategy

 Customization to local taste is a must

 At least 20 items will be on “Lot Offer” and
should change once in fortnight
 For each location depending on availability of
space to offer host of ancillary services like
Banking, Travel counters, service station etc.
 Department Listing
 Techno Mart  Hardware & Tools
 Consumer Durable  Home Furnishings
 Cycle & Spare Parts  Household Utilities
 Disposable  Ladies Accessories
 Electrical  Stationery
 Food & Grocery  Toys & Games
 Footwear  Travel Accessories
 Fruits & Vegetables  Utensils
 GI Sheets  Furniture
 Garments  Lifestyle
 Sales System & Strategy
 Canvassing in the catchments area of 60KM for enrolling Saathi
(members)
 Saathi will be charged annual membership fee, but same fee will be
redeemed in the form of Gift vouchers over pre-decided months
 Annual fee charged from Saathi will be refunded if not satisfied after
deducting GV used
 Sale payment mode
Cash
Credit card
Micro finance card – To be worked upon
Selected credit to bulk buyers against
securities
 Sales System & Strategy
 Display on pallets/bins
 Display in cartons (Window cut) but loose
and not repacked, however customer has to
buy minimum quantity for billing and that
qty will be more than 1 (In most of the
cases except CD/Mobiles etc.)
 Lots of banner and wall paints will be used
in side and outside market to give “HAAT”
look
 Sales System & Strategy
 Tie up with transporter for point to point
delivery on payable basis
 Unit of sale will be as per industry norms
(steel in kg, nails in kg etc.)
 Replacement guarantee if unused and in
original packing
 Pricing & Promotion Strategy
 80-100 Key Value Items at prices equal or below
benchmarked wholesale prices. Eg.
For North Sadar Bazaar
For West Maszid Bandar
For East Bada Bazaar,
 All other items at par or below local wholesale
market
 Level 1 will be considerably lower than the Retail
MOP vis a vis the margin earned in the product
and level 2 will be at wholesale prices as
indicative above
 Pricing & Promotion Strategy
 Power pricing with 2-3 levels depending on item,
 Purchase based monthly loyalty schemes to be
operated regularly
 At least 1 to 2 items from each category will be on
offer price and the promotion cycle will be 2
weeks,
 All commodity items swing with the benchmark
market irrespective of purchase price
 Detailed process of benchmarking of prices to be
developed
 Sourcing Strategy
Short term (0-3 mths)

 To make sure all the regular products are there at

the price points currently available to the
retailers/traders.
 Focus on Range and Category fulfillment.
 Correction of items and range based on the
trends, tastes and preferences from the customers
side.
 Initial Sourcing will be from best possible source
available either from Manufacturer or Consolidator
 Sourcing Strategy
Short term (0-3 mths)

 Experimentation regarding new products

innovation will be less
 Private label will be in selected Merchandise
Categories (Min 10%) but with high focus.
 To ensure direct sourcing by at least 20 %
 Sourcing Strategy
Medium term (4-6 mths)

 Consolidation of product assortment .

 Vendor Development process to be initiated and
developed.
 Study and Analysis of the buying trends of
different class of customers along with the
weight age given to categories/items.
 Sourcing Strategy
Medium term (4-6 mths)

 Study of customer inclination towards new

innovative or upgraded products.
 Finalisation of Private Label program and
initiation of the same. Target Share of Private
Label-25%
 Target Share of Direct Sourcing - atleast 35%.
 Sourcing Strategy
Long term (7th mth onwards)

 Migration from Supply driven to Demand driven

(Make What is selling rather than selling what has
been made)
 Focus on Cost / Margin / Profitability management:
Emphasis on making the management of sourcing
more efficient in terms of effort and cost?
 To Improve Suppliers Performance Capability.
 Try new product innovations
 Sourcing Strategy
Long term (7th mth onwards)

 Decisions Make or Buy Or Import to be taken

and implemented.
 Target Share of Private Label > 70%
 Target Share of Direct Sourcing > 75%
 Private Label Strategy
 High basket penetration MC’s.
 Low technology products.
 Surplus capacity available.
 Cost to be at least 20-25% below benchmark
SKU.
 Wholesale Price to be at least 30% below
benchmark SKU.
 Target the manufacturer with experience in
dealing with a national brand preferably.
 SCM Strategy

 Factory to floor
 Inventory norms 36 stock turns
 Supplier to repack whenever we intent to and
label the product
 Endeavor to use EAN code and also ensure all
long term suppliers adhere to the EAN coding
standard.
 On affixed barcodes MRP/SP not to be
mentioned
 SCM Strategy

 Implementation of web based ordering

 Implementation of Auto Ordering System is
critical and compulsory
 Future Logistics to suggest ways of minimizing
transportation cost
 Information Technology

 Implementation of SAP as per business needs

 REM configuration as per business needs
 Time chart of business blue print
 Resolving of issues like MC, EAN Codes,
 Implementation of MIS/BiW
 Planning for IT architecture
 Planning and sizing of IT infrastructure