A Project Report On D-Mart Submitted

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 33

Project on D-Mart

PRATIBHA COLLEGE OF COMMERCE & COMPUTER STUDIES.

A PROJECT REPORT ON D-MART SUBMITTED

TO SAVITRIBAI PHULE PUNE UNIVERSITY

NAME : SIDDIQUI SHAHEEN

ADMINISTRATION YEAR 2021-2022

SY BBA IB

SEMESTER – III

UNDER GUIDANCE OF

PROF. SHAGUNTHALA

Pg no 1
Project on D-Mart

DECLARATION

I hereby declare that the project work of the D-MART is submitted to Savitribai Phule Pune
University for the partial fulfillment of the requirement of bachelors of business
administration course I also declare that the project of the original work is widely done by me
under the guidance of PROF. SHAGUNTHALA faculty member of PRATIBHA COLLEGE
OF COMMERCE & COMPUTER STUDIES. The information submitted here is true and
original to best of my knowledge the result embodied in this project has not been submitted to
any other university or institute for award and degree or diploma. All the information is for
academic purpose only.

SIGNATURE OF THE STUDENT

SIDDIQUI SHAHEEN

SY BBA IB

SEMESTER-III

Pg no 2
Project on D-Mart

Certificate of Project Work Completion

This is to certify that the project-Work titled D-MART has been completed satisfactorily in
partial fulfillment of B.B.A IB (Sem-3) course of Savitribai Phule Pune University for the
academic year 2021 by the following student of Pratibha College of Commerce & Computer
Studies, Pune 411004

Place: Pune

Date: / / 2021-2022

Project Guide. Program Coordinator (IB) Principal.

Mrs. Shagunthala Devi Mr. Hanumanta Koli Dr. Babasaheb Sangale

Pg no 3
Project on D-Mart

ACKNOWLEDGEMENT

I would like to express my sincere thanks to the Savitribai Phule Pune University and
Pratibha College of Commerce & Computer Studies for giving me the opportunity to prepare
and present this report. “There is a good saying that the work is successfully completed if the
person is guided properly at the right time by the right person”, with that the good
opportunities that we receive as well as the efficient supervision and the most valuable
internal guidance. Hereby I would like to express my deep gratitude to our Prof.
Shagunthala, Who in her busy schedule provided us with full support and encouragement and
direct or indirect support in completion of the project

SIDDIQUI SHAHEEN

SY BBA IB

Pg no 4
Project on D-Mart

Sr no Contents Page no

1. Introduction to D-Mart 6-7

2. Aims / Objectives 8

3. Role Of Competitors 9

4. Marketing 10-15

5. Inventory Management 16-17

6. Ware Housing 18-20

7. Logistics 21

8. Technology Used 22-23

9. Space Utilization of stores 24

10. Supply Chain Of Company 25

11. Customer Services and Satisfaction 26-27

12. Can D-Mart Improve? What changes should be made. 28-29

13. Conclusion Of the Project 30

. 14. References Used 31


Project on D-Mart

Name: Siddiqui Shaheen

Roll no: 7052

Class: SY BBA (IB)

Introduction
Pg no 5

� D-Mart was founded by Radhakishan Damani (“India’s Warren Buffett”) in 2002,


with its first branch in Powai's Hiranandani Gardens. Dmart has well-established
presence in 263 locations across Maharashtra, Gujarat, Karnataka, Telangana, Andhra
Pradesh, Chhattisgarh, Madhya Pradesh, NCR, Tamil Nadu, and Rajasthan. In
Beginning Mr Radhakishan Damani was an broker in stock market and later he
became a investor and he gained a lot of knowledge about companies while trading
that made his fundamentals very strong in business . In 1999 he bought a franchise of
Apna Bazaar but at that time he was not able to understand their business model and
was not convinced with it and later he went to USA where he visited Walmart he
found system and business model of walmart very interesting and was quite
impressed with it then he took time to understand the functioning of walmart then he
returned back to India in 2002 and started his own hyper market chain D-Mart from
2002 to 2010 DMART had established 25 stores and now in 2022 it has more than
200 stores D-Mart saw massive growth in these past 10 years . In 2017 D-Mart owner
Avenue Super marts announced Rs 1,870-cr IPO to be out on 8 march After the IPO
listing (as Avenue Super marts Ltd.), it made a record opening on the market on
the National Stock Exchange. After the close of the stock on 22 March 2017, its
market value rose to Rs 39,988 crore. This pegged it as the 65th most valuable Indian
firm, ahead of Britannia Industries, Marico and Bank of Baroda. [8]
� As of 21 November 2019, the market capitalization of DMart is close to 
Rs 114,000 Cr, making it the 33rd largest company listed on the Bombay Stock
Exchange the IPO hit so high that it gave back the premium of 114% till date Dmart
has valuation of more than 2 trillion company also along with dmart, Dmart Premia, D
Homes, Dutch Harbour etc are the brands owned by Dmart under ASL. In just 20
years it has dominated a massive market of retail sectors.
Project on D-Mart

� D-Mart is an Indian retail corporation that operates a chain of hypermarkets in India.


