Selling Staples & Fresh

The Food Bazaar Way

I am assuming…

• You have been to a Food Bazaar..

• You have seen our TV & Press advertising

• You know that 98% of all kirana store launches

survive.
• Less than 40% supermarkets launched in India, live
today...
I am hoping you know ….

• A supermarket increases CONSUMPTION in its

catchment by 15%!
• That this number could be 35%+ for certain
categories

• Overall ‘value’ and ‘feel good’ context provided by us

actually induces customers to try new offerings &
uptrade..

• That upto 50% of what’s in her bag at exit was not

on her list, when she entered..
The Retailer we have grown up knowing..

A Faceless, Reliable, Box Pusher, Amenable to cranking

Faceless Has no mindshare or scalable identity

Reliable Has same response to the same stimulus.

‘Transparent view to the customer’

Box Pusher Does not alter the elements of the brand mix
Does not use customer/category insights

Amenable to Cranking…..
 The Retailer we are trying to know..

Is a brand in itself; and fully aware of its value

Is manned by people who are ‘just like us’

Plays around with your marketing mix, esp. price

Influences the context and the salience of brand presentation

 She is tough….she can kill

Bhaisahab, mujhe mat sikhaao..

Mortality rate very high in

Food product and service
brands.

Its tough to get it right..

With me, she’s a bit “different”..

Then Now

• Easy, relaxed
• In a hurry
• Shopping as leisure..
• “Shopping – a chore”
• Looking for choices –
• Predecided on choices open mind on brands
• Does not expect advice, • Expects, deals,
inputs at the shop information, new
• Very little decision choices
making at the shop • Open to brand
communication
Food Bazaar : Who Am I ?
Layout Theme
Islands, Not Aisles
Lots of ‘wet market’ feel
Lots of ‘theater’
Basic floors, basic ceiling, racks
Visual Theme
Bright, colourful, warm section
names
Ethnic Indian; local visual
symbols, merchandise to
regional tastes
Lots of customer faces, her
language, expressions..
 The Difference I want to make

• Freshness of Food ‘thanda matlab…baasi’

packed matlab… quality??

• Customisation ‘just the way I want it’

‘how come, they know..’

Fresh Produce…Evolution
“Freshness” Perception Drivers

Fresh food looks clean and tidy (78%)

1st tier
Food sold in stores with high
turnover and high foot traffic is more drivers
fresh (72%)

It is important for me to see stock

movement through a store/outlet as
this assures me it is fresh (68%)
2nd tier
Fresh food looks more natural if it drivers
looks like it has arrived directly from
the farm. (e.g. vegetables may have
mud or debris on them). (63%)

Pre-packed is less fresh than

'just cut' (59%)
3rd tier
Food kept in an air-conditioned
drivers
shop/outlet can remain fresh for a long
time (44%)
Fresh Produce…Evolution
How do we see categories?

• Destination

• Convenience

• Transaction Builders
3 Way Win Approach to Business

• Customer win Better Value; relevant offering

• Supplier win Demand led physical supplychain

Transparent info supplychain
Simpler mkt access; distribution

• Retailer win Differentiated offering

Better value realisation
 “Farm Fresh”: Way Forward

• Engage with the producer

• Cut time spent, and number of links in the
chain

• Gains:
Customer Fresh, safe produce
Farmer Better realisation; better yields
Food Bazaar Customer loyalty
Building Alliances

• Respecting each others’ domain expertise

• Willing to leave some value on the table

• Open take prototypes to market

• Belief in co-creation of value

Come, Lets play …
The Structural SupplyChain Bottleneck is real

• Both, Growers and Retailers are Lots of Small producers

disempowered.
- Pay high transaction costs.
- Have non access to new
products/ markets
Traditional
- Often face helplessness. wholesalers /
suppliers

• Current Channel is short on

- Size, Capital.
- Physical reach infrastructure Lots of Small Retailers

- Transparency, fair practices.

How do I see product Brands?

• Will she switch brand or switch store?

• I can not learn everything – I work with
Category Captains
• “Retailing is a service I provide to product
brands. If I do it better, I’ll earn better
rewards”
• “Category insights from suppliers and
customer proximity from me, is a dream
combination”
 The New Opportunities too are Real

If RETAIL is a service provided to the product

brand, then I am risking Rs 100 Cr of risk
capital every year to build this service for
YOUR brands …

Value added offerings do better with me; cycle

time for learning goes down..

Per Capita Income + Great supplier proposition + Modern trade

= Magic in Asia
The Power Shift is for Real
Share of her basket

• Commodity Foods 25%

• Branded Food/HPC 40%

• ‘Packaged’ Food/HPC 35%

I am the largest “BRAND “ in her purchase basket….

 Our Worldview on commodity foods
supplychain in India
• Produce destruction in the chain is over romanticised….in
a poor country, everything is salvaged
• Delivered price of most agri produce to the urban
customer is already low … the guy who needs help is the
grower
• Indian farmer is a low cost producer. The intervention
required is information….price discovery, demand
pattern, urban preferences, access to capital
• Risk reduction thru information and access to capital will
build next level of value for the growers
• This is a specialist subject and we should actively work
with mature alliance partners.
Food Bazaar : Who is She?

Largest selling soap thru SEC A, B

the year …. Pears Educated, Aspirational
Homemaker/Family
Fruit drinks > Fizz
Youngsters…hang out
Basmati rice = All other Senior citizens..cherry pick
rice put together