Dmart Sales Anlaysis: Strengths in The SWOT Analysis of D Mart

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Dmart sales Anlaysis

Avenue Supermarts, the firm that runs DMartNSE -1.25 % retail chain, saw its online sales
more than double during FY19 to Rs 144 crore even though it operates in just one market
— Mumbai.

The country’s most valuable retailer by market cap, however, posted a net loss of Rs 51
crore in the two-year old ecommerce venture.
A year ago, its online business — DMart Ready — posted sales of Rs 44 crore with net
loss of Rs 48 crore, according to its investor presentation filed on the BSE. Unlike etailers
such as BigBasket and Grofers, which rely on delivery based distribution model, DMart's
online venture essentially has multiple delivery centres or pick-up points in catchment
areas, where it has a store, so that customers can order online and pick it up.

Dmart Marketing Analysis

Strengths in the SWOT analysis of D mart :


Strengths are defined as what each business does best in its gamut
of operations which can give it an upper hand over its competitors. The following
are the strengths of DMart :

 Focus on long-term: Damani, the founder of D Mart is an investor and thus


the company has been focused entirely on long-term gains. This has made
the company maximise its returns through a value is driven pricing strategy.
 Slow scaling up : D Mart started off on a very low key note and slowly took
its time to move up the ladder. This gave the company a better control and
deeper understanding of its supply chain and also helped them manage the
bottom line better.

Weaknesses in the SWOT analysis of D mart :


 Focus on certain places: Quite unlike their competitors, who are present
everywhere, D Mart has focused more on the Western States and has a very
low presence in the South. This has restricted them from gaining market
prominence.
 Slow growth : D Mart has established almost 16 years ago much before the
retail boom set a fire in India. However, it has not been able to capture the
market even as much as many of the later entrants primarily because of its
long-term focus.
Opportunities in the SWOT analysis of D mart :  
 Technology: Technology has a lot to offer to retailers in terms of in-store
experiences and retailer can use IoT, artificial intelligence etc to create value-
adding services to their customers for which a premium can be charged.
 Personalization of services: Customers are looking for personalized
services for which they are willing to pay extra. Retailers should capitalize on
this propensity to pay more and increase the quality of their services.

Threats in the SWOT analysis of D mart :


 Online retailers: People in cities especially are highly lethargic about leaving
their homes and prefer to shop online today.
 Online Start-ups: The hottest trend in India is online start-ups. Many of them
are aggregators who bring together the supplier and the customer cost-
effectively.

Dmart Logistics

DMART follows a cluster-based store expansion strategy. It opens new stores within
a radius of a few kilometers of its existing stores and distribution centers. This allows
it to achieve
(a) better understanding of local needs and preferences,
(b) increased penetration in under-served markets,
(c) higher cost efficiency due to economies of scale, and
(d) greater brand visibility.
In the process of opening new stores, DMART takes into account factors like
(a) population density,
(b) customer and vehicular traffic,
(c) customer accessibility,
(d) potential growth of local population and economy,
(e) area development potential and future development trends,
The company’s go-to-market strategy allows setting up stores of 10,000-60,000sf in
areas with a population of 60,000 to areas as large as metropolitan cities. This
allows higher flexibility to grow. The company intends to add 25 stores every year
and has a clear strategy of re-investing ~75% of the money earned into existing
clusters and the balance in creating new clusters. Out of the 21 new stores added
from FY17, 15 stores (71%) have been added in the existing clusters.
Big Bazzar
Logistics in Big Bazzar
LOGISTICS:
Electronic Bazaar Furniture Bazaar Footwear Bazaar 
Trolleys are not easily available, especially on other thanground floor.
•Little attention to cleanliness. Dust on shelves as well assome product items.
•In-house packaging not efficiently done. 
•Crowded store interiors. Items are arranged in a clutteredway. Tried to stock
maximum number in limited area.
TRANSPORT OWNERSHIP & RESPONIBILITY
Vendor is responsible for the transportation of the goods and he is responsible of
mishappening if any. One thing which is noticeable is that if the product is branded
then the vendor has the upper hand. That means Big Bazaar has to take pain for the
display of such products and if the products are not branded then the vendor will
have to take pain for the display of their product.
WAREHOUSING
Company has its own warehouse. Since the warehouse is not big enough as orders
are placed frequently. Different store of Big Bazaar has different warehouse.
Once the product reaches the warehouse it is checked by the warehouse incharge
and inward checklist is filled accordingly.