It is biggest retail chain operating in various states of India via presence of 263
stores in 72 cities spread across 11 states, this supermarket chain has managed to
become the 11th most valued Indian firm by market valuation, with the company's Pg no 6
market capitalisation standing at 1,58,902.37 Cr on the BSE and that's how D-mart
earned its name. Products offered by D-Mart are…

� Grocery, Staples, Fruits and vegetables

� Daily Essentials

� Dairy & Frozen

� Home appliances , accessories and furniture

� Bed & Bath

� Clothing

� Footwear

� Toys

� Crockery

� Luggage, Health and beauty

� Sporting goods and fitness


Project on D-Mart

Aims / Objectives
Pg no 7

1. To offer customers good products at great value.


2. To Fulfill daily needs of Indian families and make their consumers experience new
products every time we visit store they have something new as a taste changer
3. Generally when people shop from retail stores then they usually don’t find all
requirements at one place D-Mart tries to help their customers to find maximum
requirements at one place
4. They Offer discounts on daily basis to help people save money on regularly used
products
5. They also have launched their app that can help people in online buying and can get
delivery
6. Generally when people go for shopping they don’t have enough space / capacity to
carry all products so trolleys are given to every individual so that they can shop with
more ease and can spend more time in shopping and knowing about the products this
also helps people manage weight and carry al needed products easily .
7. As d-mart don’t have any sales person to serve their customers so self service is
encouraged this not only increases trust in customers but also saves cost of sales
persons which helps them to give discounts throughout the year this also helps
customer by increasing their knowledge about the products and buy accordingly
8. At normal retail shops proper and secure parking space is not available so the
customer has to shop in hurry but d-mart has secure parking which is totally free of
cost which helps customer to overcome hurry or tension of parking
Project on D-Mart

9. D-mart Stores have proper space utilization that ensures free movement for customers
and also as d-mart has good footfall area so customers can shop comfortably with
products in basket and their children this helps children know about the products
they’re using on daily basis and also helps parents to shop stress free.
10. As they have humongous footfall in their stores throughout the day they have a
separate counter also they have where customers can securely keep their sack, wallets,
and other items that could be robbed during shopping so they aim on security of their
customers. They also have CCTVs installed to increase the efficiency of security

Hence above mentioned are the objectives of D-mart

Role of Competitors
Top Competitors of D-Mart Pg no 8

● Mahindra Retail Private Limited ... 2,241. $448 Million.


● Hyper CITY Retail Ltd. -
● Zingy Homes. -
● Aditya Birla Retail Limited. 5,932. $300 Million.
● Big Bazaar.
● Trent Hypermarket Private Limited
● Home Accessories Decor.
● Kataak.com. 372. $74 Million.
● Shoppers Stop
Competition plays a major role in business as it affects every part of business may that be
marketing, sales, finance, distribution chain, logistics, warehousing and brand value of
company also it effects the footfall of in store and customer experience. Local retailers were
the major competitors of D-mart in the beginning later on due to various factors like unique
pricing strategy, marketing strategy, transport and product carrying capacity etc. When
D-mart wad established Big Bazaar was a challenge for d-mart but if we take a look on BB’s
operating style it was too expensive high valued furniture , ACs, and most importantly proper
utilization of space was not done due to high expenses and high cost maintenance of the
store the profits were very less / in negative here D-mart managed to tackle this problem and
made best utilization of space in their stores with lesser expenses and unnecessary expenses
were canceled the second they did was unique pricing strategy In this factor Big Bazaar
Failed very badly on one side BB was offering products at high cost and on other hand
D-mart was offering prices lower than MRP on daily required products and home accessories
Project on D-Mart

and the third and last stage where BB lost all of it was offers so basically due to higher
expenses and maintenance BB was able to offer discounts on only specials events like
republic day, Independence day, Diwali Season, etc Whereas on other hand due to low
operating cost and low maintenance expenses D-Mart was offering discounts throughout the
year and additional discounts during special occasions. So D-mart got chance to acquire the
market easily. In march 2017 share price of d-mart was Rs 616 and Share price of BB was
254 today’s current price of shares of D-mart is Rs 4160 and of BB it’s Rs47.

