Jaipuria Institute of

Management, Jaipur

Course: Retail Management

Term 6 (Batch: 2021-23)

Project Report on D-Mart

Submitted By: - GROUP 4

Roll No. Name

PGFC2106 Anoushka Agnihotri

PGFA2108 Ashish Kumar
PGFA2132 Princy Jain
PGFB2120 Khushi Agrawal
PGFB2136 Richa Sharma
PGSM2105 Diya Barjatya

Submitted to: - Dr. Tina Jain

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 TABLE OF CONTENT
S.No. Contents Page no.
1 Brief History and Competitive Analysis of D-Mart 3-9
2 Business model& Product Categories 9-10
3 Brand Offered & Customer Services 11,16
4 Promotional Strategies & Logistics 12-16
5 Revenue Model & User Interface 17-20
6 Future Aims & Visual Merchandising 21-22
7 Store Visit & Omni-Channel 23-24

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 D-MART

RADHAKISHAN DAMANI
Founder & Promoter of D-mart

Avenue Supermarkets Ltd. (ASL), which Mr. Radha-kisan Damani established, owns and
operates D-Mart. Mr. Radha-kisan Damani is well-known in the business world for being an
expert investor in the Indian stock market. He has developed a company that is dedicated to
creating a deep understanding of client needs and meeting them with the appropriate
products.

INTRODUCTION

D-Mart is an Indian retail company that owns and manages a chain of hypermarkets
nationwide. Radha-Kisan Damani founded it in 2002, with its first location in Powai's
Hiranandani Gardens. As of December 31, 2019, it had 196 stores in 72 cities across 11
Indian states, including Maharashtra, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh,
Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu, Karnataka, Uttar Pradesh,
Daman, and Punjab.

Avenue Supermarkets Ltd is D-Mart's promoter. Headquarters is in Mumbai D-Mart had

7,713 full-time employees and 33,597 part-time employees as of March 31, 2019. Avenue

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Supermarkets Ltd owns and operates the supermarket chain D-Mart outlets (ASL). Mumbai
is home to the company's headquarters.

D Mart, D Mart Minimax, D Mart Premia, D Homes, and Dutch Harbor are all owned by
ASL.

It made a record opening on the market on the National Stock Exchange after its IPO listing
(Avenue Supermarkets Ltd.). The stock's market value increased to Rs 39,988 crore after
closing on March 22, 2017. This put it ahead of Britannia Industries, Marico, and Bank of
Baroda as the 65th most valuable Indian company.

D-Mart is the 33rd largest company listed on the Bombay Stock Exchange, with a market
valuation of close to 114,000 crores as of November 21, 2019.

D-Mart is a one-stop supermarket that seeks to provide clients with a large choice of basic
household and personal products all in one place. Food, toiletries, beauty items, clothing,
kitchenware, bed and bath linen, home appliances, and more are all available at low pricing in
each D-Mart shop, which our customers love. Our primary goal is to provide excellent
products at a reasonable price to our consumers.

We think that comprehensive 'On the Job' training and professionalism at work are the keys
to achieving excellence in customer service. We promote simplicity and humility in our
employees and feel that the only way to advance is via integrity and merit. We hire people
who are unapologetically committed to our principles.

We at D-Mart believe in corporate social responsibility and have always been dedicated to
giving back to the areas where we do business. We are highly conscious of the necessity and
value of social stewardship while focusing on sustainable economic performance. To this
end, we want to improve the lives of the next generation - our country's children – by
working to improve the environment and facilities at public schools in a few Mumbai wards.

MISSION

At D-Mart, we research, identify, and make new items and categories available to meet the
demands of the Indian family daily. Our goal is to provide our customers with the best
possible value for their money so that every rupee they spend with us provides them with
more bang for their buck than they would receive elsewhere.

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LOCATION PLANNING

Damani founded the D-Mart grocery store business on May 15, 2002, using tactics that were
unique to Indian retail. Most retail chains rented their stores up until that point, but DMart
chose carefully to conduct its research and, for the most part, owned its stores.

In contrast to its colleagues and competitors, DMart has always kept to its stores and shunned
malls, which may have jeopardized the company's overall sales and increased spending.

D-Mart has yet to open a store in a mall and has no plans to do so in the future. While other
retailers experiment with a variety of formats and geographic locations, D-Mart stays true to
its roots. It employs one of two store models, the size of which is determined by location and
shopper density. In addition, the corporation is averse to expanding regionally. It only had
stores in four Indian states until 2014.

