Report on the supply chain management of SS Mart Limited

Business Logistics

A report on Supply Chain Management of SS Mart Limited

By

BOSON PARTICLE

UNIVERSITY OF DHAKA
FACULTY OF BUSINESS STUDIES DEPARTMENT OF MARKETING Batch 16th

19 May, 2013

Submitted to,
Anowarul Hossain Assistant Professor Department of Marketing Faculty of Business Studies University of Dhaka

Submitted by,
Group name: Boson Particle Sec: B 16th batch B.B.A Program Department of Marketing Faculty of Business Studies University of Dhaka

Name of Members

Roll no.

Group Detail

Anick Sharkar Md. Aminul islam Md. Hedayet Ullah Hasan Mahmud S.M. Tawhidul Alam Shaikh Shanawaz Siddique

32 74 120 142 148 182

19 May, 2013

The Faculty, Anowarul Hossain Assistant Professor Department of Marketing, Faculty of Business Studies, University of Dhaka Dhaka-1000

Subject: Submission of Report.

Sir,

We forward herewith the report and document about Supply Chain Management of SS Mart Limited for our course no: 413 named Business Logistics.

We look forward to receiving any comments that you may have in relation to the above.

Thank you for your attention.

Yours sincerely,

Group name: Boson Particle

Acknowledgement

We take immense pleasure in thanking our faculty, Anowarul Hossain, Assistant Professor, Department of Marketing for having permitted us to submit the report.

Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents for their blessings, our friends and classmates for their help and wishes for the successful completion of this report.

Executive Summary

The retail chain superstores have introduced a new way to shop. The superstores are open from 9 am to 8 pm every day. Rush of customers is experienced in the morning and evening. SS Mart superstores are currently focused in food retailing, ranging from a wide variety of fresh vegetable, fruits, meat and fish to grocery, bakery, dairy, personal care and household products. SS Mart provides its customers with guaranteed quality and freshness. So if you need to do some quality shopping, you can do it in SS Mart superstores in confidence. Most of the employees of SS Mart are young and well-educated, some with Masters and MBA degrees. SS Mart

superstores are currently focused in food retailing, ranging from a wide variety of fresh vegetable, fruits, meat and fish to grocery, bakery, dairy, personal and household products. SS Mart provides its customers with guaranteed quality and freshness. It carries more than 30,000 varieties of products and has plans to expand its product portfolio to carry other ranges of consumer products in the coming years. It aims at building a chain of more than 40 superstores by year 2010. SS Mart has been the venue of launching of Thai products.

Over 8 million have purchased products at SS Mart since the opening of SS Mart's fist superstore, with 2,000 customers using the SS Marts every day on an average. Customers prefer using both cash and credit cards. SS Mart constantly launches attractive promotions like Bazimat, Value Week or Super Value Offer or Diamond Ring Offer.

Table of Contents

Chapt SL No er

TOPIC

Page Number

PART 1

1.1 1. 2 1. 3
PART 2

Origin of the Report History of SS Mart Limited Objective of SS Mart Limited

2.

Research Methodology

2.1 2.2 2.3 2.4 2.5 2.5.1 2.5.2 2.5.3 2.6

Methodology of the Study Rational of the Study Objective of the Study Purpose of the Study Data Collection Primary Data Secondary Data Collection Procedure of Data Limitations of the Study

PART

3 3. 3.1.1. 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3. 2 Profile of SS Mart Organ gram of SS Mart SS Mart Beliefs SS Mart Brand Promise SS Mart Aspiration SS Mart Quality Policy SS Mart Values Functions of SS Mart

3.2.1 3.2.2 3.2.3 3.2.4 3.3 3.4 3.4.1 3.4.2

Human Resources Departments Procurement Departments Marketing Departments Finance Departments Merchandise offerings Supply Chain Procedure Supply Chain of 6 specific products Drivers of Supply Chain performance

3.4.3 3.5 3.6 3.7 3.8 3.9 3.10 3.11

Cost and profit in each supply Chain Stages Retailing Strategy Target Market Want to Achieve Desired Tone and Manner Required Communication Message Location Selection Competitive Advantages of SS Mart

Part 4
4. 1 Exclusive Value Week

4.2 4.3

Diamond Ring offer at SS Mart Comparative Analysis SS Mart vs. Meenabazar

4.4

SWOT ANALYSIS

Part5
5. 1. 5.1.1 Recommendations Some General Solution for Improving the Service Quality

Part6

Conclusion References Sample Question and SS Mart Products Picture.

Part7 Part8 Appendix

1.1 Origin of the report

This report is originated as a partial part of the Business Logistics department of Marketing, Faculty of Business Studies,. This report has helped us to match our theoretical knowledge ORIGIN OF THE REPORT with practical understanding. As the student of Department of Marketing, we were provided with the topic supply Chain management of SS Mart Limited the report titled supply Chain management of SS Mart Limited will be submitted to Anowarul Hossain,Faculty, Department of Marketing, University of Dhaka.

We have acquired knowledge about changing of business pattern and why the demand of retail business is increasing in the worldwide; however, we have introduced with this type of business pattern and gathered the practical knowledge & information going through this report. By going through this report, we got an opportunity to develop and implement our knowledge and findings so that we can become as a perfect knowledge oriented BBA graduate.

