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MORE.

Presented by:
Akanksha Gupta
Avni Jain
Shiven Mehta
Swaroop Kumar

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"OUR MISSION IS TO CHANGE
THE WAY PEOPLE SHOP. WE
WILL GIVE THEM MORE."

-MR. KUMAR MANGALAM


BIRLA

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Vision :
"TO CONSISTENTLY PROVIDE THE INDIAN
CONSUMER COMPLETE AND
DIFFERENTIATED SHOPPING EXPERIENCES
AND BE AMONGST INDIA'S TOP RETAILERS,
WHILE DELIVERING SUPERIOR RETURNS TO
ALL STAKEHOLDERS".
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About More.
 More. is the retail brand owned by Aditya Birla Retail
Limited (ABRL)

 Aditya Birla Retail Limited is the retail arm of Aditya


Birla Group, a USD 28 billion Corporation
 India’s 2nd largest supermarket operator

 Acquired Trinethra, the south-India based chain of stores in


2006

 May 2007: Aditya Birla Retail Limited (ABRL), launched their


own brand of stores MORE.

 2 formats Supermarket & Hypermarket

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About More.
 Till end of July 2008:
 Supermarkets (including the former Trinethra stores): MORE.
 minimum size of 2,500 sq ft
 Currently, there are over 600 more

 Hypermarkets: MORE. Megastore


 minimum size of 50,000 sq ft
 Currently, 3 hypermarkets operate under the brand more.

 Clubmore. - loyalty program, currently has a strong


membership base of over 1 million members

 The company has an employee strength of over 11,000


employees

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Porter’s five forces:
5 FORCES
Analysis
ANALYSIS
Rivalry amongst competitors •Big Bazaar, Big Apple, Reliance Fresh,
Easyday etc

Threat of entrants •FDI policy not favorable for international


players
•International players looking to foray India

Bargaining power of supplier •The unorganized sector has a dominant


position
•There are a few players who have a slight
edge over others on account of being
established players and enjoying brand
distinction

Bargaining power of buyers •Consumers are price sensitive


•Availability of more choice

Threat of substitutes •Unorganized retail

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Current Strategy
 Closed down non- performing stores
 Had shut down 107 non viable stores

 Increased private labels

 Shifted focus to higher margin format hypermarkets

 Pricing strategy:
 Customized catchment strategy to build sales

 Optimization strategy: to boost returns and effective use of


available real estate
 To double the number of SKUs from 1.25 SKUs/ sq. ft. to 2 SKUs/ sq.
ft.
 Increase the rack height

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Customer Segmentation
Based on
Income
Price sensitiveness

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Target Customer
 More. Targets upper and middle class
customers

 The large and growing young working


population is preferred as a market segment

 More. Specifically targets working women


and home makers who are the primary
decision makers

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Life cycle of MORE.

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Positioning
 Value positioning= EXTRA

 ‘Hamesha Extra’ concept

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Positioning
High Service

Low High
Price Price

Low Service

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MARKETING MIX

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Products
 Range of products:
 Processed foods
 home and personal care
 fruits and vegetables
 general merchandise
 Apparel
 CDIT

 Many of the stores have


a bakery and other shop
in shops catering to
mobile stores,
pharmacy, Indian sweets
and the like

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 More.  More. 110%
Sugar Detergent; whiter
Ghee brighter clothes
Pulses (Rs. 60/kg as
Maha saver packs (e.g. compared to Tide @
Arhar dal @ Rs. 104/ kg Rs. 62/900gm)
compared to Rs. 125 @
Kiranashop)
Toilet cleaner
Other brand: Rajdhani Surface cleaner
Spices Soap bars
Dry fruits (@ Rs. 25/240gm)
Atta
Cola
Sharbat

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 Feasters Tea: Selecta
Namkeen Coffee
Squash Liquid blue @ Rs. 28 250
Chips ml (Ujala @ Rs. 35)
Noodles Phenyl fresh
 Biscuits Pickle: Kitchen’s Promise
 Best of India: ready
to eat

 Have more than 350 products under private label.


 15% cheaper than any other FMCG brands
 Private labels sales are 60-70% more than any of the
benchmark products of FMCG majors
 Packaging is similar to competitor’s product

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Pricing
 Value Pricing

 Promotional pricing

 Bundling

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Place
 Over 600 supermarket stores and 3
hypermarket stores across India

 Located at main city- tier I & tier II

 Approachable destination

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SUPERMARKET STORE
LOCATOR

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Punjab 26
Haryana 8
NCR 29
Jaipur 13
Ahemedabad 12

Anand 1
Baroda 6
Surat 5
Rest of 4
Gujarat
Nasik 13
Mumbai 46
Pune 22
Karad 2
Kolhapur 5 20
Solapur 2
Baramati 1
Ahmednagar 1
Aurangabad 3
Sangamner 1
Hubli- 11
Belgaum
Mangalore 12
Bangalore 66
Mysore 11
Kochi 20
Kottayam 4
Aleppey 1
Kozikhode 6

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Vizag 28
Vijaywada 27
Hyderabad 90
Nizamabad 1
Howrah 4
Kolkota 16
Hooghly 1
Asansol 4
Pattanamtith 2
a
Kollam 1
Chennai 54

