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MARKETING STRATEGY OF ×
 

 

Vishal Mega Mart offers a wide range of products which starts from apparels to food items,

footwear to home furnishing, crockery to sport items, child care products to toys, watches,

drinks etc. There are many in house brands promoted by Vishal Mega Mart. In pursuance of

their business plan to diversify their portfolio of offerings, FMCG products play a key role.

FMCG products are usually meant to fulfill the daily needs of consumers and therefore, VRPL

believe retailing of FMCG products will bring customers to their stores on a frequent basis and

this may in-turn lead to consumption of their apparels. VRPL have a number of private labels for

apparels such as Zepplin, Paranoia, Chlorine, Kitaan Studio, Famenne, Fleurier Women and

Roseau.



Vishal Mega Mart promises its consumers the lowest available price. The concept of

psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Vishal Mega Mart

also caters on Special Event Pricing (Close to Diwali, Christmas, New Year etc.). Selling combo

packs and offering discount to customers. The combo-packs add value to customer. Through

Bundling, they also reduced the price of the products. In addition to VRPL͛s strategy to continue

procurement of goods from small and medium size vendors and manufacturers which leads to

cost efficiencies, VRPL intend to procure FMCG and apparels from low-cost production centers
located outside India. Towards this objective, VRPL͛s propose to increase their procurement of

finished and semi-finished goods from China and thereby realize economies of scale and pass

on the benefits so accrued to their customers. The efforts of VRPL͛s retail business are targeted

towards families having total income which can be classified under the ͞lower middle͟ and

͞middle͟ income groups. VRPL follow uniform pricing policy across their stores in respect of

Private labels and non-branded products sold by them. This enhances brand loyalty, encourages

customer confidence and results in operational convenience. In relation to the other products,

the prices may vary between stores on account of state-specific taxation and vendor policies.



Vishal Mega Mart stores are located in 110 cities with more than 180 outlets. Vishal Mega Mart

has presence in almost all the major Indian cities. They are aggressive on their expansion plans.

VRPL intend to increase their penetration in the country by setting up new stores in cities

where they already have presence, as also entering into new areas in the country. In particular,

they intend to focus on expansion in Tier II and Tier III cities. VRPL target locations with good

infrastructural facilities such as easy accessibility, provision for water, electricity, parking,

security and other basic amenities.

   

Advertising has played a crucial role in building of the brand. Vishal Mega Mart advertisements

are mainly seen in print media i.e. newspapers, Television with Tina Parekh as there in

advertisement, and sometime road-side bill-boards. VRPL͛s category management system is

used to plan promotional schemes. They launch promotional schemes weekly. Apart from

general sales promotion, the category manager formulates promotional plans for ͚slow

movers͛. In addition, to promote sales, they focus on layout of the stores and positioning,
presentation and display of merchandise, in order to appeal to the customer. In addition, VRPL

have introduced, in association with SBI Cards & Payment Services Private Limited, a cobranded

credit card. VRPL͛s propose to continuously undertake such initiatives to increase the

satisfaction of their customers. Some of the features of the co-branded card include Rs 250

discount voucher on signing up for the card and a process by which the cardholder earns five

reward points on every Rs 100 spent. A cardholder accumulates points on the basis of

purchases made and the points accumulated can be redeemed for gifts or purchases. In

September 2005, VRPL entered into a long term advertising agreement with Bennett, Coleman

& Company Limited (͞BCCL͟). Under the agreement, they are entitled to fixed discounts for

Their advertisement in print publications of BCCL for a period of five years from the date of the

agreement. In addition, BCCL would also act as a facilitator for other print and non-print media

of the Times Group i.e. internet, radio and television or any other new medium launched

during the tenancy of the agreement. As a part consideration, VRPL had issued 1,670,605 Equity

Shares of Rs. 10 each and 384,190 Preference Shares of Rs.146 each amounting to an aggregate

of Rs. 300 million.



Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD 28 billion Corporation. The
Company ventured into food and grocery retail sector in 2007 with the acquisition of a south based
supermarket chain. Subsequently Aditya Birla Retail Ltd.expanded its presence across the country
under the brand "more." with 2 formatsSupermarket & Hypermarket.

Our mission is to change the way people shop. We will give them more.,"says Mr. Kumar Mangalam
Birla, Chairman, Aditya Birla Group.This statement clearly articulates what Indian consumers can
expect of the more. chain of stores from Aditya Birla Retail Limited.

The wide range of fresh fruits and vegetables along with private label offerings under brand names
Value, Select and Premium ensure that more. variety is a promise delivered across the store.
 
more. promises best in market pricing. Linking up directly with farmers to source fresh fruits,
vegetables and staples ensure great quality as well as great price. Add to this, the membership
program Clubmore., which provides convenience, customised shopping solutions and savings, and
the more. value promise becomes all the more evident.

