Project on sales and operation of Sabka Bazaar

I have done a project on sales and operation of Sabka Bazaar.

Hope it helps u all


1. Fmcg industry overview
2. Introduction
3. Retail formats
4. Sku types
5. Brands
6. Competitors
a) rating of competitors
7. Sales analysis
a) Contribution of different categories and
their margins
8. Services offered
9. Expansion plan
10. Conclusion

FMCG Industry Overview (India, 2007)

• Robust growth in the Indian economy is driving FMCG consumption
- The Indian economy is growing at ~9%, second only to China
- Consumer expenditures are on the rise, driven by increase in disposable incomes at the higher end in urban and rural India; distinct shifts seen towards non-discretionary expenditures
- FMCG market in India is sizeable and growing faster than most world markets


• Key consumer and retail trends are driving the evolution of the consumer products landscape; market is dominated by well entrenched MNC and Indian players
- Indian FMCG market is attractive at $25B; F&B accounts for 2/3rd of the market
- Several consumer and retail growth trends (coupled with low penetration) expected to drive increasing demand for key categories
 Emerging categories like high end skin applications, naturals personal care, processed foods, OTC to be key beneficiaries
 Latent rural demand to be a key growth driver for mature categories (e.g. soaps, laundry, etc)
- Competition is getting increasingly sophisticated with concerted moves to build clear defensible positions
 Landscape is a mix of well-entrenched MNC and Indian players; MNCs dominate the home and personal care segment while F&B categories have a large Indian presence
 Margins are reasonably attractive for scale players or those with strong category positions
- Business models centre around 2 modes of play, each requiring a specific set of capabilities; players focus on one of the 2 modes though the larger players straddle the entire spectrum
 Price play (or mass segment): Distribution and lowest cost are key
 Brand play (or premium segment): Brand building and innovation are key


• Ancillary services are nascent, but certain segments poised to grow
- Absence of clear demand has been a key barrier to the sector’s growth
 Underdeveloped cold chain with high inefficiencies and an absence of integrated supply chain solutions
- Potential opportunities in certain segments in line with developed markets
 Logistics providers: Opportunity for FMCG expertise and specialization
 Support services (IT, HR and market research) could be high growth areas with the advent of modern retail and increased sophistication of CPG companies
 Distribution services: Limited opportunity as long as product reach provides competitive edge to established companies

Sabka Bazaar
Serving the Indian customer in a different way- Wadhawan Food Retail (P) Ltd (WFRPL), owner of Mumbai-based super market chain, Spinach, acquired Delhi-based retail chains Sabka Bazaar and Home Stores, two formats of Home Stores Pvt Ltd. Wadhawan Group of Companies includes DHFL, HDIL, Spinach, HSIL etc. Though their presence is significant in real estate, housing finance, food & grocery segment, food business, hospitality etc., they are also taking initiative towards Agri- Business/Retailing

Wadhawan Food Retail currently has five established brands under its umbrella. The company operates Spinach, Sangam Direct and Maratha Co-operative in Maharashtra, Sabka Bazaar and The Home Stores in northern India, and S Mart in southern India.
The unique thing about ‘Sabka Bazaar’ is that it is offering its services to the Indian retail consumer in a very special and different manner. Vision of Sabka bazaar is delivering million smiles everday.

Firstly, for customer convenience the stores are open from morning 7’o clock until 10’ o clock in evening. Secondly, it is offering a unique variety of product mix, under one roof, to its customers. Lastly and most importantly, the company is concerned for almost each section of the society that is why it has added something or the other in its product mix for the Indian society.

Indian society is broadly divided in to three sections:

1. India one
2. India two
3. India three
These groups can be understood as the consuming class, the serving class and the struggling class. However, studies so far show that:

India 1 or the consuming class constitutes only fourteen percent of the country’s total population. Most of these customers have a substantial disposable income and form part of what are usually called the upper middle and the lower middle class.

India 2 or the serving class makes up almost fifty percent of the total population, their numbers are huge they still have very little disposable income to spend on buying aspiration products and services.

Then there is the struggling class or India 3, which lives a hand to mouth existence and cannot afford to even aspire for a better living. So their needs can not be addressed by the existing business models till date in the country.



But, from the serving class to the consuming class, our retail company is serving to the different sections of the Indian society with a motive of ensuring high level of customer service in Sabka Bazaar stores

SABKA BAZAAR is India’s first ever organized retail chain. Store is the complete daily need solutions provider, offers wide range of products with 2200 plus sku’s in each store. Following are the few categories divided by our company:-
 Beverages
 Cleaning aids
 Fresh
 General Merchandise
 Health beauty
 Perishables
 Processed Foods
 Staples

1. Beverages include Tea, Coffee, Juices, Health Drink and Mineral Water.
2. Cleaning Aids includes detergents, detergents cakes, toilet cleaners, mosquito repellents, shoe polish, room fresheners.
3. Fresh includes vegetables and fruits.
4. General Merchandise includes kitchens essentials, deo’s, perfumes, undergarments, dusters, glasses, baby care products and many more products.
5. Health beauty includes soaps, shampoos, creams, hair colors, moisturizers, hair oils, and shaving needs.
6. Perishable includes butter and frozen veg., non veg. items.
7. Processed Foods includes break fast cereals, biscuits, wafers, namkeens, chocolates, noodles, pasta, jams, sauces, spreads & pickles.
8. Staples includes dry fruits, floors, all groceries items, rice, oils, ghee, spices.

Sabka Bazaar is selling food and non-food products of almost each brand. To mention a few brands are:

 Procter & Gamble
 Hindustan Unilever
 Palmolive
 Reckitt Benckiser
 Zydus Cadilla
 Bayer
 Dabur
 Nestle
 Cadbury’s
 Gillette
 Johnson &Johnson
 L’oreal
 Marico
 Heinz
 Haldiram
 Pepsico
 Coca cola
 Amul
 Britannia
 Sabka Bazaar Grocery
 Henkel

Sabka Bazaar stores provide an excellent buying experience, systematized selling strategy, and convenient display. Sabka Bazaar has developed a distinctive retail concept directed at engaging the consumer.
The company is in direct competition with retailers like:
1. Reliance fresh
2. More
3. Spencer’s
4. Subhiksha
5. 6-10
6. LM 365 Days
7. Big Apple
Apart from Spencer, Sabka Bazaar is giving tough competition to all other competitors on the grounds of fresh produce, large number of product offerings, discounts, savings & promotional schemes on week-to-week basis and high rate of product availability. Few steps are in a pipeline of company to tackle all the competitors.

CONTRIBUTION OF DIFFERENT CATEGORIES AND THEIR MARGINS

Company is mainly focusing upon in house grocery, fruits and vegetables. These two-category products plus general merchandise provides the maximum margins, but sale of general merchandise sale is very less. Following are the categories, their contribution and their margins in total sale for the month February 2087
Category Type Contribution% Gross Margin%
Beverages 9 11
Cleaning aids 5 10
Fresh 9 20
General Merchandise 4.5 20
Health beauty 10.5 10
Perishables 1 9
Processed Foods 15 14
Staples 46 20

Services Offered

1. Sabka Bazaar provides one-stop shopping hub to all its customers, where they can fulfill all their daily needs and requirements.
2. The store offers home delivery to its customers at no extra cost.
3. All Sabka Bazaar stores are conveniently located in neighborhood in all four zones of Delhi as well as NCR.
4. The ambience of the store makes shopping, for daily needs, a fun loving activity for people of all age groups, because all stores are designed to be customer friendly.
5. Their greatest service to the society is their operational hours, i.e. 7am until 10 pm, which serves as a parameter of a high degree of customer service.