ekta zatakia
Ekta Zatakia
INTRODUCTION
Apna Bazar, probably the oldest and largest consumer co-operative multi-state society with a customer base of over 12 lakhs. The Rs 140-crore retail chain, that, for over 55 years remained largely “middle-class”,Apna Bazar has 80 outlets in Mumbai, Thane and the neighbouring Konkan region. It has recently opened its first shop outside the state in Goa. It recorded a turnover of Rs 127 crore for the year 2003-04.
HISTORY
In 1948 it started with The Naigaon Grahak Sahakari Mandal Limited, which became Mumbai Kamgar in 1958-59 after other consumer co. op. society merged into it. In 1962-63 the organization became Madhyawarti Grahak Sahakari Mandal.
In 1968, the organization stated the nations first departmental store on the mill worker dominated areas like Naigaon under the name of APNA BAZAR.In short time Mumbai Kamgar brand APNABAZAR grew popular all over Mumbai and has never looked back since.After successfully establishing a wide network of branches all over Mumbai, new branches were opened along the Kokan strech following demand. Further franchisees were encouraged livelihood opportunity to many entrepreneurs.
The trust of the customer in the organization has been maintained and upheld till date. The organization is about to cross over another milestone today.
PURPOSE OF ESTABLISHMENT
There was an industrial lock –out as a result of which many textile workers became umemployed. In order to help these workers and to provide them with employement Mumbai Kamgar Madhawarti Grahak Sahakari Sanstha Limited came into existence . They started a co-operative under the brand name “ Apna Bazaar”
BRAND NAME“ Apna Bazaar”
When the brand name for the store had to be selected suggestions were called from the customers. The customers were asked to suggest a name they would like for the store. the name apna bazaar was selected because of the feel it generated.Since all the and commodities were available under one roof it was a “bazaar” since they felt a sense of belonging the name “apna” was appropriate.
Tagline
“For us customer is First”
OUTLETS
Today ,Apna Bazaar has it’s outlets in Mumbai ,Konkan and Goa. In Mumbai it has 68 outlets,11 outlets in Konkan and 1 in Goa. Of these there are
Departmental stores ---------8 Medical stores---------------4
Supermarkets -----------------7 Franchise stores-------------37
Food stores-------------------24
LOCATION
The location for the store is selected taking in consideration the residential population in the area, the standard of living of the people, the amount of business the other shops are doing and also future development that are likely to take place in that area in future.
AREA COVERED
Apna Bazar has 80 outlets in Mumbai, Thane and the neighbouring Konkan region. It has recently opened its first shop outside the state in Goa. However the density of Apna Bazar is high in Naigoan and Chembur
SPACE REQUIRED
The minimum requirement of area for setting up Apna Bazar is1000 sq.feet. The biggest store is at Vashi, which is spread across 27000 sq.feet.
TARGET SEGMENTS
The store was started keeping in mind the lower middle class section of the society. But gradually it has moved up the consumer ladder with the inclusion of the middle class as its target consumer. Now slowly it is drawing the upper class towards it. It now caters to almost all the segments of the society depending on the location. In order to attract the upper class & to combat growing competition in the retail industry it is making changes in its product-mix.
CHANGE IN PRODUCT MIX
Commodity Tones (2002-03) Tones (2003-04)
Rice 1420 1325
Wheat 1070 1050
Dal 1410 1360
Pulses 800 785
The above table indicates decline in the sales of Rice, Wheat, Pulses etc which shows the change in the food culture/consumption pattern of the consumer. It indicates that the consumers inclination towards ready-to-eat food is increasing. Taking this into consideration Apna Bazar had made has made appropriate changes in its Product Mix. Slowly the Percentage of food grains, pulses has declined and that of FMCG products has increased. In a couple of years the percentage of poultry products in the product mix would increase whereas that of food grains pluses etc. would decline. This would further change the product –mix of APNA BAZAAR.
INVENTORY
Sources
The F.M.C.G. products are directly from the company whereas food grains are purchased from a market at Thane, Vegetables & fruits are purchased from RadhaKrishna foodland ,Dry fruits are purchased from market in Vashi.
Valuation of stock.
The physical method used for valuation of stock. The stock is valued on FIFO basis i.e. first in first out basis.
Inventory turnover
Ø Fruits, vegetables, milk (Perishables) are ordered daily.
