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