Until 2014, the company only had storefronts in four Indian states, which it only expanded to
eleven in recent years.

The firm is based on self-owned stores, which allows it to run with little or no debt, making it
financially stronger. Furthermore, the lack of a leasing expense contributes to strong positive
cash flows, which can be used to create more stores. Self-owned stores have their advantages,
despite their slow expansion and growth. To date, about 80% of all current stores are
independently owned.

Even if they do rent a structure, they do it for a lengthy time, usually 30 years or more.
Owned homes are a long-term investment that pays off consistently.

DMart stores are located in high-traffic areas and are divided into three groups:
Hypermarkets that span 30,000-35,000 square feet, Express stores that span 7,000-10,000
square feet, and Supercenters that span more than 1 lakh square feet.

DMart has a well-established presence in 263 sites across Maharashtra, Gujarat, Andhra
Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab,
and Rajasthan, having opened its first store in Powai in 2002.

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 COMPETITIVE ANALYSIS OF DMART:

1) STAR BAZAAR:

The supermarket-style store STAR Market is designed to be a one-stop shop for all of our
customers' monthly and top-up needs for food, fresh produce, FMCG products, personal care
items, and general merchandise.

The ease of ordering groceries online and having them delivered to their homes is now
available to consumers of STAR, who has taken over as the sourcing partner for StarQuik.

Two alternative formats of STAR shops are available:

STAR Hyper is a hypermarket-style store that offers a variety of products in food and
groceries, fresh produce, bakery, beauty, home needs, and other categories. Also, it sells a
variety of clothing and shoes under the "Zudio" brand.

2) RELIANCE MART:

With the debut of its first Reliance Fresh location in 2006, Reliance Retail officially
began its adventure. Currently, Reliance Retail runs more than 2,700 grocery stores
and sells daily around 200 metric tons of fruits and 300 metric tons of vegetables.

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We can meet all of your shopping needs, from fresh fruits and vegetables to dairy, cereals to
spices, processed food and beverages, to home and personal care items.

3) BLINKIT:

Albinder Dhindsa and Saurabh Kumar established Blinkit as Grofers in December 2013.
They paired together to enter the supermarket delivery market after getting to know one
another while working for Cambridge Systematics in the late 2000s. Their objective was to
find solutions to the issues caused by the industry's lack of organization (both on the client
and merchant ends). Before expanding to other Indian cities, the business ran a test run in
Delhi NCR. Groceries, fresh produce, meat, stationery, bakery goods, infant care, pet care,
snacks, flowers, and other items are the main things that Blinkit provides.

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 4) BIG BASKET:

Tata Group currently owns Big Basket, a sizable online supermarket with its headquarters in
Bangalore, India. Supermarket Food Supply Pvt. is its official business name.

In India, the business is active in more than 30 cities as of January 2023, processing about 15
million orders per month.

Big basket was the country's largest e-grocer and was now present in eight sizable Indian
cities. The firm's specialty was the delivery of fresh food, which was based on the morning
purchases of fruit and vegetables from neighborhood markets, storage in refrigerator
warehouses, and a fleet of temperature-controlled vehicles to bring fresh to the door.

5) AMAZON FRESH:

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Today, we're introducing the Amazon Fresh grocery store, a brand-new establishment built
from the ground up to provide customers with a seamless food shopping experience whether
they purchase in-person or online. With the help of our years of operational expertise, we
continually offer affordable rates to all customers and offer FREE same-day delivery to
Prime members.

Consumers who purchase Amazon Fresh can choose from a large selection of national brands
and premium fruit, meat, and seafood. Also, our culinary team provides a variety of
delectable prepared delicacies to clients every day that is produced fresh in-store.

Business Model

1) There is no any middle man. they directly distribute their products towards the customer.
which leads them to cost deduction.

2) They provide all necessary products.

3) They sale only FMCG goods...So basically, they provide only basic necessities products

4) They open their new store near by their existing store. ex - if you see that near store of
Haldi Ghati Marg-Jagatpura Road, Malviya Nagar (inox road)

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 Categories and Brand Offered

Brand Offered

User Interface Design

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Home page

This is the introductory page of the website, serving as a table of contents for the site.

Features Added

Redesign the home screen a bit to make it look good.

This solved the major problem which is slot availability. The option for customers to check
the availability of the slot is on the header of the website.

