A presentation on the marketing of Shakari Bhandar

2. Sahakari Bhandar formed in 1966 was a government owned co-operative.
 With a cash strapped balance sheet ,the floods of 26th July 2005, left the distribution hub of
Sahakari Bhandar devastated!
In 2006 Reliance entered into a Joint Venture with Sahakari Bhandar and helped it get back on its
feet not only did the stores bore a new look but also got help from Reliance to resturcture the Supply
Chain network.
Consumers increased, to quote Lalit Dhakne, GM at Sahakari Bhandar. the consumer reaction has
been "Fabulous, mindblowing, beyond expectation. To tell you in short. We used to attend to about
1000-1200 customers, now we get 2800 customers a day”(July 2006)
With the increase in number of consumers, the sales tripled! (40 lakhs to 1.2cr )
The most crucial assistance Sahakari Bhandar got from Reliance's Retail Concepts was in
sourcing. No longer does the store chain need to deal with individual companies for supplies. Retail
Concepts does that directly and is paid by the store chain only after the goods are sold. That's a
longer credit line for the stores.
Store

3.  Currently, Sahakari has 17 outlets in Mumbai
With the growing volumes the price of the products are further reduced, giving the consumer full
value for money.
This Joint Venture has been a win- win for both Sahakari Bhandar and Reliance Retail as Sahakari
Bhandar has given Reliance's national supply chain project a launch pad and in turn its learnt how to
play with the big boys.

4. With its positioning ‘Sahi Quality, Sahi Price!’ people from the middle income group and local
residents , looking for a fair price deal form a major part of the target group.
 Women initially formed the main target group , however lately with the infrastructural change all
thanks to the JV with Reliance the consumers have started coming in with their families for the
overall shopping experience!
Quoting a customer , "I've been shopping here for 15 years. The prices were very competitive even
earlier. And now everything is available in one store. We get everything in one store and children
enjoy coming out here as well."
Target Group

5.  Each of the air conditioned outlets are spread over an
area of 2200 – 5000 sq ft.
Having uniformed staff , extremely friendly and
helpful.
 Trolleys arranged at the entrance and parking
available at the entrance of the store.
Timings – 9 am to 9 pm Open for 7 days a week.
 With soft music playing in the background and
an open assortment display of products, the consumers
are encouraged to look and feel the products, like fruits
and vegetables , frozen foods , food grains, FMCG
products etc., making the overall grocery shopping
experience a pleasant one!
 The is a Customer Care Centre too for the consumers,
for in case they want to return the goods or goods under
warranty that are damaged etc.
Besides this…
Ambience

6. The design of the store is based on the allocation of floor space(2200 to 5000sq ft)
to –
1. Selling Space
2. Merchandise Space
3. Personnel Space
4. Customer space
Design

7. Neatly labeled bays for consumers to easily identify and move to the required bay

8. Each bay having products arranged on the shelves at an easily reachable level

9. Utensils bay -

10.  Products arranged neatly in shelves, heavy packets kept at the base so that the consumer can easily pick it
up from there

11. 1. Product –
 The products available at Sahakari Bhandar
range from a hand made diya batti to an eco –
friendly Ganesha Idol!
 The products also include home made (not
branded )fresh dosa atta, chutneys, biscuits
etc. Basically, a convenience store, having
all day to day necessities.
 Products are arranged as per categories
in a rack display for FMCGs with the
competing brands are placed on the same
shelf only to give the consumer a wider range
to chose from. Also the ensemble display of
the clothes line added recently.
 The shelves are made such that the highest
one is just above the eye level
and consumers can easily reach out for
products.
Marketing Mix

12. With Ganesh Chaturthi around the corner ,eco – friendly Ganesha idols are made available to the consumers

13. 2. Price –
Sahakari Bhandar lives upto its positioning ‘ Sahi Quality, Sahi Price!’ by giving
discounts on mrp’s of even the FMCG products like soaps, shampoos, oils, etc.
For eg –
You’d end up buying a brand of say shampoo for Rs 73.86 /- whereas its market price would be
Rs.75/-
These price discounts are labeled on the shelves so that the consumer is made aware of how much
he/she is saving per product!
Besides this you will also find ‘Sahi Offers’ like buy 3 get 2 free, ‘Aap ki bachat’ with some amount
off on the products, to keep the inventory moving and attracting the customers attention!

