Bharti- Walmart opened its 1st modern wholesale business store in

Amritsar

WHY?

Submitted by:Manik Manchanda

FT 08 676

GEOGRAPHIC & ECONOMIC INFORMATION

• Started its operations on 30Started its operations on 30thth May May 2009.2009.

• Location: 7 km from Amritsar city, Location: 7 km from Amritsar city, national highway 1.national highway 1.

• Area:3.5 acres.Area:3.5 acres.• Surroundings : Agricultural land and Surroundings : Agricultural land and

small villages.small villages.• Initial investment:7 million dollar.Initial investment:7 million dollar.

Employee strength

• 160 employees• 40 promoters• 40 security guards

WELL MAINTAINED PARKING SPACE

Billboards/advertisements on all walls of business premises

MAIN ENTERANCE

• Independence day decoration.

• Checking of membership cards.

DISPLAYS AT ENTRANCE OF PREMISES

Best offers board.

Daily prices board.

•

WHO CAN BE A MEMBER?WHO CAN BE A MEMBER? Businessmen which include:Businessmen which include:

– Retailers– Wholesalers– Manufacturers– Traders– Self employed professionals– Carters

• These all must have proper business license or vat/tot number, with past 2 months sales report.

• AGE:18 years and above.• All the members will be given a card , which they have to

show at the time of entrance in the premises.• One businessman will be given two more additional cards

for other members of his family.• Membership Cards are made free of cost.

MEMBERS

• 1st member was made on 19Nov2008 i.e. 6 months in advance .

• Door to door membership strategy was followed.• Had a small office in Amritsar city for any query

and clarification prior to opening of store.• They had 40000 members before opening of the

‘best price’ outlet.• Now company has more than 90000 members till

now & numbers are still increasing everyday.

THE BENEFITS OF BECOMING A THE BENEFITS OF BECOMING A MEMBERMEMBER

• Low and transparent prices.• All items under one roof.• New and excitement items.• Relevant items for your business.• Fresh and hygienic food items.

Targeted customers

• Retailers• Wholesalers• Institutional customers

Retail buyers are not encouraged by the bharti- Wal-Mart BEST PRICE modern wholesale, but this segment is also giving a significant business to company.

Major clients

• Border security force• Army• Air force• Medium and small retailers• It has tie-ups with 30,000 retailers and 8,000

suppliers across the country.

INSIDE VIEW OF THE MART INSIDE VIEW OF THE MART

• INSIDE VIEW OF THE MART INSIDE VIEW OF THE MART

PRODUCTS

• Multi brand and multi category store with Multi brand and multi category store with 70007000 different items different items..

• Major categoriesMajor categories– FMCGFMCG– Consumer durablesConsumer durables– Dairy productsDairy products– Frozen Meat and chickenFrozen Meat and chicken– Fruits and vegetablesFruits and vegetables– Tobacco Tobacco – Stationary Stationary

• All products are from All products are from IndianIndian companies only. companies only.

Special Independence day offersSpecial Independence day offers.

WHY AMRITSAR?

• “The first Best Price store has been opened in Amritsar because this city has a large wholesale market and is a feeder market for small business.

• Company want to start from north corner of India and Amritsar is the best option for that.

• All retail chains start from south, so they(Bharti-Walmart) decided totally opposite, as to start their wholesale chain from north, to create a bench mark.

Why Amritsar contd..• There are many small towns near Amritsar so

the company want to target these places.• There is huge mismatch between the prices

charged from different retailers and wholesalers in Amritsar.

• There is huge business opportunity in Amritsar and border cities.

• From Amritsar they are also feeding Jammu and Kashmir.

Further expansion plans

• The first phase of expansion will take place in the northern region.

• After Punjab, other stores will be opened in Haryana, Delhi, Uttar Pradesh and Madhya Pradesh.

• The real estate for these stores is a mixture of lease and owned property.

• They are planning to open 15 new stores in 6 to 7 year period in India.

General information• There is a minimum fixed quantity for some of

the product categories.• No maximum limit.• Same and fair price for small and big retailers or

wholesalers.• The customers who purchase in bulk have some

negotiation power In some product category.• The security system is very good.• Cashiers are provided with buzzers/alarms, if

any problem occurs they press it .

Information cont..

• No NRI customer is entertained individually.

• It takes long time for billing and delivery.

• The major strategic and operational decisions are taken by Wal-Mart .

• Photography is prohibited inside the premises.

• All the transactions are made in cash only.

CUSTOMERS

• Retail customer

Institutional customer

Thanks for your precious time.

Thanks for your precious time.