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AMARA BAZAAR
         – TEAM WHISTLERS
                   (NMIMS)
                    TIRTHANKAR BEHERA
                           ROHIT SHAW

Plan for Amara Bazaar’s foray into Raipur
SWOT Analysis of RK Mall

        STRENGTHS                                                           WEAKNESSES
• Located close to target consumer          • No Hypermarket present in the mall
     • Middle class present in Bhilai and   • Less number of branded shops compared
        Durg                                  to other established malls
     • Residential area around the mall
     • Young crowd from colleges nearby
• A well established mall since 5 years
• Presence of multiplex as well as game
  zone for children which can draw in
  families




• Can expand with more number of            • Presence of more established malls in
  branded shops                               Raipur at better locations like City Centre
• Can increase footfall by improving          and Majento
  the ambience
• Can decorate the mall during festive
  seasons to attract more people


        OPPORTUNITIES                                                            THREATS
SWOT Analysis of Mosaic Mall

        STRENGTHS                                                         WEAKNESSES
• First mover advantage in Naya Raipur     • Located far away from the main Raipur
• Presence of popular brands like            city
  Pantaloon and Fun Republic in future     • Will take considerable time for a shop to
• Proposed as the biggest mall in Raipur     breakeven




• Tap customers from upcoming              • Uncertainty regarding completion time of
  residential areas which is currently       upcoming projects in the area
  under construction




        OPPORTUNITIES                                                          THREATS
Choice of Location using Factor
   Rating Method
                                                                                Weighted Factor Scores
                           RK Mosaic Factor
      Factor                                                         Factor                RK Mall    Mosaic
                           Mall Mall Weight
                                 Factor Scores (1-5 scale)   Proximity to Target Market      1.35         0.9
 Proximity to Target
                           4.5            3            0.3
      market                                                     Customer parking           0.1125       0.12
 Customer parking          3.75           4           0.03
                                                                 Traffic Congestion          0.12        0.16
 Traffic Congestion         3             4           0.04
                                                                    Competition               0.3         0.4
    Competition             3             4            0.1         Labor supply              0.32        0.24
    Labor supply            4             3           0.08           Sourcing                 0.4         0.3
      Sourcing              4             3            0.1   Location Cost (Rent,Utility
                                                                                              0.4        0.45
   Location Cost                                                     bills,etc)
                            4            4.5           0.1
(Rent,Utility bills,etc)                                        Community Attitude            0.2        0.15
 Community Attitude         4             3           0.05    Transportation facilities       0.4         0.2
   Transportation                                                    Plot Size                0.2        0.225
                            4             2            0.1
      facilities                                               Special Consideration
      Plot Size             4            4.5          0.05       (Crime rate,Police           0.2        0.15
Special Consideration                                               Security,etc)
 (Crime rate, Police        4             3           0.05             Totals               4.0025       3.295
    Security,etc)                                                 Best Total Score          4.0025
                                       Total            1          Best Location            RK Mall

Looking at the SWOT analysis of RK mall and Mosaic mall as well as the
results of the Factor rating method , Amara Bazaar should be set up at RK Mall.
Store Format

                         Hypermarket              Supermarket           Supercenter
                                                  Medium, around   Very High, around 100,000
 Space Required       High, around 50,000 sq ft
                                                   20,000 sq ft               sq ft

 Stock availability             High                   Low                 Very High
                                                                         Low to High
     Range of
                                High                 Medium         (Depending upon what it
     products
                                                                            sells)
                                                   Medium , only
                      High as these are treated                    Medium , since it is spread
   Convenience                                     groceries are
                         as “one stop shop”                            over a large area
                                                     available

  Location Cost                 High                 Medium                Very High

Due to space constraint, it is very difficult to open a Supercenter in Raipur
Also RK mall is located near some of the educational hubs and students are
more interested in buying electronic items like phones, laptops and computer
accessories. So it will be better to open a hypermarket.
Merchandising Strategy

