1. Case study presentation on food world – market entry strategy
Presented by
Vagesh v hiremath
Trimurti sannakki
Shrihari shindhe
Mutturaj goudar
Mallik shaikh

2. President – pradipta k mohapatra Company – RPG enterprises
Profile of foodworld
President – pradipta k mohapatra
Company – RPG enterprises
food world Division of spencers
Established – 9 may 1996(food world)
Place – R A Puram (chennai)
Turnover – 210 million( )
RPG purchased spencers in 1989

3. Retail market scenario in india in 1991
Population – 846million
¼ of population lived in 3768 towns
remaining villages
Retail levels
Formal sector
Informal sector
Fair price shops

4. In 1993 formal retail out lets in india 8.06 million
Conti……….
In 1993 formal retail out lets in india million
In 1998 it was about 11.1 million
Estimated million
Approximately 30% outlets located in urban 27% dealt with food products

5. Urban outlets – food/nonfood 1996
Types of products sold
Number (000)
Percentage(%)
Food
824
26.8
Other fmcg
1,430
46.5
Non -food
820
26.7
total
3,074
100.0

6. Total 53% retail contribution of GDP 69% consumer expenditure
Conti….
Total retail sales in india 1997 was estimated to be 6,630 billion out of which food items was 4,837 billion
Total 53% retail contribution of GDP
69% consumer expenditure
Estimated retail sales ,236 billion
food -6,657 billion

7. Cruicial decission taken by the company
Which target segment should be focused on ?
What value proposition should be offered to the customer?
Which merchandising facilities should be offered?
Where the retail outlets should be located?

8. Insight Consumer survey conducted
Conti…..
Insight Consumer survey conducted
Buying provision – needs and requirements
Insight into consumer awareness about competition
Customer perception of store names
Shopping habits and benefits sought of the customers

9. Categories of products
Category description
Typical products
Convenience
Noodles, canned non- veg, canned fruit, canned veg,dessers,tinned milk,cigarettes,frozen foods, hardware
Destination
Careals,pulses,flours,edible oils, diary products, vegetables
Specialty
Paper goods, pet food,batteries,miscellaneous items
Strategic
Spices, biscuits,jams,breakfast,foods,baby foods,liquor,detergents,skin care, hair care, oral care, shaving needs, baby needs

10. Question& answers
Draw a diagram of retailing decision for food world as given as fig. 1.2 enumerate the key success factors
Using the data in the tables and figures, find out the profitability drivers for food world .what is the difference between the profitability of new and old stores? What are the reasons for this ? What is your suggestion with regard to the number of stores that food world open when it becomes a profitable stores?

11. Answers
Retailing decision taken by the RPG in order to expand its supply chain and retail in India
three insights or directions to get in to retail
1) The company should not get in to niche retailing instead they should focus on the mass market

12. Conti…
2) organized retailing would evolve faster in the country as retailing format was closely related to economic development of countries 3) they should focus on daily necessities of house holds- food, clothing and health

13. Conti….. Food Other fmcg Non -food total Types of products sold
Number (000)
Percentage(%)
Food
824
26.8
Other fmcg
1,430
46.5
Non -food
820
26.7
total
3,074
100.0

14. Advantage of Indian retail scenario Non existence of competitors
Key success factors
Advantage of Indian retail scenario
Non existence of competitors
Acquisition of Spencer's company
Targeting middle and upper middle class families
Site selection
Positioning strategies
Marketing strategies

15. Profitability drivers for food world Pricing strategies Food Non food 2)
Profitability drivers for food world
Pricing strategies
Food
Non food
Fmcg
And other categories of products
Perception of store name

16. Difference between profitability of new and old stores
Facility of the stores
Ambiance of the stores
Variety of products available at the stores
Well connected to the roads
Pricing policies
Marketing strategies
Promotion and offers

17. Number of stores should open
As the making profit is the main motto of the company it can new start coming up with new stores in cities and get the advantage of Indian retail scenario
This will help in employment generation
As the retail sector is one of the major contributor to the Indian economy this will help in developing India at the global stage