GIRISH FOOD STORE ( CASE PRESENTATION

GIRISH FOOD STORE ( CASE PRESENTATION

1. PRESENTED BY: AMIT KUMAR SHARDUL BHARDWAJ JYOTI PUNJ PRAKASH PRASHANT KUMAR SHARMA GIRISH FOOD STORE ( CASE PRESENTATION )

2. Girish Food Store Started by his grand father 50 year ago Girish was a third generation entrepreneur was facing changes in retail scenario Store was completing Golden Jubilee in 2005 Facing stiff competition from modern retail formats Girish wanted to open several stores in its Golden Jubilee year

3. Indian Grocery Industries One of the largest Industries Provided employment to 5% of India’s total workforce Retailers contributed roughly Rs . 3000 crore in Sales in 2005 10% of India’s GDP Changing Scenario of Retail

4. Different Format of Retailing Kiranas Upgraded Kiranas Super Market Hyper Market Wholesellers

5. Shopper’s Analysis 600 per day customer G enerates more than 575 bills 3 types of shoppers Fill in Routine Stockup

6. Q.1. Analyze the data provided in the case study and suggest category tactics based on the profitability of each sub-categories, GMROF and category share? According to table 7.9 CATEGORY: 1. GROCERY PRODUCTS 2. MERCHANDISE CATEGORY

7. Grocery products Total sales amount = 807071 COGS = 640911 Gross Margin = 166160 (weekly)   Safety stock = 42.94 units GMROF = GROSS MARGIN / SPACE PROVIDED = 166160/ 791.65 = Rs 209.89/ sqft

8. Merchandise category Total sales amount = 974468 Cogs = 832561 Gross margin = 141907 GMROF = 141907/ 843.62 = Rs.168.21/ sqft

9. CATEGORY SHARE WEEKLY UNIT SALES BASIS i . Grocery: 41.3% ii. Merchandise: 58.7% WEEKLY SALES AMOUNT BASIS i . Grocery: 45.3% ii.Merchandise : 54.70% SHELF SPACE BASIS i . Grocery: 48.41% ii. Merchandise: 51.59%

10. Q.2 Suggest an assortment based competitive strategy for Girish to meet the challenges posed by kirana stores and hypermarkets? Item sales performance is the most important factor. If an item succeeds to create a significant turnover during field tests it is automatically considered as a prospect to enter into the assortment. Incremental contribution of each SKU is tested through regular evaluations The decision to launch a private label is based on substitution analysis where the brand and private label is presented on the shelf next to each other. If the turnover of private label item reaches to 80 % of sales of the national brand then the national brand is replaced

11. Q.3. Analyse the performance of the promotional efforts of the store. Draw implication ans suggest measures to improve category and sub-category promotional performance The performance of promotional activity is good . Buying Characteristics Feature, No Display Display And Feature Coupons Low Promotion High Penetration - High Purchase Frequency High Medium Low Low High Penetration - High Purchase Frequency High Medium Medium High High Penetration - High Purchase Frequency Low Low Low High High Penetration - High Purchase Frequency Low Low Medium High

12. Q.4. Draw out a classification plan for the different categories and identify their roles based on the sales data and strength of the other formats.