Marketing
D-Mart never focused on marketing itself aggressively it just focused on offering goods
products on great value so how D-Mart did its Marketing? Pg no 9

When D-Mart was established by Radha Kishan Damani he improved his relations
with the suppliers in market that gave him humongous benefits in running the store
What he did was Partner-with-Partner (to Improve relations with suppliers) the
major benefit he got was the margins that he has to give to the wholesalers and
distributors was cancelled as relations was very good with suppliers he got all the
required stuff from them the second benefit he got was Cash Discount cash discount
is something that we get when we make purchasing of goods in the bulk and pay the
supplier his complete amount that is payable in cash instead of checks or taking goods
on credits from the market and the third major Discount he got was
Volume - Discount volume discount can be given to the customer when he/she is
willing to purchase in heavy quantities as we know rate for 1kg rice is different and
rates for 10000 kg is different so suppliers had to give more discount on the purchase
as D-Mart was buying in heavy quantities and was ready to pay all the amount in cash
instead of taking it on credits from market the fourth and the best thing D-Mart did
was Slotting Fees so what happened when the stores were ready to operate and had
lots of footfall in the store on daily basis so suppliers of many companies approached
D-Mart to keep their products or sell them in the D-Mart when this happened D-mart
had a lots of substitutes / alternatives for same products If we take example of soaps
then D-Mart has a wide range of soaps they have lux, dettol, park avenue, Himalaya
etc but the shacks that were used to store and display the products were still limited to
Project on D-Mart

what D-Mart did was they started taking slotting fees from company to display their
products . The Most premium display unit of shack was 3-4-5 row that was directly at
the eye sight of consumers. According to Human psychology basically when the
consumer visits store they directly pick the products that are at the level of their eye
sight this boosts the sales of product of a particular brand than other substitutes so
companies are ready to pay slotting fees for more sales of their product in the
consumer market this did a major change in D-Mart and changed the complete game
as we know that the D-mart has very simple interiors but had made the excellent
space utilization so they were able to arrange layout that hold the capacity of
maximum storage units so what happened was now D-Mart was able to generate
income from every square feet of the area used so now when one more passive source
of income was generated D-Mart was able to give huge discounts on home
accessories , groceries and all other products and managed to sell good products at
great values as compared to other competitors of D-Mart .

Pg no 10

Here is the example of how D-Mart tackled the competition in markets as you can see
D-Mart has used UPSs (Unique Pricing Strategy) according to this strategy D-Mart
managed to sell products with price quite lesser than market selling price (MRP)
Also they give attractive offers of BUY 1 GET 1 FREE and instant cash discount
refer fig. as D-Mart managed to control the OP-EX i.e operating expenditure of the
store and also made lots of changes in interior that saved their expenses due to which
they developed the capacity to give daily discounts throughout the year unlike other
competitors in the market for ex: Big Bazaar , Reliance Stores etc as they have high
Project on D-Mart

OP-EX and other expenses they have the capacity to give offers and discounts only
on Special occasions like diwali, Dushera, Christmas, New Year etc So this is where
the complete game changed Due to heavy discounts offered by D-Mart on Daily Basis
to their customers on good quality products soon the D-Mart became the
TALK OF THE TOWN and became famous for regular discounts So D-Mart
Framed the tagline DAILY DISCOUNTS DAILY SAVINGS

Pg no 11

As we’re discussing marketing part of D-Mart let’s take a look at how Entry - Exit
points play role in it. As D-Mart is very bustling throughout the year it was expected
that it has at least 2-3 entry-exits points for shoppers .as it has thousands of customers
that visit store daily and shop a lots of stuff but still for shoppers D-Mart has single
entry and exit points reason behind this is that if limited entry-exit points are made
then due to so much crowd people don’t try to be stuck in entry – exit so they prefer
more to spend more time in shop instead of leaving to encourage this the entry point is
made in end of the shop so that customers unknowingly has the trip of complete shop
and can explore more new products that are displayed according to human psychology
when shoppers spend more time in shop new attractive products with huge discounts
Project on D-Mart

promotes impulsive buying in consumers so basically the shopper shops more and
more than he/she needs unknowingly, also counters with respect to daily footfall are
less so that they can engage customers completely on shopping they allow trolleys to
customers so that they can carry required products with them while shopping this is a
small change but still has great impact on customers wondering how ? let’s compare
now if you go to a local retail store then when you start shopping very first thing
you’ll notice is they never provide you baskets to carry products with you while
you’re shopping so this reduces sales instantly and demotes buying capacity of
consumers also this does not promote exploring new products also if you’d have
noticed they don’t have proper parking for space and due to this people leave in hurry
and what happens is due this reasons people can’t shop more as they cannot carry it
easily and secondly parking is not available so there is threat of vehicle getting
damaged by others so this demotes sales in local shops but unlike D-Mart d mart has
baskets and proper parking space so sales go up very easily. If you’d have noticed
they refill their inventory very fast this shows that they work with proper planning and
also this indicates that they have massive stock in ware house this means they need
large quantity daily because they sale such humongous quantity when a consumers
notices this the he/she believes that lots of people shop here because of good quality
and this not only increase trust but also make them loyal

Pg no 12
Project on D-Mart

How D-mart does promote impulsive buying just by displaying products?


