Case study 1 SERVICE MANAGEMENT

Presented By: Metilda Thomas 61 Rachel Rego 90 Gunjan Singhvi 98 Ashwini Sonawane 100 Anitha Menon 105 Chetna Warke 114 Ninad Satpude 95

STORY
Pantaloon Retail (India) Limited is Indias largest leading retailers. Company headquarters located in Mumbai. It operates on multiple platforms like Value and life style segment in the Indian consumers market. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. Companys retailing includes retail formats like Pantaloons, Big bazzer, Food bazzar, brand factory, Blue sky, and Top 10, Star & sitar and e zone.

STRATEGIES BY
Diversification strategy

Maximum market shares strategy Different pricing strategies

DIVERSIFICATION STRATEGY
By creating a retail business from the ground-up and expanding rapidly, Pantaloon has followed a Wal-Mart-like pattern of growth. However, unlike Wal-Mart, it decided to experiment with as many retail formats, product-mixes and brands as was possible in order to gain maximum knowledge about the uncertain Indian mindset. The company started its business as textile manufactures but growth in modern organized retailing attracted the company to switch diversify to the next consumption pattern. The Retail Experiment Multiple Formats, Multiple Brands

MAXIMUM MARKET SHARES STRATEGY

The retail chain by pantaloon in all business patterns tries to achieve maximum market share in all the products or service it provides.

PRICING STRATEGIES
Pricing is strategy used by Pantaloon retail chain to attain maximum market shares. The company offers numerous schemes to attract the new customer as well as to retain the present customers. The companys schemes are categorized in following groups: 1. Value pricing 2. Promotional pricing 3. Bundling 4. Low interest rate financing 5. Physiological discounting

STORY
FoodWorld was division of Spencers, the retailing company under RPG Enterprises.
RPG decided to call the supermarket chain FoodWorld for the two reasons- firstly, the name clearly signified the range of products the stores would stock and secondly, it could be easily translated into most of the Indian languages.

STRATEGIES BY
To offer the Indian housewife the freedom to choose from a wide range of products at a convenient location in a clean, bright, and functional ambience without a price penalty

STORY
Shoppers Stop Ltd is a chain of retail stores in India owned by K.Rajeha Corp. The Company houses a host of many international and domestic brands across various categories such as apparel, accessories, cosmetics, home and kitchenware as its own private brand

STRATEGIES BY
SOCIO-CULTURAL ENVIRONMENT
TECHNOLOGICAL ENVIRONMENT ECONOMIC ENVIRONMENT

SOCIO-CULTURAL ENVIRONMENT
Changed from being a chain of retail stores to emerging as a fashion & lifestyle destination for the growing affluent middle class of India. Has identified and decided to invest in next generation data warehousing and business intelligence solutions.

TECHNOLOGICAL ENVIRONMENT
Focused on leveraging investment and upgrading and revamping existing technology. Deploying Warehouse Automation application along with the multi-purpose handheld devices to enhance efficiency in supply chain. Microsoft Technologies for reliable communication platform. Setting up a Disaster Recovery Plan for critical application systems.

ECONOMIC ENVIRONMENT
Growth in the economy and hike in the salaries, consumption of goods increases. Increase in the consumer spending habit increases the number of consumers visiting the stores. Increase in the profit margins of the stores.

MARKETING STRATEGIES
Shoppers Stop basically follows 2 marketing strategies: 1. Guerrilla marketing 2. Interactive marketing

GUERRILLA MARKETING
It is an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Tactics are unexpected and unconventional; consumers are targeted in unexpected places, which can make the idea thats being marketed memorable, generate buzz, and even spread virally. It involves unusual approaches such as intercept encounters in public places, street giveaways of products, pr stunts, any unconventional marketing intended to get maximum results from minimal resources.

INTERACTIVE MARKETING
It is a strategies adopted by then retailers where they allow customers to customize the product as per their preference.

PRICING
Shoppers Stop follows Premium Pricing Strategy that includes selling of High Quality Products at a High Price.

