MORE.

Presented by: Akanksha Gupta Avni Jain Shiven Mehta Swaroop Kumar
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"OUR MISSION IS TO CHANGE THE WAY PEOPLE SHOP. WE WILL GIVE THEM MORE." -MR. KUMAR MANGALAM BIRLA

Vision :
"TO CONSISTENTLY PROVIDE THE INDIAN CONSUMER COMPLETE AND DIFFERENTIATED SHOPPING EXPERIENCES AND BE AMONGST INDIA'S TOP RETAILERS, WHILE DELIVERING SUPERIOR RETURNS TO ALL STAKEHOLDERS".

About More.
More. is the retail brand owned by Aditya Birla Retail Limited (ABRL) Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD 28 billion Corporation
Indias 2nd largest supermarket operator

Acquired Trinethra, the south-India based chain of stores in 2006 May 2007: Aditya Birla Retail Limited (ABRL), launched their own brand of stores MORE. 2 formats Supermarket & Hypermarket

About More.
Till end of July 2008:
Supermarkets (including the former Trinethra stores): MORE.
minimum size of 2,500 sq ft Currently, there are over 600 more

Hypermarkets: MORE. Megastore

minimum size of 50,000 sq ft Currently, 3 hypermarkets operate under the brand more.

Clubmore. - loyalty program, currently has a strong membership base of over 1 million members The company has an employee strength of over 11,000 employees

Porters five forces: Analysis

5 FORCES Rivalry amongst competitors ANALYSIS
Big Bazaar, Big Apple, Reliance Fresh, Easyday etc

Threat of entrants

FDI policy not favorable for international players International players looking to foray India The unorganized sector has a dominant position There are a few players who have a slight edge over others on account of being established players and enjoying brand distinction

Bargaining power of supplier

Bargaining power of buyers

Consumers are price sensitive Availability of more choice Unorganized retail

Threat of substitutes

Current Strategy
Closed down non- performing stores
Had shut down 107 non viable stores

Increased private labels Shifted focus to higher margin format hypermarkets Pricing strategy:
Customized catchment strategy to build sales

Optimization strategy: to boost returns and effective use of available real estate
To double the number of SKUs from 1.25 SKUs/ sq. ft. to 2 SKUs/ sq. ft.
Increase the rack height

Customer Segmentation
Based on
Income Price sensitiveness

Target Customer
More. Targets upper and middle class customers The large and growing young working population is preferred as a market segment More. Specifically targets working women and home makers who are the primary decision makers

Life cycle of MORE.

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Positioning
Value positioning= EXTRA Hamesha Extra concept

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Positioning
High Service

Low Price

High Price

Low Service
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MARKETING MIX

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Products
Range of products:
Processed foods home and personal care fruits and vegetables general merchandise Apparel CDIT

Many of the stores have a bakery and other shop in shops catering to mobile stores, pharmacy, Indian sweets and the like

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More.
Sugar Ghee Pulses
Maha saver packs (e.g. Arhar dal @ Rs. 104/ kg compared to Rs. 125 @ Kiranashop) Other brand: Rajdhani

More. 110%
Detergent; whiter brighter clothes
(Rs. 60/kg as compared to Tide @ Rs. 62/900gm)

Toilet cleaner Surface cleaner Soap bars

(@ Rs. 25/240gm)

Spices Dry fruits Atta Cola Sharbat

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Feasters
Namkeen Squash Chips Noodles

Biscuits Best of India: ready to eat

Tea: Selecta Coffee Liquid blue @ Rs. 28 250 ml (Ujala @ Rs. 35) Phenyl fresh Pickle: Kitchens Promise

Have more than 350 products under private label. 15% cheaper than any other FMCG brands Private labels sales are 60-70% more than any of the benchmark products of FMCG majors Packaging is similar to competitors product
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Pricing
Value Pricing Promotional pricing Bundling

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Place
Over 600 supermarket stores and 3 hypermarket stores across India Located at main city- tier I & tier II Approachable destination

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SUPERMARKET STORE LOCATOR

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Punjab Haryana NCR Jaipur Ahemedabad Anand Baroda Surat Rest of Gujarat Nasik Mumbai Pune Karad Kolhapur

26 8 29 13 12 1 6 5 4 13 46 22 2 5
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Solapur Baramati Ahmednagar Aurangabad Sangamner Hubli- Belgaum

2 1 1 3 1 11

Mangalore
Bangalore Mysore Kochi Kottayam Aleppey

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66 11 20 4 1

Kozikhode

6
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Vizag Vijaywada

28 27

Hyderabad
Nizamabad Howrah Kolkota Hooghly Asansol Pattanamtitha

90
1 4 16 1 4 2

Kollam
Chennai

1
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Promotion
Below the line promotion Above the line promotion
Coupon, discount, more of a product at normal price, gift with purchase, exchange offer

Giving advertisement in newspaper, internet (own website)

Partnership with various vendors/ suppliers

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People
Aditya Birla Retail Limited. has an employee strength of over 11,000 Well trained staff
More than 1300 employees were given training for front end retail

Empowered individual

Performance oriented culture

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Management Team
Thomas Varghese, CEO - Aditya Birla Retail Ltd. Russell Berman, CEO Hypermarket Satendra Aggarwal, CEO Supermarket Giridhar Sanjeevi, CFO Ramesh Mitragotri, CPO Shashi Sareen, Head Quality Vidhya Srinivasan, Head Strategy Manoj Krishnan, CIO Anurag Srivastava, Head - Private Label T V. Venkataraman, Head - Internal Audit
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Physical Evidence

