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