Welcome to the PresentationWelcome to the Presentation

Marketing Plan of SuperstoreMarketing Plan of Superstore

With You Always…..

Background of the PlanBackground of the Plan

‘‘Cost Cutter’Cost Cutter’ is actually an innovator of new is actually an innovator of new

concepts in the mass retailing industry. We areconcepts in the mass retailing industry. We are

the first to develop the low-price superstorethe first to develop the low-price superstore

concept in Sylhet, Bangladesh. concept in Sylhet, Bangladesh.

Our VisionOur Vision

"We are committed to improving the lives of "We are committed to improving the lives of our customers by providing quality products, our customers by providing quality products, services and solutions that earn their trust, services and solutions that earn their trust,

gain pioneer position & building lifetime gain pioneer position & building lifetime relationships with them."relationships with them."

Our MissionOur Mission

Attaining best in class productivity and efficiency

Building our brands also Reinventing the company continuously

through technology and innovation Reinforcing “The New Way of Retailing” by

living our values every day"

Our Goals Our Goals

Wanted & needed around Sylhet & also in Bangladesh very soon

A growing business, full of opportunity More innovative & full of ideas Winners locally whilst applying our skills

nationally A creator of highly valued brand

Our Objectives Our Objectives To grow the Bangladesh

core To be an outstanding retailer

in superstore market To be strong in everything

considering food, household accessories, groceries etc

To build our team so that we create more value

To reduced product waste / damage/ out of code

““PESTEL” ANALYSIS PESTEL” ANALYSIS

PESTEL analysis (Political, Economical, Social,PESTEL analysis (Political, Economical, Social,

Technological, Environmental & Legal analysis)Technological, Environmental & Legal analysis)

describes a framework of macro-environmentaldescribes a framework of macro-environmental

factors & also analyses the dynamic andfactors & also analyses the dynamic and

unpredictable environment in which Cost Cutterunpredictable environment in which Cost Cutter

will operates by identifying the forces that havewill operates by identifying the forces that have

the most impact on Cost Cutter’s performance. the most impact on Cost Cutter’s performance.

PoliticalPolitical

The growth of Cost Cutter’s local & national business segment is on the rise and it is predicted to account for one quarter of the company’s profit.

An international concept has provided Cost Cutter with a platform to expand its retail network across the Sylhet & very soon nationally

Social Social

Internet literacy level dropsInternet literacy level drops Consumers’ attitude changingConsumers’ attitude changing

EconomicEconomic Facts & statistics says about the GDP Facts & statistics says about the GDP

growth rate in Bangladesh expanded 6.30% growth rate in Bangladesh expanded 6.30% in 2012 from the previous year. in 2012 from the previous year.

EconomicEconomic

• More than half of the GDP is generated by the retail sector. Sylhet is fast becoming a major center of retailing in Bangladesh.

TechnologicalTechnological

Being affected by the use of the Internet Loyalty programs are being introduced Mobile technology has also taken off Online retail shopping has gained

considerable popularity

EnvironmentalEnvironmental

Cost Cutter’s corporate social responsibility image will appraisable

introduce its Greener Living Scheme & including how to reduce food waste also recycling the waste products.

Consumers reusing bags, recycling mobile phones and aluminum cans and preferring bag less deliveries are being rewarded by us.

LegalLegal

Affect the non-food sectors of Cost CutterAffect the non-food sectors of Cost Cutter An increasing of operating costsAn increasing of operating costs

COMPETITOR ANALYSIS COMPETITOR ANALYSIS

Comparing to other developed countryComparing to other developed country““Superstore” is quite a new concept inSuperstore” is quite a new concept inBangladesh. The chain superstores are now aBangladesh. The chain superstores are now agrowing phenomenon in city area. Agora is ingrowing phenomenon in city area. Agora is inleading position now & our very tough competitorleading position now & our very tough competitorin Bangladesh where Shopno & Taradin are strongin Bangladesh where Shopno & Taradin are stronglocal competitor though they are in departmentallocal competitor though they are in departmentalstore segmentation as well.store segmentation as well.

Intensity of competitive rivalry Intensity of competitive rivalry

Competitive rivalry is extremely high.Competitive rivalry is extremely high. Competition from its direct competitors Competition from its direct competitors

including Shopno & Taradine.including Shopno & Taradine. The slow market growth The slow market growth Primary consumers are attracted by local Primary consumers are attracted by local

retailers.retailers. Hard discounters have taken over the market Hard discounters have taken over the market

in times of recession.in times of recession.

