Bachat Mera Adhikar! Subhiksha Mera Abhimaan!

subhiksha

OUTLINE

INTRODUCTION

INTRODUCTIONFruits

Vegetables

Grocery

Medicines

Mobiles

Market

2008

New

Stores

1600

Outlet

Largest

Investors

RS.286

billion

1.6%

Of GDP

INTRODUCTION

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

• Subhiksham Card

• Home Delivery System

• Use of IT

• Online Retail System

MATURITY

MATURITY

2

0

0

0

2

0

0

0

2

0

0

1

2

0

0

2

2

0

0

3

2

0

0

4

2

0

0

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

INFORMATION

TECHNOLOGY

MARKETING

FINANCE

INTERNAL

DECLINE

Deep

research

Loyalty

reward

Mismatch

pricing

Window

experience

Confuse

moment1 minute

shopping

VISUAL MERCHANDISING

HYGINE FACTOR

PRICING FACTOR

TOO BIG BAG

WINDOW EXPERIENCE

LOYALTY REWARD

DECLINE