subhiksha - retail industry
TRANSCRIPT
GROWTH
• Segmentation was done on the basis of geography initially
– Opened stores in South India initially , later expanded elsewhere
• Later on, was done on the basis of age groups
– Different product portfolios were targeted for different market segments
SEGMENTATION
GROWTH
• Expanding middle & upper classes has
played a big role in the expansion of existing
modern format stores & entry of new ones
• Attract not the top end customer but
the aam aadmi
• Target Market for different products:
– Grocery & Vegetables – Common man &
specifically Housewives
– Mobile – Youth
– Medicines – Old Age People
TARGET MARKET
• Low prices
• Consumer Savings
• Consumer Trust
• One Stop Shop
– Multiple products under one store
• Store designed with Indian touch
• Location Convenience
• Privilege to loyal customers
• Indian Management
GROWTHPOSITIONING
ADVERTISEMENTS
• TV Advertisements
• Price Challenge Campaign
• Hoardings
• Celebrities for promotion
• EDLP approach
• “Subhiksham” Card
PRICING• EDLP – Everyday Low
Pricing Approach
• Prices below the MRP
Product Subhiksh
a
MRP
Rice 5 kg Rs.102 Rs.119
Britannia
Marigold 400
gm
Rs.21 Rs.24
Sugar 1 kg Rs.15 Rs.17
• No Frills Store
• EDLP Strategy
• Off the main roads to take advantage of
low cost
• Catchment area of approx 2 kms
• Local low overhead front-end of Kirana
stores with efficient supply chain of a
large retailer
MATURITY
• Establish itself as a neighborhood store
• Everyday low price system
• Wanted to attain greater penetration in all
markets
• Lease rental system for stores
• Centralized purchasing
MATURITY
MATURITY
2
0
0
0
2
0
0
0
2
0
0
1
2
0
0
2
2
0
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3
2
0
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4
2
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8
50
Stores
Investor
23%
120
Stores
WIPRO
500
1600
People know
SUBHIKSHA know
People Know
SUBHIKSHA don’t Know
People don’t Know
SUBHIKSHA Know
People don’t Know
SUBHIKSHA don’t
Know
PROBLEMS
JOHARRY MODEL
DECLINE
Deep
research
Loyalty
reward
Mismatch
pricing
Window
experience
Confuse
moment1 minute
shopping