Deals of the day are shown under the banner which helps the customers to know about the
major offers and discounts before they dig into the website for buying something.

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A product listing page is a page on a website that presents a list of products based on a
category or search query.

Features Added

A section for the filter is added which was not there on the actual website. Filters help
customers to shop according to their needs.

Hovers are added to the product cards which makes the interface more interactive for the
customers. The option of infinite scrolling is added.

Out-of-stock products were greyed out on the actual website. A feature for notify me is added
so that the customers get notified via mail or text message on their cell phone, whenever the
product comes back in stock.

Product Overview Page

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A product overview page is a page that presents the description of a specific product. The
details displayed often include relevant information customers may want to know before
making a purchase.

Features Added

In the new design, the details are made visually clear compared to the old design. Price
details are rearranged to maintain visual clarity.

Added Frequently Bought Items section and Recently viewed items section so the user might be
interested in buying those. This section is also helpful from the business point of view.

Address Page

This page comes

under the Account page where customers can add and save addresses or adjust pin locations
where orders would be delivered.

Features Added

Maps are added to this page, which will help to pinpoint the exact location of the customer
which will help to deliver their order without any delay.

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Compared to the old screen where the user needs to fill out the complete form, we have made
it a bit easier by reducing the unnecessary content part of the form.

Cart Page

A Cart page is
an essential part of an e-commerce website. It is the page where users pile up what they want
to buy from the website and simply checkout.

Slot Selection Page

This is the last step in

the checkout process, here people can choose their preferred time slot to pick up the delivery
or get the products delivered.

Features Added

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Added feature for confirmation of address and to re-check whether the customer has selected
the right address for the slot.

Hovers are added to the slot cards which makes the interface more interactive for the
customers.

Sign in/Login Page

The sign-up or login page allows a user to gain access to their account on an application or a
website by entering their username and password.

Features Added

Added quick login methods which include Twitter, Google, and Facebook login for a faster
process.

Unlike older interfaces where signup takes customers to a new page disturbing the process of
shopping. This new feature takes you where you left off.

Source:- https://www.behance.net/gallery/116742219/Dmart-Ready-UX-Case-Study

Customer Services

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  Setting up an Image of a DISCOUNT STORE: - People are now more drawn to
bargain retailers. D-Mart is a retail establishment that offers discounted prices on its
goods.
 They offer discounts on all products used on a daily basis. Customers are drawn to
them naturally as a result of this.
 Offer value for the money
 Offers a variety of promotions, some of which are time-limited.
 Offer Big Discount Several times a year
 Upper and lower middle class clientele who are value aware are its target audience.

Communication/ Promotional Strategy

Promotional Strategy Used By D-mart –

Offers gift coupons to reward its employees and during certain periods to boost its sales

Coupons are allotted to customers when they meet certain standards of bulk purchase

DMART usually advertises in the major newspaper giving information about their latest
offers

There was one separate whole shelf for products that were offered at huge discounts

Discounts are offered during festive seasons

Example: 10% off on prices of Cadbury products during Raksha Bandhan D-Mart also
creates brand awareness and visibility through hoardings

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The biggest multi-brand retailer in India, D-Mart, has continued to portray itself as a store
with affordable goods.

To thank customers and employees and increase market sales, they provide a variety of
coupons. Customers are also given coupons when they achieve specific requirements for
large purchases.

For instance, they provide 15% off on sweets and different products during the festive
seasons. Additionally, it provides goods with a 50% discount or a one-plus-one offer.

However, the corporation chooses to market itself through newspaper advertisements and
outdoor advertisements rather than engaging in overt marketing promotion. Additionally, it
has partnered with HDFC Bank and provided further savings for payments made using
HDFC Cards.

Logistics
The sales channel is nearly entirely direct at this point, so D-Mart doesn't need many
warehouses. Inventory is at its stores, where customers can pick it up, and inventory turnover
is optimal, which lowers storage costs. D-Mart has 110 stores dispersed across Indian cities.
D-Mart has cut out the middlemen with its direct bulk purchases, and the savings are passed
along to customers as discounts. Well, if you believe that every item at D-Mart is
inexpensive, you are mistaken.

To sell its high-profit products including toys, fruits and vegetables, grocery and staples,
crockery, and plastic containers, FMCG products are employed as an anchor. Additionally,
D-mart sells high-margin products under its brand in the grocery, home, and personal care
sections.

