Supermarket Retail Format

Stop-n-Shop Retail
Indian Retail Forum

IRF Rising Star Challenge
Team Name: NM BizWhiz
Sagar Gupta
Shubham Sinha
Thirumagan Arul
Stop-n-Shop Retail 1|Page

Stop-n-Shop Retail
Table of Contents
Executive Summary..3
Retail business chain overview5
Market Analysis & Customer segmentation9
Expansion strategies, Strategy & Implementation plan13
Competitive Analysis..37
Organization structure...57
Sourcing & Supply chain60
Operations Management...71
Financial Statements.86
References..91
Appendix A..92

Stop-n-Shop Retail
Executive Summary
The retail chain that we have selected follows the Supermarket retail format.
The key areas that we would focus over the years would be based on Service, Category
Expansion, Location and Pricing. The ways to achieve the goal of scale & profitability
would be:-
1. Queue Management Strategies: One of the biggest problems faced by the

supermarket is that the billing counters are too less in number to accommodate all
the customers. Due to space constraint it is also not possible to increase the billing
counters. Innovations in services such as self-billing through bar code scanning
machines would increase footfalls in the short term
2. Deviation from the existing loyalty cards prevalent in retail chains: Move away
from just being a point based reward system that relies on price discounts &
benchmark our services with the aviation industry by mapping factors such as
home delivery radius, on call orders, etc. with the level of purchase that a customer
does. Thus having a customised reward system
3. Complimentary Services: Services such as wending machines for beverages,

clean & ample washrooms etc. would also be a part of our service delivery
4. Categories: Expand the assortment in our destination category & enter into new
categories over the years to tap into the changing consumer needs. Restructuring
various retail arms of the parent group under a single parent would also help
synergize our costs & offerings by delivering complimentary services that are
seamlessly integrated with our brand image
5. Offerings:Introduction of monthly purchase baskets for various price points &

quantities to reduce the effort on the part of customers in picking up routine
categories items, promote private labels and enable higher cross selling

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6. Pricing: The focus of our strategy would be based on High-Low pricing with ranges
in premium segment also. There would be no shift towards EDLP pricing in the near
future.
7. Destination product: Fruits and Vegetables will be our destination products. The
strategy is to provide low price to these destination products. This low price can be
achieved by procuring directly from the farmer and eliminating the presence of
middleman from our supply chain.
8. HR System: HR system takes proper care of all the employees in terms of the work
culture, compensation and benefits. Employees are given proper training to ensure
that the core value of enhanced customer service is ingrained in each of them.
The above focus areas are a few key indicators of our growth strategy & various other
steps would be explained in detail in our business plan.

Stop-n-Shop Retail
Retail Business Chain Overview
The Group's foray into the retail sector began in December 2006 when it acquired
Trinethra, the chain of stores based in south India. May 2007 saw the launch of stores
called 'StopNShop.' Our vision is "to consistently provide the Indian consumer complete
and differentiated shopping experiences and be amongst India's top retailers while
delivering superior returns to all stakeholders"
Currently, there are over 575 supermarkets. All the supermarkets are branded
'StopNShop.' The company has over 11,000 employees and has a pan-India presence.
StopNShop supermarkets are neighbourhood stores with the core proposition of offering
value, convenience and trust to the customers and averaging 2,500 sq. ft. area. On May
2009 StopNShop introduced a value proposition for its supermarkets and encapsulated it
into a promise of giving its customers "Hamesha Extra" which has resonated with the
consumer. "Hamesha Extra" is the core essence of StopNShop. It means customers will
always feel that they have got something extra while shopping at StopNShop.
Within a short span of less than six years, StopNShop has StopNShop than one million
members as part of its loyalty programme. StopNShop has also launched a huge range of
private labels in food and grocery, staples and apparel which have already obtained a
significant share of category as well as salience with the consumer.
The year 2007, for organised retail has begun with a bang. Birlas, who were mulling over
their entry in multi format multi brand retail for quite some time, had finally arrived. The
Rs. 40,000 crore, Aditya Birla group, through unlisted Aditya Birla Retail, in a single stroke,
has acquired a bouquet of over 172 retail stores, operating in southern India, with
predominant presence in Andhra Pradesh, under popular brand
names of Trinethra and Fabmall. While most of the group stores operate under Trinethra
brand, stores located in Karnataka and Kerala operate under Fabmall brand, although,
50,000 sq. ft. big hypermarket in Mysore is known as Fabcity. Trinethra, prior to this
acquisition, was aggressively pursuing its plan to set up new stores in tier II cities such as
Mysore, Coimbatore and Tirupur in southern region of the