1.3 Objectives of SS Mart Limited:

SS Mart a new way to shop, Bangladeshs first definitive Supermarket chain which is a unique example of multi-disciplinary expertise. SS Mart is one of the earliest innovators of supermarket concept in Bangladesh. Before coming supermarket concept in Bangladesh, people were use to traditional shopping in the kacha bazzar and like to bargain with the retailers and also they became happy and proud if they could get the best thing after all the hassles. However, the time poor society does not enough time to roam around the kacha bazzar and does not that much energy to do bargain. So, they are welcoming the concept of super market to save their time and get the best service that is convenient for them. The SS Mart concept is based on similar examples in Sri Lanka and the Philippines where within relatively short period of their creation, the environmental condition of the localized unorganized retail operation in katcha bazzar rapidly improved. To offer a clean, healthy and a friendly environment to customers for shopping. To give customers confidence and establish an environment of trust. Offer better range of quality products. Establish rational prices. Encourage products standard and quality products, or better prices. Improve product packaging and presentation. Contribute improving living standards. Total commitment to the needs of customers Permanent improvement of all the employees knowledge and skills.

2.1

Methodology of the Study

This report tries to evaluate the recent trend in the retail culture of the market, retailing strategy, distribution pattern, retailing mix, financing, Sustainable competitive advantage, activities and services and some other affairs. Before going into the depth of the study, conceptual structure was visualized under which the whole report is conducted. Preparing a report about the super market (SS Mart) is a complicated and difficult task and no single method is appropriate, that is why I have to follow several methods to prepare the report. For this reason, I have followed a number of procedures to prepare a meaningful report.

2.2

Rational of the Study

The rationality of this Study is to determine the importance about the marketing section and business strategy of superstore industry. It also helps us to understand about the feelings towards our superstore industry of the foreign customers. I would also learn about the foreign customers when, why and what are their expectations from our superstore industry.

2.3

Objective of the Study

As stated earlier I have two issues to find out. I want to determine the awareness level of SS Marts potential customer and at the same time identify the satisfaction level of the existing

customer. There might be one single reason or there might be multiple reasons. My objective of the research is to determine the reasons and help the management to make decisions. The subsequent objectives will be to find out the following queries: To determine the awareness status of SS Mart Customer in relation to its exclusive Features to the potential customers. To evaluate the present promotional strategy of SS Mart. To find out the satisfaction level of SS Mart Customer. To identify what kind of promotional strategy and activity will solidify SS Mart Customer base in the market.

2.4

Purpose of the Study

As a marketing student I got the opportunity to get the insight of present retail market I know the present growth of retail market, it would help us to forecast the future market and accordingly I would introduce the new features to the target customers .for an example, I would adopt the local franchisee procedure rather than take the risk of setting up own retail store. This would help us to minimize risk in terms of goodwill.

2.5

Data Collection

The report covers two types of data; which are2.5.1 Primary Data I have acquired the primary data from the sales personnel and the internet search.

2.5.2 Secondary Data

By the observation and questioner survey, I have gathered the secondary data. 2.5.3 Collection Procedure of Data For preparing the report, I have used various methods. These methods are being discussed in the following pages.

Discussions I became knowledgeable through discussion with one of the sales personnel of SS Mart for several times, which make the report a full-fledged one. It is a primary source of collecting data. Internet Search I also got some primary information surfing through the net. Questioner Survey I have occupied a half of the Friday for questionnaire survey to the consumers who came to shop within that particular time; which is a secondary source of data.

2.6

Limitations of the Study

The report is not free from practical limitations. To make this report on SS Mart (Dhanmondi) is a big task. we made this report based on our observation and questionnaire survey, which were not enough to fulfill our survey objective. The first limitation of the report was time allocation for the report. And finally SS Mart has no website.

3.1 Profile of SS Mart Limited

3.1.1 Organ gram of SS Mart Limited:
Managing Director (MD)

CEO

Operations Mgr Executive Operations SS Mart Outlets

Procurement Mgr Procurement dept Dept

Marketing Mgr Marketing Dept

HR and Admin Mgr HR and Admin Dept

IT Mgr IT Dept

Finance and Accounting Mgr F and A Dept

Audit Mgr Audit Team

Project Mgr Project Team

3.1.2 SS Mart Beliefs

Ranging from automotive aftermarket products, energy and power solutions, to a world class retail chain the committed team at SS Mart is committed to ensuring best in class quality standards and living the Groups four core values Integrity, Excellence, Customer Delight and Innovation. 3.1.3 SS Mart Brand Promise

SS Mart promises a caring, trustworthy and friendly environment for day - to - day food and household needs assuring you peace of mind at the right price, weight, quality, freshness, hygiene and genuine value for money for your family under one roof. 3.1.4 SS Mart Aspiration We want to be the most admired and trusted organization through excelling in everything we do, following ethical business practices, and adding value to our stakeholders. 3.1.5 SS Mart Quality Policy We are totally committed to customer delight through operational excellence, innovation and continual improvement of quality. 3.1.6 SS Mart Values Integrity in All Our Dealings Excellence in Everything we Do Total Commitment to Customer Satisfaction Thinking Ahead and Taking new Initiatives Team Speed Fun Laughing Constant Skill Development

3.2 Functions of SS Mart Limited:

SS Mart places a high value on human resource development and the contributions made by its employees. They preserve to maintain a productive and harmonious working environment in the whole organization. SS Mart always continues with its efforts to improve the efficiency of its employees and align them to the right positions with well-defined responsibilities. In order to cope up with the dynamic nature of the companys business, initiatives are always taken to restructure and recognize the companys existing set up. It always evolves standardized management systems and procedures across functional divisions, focusing in particular, on the effective integration and assimilation of all the organizational units. SS Mart also has various departments. These are: Human resources Departments, Procurement Departments, Marketing Departments, IT Departments, Finance and Accounting Departments and Project Department.

