MBA-AB 07-09

Semester III
Agri-Retail management

Presentation by:
Group-7
Group members

Sr No PRN Name
1 07020242017 E S GOWRI SANKAR
2 07020242024 GUPTA PUSHKAL
3 07020242029 KHATRI MEETA
4 07020242031 KOUL PRIYANKA
5 07020242044 RAHUL KUMAR
6 07020242045 RAJAIAH GANESH RAJ
7 07020242046 RAMAN MEENAKSHI
8 07020242055 SONI SUMIT
General outlook of industry
India-Fifth largest retail destination
globally 22 per
cent
by
2010.
Modern retail
share in the
total retail
market
Largest number of retail outlets:
India

Source: India Brand Equity Foundation

Organised retail has increased its
share

• Source: IBEF: Delloite june.08

The fastest growing segments in that
order

Estimates : the
organised segment
to account for 25 per
cent of the total
sales by 2011.

Rural retail market is

estimated to cross
US$ 45.32 billion
mark by 2010 and
US$ 60.43 billion by
2015, says a study by
CII and YES BANK.
Mall space

Source: Jones Lang LaSalle's third annual Retailer Sentiment Survey-Asia.

Fruit and vegetable retail
• 40% is wasted currently between farm and folk.
• The vegetable and fruit production contributes
more than 30 per cent of the agriculture GDP.
• The crop diversification has led to rise in
horticulture production, which has reached
185.2 billion tonnes last year
Characteristics
• Widespread fragmentation in the supply chain
• Low productivity levels
• Huge post harvest losses
• Inadequate storage
• Cold chain
• Transport infrastructure
• Logistics
• Supply chain management
• Solution:
• Organised and traditional retailing
• Export potential also needed to be taken care of.
Overview of selected company
About Subhiksha
• Started in 1997
• Founded by Mr. R. Subramanian, an IIT-
Chennai & IIM-A alumni.
• India's largest supermarket, pharmacy and
telecom chain.
• >90 cities.
• Vision: Deliver consistently value and savings!!
Subhiksha...
Assessment

Source : Digital inspiration june1,07

Retailing and legal issues
Store design

SAVES
CAPITAL
COSTS
Wide Selection of Goods
• Supermarket

• Fruits and vegetables

• Pharmacy

• Telecom
Categories
• Groceries
• Food
• Child care
• House hold
• Toiletieries
Subhiksha: Planning for a hybrid
model
• Display counters for self-service in addition to,
• Feed in orders into a computer and products are
supplied from a warehouse.
• With foreign retail chains and top Indian groups
spending large on retail, Subhiksha could still
make its presence felt owing to the first mover
advantage,
• lower infrastructure cost and better
acquaintance of the local geography and
customer.
Currently….
Pricing Promise...
• Sharply discounted prices.
• On variety of items.
• On all days.
• Irrespective of purchase.
• Discount offered is also more comparatively.

Every Day Low Pricing

How much discount does
Subhiksha offer?
• Supermarket - An average discount of 8-10% on
whatever you buy.
• Pharmacies- Flat discount of 10% is given on all
medicines.
• Fruits and vegetables section- Fresh fruits and
vegetables - direct from the farm - at very
reasonable prices.
Low prices..How??
• Preferring Lease-rental route.
• Greater control on the operations.
• Procure directly from manufactures.
• Buy in large quantities and get large discounts.

Bacchat Mera Adhikaar!!

News
• Reliance Retail loses 5 execs to Subhiksha at VP
levels…tough competition….
Source : 13 Dec, 2006, 0053 hrs IST,Rajiv
Banerjee, TNN, Economic times.

• What does this confers to us?

Ethical and Legal Issues in
Retailing
• Focus on the Customer
• Dealing with Ethical Issues
• Social Responsibility
• Environmental Orientation
• Legal Framework
Legal issues for Subhiksha

• The FDA had earlier temporarily cancelled the

chain’s license on two separate occasions -March
1to10 and June 23 to 27 - for failing to comply
with hygiene regulations of the state in the food
packaging area within its warehouses.
CRM Issues: Feedback
Mobile store
• Largest mobile retailer.
• Lowest price on all phone brands.
• Variety of brands.
• Comparison of models across the companies.
• Facilitates enquiry.
• Facilities:
Other offering
• Opening time: 9am to 9pm.
• Guaranteed delivery.
▫ Delivering time:2 to 6 hrs.
• Return policy.
• Real customer support.
• Getting nearest store location by SMS.
Thanks