Please refer picture above, it shows that D-mart places products with attractive
packing on front racks as shown above and as quality, texture, colour, size and design
plays major role in attracting customers or making them buy it so this is also a good
decision . According to human psychology if someone is watching or has a particular
object at eye sight for longer time then they start thinking of the same more intensely
so in D-mart all products are with attractive packaging and are arranged such that
people surrounded with them so buying intensifies.
For proof please refer image attached below.
Project on D-Mart

The picture above shows that how people keep on shopping even if the trolleys are
fully loaded this is due to attraction created by D-Mart in the eye sight of consumers.
In the walking area they generally arrange goods like fast food snacks etc and all
essentials are kept in end the master mind reason behind this is that when the
consumer enters mart they already know that they need time to shop they come with
their children so now parents know what groceries are essentials and even if they are
kept in a particular corner or in end they’ll still get it but now what about unnecessary
products like snacks, perfumes, extra home accessories and other stationeries so these
are arrange in direct eye contact of small children and then they force their parents to
get it for them and this is how D-mart boosts their sales of non-essentials and once
they buy then they get trapped into habit of buying these products every time they
visit the store so basically what happens is in order to get essentials from the shop the
unknowingly shop non essentials .

They have a separate sections for clothing in which trail rooms are setup so that both
men and women can shop so how does this play role in marketing? so when people
visit shop with their family the shop is usually crowded so one or two members of Pg no 14
them could shop groceries and the rest members can visit and try new clothes in trail
Project on D-Mart

room this makes shopping easy for mothers usually so when they are benefited they
become loyal customers and also recommend other people to shop from the same
place so ultimately shop is benefited. During the pandemic of covid D-Mart took a
good initiative of ordering online via their app and home delivery to support lots of
families.
Through the entire part of marketing Reference market has done it for D-Mart which
was done by their customers itself. So basically D-Mart did its marketing without
actually promoting / marketing itself in a way better than any other retail chain.
Hence D-Mart is the most preferred and loved retail store of Indian families

Inventory Management Pg no 15
Project on D-Mart

So in the complete store there are lots of CCTVs installed all around the shacks that can
cover almost 90% area of the store so they have their staff that keeps an eye on every shelf
and quantity of products kept on rack so when quantity seems to be decreasing they ask any
staff members to refill it again and soon as the shelf is no longer busy then they carry a
trolley in which all the products is kept in required quantity and then they refill it as soon as
possible. Now if you can see the worker is trying to refill the racks as soon as customers walk
away after getting required products. How is it Possible to refill it so quickly?

Here’s how they do it, the higher authorities of D-Mart not only observe the store via CCTVs
but they also keep walking through the store so that they can keep an eye on every activity so
along with them they have more staff members on round who note down the complete details
about the inventory they have a sheet that maintains the record about how much quantity is
refilled or is displayed in the rack and details of which products have high selling quantities

Now this decides which products / racks need refills repeatedly for example: a storage unit
consisting of loose rice, Wheat, peanuts, Sugar, etc are the products that are being purchased
on larger quantities by consumers and hence these products have high refill rates even
repeatedly in a single day or even in few hours so they need to refill it very quickly

When the store is very bustling then refills are done either when customers are shopping or
else they refill it when the displayed quantity is about to finish or is finished

Wondering Why? The reason behind this is that the store goes very busy once they start and
so they don’t want to interrupt their customers disturb them while shopping.

But this is not the end of the management they need more equipments to do it as the process
is too faster.

How do they manage to keep record of inventory?

Pg no 16
Project on D-Mart

This is managed by automation in the shop they use some softwares that keep record of the
inventories restored and the record of required quantities so by surveys they find out the
required quantities. Wondering how the software maintains record? Let’s discuss

D-Mart uses software of company Yash Systems India Pvt.Ltd and Retail Soft these are
the softwares used by D-Mart during billing of products now how does this softwares work?
So when we go for billing after shopping all the required products then during billing they
have the machine that scans the barcode on the product and when we scan the barcode the
machine inputs that code directly into the software so when this barcode is sent to software
then the software gets complete details of that product these details include category of the
product, quantity of product, information of offers applied on the product and finally the
company, name and price of the product accordingly . Now how does this software helps in
keeping record? Basically they use one more software that keeps data on how much stock
was newly added to the store and then they compare the data of the quantity imported with
the data that shows how much quantity is sold so now by using these softwares the quantity
required to be refilled in store needs to be planned properly and then by comparing data they
refill so quickly.