3.2.1

Human Resources Departments

Human resource department is responsible for the recruitment and training of the employees of the company. They also monitor the performance and handle the promotion and salary related matters.

Recruitment and Selection Process in SS Mart

Recruitment is the process through which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection. Source of Recruitment There are two kinds of source SS Mart uses for recruitment .They are 1. Internal source.

2. External source

1. Internal Source SS Mart thinks that current employees are a major source of recruits for all but entry-level positions. Whether for promotions or for Lateral job transfers, internal candidates already know the informal organization and have detailed information about its formal policies and procedures. Promotions and transfer are typically decided by operating managers with little involvement by HR department.

2. External Source When job opening cannot be filled internally, the HR department of SS Mart must look outside the organization for applicants. Training and Development Program of SS Mart Training is a process of learning a sequence of programmed behavior. It is application of knowledge. It gives people an awareness of the rules procedures to guide their behavior. It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance but also those which bring growth of the personality; help individuals to the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women. In organizational terms, it is intended to equip person to earn promotion and hold greater responsibility.

On the Job Training On the job training is a training that shows the employee how to perform the job and allows him or her to do it under the trainers supervision on the job training is normally given by a senior employee or a manager. The employee is shown how to perform the job and allowed to do it under the trainers supervision.

Classroom Training Classroom training is conducted off the job and probably the most familiar training method .It is an effective means of imparting information quickly to large groups with limited or no knowledge of subject being presented. It is useful for teaching factual material, concepts principle other theories .portion of orientation programs, some expects of apprenticeship training and safety programs are usually presented utilizing some form of classroom instruction. More frequently however, classroom instruction is used for technical, professional and managerial employee Development of the Human Resources The long term development of human resources as distinct from training for a specific job is of growing concern to HR departments of SS Mart .Throw the development of current employees the department reduces the companys dependents on haring new workers .if employees are developed properly the job openings found throw HR planning are more likely to be filled internally promotions and transfers also show employees that they have a career not just a job. The employee benefits from increased continuity in operations and from employees who fail a greater commitment. HR department is also an effective way to meets several challenges including employee obsolescence, international and domestic diversity, technical challenges. Affirmative action and employee turn over. By meeting these challenges the department can, maintain an effective workforce. HR Practices of SS Mart

Recruitment Training Performance Management Labor relation Employee relation Job analysis Job design

Selection Development Incentives Benefits Employee Relation

Employers and employees each have their own sets of needs and values, and successful relationship between these two sides requires that some sort of balance be struck. This balance often takes the form of a psychological contract, an understood agreement between employer and employees that defines the work relationship. This contract with or without support of a formal collective bargaining, agreement influence the outcome achieve by each side. SS Mart has the various into three channel categories those are 1. Employee safety 2. Employee health 3. Employee working condition

1. Employee Safety SS Mart provides the employee safety .It ensure the all kinds of job safety such as insurance of each employee not this it provide insurance to the labor.

2. Employee Health Free medical checkup, provide health card and also provide necessary medical facilities for each employee. 3. Employee working condition The working condition of employee is very hygienic

Workers Compensation Workers compensation is a legally required benefit is included in the compulsory disability laws of many countries. Mostly, employer is seen liable regardless of the fault.

Objectives of Workers Compensation

Provide income & medical benefits Reduce litigation Eliminate legal fees & time Encourage employer safety Promote accident study & avoidance

Workers Compensation Claims

Injury Occupational disease Death

Pay for time not worked Holidays Vacations Marriage leave Sick leave Stress leave Personal leave Administration Department SS Mart has also an administration department. This department looks after companys day-today affairs. It also appoints employees, fix salaries, and make rules and regulations. On the other

hand, the department also works about factory compliances issues, management disciplinary action matters.

3.2.2 Procurement Departments SS Mart has a procurement department. This department directly supervises the procurement process. Quality Control Department SS Mart superstore ltd has quality control team who closely supervise the product quality, product weight, product expire date, product manufacture country etc. Quality control team also helps, to reduce the problems of the product quality and they take necessary steps to solve the problems.

3.2.3 Marketing Departments The duty of marketing department is to communicate with buyers and also aware about buyer requirement. Marketing strategy is always focused to meet the target price offered by the customer. Brand and A&P denotes to brand and advertising & promotion. This unit deals with the overall brand management and promotion activities of the company. The unit covers both outdoor (billboards, road-overhead etc) media and indoor (print & electronic) media. This unit is also responsible for communicating with the advertising agencies, since SS Mart does not have any in-house agency. Each unit has a unit-head who reports to the head of Marketing.

3.2.4 Finance Departments Financial division has five units dealing with financial matters of the company. Accounts Payable This unit keeps track on the accounts payable of the company.

Accounts Receivable This unit keeps track on the accounts receivables of the company while preparing the balance sheet. As SS Mart Superstore Ltd. is a large company with thousands of financial transactions every day, a unit to keep track on the accounts is necessary. Core Account Core account is an important unit of the finance division dealing with the budget and fixed assets. The annual budget of various departments is prepared under the close observation of this unit.

Revenue Assurance Revenue assurance unit consists of revenue assurance and fraud management. Revenue assurance monitors the transactions and assures full protection of the finances. On the other hand, fraud management protects the fraudulences take place in the daily transactions.

Taxation Taxation unit takes care of the tax, VAT of the company.

