opening a convenience store - retailing!!
TRANSCRIPT
FamilyMart
Prepared By:
• Krupesh Shah
• Sneha Lad
• Rohit Terse
• Renu Bajaj
Project: Opening a convenience store
Subject: Retailing
Faculty: Prof. Mohan Pitchumani
Introduction
• FamilyMart provides variety of goods under one roof.
• Located at Shreeji Heights, Plot no. 1, Sec 36 A,
Seawoods, Navi Mumbai.
• Single floor store of area of approximately 2000 sq.ft.
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FinancialsSTART UP REQUIREMENT
Rent & Related Expenses Rs. 50,000
Deposit Rs. 7,00,000
Furniture & Fixtures Rs. 10,00,000
Staff Expense Rs. 2,00,000
Stock / Inventory Rs. 25,00,000
Liquid Cash Rs. 1,00,000
(-)Reductions Rs. 50,000
Total Rs. 45,00,000
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Category Definition
• Dairy Products
• Dry and Canned Goods
• Drinks & Beverages
• Confectionary and Snacks
• Pulses and Food Grains
• Spices and Oils
• Toiletries and Other Personal Essentials
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• Milk (Amul, Mother dairy, Nestle, Britania)
• Butter (Britania, Amul, Nutrela, Nandini, Gowardhan)
• Cheese (Britania, Amul, Kraft, Gowardhan)
• Curd (Mother dairy, Danone, Amul, Britania)
Dairy Products
• Chocolates (KitKat, Munch, Cadbury, Snickers)
• Candies (Alpenliebe, Mango Bite, Big Bubble, Mentos)
• Biscuits (Parle G, Hide & Seek, Krack Jack, 20-20)
• Chips (Lays, Balaji, Kurkure, Bingo)
Confectionary & Snacks
• Coffee (Classic, Bru, Sunrise, Nescafe)
• Juices (Tropicana, Soya, Real, Danone)
• Dairy Drink (Amul Masti Buttermilk, Danone Lassi)
• Flavored Drink (Frooti, Real Fruit Pomegranate)
Drinks & Beverages
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Destination
Confectionary & Snacks
Routine
Dairy Products
Convenience
Drinks & Beverages
Category Role
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Dairy Products
Assortment Broad Variety
Pricing 15-400
Merchandizing Dedicated cooler
Promotion Highly Visible Display
SKUs Milk – Bag (0.5l, 1l), 1litre carton.
Butter – Carton (100g, 500g),
200g tub, Jar (200g, 500g etc.),
10packs 100g.
Cheese – Blocks (200g, 400g,
1kg ), Slices (10, 20, 35, 40, 50),
Cubes (8, 20).
Curd – 90g, 150g, 200g, 275g,
400g.
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Drinks & Beverages
Assortment Select variety
Pricing 15-600
Merchandizing Refrigerated cooler
Promotion Proximity of confectionary section
SKUs Coffee – Jar (100g, 250g), Pouch
(4.5g, 50g, 75g, 200g, 500g)
Juices – Packs (160ml, 200ml, 1l),
Bottles (200ml, 320ml, 500ml),
240ml can
Water – Bottle (200ml, 500ml, 1l,
5l)
Cold Drink – Can (250ml, 330ml),
bottle (500ml, 535ml, 600ml, 1l,
1.5l, 2.5l)
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Confectionary and Snacks
Assortment Broad Variety
Pricing 10-800
Merchandizing By the registers and exit. At eye level or lower
shelves
Promotion Checkout Counter. Easily visible sweets
SKUs Chocolates – 8g, 22g, 28g, 37g, 40g, 50g, 60g,
100g, 200g, 400g, 800g.
Candies – 5g, 10g, 20g, 30g, 6pcs, 24pcs,
150pcs, 176pcs, 300pcs
Biscuits – 60g,73g, 80g, 90g, 100g, 120g, 128g,
140g, 150g, 200g, 300g.
Chips – 26g, 45g, 50g, 60g, 90g, 100g, 150g,
180g, 200g.
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Stock Turnover (In %)
Items In Store In Warehouse
Dairy Products 80 20
Drinks & Beverages 60 40
Confectionary and Snacks 70 30
Profit Margin
Items Profit Margin
in %
Dairy Products 25 - 35
Drinks & Beverages 25 - 50
Confectionary & Snacks 16 – 25
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Quaterly Sales Forecast (in Rs.)Items Q 1 Q 2 Q 3 Q 4 Q5 Q6
Dairy Products 4,30,000 4,80,000 5,30,000 6,00,000 6,50,000 7,20,000
Drinks & Beverages 7,20,000 7,80,000 8,60,000 9,50,000 10,50,000 12,00,000
Confectionary &
Snacks
4,00,000 4,40,000 4,95,000 5,50,000 6,00,000 6,50,000
Others (Pulses &
Grains, Dry canned
goods, Oil & spices
etc)
36,00,000 39,00,000 43,00,000 48,00,000 50,00,000 55,00,000
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Category Assessment
• Dairy products and Drinks & Beverages generate the most amount of
business followed by confectionary and snacks.
• Confectionary and snacks are the fastest moving items.
• Candy, potato chips, and gum have the highest penetration and
frequency of purchase.
• Candy is the number 1 snack bought on impulse.
• Stocking confectionary and snacks in multiple locations throughout
the store will ensure higher sales
• Merchandise candy in the refrigerated coolers to generate additional
sales
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