The scope of this assignment is to acquire information and find out about macro environmental factors that influence in organization and sophisticated its Marketing Decision Making in previous a year and also for its Future Decision Making.
2. 0 Advantages OF NILGIRIS SUPERMARKET
I have chosen Nilgiris Supermarket, which is familiar retail shop in South India. The foundation of Nilgiris was started out on 1905 with a tiny wall socket at Bangalore. Predicated on different marketing strategies and quality of products given to customers made Nilgiris a successful Supermarket in South India. As a result they propagate their branches throughout South India to fulfill the needs of the client.
According to my views, the major advertising product in Nilgiris is fresh vegetables with hygienic and superior quality. To meet the needs of the client, Nilgiris Cultivate and harvest the fruit and vegetables in its firm.
It sells products by its own brand name 'Nilgiris 1905'. These fruit and vegetables are cultivated and harvested in hygienic environment. Corresponding to customers shopping experience, Fruit and vegetables from Nilgiris are given with freshness and superior quality at realistic price. General dealer ideal pattern is buying fruit and vegetables from farmers and gives it to the clients through stores and process distribution centre.
3. 0 MACRO ENVIRONMENTAL (Infestation) ANALYSIS
It consists of PESTEL evaluation that affects business predicated on several factors. I would like to sophisticated the factors impact in decision making of Nilgiris corporation on PEST examination. Generally the term Infestation means
P - Political factor entails the supervision activity by the federal government.
E - Financial involves economical position of group like income and development.
S - Social Cultural consists of income distribution
T - Technology requires innovation and campaign of products.
3. 1 POLITICAL ENVIRONMENT FACTOR
In Macro Environment factors, the first one is the political environment. Generally the Organization market reviews is produced predicated on political factors. It affects the federal government decision making and control the business laws for the general public serving companies.
The permit can be released by the government, if the firms are pursuing their rules and legislation up with their standards and satisfying needs and would like in different areas such as Medical, Restaurant and Super market.
I wish to illustrate a good example to show that how the politics environment factor influenced in the Nilgiris.
For example,
In South India, the Nilgiris shop was sealed for per month due to local farmers, investors and retail distributors created a problem that Nilgiris was selling its products right to the clients in a lower price, which influences their business. Because of this problem, Nilgiris modified their retail policy and stopped doing their business with the condition making sellers.
Because of this issue, there is an enormous demand of products on the market, so the government directly involved in this problem and put in place an function on the farmers and supermarket firm to keep up a good romance between them. The government formed the committee that group can have a primary contact with farmers by using them, and farmer who is not willing to join the organization can sell their cultivated fruit and vegetables under government firm called "ulavar santhai".
As due to this guideline, the supermarket has began their business with the government support and has regenerated the shops and began their trading vegetables with the farmers support. So, thus the customers purchase fresh vegetables from Nilgiris at realistic prices.
3. 2 ECONOMIC ENVIRONMENT FACTOR
The Economic environment factor denotes which involves in the income and monetary growth of the organization. This factor plays a vital role in the marketing environment when needs of the customers increases day by day, the worthiness of the product simultaneously increases day by day. In today's scenario the earth market is completely based up on the advertisements done by the organization to promote the merchandise.
For example,
According to my views, i'll illustrate an example to show that in today's life how the macro environment factor influences the economic world. Nowadays, the price tag on vegetables is too high as a result of intermediaries. So organizations like Nilgiris were listing low prices specifically on fruit and vegetables, because Nilgiris acquired a direct connection with the farmers and purchase the fruit and vegetables at cheap cost. Nowadays farmers are available vegetables without help of any realtors and they are employing farm-fork theory on exchanging of goods and services.
By this Farm-Fork theory, Nilgiris creating work chance to many farmers and affords information about cultivating fruit and vegetables without any type of pesticide.
3. 3 Cultural/CULTURAL ENVIRONMENT FACTOR
This factor will involve communal responsibility in the culture, where world must aware of the increase in the veggie price. It is the work and responsibility of the firm to be thinking about the concentrate of public responsibility. Every single business should take proper precautionary steps to lower the prices by giving employment opportunities and motivating them by giving proper remuneration rewards.
It isn't only task of the business to employee a farmer and get the benefit out of him. The business should also train the illiterate people about the value of agriculture and for upcoming younger decades.
Example:
I wish to illustrate an example that in South India, harvesting vegetables is very hard because of the inclement weather and natural disaster, the vegetation will be broken and farmer has to face reduction in their investment. Therefore the farmers cultivate vegetables according to seasons and maintain superior quality in fruit and vegetables and all are handpicked from mountains and retained in cool and hygienic places.
These are the following factors where in fact the organization consider for his or her employee
Nilgiris assisting students to educate from government college to corporation classes based on their performance in school, which help through lions team and education trust.
