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DEVELOP WINNING STRATEGIES IN FOOD RETAIL A PROJECT REPORT ON:- SUBMITTED TO:- Ms.Priya Arora SUBMITTED BY :- Mr. Abdullah Shahid Mr.Abu Obaid Mr.Mohd. Tauqir Mr.Abbhijeet Saha Ms.Anu Bhatti

Introduction The food industry is on a roller coaster ride as Indians continue to have a feast. Fuelled by– large disposable incomes – the food sector is witnessing a remarkable change in consumption patterns, especially in terms of food. Food retailing has come of age -- from a period when food items were sold in small road side grocer shops & mandis, haats and bazzars by vendors to a stage when food products (processed and groceries) are retailed through supermarket stores where consumers can inspect, select and pick up the products they like in a comfortable ambience and still pay a fair price for the product and the merchandise and sometimes even pay less than the price they would have paid at the nearest food stores. Shopping for groceries is no longer a strenuous and uncomfortable affair .

continue Instead, it is a pleasurable experience. From simple trading activity, food retailing is now heading to the status of an industry. Imagine yourself walking through the air conditioned lanes smelling fresh food and groceries, enjoying light music, experiencing five star ambiences and above all buying food products (vegetables, spices and beverages) without bargaining with the vendors. Food retail has surpassed the dominating apparel and accessories sector.

Causes to Revolutionizing Food Retailing in India: 1: Changing life styles and tastes 2: Growing need for convenience 3: Increasing disposable income 4: Increasing numbers of working women 5: Change in consumption patterns 6: Higher aspirations among youth 7: Impact of western lifestyle 8: Plastic Revolution – Increased use of credit cards and debit cards

Major Players: Safal Outlets Subhiksha Reliance Fresh More Big Bazar Food Mart ITC,s e-chaupal

Profile: Reliance fresh-part of Reliance Industries Key People: Mukesh Ambani Headquarter: Mumbai Website: www.relianceretail.com It has near about 400 stores Tied up with Apple for its i-store

Profile: Part of Aditya Birla Retail Chairman : Kumar Manglam Birla Headquarter : Mumbai Motto : More quality, More variety, More convenience, More Value It has near about 656 stores Website: www.adityabirla.com

Vishal Food Mart At Jalandhar:

Profile: A branch of Vishal Mega Mart Chairman : Mr. Ramchandra Agarwal Headquarter : Delhi It has near about 180 stores in all over country Tag line : Save More, Spend Less Wabsite : www.vishalmegamart.net

Objective of The Project: Develop winning strategies in food retail Consumer Behaviour Modern Food Market Vs Traditional Market

Research Methodology: Visits to the food retail markets Survey of the food retail markets Questionnaire

Which one is better? 50% modern market 30% traditional market 20% both (On the basis of survey) 30% 20% 50%

Customers goes to consider : 10% considers price 40% considers quality 50% considers both Harpreet Kaur (A regular customer of V-food mart)- ‘ mahnga roye ek bar , sasta roye bar-bar’ stas

Is food retail industry fastest growing? 60% accept this 20% people don't accept 20% don't have idea 60% 20% 20%

Chance of improvement 60% people think that there is a chance to improvement in existing modern food retail markets 20% says it is satisfactory 20% don't have any idea

Vegetables In the town areas maximum people purchase the vegetables from Traditional market about 100%. In the case of cities like Mumbai & Delhi : Vegetable marketing from modern food market is increasing rapidly but right now it is not more than 5%.

Is modern food retail market better for farmers? 50% says it is better for farmers 30% have negative response 20% don't have idea 50% 30% 20%

Are modern food retail markets harassing to the local markets? 50% accept this 40% don't accept 10% don't have any idea A kirana shopkeeper Amreesh Says: there is no any affect 50% 40% 10%

What about FDI in food retail market? 50% people think that FDI will have a positive effect in Indian food retail market. 30% people consider FDI as a negative effect in Indian food retail market. 20% people don't have any idea about FDI.

Observation: Food Fight : Interaction between retailers and producers is of great importance to ensure the maintenance of an efficient chain that facilitates development of the industry as a whole. Food retailers and producers will debate on vital issues to determine the way ahead for the food industry in this session .

