With the dawn of the 21st century and entry of global players across every category in the Indian market, the way Indians shop has changed drastically. Today, they not only have alternatives to choose from a plethora of brands but also you get products just tailor made for the price sensitive Indian market. And Supermarkets and Hypermarkets were the children of this evolution, where not only one gets every single thing across the vivid categories under one roof, but also services to augment the shopping experience a more easier, convenient and Joyful one.
Bag’s Retail Business The Ditty Barilla Group ventured into the dynamic world of retail business in 2006-07 when it acquired a popular South Indian retail outlet Trainers and opened supermarkets and hypermarkets under the brand “More”. Today it operates in six divisions: Fresh, FMC (both Food and Non-food), Apparels and Footwear, General Merchandise, Digital communication and Information Technology. Currently, the nation has fourteen More Megastars, with Bangor having four of them and the fifth one coming up soon. It has the largest base of loyal customers who have subscribed to its Club More Loyalty Program.
Future Objectives of BAG Going ahead, the challenge for the top management would be to increase the number of bills (Knobs) with the simultaneous increase of the average transaction value (TV) per customer given the increasing competitive scenario with the proliferation of National and Global Modern Trade outlets, the uniqueness of sub- catchments for each of the hypermarket along with vivid customer needs and taste and also minimize cannibalizing with its own supermarket outlets, while pushing for its high margin and lower priced private label brands across categories.
Roadman to Achieve Stated Goals The main driver for increasing KNOBS would be to increase footfalls while increasing the purchase of frequency by becoming the most preferred destination for Fruits and Vegetables (Fan), Grocery and Food FMC, which is a tough task given the strong affinity of Indian customers to shop at local and traditional markets. But while pushing for these products would help increase KNOB, it can also bring down TV, these categories being low margin and low sales value items.
Thus the big idea would be to convert the loyal customers and increase their share of wallet by driving he Ibid Parka’s Ads Shall Nit Vera sourness Santa 812017 812028 Bal 2055 Group No 8 BMW A sales of higher margin categories such as Apparels & Footwear (A&F) and Digital Communication & Information Technology (CCITT), which again would be a tough task because of presence of exclusive outlets in the market for these Bag More Hypermarket By Butchered Detailed Analysis of Steps Taken by BAG This case we try to access the top management’s objective of achieving aggressive LET growth in hypermarkets in Bengal region by improvement in product and brand management The case covers two key goals which the management achieved 0 Improvement perception of MORE stores through better branding exercises Improvement of product mix by striking right balance between new products, private labels and existing products The Case would discuss strategies adopted to increase sales growth and profitability for the Bengal hypermarkets covering the following key heads: 1 .
Customer Profiling & Catchments Mapping (Brand Enhancement) Analysis done of existing customer research (Brand Track) 0 Internal category analysis done to identify poor performing families 0 Mapping out customer profiles across sub-catchments 0 Analyzed loyalty database to further augment customer riffling 0 Based on analysis came up with steps to increase Brand awareness among 2. Product Assessment and Improvements 0 0 0 Conducted internal benchmarking to identify gaps Conducted in-store research to understand customer buying behavior and perception Compared practices with external benchmarks to draw additional insights Conclusion By analyzing the steps taken by BAG to improve its Hyper Market offering in Bangor, we hope to provide insights into the working of one of the biggest players in the Indian Retail segment which in turn can ago long way in increasing our understanding of the intricacies of this industry.