Ø Food grains, Sugar on alternate days.
Ø FMCG products, biscuits, tea are ordered once a week.
Ø Oil 2-3 times a week.
Ø Utensils in 1 or 2 months.
Unsold stock
The stock turnover for Items like cakes,vegetables,Fruits ,milk etc.are on Daily basis.
Commodities like foodgrains, sugar, tea etc don’t remain unsold. If the vegetables remain unsold on the day of purchase then they are changed on the next day itself as the shelf life is very short, of not more than 24 hrs. In case ofitems like foodgrains remaining unsold they are discarded only when they deteriorate.FMCG products if remained unsold are returned to the the company after 6-8 months and the amount is adjusted against the purchase amount. Incase of clothes the inventory is changed after 2-3 months.
Shortage of inventory
APNA BAZAAR is never short of inventory of branded products. But in case of unbranded products like masalas, pickles etc if the inventory is short then nothing can be done on the spot.
Trade discounts
The purchases are made in bulk and the discounts received from the suppliers are passed on to the consumers in various forms. Usually the benefits are passed on the to the customers in the form of reduced Prices on almost all the commodities a discount of 5% on MRP is given. Other than that if the purchases exceeds Rs.3000/- in 3 months then the consumers are given 1% rebate i.e they can take home an article equivalent to that amount absolutely free of cost. Other than that consumers are given Bonus points on the purchases. Besides if the purchases exceeds Rs. 500/- at a time than they are given a gift on the spot.
Store Layout
Layout of shop Apna Bazaar does not have any specific layout of shop. But in most of outlet the 1st division you would come out is Vegetable, Fruit, Medical product, food grains, and FMCG product. The only think that is kept under consideration that Heavy Product like 5kg. Sugar, 10kg. Wheat, 5 ltr. Oil is near cash counter for convenience of customer. In case of display they see to it that display at entrance is very colourful & attractive. Hence they display cosmetics & FMCG product. Besides product, which is new to the market, are also displayed to grab attention of consumer
Product Display
The brands are displayed in a very attractive manner .The decision to place a Brand on a particular shall depends upon the Market share enjoyed by the company /Brand. Usually there are 5 Shelves. Out of which 2nd, 3rd & 4th shelves are most important ones on which the brand with high market share or high brand equity are placed. These products are always in demand by the customers.
Footfalls
In big stores, like the departmental store at Andheri, there are 2000 to 3000 footfalls in a day (on weekdays) & on weekends there are around 3000 to 3500 footfalls. In small outlets there are around 100 footfalls on regular days .On weekends there are 200 to 250 footfalls . The footfalls are more especially on Sunday.
The footfalls are more in evening between 6.30pm. & 8.30pm .Whereas the footfalls are comparatively low during the afternoon slot of 1.30-3.30 pm. Keeping this in mind stores are closed down during this time. In this time the staff are rearrange the merchandise in the store.
Consumer base
It has a Consumer base of 12 lakhs
Consumer loyalty
Over the period of 56 years Apna Bazaar has developed a strong brand image in the mind of the consumers. It enjoys strong consumer loyalty. There are just 4%-5% consumers who shift over to other retail stores.
Mode of payment
In ApnaBazar the mode of payment is Cash, Credit card, Debit card, Ticket restaurant, and Sodexhopass coupon. No individual credit is given. However ApnaBazar also supplies commodities to govt. Institutes, Hospital etc. They supply food grains, Grocery etc. In this case they give a credit of month.
Shoplifting
ApnaBazar does fall the problem of shoplifting .However the percentage of shoplifting,theft is low because of presence of watchman,&staff . If there is sale of Rs. 100 only ½ % is lost due to shoplifting. So the percentage of shoplifting is just 0.5%.
U.S.P
· Pure quality commodity
· Quantity is accurate
· Surety of no duplication
· All prices below MRP including medical product.
· Guarantee on each product.
Private labels
Apna Bazaar has various products under its Brand name. These products are manufactured by Apna bazaar in its production units and are sold in its various outlets. Apna Bazaar follows Family Branding by selling the various product lines under the brand name of “APNA BAZAAR”. The various products, which are sold: -
1. Oils (Groundnut, Sunflower)
2. Masalas (Biryani, Sambar, Pav Bhaji)
3. Pickles (Chilli, Lime etc)
4. Others (Chilli Powder, Whole Spices, Kokam)
These Private brand or Private labels are usually kept on the 2nd or 3rd Shelf for grabbing the customer’s attention.