The more. brand was successfully launched to representatives of media at a press conference
chaired by the Chairman, Mr. Kumar Mangalam Birla, at the Trident-Hilton rooftop in Mumbai.

Subsequently, the first supermarket was launched in Pune on 31 May 2007 to a phenomenal
response from consumers right from day one. With glowing and positive feedback from consumers,
more. stores are all set to take the market by storm.

The more. chain of stores are being launched across the country with an aggressive roll-out plan,
starting with Pune. By March 2008, more. will be in place across various cities in India.


Supermarket
more. for you - Conveniently located in neighbourhoods, more. supermarkets cater to the daily, weekly
and monthly shopping needs of consumers. The product offerings include a wide range of fresh fruits &
vegetables, groceries, personal care, home care, general merchandise & a basic range of apparels.
Currently, there are over 600 more.supermarkets across the country.

Hypermarket
more.MEGASTORE - is a one-stop shopping destination for the entire family. Besides a large range of
products across fruits & vegetables, groceries, FMCG products,more.MEGASTORE also has a strong
emphasis on general merchandise, apparels & CDIT.

Currently, eight hypermarkets operate under the brand more. MEGASTORE in Mysore, Vadodara,
Aurangabad, Indore, Bengaluru, Mumbai, New Delhi and Hyderabad.

  
Convenient locations within easy reach of consumers and a neat, cheerful and friendly layout, enough
isle space, signage that speaks the consumer's language aiding in identifying what she has come to
shop for easily, all go a long way in ensuring more. convenience.

    To make your shopping experience more exciting more. has created Clubmore. This is the
membership reward program, which reinforces their commitment of consistently adding value to the
shopping experience by choosing to be a part of more. After filling a simple registration form, you can
start enjoying the benefits of shopping with us right from Day 1!

As our esteemed member, each time you shop at more. outlet you earn Reward Points which can be
redeemed in your preferred more. outlet. What's more, as a Clubmore. member, you will also be
entitled to special benefits, besides the regular offers and promotions at more. As
a Clubmore. member you will also receive exclusive SMS alerts for special offers on our products and
services. Currently the Clubmore. program reaches out to over 1 million members.

   Club Through this section, customer can enjoy a
range of exclusive promotions & offers, get details on the latest Club  events and news , get
mouth watering recipes , sparkling home care tips & much more. Now you can also check the total
points accumulated on your Club card.

Aditya Birla Retail Limited. currently has an employee strength of over 11,000. Key functions are
headed by professionals with vast retail experience in India & globally.

Quality & Value through own labels:

Aditya Birla Retail Ltd provides customers a wide choice of products under its own labels. The
objective is to provide quality products at attractive price points to customers. Since quality of the
products is of prime importance, stringent quality norms have been set and are followed. All
manufacturing partners are the best in their class.

 Own label Food Brands :more., Feasters, Kitchen's Promise, and Best of India
Home & Personal care brands :more., Enriche, 110%, Pestex, Paradise, and Germex

   ! The more. for you advantage: more. promises a world-
class pleasurable shopping experience to Indian consumers in their very own neighbourhood. more.
quality,more. variety, more. convenience and more. value are the four delivery cornerstones of the
more. chain of supermarket stores.

 "#
Every product at more. goes through a thorough quality check process ensuring 100 per cent more.
satisfaction.

 #
Apart from a large range of national brands, shoppers will also find a section called the Best of India,
which is an assortment of unique products sourced from across India.

 $ is committed to assure our consumers of the quality of our products and services on a
consistent basis and earn consumer trust and recognition of $ as India's premier retail
organization. The above will be achieved by :

1. Ensure that the products available at the stores meet the regulatory and statutory requirements
through implementation of best practices (Good Manufacturing Practices, Good Hygienic Practices,
Good House Keeping, etc.) at every stage and in every operation.

2. Ensuring that for 'Own Brand', the products meet our stringent specification requirements; while at
our processing sites and extended supplychain, the manufacturing practices and processes meet the
highest standards of GHP & GMP at every stage and in every operation.

3. Ensuring that manpower resources are committed, competent, fully trained and working in a seamless
manner.

4. Ensuring that different functions including buying & merchandising, supply chain management,
operations and business partners understand and share our concern for quality.

5. Implementing a rigorous, credible & efficient assessment, inspection, testing & certification system.

6. Striving for continuous improvement through dynamic review process.

$ is also committed to respecting our Corporate Social and Environmental responsibilities.