challanges of food retailing in india and innovative marketing strattagies

8/8/2019 Challanges of Food Retailing in India and Innovative Marketing Strattagies

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Submitted To: Submitted By:

Mr. Samarth Singh

Ramji Keshari

109319


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Que.1 Challenges of food retailing in India.

Ans. Below are the main challenges of food retailing in India:-

1. Huge diversification in Taste and Preference

2. Land and Manpower availability

3. Value conscious customers of India

4. Time constraint

5. Growing need for convenience

6. Fresh food

7. Less margins due to local players

8. Change in consumption pattern

9. Reducing cost

10.Meeting global standard quality

11.Several layers in the Supply Chain increases cost

12.Requirement of Innovative Concepts

13.Research and Development

14.Quick delivery

Introduction

Food and beverage is major segment in organized retail of India, worth Rs.897000 cr.

Food items were sold only in small road side grocery shop and mandies , which are now

being sold through supermarket stores.

The organized form of food retail accounts for less than 1% of food consumed in India

and the balance is accounted by unorganized stores. Since nearly 60% of the average


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Indian grocery basket comprises non-branded items, the branded food industry is

struggling to achieve share of the wallet of Indian consumers.

Challenges for food retailing-

1. Huge diversification in taste and preference- Indian retailers need to take into

account a very important factor and that is the India is a diverse nation where each

religion has its own taste and preference in food consumption. So, food retailers

need to have differentiated product mix for different reasons. For example in

Gujarat, it must have the local eatables like THEPLA (Gujarati dish).

2. Land and manpower availability- Both, the land and manpower resources are

very big challenges for food retailing in India. These are scarcely available. Men

power also getting costlier because of their demand in the market, resulting into

higher cost of food and then the retailers need to increase the prices of food. In this

case it becomes very hard to compete in the market or to survive. On the other

hand, if food retailers compromise with the expert men power then they suffer in

form of training them or having less knowledge about their work. As organized

retail expands, there is expected to be a dearth of skilled manpower. The lack of

institutions and courses for different aspects of retail management will have an

impact on the overall supply of quality manpower.

Land availability is also one of the major problem for food retailers as they want

land at that place where the customers often comes to purchase another thing and

also like to have good food retail stores, so that they can have food items at the

same place.

3. Value conscious customers of India- Indian customers are very value conscious

i.e. they want good quality food with the great taste at the cost, what they want topay or understand the worth of food. In this case, in a competitive market, it is one

of the problems for food retailers of India to provide the food according to the

perception or the need of the customers.


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4. Time constraint- Time constraint is also a big problem for food retailers as they

need to fulfill timely the demands of the customers and for that they need to have

good assortment of food items and big warehouses to fulfill demand whenever

needed.

5. Growing need for convenience These days people do not have much time to

spend in stores browsing for their required items. So they want stores conveniently

located in their vicinity and also the stores should organize the items in such a way

that they spend very less time to locate their required items.

6. Fresh food- On the other side Indians prefer only and only fresh cooked food,through our learning from our grandparents. We are taught to have only and only

fresh food because stale food can not be digested easily. For this food retailers will

have to increase the warehouse or cold storage capacity so that customers demand

can be met.

7. Less margins due to local players- Indian food retailing is full of local players

which results in very less profit margins for retailers. This is all, the result of huge

competition in India. So, retailers should open small stores in places where no

large space is available or in colonies and sell their own brands at lower price for

those who want food items at lower price and simultaneously getting more profits

than the established brand.

8. Change in consumption patterns- With the time there is a big change in

consumption pattern of food items. People are inclining to the western lifestyle. So

they likely to purchase ready to eat food items


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9. Reducing cost- Due to the huge untapped market in this sector in India several

national and international players are vying to enter in India that is affecting the

profit share of existing players. So they have the challenge to reduce the cost to

attract the consumers.

10.Meeting global standard quality- Since the global players have started entering

in the local market , so the local players need to adopt the global standard to

remain in the market or to compete.

11. Several layers in the supply chain increases cost Food items reaches to

customers through many chains The chain starts from producer middlemanwholesaler retailer consumer.

12.Weak research and development- Research and development is required in food

processing enormous magnitude starting from varietal improvement to the

technology and machinery production process till the stage for packaging and

labeling. And if retailers are not taking proper care about it, they will not be able toknow about new product which is the requirement at that time.

CONCLUSION: -

The retail sector has played a phenomenal role throughout the world in increasing

productivity of consumer goods and services.

There is no denying the fact that most of the developed economies are very much

relying on their retail sector as a locomotive of growth.


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The India Retail Industry is the largest among all the industries, accounting for

over 10 per cent of the countrys GDP and around 8 per cent of the employment.

The Retail Industry in India has come forth as one of the most dynamic and fastpaced industries with several players entering the market. But all of them have not yet

tasted success because of the heavy initial investments that are required to break even

with other companies and compete with them.

The India Retail Industry is gradually inching its way towards becoming the next

boom industry.

Que.2 Innovative marketing strategies used and can be used by retailers.

Ans. Below are the innovative marketing strategies which have been using-

Strategy 1. WEDDING PACK- Apparel retail store can use this strategy, under whicha wedding pack scheme can be launched. The idea was to give discount on purchase of

wedding dress for groom and bride and other apparel purchase; such that it fit into

budget.

Implementation- Every marriage means lots of dress material etc are purchased so,

apparel retail store can come up with idea of providing wedding pack such that apparel

purchase fits into the budget. Pack with 3 Sarees 3 night wear 1 Bridal lehanga etc all

squeezed together at a reasonable rate.

Strategy 2. Kidomania Combination of kids apparel accessories, toys boutique

including kids salon, kids caf and photo studio; at 1 retail store.

Implementation - Offering all of this at one place means offering an unparalleled

shopping experience for kids. Its implementation will involve retailers to arrange for

skilled man force for all the service like kids boutique kids salon and kids photo studio.


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Strategy 3. Girls Fashionology - This retail strategy allows young fashionistas

(teenagers) design and make their own clothes. Girls begin the design process as soon as

they step into the store, which features an array of dazzling designs on the walls for

inspiration. Using touch-screen Design Pads, they begin by selecting what type of

garment they'd like to create, choosing from an assortment of tops, bottoms and dresses.

Implementation A proper and well programmed touch screen has to be made by IT

experts and good fashion designers need to be hired for implementing this strategy. We at

Girls Fashionology have to maintain a proper stock of all kinds of cloths and dress

material which we are displaying on the software.

After girls enter into the retail outlet they use this touch screen to design their cloths

from variety of options available in the software. They then pick embellishments for their

garments, choosing from options including Sew It, Clip It and Pin It. Once a girlcompletes her design, she proceeds to the U-Bar, where a friendly Fashionologist uses a

heat press to add the key design element to her new look and gives her a tray of

embellishments to take to the customized Make It table. The girl settles in to sew, pin and

clip, and when her garment is ready to wear, she steps in front of the camera to proudly

display her creation. This can be a big it because there are no such retail outlet in INDIA

and its going to be fun and experience shopping for youth.

challanges of food retailing in india and innovative marketing strattagies

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