Investment in The Food sector: The Urban Middle Class continues to grow by 20-25 million annually. The population is young, better exposed to modern lifestyles, and has a preference for packaged food and beverages. More than 1,000 Food and Grocery outlets operational across tier-I and tier-II cities and Retail space of over 3 million sq. ft. have come up for F&G supermarkets, department stores and hypermarkets. 25 major F&G Retailers emerged in less than a year and Retail sales in this segment grew by nearly 150 per cent over 2006.

Opportunity in Food Processing: Nearly 80 per cent of agricultural produce in developed countries gets processed and packaged. It is just about 1.3 per cent in the case of India - a reason why less than one per cent of the F&G retail segment is organised. Even the existing organised F&G Retailers are finding it difficult to keep their stacks full & fresh. This is just the right time for global firms to invest in the food processing sector, especially so when the government seems eager to boost rural/farm incomes. Marine Food Parks and Agricultural Special Economic Zones are already being worked out to ensure that farmers are not displaced. The opportunity is huge.. and early movers will reap the maximum advantage

Boost the Incomes of Indian Farmers: Organised F&G retail requires direct sourcing of bulk produce and this ensures a boon for farmers. Initiatives thus far, are proving the point as traditional mandis loose relevance, middlemen get eased out, and as a result there is substantial increase in the income of farmers. Adverse effects of fragmentation of land holdings can also be effectively countered. Initiative and Investment by Global companies can help make Cluster farming, Demand oriented farming and Raw material oriented farming the mainstay for Indian farmers. India could well become the agri-business powerhouse in the export of fruits, vegetables, spices and food grains.

Opportunities for Food & Farm supplies: More than 5,000 new outlets, 100 hypermarkets, 500 department stores and 2000 supermarkets are opening. Over 5,000 small and big existing outlets are to undergo a complete facelift. But the supplies are inadequate. Organised retail in India will need fresh and processed food and farm produce worth US$ 30 billion by the year 2010.

Key Winning Strategies In Food Retailing: Consideration of FDI Entry of corporate players Retailers have been region specific Entrance in the unbranded food space Regular contact with regular customers Schemes for regular customers Festive discounts Quality should be best

Conclusion: The past 4-5 years have seen increasing activity in food retailing. Various business houses have already planned for few investments in the coming 2-3 years. Though the retailers will have to face increasingly demanding customers and intensely competitive rivals, more investments will keep flowing in and the share of organized food sector will grow rapidly. Organized food retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants.

Limitations: Indian taxation system favoures unorganised food retail business. Middle class psychology Increasing real estate price Politics for votes

Suggestion to Develop Food Retail Market: Create a calendar for customers with shop's name and address on it. Submit to the local newspaper, trade journal or other publications. Create an annual award and publicize it. Get a memorable local or toll-free phone number. Be sure to reach the non-English speaking market (local area) as well.

Bibliography: Survey (Khanna, MandiGobindgarh) www.researhandmarkets.com www.chillibreeze.com Magazines

Annexure: Q.1: Is organized food retail market better than unorganized food retail market? Ans.: a) Yes b) No c) No idea Q.2: Are you think that organized food retail sales price of commodities less in comparison of unorganized food retail market price? Ans.: a) Yes b) No c) No idea Q.3: Is organized food retail industry fastest growing industry in India? Ans.: a) Yes b) No c) No idea Q.4: Are modern (organized) food retail markets harassing to the local or traditional markets? Ans.: a) Yes b) No c) No idea Q.5: What do you consider to purchase the commodities from food retail market? Ans.: a) Price b) Quality c) Both

Next page Q.6: Is there a chance to improve the facility in modern food retail market? Ans.: a) Yes b) No c) No idea Q.7: Do u purchase vegetables from organized food retail market? Ans.: a) Yes b) No Q.8: What is the impact of modern (organized) food retail market? Ans.: a) Good b) Bad c) No affect Q.9: Is organized food retail market better for farmers? Ans.: a) Yes b) No c) No idea Q.10: What do you think about FDI in food retail markets? Ans.: a) Good affect b) Bad affect c) No idea [email_address]

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