SEGMENTATION, TARGETING SEGMENTATION, TARGETING & POSITIONING & POSITIONING SegmentationSegmentation: All kinds of market : All kinds of market

segmentation approaches have been segmentation approaches have been considered promptly to ensure customer considered promptly to ensure customer satisfaction and organizations’ development.satisfaction and organizations’ development. It It consider-consider-

Accessible MeasurableMeasurable Profitable Distinct from one another

Continue…..Continue…..

The objective of segmentation is to findThe objective of segmentation is to find

attractive markets. Our strategies include- attractive markets. Our strategies include- Select which segment to target (our target Select which segment to target (our target

customers are middle class to upper level, customers are middle class to upper level, corporate level people, socialites)corporate level people, socialites)

Breaking market into components Breaking market into components (product/service variations considering the (product/service variations considering the target customers) target customers)

Positioning Positioning

We use perceptual maps technique to

determine the position of store. Positioning

maps or perceptual maps can be simple, yet

very effective marketing tools. Cost Cutter

follows the Retail Industry Level strategy

respectively.

Targeting Targeting

This is the real goal/objective in market thatCost Cutter wants to reach. The percentage of the population uses

products from us; The percentage uses our brand; How does that compare to competing brands; The demographic profile of our product

category & Media reach the users of this category;

TRADING AREA ANALYSIS, TRADING AREA ANALYSIS, DEVELOPMENT & MAPPING DEVELOPMENT & MAPPING

Characteristics of a population Area coverage

Characteristics of a populationCharacteristics of a population

We measured the population based on- We measured the population based on- social class, personality, location, income, social class, personality, location, income, age, lifestyle, attitude, work, belief and some age, lifestyle, attitude, work, belief and some other facts.other facts.

Main customers are those people who earn Main customers are those people who earn Tk. 30,000 or more per month and solvent Tk. 30,000 or more per month and solvent enough, the upper-middle class in most enough, the upper-middle class in most casescases

Area coverageArea coverage

Target area is Zindabazaar ,Medical ,Batalia, Target area is Zindabazaar ,Medical ,Batalia, Shakgat and other close related area.Shakgat and other close related area.

Our competitors shopno and Taradin other Our competitors shopno and Taradin other stores are so far from our location. stores are so far from our location.

SITE SELECTION & STORE SITE SELECTION & STORE LOCATION LOCATION

We are going to establish We are going to establish our superstore at our superstore at Lamabazaar point in Lamabazaar point in Sylhet. Sylhet.

It is situated near It is situated near residential area at residential area at Lamabazar, opposite to Lamabazar, opposite to Modon mohon college in Modon mohon college in Sylhet.Sylhet.

Availability of a broad Availability of a broad selection of goods under a selection of goods under a single roof.single roof.

SWOT ANALYSIS SWOT ANALYSIS

Strengths Weakness Opportunities Threats & Opportunity-Threat Matrix

Cost Cutter’s StrengthsCost Cutter’s Strengths Home Goods & other linesHome Goods & other lines

Carry a variety of products at a low costCarry a variety of products at a low cost Store LocationsStore Locations

Urban areaUrban area Store located in easily accessible areasStore located in easily accessible areas Market in the Urban area effectivelyMarket in the Urban area effectively

Able to get a large multi-cultural consumer groupAble to get a large multi-cultural consumer group Offered lay away plan for people who need to pay on Offered lay away plan for people who need to pay on

installmentsinstallments

Cost Cutter’s Cost Cutter’s Weakness Weakness

Low marketing budget Low marketing budget Many low profit departmental stores & Many low profit departmental stores &

markets nearby markets nearby Negative publicity arises as an new entrance Negative publicity arises as an new entrance Did not offer variety that appealed to the low-Did not offer variety that appealed to the low-

middle classmiddle class

Cost Cutter’s Cost Cutter’s OpportunitiesOpportunities

Integrate Supply Chain ManagementIntegrate Supply Chain Management Need to change the negative image Need to change the negative image Improve the product line carried to keep the Improve the product line carried to keep the

all level of middle classall level of middle class Design the store to be more organized and Design the store to be more organized and

attractiveattractive

Cost Cutter’s Threats

Agora as a national rival and Shopno as both local & national Increasing their Market Share