Stop-n-Shop Retail
country. Trinethra, which has adopted convenience and supermarket formats, is focused
on selling food and groceries in residential areas, although some of the stores also offer
pharmaceutical products. Trinethra also offers value-added services like forex remittances
and bill payments. A typical Trinethra store ad measures around2,500 sq.ft. in retail space.
The chain of stores are serviced by an infrastructure of central warehouses in Andhra,
Karnataka, Tamil nadu and Kerala, with a space of about 50,000 sq ft each Aditya Birla
Retail Limited re-brands its Fabmall grocery supermarkets to StopNShop.
A name reflective of its commitment to offering consumers a StopNShop fulfilling retail

experience. The re-branding follows the acquisition of the Trinethra Super Retail that
includes the retail brands Fabmall, Trinethra and FabCity by Aditya Birla Retail in January
2007.
The two decades old, Rs. 250 crore, 2,500 employees strong, Hyderabad based,Trinethra
group, originally was founded by Mr Anjaneyulu Kakkera.
Aditya Birla Retail Limited is the retail arm of Aditya Birla Group , a USD 28 billion
Corporation. The Company ventured into food and grocery retail sector in 2007 with the
acquisition of a south based supermarket chain. Subsequently Aditya Birla Retail Ltd.
expanded its presence across the country under the brand "StopNShop" supermarket
format
Supermarket StopNShop for you - Conveniently located in neighbourhoods, StopNShop

supermarkets cater to the daily, weekly and monthly shopping needs of consumers. The
product offerings include a wide range of fresh fruits & vegetables, groceries, personal
care, home care, general merchandise & a basic range of apparels. Currently, there are
over 600 StopNShop supermarkets across the country.
Own label Food Brands:-
Feasters, Kitchen's Promise, and Best of India
Home & Personal care brands:-
Enriche, 110%, Pestex, Paradise, and Germex

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With a vision is to be among the leading retail players in India, Aditya Birla Retail
launched its first supermarket, StopNShop for you in May, 2007. Since its launch, the
StopNShop for you has an aggressive roll out, reaching a total count of over 600 stores
across India today.
StopNShop for you is your neighbourhood supermarket which takes care of your
everyday household needs and StopNShop Spread across a wide range of products of
food and non-food items, ranging from basic necessities such as, fruits and vegetables,
staples, personal care, home care, household care products, general merchandise, and
dairy products, StopNShop for you provide a one stop solution for your grocery shopping
needs. Also in store are essentials such as, innerwear, kids essentials, and a pharmacy,
bakery and a mobile store. With a range of over 4,000 products, we are able to fulfil your
daily shopping needs all under one roof, at a convenient location close to you.The
StopNShop for you promises a world class shopping experience, with a modern store
layout, easy to shop with friendly staff at hand to provide assistance, electronic billing
facilities and a colourful ambience. At StopNShop for you we offer branded food
and grocery products sourced from the leading brands from all over India, along with
private label brands from our own portfolio - available in a broad selection for you, always
giving you the best possible value for your money.
PRESENT STATUS OF THE ORGANISATION
ADITYA BIRLA RETAIL LTD is having 650 STOPNSHOP store all over INDIA. Pune was
the first place where first store was opened.350 stores are in SOUTH and 300 are in
REST OF INDIA. Karnataka is having 104 stores in which BANGALORE is having 64
stores. StopNShop for you is committed to deliver quality & value to our customers and
have a range of private label brands as well as commercially branded products, offering -
100% satisfaction on the quality of the products & services offered. StopNShop for you
hosts a range of private label brands across various categories that follow stringent quality
norms, and are available in attractive prices and packaging. Our premium products give
you the opportunity to enjoy the difference and quality that is equal to or better than the
market's leading brands, but at competitive prices. Recently our private label brands