Markeing Analysis
Strengths in the SWOT analysis of Big Bazaar
 High brand equity enjoyed by Big Bazaar
 State of the art infrastructure
 A vast variety of stuff available under one roof
 Everyday low prices, which attract customers

Weaknesses in the SWOT analysis of Big Bazaar

 Unable to meet store opening targets on time


 Falling revenue per sq ft
 General perception: ‘Low price = Low quality’
 Overcrowded during offers

Opportunities in the SWOT analysis of Big Bazaar

 A lot of scope in Indian organized retail as it stands at approximately 4%.


 Increasing mall culture in India.
 More people these days prefer to visit big stores where they can find large
variety under one roof

Threats in the SWOT analysis of Big Bazaar

 Competition from other value retail chains such as Shoprite, Reliance (Fresh


and trends), Hypercity and D mart.
 Changing Government policies
 International players looking to foray India

Sales Analysis
Sales of fast moving consumer goods (FMCG) and beverages have grown over 15% at the
country’s largest supermarket chain Big Bazaar in FY16 even as the sales of the category in the
overall modern trade grew just 2%, according to the latest data from Nielsen.

Within organised retail, the Kishore Biyani-owned firm gained 1.7% share, the market researcher
data said.
The company attributed the growth to its own brands that gained nearly 80%.

Reliance Fresh

Sales ANALYSIS

Mukesh Ambani-led Reliance Retail more than doubled revenue during the year ended March,
becoming the first retailer in India to cross the $10 billion sales mark. At ₹69,198 crore, Reliance
Retail’s revenue in the previous financial year exceeded the combined sales of rivals Future Group,
Avenue Supermart, Shoppers Stop and Tata Trent.

However, with the fuel retailing business also contributing a chunk of Reliance’s organised retail
business, the numbers are not comparable with rivals t ..

Marketing Analysis

Product in the Marketing Mix Of Reliance Fresh :


Reliance Fresh is a convenience store that deals in grocery products. It is built
in an area of nearly 3000-4000 square feet and serves a nearby area of
approximately 2-3 km.

All its outlets have been properly planned so that every section is spacious and
consumers can easily find required items.  Reliance Fresh is an organised retail-
outlet that caters to thousands of vendors and farmers and innumerable
customers

 Dairy products
 Bars
 Fresh Juice
 Groceries
 Staples
 Vegetables
 Fresh Fruits
 Beverages
 Fresh and frozen products
Place in the Marketing Mix Of Reliance Fresh :
Reliance Fresh has a Pan-India presence that has spread to more than ninety-
three cities and towns in India. Its headquarters base is at Mumbai in
Maharashtra. The brand serves its customers with help of 1,691 outlets of
Reliance Fresh that are located close to residential areas in the commercial
complex to gain maximum customer presence.

Price in the Marketing Mix Of Reliance Fresh :


Reliance Fresh has been projected as a neighbourhood supermarket that is a
one-stop shop for fresh produces. It has tried to remove the services of
middlemen so that the product cost automatically comes down. This will
ultimately prove beneficial to both producer and consumer.

Promotion in the Marketing Mix Of Reliance Fresh :


Reliance Fresh has adopted several marketing policies to increase its brand
awareness in the consumer market. It has taken help of print and electronic
media to launch ad campaigns that are shown on television, bus shelters and
hoardings placed at strategic places to garner maximum brand visibility.
Reliance Fresh has adopted digital marketing and sends SMS to its regular and
potential customers informing them about new deals and discounts.

Logitics Analysis

Reliance Fresh makes its purchase of green vegetables and fruits from the local farmers but never
from the mandis. They have established the rural business hubs in many parts of the country. The
objective of Reliance Fresh is to make the entire value chain more effective, robust and
responsive. By approaching farmers directly, it thereby reduces the procurement wastage that
further paves the way for better returns to Indian farmers and wholesalers as well as it renders
greater value for the Indian consumers. In the first phase vegetables and fruits are procured from
the suppliers and wholesalers followed by processing, separating rotten ones and finally packaging
for sale. From the collection point, Reliance Fresh uses its own logistics for transportation and
processing in collection point, then transported to processing point or DC and ultimately to the
customers through the retail outlets. Realistic supply chains have multiple end products with
shared components, facilities and capacities. The flow of materials may require various modes of
transportation, and the bill of materials for the end items may be both deep and large. But things
always don‟t turn out to be the same as planned. Opposition against Reliance fresh outlets in
Odisha and U.P soon interrupted the momentum. Reliance wished to go with.

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