Having to liquidate company Suppliers raising prices Profits declining Urban areas are becoming more suburban

like

Opportunity-Threat MatrixOpportunity-Threat Matrix

Level of Impact on Company

High Low

High 1 2

Low 3

Probability of Occurrence

1 – Credit can 1 – Credit can be down ratedbe down rated2 – Cost Cutter 2 – Cost Cutter getting broadgetting broad3 – Supplier 3 – Supplier raise costsraise costs

RETAIL HUMAN RESOURCE RETAIL HUMAN RESOURCE MANAGEMENT MANAGEMENT

The management of Cost Cutter has The management of Cost Cutter has formulated a comprehensive human resource formulated a comprehensive human resource strategy. strategy.

We are focusing on-We are focusing on- Work simplification, Work simplification, Performance management and Performance management and Ensuring that all the firm’s employees have Ensuring that all the firm’s employees have

the necessary core skills. the necessary core skills.

MARKETING STRATEGY MARKETING STRATEGY

• Combines all of its marketing goalsCombines all of its marketing goals• Focus on the right product mixFocus on the right product mix• Sustain the businessSustain the business

8“P”s 8“P”s Traditional four “P”s are:Traditional four “P”s are:

ProductProduct PricePrice PlacePlace PromotionPromotion

Additional four “P” s are:Additional four “P” s are: PeoplePeople ProcessProcess Physical evidencePhysical evidence ProductivityProductivity The last 4Ps represent the systemic vision from The last 4Ps represent the systemic vision from

the Marketing point of view the Marketing point of view

1)Product, 2)Price, 3)Place & 1)Product, 2)Price, 3)Place & 4)Promotion (Traditional)4)Promotion (Traditional)

1) Product items are divided in to eleven categories 1) Product items are divided in to eleven categories 2) Less concentric in aggressive selling & rapid profit 2) Less concentric in aggressive selling & rapid profit

makingmaking 3) Distinctive advantage to gain customers attention 3) Distinctive advantage to gain customers attention

rapidly via prime locationrapidly via prime location 4) Promotional activities are-4) Promotional activities are- Advertisement campaign Advertisement campaign NewspapersNewspapers Some core areas of Sylhet for bill-board ad Some core areas of Sylhet for bill-board ad virtual advertisement via social networkingvirtual advertisement via social networking

5)People, 6)Process, 7)Physical 5)People, 6)Process, 7)Physical Evidence & 8)Productivity (Additional)Evidence & 8)Productivity (Additional)

5) Lead the people, hiring, retaining, training, 5) Lead the people, hiring, retaining, training, and building teamwork.and building teamwork.

6) Concentrating in CRM, Project Management, 6) Concentrating in CRM, Project Management, and Product/service Development and Product/service Development

7) Excellence in decoration, proper space 7) Excellence in decoration, proper space allocation & architectural attractiveness along allocation & architectural attractiveness along with each counters set up with each counters set up

8) improving relationships with its suppliers, 8) improving relationships with its suppliers, profitability, growth management & innovation profitability, growth management & innovation

Customer Relationship Customer Relationship Management (CRM) Management (CRM)

Loyal customers Loyal customers Implementation of CRM Implementation of CRM Generating more revenue Generating more revenue Attracts new future clientsAttracts new future clients

Continues

Consideration the areas of Consideration the areas of CRM CRM

Interface between customer & organization Interface between customer & organization Automated all related processes Automated all related processes Helps to establish loyal customers Helps to establish loyal customers Can result in profit making Can result in profit making Helpful in managing after sales servicesHelpful in managing after sales services

Critical Success Factors (CSF) Critical Success Factors (CSF)

Our Strategies of CSF Understanding of changing customer needs Clear and differentiated brand proposition Aligned multi-channel and customer

management strategy Innovation culture Exploiting customer data Harnessing online communications/

communities

Customer Service

Making customer-centricity part of our Making customer-centricity part of our business fabric business fabric

Utilizing workforce planning and optimization Utilizing workforce planning and optimization Formalizing in-store training programs Formalizing in-store training programs Meets or exceeds customer service Meets or exceeds customer service

expectationsexpectations Centralizing customer information and buying Centralizing customer information and buying

data data

OPERATION MANAGEMENT OPERATION MANAGEMENT

Financial Dimension-Financial Dimension-

Profit PlanningProfit Planning Asset managementAsset management BudgetingBudgeting Resource allocationResource allocation