Stop-n-Shop Retail
received the coveted "The Most Admired Private Label" Golden Spoon award at the
Food Forum India.
StopNShop for you offer a wide range of assortment of over 4000 products, ranging from
fresh food to beverages, grocery to household care products. There range covers
everything, from day-to-day essentials to traditional favourites, from delicious treats, to
healthy alternatives. To ensure the freshest supply of fruits and vegetables for you, they
have built direct linkages with the farmers for daily supplies of farm fresh produce.
Our stores are built with a modern and comfortable ambience, air conditioned and with
speedy automated cashiering to help you shop better. They also have friendly in-store
policies on exchange and returns that help you shop with ease and comfort .Further
StopNShop, to make shopping experience StopNShop rewarding with them, at
StopNShop for you they offer a membership program ClubStopNShop which reinforces
our commitment to consistently add value to your shopping experience, and also to thank
you for choosing to be a part of StopNShop for you. As a ClubStopNShop member, you
are entitled to special benefits, besides the regular offers and promotions at StopNShop
for you. ClubStopNShop members will also have the benefit of receiving exclusive SMS
alerts for special offers on our products and services. Currently ClubStopNShop has over
1 million members enrolled for its loyalty program.

Stop-n-Shop Retail
Market analysis & Customer Segmentation
The Indian retail industry has been thrown open to foreign majors and is packed with
players who strive to offer great products and value-for-money to Indian consumers. The
country holds vast promise for retailers with its burgeoning spending power and rising
middle class.
The US$ 500 billion market, growing at an annual rate of about 20 per cent, is largely
dominated by small shops and stores as of now. The organised segment is in its nascent
stage and has huge potential to harness in the sub-continent. Foreign giants like Wal-mart
and IKEA have recently received the Governments nod to enter the Indian market, after
making all the necessary compliances.
Market Size
Indias retail market is majorly dominated by the unorganised sector. Organised

segment accounts for 8 per cent of the total retail landscape, according to a study
by Booz & Co and RAI.
The Indian retail industry has expanded by 10.6 per cent between 2010 and 2012
and is expected to increase to US$ 750-850 billion by 2015, according to another
report by Deloitte. Food and Grocery is the largest category within the retail sector
with 60 per cent share followed by Apparel and Mobile segment.
The foreign direct investment (FDI) inflows in single-brand retail trading during April
2000 to December 2012 stood at US$ 95.36 million, as per the data released by
Department of Industrial Policy and Promotion (DIPP).
Major Retailers in India

Stop-n-Shop Retail
Pantaloon: Pantaloon is one of the biggest retailers in India with more than 450 stores
across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space
located across the country. It is growing at an enviable pace and is expected to reach 30
million sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket
'Big Bazaar'. It has the following retail segments:
Food & Grocery

Home Solutions
Consumer Electronics
Shoes
Books, Music & Gifts
Health & Beauty Care
E-tailing
Entertainment
Tata Group: Tata group is another major player in Indian

