D-Mart is a chain of hypermarkets and supermarkets in India operated by Avenue Supermarts Ltd. It has over 100 stores across several Indian states. D-Mart aims to provide a one-stop shopping experience for customers, offering a wide range of products including food, clothing, home goods, and more. It focuses on maintaining low prices through cost control strategies like owning most of its properties and paying suppliers quickly. This cost leadership approach has contributed to D-Mart's success and growth across India.
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D-Mart
1. D-Martis a chain of HYPERMARKET and SUPERMARKET in India started by R K
Damani. As of 2016, it has 100 stores spread across Maharashtra,
Gujrat, Telangana, Andhra Pradesh, Madhya Pradesh and Karnataka. The
company shows a good pace in advancing towards expanding across India.
Avenue Super Marts Ltd (ASL) owns and operates hypermarkets and
supermarkets by the storename D-Mart. D-Mart seeks to providea one-stop
shopping experience for the entire family, meeting all their daily household.
A wide selection of home utility products is offered, including foods, toiletries,
beauty products, garments, kitchenware, bed and bath linen, home appliances
and much more. Since D-Martfirstopened its doors in the Mumbai region in
2000, it has grown into a trusted and well established shopping destination in
Maharashtra, Gujrat, Andhra Pradesh and Karnataka.
D-Martis now looking forward to growing its stores across India.
As per report in business standard, Mumbaibased supermarketchain, D-Mart
made a topline of Rs 3,350 crorein 2012-2013. Thatmakes it the third largest
among the branded retail chains in the country, after futureretail and reliance
retail. D-Martoperates just65 stores in Maharashtra and Gujratand one each in
Hyderabad and Bangalore. Its sales per store, is the highest among grocery chains
at Rs 53 Crore (Reliance makes about7.45 Croreper store).
The 13-year-old D-Mart, is said to be profitable - making around 2.5 % of sales. In
comparison, larger players such as Spencer's and Aditya Birla Retail's more are yet
to break even.
I have chosenthe D-Martstorelocated in Karjatas it is closer to my college and has
a very pressure free atmosphere. To start off with, the D-Mart in Karjat is a
freestanding or a stand-alonestore. Itis isolated and has no adjacentretailers with
which they have to share traffic. This type of store have quite a few advantages
which works in the favor of D-Mart. They are:
No competition in close proximity.
Lot of front space for parking.
No rental cost as the space is owned by D-Mart
INTRODUCTION
SOCIO-ECONOMIC
2. High flexibility in terms of timings.
Better road and traffic visibility is possible.
Build on Highway, not only local people but D-Martcan catch attention
of people passing through highway.
But everything has its black and white side, the disadvantageof D-Mart areas
follows:-
Situated in outskirts of city.
Continuous and consistenttraffic will not flow long distances to visit a
specific store.
Some products you get in bulk only.
There are no fresh vegetables and fruits available in D-Mart, Karjat.
But the chain offers prices that are 6-7 % lower than its competition, no matter
whereit operates, which are a huge draw among its customers.
D-Martis a mix of both Hypermarketand Supermarket. You get products both in
bulk and in small quantities, and they use customer assistanceapproach.
PRODUCT MIX
IDENTIFY RETAIL TYPE AND IT’S PRODUCT/SERVICE CATEGORIES
FOOD
o Staples
o Ready to
eat
o Ready to
cook
o Spices
o Fastfood
o Grocery
o Chocolates
o Socks
APPARELS
o Formal wear
o T-Shirts
o Fabrics & cut
pieces
o Foot wears
o Undergarme
nts
CHILL
STATION
o Soft drinks
o Packaged
juices
o Milk items
o Frozen
foods
o Ice-creams
HOME &
PERSONAL
CARE
o Shampoo
o Facewash
o Detergent
o Liquid wash
o Face cream
o Deodorants
o Moisturizers
o Curtains
o Bedsheets
o Towels
o Plastic
containers
o Crockery
CHILD
CARE &
TOYS
o Kids wear
o Stationary
o Toy station
o Kids
footwear
o Child care
HOME &
KITCHEN
APPLIANCES
o Iron
o Hair dryer
o Toaster
o Mixer
o Coffee-
maker
o Toaster
IN-HOUSE PRODUCTS
Home appliances, comb, towels, staples, clothes, vacuum flasks, lamps,
Headphones, coffee mugs.
3. Here is the analysis of what makes D-Martwork:-
Cost leadership: Thechain offers prices that are 6-7 % lower than its
competition, no matter whereit operates, which are a huge draw among its
customer.
Ownedproperties: Outof the 65 stores it runs, D-Martowns 55 properties,
saving substantially on rent, which constitutes 6-10 % of retailers' sales. The
stores are also large, measuring 30,000 to 35,000 sq. ft. Further, D-Martavoids
opening stores inside malls and thereby saves on high rents and common
maintenance charges.
Cost Control: Costs are further kept low by a no-frills layout and controlled
advertising, also they do not spend much on decorating interiors.
Additional margins : D-Martpays suppliers within 48 hours of delivery, and
they, in turn, allow for an additional 2-3 % gross margin to the chain, enabling
it to keep the prices low at most of its locations. In contrastorganized retailers
often buy goods on credit from suppliers on 30-60-dayscredit.
Sharp Merchandising: A good mix of national products and local products.
Low debt-thecompany has not taken on high debt.
Large productmix offered by D-Martis the main attachment.
Price rangestarts fromRs-10 and ranges according to customer needs.
Buying process for mostof the categories at big bazar is largely price driven.
They make more profits than Reliance store, Futurebazar, etc, because of
their price and discounts they offer.
The main considerationwhileselectingthere locationinKarjatwas,theyneededbigspace toopen
there store.
Theyneededalarge catchmentarea.
Almostall there storesare inprime locations,butinKarjatitsbuildon a highway,astheydidnot
have space in the maincity toopena bigstore.
KEY STRATEGIC DRIVERS OF THE D-MART
MERCHANDISE MIX
SELECTING A LOCATION
4. IMAGESET UP:-
Setting up an image of a discountstore
Offers valuefor money
Providea lot of offers-somethroughouttheyear, somefor a specific
period.
TARGET GROUP:-
Value conscious
Upper/middle income customers.
TECHNOLOGY USED BY D-MART.
CREDT/DEBIT CARD
MACHINE SWIPER
AUTOMATIC BAR CODE
READER
RECIPT PRINTER
CASH DRAWER
IMAGE SET UP & TARGET CUSTOMERS
5. Flyersall overthe city.
Promotionandsalesofferswere presentformostof the products.
Eg-There wasdiscountonAmul Dark chocolate,price was-Rs199, afterdiscount
chocolateswere foronly100 Rs.
There wasone separate whole shelf forproductsthatwere offeredinhuge discounts.
The pricesofferedare economical inD-Mart.
EDLP (everydaylowpricing)pricingstrategyisfollowed.
D-Mart offersminimum2% to10% discountonMRP andstraight 5% on Medical
product,exceptgrocery.
(Bundledprice) twoormore productswere packedandwere available atadiscounted
price.Eg-Parachute oil bundledalongwithsmall parachute moisturizers.
Multiple unitpricing-thisstrategywasfollowedforstimulatingsales.Eg-Soapbars
bundledtogether.
PROMOTINAL MIX