3.3 Merchandise Offerings:

SS Mart supermarket is poised to vend in excess of 20,000 varieties of essential commodities, produce edibles, spice, grocery, toiletries and other household necessities including: Vegetables Fish Fruits (local & foreign) Meat Daily products

 Confectionery Households Fast-food Grocery Cosmetics Beverage Bakery. Canned & Packed grocery The project strategic aim, to source in bulk quantities from the producers or manufacturers of products, thereby reducing distribution layers. Traditionally, such practice brings about organization within the industry, and essential commodities, edibles and groceries account for the significant portion of the food industry which in turn is the largest contributor to the broad retailing industry, establishment of the chain of supermarket would have a significant impact on the entire retailing industry in Bangladesh.

3.4 Supply Chain Procedure:

3.4.1 Supply Chain of six specific types of product:

Rice Fish Meat Potato Tomato Egg

Supply chain stages of Rice:

Farmers

Wholesalers

SS Mart

SS Mart store

Customers

Supply chain stages of Fish:

Fisherman

Wholesalers

SS Mart

SS Mart store

Customers

Supply chain stages of Meat:

SS Mart

SS Mart store

Customers

Supply chain stages of potato:

Farmers Wholesalers SS Mart SS Mart store Customers

Supply chain stages of tomato:

Farmers Wholesalers SS Mart SS Mart store Customers

Supply chain stages of egg:

Dairy firm SS Mart SS Mart store Customers

3.4.2 Drivers of Supply Chain Performance at SS Mart:

1. Facilities: facilities are the actual physical locations in the supply chain network where product is stored, assembled, or fabricated.SS Mart Limited maintains a fair facilities or warehousing systems. Their facilities or warehousing systems are mainly in the underground based. So that they can easily cover their necessary goods in a short period of time. By using these facilities systems, they can easily increase their level of responsiveness.

2. Inventory: Inventory encompasses all raw materials, work in process, and finished goods within a supply chain. SS Mart Limited maintains a good inventory method so that they can easily change their inventory policy.SS Mart Limited normally socks their goods minimum 10 months to maximum 20 months so that they reserve their goods properly. As a result, SS Mart is very responsive but carries low levels of inventory.

3. Transportation: Transportation entails moving inventory from point to point in the supply chain. It can take the forms of many combinations of modes and routes, each with its own performance characteristics. For Different types of product, SS Mart uses different modes of transportation. For example, SS mart uses their delivery van to transport their rice, vegetables, and dairy items. They uses these so that the transported goods be kept in safe.

4. Information: Information consists of data and analyzing concerning facilities, inventory, transportation, costs, and customers trough out the supply chain. It is potentially the biggest driver of performance in the supply chain because it directly affects each of the other drivers. This driver of SS Mart is mainly based on market survey. Because SS mart collects all the information by conducting the market survey.

5. Sourcing: Sourcing is the choice of who will perform a particular supply chain activity such as production, storage, transportation or the management of information. SS mart maintains some specific policies to maintain this driver but unfortunately these was confidential so that we were not able to collect that.

6. Pricing: Pricing determines how much a firm will charge for goods and service that it makes available in the supply chain. Pricing affects the behavior of the buyer of the goods or service, thus affecting supply chain performance.SS Mart generally maintains some of the pricing strategies to determine the price of the goods and service that they normally provides. For determining the price, They maintain cost based and competition oriented pricing.

3.4.3 Cost and profit in each supply Chain Stages:

types

Farmer

Wholesaler

SS mart

Customer

Minicat(KG) Polaw(KG) Nazirshail(KG)

40 103 40.5

44 112 44.32

46 116 47

50.90 120 50.90

Cost of Rice in each stage of supply chain:

Profit of rice in each stages of supply chain:

types Cost of potato in supply chain:

Minicat(KG) Polaw(KG) Nazirshail(KG)

Wholesaler
2.00 4.00 2.68

SS mart
4.90 4.00 3.90

each

stage

of

types
potato(KG)

Farmer
08

Wholesaler
11

SS mart
13

Customer
15

Profit of potato in each stage of supply chain:

types
Potato(KG)

Wholesaler
2.00

SS mart
2.00

types

Farmer

Wholesaler

SS mart

Customer

potato(KG)

15

25

27

30

Cost of tomato in each stage of supply chain:

Profit of tomato in each stage of supply chain:

types
Potato(KG)

Wholesaler
2.00

SS mart
3.00

Cost of egg in each stage of supply chain:

types
Egg(dozen)

Farmer
98

Wholesaler
100

SS mart
103

Customer
105

Profit of egg in each stage of supply chain:

types
Egg(dozen)

Wholesaler
3.00

SS mart
2.00

Cost of meat in each stage of supply chain:

types

supplier

SS mart

Customer

Firm chicken(KG)(skinless) beef mutton

262

270

280

260 360

267 375

275 390

Cost of meat in each stage of supply chain:

types

Wholesaler

SS mart
10.00 8.00 25.00

chicken(KG)(skinless) 8.00 beef(KG) mutton(KG) 7.00 15.00

3.5

Retailing Strategy
To offer a clean, healthy and a friendly environment to customers for shopping. To give customers confidence and establish an environment of trust. Offer better range of quality products. Establish rational prices. Encourage products standard and quality products, or better prices. Improve product packaging and presentation. Contribute improving living standards.

3.6

Target Market

Through the Dhanmondi outlet, the above quality perception was appropriate enough. As our targeted segments was more concern about quality rather than price. Our communication strategy needs to be revised and more fine. The demographic and buying behavior is notably different than the older two outlets. The customers who purchase within these areas perceive price more important than quality. Therefore our target audiences comprise of both price and quality sensitive segments. Any communication campaign should target or segment the audiences based on: Need Based Every member of a house (husband, wife, children and maids) Income Based Upper class to middle class who purchase over 200 taka each visit Location Based Outlets are located at different localities with different incomes and buying behaviors. Decision Maker Influential members of the family who make shopping decisions.