retail industry with its subsidiary Trent, which operates
Westside and Star India Bazaar. Established in 1998, it also
acquired the largest book and music retailer in India
'Landmark' in 2005. Trent owns over 4 lac sq. ft retail space
across the country.
RPG Group: RPG Group is one of the earlier entrants in the
Indian retail market, when it came into food and grocery
retailing in 1996 with its retail Food world stores. Later it
also opened the pharmacy and beauty care outlets 'Health and
Glow'.
Reliance Group: Reliance is one of the biggest players in
Indian retail industry. More than 300 Reliance Fresh stores
and Reliance Mart are quite popular in the Indian retail
market. It is expecting its sales to reach Rs.9O, 000 crores by
2010.
AV Birla Group: AV Birla Group has a strong presence in
Indian apparel retailing. The brands like Louis Phillipe, Allen
Solly, Van Heusen and Peter England are quite popular. It is
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also investing in other segments of retail. It will invest Rs.
8000-9000 crores by 2010.
Online Retail
Internet is the buzzword in India these days. People have online access 24x7 through their
laptops, iPads and mobile phones. As a result they have continued access to online retail
markets as well.
Online retailers are emerging as important sales channels for consumer brands in India as
more and more people, especially the young generation, are shopping online. From
apparel to accessories, kids and infants product lines and almost everything under-the-
sun is available on the net these days. Apparel and accessory brands, such as Puma,
Nike and Wrangler, have recorded a big increment in online sales in 2012, led largely by
purchases from smaller towns and cities with consumers paying the full price for these
products.
For instance, footwear brand Nike has tie-ups only with online retailers such as Myntra
and Jabong. And in a very unique initiative, it recently launched its new range of cricket
gear on Jabong. Such partnerships turn out to be very successful as online retailers
provide greater visibility than a physical store. "Our online store can carry around 10,000
options, while an offline store can carry only 20 per cent of a given range," said an official.
Online retail in India is projected to grow to US$ 76 billion by 2021, accounting for over 5
per cent of the Indian retail industry, according to a report by advisory services firm
Technopak. This forecast is encouraging more companies- big and small- to sell
aggressively online. Experts believe that much of this growth will come from the rising
purchasing power of consumers in smaller cities, who do not have access to brick-and-
mortar stores stocking high-end brands.
The overall Indian retail sector is expected to grow 9 per cent in 2012-16, with organised
retail growing at 24 per cent or three times the pace of traditional retail (which is expected
to expand at 8 per cent), according to the report by Booz & Co and RAI.
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Deloitte also seconds this forecast and expects that organised retail, which constitutes
eight per cent of the total retail market, will gain a higher share in the growing pie of the
retail market in India. Various estimates put the share of organised retail as 20 per cent by
2020.
Customer Segmentation
Stop and Shop supermarket will target two kinds of customers. They are -
Convenience Shoppers
The customer segment that Stop and Shop will target is Convenience Shoppers. These
are the customers who are ready to pay more for a better ambience and convenient
shopping experience. The presence of self operated barcode scanning device will reduce
the amount of time the customer needs to stand in the queue. The presence of wending
machines ensures that the customers do not get exhausted midway between their
shopping. The presence of monthly basket ensures that the customer need not spend time
in purchasing each of these components individually. These features are introduced in our
supermarket to target the convenience shoppers.
Techno Consumers
The other customer segment that Stop and Shop will target is Techno Consumers..
Technology has transformed the way the customers purchase. Online shopping has taken
a great leap forward. Our customer is no longer someone visiting the supermarket for
purchase, they are now on the Web. To tap these customers we provide the customers an
option of ordering the products online. This will ensure that they will be able to purchase
products without even visiting the store. All that the customer needs to do is enter the site,
order the products and get it delivered at their doorstep.
Stop-n-Shop Retail
Expansion strategies, Strategy & Implementation plan
1. Wrong Locations + High Rentals

Capex -> Setup retail store network across the country
The most persistent problem plaguing Indias retail space is the dual whammy of wrong
location selection & high rentals. Managing the supermarket chain, we would focus on
resolving this conundrum.
Selection of City
The city selection would be done on the basis of fixed parameters & not for just frenzy
expansion. The parameters we have selected for Town entry (based on RK Swamy BBDO
data) are:-
Market Potential Value (MPV) This is a measure of aggregate potential. Thus it would
be a function of:-
a. the number of consumers that the town has (i.e its population)
b. the means that these consumers have
c. their demonstrated consumption behaviour
d. their awareness levels a composite of exposure to media and extent of female
literacy
e. The extent of market support that exists.
Market Intensity Index (MII) This is a measure of the quality and affluence of the
consumers and markets.
Media Exposure Index (MEI) This is a measure of Mass Media availability by individual
mass media.
Selection of Location
Stop-n-Shop Retail
The location selection would be done on the basis of cluster planning & taking into
consideration the following parameters:-
a. Understanding the selected city & the new magnets of population growth
b. Mapping out the transportation facilities emerging BRTS, MMTS, ORR
c. Map the high growth magnet areas
d. Identify the potential stretches for our stores:
a) APEX Locations (Immediate Requirement)
b) APEX + (2-3 Year Expansion Plan)
e. Transportation Links, Work-Home direction of road, traffic flow & management,
property specific requirement.
The above aspects would take care of the location front. For managing rentals, the
following criterias need to be ensured:-
a. No lock in period
b. 3 months notice period (only from our side)
c. 6 months rental deposit
d. 4 % increment in rental/year
e. 15 year lease minimum.
f. LL scope of work.
g. Power to be given by LL.
h. 30 days rent free period.
i. Specifications Sheet annexure.
j. Size and location of GSB
The only CAPEX for our business would be to setup retail store network across the
country & expand to approx. 1500 stores by 2023 from current 509 stores.
2. Increase productivity, decrease costs & sizing the company right
We propose several new paradigms, which challenge these ways of doing business:
a. De-emphasize management-centric intellect and provide sequence intellect, in favour