Sources of Income
§ Retailing is their core activity and a major part of their
income come from the various retail outlets.
§ They supply commodities like Dal, Pulses, Food grains,
Cereals to Govt. Institutions, Hospitals for their
Canteens. A 30 Days credit is given to them.
§ They also earn income from the company racks that they display in their outlets. These racks contain the products of the particular company and the in turn pays Apna Bazar for displaying these racks. E.g. Maggie, Colgate, Pepsodent, Vicks, Nescafe etc.
§ They provide space to companies e.g. MEPL (Electronic goods) in order to display and sell their goods by charging rent for space provided.
§ They have 37 Franchise outlets, which act as a source of income for Apna Bazar as Apna Bazar supplies 70% of goods.
§ Provide place to banks for opening ATM center by charging rent since almost all the outlets are owned by Apna bazar.
§ MetLife India signed an agreement with Apna Bazar Co-operative for selling life insurance policies. Based on the agreement, Apna Bazar Co-operative shall become corporate agents for MetLife India and offer MetLife India products to its huge customer base. Henceforth Apna Bazar will enable its customers to build financial freedom through Metlife India products based on need analysis. Apna Bazar will receive a commission of 35% on Premium amount.
Exports
'Apna Bazar ' is a 55 year old co-operative organisation with
us ,$ 37 million annual turnover through 07 departmental
stores, 06 super markets & 65 retail outlets.
EXPORTERSOF:
FRESH & FROZEN SEAFOODS , FRESH WATER FISH .
Apna bazaar used to export commodities like fish and grapes to Europe . Inspite of good earnings on exports they have discontinued the exports from this year .This the reasons for the discontinuation was due to:
1) the goods were seasonal in nature .
2) in case of grapes the jalgoan region in which grapes where cultivated was hit by drought ,thereby by affecting the production of grapes.
3) Besides the grapes were sprayed with certain chemicals which were banned in the European countries,thereby further affecting the exports.
4) Besided exports is not Apna Bazar’s core activity therefore the decision to discontinue exports was taken.
TIE –UPS
Oil major Hindustan Petroleum Corporation Ltd (HPCL) and Apna Bazar Co-operative have entered into a tie-up.Its outlets is called APNA BAZAR –HPCL speed mart.By joining hands, Apna Bazar and HPCL aim to leverage their synergy for attracting consumers. HPCL would do it by offering more services at the petrol pumps, while Apna Bazar would gain access to the large base of customers visiting the gas stations of the oil giant .It has
three Outlets in Mumbai at
1.CHEMBUR 2.DADAR 3.NERUL
Franchise
Apna bazaar has 37 franchise stores sread acroos Mumbai and a few regions in the Konkan.In the franchise store the board of Apna Bazar is put up and 70% of it’s goods (foodgrains, pulses etc.) is supplied by Apna bazaar.Besides Apna Bazar send there employees to train the franchisee.
The criteria for becoming the franchisee of Apna Bazar is
1)The financial background of the individual
2)The area in which he is planning to open the store i.e. the location ,population,standard of living etc.
Sister concerns
Apna bazaar has various sister concerns. These are:
1) Apna Sahakari Bank
2) Mumbai Kamgar Sevak Sahakari Patpedi
3) Apna Bazar Adhikari Sahakari Patpedi
4) Ashok Mehta institute .
Financial Analysis
In the financial year 2003-04 Apna Bazar dept. stores, supermarkets and other outlets total retail sales was Rs. 99 Crores and 52lacs .It registered an increase of Rs. 1 crore and 56 lacs as compared to previous year.
TOTAL SALES
In the financial year 2003-04 the organization’s total sales amounted to Rs. 127 crores and 36 lacs. There has been a fall of Rs. 5 crores in the total sales compared to the previous years. This was due to loss making outlets were closed down.
Expenditure
Out of the total expenditure incurred by Apna Bazar Payment to staff constitutes to more than 40-45% in the financial year 2001-02, 2002-03, 2003-04.
Also Interest on deposits and borrowings were around 20-25%. Apna Bazar borrowed money in order to set it off against the losses. These lead to increasing interest burden and almost resulting into debt trap.
