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BSA ASSIGNMENT
PESTEL ANALYSIS
FARM FOODS HYPERMARKET
NEHA JANET A
19IFA56076
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FARM FOODS HYPERMARKET
About the company
Farm foods hypermarket is a grocery store, which started in 2008 in the city of Bangalore Urban.
It was set up with the objective of filling the segment of green groceries. The company offers fruits,
vegetables, spices, dairy products and many other daily supplies for retail purchase on a daily basis.
The fruits and vegetables offered for sale (currently 35 variety) are grown at the company's own
production farms. Besides the local market, the produce is also meant for export to
London, Australia and the UAE. The Company currently operates 70 plus stores in Karnataka only.
Products offered are :
Regular Products (stocked at all stores)
Crops - broccoli, cauliflower, brussels sprouts
English based products - Baby corn, sweet corn, zucchini
Gourds - bitter gourd, ivygourd, sponge gourd, ridge gourd, pumpkin and bottle gourd
Vegetables - green peas, haricot verts, beans, carrots, okra, aubergines, hot pepper
Leafy Greens - palak, pokchoy, Chinese kale, mustard leaf, choisum
Fruits - watermelon, melon, green apple, red apple, berries, strawberries, grapes etc
Additional Products (stocked at large stores)
Bottled Drinking Water
Packaged Chocolates
Pulses and grains
Baked Goods
Dairy products
Sauces
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PESTEL ANALYSIS :
A PESTEL analysis is a framework or tool used to analyse and monitor the macro-environmental
factors that may have a profound impact on an organisation’s performance. This tool is especially
useful when starting a new business or entering a foreign market.
Political factors
The political factors play a huge role in not only investment decision by transnational corporations
but also by companies such as Farm foods hypermarket.
1. Farm foods hypermarket being a retailer should be benefitted the most if government is
looking forward to growth in such industries or not. The present economic situation
affects the government’s budget which includes the fiscal and monetary policy,
thereby affectingthe consumers purchasing powers and the growth of the industry.
2. Political stability and government policies may also affect the retailer to a great extent.
This includes abiding by laws when setting prices, doing marketing and overall business
operations in general for its smooth running.
3. The consumer protection measures taken by the government should also be well
analyzed. Level of restriction on foreign goods by government also plays a major role
in measuringthe ease of serving variety to Indian market.
Economic factors
1. The pace of growth of the economy is a major lookout for a retail store like Farm
foods hypermarket. This is because that is what would help to decide the range of
products that should be stored in larger quantities. It also helps in determining the
cost of doing business and thereby estimating profits.
2. Higher inflation may require Farm foods hypermarket to continuously increase
prices in line of inflation which could lead to lower levels brand loyalty and constant
endeavours to manage costs. Cost Based Pricing could be a bad strategy under such
conditions.
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3. Work force productivity in India has grown by 25-30 % in last two decades even
though the salaries are not reflecting those gains. It can enable Farm foods
hypermarket to hire skilled workforce at competitive salaries.
Social Factors
1. State of health and the type of products people would like to buy constitutes one of
the most important macro-economic factors affecting the company.
2. Lifestyle changes, shift in product and services preferred are changing at
increasing pace and Farm Foods hypermarket needs to ensure to chase down the
same pace in order to sustain, serve and maintain its loyal customer base.
3. The attitude of people towards saving their money for future or investing in different
industries must also be looked upon.
Technological Factors
1. Developing a fast-billing system would also involve using the latest and the best
technology to maintain operational efficiency.
2. Providing online services through well-developed applications and facilities like
home delivery, ease of shopping, and supply chain management is also a key pointer
for Farm foods hypermarket to survive in the long run.
3. Technological trends awareness is another factor that could help to boost sales by
taking the first mover advantage or quickly adapting to industry trends via digital
marketing andvarious other sources.
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Environmental Factors
1. Proper waste management is one of the major environmental macro-economic
factors affecting Farm foods hypermarket, products that are not sold must be
disposed in an organized manner.
2. Focus must shift to spending on renewable technologies and adapt to eco-friendly
methods. The selection of location must also be appropriate such that the
environment isn’t affected.
3. Another major area to focus for the brand is in the type of carry bags it provides and
the billsit prints. It should discourage excess printing.
Legal Factors
1. Business laws need to be analyzed before opening stores in certain areas. As there
are several customers who would be visiting the stores on daily basis, safety
regulation and protective measures must be in place.
2. The expiry dates of products and quality check of products should be done on regular
basis depending of the requirement of each category.
3. Trade practices of the location they are operating in must be abided by and ensure
best service, quality and products to obtain a competitive advantage over
competitors.
