Sumon Das_Sylhet International University_Retail Mgt PPT

7/31/2019 Sumon Das_Sylhet International University_Retail Mgt PPT

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L O G O

Welcome


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www.themegallery.com

Group Name :


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Group Member

Sumon Das 1443

Fahmida Sultana 1401

Uddipan Roy 1440

Salma Begum 1469

Puja Das 1475

Kaji Chistia 14113


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L O G O

Orange Super Store


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Contents

Introduction

BackgroundAbout Orange super storeSituation analysis for Orange super storeVision, Mission, Goals & Objectives

Four Ps of Orange super storeSWOT analysisPESTEL analysisProblem faced by the super store in our

countryPossible recommendationconclusion


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Introduction

Every day we need to go retail store to buy products orservices. As these stores offer a wider and wider variety ofproducts, it has become possible for customers to buynearly all of their everyday items at retail store. But small-box retail store can not provide everything we need.Sometimes they provide us low quality & out datedproduct. They have lack of knowledge about the market

and demand of the customer.

Customers are ready to pay more if they can purchaseeverything from a store. Because of their les leisure timethey always search that type of store in which they canbuy everything and of course which has the good quality.

They also want to get customer service which meansservice before purchasing, during purchasing, & afterpurchasing.

This is why super store business is growing rapidly in ourcountry. They provide wider variety of product andservices with maintaining good quality at a fair price within

a store.


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Background

A departmental store is retail establishment whichsatisfies a wide range of the consumers, personal andresidential.

Retail sales are vital economic contributors & retailtrends often mirror trends in a nations overall

economy.

Superstores have transformed shopping from apotentially time-consuming process involving trips tovarious stores into a convenient, one-stop

experience. They offer a wide range of products, eachsuperstore competing for a larger percentage of thecustomers' wallets. They can render smaller retailerswith less extensive offerings obsolete.


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Large chains of superstores often account for a

sizable percentage of their suppliers' sales,giving the retailers significant bargainingleverage over manufacturers' prices. This canresult in lower prices for the customers, whichputs superstores at even more of an advantagerelative to smaller competitors.

As super stores offer a wider and wider variety ofproducts, it has become possible for customersto buy nearly all of their everyday items.

As such, retailers are competing for a largerpercentage of their customers disposableincome, raising the stakes & causing intensecompetition.


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Though super store business is very familiar tothe other country but this business is inintroduction stage in our country. To start asuper store we need a big figure of money.Besides many problem super store business

growing rapidly in our country. Giving morerevenue and providing high employment.

Because of the current retailers lack ofknowledge about the market and demand, outdated product & low quality product, lowsalesmanship and channel of distribution superstore business plan are growing rapidly and turnin work.


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About Orange Super Store

Name of the super store : OrangeTypes of ownership : Partnership

Number of partner : 6

Location : Bagbari point, Sylhet

Initial investment : Tk. 30,00000

Number of employees : 10

Theme : We save people money so they

can live better


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Situation Analysis for Orange Super Store

Market Analysis1

Current Situation2

Competitor Analysis3

Customer Analysis4


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Market Analysis

As there are no other super store in our targetingarea so we will capture the market as monopolybusiness. Though the small-box retailer willcreate challenge for us & they will target us butour super store is the only one super store inthis area.

If we provide quality product with customerservice & get customer satisfaction then our

customer will never think to go outside from us.Because if they want to go another super storethen they have to pay more transportation cost.


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Current Situation

To start a super store business current situationwill be favourable for us. Because we alreadypass our economic crisis. High purchasing power,living standards and customers willingness tobuy prove that current situation is good to run oropen our super store and run our business.

Though we have to invest a large amount tostart our super store but now we are sure thatwe will get our return of our investment.

Because of first start-up, we will get theadvantage to business in our serving area.

comparatively stable political situation, goodeconomy, high employment, high livingstandards- all these factors are now positive forstarting a super store business in our country.