   Features of High assortment and                        Features of High variety and fewer
             fewer variety                                          assortments
                                                         Satisfaction level high to find products of different
 Freedom of choice in the same product category
                                                                               category
 Provides information to assist in developing one’s
                                                            Low regret if the product turns out to be bad
                   preferences
Flexibility for consumers who are certain about their    Flexibility for consumers who are uncertain about
                 preferences and tastes                               their preferences and tastes
 Higher chance that a consumer will find a product        Higher chance that a consumer will find the best
           matching his/her ideal point                                       product

                                          High Variety Less Assortment
                                    Initially provide a variety of choices to the consumer
Strategy
   for                   Identify Consumer Behavior and Buying Preferences
 Amara         Analyse the buying behavior of consumers to identify the fast selling and in demand products
 Bazaar
                               Employ a combination of both the strategies
                   Keep high assortment of fast selling products + lesser SKUs for a variety of products
Merchandising Strategy

   Bottom-up Assortment Planning: Inputs
    from POS data and store-SKU level demand
    data have to travel from the stores upwards to
    make an effective assortment plan.


   Understand Customer: Identify customer-
    buying patterns and shopping behaviour.
    Customer shopping basket and loyalty data
    can help in achieving this target.


   Personalized offers and Coupons: Make
    “The right offer to the right customer”    e.g.
    offer on a baby shampoo for a young mother,
    dog food discounts for pet owners or on
    organic food for a health conscious person
Merchandising Strategy

   Assortment Localization: Use a variety of
    localization strategies to give shoppers the
    feeling that a store is “their” store and that it
    understands their specific needs closely.


   Cross-channel Synergies in Merchandising :
    There has to be a cross-channel uniformity
    between the merchandise across channels.


   Price Optimization: In some segments like
    grocery retail where price elasticity is high, even
    a margin percentage difference in pricing can
    lead to major difference in sales volumes.
Proposed Layout
    Assumption: Amara Bazaar will be spread across two floors.
    The Ground floor is for groceries and related items as it will be easy for
    customers to take heavy loads of grocery to the parking area.

   Dairy and Bakery complementary goods                   Ground Floor
   Grocery high traffic and frozen foods high
    margin
   Natural foods high demand and frozen
    foods high margin
   Toys to attract children and children
    based purchases
   ATM to promote express counters and
    outside people
   Cappuccino bar and indoor/outdoor
    eating area for mobile queue
   Impulse items near queue space to
    increase more impulse buying
Proposed Layout

The first floor is for clothes, electronics, apparels, personal grooming
items, furniture and home linen products             First Floor

   Flexibility in layout
   Allowance for
    browsing and
    wandering freely
   Increased impulse
    purchases
   Visual appeal
   Clearance items for
    more impulse buying
   Changing rooms near
    apparels for
Manpower and Shift Plan
Organizational Chart                      Store
                                         manager

            Floor manager         Inventory   Procurement                                   Manpower
                                                            IT Manager
                                  manager       manager
          Cashier
                                                                         Front end job –   Back end job   Multi Tasking –
                                                                            Customer            –         Able to perform
                 Supervisor                                                interacting     Supply chain         both
                                                                            activities     management     front and back
    Customer           Security staff                                                                        end jobs
service associates

Cleaning staff              Workers
                         for unpacking
                                                      Manpower Requirement Matrix
                        Weekdays 10 AM – 6           Weekdays 4 PM –         Weekends 10 AM –      Weekends 4 PM –
                        PM                           12 PM                   6 PM                  12 PM
                        (Less Customers)             (High Customers)        (High Customers)      (Highest
                                                                                                   Customers)
   Customer             Low                          High                    Medium                High
   interacting
   Activities
   Supply chain         High                         Low                     High                  Medium
   management
   Multi                Low                          Medium                  High                  High
   Tasking
Manpower Requirement