of inside-out production and provider exposure. Make simpler execution by focusing
upon real-time production intellect with device-agnostic and platform-agnostic
appliances, which both rates of speed execution and pushes down its costs;
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b. Real-time production and provider intellect can satisfy the ideal specifications of
control, the exposure specifications of the provide sequence, and the ideal
specifications of the shop floor;
c. Treat provide sequence exposure less as customer-supplier connections, than as
partner connections in an open cycle.
The benefits both within a four-walls function and across the supply sequence are
several, including
a. Instantly workable computerized information nourishes, compared to complicated

confirming structures;
b. Real-time store ground to store ground collaboration;
c. Immediate research of approximated a chance to complete production;
d. Immediate notice of provider delays;
e. Shortening decision latency in production;
f. Proactively handling and improving employees interdependencies;
g. Real-time quality of manufacturing change orders;
h. Remote and local exposure of manufacturing production;
i. Integrated mobile smartphone access dashboards for at anytime, anywhere real-
time visibility;
j. A highly-scalable standards-based manufacturing functions system.
At the heart of all of these benefits is real-time Manufacturing Intelligence (MI). Following
are some ways that real-time MI improves management, on-time delivery, quality and
throughput, revenue growth, and drives down costs.
Automated data capture: - An oft-used phrase in lean manufacturing is Drill, baby, drill,
meaning that a drill press operator who is not drillingand is instead performing some
manual data entry, or giving a status to a manageris neither creating value for
customers nor generating revenue. If real-time visibility is dependent upon human
intervention, then, real-time visibility is simply impossible.
Automated data capture enables the shop floor to work uninterrupted. In our case both the
top floor and logistics operations are integrated with the shop floor.
Stop-n-Shop Retail
The company sought the lean ideal of a linear configuration, with work flowing quickly from
one cell to the next, without delay. Automated data capture would enable the company to
keep its existing, well-working configuration, while removing the burdens of
a. Manual data entry

b. Manual status checking
c. Delayed response to bottlenecks and at-risk orders
& thus increasing productivity while decreasing costs & helps to size the company right.
Based on research by the Aberdeen Group, real-time operational visibility has already
delivered following tangible results at a minimal TCO:
a. 27% increase in yield

b. 20-30% reduction in inventory
c. 34% improvement in cycle time
d. 6% improvement in on-time delivery
Predictive metrics: - Real-time data is useful for real-time management. Predictive data
is useful for managing company strategies and objectives, hence, the demand, from best-
in-class companies for forecasting software applications and what-if scheduling in ERP
and MES applications.
It is our belief that forecasting and predictive analytics are no longer specialty applications
with nice-to-know information; real-time manufacturing intelligence enables a company to
manage using realistic what-if projections running weeks or months down the road.
Forecasting and MES applications typically schedule reports, or create reports on

demand; to be truly useful, forward-looking views must sit on the desktop, and be ever-
changing with the input of real-time data. Three down-the-road parameters that will
change constantly, given what happens today, are
a. order completion forecast

b. bottleneck identification
c. Revenue projection
Intra-enterprise collaboration: - The classic four-wall operation is on the decline. Even

a self-contained company may have multi-site and global operations, thus involves an
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extended supply chain in and of itself. Consider our company which would be in retail
sector, which has a rich supplier network, but also employs thousands of people across
India and in other countries after expansion; and which is headquartered in Mumbai, but
has its most significant production operation maybe in Delhi, and more operations in
Bangalore/Hyderabad.
Such a company requires rich collaboration capabilities; an understanding of product

demand and delivery schedules among its partners, and among its own multi-site
operations.
We will migrate to what we call network-enabled manufacturing, which provides visibility

across our distributed enterprise. This is a move from centralized computing to a
distributed enterprise architecture, as both StopNShop and its suppliers require WIP
visibility from shop floors. We will conduct a pilot in a simulated supplier network using
RFID for real-time data capture.
The solution and deployment methodology provided a fast and cost-effective means to
deploy next-generation architecture for distributed real-time operational performance. The
edge IT architecture on the StopNShop greatly simplified the integration of
a. business intelligence
b. workflow service creation and deployment
c. device integration
d. event processing engine
e. wired and wireless network support on the shop floor
f. shop floor-to-top floor service and data integration
Predictive and proactive supply chain operations: - Predictive Metrics enables a