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Finally, one thing is that we have to face highcompetition in our target market. Because thereare many retailers who will challenge us in themarket and they will change their marketingstrategy.

We will care them but that doesnt mean that weare afraid to face them. Our good & wide rangeof quality product & fair price will talk about us

and make us the leader of this market.


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Competitor Analysis

As there are no other super store in our serving areabut there are more than 30 well established or wellrunning retail shop in this area .They are earningmore profit as their investment not enough to captureall the customers.

But their customer is loyal, not only loyal they arevery much loyal and these retail shop takes personalselling marketing strategy .They sale on credit andtheir customer line start from lower level and reachto the upper line of the society.

Though their service quality is not good enough andtheir customer cannot get everything from theirstores but their customers and sales increasing dayby day. Because these customer have no otheroption.


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On an average these retail shop sale Tk. 5000-12000per day which means total consumption cost of thepeople of this area is near to Tk. 1200000-1800000per dy.This is a huge amount of sales.

This amount increasing or crossed previous amountday by day .These retailers are very experiencedbecause they are serving here more than 3 to 7 yearsand new entrants are also coming. Within 200 or 300meter you can find a retail shop.

This is why they are more dangerous and they areaggressive to their customers & most of them arelocal.


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Customer Analysis

According to our plan our selected location for oursuper store consists middle part of the Bagbari withlast part of the Modina Market & first part of theSagordigirpar. Here, nearly 15000 people live andmost of them are businessmen, Govt. employees and

from private services .

These people are very busy with their job & businessand they have not enough time to go to market and

bargain with the marketer. But they want to get goodthings within a short time.


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This is why we plan to introduce or open here a superstore. This will satisfy their needs, wants anddemands and also create a relationship and add valueto their marketing and purchase.

Purchasing power & living standards of these peopleare so good. They are willing to pay more if their timesaves and get good things and can buy everything

from a store.


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Stairs for Success

VISION

MISSION

GOAL

OBJECTIVES


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MISSION VISION

GOALOBJECTIVES


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VISION

Our vision is to provide good quality product &services to our customers while remaining themarket leader and striving daily to be the mostadmired super store.

Market leader within next 5 years


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MISSION

Our mission must have a higher- order purposeand it must help us and our employees tounderstand why we come to work each day.

Our mission is to provide goods and services fortheir customers at everyday low prices.

Achieve 50% market share within next 3 years

Achieve 80% customer satisfaction within next 3

years

Reduce customer churn by 2% by the end of theyear.

G


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Goals 01 : Management Reengineering

Objectives

HR system- development remuneration

Human resource training

Employ qualified people, equipment, tools,physical environment

Improve internal relationship & communication


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Goals 02 : Increase sales

Objectives

Customer relationship management

Retails Tk. 20,00000 per month

Increase sales and client per year 20%

Build resellers network


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Goals 03 :

Guaranteed satisfaction with what you buy;friendly, knowledgeable service;

Goals o4 :

A wide assortment of good-quality merchandise;the lowest possible prices


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Four Ps for Orange Super Store

Four Ps of Orange

Product PromotionPrice Place


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Product

Grocery items

Discount & Cheaphouse wares

Plastic goods

Clothing Sporting goods

Toys

Stationary & Office

supplies Hardware

Home improvement

Paint supplies

Cosmetics & Toiletries

Shoes

Books & Magazines

Confectionary Home electronics

Pharmaceuticals

Jewelry

Greeting cards


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Price

According to our mission we will provide goodsand services for our customers at everyday lowprices. We will take low cost pricing strategy with

of course maintain good quality product andservices.


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Place

We select an attractive location for our superstore named Orange. People can see it from anyside of the road. An attractive location & displaywill bring more customer to our super store.