BUDGETED & ACTUAL
The budgeted sales of Apna Bazar for the year 03-04 were Rs, 14050(in lacs) where as the actual for the year 03-04 were Rs. 12736(in lacs). Also the Actual gross profits Rs.1215 (lacs) were less than the budgeted gross profit Rs.995(lacs).
The total budgeted expenses for the year 03-04 were Rs.1450 lacs were as the actual expenses were Rs 1331 (lacs).There is a favourable variance between budgeted exp. And actual exp. Also the Budgeted net profit was expected to be Rs. 15 (lacs) but had to face a loss of Rs. 120(lacs). For the future Apna Bazar has planned to make a net profit of 15 lacs for the year 2004-05.
MEASURES TAKEN TO ERIDICATE LOSSES
Since Apna Bazar has incurred losses of Rs. 150 lacs in the financial year 2003-04. To eradicate these losses they have taken the following steps.
§ They are trying to reduce the inventory turnover to two (2) days with the help of Radha Krishna Foodland. These would reduce the blockage of capital and interest on it.
§ The concept of Shopping on wheel has been drastically cut down due to government regulation of disallowing vehicles on road, which are 15 years old. Another reason is that Apna Bazar outlets are now available in almost all areas of Mumbai.
§ Apna Bazar has discontinued the outlets, which are making losses for many years. Outlet in Bandra was closed.
§ They are trimming the staff and there has been no new intake of staff as of date.
§ Training and Development of staff in order to improve their efficiency and productivity.
Future growth strategy
They are planning to have tie ups with amul ,parle etc. and start outlets at par with with new super markets .and open stores exceeding 50000+sq fts ,equipped with air conditioners ,trolleys etc there by making shopping a pleasurable experience .
Competitive Scenario
Only place where Apna Bazar scores over it’s competitors is that it has a very strong network.
But D-Mart and Giant Hypermarket provides the experience of shopping which apna Bazar does not provide.
It’s believes kirana wala is not a competitor for them as they sell products at mrp ,ensuring quality and quantity ,where as kirana wala
Pitfalls And Suggestions.
1. Ambience not satisfactory
2. Congested (lack of space)
3. Improper management of inventory.
4. No Window display
5. Lack of proper security measures.
6. Lack of parking space
7. Does not have trolleys
Apna Bazar, probably the oldest and largest consumer co-operative multi-state society with a customer base of over 12 lakhs. The Rs 140-crore retail chain, that, for over 55 years remained largely “middle-class”,Apna Bazar has 80 outlets in Mumbai, Thane and the neighbouring Konkan region. It has recently opened its first shop outside the state in Goa. It recorded a turnover of Rs 127 crore for the year 2003-04.
HISTORY
In 1948 it started with The Naigaon Grahak Sahakari Mandal Limited, which became Mumbai Kamgar in 1958-59 after other consumer co. op. society merged into it. In 1962-63 the organization became Madhyawarti Grahak Sahakari Mandal.
In 1968, the organization stated the nations first departmental store on the mill worker dominated areas like Naigaon under the name of APNA BAZAR.In short time Mumbai Kamgar brand APNABAZAR grew popular all over Mumbai and has never looked back since.After successfully establishing a wide network of branches all over Mumbai, new branches were opened along the Kokan strech following demand. Further franchisees were encouraged livelihood opportunity to many entrepreneurs.
The trust of the customer in the organization has been maintained and upheld till date. The organization is about to cross over another milestone today.
PURPOSE OF ESTABLISHMENT
There was an industrial lock –out as a result of which many textile workers became umemployed. In order to help these workers and to provide them with employement Mumbai Kamgar Madhawarti Grahak Sahakari Sanstha Limited came into existence . They started a co-operative under the brand name “ Apna Bazaar”
BRAND NAME“ Apna Bazaar”
When the brand name for the store had to be selected suggestions were called from the customers. The customers were asked to suggest a name they would like for the store. the name apna bazaar was selected because of the feel it generated.Since all the and commodities were available under one roof it was a “bazaar” since they felt a sense of belonging the name “apna” was appropriate.
Tagline
“For us customer is First”
OUTLETS
Today ,Apna Bazaar has it’s outlets in Mumbai ,Konkan and Goa. In Mumbai it has 68 outlets,11 outlets in Konkan and 1 in Goa. Of these there are
Departmental stores ---------8 Medical stores---------------4
Supermarkets -----------------7 Franchise stores-------------37
Food stores-------------------24
LOCATION
The location for the store is selected taking in consideration the residential population in the area, the standard of living of the people, the amount of business the other shops are doing and also future development that are likely to take place in that area in future.