STORY
ITC Lifestyle Retailing Business Division made foray into the Rs. 200 billion ready to wear apparel industry with the launch of its Wills Sport range of internationally-styled premium relaxed wear for men & women in the year 2000. The companys first exclusive store Wills Lifestyle was opened in South Extension in Delhi in July 2000. The WLS chain of exclusive stores later expanded its range to include Wills Classic formal wear in 2002 and Wills Club life evening wear in 2003. Later in 2006, WLS became the title partner of the premium fashion event India Fashion Week. This association has helped the brand grow stronger and also make the product portfolio richer. The lifestyle retailing business division also caters to the mid-segment market through its brands John Players and Miss Players.

MARKETING STRATEGY
ITC is committed to a national agenda of raising agricultural productivity and making the rural economy more socially inclusive. ITC believes that the urgency and scale of these tasks make market linked solutions and innovations more effective and sustainable than capital intensive approaches. ITC reaches out directly to consumers with its Wealth Out of Waste (WOW) campaign, that has been successfully implemented in select locations across southern India consumer engagement has been targeted through multiple touch points. Today, the ever discerning consumer has very specific product requirements. We aim to offer products that satisfy all these needs, and in the process establish Fiama Di Wills as the leading brand in the premium personal care market segment. The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others

 Subhiksha was an Indian retail chain with 1600 outlets selling groceries, fruits, vegetables, medicines and mobile phones. It began operations in 1997, and was closed down in 2009 owing to financial mismanagement and a severe cash crunch. Subhiksha was the countrys largest supermarket, pharmacy and telecom chain. It was started by Mr. R. Subramanian, IIT-Chennai and IIMAhmedabad alumni.

 Subhikshas range of fresh fruits and vegetables is sourced directly from farms on city outskirts and made available to consumers at very reasonable prices. It provides medicines to consumers at a flat 10% discount. It is also India's largest mobile retailer and offers handsets, accessories and charge cards from all leading brands including Nokia, Motorola, Sony Ericsson, LG, Samsung, etc., at the lowest prices.

MARKETING STRATEGY BY SUBHIKSHA

Market penetration strategySubhiksha was looking for the price sensitive Indian customers who wish to buy discounted fresh groceries and brand products. Which is predominantly middle class segment, buying often from the market rather than stocking as that allow improved cash flow for home budge.

LOW COST MIDDLE CLASS FOCUSED BUSINESS STRATEGY

Subhiksha decided to sell the branded and fast moving consumers goods at discounted prices through no-frills store. They decided to operate on low margins and believed that profitability could be achieved through operational efficiency and economies of scale.

OPERATIONAL STRATEGY
To achieve these business goals, Subhiksha knew that they have to reduce their input costs. Property,rental costs and people costs are the two costs that contribute to most of the expenses for a trading business after cost of the goods sold. They focused on different areas of their operations to bring down costs and provide value to customers. Subhikshas Operational strategy can be explained as follows: They decided to operate from smaller stores all across the city rather than big stores located in the centre of the city. Idea behind this was to locate the stores in such a way that average distance from the house of potential consumers would be less, so that they can visit the store more often. They decided to operate from properties that are located off the street. The reason to reduce the rental costs for the properties, as generally off street properties can be rented on good bargain than on street stores. They believed that customers could still be attracted with discounted products with same quality & brand promise. They decided to stock only fast moving consumer goods so that presence of item on the store shelf can be minimized and hence reduce the operation cycle. Shorter the operation cycle, more and more profit the company can generate.

OPERATIONAL STRATEGY
They decided to keep their stores no frills. No air conditioning, no staff to take people around, stocking products people are already aware of and no spends on decoration lighting in the store were the few ways to bring the store costs down. All this was believed essential for low cost strategy. They designed store formats in such a way that consumers enter from one end, walk through the store and exit from other end. Exit end has the billing counter and also a security guard. Subhiksha used to buy all the products on cash Their expansion strategy resulted in opening of around 500 stores in 6 months during their later years, and thereby allowing them to go for bulk purchase contracts with vendors to source centrally for all the stores. This started giving them benefits of economies of scale. They had setup customer loyalty programme, Subhiksha tracked their customers through loyalty cards and these card holders got attractive discounts on special products. This program allowed them to gather consumer data and provide more focused benefits. This also allowed them to provide services like home delivery.

WHAT THEY SHOULD HAVE DONE DIFFERENTLY?

Subhiksha went for an aggressive expansion strategy in later 2006. They ignored the strengthening of their supply chain, replenishment logistics and distribution when they started expansion. Subhiksha should have secured sufficient funds through both equity and debt financing moderately balancing their risk before going after expansion plans.

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