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Layout of Orange super store

Storage, Receiving, Marketing

Dressing Rooms

Checkout counter

ClearanceItems

Grocery GroceryJewelry

cosmetics&Toiletries

Shoes

Accessories

Toys

Grocery

Gro

cery

SkirtsandDresses

HatsandHan

dbags

Home Electronics Books & Magazines


Dressing Rooms

Checkout counter

ClearanceItems



Shoes

Accessories

Toys

Grocery

Gro

cery

SkirtsandDresses

HatsandHan

dbags



Dressing Rooms

Checkout counter

ClearanceItems



Shoes

Accessories

Toys

Grocery

Gro

cery

SkirtsandDresses

HatsandHan

dbags



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Promotion

Our promotional strategy will include a

discussion about the relative emphasis onadvertising, personal selling, sales promotions,and alternative marketing techniques.

To introduce our super store with the local

people we will advertise about our store innewspaper. We will build personalcommunication with our customer. Salespromotion & discounts system will help us toattract the customer.

Our super store-Orange will engage in both pushand pull strategies, which makes a discussion ofthe relative mix helpful.


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SWOT Analysis of Orange Super Store

Strength Opportunity

Weakness Threats


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Strength First startup

There are no super stores in Bagbari, Sagordigirpar & ModinaMarket. So, our super store will be the first in this area.

Ability to recognize and face limitations

We have the ability to recognize & face our limitations which will

help us to take any decision for improving our business plan &taking corrective action.

Attractive location

We will open our super store in center of the Bagbari & its anattractive location for starting a super store. Customer will find

our super store from any side of the road.

Customer service

We will serve our customer before purchasing, during purchasingand after purchasing the product or service.


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Strength

Point-of-sale & bar code scanning

This will be helpful for both the customer & for us because thiswill save time and wrong pricing

Great employee benefits

We will take benefits from our employees by using theirexperience, energy & creative idea.

The organization is able to buy in bulk and gain huge bulkdiscounts that are not available to other retailers and is able topass on the discounts and pricing benefits to the customers thus

further solidifying its reputation as a bargain store.

The organization deals in all types of goods from clothes toelectrical items, from jeweler to garden equipment and thereforecaters to a wide range of individuals and needs.


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Weakness

Price-conscious customer

There are many customers who are veryconscious about the price of the product orservice. Price is the main cause that motivatesthem before buying a product. So they canswitch to another retail shop which is providinglow quality product at a low price.

Sales people dont follow procedures

If the sales people dont follow our rules &regulation then they will create problem for us &ultimately it will decrease our customer.


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Weakness

The goods that will sale by Orange from itssuppliers in the past year have been marred bymany different cases of health and safetyhazards.

No previous experience

We have no previous experience in retailing. So

this is a great weakness of us.


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Opportunity

High potential customer base that means Ourservice will be based on our customer.

Due to the cheap rate that the organization is

able to buy its products from suppliers, it is ableto provide customers with even bigger bargainsto encourage them to shop at Orange SuperStore.


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Opportunity

Many retail stores are going out of business dueto the reduction in disposable income. This canhelp us by increasing its customer base due tothe bargains that it can provide its customers.

The current economic crisis has decreased thedisposable income of many individuals and thushas caused many individuals and households tolower their expectations and to shop forbargains, thus Orange stands to gain in such a

situation.

Introduce another super store or diversifiedbusiness


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Threats

Retail store competition and other small-box retailers

Small-box retailer can be a threat for ourbusiness. As there are more than 30 retail storein this competiive area so they will create high

competition.

New entrants

To see our business strategy, sales, marketingand profit people may enter in this area tointroduce new super store which will createchallenge to our business.


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Threats

Employees hunted by competitor

New entrants or other competitor can take ouremployee by giving them more facilities.

Retailers often spur one another into frequentprice cutting & low profit margins Competitorcutting price


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PESTEL Analysis for Orange super store

PoliticalLegal

Economical

Social

Environmental

Technological

PESTEL


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P : Political

Pressure from declining agriculture industry toincrease prices. As a result manufacturer andsupplier also increase the price of the consumerproduct.