Front end job: Customer              Back end job – Supply        Multi Tasking
interacting                          chain management (28)        (25)
Activities ( 97)                     • Inventory manager : 5
• Store manager : 2                  • IT executives : 3          •Multitaskers: 25
• Admin. & commercial staff : 5      • Procurement manager : 5
• Supervisor : 5                     • Workers for unpacking : 15
• Customer service associates : 50
• Cashier : 15
• Security staff (including parking)
:10                                          Total no of employees: 150
• Cleaning staff : 10
Queuing System
     Multiple Queue            Single Queue Multiple       Single Queue Single
     Multiple Server                  Server                      Server

                                     Advantages         Advantages
      Advantages               ->Fairness – Supply of   ->Fairness – Supply of
->Possible to segment          service provided to      service provided to
customers based on             customer who queued      customer who queued
service needs                  first                    first
->Space available is           ->Reduces possibility
equally distributed            of customers
                               abandoning the line

                                   Disadvantages
       Disadvantages                                     Disadvantages
                               ->Normally the
->Person arriving earlier      length of the queue       ->Large waiting time for
for billing runs the risk of   is larger. So people      consumers
being serviced after the
person arriving later.         perceive it will take
                               more time
Example comparing MQMS and
SQMS

Multiple Queue                                   Single Queue
Multiple Server                                  Multiple Server

              Service     Service     Service     Service     Service     Service
              Time =      Time =      Time =      Time =      Time =      Time =
               3min        4min        3min        3min        4min        3min
             Counter 1   Counter 2   Counter 3   Counter 1   Counter 2   Counter 3

                                                  Cust 1      Cust 2      Cust 3
             Cust 1      Cust 2      Cust 3
                                                   3 min       4 min       3 min     Time taken
Time taken    3 min       4 min       3 min
                                                  Cust 4      Cust 6      Cust 5
             Cust 4      Cust 5      Cust 6        3 min      4 min        3 min     Time taken
Time taken    3 min       4 min       3 min       Cust 7      Cust 9      Cust 8
             Cust 7      Cust 8      Cust 9        3 min      4 min        3 min     Time taken
Time taken    3 min       4 min       3 min       Cust 10                 Cust 11
                                                   3 min                   3 min     Time taken
             Cust 10     Cust 11     Cust 12
                                                  Cust 12
Time taken    3 min       4 min       3 min        3 min                             Time taken
Total time                                        15 min      12 min      12 min     Total time
              12 min      16 min      12 min
  taken                                                                                taken
Proposed Queuing System for
Amara Bazaar
Single Queue Multiple Server model should be used as it provides the following
advantages -:

• The total processing time for all customers is lesser
• Customers are serviced in the order in which they arrive
• The average waiting time as well as the variance in average
   waiting time is lesser
• Separate queues can be maintained for Express counters ( for less
  than 10 items)
• Merchandise displays along the single queue provides an
  opportunity to capture a shopper's impulse purchase earlier in the
  queue
• Queue busting processes – Hand held scanners and Mobile Queue
Strategy for Amara Bazaarto be a
National brand
Thank You

