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PRESENTED BY-

YUGESH KUMARDUBEY

ROLL NO.-8279

SUBHIKSHA

Discount Store with a Difference

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INTRODUCTION-

vStarts its operation in 8 march 1997 in

Thiruvanmiyur.v

vIn 2004 subhiksha had 164 stores all over

Tamil Nadu and Pondicherry (Chennaialone 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

v

initially sells grocery andpharmaceuticals.

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Conti.vPlan to have store at every 2 km.

vvAimed to have 550 stores by 2009 as its

expansion plan.

v

vWithout air condition, extravagant lightning ordecoration.

v

vCustomer had to ask for product against

touch and feel experience offered by manystores.

v

vGoods were 8-10% lower than maximum

retail price.

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INITIAL PROBLEM-

vProtest against pharmacy discount

strategy.v

vFrequent enquiry about standard of drugby drug inspector.

v

vConflict with drug maker glaxo. OVERCOME-v

vICICI venture

v

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MANAGEMENT STRUCTURE-

operation store

rocurement and distribution

ne manager for three store

hief manager

oods directly procured from manuf

upply chain software

godowns

ice president

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WHY RETAILING IN CHENNAI-

vSupermarkets don't account for even 10per 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

v

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MODEL SUSTAINABILITY-

vNo middleman decrease the price.vSurvey motivate them to go for this model.

vStrategy-

1- availability 2- acceptability 3- affordability

v

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RECENT NEWS-

v8-10 per cent of stores that are unviable may be

closed while the rest would continuev

vOn 30 January- 2009 managing director R.SUBRAMANIAN said that company need cashinfusion of Rs. 300 crore to get the companyback on track(property & salary dues).

v

vDebt up to Rs. 750 crore.

v

v late December, Mr Kannan Srinivasan, aprofessor of marketing at Carnegie MellonUniversitys Tepper School of Business, hadresigned from Subhikshas board and in early

January marketing consultant Rama Bijapurkar,who is also an alumnus of IIM-A like Subhiksha

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CRUX OF PROBLEM-

v

company expanded too rapidly on a smallequity base of Rs 250 crore and grew thebusiness, primarily through debt, to alevel of 1,600 stores and 15,000

employees, and Rs 2,300 crore in salesby March 2008.

v

vplanned to raise money from FIIs collapsedwhen the financial tsunami happened.

v

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.

SPECIAL THANKS TO-

Prof.JAVED SYED