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Process
Daily replenishment IT software: Oracle
Initially they had Navision Oracle is comparatively faster Reliance fresh uses SAP (so far the best but expensive)
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More. Mansrover Garden outlet

Promotional offers: monthly offers
Not on per day basis Reliance fresh: vegetables high priced in the morning and lower in the evening

Current promotional offers:

Winter festival Shop worth Rs. 3000 get a halogen room heater free

Reward offers: Clubmore Offer money back Exchange policy: within 14 days by presenting the original memo
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 System: Oracle
Initially they had Navision Oracle is comparatively faster Reliance fresh uses SAP (so far the best but expensive)

Daily stock check and daily replenishment of goods

Warehouse: Bacoli, near Narela

Store layout: at store managers discretion

Average sales per day: Rs. 25000

Vegetables: Rs. 6000 per day Reliance Fresh: Rs. 25000 per day only by selling Milk
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 Bulk sales: more between 110th of a month

Rest of the month: sales based more on day to day purchase Sales maximum on weekends

Sales of staples are maximum Footfalls:200 per day

Conversion rate: 30 per day

Rent: Rs. 1,50,000

Previously it was Rs. 2,00,000 (renegotiated) Had shut down for 3 months (Feb to June): low sales, high cost
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 Customer base: A class USP:

Pricing: cheapest, same throughout the day Better quality

HUL dominated
Have pre- signed contracts with companies A minimum fixed visibility guaranteed

60% of customers buy from the counter

Also reduces pilferage

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 50% space occupied by MORE. Products

Only one cash counter

Competitors: Reliance Fresh close by Free home delivery (upto 2 km of amount >= Rs. 300)
For regular and close by customers even one or two items are sent

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 Consumer Insight
Reliance fresh and More. provides comparative prices and schemes, at More. vegetables are very fresh till 8:30 am but in the evening they arent so fresh. Although there is just one cash counter and it takes a little larger for billing but still I shop at More. because it is closer to my home instead of Reliance Fresh - Mrs. Sheena Arora, Housewife, 32 yrs

Branch manager:
Lokesh Sharma: 9718963222

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More. Pusa Road outlet

System: Daily replenishment
ARS: Automatic replacement stocks

MBQ: Minimum Basic Quantity

Catchment of nearby residents

Customer feedback form available at the cash counter

Weekly feedback goes to the head office

Monthly target for Dec: Rs. 40 lack (Pusa Road) Other competitors:
Big Apple, Old Rajinder Nagar Fair Price, Patel Nagar
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 6 Cash counters Local brands (for selected products) 24 customer service associates Store Manager:
Mr Inder (9990802223)

Assistant Store Manager: Mr. Amit

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More. Paschim Vihar outlet

Location: Main market, jwalaheri Area: 1870 sq ft 18 employees (Customer service associates + Store manager) Other competitors: Big Apple, Reliance Fresh Had an apparel section, closed it recently because of low sales Average turnover: 17-18 lac per month

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 USP: price, ranges, latest manufacturing rates, customer service

Insights: limca pearl pet @ Rs.55 + buscuit pack free worth Rs. 15; kirana @ Rs. 50; Easyday @ Rs. 42

Rent charges very high: Rs. 1,40,000 per month

Very high operational cost

Total Sales: 10-15% higher as compared to Q2 of previous year Store Manager: Mr. Wakrambam

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More. Noida sec 11 Outlet

14 employees (customer service associates + store manager) Stock is replenished daily in the morning based on the previous days closing entries Most of the offers were on Private Label products

More discounts; More= customer loyalty

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 Products not sold at competitors

Magazines Journals Blankets Neva thermal

Located in the main market (block 16 market) Competitors: Kirana Stores Home delivery for amount> Rs. 1000

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Expected results for FY2010

Supermarket network to become Ebidta- positive; retail company to become Ebidta- positive by 2012 Expected sales turnover: Rs. 1,600-1,700 crore
45% growth w.r.t previous year; turnover for FY 2008-09: Rs. 1,130 crore

19% of total sales expected to be from Private labels Rent to revenue ratio: 3 to 4% To close supermarket count at 680-690 stores. Add 60-70 more private label brands

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Sales Turnover (in Crore)

1800

1600
1400 1200 1000 800 600 400 200 0 2007-08 2008-09 2009-10 (expected) Sales Turnover (in Crore)

Sales (in crore)

Financial Year

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More. Future strategy

Front end operations

Open to an IPO by 2012 Become a $2 billion by 2015-16 1600-1700 supermarkets and 80-100 hypermarkets by 2015-16

Back end operations

Collaborative approach: to pool logistics such as fruits sorting centers Regional processing centres with Reliance, Spencers, Future group for staples Phased Scale up Information sharing with competitors

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Summary
More. is still in initial stages of growth
To maintain higher margin, More. focuses more on its private label products

Volatile commodity and raw material prices accompanies by fluctuating inflation in India puts significant pressure on margins Focus on rural market
70% of Indian household

To achieve profitable growth, supply chains need to be transformed to:

Handle larger volumes Expand reach Balance costs
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THANK YOU

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