Profit PlanningProfit Planning

Margin is not so high Margin is not so high Low barrier of entry into the Low barrier of entry into the

market market Low margin by selling large Low margin by selling large

quantities of product quantities of product Less concentric on rapid Less concentric on rapid

profit making profit making

Asset management Asset management

Operating, Operating, Maintaining, Maintaining, Upgrading, and Upgrading, and Disposing of assets cost-effectivelyDisposing of assets cost-effectively

Budgeting Budgeting

Adequate funding Adequate funding Secure the permits and Secure the permits and

licenses licenses Purchase all equipments Purchase all equipments Hire employees Hire employees Investment about 1.5cr.Investment about 1.5cr. Funding- bank (40%), Funding- bank (40%),

personal (60%)personal (60%) Five partnersFive partners

Resource allocation

We allocate the resources in the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time.

OPERATION MANAGEMENT OPERATION MANAGEMENT

Operation DimensionOperation Dimension Operating BlueprintOperating Blueprint Inventory ManagementInventory Management Store SecurityStore Security Transportation & WarehousingTransportation & Warehousing Store Format, Size & Space AllocationStore Format, Size & Space Allocation Supply Chain ManagementSupply Chain Management

Operating BlueprintOperating BlueprintOur 7 steps of Blueprint makingOur 7 steps of Blueprint making--

Capture the original dream & vision Capture the original dream & vision Focus everyone’s daily activities & Focus everyone’s daily activities &

specific goals & objectives specific goals & objectives measure indicators of profitability, measure indicators of profitability,

success & progress success & progress Concentrate in IT sector, Concentrate in IT sector,

virtualization, online servicesvirtualization, online services motivated confident & well motivated confident & well

informed teaminformed team cost efficiency & productivitycost efficiency & productivity Improve customer satisfaction & Improve customer satisfaction &

increase rapid business increase rapid business

Inventory ManagementInventory Management

Reduce inventory, loss through identification of Reduce inventory, loss through identification of theft, loss & training issuestheft, loss & training issues

Decrease inventory through optimize orderingDecrease inventory through optimize ordering Decrease ultimate cost due to forecasting & Decrease ultimate cost due to forecasting &

waste reductionwaste reduction Increase sales due to reduction in out of stocksIncrease sales due to reduction in out of stocks Improve margin due to supplier management Improve margin due to supplier management

Store Security Store Security

Secure customer’s properties & possession

High quality innovative products & security solutions

Close-Circuit-television for safety

Security guards Have Thai-glass & steel

security system

Transportation & Warehousing Transportation & Warehousing

Provide total quality service Provide total quality service Specialized in handling truck Specialized in handling truck

load & employees to home load & employees to home delivery for ordersdelivery for orders

Large size warehouse with Large size warehouse with our superstoreour superstore

Urgent products for Urgent products for customers customers

Save more products for Save more products for increase demands increase demands

Short time supply Short time supply

Store Format, Size & Space Store Format, Size & Space Allocation Allocation

Stores Format & Layout: Follows “Grid Layout”.

Continues Continues

Store Format consider by •Location •Ownership •Product categories •Size •Price

Store Size

Measured by the number of outlets or stores that a business operates

As a new entrance we firstly open one outlet in target location

Space Allocation Space Allocation

Approaches to Space Allocation-

Top-down space management approach

Total available store space

Divides the space

Stores product layout

Supply Chain Management Supply Chain Management

Cost Cutter's supply chain through improving- Product availability, Product security, Reducing waste, Removing costs, and Improving our processes.

Trend of Weak Supply -Chain Trend of Weak Supply -Chain ManagementManagement

Ord

er

Siz

e

Time

CustomerDemand

CustomerDemand

Retailer OrdersRetailer Orders Distributor Distributor

Production PlanProduction Plan

Orders

CONCLUSION CONCLUSION

Cost Cutter will be able to achieve cost leadership and differentiation strategies with the help of a lean and agile supply chain management, along with the strategic use of information technology. The core competencies of Cost Cutter will be aligned with the business environment, therefore highlighting a positive future outlook for the company.

The End