D'mart supply chain management

D'Mart Supply Chain Management

1. Topic :- D’mart Supply Chain Management Subject :- Strategic Sourcing in SCM

2. The Indian retail industry has experienced high growth over the last decade with a noticeable shift towards organized retailing formats. The industry is moving towards a modern concept of retailing. The Indian retail market, currently estimated at USD 490 billion, is projected to grow at a CAGR of 6% to reach USD 865 billion by 2023(Source:-IBEF). The opportunities in food and grocery retail in India are immense, given that it constitutes about 69%of India’s total retail market. Increasing consumption, comfortable shopping experience, new categories, wide variety of brands under a single roof and attractive prices. A whopping 55% of the modern trade shoppers actively seek promotional deals , 35%of them make bulk purchases, of which 30%are male customers. Mass media has a big role in bringing the rural market to the centre-stage, which is setting the actual consumer aspiration. The key element to be focused on is the supply chain and infrastructure in the Tier-II cities and huge market to tap. The Indian Retail Sector

3. Introduction Founded on May 2002 by Radhakishan Damani , under Avenue supermarts ltd. 1 7 5 Stores across India. 5 1.55 % revenues from food and Non Food , 20.03% General Merchandise & Apparel , 28.42% other products. Best in industry CAGR ( 4 1 %) .Revenue per square feet Rs.33000. Best inventory turnover (1 3 . 8) Product prices 5-6% lower than all listed competitors . The brands D Mart, D Mart Minimax, D Mart Premia , D Homes, Dutch Harbour, etc are brands owned by ASL

4. USP & STP of D-Mart Unique Selling Proposition Heavy discounts and has managed to sell cheap Market Segment Price sensitive group Target Market Middle income households Market Positioning One-stop value retail store chain

5. COMPETI T ORS Highly competitive space. Competitors strive for cost leadership. Festivity based promotional campaigns (Big Bazaar Ganpathi, #dildar Diwali) Affective message strategy used for promotions by Big Bazaar, Reliance fresh. Informative communications used by online competitors and small scale retailers.

6. Source:- Economic Times data- March 2018 data Retailer Sales (in Cr.) Stores (in India) Average Sales / store (in Cr.) Reliance Retail 32436 9146 3.54 Future Retail 18477.97 1700 10.86 D’mart 15008.89 175 85.76 Average sales turnover per store

7. D- Mart Big Bazzar Strengths Strengths 1) EDLP(Every Day Low Price) 2) Discount Policy 3) Clear price based differentiation 4) Slow scaling up 5) People centric approach 6) Stores at prime location 1)  EDLP(Every Day Low Price). 2)  Affordability for middle class is provided by Big Bazaar in India. 3) Big Bazaar offers quality, choice and convenience. 4) Wide range of products and service offerings. 5) Strong presence in local market. 6) Attractive promotional offers  given by Big Bazaar to attract customer through discounts, sales, exchange offers etc. 7) Good branding and advertising by also roping in celebrity brand ambassadors also boosted Big Bazaar's presence

8. D- Mart Big Bazzar Weakness Weakness 1) Focus on certain places 2) Slow growth  3) No frills 3) Low brand loyalty among customers 4) No backing of a known corporate/business house. 5) Doesn’t sell electronic equipment's, which are currently in huge demand.eg Laptops, Plasma TV’s, Digital cameras, Mobile phones. 6) Standalone stores, not situated in any commercial building/malls/hub. 1)  Unable to meet store opening targets on time. 2)    No different game plan according to divergent people, their lifestyles, their tastes and budgets in 3) Limited only to value offering low price  products . A no of branded products are still missing from Big Bazaar’s line of products. E.g. Jockey, Van heusen ,

9. D- Mart Big Bazzar Opportunities Opportunities 1) Booming retail sector 2) Limited presence in Suburbs, town markets can be potential untapped markets in major cities. 3) Digital Strategy 4) Technology 5) Customer-centric Approach-Personalization of services 1. Big Bazaar can plan to expand globally by tie-ups 2. Entering into high premium segment 3. Opportunity to expand into financial services catering to huge segment 4. Increased rural penetration can also benefit Big Bazaar

10. D- Mart Big Bazzar Threats Threats 1) Online retailers 2) Online Start-ups 3) Human Capital 4) Availability of land and real estate 1) Competition from other value retail chains such as Shoprite, Reliance (Fresh and trends) and D mart. 2) Unorganized retail also appears to be a threat to Big Bazaar’s business. A large population still prefers to visit local convenient stores for daily purchases. 3) Changing Government policies International players looking to foray India.

11. Supply Chain Management

12. Downstream Supply chain Upstream Supply chain

13. Future Focuses D’mart ready for online order Self pickup at near D’mart ready stores or delivery at home at nominal delivery cost. Managing delivery boys. Managing the supply chain for home delivery. Opening stores at more locations.

14. Conclusion D’mart focuses on profitability of its stores before opening. D’mart focuses on product quality before procurement. D’mart manage it’s supply chain at very lower cost compare to the industry, D’mart is having good relationship with supplier which helps in procurement. D’mart do not spend on marketing and believe in customer satisfaction which is helping it as word of mouth marketing.

15. Bibliography https://www.dmartindia.com/ https://economictimes.indiatimes.com/topic/D-Mart https://economictimes.indiatimes.com/topic/Big Bazzar https://www.scribd.com https://www.marketing91.com