Ware House Management

Pg no 17
Project on D-Mart

D-Mart Ware House Isnapur

As shown above are the picture of ware houses of D-Mart from Isnapur

As discussed before the D-Mart has successfully managed to control the OP-EX and has did
same with the warehouses around 80% properties that are used by D-Mart in Business are
owned by themselves so they do not need to pay lots of rents and deposits and even they had
managed to get warehouses work in less expenses as the ware houses are quite simple
interiors that can store Humongous goods easily without any risks these are main ware houses
and also they have inbuilt warehouses in the store itself.

Pg no 18
Project on D-Mart

Why one more ware house in store itself? This was one of the best decisions made by the
authorities of the D-Mart to know the reason let’s first understand the working and operating
of these ware houses.

These images represent the humongous capacity of the primary warehouses of the d-mart as
you can see the storage unit can store lots of stuff in heavy quantities. so to save the cost of
logistics the D-mart has enormous storage units outside the towns as land outside is easily
available at cheaper prices so here they saved the cost of logistics and even of land if they’d
had build this storage unit in the city then it would have increased expenses so they have
primary ware house outside the city to store tons of goods now this goods are needed to get
into the store for sale but as we cannot transport all the goods at once as this is not possible
and will increase cost rapidly. So you must be wondering why not to carry only according to
requirements? If we do this then gain the transport will increase and costs will also increase
with it so what is the solution for this to tackle this challenge the D-Mart has utilized its space
very well and has setup small warehouses within the store now the question is how does it
make a change this small ware houses can definitely not store equal to primary storage units
but they have made it in a way that it can accumulate the maximum quantity of goods in it
Now what D-Mart does is they transport maximum goods from their main storage unit to the
ware house of the store when goods are transported in heavy quantities by same vehicles then
it saves cost and also in built storage units have capacity store goods so they don’t need to do
it again and again and hence transport cost is saved storage costs are saved operating costs
are saved and also inventories can be refilled easily. This is how D-Mart not only save their
own money but also saves their customers money. And the goods that cannot be stored for
longer time are kept in the storage units which are refrigerated if required.

Pg no 19
Project on D-Mart

As you can see there are lots of entry and exit points to ease of operating also they have
machineries to manage the load of goods if you could see the network red pipes it is installed
for security purposes which are extremely important.

Pg no 20
Project on D-Mart

Logistics

As shown above there are many sources or alternatives of transport now if you observe
D-Mart has a wide range of products in store so this is possible only when they have
enormous source of suppliers for those goods so D-Mart can use any mode of transport
according to the requirements the mode of transport is dependent on few factors like what
type of product is being transported, weight of product, quantity of products, minimum
delivery time they are asking for, design of product, location of import and export, type of
packing used on product like products having packing that is less resistant to water then ships
cannot be used if design is big and so are quantities then trucks cannot be used so mode of
transport is depended on various factors but the maximum modes of transport used by D-Mart
are Trains and trucks. Trucks are the most preferred mode of transport in cities for the
movement of goods from suppliers to warehouse and from warehouse to the store and maybe
sometimes for the delivery to customers. But if goods are heavier and in huge quantities then
it can be transported by trains for ex: rice, wheat, and other groceries if the product is bigger
in size and are being imported from outside the it can be done through the airways or seaways
whichever is suitable according to the product . So this is how D-Mart operates its logistics.

Pg no 21
Project on D-Mart

Technology Used
There are lots of technologies used in operating the store / company this technologies or
digitalization can be considered under Business Intelligence.

So let’s take a tour of store from entry point and analyses devices / systems used when we

enter the store they have


1. Hand Held Metal Detector (HHMD) is most common security gadget used for General
Frisking or Pilferage Check.
2. Door Frame Metal Detector this is a scanner which has share just like the door frame and
when a human passes through it then it can detect metal bomb and explosives. They do not
have lengthy security check process as the store is very busy and crowded throughout the day
these are some basic technologies used in security scan.
3. The third most common tech used for security is CCTVs generally they have camera
installed all over the store that covers more than 85% of the store they have staff that
continuously observe the consumers via CCTVs. Does this contribute in security? Yes last
month D-mart caught a group of 3 men cheating on them by taking extra groceries by
showing less quantity to save the cost all this was possible due to the CCTVs the staff of the
store observed them and were able to stop them.
4. Then if you enter the store they have limited used of tech they use very convenient way
for maintaining proper flow of air they don’t have High power ACs at every Corner so to
maintain proper air flow what they have done is they have used a single cooler or Ac and
connect it to a network of pipes those pipes have several openings that can distribute cool air
throughout the shop for more info please refer image below
Project on D-Mart

Pg no 22

These air vents supply air throughout the shop as it is not enough for the store they have
bigger fans attached to walls and columns of store to maintain air flow.

