Retail Management

1. RP – Sanjiv Goenka
Group

2. Types of Modern Retail Formats in India:
 Malls
 Specialty Stores
 Discount Stores
 Department Stores
 Hypermarkets
 Convenience Stores
 Cash & Carry Stores
 Departmental Stores

3. A brief History
&
Introduction to
Supermarkets

4. Introduction: Company Profile
 Natures Basket Limited is online and offline premium grocery retailer which currently
has 36 neighbourhood convenience stores in Mumbai, Pune and Bangalore
 Product portfolio ranging from fresh fruits and vegetables, fish and meat, artisanal
breads, FMCG and staples
 Nature’s Basket is positioned as an aspirational brand and is positioned in the premium
segment
 Their own brands include Healthy Alternatives, L’Exclusif and Nature’s
 Nature’s Basket which was earlier a part of Godrej Group has been acquired by RP Sanjiv
Goenka Group’s retail flagship Spencer’s Retail in May 2019.
 Spencer’s Retail acquired Nature’s Basket to expand its footprint in the Western Indian
market where it had no presence
 Their strategy is to expand distribution reach of private brands by immediately launching
Nature’s Basket gourmet food private brands in Spencer’s stores and vice versa
 Also, Nature’s Basket has been reducing its dependence on imports by adding private
labels

5. Competitors:
 Nature’s Basket faces some stiff
competition from brands like
Bigbasket, Grofers, HealthyWorld,
Go4fresh, 24 Mantra, Snack Experts,
SRS Group, Monthly Bazaar, I Say
Organic and DMart.

6. Distinguishing
Features:
Most important USP is higher service levels and commitment to create
a memorable shopping experience that makes shopping for food a
pleasure rather than a daily chore.
Nature's Basket offer an overwhelming range of authentic world food,
beverages and ingredients.
Premium assortment and range, including high quality fruits and
vegetables, fresh non-veg products, cold cuts and assorted cheese
from across the world, are some of the specialties that differentiates
it from their competitors
Trained food specialists of Nature's Basket can set exquisite platters
(cheese or cold cuts) for parties and are also instrumental in helping
consumers get more out of the food they buy at the stores.
The brand has taken special initiatives for a strong impact. It
continuously makes an effort to connect with their consumers by way
of workshops, social media, PR-led media awareness, and in-store
communication.
The knowledge levels of the staff and the services offered finally
elevate the store and help the brand differentiate from other similar
businesses.

7. Perception of Indian Population-
Online Groceries
In working population of the cities even initial deterrence accepted the online ordering
culture of fresh fruits and vegetables just like other sectors like fashion and electronics
Price conscious population still preferred physical buying of the edibles as they feel Online
is expensive and only for rich people.
Touch and feel is the factor that is absent in online groceries hence the factor of trust is
also less.
Also Minimum amount of buy for delivery is also an important aspect which prevents users
from buying online
Easy access and immediate availability in the vicinity

8. Target Audience of Nature’s
Basket:
 Core target group is men and women above 25 who are high
spenders and big online shoppers
 Differentiates itself from other supermarkets by offering a wide
variety of international brands of varied high-end quality food
products
 Products ranging from international brands to national
premium brands
 Strategically located gourmet stores at high street locations in
metro cities

9. How are they marketing themselves?

10. Website & App:
https://www.naturesbasket.co.in

11. Customer Retention: retaining loyal customers

12. Store Location:
 Cost factor
• Involves large capital investment
• Affects transportation costs
• Affects human resources costs
“In the brick and mortar retail world, its said that the three most important decisions are
Location, location and location”
 Revenue factor
• Affects amount of customer traffic
• Affects volume of business

13. Choosing a Retail Location:
 Steps involved in choosing a retail location:
1. Identifying the market in which to locate the store
2. Evaluate the demand and supply within that market i.e
determine the market potential.
3. Identify the most attractive sites
4. Select the best site available