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Solution

  • 1. AMARA BAZAAR – TEAM WHISTLERS (NMIMS) TIRTHANKAR BEHERA ROHIT SHAW Plan for Amara Bazaar’s foray into Raipur
  • 2. SWOT Analysis of RK Mall STRENGTHS WEAKNESSES • Located close to target consumer • No Hypermarket present in the mall • Middle class present in Bhilai and • Less number of branded shops compared Durg to other established malls • Residential area around the mall • Young crowd from colleges nearby • A well established mall since 5 years • Presence of multiplex as well as game zone for children which can draw in families • Can expand with more number of • Presence of more established malls in branded shops Raipur at better locations like City Centre • Can increase footfall by improving and Majento the ambience • Can decorate the mall during festive seasons to attract more people OPPORTUNITIES THREATS
  • 3. SWOT Analysis of Mosaic Mall STRENGTHS WEAKNESSES • First mover advantage in Naya Raipur • Located far away from the main Raipur • Presence of popular brands like city Pantaloon and Fun Republic in future • Will take considerable time for a shop to • Proposed as the biggest mall in Raipur breakeven • Tap customers from upcoming • Uncertainty regarding completion time of residential areas which is currently upcoming projects in the area under construction OPPORTUNITIES THREATS
  • 4. Choice of Location using Factor Rating Method Weighted Factor Scores RK Mosaic Factor Factor Factor RK Mall Mosaic Mall Mall Weight Factor Scores (1-5 scale) Proximity to Target Market 1.35 0.9 Proximity to Target 4.5 3 0.3 market Customer parking 0.1125 0.12 Customer parking 3.75 4 0.03 Traffic Congestion 0.12 0.16 Traffic Congestion 3 4 0.04 Competition 0.3 0.4 Competition 3 4 0.1 Labor supply 0.32 0.24 Labor supply 4 3 0.08 Sourcing 0.4 0.3 Sourcing 4 3 0.1 Location Cost (Rent,Utility 0.4 0.45 Location Cost bills,etc) 4 4.5 0.1 (Rent,Utility bills,etc) Community Attitude 0.2 0.15 Community Attitude 4 3 0.05 Transportation facilities 0.4 0.2 Transportation Plot Size 0.2 0.225 4 2 0.1 facilities Special Consideration Plot Size 4 4.5 0.05 (Crime rate,Police 0.2 0.15 Special Consideration Security,etc) (Crime rate, Police 4 3 0.05 Totals 4.0025 3.295 Security,etc) Best Total Score 4.0025 Total 1 Best Location RK Mall Looking at the SWOT analysis of RK mall and Mosaic mall as well as the results of the Factor rating method , Amara Bazaar should be set up at RK Mall.
  • 5. Store Format Hypermarket Supermarket Supercenter Medium, around Very High, around 100,000 Space Required High, around 50,000 sq ft 20,000 sq ft sq ft Stock availability High Low Very High Low to High Range of High Medium (Depending upon what it products sells) Medium , only High as these are treated Medium , since it is spread Convenience groceries are as “one stop shop” over a large area available Location Cost High Medium Very High Due to space constraint, it is very difficult to open a Supercenter in Raipur Also RK mall is located near some of the educational hubs and students are more interested in buying electronic items like phones, laptops and computer accessories. So it will be better to open a hypermarket.
  • 6. Merchandising Strategy Features of High assortment and Features of High variety and fewer fewer variety assortments Satisfaction level high to find products of different Freedom of choice in the same product category category Provides information to assist in developing one’s Low regret if the product turns out to be bad preferences Flexibility for consumers who are certain about their Flexibility for consumers who are uncertain about preferences and tastes their preferences and tastes Higher chance that a consumer will find a product Higher chance that a consumer will find the best matching his/her ideal point product High Variety Less Assortment Initially provide a variety of choices to the consumer Strategy for Identify Consumer Behavior and Buying Preferences Amara Analyse the buying behavior of consumers to identify the fast selling and in demand products Bazaar Employ a combination of both the strategies Keep high assortment of fast selling products + lesser SKUs for a variety of products
  • 7. Merchandising Strategy  Bottom-up Assortment Planning: Inputs from POS data and store-SKU level demand data have to travel from the stores upwards to make an effective assortment plan.  Understand Customer: Identify customer- buying patterns and shopping behaviour. Customer shopping basket and loyalty data can help in achieving this target.  Personalized offers and Coupons: Make “The right offer to the right customer” e.g. offer on a baby shampoo for a young mother, dog food discounts for pet owners or on organic food for a health conscious person
