India Bazaar Case Study

 Retail grocery industry possess many threats largely from its competitors, change in technology, trends and consumer preferences, bargaining power of buyers & suppliers, introduction of new substitute products etc. Some of the threats faced by India Bazaar are:

1) Online platform owners and big retailers: India Bazaar faces tough competition from big retailers like Walmart, Loblaw’s and local Indian grocery shops located in Surrey region. Although the development of online platforms for grocery sales provides an opportunity to retailers, it possesses a threat to traditional grocers like India Bazaar. These grocers face competition from traditional online stores like Amazon.com Inc. (AMZN), which are expanding their presence in the still-nascent

(COST), Walmart (WMT), and Target Corp. (TGT) have been increasing their food-related revenue. Food accounts for 56% of Walmart’s US revenue, 35% of Costco’s revenue, and 21% of Target’s revenue.
Though these retailers only have a small section of Indian and other International foods, these large retailers benefit from the economies of scale and can increase competition further by cutting prices. Their increasing presence might translate into a smaller share of the pie for Indian Bazaar.

3) Private label is gaining popularity:Sales of private-label groceries are projected to grow 62% to $133 billion in 2016, up from $83 billion in 2008, according to a Packaged Facts survey. The growth can primarily be attributed to the recession, since house brands are typically cheaper.
But private label isn 't just about price — it 's also about quality. "More than 90% of consumers believe private-label solutions offer the same or better value versus their national brand counterpart, and more than 80% believe the quality is the same or better," according to an IRI report. Hence Private label of retailers like Walmart and Loblaw’s can be a potential threat to India

Advertise: The first step to increasing grocery stores sales is getting consumers to come in. Major chains use regular, weekly advertising newspaper inserts that showcase specials. If India Bazaar can 't afford a multi-page insert each week, it can use display ads placed in sections of a newspaper that cater to its customer, such as the cooking section.Print coupons on high-sale items to get the biggest return on investment.
2. In-Store Coupons: Learning from large retail leaders in Canada like: Walmart, Loblaw’s, placing coupons on shelving in the aisles of your store to get consumers to notice particular foods they might not have come to buy is an effective way to increase sales. Put coupon sheets with multiple coupons at the front of the store near shopping carts to encourage customers to look for certain items.
3. Use Loss Leaders:Loss leaders are products that retailers sell at cost or less to bring customers in. If the price of milk spikes, sell it at your cost or a slight loss to get shoppers in who will fill their baskets with items that will more than make up for your loss. Use staples such as milk, bread and eggs as loss leaders on a regular, rotating basis to position your store as a bargain