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SUBHIKSHA

Discount Store with a Difference

PRESENTED BY-
YUGESH KUMAR
DUBEY
ROLL NO.-8279
INTRODUCTION-
vStarts it’s operation in 8 march 1997 in
Thiruvanmiyur.
v
vIn 2004 subhiksha had 164 stores all over
Tamil Nadu and Pondicherry (Chennai
alone account for 72).
v
vRevenue in 2004 reaches to Rs. 2,200
million and it aimed to increase it to Rs.
2,800 million by end of 2005.
v
vinitially sells grocery and
pharmaceuticals.
Conti….
v Plan to have store at every 2 km.
v
v Aimed to have 550 stores by 2009 as it’s
expansion plan.
v
v Without air condition, extravagant lightning or
decoration.
v
v Customer had to ask for product against
touch and feel experience offered by many
stores.
v
v Goods were 8-10% lower than maximum
retail price.
INITIAL PROBLEM-
vProtest against pharmacy discount
strategy.
v
vFrequent enquiry about standard of drug
by drug inspector.
v
vConflict with drug maker glaxo.

 OVERCOME-
v
vICICI venture
v
MANAGEMENT STRUCTURE-

 operation store


Procurement and distribution Goods directly procured from manufa


One manager for three store
Supply chain software

Chief manager
godowns

Vice president
WHY RETAILING IN CHENNAI-
vSupermarkets don't account for even 10
per cent of the groceries sold in Chennai.
vSurvey revealed for four core attribute-
 1- proximity
 2- quality of groceries
 3- price of branded
groceries
 4- availability of products
v
v
MODEL SUSTAINABILITY-
vNo middleman decrease the price.
vSurvey motivate them to go for this model.
vStrategy-
 1- availability
 2- acceptability
 3- affordability
v
RECENT NEWS-
v 8-10 per cent of stores that are unviable may be
closed while the rest would continue
v
v On 30 January- 2009 managing director R.
SUBRAMANIAN said that company need cash
infusion of Rs. 300 crore to get the company
back on track(property & salary dues).
v
v Debt up to Rs. 750 crore.
v
v late December, Mr Kannan Srinivasan, a
professor of marketing at Carnegie Mellon
University’s Tepper School of Business, had
resigned from Subhiksha’s board and in early
January marketing consultant Rama Bijapurkar,
who is also an alumnus of IIM-A like Subhiksha
CRUX OF PROBLEM-
vcompany expanded too rapidly on a small
equity base of Rs 250 crore and grew the
business, primarily through debt, to a
level of 1,600 stores and 15,000
employees, and Rs 2,300 crore in sales
by March 2008.
v
vplanned to raise money from FIIs collapsed
when the “financial tsunami” happened.
v
.

 SPECIAL THANKS TO-


 Prof.
JAVED SYED

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