14. Insights

15. 3. Place –
Sahakari Bhandar outlets are located at 17 locations in Mumbai ranging
from Worli to Andheri in primary trading areas having high density of customers to
population. These locations mainly have (unplanned) kirana stores selling maximum of 2 category
products, here is where Sahakari Bhandar comes into play with almost all items under one roof!
All the locations as well as their phone numbers are listed at the back of the bags available at the
store!
4. Promotions –
Sahakari Bhandar promotes itself through
1. Word Of Mouth (WOM)
2. Point – Of – Purchase
3. Samples
4. Demonstrations
5. Special Events

16. Special Events- CSR
An initiative launched to remind
Mumbaikars, on ‘going green’. RUR’s
‘Go Green’ drive is now also supported
by Tetra Pak- the world's leading food
processing and packaging solutions
company and Daman Ganga Recycled
resources.
Go green program by RUR with
Sahakari Bhandar on encouraging use
of cloth bags.
Under this program that was
launched, on 5th June 2010 - special
bins made entirely from recycled Tetra
Pak packages have been installed in
some stores of Sahakari Bhandar.

17. Encouraging use of cloth bags-Using cloth bag would help reduce plastics which
come from the precious elements from the earth crust disturbing the ecology of
forests.
70% of the shoppers at the Sahakari Bhandar bring back their own bag
from home for shopping. A special incentive of Rs 1 off cash discount on every
Rs 200 purchase if customer brings cloth bag shopping. A green tax of Rs 2 per
plastic is charged by plastic bag taken by customer.
Recycling of Tetra Pak packages –Recycling 1.5tons of Tetra Pak packages save
17 trees. So at Sahakari Bhandar the shoppers are encouraged to bring back
empty Tetra Pak packages and in exchange they win exciting recycled gifts like
notebooks, book marks, shopping list dairy. 1lakh post consumed Tetra Pak
packages have already been collected and sent for recycling.

18. Promotion of a movie Three –love, lies, betrayal was held at Bandra Sahakari
Bhandar

19. Strengths

20. 1. Stores at prime locations.
2. Customer loyalty.
3. Strengthened supply chain network thanks to Reliance JV.
4. Affordable prices.
Strengths

21. 1. Some sort of advertising should be taken up so as to increase the awareness in the minds of
untapped potential consumers.
2. With a backing of Reliance , Sahakari Bhandar should start expanding its business not only in
Maharashtra but also in other parts of the country!
Improvements

22. Customer No 1 - Mrs Mallik :
1. Why do you prefer Sahakari Bhandar?
Since its close to my place, I live in Bandra and this happens to be the closest of the lot, with almost all
products available at reasonable prices.
2. How often do you visit the store?
I visit the store once in two weeks.
3. What products do you buy from the store?
I mainly, buy food grains, vegetables , biscuits and detergents.
4. Are you happy with the service given by the store?
Absolutely!
Customer No 2 - Mrs Sangita :
1. Why do you prefer Sahakari Bhandar?
Prices are low
2. How often do you visit the store?
I visit the store once in a week.
3. What products do you buy from the store?
I buy fruits and vegetables , biscuits , pulses, rice and soaps.
4. Are you happy with the service given by the store?
Yes ! People here are friendly and helpful
Consumer Speak

23. Customer No 3 – Mr Gupta :
1. Why do you prefer Sahakari Bhandar?
Location is accessible after work
2. How often do you visit the store?
I visit the store once in a week.
3. What products do you buy from the store?
I buy fruits, ready to cook stuff, maggi, Biscuits, popcorn , ice cream, soaps etc
4. Are you happy with the service given by the store?
Yes !!
Customer No 4 – Mr Sharma :
1. Why do you prefer Sahakari Bhandar?
I just dropped in to check out the store with my friend.
2. How often do you visit the store?
I am visiting it for the first time.
3.So how was your first experience?
This is a bit orgainzed and has some good deals on retail products too!
4. Are you happy with the service given by the store?
Yes. It is satisfactory!

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