5. They have installed elevators so that customers can carrier their things easily from ground
floor to 1st floor and also to the parking to load it directly in the car.
6. They have a good network of simple lighting and a white interior to maintain freshness in
store.
7. They have basic range of electrical gadgets like Oven, aqua guards, fans etc
8. In the end near the counter they have counters with barcode scanner installed in it that are
connected to computers directly also they have machines for card payments those machines
are called Mswipe
9. They have chillers for Dairy products and ice-creams
10. There are in-built speakers and microphones in order to give instructions that could be
audible throughout the shop.

So if you would have observed then shop do not operate with high end technology so Opex is
controlled.
Project on D-Mart

Space Utilization of Stores

Pg no 23

As Shown above the D-Mart had used simple racks to arrange the products in quantity. If you
see the they generally have square shape or rectangular shaped area under use and due to
simple racks arranged more and more space is saved these racks are generally made of metal
and have capacity to hold lots of good in quantity but as you can see D-Mart has displayed
products in between the footfall area or walking area that too without making customers feel
uncomfortable to move around and carry their stuff and to save space they made no use of
racks to display these goods this saved area and cost with increase in income area per square
feet. Now if any product or object is consuming more space then it is supposed to add more
vale to store with respect to area consumed so D-mart has avoided unnecessary furniture
heavy shelves and others products that either sale slowly or has low margins as compared to
area need to keep the product. Now to make more use of space the store has managed o stick
hangers on its walls that can lightweight stuff like covers badminton etc D-mart generally has
2 floors 1st floor is for food products and 2nd floor is for clothes and footwear now customers
have option to go with elevators or with the steps so area the steps consumes is used to keep
simple products like t-shirts in short basket, football, other lightweight stuff etc. On the
second floor for products like t-shirts big baskets are used to stock more quantity for shirts
and pants racks are use for sandals big basket is used and for shoes racks are used. Now to
make more utilization of space more stuff is packed and arranged on top of the rack as shown
in image.
Project on D-Mart

Supply Chain of D-Mart


Pg no 24

D-Mart is one of the best examples of supply chain. Supply chain of D-mart is quiet simple
so let’s understand basic supply chain via a flow chart

supplier manufacturer distributor wholesalers Retailers customers

this is basic supply chain now local retailers get the products from wholesalers and
wholesalers get it from distributors or super stockers what d-mart did is they maintained their
relations with suppliers and manufacturers and get required stuff from them so middle
commission that is distributed with other wholesalers is saved and as they have warehouses
then transport or logistics costs are also controlled so basically we can consider D-Mart in
retail shop but as they have good relations, quick payment methods and good quantity of
order they firstly get massive discounts and as they get it directly from the suppliers and
manufacturers so middle commission is saved.
Project on D-Mart

Now instead of giving commission to marketers or investing in marketing D-Mart invests the
money in its customers by giving them huge discounts and saving their money so its chain is
very quick and short

supplier manufacturer D-Mart customers

Customer Services and Satisfaction Pg no 25

So when it comes to customer satisfaction then their good in the store actually if you notice
there is no need of service as customers get whatever they want by themselves from racks but
what happens is when customers get home and start analyzing the bills sometimes they
charge extra and customers has to pay it unknowingly this is kind a cheating with customers
if you check the reviews on goggle it is clearly mentioned in it about this matter by customers
and now the second major issue is that after analysis the customer realizes that instead of
saving cost they actually spent more money due to attraction of discounts and offers of
products so what happens is people do save money due to discounts but due to attraction they
keep buying lots of unnecessary stuff this is the point where they lose more money as
Project on D-Mart

compared to money saved and n the end no money is saved at all. Sometimes when customer
is done with billing they go for unloading the trolleys due to which other customer had to
wait for shopping. This is about their service they offer you offline / physically.

In online services i.e D-mart ready app they have failed to give deliveries

Following are reviews uploaded by customers in facebook and d-mart ready app for d-mart
service

1. Tenzin Ramjor   doesn't recommend DMart Ready.


3JSu5ne 525sifo,6 tge2021d3  · 
I have been a loyal customer of Dmart, but they try to cheat me thrice with product that was
not in my purchase list. They add extra bill in my cheque and on complain, they put the
blame on system- sir this is system glitch and we are sorry. First with 825 Rs, than with 443
Rs and today with 525 Rs.