AREA COVERED
Apna Bazar has 80 outlets in Mumbai, Thane and the neighbouring Konkan region. It has recently opened its first shop outside the state in Goa. However the density of Apna Bazar is high in Naigoan and Chembur
SPACE REQUIRED
The minimum requirement of area for setting up Apna Bazar is1000 sq.feet. The biggest store is at Vashi, which is spread across 27000 sq.feet.
TARGET SEGMENTS
The store was started keeping in mind the lower middle class section of the society. But gradually it has moved up the consumer ladder with the inclusion of the middle class as its target consumer. Now slowly it is drawing the upper class towards it. It now caters to almost all the segments of the society depending on the location. In order to attract the upper class & to combat growing competition in the retail industry it is making changes in its product-mix.
CHANGE IN PRODUCT MIX
Commodity Tones (2002-03) Tones (2003-04)
Rice 1420 1325
Wheat 1070 1050
Dal 1410 1360
Pulses 800 785
The above table indicates decline in the sales of Rice, Wheat, Pulses etc which shows the change in the food culture/consumption pattern of the consumer. It indicates that the consumers inclination towards ready-to-eat food is increasing. Taking this into consideration Apna Bazar had made has made appropriate changes in its Product Mix. Slowly the Percentage of food grains, pulses has declined and that of FMCG products has increased. In a couple of years the percentage of poultry products in the product mix would increase whereas that of food grains pluses etc. would decline. This would further change the product –mix of APNA BAZAAR.
INVENTORY
Sources
The F.M.C.G. products are directly from the company whereas food grains are purchased from a market at Thane, Vegetables & fruits are purchased from RadhaKrishna foodland ,Dry fruits are purchased from market in Vashi.
Valuation of stock.
The physical method used for valuation of stock. The stock is valued on FIFO basis i.e. first in first out basis.
Inventory turnover
Ø Fruits, vegetables, milk (Perishables) are ordered daily.
Ø Food grains, Sugar on alternate days.
Ø FMCG products, biscuits, tea are ordered once a week.
Ø Oil 2-3 times a week.
Ø Utensils in 1 or 2 months.
Unsold stock
The stock turnover for Items like cakes,vegetables,Fruits ,milk etc.are on Daily basis.
Commodities like foodgrains, sugar, tea etc don’t remain unsold. If the vegetables remain unsold on the day of purchase then they are changed on the next day itself as the shelf life is very short, of not more than 24 hrs. In case ofitems like foodgrains remaining unsold they are discarded only when they deteriorate.FMCG products if remained unsold are returned to the the company after 6-8 months and the amount is adjusted against the purchase amount. Incase of clothes the inventory is changed after 2-3 months.
Shortage of inventory
APNA BAZAAR is never short of inventory of branded products. But in case of unbranded products like masalas, pickles etc if the inventory is short then nothing can be done on the spot.
Trade discounts
The purchases are made in bulk and the discounts received from the suppliers are passed on to the consumers in various forms. Usually the benefits are passed on the to the customers in the form of reduced Prices on almost all the commodities a discount of 5% on MRP is given. Other than that if the purchases exceeds Rs.3000/- in 3 months then the consumers are given 1% rebate i.e they can take home an article equivalent to that amount absolutely free of cost. Other than that consumers are given Bonus points on the purchases. Besides if the purchases exceeds Rs. 500/- at a time than they are given a gift on the spot.
Store Layout
Layout of shop Apna Bazaar does not have any specific layout of shop. But in most of outlet the 1st division you would come out is Vegetable, Fruit, Medical product, food grains, and FMCG product. The only think that is kept under consideration that Heavy Product like 5kg. Sugar, 10kg. Wheat, 5 ltr. Oil is near cash counter for convenience of customer. In case of display they see to it that display at entrance is very colourful & attractive. Hence they display cosmetics & FMCG product. Besides product, which is new to the market, are also displayed to grab attention of consumer
Product Display
The brands are displayed in a very attractive manner .The decision to place a Brand on a particular shall depends upon the Market share enjoyed by the company /Brand. Usually there are 5 Shelves. Out of which 2nd, 3rd & 4th shelves are most important ones on which the brand with high market share or high brand equity are placed. These products are always in demand by the customers.