14. Legal & Regulatory requirements of a Supermarket
 Business Structure: Registration of the Supermarket under Sole Proprietorship at the nearest Local Municipal Office.
 Contract of Lease: Preparation of a Contract of Lease with the landlord containing specific clauses.
 Trade Licence: Obtain a license to ensure that the supermarket abides by all standards, regulations, ethical and safety
norms with permission granted by the nearest local municipal authority.
 Legal Technicalities of Trade Licence: Renew the trade license from the period of 1st January to 31st March of a year.
 The Shop and Establishment Act: As an owner of a shop, the first thing to do is to register your shop under ‘The Shops
and Establishment Act, 1953’, by submitting an application along with the required legal fee to the Inspector of the local
area within the prescribed time.
 FSSAI licensing- FSSAI imposes numerous legal compliances on business in India that deals with food which is known as a
‘Food Business’, under Food Safety and Standard Authority of India (FSSAI). The amount of turnover is the biggest
determiner of the kind of license granted by FSSAI. If a food business has its branch in more than one state, it has to
obtain a ‘central license’ for its head office. A Food Business with an annual turnover of Rs. 20 Crores qualifies for a
central license. If a food business has an annual turnover of Rs. 12-20 crores, then it must obtain a ‘state license’. A
license, once obtained, under FSSAI is valid for 5 years, after which renewal is mandatory.
 Taxation Norms- Every business is required to pay tax and register itself under GST, as it deals with the sale of goods.
 Sign Permit: Owners must acquaint themselves with the local regulations on signs from their local municipality.

15. Factor affecting growth of organized
retailing:
 Growth of middle class consumers
 Value for money
 Emerging rural market
 Entry of corporate sector
 Entry of foreign retailers
 Technological impact
 Rise in income
 Media explosion

16. Advantages of Supermarkets format in Retail:
Freedom of
Selection
Fixed Prices. No
bargaining is
allowed in
prices.
Lower Prices
Availability of
all the Goods of
Daily Need
Availability of
Variety Goods
Availability of
Standard Goods
More Sells More Profits
No-Risk of Bad
Debts
Economics of
Large Scale
Operation

17. Advantages of using Nature’s Basket:
 Brands : L’Exclusif, Sapphire, The Baker dozen, Smoor.
 Healthy alternative options
 Blogs: Food trends, Cuisines, Diet Food, Food Benefits, Food Presentation, Cooking
Techniques etc.
 Recipes
 Gift Hampers
 Benefits & Privileges (Reward Program)

18. Quality Standards:
NATURE'S BASKET
QUALITY POLICY
ONLY A+ QUALITY
LEVELS
EVERYDAY
FRESHNESS
APPROPRIATE
CARE IN STORAGE
ONLY HIGH
QUALITY
VENDORS
EXHAUSTIVE
STOCK CHECKS
EXPERT CARE
(MANAGEMENT)

19. Disadvantages of Super Market Format:
Need for huge amount of
capital
Problem of required space
Difficult for customers in
Making selections
Not suitable for the Sales of
Goods of Technical Nature
Possibility of Spoil of
Perishable Goods
Lack of the facility of Credit
Fewer opportunities of
Employment
Minimum Satisfaction of
Customers

20. of Supermarkets in India:
 A recent survey on ecommerce in India reports that 52% prefer the online retail
experience over that of offline one. With Indian ecommerce market poised to be $100
billion by FY2020 (Source: Goldman Sachs) there is a clear need for big retailers and
consumer brands to ensure a seamless experience for customers navigating both
online and offline retail for purchasing consumer products
 The recent entry of established ecommerce companies like Amazon with Kirana Now
and Flipkart with Nearby app – have heated up the competition and the pecking order
in this space might see some changes down the line
 grocery retail in India is estimated to be over 60% of the country’s total retail market.
 India is a fast-growing market with limitless potential and grocery alone has the
potential to capture a massive chunk of this action.
 The fact that Indian grocery retail market may cross $700 billion by 2022 is part of this
excitement

21. Contd…
 The future of online grocery shopping seems extremely secure. Like any good business
idea, a need had been identified and amplified. Indian online grocery shoppers have
found buying grocery online convenient, comfortable and hassle-free. Given the pace
of life, smartphone penetration and ease of use they offer, it will be a long time before
these online grocery platforms can call it a day.
 Mobile wallets have become instrumental in recent times because of the ease of
access they provide. However, Indian users often also utilize several other payment
options such as credit/debit cards and net banking etc. for their online transactions.
Therefore, a checkout option which can integrate different payment options would be
extremely crucial to such systems by providing consumers with a seamless user
experience
 With the range of choices available through omnichannel partners and the ease of
same-day delivery through apps, the customers have little reason to look elsewhere.

22. THANK YOU