Our political culture is not stable. Hartal & strikefrom the opposition party will hamper ourbusiness as a result our sales will decrease. Thistype of political barriers also create problem inour transportation system because our suppliercan not transport the product during hartal &strike

E E i l


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E : Economical

Economies of scale & scope

Large sales volume will give us more revenue &profit. Another thing is that if we buy the product &services bulkily from the manufacturer we will getdiscount & free products.

Barriers to entry

Current economic instability may create barriersto enter in the market. Living standards &purchasing power of the customer are not insatisfactory level.

Increased competition within industryCompetition within the retail industry increasingday by day. More capital are investing by everyretailers. Retailers often spur one another intofrequent price cutting & low cost margins.


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S : Social

Change in consumer taste increased demandfor organic produce & ban of foods.

Health concerns.

Customers are now more conscious about their

health. They are ready to pay more for a goodproduct which is good for their health.

People have les leisure time, thereforesupermarkets offer more convenience.

Customer preference about save their money.

Unemployment


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T : Technology

Online Shopping

This will save time and reduce advertisingexpenses for our super store. Our customer canpurchase goods and services from their home &

office. they dont need to come in our store. Thisprocess is easy & fast.

Personal shopping with a trolley gun

For this benefit customer take the flexibility tochoose a product.


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Bar code scanning

This technology will help us by reducing searchtime.

Technology to predict buying habits.

Layout of stores designed to optimise sales.


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E : Environmental

Now customers are more conscious to protectthe environment. They only buy environment-friendly products & services. So, we havethought about our environment. Product or

service which is harmful for our environment &can create pollution we must avoid them


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L : Legal

For a super store it is more important to runtheir business according to the govt. rules &regulation. Our super store named Orange willbe registered under the govt. rules & regulation.

Another thing is that we will not sell any productor services which are ban by the authority. Suchas alcohol.


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Problem faced by the super store

in our country


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Capital collection

To start a super store in any location need ahuge capital which is very difficult to invest fromone or two person. If one wants to take loan

from a financial institution he or she has to waitfor a long time. Because loan taking process isvery complex in our country.

Economic instabilityOur economic condition is not stable. During thiseconomic crisis most of the customer or peopledoes not like to spend more in a super store.


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Political situation

In our country we have no idea about our politicalsituation. Conditions are very much uncertain. Anythingcan happen within 24 hours which can be harmful for anysuperstore. Corruption is in everywhere. Before starting a

super store the owner must to give a amount to the localleader of the political party.

Purchasing power

Purchasing power may create constraints for our business.People who have less purchasing power they will not go tothe super store. Number of this type of people is increasingday by day.


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Huge operating cost

To operate a super store in our country owner has tospend a large amount of the earning revenue. Ourcustomers are very much pricing conscious. So that, aftercovering all operating cost profit amount may be not so

good

Location problem

This is a big problem that one has to face to select a

location to start a new super shop. Owner must pay highrent for a super store because it consumes a large space.

The distribution system is just not organized; this meansthat the goods are not delivered to the stores on time.


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Possible Recommendation


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To solve the capital collection problem for a newentrepreneur Govt. owned bank & other privatebank & financial institution should give loan witha fair interest rate. A super store business can bestart through partnership. But more partners

may complex the business process or createproblem.

Government should take initiative to remove the

entry barriers to start a super store business.They should reduce tax on this type of businessbecause this industry now in growing stage.


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By taking economies of scale strategy a superstore can reduce its total expenses

Before fully start-up the business a super storeshould analyze the trial period statement.

Good personal communication can increase thenumber of customer of the super store. To

achieve customer loyalty they have to win-winstrategy.


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CONCLUSION


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Though retailing business through super store isvery new to us but it is creating more value toour everyday life. Now we dont need to goseveral retail stores to buy daily commodity or acloth or even a paint supplies. We can buy a buy

anything we need from a store called superstore. Super store hold wide assortment of good-quality merchandise.

In recent year this type of retailing business notonly earning more revenue & profit but alsoreducing unemployment by creating newposition.

L O G O


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Sumon Das_Sylhet International University_Retail Mgt PPT

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