Footfalls
In big stores, like the departmental store at Andheri, there are 2000 to 3000 footfalls in a day (on weekdays) & on weekends there are around 3000 to 3500 footfalls. In small outlets there are around 100 footfalls on regular days .On weekends there are 200 to 250 footfalls . The footfalls are more especially on Sunday.
The footfalls are more in evening between 6.30pm. & 8.30pm .Whereas the footfalls are comparatively low during the afternoon slot of 1.30-3.30 pm. Keeping this in mind stores are closed down during this time. In this time the staff are rearrange the merchandise in the store.
Consumer base
It has a Consumer base of 12 lakhs
Consumer loyalty
Over the period of 56 years Apna Bazaar has developed a strong brand image in the mind of the consumers. It enjoys strong consumer loyalty. There are just 4%-5% consumers who shift over to other retail stores.
Mode of payment
In ApnaBazar the mode of payment is Cash, Credit card, Debit card, Ticket restaurant, and Sodexhopass coupon. No individual credit is given. However ApnaBazar also supplies commodities to govt. Institutes, Hospital etc. They supply food grains, Grocery etc. In this case they give a credit of month.
Shoplifting
ApnaBazar does fall the problem of shoplifting .However the percentage of shoplifting,theft is low because of presence of watchman,&staff . If there is sale of Rs. 100 only ½ % is lost due to shoplifting. So the percentage of shoplifting is just 0.5%.
U.S.P
· Pure quality commodity
· Quantity is accurate
· Surety of no duplication
· All prices below MRP including medical product.
· Guarantee on each product.
Private labels
Apna Bazaar has various products under its Brand name. These products are manufactured by Apna bazaar in its production units and are sold in its various outlets. Apna Bazaar follows Family Branding by selling the various product lines under the brand name of “APNA BAZAAR”. The various products, which are sold: -
1. Oils (Groundnut, Sunflower)
2. Masalas (Biryani, Sambar, Pav Bhaji)
3. Pickles (Chilli, Lime etc)
4. Others (Chilli Powder, Whole Spices, Kokam)
These Private brand or Private labels are usually kept on the 2nd or 3rd Shelf for grabbing the customer’s attention.
Sources of Income
§ Retailing is their core activity and a major part of their
income come from the various retail outlets.
§ They supply commodities like Dal, Pulses, Food grains,
Cereals to Govt. Institutions, Hospitals for their
Canteens. A 30 Days credit is given to them.
§ They also earn income from the company racks that they display in their outlets. These racks contain the products of the particular company and the in turn pays Apna Bazar for displaying these racks. E.g. Maggie, Colgate, Pepsodent, Vicks, Nescafe etc.
§ They provide space to companies e.g. MEPL (Electronic goods) in order to display and sell their goods by charging rent for space provided.
§ They have 37 Franchise outlets, which act as a source of income for Apna Bazar as Apna Bazar supplies 70% of goods.
§ Provide place to banks for opening ATM center by charging rent since almost all the outlets are owned by Apna bazar.
§ MetLife India signed an agreement with Apna Bazar Co-operative for selling life insurance policies. Based on the agreement, Apna Bazar Co-operative shall become corporate agents for MetLife India and offer MetLife India products to its huge customer base. Henceforth Apna Bazar will enable its customers to build financial freedom through Metlife India products based on need analysis. Apna Bazar will receive a commission of 35% on Premium amount.
Exports
'Apna Bazar ' is a 55 year old co-operative organisation with
us ,$ 37 million annual turnover through 07 departmental
stores, 06 super markets & 65 retail outlets.
EXPORTERSOF:
FRESH & FROZEN SEAFOODS , FRESH WATER FISH .
Apna bazaar used to export commodities like fish and grapes to Europe . Inspite of good earnings on exports they have discontinued the exports from this year .This the reasons for the discontinuation was due to:
1) the goods were seasonal in nature .
2) in case of grapes the jalgoan region in which grapes where cultivated was hit by drought ,thereby by affecting the production of grapes.
3) Besides the grapes were sprayed with certain chemicals which were banned in the European countries,thereby further affecting the exports.
4) Besided exports is not Apna Bazar’s core activity therefore the decision to discontinue exports was taken.