This has always happened at Koperkeraine Navi Mumbai, Dmart store and supervisor Name
is SAGAR GOLE. He is also an accomplice in this scam and was very rude when I ask for
clarification.
Pg no 26
Please save face of Dmart
2. Manashi Chakraborty   doesn't recommend DMart Ready.
3MSa5rch5 3sifo16,t a250213  · 
I used to buy all my groceries from dmart. But what I have observed is unlike other grocery
apps which does not take any delivery charges after certain amount of shopping, the dmart
ready app delivery charges just keep on increasing with my bill. So I have stopped ordering
from d-mart .
I would request the authorities to look into this matter
3. Pavan Tukrrel   doesn't recommend DMart Ready.
S33epon1te0mboer1 25he,325 203h20  · 
very bad customer care. its been 3 weeks and I haven't received refund for my order which
didn't come only. its a shame.
4. Krishna Haridas   doesn't recommend DMart Ready.
 Frustrated staff of D-Mart Kalyan are not responding properly and specially harassing by
increasing the time of delivery for more than a week
5. Jayanta Bhowmick   doesn't recommend DMart Ready.
Deliver quality products, deliver on time, and deliver at home as per the address
given and not in society gates. Do not expect Senior citizens to carry groceries from society
gate to their home on their back. Have sensible rules.
6. “I went to d mart store to purchase our homely grocery. When I went to the billing
counter, the billing guy and the manager of the store spoke very rudely and
experience my worst customer service ever. Since there is no 0 star rating in your
review, I have to settle with one. Please teach this two people some decent manners"

7. "The Ladies are very rude. No customer service. No smiles. They make you feel as
though you are bothering them. Every time I visit I have a bad experience. I would
rather drive out of my way than to put up with attitudes."
Project on D-Mart

8. "This company is the worst. I ordered a product for next day air on Dec 22, and as of
Dec 28 still have not received it AND have not been able to get anyone to answer
their phone. Their voice mailbox is also full and has been the entire time. This
company is very disorganized and not at all focused on customer service. The fact that
they had the best prices made DMART2000.COM my choice for this product, but it
definitely is not worth this hassle and I will never do business with this company
again. I'd highly recommend anyone considering ordering from this company to
RECONSIDER."

According to the reviews D-Mart has failed to give services to their customers via
apps or online business customer services.

Can D-Mart Improve? What changes should be made.


Pg no 27
Let’s categorize these improvement /changes in two operating modes of business that are
online and offline modes of services.

Offline Improvement Cycle

1. Very firstly when we reach the store we need a trolley to carry all stuff but many
times we have to wait for trolleys as it’s already equipped by previous customers
so they should increase number of trolleys.
2. Many times during billing in the end there are few counters that are always closed
or not in service this makes customers wait longer. So they should make sure that
all counters are available for billing in regular working hours.
3. The staff is too busy so when we get most used grocery items like loose rice,
peanuts, sugar etc these products are packed on the spot in the bag after weighing
them but at time lots of people are shopping the same and counters are less again
customers have to wait and there is risk of bags getting slipped from the hand as
its too heavy to handle goods single handedly.
4. They have their own parking for cars and bikes but the area is not enough as
compared to footfall of shop so parking, unloading goods in cars or on bikes is
very irritating should optimize parking space.
5. As per the reviews mentioned up above it is seen that there are some irregularities
in transactions by either their staff or systems due to due to which they are
charging extra so I think they should improve their softwares and skills of their
staff.
6. Also it is seen that staff is not communicating politely with the customers and he
reason behind this is continuous work during festivals no weekly leaves and less
payment even they cut salaries according to mistakes of employees. So this is
making effect on customer service so this problems shall be solved immediately.
7. Many times this happens that the barcode of the product is no longer valid due to
some reasons which cause more delay and irritation to not only single customers
but also to the customers waiting in line for billing. So before getting stuff on
racks the barcode should be checked if valid or not.
Project on D-Mart

8. Digital trolleys it’s totally a new concept yes this may be cause an increase in
expense of the store but can reduce efforts of their employees and customers also
time can be saved let’s discuss on digital trolleys it is quite simple concept so
basically trolleys should have in-build barcode scanner because what happens
when people start shopping their mind tends to buy more stuff and this makes
them keep adding stuff to their list now they don’t have any idea about the amount
payable in the end so when they exceed budget they return extra stuff there time is
wasted of worker and customers both so if the scanner could scan barcodes and
display the amount payable on handles of trolleys with list then it will save a lots
of time and efforts and can definitely contribute I running store smoothly as time
of workers on counters as well as customers will be saved then irregularities in
transactions, pressure on workers, issues of waiting time, parking can be reduced a
lot. Should definitely work on this idea.

Online Improvement Cycle


1. One of the common issues faced by customers in online services is of delivery of
products ordered with respect to reviews they should spend a bit more amount in
Pg no 28
logistics as they are already saving costs in logistics so they should definitely invest in
transport for their customer satisfaction.
2. In lockdown period due to heavy load of work and no leaves workers were not able to
handle situations that efficiently should invest bit more in human resource.
3. Also it is seen that they are not responding quickly to customers this could be due to
in sufficient man power should solve this issue by hiring more and maintaining proper
schedules.
4. They keep charging their customers additional amounts for delivery as products
increases the amount increases for delivery but as compared to other services they
offer free delivery to their customers so this is where they need to work
5. Also according to review it is mentioned that senior citizens are being asked to collect
stuff from gate this is totally disappointing. Should hire more skilled and honest
workers.
6. Workers or staff are not taking follow-ups on time and communication is poor they
should probably improve quality of staff it’s not about saving money every time
somewhere D-Mart has failed in maintaining its services and relations with
customers.
7. It is also observed that they have not listed all products on the website and have
limited products listed this causes problems during choosing products should spend
more in sever and sites.
8. Proper training should be given to workers and communication skills.
9. So if observed D-Mart have saved lots of cost via different ways but no its time to
make lots of changes and upgrade digitalization and make use of drones to operate
delivery services with more ease.
10. If they are not able to list all products then they should build an AI that can suggest
and support customers while shopping and can also regulate follow-up for deliveries.
Project on D-Mart