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Promotion

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People
 Aditya Birla Retail Limited. has an employee
strength of over 11,000

 Well trained staff


 More than 1300 employees were given training for front
end retail

 Empowered individual

 Performance oriented culture

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Management Team
 Thomas Varghese, CEO - Aditya Birla Retail Ltd.
 Russell Berman, CEO – Hypermarket
 Satendra Aggarwal, CEO – Supermarket
 Giridhar Sanjeevi, CFO
 Ramesh Mitragotri, CPO
 Shashi Sareen, Head – Quality
 Vidhya Srinivasan, Head – Strategy
 Manoj Krishnan, CIO
 Anurag Srivastava, Head - Private Label
 T V. Venkataraman, Head - Internal Audit

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Physical Evidence

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Process
Daily replenishment

IT software: Oracle


Initially they had
Navision
Oracle is comparatively
faster
Reliance fresh uses SAP
(so far the best but
expensive)

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More. Mansrover Garden
outlet
 Promotional offers: monthly offers
 Not on per day basis
 Reliance fresh: vegetables high priced in the morning and lower in the evening

 Current promotional offers:


 Winter festival
 Shop worth Rs. 3000 get a halogen room heater free

 Reward offers: Clubmore

 Offer money back

 Exchange policy: within 14 days by presenting the original memo

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 System: Oracle
 Initially they had Navision
 Oracle is comparatively faster
 Reliance fresh uses SAP (so far the best but expensive)

 Daily stock check and daily replenishment of goods


 Warehouse: Bacoli, near Narela

 Store layout: at store manager’s discretion

 Average sales per day: Rs. 25000


 Vegetables: Rs. 6000 per day
 Reliance Fresh: Rs. 25000 per day only by selling Milk

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 Customer base: A class

 USP:
 Pricing: cheapest, same
throughout the day
 Better quality

 HUL dominated
 Have pre- signed contracts with
companies
 A minimum fixed visibility
guaranteed

 60% of customers buy from


the counter
 Also reduces pilferage

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 Consumer Insight
 “Reliance fresh and More. provides comparative prices
and schemes, at More. vegetables are very fresh till 8:30
am but in the evening they aren’t so fresh. Although
there is just one cash counter and it takes a little larger
for billing but still I shop at More. because it is closer to
my home instead of Reliance Fresh”
- Mrs. Sheena Arora, Housewife, 32 yrs

 Branch manager:
 Lokesh Sharma: 9718963222

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More. Pusa Road outlet
 System: Daily replenishment
 ARS: Automatic replacement stocks

 MBQ: Minimum Basic Quantity


 Catchment of nearby residents

 Customer feedback form available at the cash counter


 Weekly feedback goes to the head office

 Monthly target for Dec: Rs. 40 lack (Pusa Road)

 Other competitors:
 Big Apple, Old Rajinder Nagar
 Fair Price, Patel Nagar

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 6 Cash counters

 Local brands (for


selected products)

 24 customer service
associates

 Store Manager:
 Mr Inder (9990802223)

 Assistant Store
Manager: Mr. Amit

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More. Paschim Vihar
outlet
 Location: Main market,
jwalaheri

 Area: 1870 sq ft

 18 employees (Customer
service associates + Store
manager)

 Other competitors: Big Apple,


Reliance Fresh

 Had an apparel section, closed


it recently because of low sales

 Average turnover: 17-18 lac


per month

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 USP: price, ranges, latest
manufacturing rates,
customer service
 Insights: limca pearl pet @
Rs.55 + buscuit pack free
worth Rs. 15; kirana @ Rs. 50;
Easyday @ Rs. 42

 Rent charges very high:


Rs. 1,40,000 per month
 Very high operational cost

 Total Sales: 10-15% higher


as compared to Q2 of
previous year

 Store Manager: Mr.


Wakrambam
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More. Noida sec 11
Outlet
 14 employees (customer
service associates +
store manager)

 Stock is replenished daily


in the morning based on
the previous days closing
entries

 Most of the offers were


on Private Label products

 More ≠ discounts; More=


customer loyalty

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 Products not sold at
competitors
 Magazines
 Journals
 Blankets
 Neva thermal

 Located in the main


market (block 16
market)

 Competitors: Kirana
Stores

 Home delivery for


amount> Rs. 1000

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Expected results for
FY2010
 Supermarket network to become Ebidta- positive; retail company to
become Ebidta- positive by 2012

 Expected sales turnover: Rs. 1,600-1,700 crore


 45% growth w.r.t previous year; turnover for FY 2008-09: Rs. 1,130
crore

 19% of total sales expected to be from Private labels

 Rent to revenue ratio: 3 to 4%

 To close supermarket count at 680-690 stores.

 Add 60-70 more private label brands

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More. Future strategy

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Summary
 More. is still in initial stages of growth
 To maintain higher margin, More. focuses more on its private label products

 Volatile commodity and raw material prices accompanies by fluctuating


inflation in India puts significant pressure on margins

 Focus on rural market


 70% of Indian household

 To achieve profitable growth, supply chains need to be transformed to:


 Handle larger volumes
 Expand reach
 Balance costs

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THANK YOU

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