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Case Study- Subhiksha
Group Members:Shivam Goyal
Vishrut SharmaRituparna Chakraborty
Kanika GandotraHimanshu Singh
Failed Venture
Subhiksha : Company Profile• Discount department storeType
• RetailIndustry
• R Subramaniam (IIM Ahmedabad)Founder
• March, 1997Date of Commencement
• Thiruvanmiyur, Chennai, India (1997)First store
• 1000 stores(de-functional)Number of Stores
• 25,000(NA)Employees
• www.subhiksha.in(de-functional)Website
• 2007Date of Shutdown
Subhiksha : About the Company
Subhiksha means "One that gives all good things in Life".
Chennai based supermarket and pharmacy retail chain
USP: Discount Strategies
Market Focus: Middle class income consumers
Subhiksha : Product Portfolio
Products
Super market
Fruits and Vegetable
Pharmacy
Telecom
Subhiksha : Growth Portfolio
• Entered Indian Retail Market
1997
• Opened First Store in Chennai
March 1997
• 10 Stores in Chennai
March 1998
• 50 stores in Chennai. ICICI joins venture.
June 2000
• 120-130 stores in Tamil Nadu
2002
• Retail Stores in Gujrat, Karnataka, Delhi, Mumbai, Andhra Pradesh
2004-05
• Subhiksha Mobile Shops
2006
Subhiksha : Suggestions
Measured Expansion
Employees Approach
Promoting Ethics
IPO Benefits
Attractive Visual Merchandising
Thoughtful Inventory Management
Subhiksha : Suggestions
Reasonable Profit Margins
Consolidated Expansion of Product Variety
Audit and Survey Teams
Promotion Strategies
Above the Line Promotion
Vendor Management
Strength• It is Indian retail chain with 1600 stores allover India• Skilled workforce that help customers in buying decisions• Prices are 8 % less than the MRP so its affordable for common man• Better ambience than typical retail store helps to gain customer time• Strong supply chain management
Weakness• Limited attractive promotional offers to attract customers• Decreasing footfall in stores is a concern• Less geographical reach restricted mostly in metro cities
Opportunity• Using ATL promotional offers could cater to mass consumers in minimum time• Leverage on brand name could help them expand in semi metro city• Positioning on quality and variety and not only on pricing
Threats• Consumers are getting highly brand cautious in various socio-economic classes• Brand image has been deteriorating and sales getting hampered too due to competition
• Give next purchase discounts
• Avg. Bill Size- Bundle the products
• Offline Competitions to promote by Mouth of Word
• Heavy sale day every fortnight
• Affiliate Marketing
How do you retain current customers, increase footfalls and the average bill size ?
Are our marketing, category management, and business planning activities heading in the right direction ?
• The growth is too rapid and this entire Debt financing model can lead to the failure of the business model.
• Category Management is good and product bundling can be done to promote home brands.
• Billing time should be reduced by upgrading the IT Solutions.
Are they scheduling and planning their staff in a right manner ?
They should decrease the employee attrition rate by :• Rewarding them by coupons and giving titles like “employee of the month” ,
Employees can be converted into customers.• Special discounts to employees on the items they purchase from the store
Thank You