Nilgiris provides medical benefits and to the employee and to their family members
Farm to Folk hypothesis model
Farm to Folk hypothesis model means buying vegetables directly from farmer rather than passing through mediators. The agencies will get commission rate from both part and improve the price of fruit and vegetables. In order to avoid this farmer will need to have direct dealing to retail stores.
FARM - TO - FOLK MODEL
Mandi route
RETAILERS IDEAL
Farmer
Farmer
Store
Collection Centre
Aggregator
Agriculture market yard
Processing & Distribution Centre
Wholesaler
Semi Wholesaler
Consumer
Retailer
Consumer
3. 4 TECHNOLOGY ENVIRONMENT
Technology devices are mostly used in retail shop and are growing frequently. In today's modern economic world online shopping takes on an vital role. The technology makes human life simpler, smaller sized and luxuries. The technology contains more tools such as tractor, billing machine, recycling string are carried out in harvesting and cultivation.
I wish to illustrate a good example showing that how the Technology environment factor influenced in the Nilgiris.
For example,
They are utilizing electronic point deal tool on retail shop to accumulate data, stock handles, price variant and setup current trading affirmation.
They implement digital funds transfers tool used for money transferring from consumer to investor instead of paper works.
4. 0 FUTURE MARKETING DECISION OF NILGIRIS
Retail management is changing fast and environment is growing rapidly. The primary factor occurred credited to technology advancements, political issues, public and cultural strategies and economical factor.
The future decisions of Nilgiris are as follows:
In next 2 yrs, Nilgiris likely to open 45 retail outlets in South India and concentrating to attain revenue of 200 Cores by 2012.
They are preparing to involve thousands of farmers in agriculture for harvesting and cultivating vegetables for customer sales in the stores. Already Nilgiris placed hundreds of farmer in agriculture for cultivating fruit and vegetables.
Nilgiris likely to put into action online shopping which helps customer to purchase of vegetables from your home. Through this technology, marketing performance and strategies are increased with revenue.
5. 0 CONCLUSION
As mentioned previously Nilgiris is one of the South India's fastest growing retail supermarket, they started the company in a little retail outlet and broadened their branches throughout South India by fulfilling the needs of the customers as well as providing handful profit to the farmers.
It periodically displays the exact output of the macro environmental factors which really helps to improvise and create their firm all around the Southern part of India which becomes a path to the emerging stores for the immediate growth of economic development. It created recognition to the farmers to learn about farm to fork theory and avoided the mediators getting benefited. Nilgiris created a runway to the other rivals how to fulfill the needs of the client with good customer's satisfaction and providing a top quality of products at lower price by making a direct dealing with the farmers.
Nilgiris not only targets customer needs but also fulfill the needs of workplace by giving handful of benefits such as medical facilities to entire family, providing education for employer childrens by means of education trust. In the current competitive market, Nilgiris provides superior quality and stimulates the products by modern method of advertisement making Nilgiris to stand best on the list of competitors.
In future, Nilgiris has designed to raise the variety of customers by applying the e- shopping to improve their standard to the international market and make customer to feel free and comfortable because of their product purchase.
PART-B
MARKETING MIX
6. 0 OBJECTIVE
The scope of the project is to acquire information and learn about different factors of marketing combination and invent the new aspects that emerge the competitive merits of your chosen organization
7. 0 MARKETING MIX
It is a blend between various products that can determine the price, amount, quality and stability. It includes four marketing combination elements such as Campaign, Price, Product and Place. It seeks how to regulate the organization and exactly how to support the purchasers to supply for their goods or services.
Figure: Marketing Combine elements.
7. 1 PRODUCT
The first aspect in market blend is Product. The products are introduced on the market predicated on environment and demand. Before bringing out the new product in to the market, an effective market analysis will be identified to make huge revenue for the organization than compared with normal products on the market.
7. 1. 1 NILGIRIS PRODUCTS
Nilgiris have a wide range of products such as fresh fruits, vegetables, groceries, eatable items and dairy products etc. The primary goal of Nilgiris is to provide fresh and superior quality products to the customers and to wthhold the specifications in the competitive market.
Fruits and vegetables
Nilgiris deliver fresh fruits and fruit and vegetables to the client with superior quality and hygienic condition at good deal. The primary factor of Nilgiris is to make a direct offer with the farmer and acquire the fruits & vegetables at low price without real estate agents.
Groceries
Nilgiris has their own brand of groceries which is manufactured and stated in own company. The major space allocation in the retail store is done by the Nilgiris own brand products in comparison with other competitors on the market.
Food and Beverages
Nilgiris provides best quality of food product with good hygienic condition and properly conserved in the cool. It keeps the best benchmarks of foods with the expiry schedules.