3.7

Want to Achieve
To strengthen the brand image among the targeted audience segment based on income and need consistent with our brand promise. Popularize the brand name among general population so that they perceive the SS Mart brand name just as they perceive some others strong brand name. To build strong motivation so that customers perceive quality as first purchasing criteria.

3.8

Desired Tone and Manner

The communication effort/campaign should be: Informative about what we offer and promise. Direct in message delivery to our targeted audiences. Should reflect our brand promise openly. Consistent with our activities.

3.9

Required Communication Message

We want our consumers to make a majority of their perishables, grocery and household bazaar (purchases) from SS Mart and to the local and exclusive imported superior quality products available at SS Mart. The prices of local products are in line with the open market, while the quality is superior and meet the legal standards and this should be another reason for our consumers to prefer us. In a word, the communication message should spell out the SS Mart brand promise in clear tone.

3.10 Location Selection

Three most important things in retailing is location, location, location. SS Mart has put their stores at the best location of interaction. It conquers one area of the city at a time and then expands in the region, saturating a major market before entering a new market.

3.11 Competitive Advantages of SS Mart

Everything is fresh Fixed price recommended by the suppliers. All the daily necessaries under one roof. All guaranteed products Standard quality product Comprised billing

Computerized inventory management Total customer care. SS Mart is covering all essential commodities, edibles, groceries and other daily household requirements including toiletries and all daily necessities. The project's strategic aim to source in bulk quantities from the producers or manufacturers of products, thereby reducing distribution layers. Traditionally, such practice brings about organization within the industry, and essential commodities, edibles and groceries account for the significant portion of the food industry which in turn is the largest contributor to the broad retailing industry, establishment of the chain of supermarket would have a significant impact on the entire retailing industry in Bangladesh.

4.1 Exclusive value week:

EID MUBARAK Are you looking for Tk 1, 00,000.00!!!!! LCD TV!!!! Home Theater!!! Gold Ring!! Or Digital Camera?

Shop over Tk 900 SS Mart (4 30 September) and win what you want.

Dear Concern, Assalamu Alaikum Please find bellow the promotional detail of SS Mart EID UTSHAB

Lucky Coupon Offer Duration: 4 30 September, 2012 Outlet: All Outlets Offer: Shop over Tk 900 and win Tk. One Lac, LCD TV, Home Theater, Digital Camera. Gold ring and many other exciting prizes. Draw: at DM on 3 October at 11 am

Supplier Driven Promotion:

Duration: 4 17 September 1012 1. Save tk 150 at 5 liter and tk 60 at 2 liter Coroli Sunflower oil 2. Buy one Royalty Chocolate and get one FREE 3. T Shirt Free with La Spagnola Vegetable oil 4. Buy HRC Claavdon Tea 400/200 gm and wine Sprint Mobile phone, 500 tk ... 5. Save tk 10 at 500/400 gm Starship milk powder 6. Save tk 90 at 5 liter and tk 30 at 2 liter Orkide Sunflower oil 7. Save tk 6 20 at Marks milk powder 8. Save tk 15 at Chabaa juice 9. Save tk 40 at Rekkit Benckiser special value pack 10. Save tk 133 at Garnier Value pack 11. Shop over tk 3000 at GS and gate 10% Discount at SAAJ( Garments and Fashion House)

Communication Plan
1. Street Banner 200 pcs (120 pcs on 4 Sep, 40 pcs on 17 Sep, and 40 pcs on 24 Sep) 2. Leaflet Distribution 100000 pcs ( 50000 pcs on 5 September and 50000 pcs on 10 September 3. In store communication from 4 September.

4.2

Diamond Ring offer at SS Mart

Diamond Ring offer, a sales promotion campaign, has got underway at SS Mart. Under the offer, which will continue up to January 31, any customer purchasing products worth taka 750 from any SS Mart outlet will have the chance to win a diamond ring through raffle draw.SS Mart has launched the programme to make buying more attractive for customers. The customers will have the chance to win 200 more attractive gifts, including Nokia N 70 mobile phone, digital camera, ipod, DVD player and hair stainer, apart from diamond ring.Under the programme, the customer will get a raffle coupon for buying goods worth Tk 750 at any of the SS Mart outlets.

4.3 Comparative Analysis SS Mart vs. Meenabazar:

Apart from the kacha bazaar we are considering Meenabazar as a competitor of SS Mart according to the site and location. Now we will check the competitive advantage provided by SS Mart against Meenabazar. In the following, we will provide a table of highest responses on ranking good given by the customers of Meenabazaar and SS Mart.
Questions Distant/nearby from home Difficult/easy Drive Long/short time required to reach store Difficult/easy to find car parking Unpleasant/pleasant air temperature Difficult/easy to maneuver Difficult/ easy to find product SS Mart (32) 66% 67% 69% 77% 78% 69% 69% Meenabazar (32) 75% 87% 71% 56% 78% 65% 68%

Dont/accept credit card Kids do not/enjoy going to the store Limited/wide selection Few/numerous brand Low/high quality product High/low price Salespeople are not/at all helpful Salespeople are not/are enthusiastic

87% 47% 78% 59% 67% 34% 87% 63%

56% 62% 56% 43% 50% 34% 75% 71%

Interpretation: Since SS Mart and Meenabazar both are in the same trade area and targeting
the same people, according to the data Meena bazaar is getting more customers than SS Mart because they are on the more convenience location. The data also show that Meena bazaar is taking advantage against SS Mart in terms of accessibility and visibility. Since Meenabazar is a strip Centre and cannot provide car parking due to the shortage of space SS Mart is taking advantage out of it because they are providing a car parking facility to the customers. In terms of giving convenience, they both are performing equally. Usage rate of credit card in SS Mart is higher than Meenabazar. Therefore, we can say that SS Marts customers are more sensitive regarding their security. SS Mart is charging high price buy giving the customers both breadth and depth of product as well as they are concern about the quality product but on the other hand Meenabazar is charging higher price without giving higher assortment and variety. So SS Mart is getting its competitive advantage over its nearest competitor. Both are having similar category of salespeople but Menabazar is having more enthusiastic salespeople regarding knowledge and skill.

