girish food store ( case presentation

PRESENTED BY:

AMIT KUMARSHARDUL BHARDWAJJYOTI PUNJ PRAKASH

PRASHANT KUMAR SHARMA

GIRISH FOOD STORE ( CASE PRESENTATION )

Girish Food Store0 Started by his grand father 50 year ago0Girish was a third generation entrepreneur0 was facing changes in retail scenario0 Store was completing Golden Jubilee in 20050 Facing stiff competition from modern retail formats0 Girish wanted to open several stores in its Golden

Jubilee year

Indian Grocery Industries

0 One of the largest Industries0 Provided employment to 5% of India’s total

workforce0 Retailers contributed roughly Rs. 3000 crore in Sales

in 20050 10% of India’s GDP0 Changing Scenario of Retail

Different Format of Retailing

0 Kiranas0 Upgraded Kiranas0 Super Market0 Hyper Market0 Wholesellers

Shopper’s Analysis

0 600 per day customer0 Generates more than 575 bills0 3 types of shoppers Fill in Routine Stockup

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

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

Merchandise category

Total sales amount = 974468Cogs = 832561Gross margin = 141907

0GMROF = 141907/ 843.62 = Rs.168.21/sqft

CATEGORY SHARE

0 WEEKLY UNIT SALES BASIS i. Grocery: 41.3% ii. Merchandise: 58.7%

0 WEEKLY SALES AMOUNT BASIS i. Grocery: 45.3% ii.Merchandise: 54.70%

0 SHELF SPACE BASIS i. Grocery: 48.41% ii. Merchandise: 51.59%

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

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

0 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.