Dairy Products
Nilgiris provides best value of dairy product with superior quality and properly conserved in the cooler. Nilgiris has its own dairy farm, so that it gives the best value of milk products to the customers compare to other products in the market. It sustains the best requirements of foods with the expiry times.
7. 1. 2 OWN BRAND NAME
Nilgiris has its own make of products which is circulating to all retail outlets in southern part of India. It provides products under the brand name of "Nilgiris 1905" which gives the brand image to market their own products and make familiar to the clients.
For example:
Nilgiris has its own brand identity using its brand called as "Nilgiris 1905" which involves their marketing methods to popularize their brand name. Nilgiris contains integrated brand way company purchase all products at low costs and sell to the customer at a lower price. Which increase their sales and advertising of the brand.
7. 2 PROMOTION
Promotion is considered to be the major key for marketing. It can help in improvising the partnership between customer and merchant for the purpose of client satisfaction as well as enhancing the marketplace strategy and advertising of the business through their products. The adverts play a significant role in advertising of the company and products.
7. 2. 1 COMMUNICATION MIX
Nilgiris spends 0. 4 to 0. 6 percentage of their earnings to promote their brand and products off their company. Marketing communication mixture is recognized as promotion mix of an organization. Pr, sales promotion, direct marketing, advertising and personal selling are believed to be the major terms of marketing communication mix. Nilgiris promotes their products using the above mentioned terms.
7. 2. 1. 1 ADVERTISING
Advertising helps the company to promote the products to all elements of South India. As a result of advertising it brings eagerness to the clients to buy the product. Nilgiris helps bring about their products by modern means of advertising such as Papers, Television, internet marketing.
Nilgiris introduced various discount strategies on weekends and festival times to attract the customers and also unveiled membership greeting card and gift idea vouchers to attain customer satisfaction.
7. 2. 1. 2 STORE PROMOTION
In Nilgiris shop provides various promotional offers to wthhold the new and existing customers giving them sample product, complementary and demo products making customer feel happy.
For example,
Dangler is a board used for indication of new products introduction which hangs through to roof. Shelf talkers are being used to display the product prices to market Nilgiris products. Leaflets require present and future offers and circulated to all or any people throughout the retail outlets. Audio tracks systems will talk to all shop going to consumers where they discuss the complete information of product advertising.
7. 2. 1. 3 PUBLIC RELATION
The Company must have a good relationship with consumer by fulfilling all customer needs and develop customer relationship daily. The promotion of product is vital, if product become familiar to customer, the sales of that product will be profitable. Therefore the company can provide offers and discount on that product.
7. 2. 1. 4 SALES PROMOTION
Sales promotion is targeted on consumers with free samples, scratch credit cards, exchange offers, coupons and discounts etc. This type of promotion can be used to attract the client to get their interest on products.
For example,
To attract the consumer, Nilgiris offers various sales advertising modes for last 12 months. You can find free examples which are being used to attain hobbies of customer and make product resource higher. Scratch credit cards are given to regular customer to encourage their shopping gladly. Exchange offers makes customer to switch their purchased products through which the customer can get their willing products and client satisfaction is necessary for company growth. The Discount rates and Coupons will attain the eye of customer on products and many products can be sold with income and campaign of product and company will develop rapidly.
7. 3 PLACE
Nilgiris has got vast areas on agriculture land about 2700-3950 rectangular legs to cultivate fruits & vegetables in great deal and harvested by Nilgiris farmers from the lands in good atmosphere. This sort of agriculture helps company in production of products in large and great deal of earnings is obtained by Nilgiris. The company builds up a warehouse to store large amount of production products and retrieve when product demand occurs. The warehouse is a store room used for distribution process within the company.
7. 3. 1 WAREHOUSE IN NILGIRIS
Generally warehouse is utilized as store house and the merchandise are distributed when demand of product occurs. The harvested products will gathered waiting for you house and used when required from storage space place. Nilgiris maintain stock management. Perishable products like milk, butter and ghee cannot be stored in warehouse.
7. 4 PRICE
Price is detailed on each product in Nilgiris by means of bar code and cash numbers. Price is determined by marketing management to sell the products. Marketing mixture elements includes cost of products. The rates are costed with tax. Nilgiris trade vegetables & fruits at lower price than market value. The company purchase products directly from farmer without any providers and sell product at lower price.
The price involves retail, seller, credit terms and special discounts which control market development. The organization will decide the price and discount given on products.
8. 0 COMPETITIVE ADVANTAGE
The company is focusing on achieving a stable position in rival market. If company grows up above income standard, a competitive benefits is accomplished than its competition. The company invokes competitive advantages on creation and supply of product at lower price in market. It includes two competitive edge are cost and differentiation edge.
8. 1 COST Benefit (COST LEADERSHIP)
It engages the lowest price position in business. Many small businesses use this cost leadership way for serving and reduce price in all sections.