4.4 SWOT Analysis:

INTERNAL

P O S I T I

S W O T
EXTERNAL

N E G A T I V E

The SWOT Matrix E

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:

Strength Strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include Brand Image Good reputation among customers. Good Location Assortment in case of wide selection of meat & chicken Convenience shopping

Serving the consumers with fresh food. SS Mart has highly qualified managers, so they can easily take decisions for the company. They also have the opportunity to shift employees one to another that helps to solve urgent problems. On the other hand, it helps to reduce cost and time.

Weakness The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses Less Cash Counter It takes longer time to check out Mistakes in billing. The management and stuffs dont get the enough transport facilities. The intern student cannot get the enough opportunity to build their career.There have a little job facilities for the employees and workers that create job dissatisfaction of the employees.

In some cases, a weakness may be the flip side of strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.

Opportunities The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include Home delivery Can provide more variety Upcoming promotions Can increase more sustainable competitive advantage (like- maintain each customers database, more unique merchandizing, vendor relationship, more effective & committed employees etc.)

For increasing the efficiency of the employees, it is easy to arrange on job and off job training.

Threats Changes in the external environmental also may present threats to the firm. Some examples of such threats include Cannot fulfill the customer needs in terms of leafy vegetable then Katcha Bazaar. Since it is situated in under stored trade area it might face threats in future if a new Retail grocery outlet comes up very close to it. Price sensitive with respect to Katcha bazaar

5.1 Recommedations:

Developing Effective Promotional Strategy To create more awareness among the potential customers, SS Mart must go for effective communication strategy. People in these days appreciate heavy promotional activities because the crazy marketer like Nondon has spoiled the market with their aggressive marketing strategy through huge advertisements & promotions to sell their products. Creating Special Customer Care Desk for Gulshon SS Mart As Gulshan SS Mart customer has been designed targeting the elite group of people of our society, there should be a special customer care desk for the Gulshan SS Mart customer only to ensure fluent service for the customers. It will also help to improve the companys image as the self-employed professionals met so many other people on a daily basis and they can do the viral marketing when they are really happy with the service. Improve Working Environment To solve this particular problem SS Mart does have a space for the customer handling purpose. But, a big space is required and SS Mart can utilize by taking another floor into the customer handling division. This solution will increase the customer satisfaction because customers will make them comfort there and face a less hassle for different purposes like: placing complain or filling the application form or billing. Eliminate Extreme Centralized Management The company should make their structure decentralized rather having a centralized structure. Because a decentralized structure always symbolizes the quality. Being a service provider company SS Mart should also employ a decentralized structure that can increase the job ownership of the employees, and they will be highly motivated to deal with the customized

services. And its very much clear to all that with a happy workforce any company can able to satisfy their external customers.

Front Desk Employees SS Mart can identify this particular problem as a major problem or threat to their existence. So they must undertake training program to increase the front-desk employees communication skill and to deliver services with emotional labor. Like, smiling while providing the services, or short but effective complement to the customers, like: looking great or fit, again some chatting about the whether or the recent news, topic, idea etc. again this company can increase the payment scale a bit that is well matched and judged with the salary range of the corporation. Again, SS Mart must adopt the concept of performance based promotion, designed especially for the front desk employees as they are in the position to provide the actual customer service, which is a necessary for the core service of the SS Mart. Moreover the management can also motivate them by appraisal of their works in front of the other employees and customers. In this context, what SS Mart is to do is to make the employee responsible for the work he/she does and give him/her a certain degree of ownership depending on the importance of the job or position?

Customer Facilities This company can provide a secured parking lot to the customers, so that customers become tension free about their vehicles and take part in the co-service with the front desk employees. Again increase in the number of elevators will add a value to the company image and perceived quality. Again it is a basic requirement for the customers and the employees to be provided with hygienic restrooms. So the company can improve the physical environment of the organization and increase the satisfaction of both the internal and external customers.

5.1.1 Some General Solution for Improving the Service Quality Adopt Relationship Marketing strategies: SS Mart can also improve image by building good relationship with their customers. Their goal should be to get customers, satisfy them, retain them and finally enhancing customers.

Enhancing

Retaining

Fig: Goals of relationship marketing

Satisfying

Adopt Customer-Retaining Strategies

Getting

Since SS Mart is struggling hard among its competitors; it should take strategies to retain existing customers. Among its 4 levels of retention strategies, SS Mart should focus more on level 1 & 2 that is financial bond and social bonds. Volume and frequency rewards, bundling, stable pricing could strengthen financial bonds and social bonds among customers and personal relationship and continuous relationship could help social bonds.
Customer satisfaction

Customer Retention & Increased Profits

Quality Services

Employee Loyalty

Fig: Customer Retention Better Service recovery SS Mart should really concentrate on their service recovery system where they fail the most. They should welcome complaints warmly and act quickly to it. Learning from lost customers can be a weapon for them to retain customers.