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Wholesalers recently protested against shops choosing D-mart items. To deter sellers and
guarantee that only end users buy their products, D-Mart has now implemented maximum
purchase quantity limitations at its storefronts.

Source: - https://www.academia.edu/38913240/SUPPLY_CHAIN_IN_D_MART

Revenue Model

Staples are included in the foods category, which generates 53% of D-Mart’s income. D-
Mart's groceries, fresh produce, and fruits, processed foods and snacks, dairy and frozen
foods, beverages, and sweets. Fast-moving consumer products other than food make up 21%
of its income, with the remaining coming from general merchandise and clothes.

 Slotting fees- Manufacturers pay D-Mart this sum in exchange for the retailer having
their goods available for purchase on its shelves. With its large consumer base, D-
Mart is a desirable location for manufacturers to store their goods. The manufacturers
are charged a slotting fee, which indirectly lowers the cost of the goods they sell to D-
Mart and lowers their purchase price. This draws more customers in.

 Reduced Expenses- With its low-cost interior idea, D-mart aims to lower the
company's operating expenses. The primary strategic component of this low-cost
operation is efficient space use, which is achieved by packing more products into a
given amount of space. In addition, fewer billing counters demand fewer workers,
which lowers resource costs. A simple, low-maintenance store design is also a benefit
of the low cost of operation

 Volume Sales- D-Mart is frequently portrayed as a cheap retailer. Cheap prices draw a
lot of customers, which increases the sales margin and entices additional
manufacturers to offer their goods in D-Mart. This is a perpetual loop that D-Mart
produced. Also, this tempts producers to provide volume discounts, lowering the cost
of purchase. This is how D-low-cost Mart's classified business model is successful.

 Self-owned store- D-mart is a business with little to no debt that has a solid financial
foundation. A large portion of this is owned by its independently owned stores, which
reduce rental costs and guarantee positive cash flow, which is then used to create
more stores. Self-owned stores may expand slowly, but there are benefits to this as
well. Almost 75% of D-mart locations are independently operated.

 Utilizing Consumer Behavioral Patterns- Customers are enticed to purchase more

items at reduced prices by the vast selection of low-cost prices. These consumer
behavior patterns have been repeatedly demonstrated during the "Annual Sales

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 Season." D-Mart uses this purchasing behavior to its advantage until it gets ingrained
in customers' way of life.

Source- https://www.openpr.com/news/2330551/what-is-the-business-model-of-dmart-in-
india

FUTURE AIMS OF DMART

D-owner, Mart's Avenue Supermarts, wants to open 30 stores annually, up from an average
of 20 over the previous two fiscal years, and not all of them will be owned by Avenue
Supermarts.

The most valuable retailer in India is deciding to deviate from its tried-and-true operating
procedures to develop.

Owner of D-Mart Avenue Supermarts Ltd. plans to increase annual store openings from an
average of 20 to 30 to increase profits and revenues. In exchange for this, it is ready to give
up some of the cornerstone principles of its operation, like owning its stores and
concentrating solely on brick and mortar.

The purpose behind DMart's Successful Retail Journey is The objectives and goals of
DMart's Successful Retail Journey are described in A Lesson for Indian Retailers, a public
publication. Retailers in India Should Learn This. A description of DMart's Successful Retail
Journey's mission A Lesson for Indian Retailers also outlines the organization's goals while
showcasing the services and goods it provides. Also, the organization's operational objectives
for DMart's Successful Retail Journey are defined in the mission statement. A Lesson for
Indian Retailers, the methods the business employs to accomplish those goals, the target
clientele, and the area in which the business is based.

Aiming to provide customers with a broad selection of essential personal and home goods
under one roof, DMart is a one-stop supermarket business. Every DMart location carries
household necessities, such as food, clothing, cosmetics, home appliances, kitchenware, bed
and bath linens, and more, all at reasonable prices that our customers value. Our main goal is
to provide clients with high-quality products at a low price.

Mr. Radhakrishna Damani and his family founded DMart to meet the expanding demands of
the Indian family. After opening its initial location in Powai in 2002, DMart has grown to be
well-known at 306 locations throughout the Indian states of Maharashtra, Gujarat, Andhra
Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab,
and Rajasthan. Our goal to Our business is expanding, and we have new locations planned in
more cities, as part of our objective to be the most affordable store in the areas where we
operate.