Conclusion of the Project


Pg no 29
As per the data D-Mart is one of the largest retail chain of India and has a very unique way of
operating the business model also it has managed to save lots of money by various strategies
along with saving money they have managed to beat the competitors in market but however
in order to keep all expenses in control specially the expenses of interior and the amount they
pay to their employees as compared to the value employees add to the store is very less and
due this employees are not able to work efficiently and job satisfaction is very low this has
started showing effect on their business and customer services as discussed above. Also as
discussed above now it is time to increase digitalization in the store to reduce the pressure on
workers and also sometimes on customers. The Company has also managed to make best
utilization of space and generate revenue by making sales per square feet and slotting fees
which actually is very interesting concept of D-Mart. Due to this research I have experienced
and learned a lots of things needed to operate business like marketing, management style,
utilization space, Customer satisfaction, Management, Warehousing and logistics, Short
supply chain to increase profits, Also it has taught that how to generate demand of a product.
Project on D-Mart

References
Pg no 30

Complete data included in the project is considered after direct observation of the store.
And for reviews of customers websites used are
1. https://www.facebook.com/DMart-Ready-2004122439890624/reviews
2. https://www.resellerratings.com/store/Dmart_Stores_dmart2000

Sources of Images Used


1. https://thumbs.dreamstime.com/z/drivers-customer-satisfaction-143478636.jpg
2. https://media-exp1.licdn.com/dms/image/C5616AQFD8Uz0p5bIyQ/profile-
displaybackgroundimage-shrink_200_800/0/1619719830929?
e=1647475200&v=beta&t=qi1c2JNooduhMSVkQO7eZiHY4L4NPu8zv19xSc0BtSE
3. https://www.forbesindia.com/media/images/2017/Oct/img_100409_retailers.jpg
4. https://lh3.googleusercontent.com/
_8sMYNlHgbH_3cCANzhPEWCZ9PpBfw9SwxmnHxHGzSLk-
ChNuubXxilHtIFETwtx9wSGvcDHh187Q0BmtI5jJMO6DBU=w1000
5. https://www.ubuy.co.in/productimg/?
image=aHR0cHM6Ly9tLm1lZGlhLWFtYXpvbi5jb20vaW1hZ2VzL0kvODFZUWV
hRStsY0wuX0FDX1NMMTUwMF8uanBn.jpg
6. https://lh3.googleusercontent.com/
_8sMYNlHgbH_3cCANzhPEWCZ9PpBfw9SwxmnHxHGzSLk-
ChNuubXxilHtIFETwtx9wSGvcDHh187Q0BmtI5jJMO6DBU=w1000
7. https://thestrategystory.com/wp-content/uploads/2021/03/nrd-D6Tu_L3chLE-
unsplash-e1617196956649.jpg
8. https://i0.wp.com/futurebusinessplans.com/wp-content/uploads/2021/11/dmart.jpg?
fit=1200%2C628&ssl=1
9. http://lh3.googleusercontent.com/
OH8X_FjXWbooku0keJywWjjCNqNU67D7XNR1AnTfMFedoCPeUZbvSA4zZWn
ku77vKindDNuxOA8H6CYBDJ2h7FVy6l8=s750
Project on D-Mart

10. https://bsmedia.business-standard.com/_media/bs/img/article/2019-05/18/full/
1558199947-8948.jpg
11. https://indian-retailer.s3.ap-south-1.amazonaws.com/s3fs-public/article5927.jpg
12. https://i.ytimg.com/vi/9FEIdXYsLn4/maxresdefault.jpg
13. https://im.whatshot.in/img/2020/Apr/istock-1214541379-cropped-1586418746.jpg
14. https://media.gettyimages.com/photos/an-employee-arranges-bottles-of-soft-drinks-at-
a-dmart-supermarket-picture-id510935994?s=612x612
15. https://encrypted-tbn0.gstatic.com/images?
q=tbn:ANd9GcR4GqUZzIFJiMjc0pFzEy5qgI9bYDLVvncn9QKXr8m8NCzlRZBe

Pg no 31

Thank You
Hope you find my research informative and useful

Pg no 32

You might also like