Fail Safe the Service

Welcome and Encourage Complaints

Learn From Lost Customers

Service Recovery Strategies Learn Form Recovery Experiences Treat Customer Fairly

Act Quickly

Fig: Service Recovery Strategy

Employees Role in Service Delivery Employees play an important role in service delivery. In order to ensure a good labor force to serve and also to close gap 3, some strategies can be adopted. In SS Mart, they should focus on training the employees for interactive skills, empower employees and promote teamwork. They can also include employees in the companys vision and reward strong performers to ensure superior service quality.

Customers Role in Service Delivery Customers participation in inevitable in service delivery. They are the productive resource and act as the contributors to service quality and satisfaction. In order to enhance customer participation, SS Mart can adopt several strategies. They can define customer jobs through proper advertising. Educating and rewarding customers are vital for solving SS Marts current problems. They also have to manage customer mix properly to ensure effective customer participation.

In Bangladesh, the retail culture is getting to be influenced by the US culture. Many other opportunities have been derived out of the present situation. In addition, Bangladesh has a good prospect to do well in retailing because retailing involves lesser risk than manufacturing. We also need time to have a complete infrastructure for practicing retail culture like other foreign countries.

SS Mart offers more than 20,000 products. SS Mart serves customers from 09 am to 08 pm seven days a week throughout the year. Although sales have grown 20 percent over the years yet SS Mart is still not a profitable organization, as unorganized supply chains of many food commodities have kept all organized retailers in difficulty. Ultimate Aspiration of RSL is to consistently provide SUPREME SOPHISTICATED shopping experience through a business that improves the QUALITY of LIFE for customers and team members.

REFERENCES:
1. Philip Kotler and Gray Armstrong, Principles of Marketing, 10th Edition, Pearson (Prentice Hall) 2. Leon G. Schiffman and Leslie Lazar Kanuk, Consumer Behavior, 8th Edition, Prentice hall of India. 3. Valarie A.Zeithaml, Mari Jo bitner, Dwayne D. Gremler, SERVICE MARKETING, Press TATA Mc GRAW Hill, Printed in Singapore, International Edition 2006. 4. Zikmund, William G, Business Research Methods, 7th edition. Thomson Learning Inc. 2003. 5. Naresh K. Malhotra, Marketing Research, Published by Prentice Hall of India, Connaught Circus, New Delhi-110001, Publication Year-2007 6. Philip Kotler , Gary Armstrong, Principles of Marketing (Hardcover), Publisher, Prentice Hall, College Division 8th edition (August 3, 1998) 7. Decenzo, Robbins, Human Resource Management, PublishedCopyright@1999 Exclusive rights by John Wiley & Sons (Asia) Private. Ltd. Permission Department, John Wiley & Sons Inc. 605, Third Avenue, New York, Sixth Edition 8. Annual report of SS Mart Limited 9. Md. Hossain Sharif Robin,Manager(In Charge),Dhanmondi branch, Contact- 01921365638

Questionnaire on Customer Satisfaction

This is a survey to make a comparative analysis among the major supermarket of Dhaka city on the basis of customer service perception. I would expect your honest and impartial participation to achieve an exclusive unbiased outcome. All the information will be used for academic purpose and kept under strict confidence.

Please go through the following text to know what the questionnaire is about and answer the following questions.

Please supply the following details about yourself and tick the appropriate boxes.

Age 15-25 46-55 26-35 56-65 36-45 65 and above

Education Doctorate H.S.C S.S.C. Postgraduate S.S.C undergraduate below

Occupation Student maker Service holder Business person Home

Approximate monthly income [in BDT] Below 20000 50000 50000- below 70000 20000- below 35000 Above 700000 35000- below

Marital Status Single Married

I am a customer of the _ _ _ _ _ _ _ _ _ _ _ Super Shop for 0-1year 3 year to less than 4 year More than 6 years 1 to less than 2 year 4year to less than 5 year 2 to less than 3 year 5 year to less than 6 year

Please select the degree of satisfaction for each of the following (1.very poor

5.superior)

1 2 3 4 5 1.1 Swiftness in delivering the ordered products 1.2 Quality of the products 1.3 Skills of the employees 1.4 Quality of the services provided 1.5 Easiness to find out the right product 1.6 The use of automated billing system 1.7 Responding to your needs 1.8 Quality of cooperation with our staff 1.9 Customer support service provided 1.10 Behavior of the sales staff Please mark whether one the following have incurred during your purchases from _ _ _ _ _ _ _ _

YES

NO

Number of Occurrences

2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8

Delay in deliverables? Have not found high priority items? Look like a junk store? Delayed response to your call? Improper behavior by one of our employees? Communication difficulties with the staff in charge? Lack of required information? Other? (Please Specify)

Please put tick mark for each statement in appropriate box where 1-strongly disagree, 2Disagree, 3- Neutral, 4 Agree, 5- Strongly Agree

1 Variables Purchase from _ _ _ _ _ _ _ _ _ _ _ improve the customer status When this store promises to do something by a certain time, it does so When a customer has a problem, this store shows a sincere interest in solving it. Store hours are convenient for my shopping needs. Store atmosphere and decoration are appealing A good selection of products was present (Store) has the lowest prices in the area. Strongly Disagree

2 Disagree

Strong Neu Agree ly tral Agree

1 2 3 4 5 6 7

8 9 10 11 12 13 14 15 16 17 18 19

Merchandise sold is of the highest quality The merchandise sold is a good value for the money. Merchandise displays are attractive Advertised merchandise was in stock. the quality of their products is up to the standard The price that they charge is reasonable Purchase from other super shop will incur high switching cost Lowest lead time after online order placement The range of the products of _ _ _ _ _ _ _ _ _ _ _ is diversified Employees in this store give prompt service to customers Employees in this store are never too busy to respond to customer's requests Employees of this store are able to handle customer complaints directly and immediately This store gives customers individual attention

