Case Study- Subhiksha

Group Members:
Shivam Goyal
Vishrut Sharma
Rituparna Chakraborty
Kanika Gandotra
Himanshu Singh
Failed Venture
Subhiksha : Company Profile
Discount department store Type
Retail Industry
R Subramaniam (IIM Ahmedabad) Founder
March, 1997 Date of Commencement
Thiruvanmiyur, Chennai, India (1997) First store
1000 stores(de-functional) Number of Stores
25,000(NA) Employees
www.subhiksha.in(de-functional) Website
2007 Date of Shutdown
Subhiksha : About the Company
Subhiksha means "One that gives all good
things in Life".
Chennai based supermarket and pharmacy
retail chain
USP: Discount Strategies
Market Focus: Middle class income consumers
Subhiksha : Product Portfolio
Products
Super
market
Fruits and
Vegetable
Pharmacy
Telecom
Subhiksha : Growth Portfolio
Entered Indian
Retail Market
1997
Opened First
Store in Chennai
March
1997
10 Stores in
Chennai
March
1998
50 stores in
Chennai. ICICI
joins venture.
June 2000
120-130 stores
in Tamil Nadu
2002
Retail Stores in
Gujrat,
Karnataka, Delhi,
Mumbai, Andhra
Pradesh
2004-05
Subhiksha
Mobile Shops
2006
Subhiksha : Suggestions
Measured Expansion
Employees Approach
Promoting Ethics
IPO Benefits
Attractive Visual Merchandising
Thoughtful Inventory Management
Subhiksha : Suggestions
Reasonable Profit Margins
Consolidated Expansion of Product Variety
Audit and Survey Teams
Promotion Strategies
Above the Line Promotion
Vendor Management

Strength
It is Indian retail chain with 1600 stores allover India
Skilled workforce that help customers in buying decisions
Prices are 8 % less than the MRP so its affordable for common man
Better ambience than typical retail store helps to gain customer time
Strong supply chain management

Weakness
Limited attractive promotional offers to attract customers
Decreasing footfall in stores is a concern
Less geographical reach restricted mostly in metro cities

Opportunity
Using ATL promotional offers could cater to mass consumers in minimum time
Leverage on brand name could help them expand in semi metro city
Positioning on quality and variety and not only on pricing

Threats
Consumers are getting highly brand cautious in various socio-economic classes
Brand image has been deteriorating and sales getting hampered too due to competition


Give next purchase discounts

Avg. Bill Size- Bundle the products

Offline Competitions to promote
by Mouth of Word

Heavy sale day every fortnight

Affiliate Marketing








How do you retain current customers, increase footfalls and the average bill size ?

Are our marketing, category management, and business planning activities
heading in the right direction ?

The growth is too rapid and this entire Debt financing model can lead to the
failure of the business model.
Category Management is good and product bundling can be done to promote
home brands.
Billing time should be reduced by upgrading the IT Solutions.


Are they scheduling and planning their staff in a right manner ?

They should decrease the employee attrition rate by :
Rewarding them by coupons and giving titles like employee of the month ,
Employees can be converted into customers.
Special discounts to employees on the items they purchase from the store


Thank You