Retail management : Oragnized vs unorganized retail comparative study
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Retail management : Organized vs unorganized retail comparative study Appolo pharmacy Vs sree balaji pharmacy
Transcript of Retail management : Oragnized vs unorganized retail comparative study
Apollo Pharmacy Vs Sri Balaji Medicals
Organized Vs Un-Organized : A Retail comparative study
Rishin Suresh | NMIMS | MPE08 | No : 20
Apollo SB *
Type of Retail Medicine- Specialty store15x10 storePart of $2.3b AHELStarted a year back
Medicine: Specialty store10x10 storeExisting from 1997
Location Next to Novotel , M’halli-Sarjapur ORR, Devarabisanahalli(Bellandur)
Behind Intel,Devarabisanahalli Village
* SB : Sri Balaji Medicals
Target Customers• Techies• Apartment residents, General population
(SEC A/B*)• Referred customers from nearby doctorsApollo
• General Population of nearby village• SEC B-, C,D,E . • Repeat customers for years.
SB
Product Mix• Wide range of medicines from a variety of
manufacturers. • Imported Medicines (On Demand) .• Apollo’s own medicines (pvt label)• A medium range of FMCG items • Surgical Instruments – Cross selling
Apollo
• Medicines mostly from single manufacturer.• Limited FMCG products• Ayurvedic products • Sim cards ! • Coin phone , weigh bridge SB
Pricing• Most of the items are on MRP• Noticeably low pricing on pvt labels (Apollo)
Apollo
• Some items on slightly above MRP• Mostly on MRP• Some Items such as steamer are sold at
relatively high price. • Ayurvedic products are sold slightly above
MRP SB
Promotions• Home Delivery of medicines for nearby apartments• Buy for 1250 & get summer kits• Buy1 Get1 on Baby care products • Offers of the month promo’s : Mostly new introductions• Additional 2% discount on hdfc credit cards • Loyalty programs, Free BP checkupsApollo
• Introduced on call delivery for nearby apartments• If a medicine is not available, people request the
shop owner for it and he gets it and informs the customer.
SB
Product Display• Neat store layout with Apollo color codes• Promotions & new intro products are displayed
separately• FMCG are kept on front Apollo
• Old model Tidy store, with glass door shelves .• Not very attractively kept /maintained• Ayurvedic medicines are kept separate• FMCG on front shelfSB
Service Level•Uniformed attendants x 2 , One store manager•Speaks English•Computerized. Every product is searched first in comp to find the location. If not available, will check and tell which store has it.
•No refund .•Complaint box is kept , + Hotline for complaints.•Customer care Number displayed . •Charges Rs2 for carry bag •Always gives formal bills
Apollo
• Owner & his daughter sits in shop• Speaks Hindi, Kannada , and Avg English• Medicine locations are in store owner’s mind. • No carry bag charges• No formal Bills • Will take back items for known customersSB
Competitive advantage• Educated staff• Part of large retail, always availablity of stock • Able to give discounts• a/c store – attracts IT and other office crowd + near by
apartment crowd. • Pvt label medicines sells on apollo brand• Doctor referrals
Apollo
• Local shop , repeat customers• Trustworthy• Connects with people quickly• Need not wait for management to get supply of
medicines. SB
Marketing & Branding• Flex boards near to the apartments around• Large hoarding on the Main road• Flyers with news papers citing the offers (mainly English
)• All carry bags are printed with Apollo pharma Logo • Ads in TV & News papers (With store locations)Apollo
• Small banner near the apartments next to it• Word of mouth • Errr … what ya mean by branding eh ? !
SB
SWOT Analysis
Famous brand
Mass retailer, Ability to give large discounts
Doctor referals
Integrated supply chain = Better RGM
Centralised Inventory system
Loyalty programs & Credit card offers
No ‘Local’ connect
Not very experienced staff
High real estate cost
High operational costs
Located strategically among offices, upcoming shopping centers and apartments
Can expand the FMCG products to cater above segment
Bus stop moving towards the close vicinicity
Staff quitting
More local stores may come up
near by
Super speciality hospital coming
up near by – with Medical store
attached
Apollo
SWOT Analysis
‘Local’ Connect
Knowledge of neighborhood
diseases
Repeat purchases Single store, not much can be done on -
Margins = no discounts
Lesser ability to attract new generation
Do not have stock on multiple manufaacturors
Many apartments coming around
Strong village crowd presence in the area
Growing presence of low income labors (Construction workers)
Apollo pharmacy
No doctor referrals (All goes
to apollo)
New hospital coming up with
attached medical store
Stockouts
SB