20

21 22 23 24 25 26 27 28

Employees in this store are consistently courteous with customers This store willingly handles returns and exchanges The physical facilities at this store are visually appealing. Materials associated with this store's service (such as shopping bags, catalogs, or statements) are visually appealing The employees appear neat Customers feel safe in their transactions with this store This store insists on error-free sales transactions and records. Customers have no risk to deceived

29 30 31 32

All the workers in _ _ _ _ _ _ _ _ _ _ _ properly trained anti-adulteration campaign performed by _ _ _ _ _ _ _ _ _ _ _ will build up trust Stores are conveniently located _ _ _ _ _ _ _ _ _ _ _ operates long hour a day

1-12 measured the quality and reliability of the service, 13-14 determined the responsiveness, 15-16 measured the availability of the product and service, 17-19 measured the responsiveness, 20-22 determined the empathy, 23-25 tangibility of the organization,24-32 determine the security, compliance and accessibility.

Please indicate the extent of agreement or disagreement with the following question: I am satisfied with the overall service quality provided by _ _ _ _ _ _ _ _ _ _ _

Strongly agree Agree

disagree Strongly disagree

neutral

super shop perishable products are always found fresh Strongly agree disagree Agree Strongly disagree

neutral

Please specify your opinion below 11.1 Do you have any suggestions for improvement?

QUESTIONNAIRE
This is a survey to make a comparative analysis among the major supermarket of Dhaka city on the basis of customer service perception. I would expect your honest and impartial participation to achieve an exclusive unbiased outcome. All the information will be used for academic purpose and kept under strict confidence.

Please go through the following text to know what the questionnaire is about and answer the following questions.

Personal Questions: Age 15-25 46-55 Education Doctorate H.S.C Occupation Student Service holder Business person Home maker Postgraduate S.S.C undergraduate Below S.S.C. 26-35 56-65 36-45 65 and above

Approximate monthly household income [in BDT] Below 20000 50000 50000- below 70000 Marital Status Single Married 20000- below35000 Above 700000 35000- below

QUESTIONNAIRE ON SUPERSHOP SURVEY: Q1 - How or where do you shop for groceries the most frequently? (Please pick one answer only) Super Markets On-line Convenience stores Local Markets High-street Other

Q2 - Which of the following supermarkets do you use the most? (Please pick one answer only) Meena Bazar SS Mart SsMart Others Swapno Nandon Prince Bazar

Q3 - Why do you shop at your supermarket of choice? (Please tick all the answers that apply) Competitive prices Favorite brands Quality of products Choice of products Location / convenience others

Q4 - Would you consider yourself loyal to the supermarket you use the most ( if question 2 is answered)? Loyal Not Loyal Moderately Loyal

Q5 - On average, if you are now loyal to your current supermarket but used to shop at a different supermarket please indicate which ones below.

Meena Bazar SS Mart

Swapno Nandon

SsMart Others

Prince Bazar

Q6 - On average how often do you shop? I shop more than once a week I shop once every 2 weeks I shop once a week I shop once a month or less

Q7 - Do you agree or disagree with the sentence: 'The following supermarkets are competitive on price'? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno SS Mart Nandon SMart Prince Bazar

Others

Q8 - Do you agree or disagree with the sentence: 'The following supermarket offers quality products'? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno

SS Mart Nandon SMart Prince Bazar Others

Q9 - Do you agree or disagree with the sentence: 'The following supermarket offers a wide product range (e.g. food, clothing, electrical, etc.)? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno SS Mart Nandon SMart Prince Bazar Others

Q10 - Do you agree or disagree with the sentence: 'The following supermarket offers a large choice of items within each product range (e.g. for food - fruit & veg, chilled, frozen etc.?) (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno SS Mart Nandon

SMart Prince Bazar Others

Q11 - Do you agree or disagree with the sentence: 'The following supermarket offers value for money'? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno SS Mart Nandon SMart Prince Bazar Others

Q12 - Do you agree or disagree with the sentence: 'The following supermarket has a high level of presence in the market'(store locations, advertising etc.)? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno SS Mart Nandon SMart Prince Bazar

Others

Q13 - Amongst the following supermarkets, which one offers the best value for money? (rank 1=best value for money, 6=worst) Swapno Nandon Meena Bazar G MART Ssmart Others

Q14 - Amongst the following supermarkets, which one offers offers a wide product range (e.g. food, clothing, electrical, etc.)? (rank 1=best choice of products, rank 6=worst) Swapno Nandon Meena Bazar G MART Ssmart Others

Q15 - Amongst the following supermarkets, which one offers a large choice of items within each product range (e.g. for food - fruit & veg, chilled, frozen etc.)? (rank 1=best choice of products, rank 6=worst) Swapno Nandon Meena Bazar G MART Ssmart Others

Q16 - Amongst the following supermarkets, which one is the most customer-friendly? (rank 1=most customer-friendly, rank 6=least) Swapno Nandon Meena Bazar G MART Ssmart Others

Q17 - Amongst the following supermarkets, which one do you think respects the local community the most? (rank 1=most respectful, rank 6=least)

Swapno Nandon Meena Bazar

G MART Ssmart Others

Q18 - Amongst the following supermarkets, which one do you think is the most visible in terms of market presence? (rank 1=most visible, rank 6=least) Swapno Nandon Meena Bazar G MART Ssmart Others