PRICING POLICY

GROUP 2

What is Positioning map ?

A graphic depiction of consumers' perceptions of several competing products or services, presented on a two-dimensional graph

Fixed utility
Benefits
Experience Service quality Variety of product Flexibility

Variable utility
Benefits
Price discounts Habitual category experience

Cost
Location

Cost
Expected price

Shoppers perceived fixed utility

High

Service based store

Winner

low

Loser

Volume based store Shoppers perceived variable utility

low

High

Shoppers perceived fixed utility

High

VOLKSWAGEN

TOYOTA

HYUNDAI

low

FIAT

MARUTI Shoppers perceived variable utility

low

High

Shoppers perceived fixed utility

High

SWATCH

CASIO

TITAN

low

HMT

CITIZEN Shoppers perceived variable utility

low

High

ABOUT SUBHIKSHA
Subhiksha was started by R. Subramaniam, an IIM A & IIT Chennai

alumnus in 1997
Subhiksha is from Sanskrit origin which means prosperity the giver of all good things in life Main idea

1,000 sq ft Vs. 10,000 sq ft shops - Carpet Bombing Model Indian presence with stores across Delhi, UP, Punjab, Haryana, Gujarat, Maharashtra, AP, Karnataka, Kerala and Tamil Nadu

Vision
To emerge as the largest retailer in the food, grocery, pharmacy segment in all the geographical regions we operate from

Mission
To deliver consistently better value to Indian consumers , as guided Subhiksha to deliver savings to all consumers on each & every item that they need in their daily lives, 365 days a year without any compromise on the quality of goods purchased

PRODUCT PORTFOLIO
Fruits Vegetables Grocery Medicines

Mobiles

MAIN HIGHLIGHTS

Every Day Low Price Strategy

Proximity of stores Home Delivery System Online Retail System Subhiksham Card

REASON FOR DOWNFALL

Rapid Expansion Closed down 90 stores in one month during November 2008

Capital structure vs. business model problem

Operational efficiency $ 60 million debt restructuring program only if 40% of its

store are shut.

Poor inventory management

THANK YOU