  • 8. Merchandising Strategy  Assortment Localization: Use a variety of localization strategies to give shoppers the feeling that a store is “their” store and that it understands their specific needs closely.  Cross-channel Synergies in Merchandising : There has to be a cross-channel uniformity between the merchandise across channels.  Price Optimization: In some segments like grocery retail where price elasticity is high, even a margin percentage difference in pricing can lead to major difference in sales volumes.
  • 9. Proposed Layout Assumption: Amara Bazaar will be spread across two floors. The Ground floor is for groceries and related items as it will be easy for customers to take heavy loads of grocery to the parking area.  Dairy and Bakery complementary goods Ground Floor  Grocery high traffic and frozen foods high margin  Natural foods high demand and frozen foods high margin  Toys to attract children and children based purchases  ATM to promote express counters and outside people  Cappuccino bar and indoor/outdoor eating area for mobile queue  Impulse items near queue space to increase more impulse buying
  • 10. Proposed Layout The first floor is for clothes, electronics, apparels, personal grooming items, furniture and home linen products First Floor  Flexibility in layout  Allowance for browsing and wandering freely  Increased impulse purchases  Visual appeal  Clearance items for more impulse buying  Changing rooms near apparels for
  • 11. Manpower and Shift Plan Organizational Chart Store manager Floor manager Inventory Procurement Manpower IT Manager manager manager Cashier Front end job – Back end job Multi Tasking – Customer – Able to perform Supervisor interacting Supply chain both activities management front and back Customer Security staff end jobs service associates Cleaning staff Workers for unpacking Manpower Requirement Matrix Weekdays 10 AM – 6 Weekdays 4 PM – Weekends 10 AM – Weekends 4 PM – PM 12 PM 6 PM 12 PM (Less Customers) (High Customers) (High Customers) (Highest Customers) Customer Low High Medium High interacting Activities Supply chain High Low High Medium management Multi Low Medium High High Tasking
  • 12. Manpower Requirement Front end job: Customer Back end job – Supply Multi Tasking interacting chain management (28) (25) Activities ( 97) • Inventory manager : 5 • Store manager : 2 • IT executives : 3 •Multitaskers: 25 • Admin. & commercial staff : 5 • Procurement manager : 5 • Supervisor : 5 • Workers for unpacking : 15 • Customer service associates : 50 • Cashier : 15 • Security staff (including parking) :10 Total no of employees: 150 • Cleaning staff : 10
  • 13. Queuing System Multiple Queue Single Queue Multiple Single Queue Single Multiple Server Server Server Advantages Advantages Advantages ->Fairness – Supply of ->Fairness – Supply of ->Possible to segment service provided to service provided to customers based on customer who queued customer who queued service needs first first ->Space available is ->Reduces possibility equally distributed of customers abandoning the line Disadvantages Disadvantages Disadvantages ->Normally the ->Person arriving earlier length of the queue ->Large waiting time for for billing runs the risk of is larger. So people consumers being serviced after the person arriving later. perceive it will take more time
  • 14. Example comparing MQMS and SQMS Multiple Queue Single Queue Multiple Server Multiple Server Service Service Service Service Service Service Time = Time = Time = Time = Time = Time = 3min 4min 3min 3min 4min 3min Counter 1 Counter 2 Counter 3 Counter 1 Counter 2 Counter 3 Cust 1 Cust 2 Cust 3 Cust 1 Cust 2 Cust 3 3 min 4 min 3 min Time taken Time taken 3 min 4 min 3 min Cust 4 Cust 6 Cust 5 Cust 4 Cust 5 Cust 6 3 min 4 min 3 min Time taken Time taken 3 min 4 min 3 min Cust 7 Cust 9 Cust 8 Cust 7 Cust 8 Cust 9 3 min 4 min 3 min Time taken Time taken 3 min 4 min 3 min Cust 10 Cust 11 3 min 3 min Time taken Cust 10 Cust 11 Cust 12 Cust 12 Time taken 3 min 4 min 3 min 3 min Time taken Total time 15 min 12 min 12 min Total time 12 min 16 min 12 min taken taken
  • 15. Proposed Queuing System for Amara Bazaar Single Queue Multiple Server model should be used as it provides the following advantages -: • The total processing time for all customers is lesser • Customers are serviced in the order in which they arrive • The average waiting time as well as the variance in average waiting time is lesser • Separate queues can be maintained for Express counters ( for less than 10 items) • Merchandise displays along the single queue provides an opportunity to capture a shopper's impulse purchase earlier in the queue • Queue busting processes – Hand held scanners and Mobile Queue
  • 16. Strategy for Amara Bazaarto be a National brand