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The retail business development along with telecommunication and financial services offered considerable growth potential. The company focused in mass marketing instead of niche marketing. The retailing of daily necessities such as food, clothing and health products. It followed a supermarket format for the retailing business. A detailed marketing research and survey helped the company to take crucial decisions. Difference between the old store and new store is shown in the table: (Insert the table.)
The reasons for the huge profitability of the new stores are: 1. The company targeted the middle class and upper middle class. It positioned the store as residential full service supermarket. It offered top brands in market across categories. 2. The site selection had minimum 6000 households. The appropriate policy for rental or lease worked. The company builds an image of value for money store by a 52 weeks continuous promotion program. Mega price offers were given to at least 2 SKUs every month. 3. Bright posters, large shelf talkers, bulk merchandising and floor displays would be used for attract consumers. In each shop floor 4-6 Customer care supervisors and 14-20 customer service representatives divided equally for two 8 hours shift. The suggestion with regard to the number of stores that food world should open when it becomes a profitable store are: 1. The company should give more emphasis on opening more type-A outlets as they are generating more revenues. 2. The company should expand its business to other parts of country. The company should increase number of outlets to at least five in its southern market (mostly Type-A & TypeB outlets) as form the data it is clearly visible that the company is generating more sales on new opening of outlets.
3. Should endeavor new retailing strategy i.e. cash and carry. The company should introduce online marketing for busy customers. The use of technology such as SAP .