5. To illustrate : Outlets in Chennai Source : KSA Database So many channels – in the city with the highest share of organized retail Shop Type Number Grocers 13691 General Stores 1911 Chemists / Druggists 2170 Pan/Beedi/Cigarette shops 7395 Hardware Stores 935 Co-op Departmental Stores 86 Private Departmental Stores 174 Others 5762 Total 32125
13. Experience in relevant markets justify the sentiment 10-12 years for organized retailing to achieve 20% share
14.
15. Rich (Above $ 4,500) Benefit Maximisers : Own Cars, PCs Consuming ( $900 - $4,500) Cost -benefit optimisers : Have bulk of branded consumer goods, 70% of two- wheelers, refrigerators, washing machine Climbers ( $500 - $900) Cash - constrained benefit seekers :Have at least one major durable (mixer, sewing machine / television) Aspirants ($350 - $500 ) New entrants into consumption : Have bicycles, radios, fans Destitutes ( Less than $400) Hand - to - mouth existence : Not buying Consumer Class Map
16. The very rich The consuming class The Climbers The aspirants The destitute 1995 -96 2001 - 02 2006 - 07 Income classes across India by size 1.2 (7) 32.5 (186) 44.0 (253.9) 54.1 (312.2) 33.0 (190.4) 2.6 (15) 46.4 (265) 74.4 (429) 33.1 (192) 24.1 (140) 5.2 (30) 75.5 (432) 81.7 (472) 20.2 (117) 16.5 (95) URBAN Million Households (Pop) 4.0 (23) 40.8 (230) 13.7 (77) 0.7 (4) 0.9 (5) 1.9 (11) 26.5 (150) 17.4 (98) 3.9 (22) 2.6 (16) 7.1 (40) 5.3 (30) 0.8 (5) 16.6 (93) 16.8 (94)
24. Operational Effectiveness Performing similar activities better than rivals. Strategic Positioning Performing different activities from rivals or performing activities in different ways . Operational Effectiveness is Not Strategy
25. Competitive Strategy is about being different . It means deliberately choosing a different set of activities to deliver a unique mix of value. The essence of strategy is in the activities – Choosing to perform activities differently or to perform different activities from rivals. Strategy Rests on Unique Activities