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Avenue Supermarts Ltd. is the owner and operator of the DMart supermarket chain (ASL).
The business's main office is in Mumbai.

Visual Merchandising

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SUGGESTIONS

The operational floor is mainly utilized for storage. D-mart should build better storage
shelves in the basement area, where the back office is situated.

Adequate and spacious trial rooms should be provided to avoid rush during peak hours and
holidays. Products should be kept on shelves, instead of products lying on the floor. Adequate
shelves should be made instead of using the cartons of boxes doubling up as a shelf.

The products were not properly kept on the shelves, and every shelf had certainly damaged
goods, so regular Monitoring is necessary.

LAYOUT

All FMCG products which are used daily are kept on the ground floor. The Vegetables and
Medicines counter is also situated on the ground floor. The first floor is mainly for
apparel/Garments. Men, women, and kid's wear are available on this floor

The second-floor stores all the home appliances, utensils, sports equipment, gift articles, etc.
Each section has one attendant on average. The Toor cleaning activity is outsourced.

MERCHANDISE

The product mix is good & a lot of variety is available. The assortments for apparel are done
as per the price and size. The D-Mart offer price and the Max. Retail Prices both were visible
on the price card During the festival season, the festival items are kept in the main area.

A wide variety of festivals and decorative items for the Ganpati and Navratri festivals are
kept along the main passage. The whole area was divided into products that they are like
apparel, stationeries, crockery, sanitary Ems, gift articles, steel items, detergents, vegetables,
fruits, etc.

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PRICING

The prices offered are economical in D-mart. EDLP (Everyday low pricing) pricing strategy
is followed. D-Mart offers a minimum 2% to 10% discount on MRP and a straight 5% on
medical products, except grocery, vegetables, and fruit items. (Bundled price) Two or more
products were packed and were available at a discounted price. E.g., Santoor soap bundled
along with a Wipro CFL bulb.

Multiple unit pricing: This strategy was followed for stimulating sales.

E.g., Soap bars bundled together

STORE VISIT

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As our group visited DMART for a shop project, we chatted with Mr. Ravi Kant, the sales
manager. He mentioned several positive aspects of the business, such as the year the shop
was founded—2017—and its weekly sales of $50 to $60 lakh as well as its weekend sales of
$5 to $6 crore. In addition, he added that the shop specializes mostly in groceries and that
they own 95% of the property and rent the remaining 5%.

OMNI-CHANNEL OF DMART
Due to a very distinct business approach, they've adopted over the years, DMart's retail store
operation is regarded as one of the most successful supermarket chain models. Their
company slogan, "Everyday Low Cost/Everyday Low Price" (EDLC/EDLP), says it all.
Before we get started with the business, let's quickly address some inquiries concerning D
Mart.

B2B and B2C retail are two industries that frequently adopt omnichannel strategies, but other
industries like healthcare also use them. To contact healthcare professionals, MedTech
businesses, for instance, use a range of channels, such as inside sales, portal, and e-
commerce, as well as hybrid sales-rep interactions.

Numerous omnichannel examples might show different methods:

Normally, Best Buy concentrates on business (both in-store and online), but it improved its
in-store experience by developing options for customers to explore smart home technology
solutions and connecting them with complimentary in-home advising services. Also,
customers may use its smartphone app to "scan to shop" from catalogs, pick up items at the
curb, or order online and pick them up in the physical store, making the entire process easier
for them thanks to the Geek Squad's round-the-clock technical help. Customers found Best
Buy's Totaltech support package to be attractive; it began with 200,000 subscriptions in 2018
and increased to two million in just a year.

Sephora, a retailer of cosmetics, places a strong emphasis on omnichannel customization. To

do this, it uses rich in-app messaging, customized push alerts, and simple methods for
customers to schedule in-person consultations. With the use of its in-store technology, staff
members can access consumer preferences and recommend things for them to try next. A
significant impact is also played by its loyalty program. The work is already paying off for
Sephora: research revealed that visitors to the retail website within 24 hours of visiting a shop

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were 13 percent more likely to place an order and were three times as likely to make a
purchase.

Nike approaches omnichannel from an ecosystem perspective, extending the customer's

brand experience by providing a platform with an expanding selection of content, deals, and
community interactions. For instance, it facilitates in-person meets, running clubs, and events
through its SNKRS and Run Club apps.

To reach clients in their daily routines, it now offers an app for delivering
personalized exercises and fitness regimens, going far beyond shoe and apparel lines.

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