TIE –UPS
Oil major Hindustan Petroleum Corporation Ltd (HPCL) and Apna Bazar Co-operative have entered into a tie-up.Its outlets is called APNA BAZAR –HPCL speed mart.By joining hands, Apna Bazar and HPCL aim to leverage their synergy for attracting consumers. HPCL would do it by offering more services at the petrol pumps, while Apna Bazar would gain access to the large base of customers visiting the gas stations of the oil giant .It has
three Outlets in Mumbai at
1.CHEMBUR 2.DADAR 3.NERUL
Franchise
Apna bazaar has 37 franchise stores sread acroos Mumbai and a few regions in the Konkan.In the franchise store the board of Apna Bazar is put up and 70% of it’s goods (foodgrains, pulses etc.) is supplied by Apna bazaar.Besides Apna Bazar send there employees to train the franchisee.
The criteria for becoming the franchisee of Apna Bazar is
1)The financial background of the individual
2)The area in which he is planning to open the store i.e. the location ,population,standard of living etc.
Sister concerns
Apna bazaar has various sister concerns. These are:
1) Apna Sahakari Bank
2) Mumbai Kamgar Sevak Sahakari Patpedi
3) Apna Bazar Adhikari Sahakari Patpedi
4) Ashok Mehta institute .
Financial Analysis
In the financial year 2003-04 Apna Bazar dept. stores, supermarkets and other outlets total retail sales was Rs. 99 Crores and 52lacs .It registered an increase of Rs. 1 crore and 56 lacs as compared to previous year.
TOTAL SALES
In the financial year 2003-04 the organization’s total sales amounted to Rs. 127 crores and 36 lacs. There has been a fall of Rs. 5 crores in the total sales compared to the previous years. This was due to loss making outlets were closed down.
Expenditure
Out of the total expenditure incurred by Apna Bazar Payment to staff constitutes to more than 40-45% in the financial year 2001-02, 2002-03, 2003-04.
Also Interest on deposits and borrowings were around 20-25%. Apna Bazar borrowed money in order to set it off against the losses. These lead to increasing interest burden and almost resulting into debt trap.
BUDGETED & ACTUAL
The budgeted sales of Apna Bazar for the year 03-04 were Rs, 14050(in lacs) where as the actual for the year 03-04 were Rs. 12736(in lacs). Also the Actual gross profits Rs.1215 (lacs) were less than the budgeted gross profit Rs.995(lacs).
The total budgeted expenses for the year 03-04 were Rs.1450 lacs were as the actual expenses were Rs 1331 (lacs).There is a favourable variance between budgeted exp. And actual exp. Also the Budgeted net profit was expected to be Rs. 15 (lacs) but had to face a loss of Rs. 120(lacs). For the future Apna Bazar has planned to make a net profit of 15 lacs for the year 2004-05.
MEASURES TAKEN TO ERIDICATE LOSSES
Since Apna Bazar has incurred losses of Rs. 150 lacs in the financial year 2003-04. To eradicate these losses they have taken the following steps.
§ They are trying to reduce the inventory turnover to two (2) days with the help of Radha Krishna Foodland. These would reduce the blockage of capital and interest on it.
§ The concept of Shopping on wheel has been drastically cut down due to government regulation of disallowing vehicles on road, which are 15 years old. Another reason is that Apna Bazar outlets are now available in almost all areas of Mumbai.
§ Apna Bazar has discontinued the outlets, which are making losses for many years. Outlet in Bandra was closed.
§ They are trimming the staff and there has been no new intake of staff as of date.
§ Training and Development of staff in order to improve their efficiency and productivity.
Future growth strategy
They are planning to have tie ups with amul ,parle etc. and start outlets at par with with new super markets .and open stores exceeding 50000+sq fts ,equipped with air conditioners ,trolleys etc there by making shopping a pleasurable experience .
Competitive Scenario
Only place where Apna Bazar scores over it’s competitors is that it has a very strong network.
But D-Mart and Giant Hypermarket provides the experience of shopping which apna Bazar does not provide.
It’s believes kirana wala is not a competitor for them as they sell products at mrp ,ensuring quality and quantity ,where as kirana wala
Pitfalls And Suggestions.
1. Ambience not satisfactory
2. Congested (lack of space)
3. Improper management of inventory.
4. No Window display
5. Lack of proper security measures.
6. Lack of parking space
7. Does not have trolleys