company to see an ever-changing picture of order status, weeks down the road. That is a
closed-loop use; this same predictive/proactive capability exists for its open-loop supply
chain.
Outsourcing has shifted the management of excess capacity to the supplier, but
disruptions in the supply chain immediately impact manufacturing operations and the
ability to deliver on time. Service Level Agreements (SLAs) are in place to define expected
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services, priorities, responsibilities, and penalties. But the lack of proper objective
measurement and reporting tools makes companies hesitant to jeopardize their product
quality and manufacturing cycles.
Manufacturers often play both supplier and customer roles in complex supply chain
networks. Reducing costs and improving manufacturing operations are key business
objectives, but a manufacturers ability to reduce risk with its suppliers and to improve on-
time delivery with its customers is an imperative that will determine success or failure into
the future.
The procurement manager can monitor the status of customer orders placed with the
companys suppliers. Any deviation from the agreed delivery schedule is highlighted and
can be reviewed with the suppliers as quickly as possible.
Real-time supplier intelligence benefits in several ways:
a. PrioritizationCustomers place orders based upon supplier catalogue lead times.

Suppliers schedule production based upon manufacturing cycle times. In
aerospace manufacturing, both of these times can be quite long, so frequently one
party or the other will be trying to move delivery dates, which requires
reprioritization. Using the fact-based information, these decisions can be made
factually with a mutual understanding of the consequences.
b. Coordination / synchronizationthe negotiation of delivery dates is often
contentious with each side trying to secure the greatest hedge for its company. The
ability to coordinate orders and delivery in a fact-based discussion reduces
uncertainty on both sides, leading to maximum efficiency for customer and supplier.
c. Safety stockCompanies on both sides of the selling transaction hedge against
the others actions. The supplier publishes catalogue lead times significantly longer
than true manufacturing times to protect itself from order changes by the customer.
We carry incremental safety stock to protect itself from a supplier delivery default.
Uncertainty has a price for both. As the collaboration resolves some of that
certainty and decisions are made based upon fact, both parties become more
efficient. We can reduce safety stock and the seller shortens catalogue lead
timesfurther reducing buyer safety stock requirements.
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Real-time visibility from the shop floor: -
With the problem of real-time data capture solved, a company can use real-time
manufacturing intelligence for hands-on management.
Data is of course useless by itselfit requires filtering and intelligence, hence, the
demand for middleware applications, manufacturing execution systems (MES), and
business intelligence (BI) applications. Yet, implementing three or more applications to
make sense of data is more stifling than useful.
The key to all enterprise visibility is real-time manufacturing intelligence; from real-time
manufacturing intelligence can be derived such answers as
a. Which orders are at risk of late delivery?

b. When can a customer expect a given order to ship?
c. Where is the current bottleneck in a given process?
And so on.
3. Inability to forecast sales volume in line with the rentals for each store
Measure and analyse the Same Store Sales parameter to compare revenues earned by
our chain's established outlets over a certain time period, such as a fiscal quarter or on a
seasonal basis, for the current period and the same period in the past (usually the same
period of the previous year.) Same-store sales would allow us to differentiate between
revenue growth that comes from any new outlets and growth that is a result of improved
management and operations at the existing outlets.
The inability also leads to issues with respect to supply chain, working capital, etc. Thus
capturing parameters such as Same Store Sales & employing advance forecasting
techniques would help resolve this issue & convert it into an advantage.
4. Acquisition of smaller chains to gain retail space
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Acquisition of ailing retail chains such as Trinethra & Subhiksha(earlier) would help
StopNShop gain access to sq fts of retail space without heavy capital expenditure.
5. Flow Through distribution centre
Flow through Distribution provides a means to accelerate products through the supply
chain and better respond to point-of-sales data. Traditional warehouses designed to house
inventory can be replaced by much large and more technologically sophisticated
distribution centres that work towards maintaining a just-in-time inventory in stores and
making the goods shelf ready.
There are four main activities generally included under the broad heading of flow through.
They are:
Vendor consolidation: consolidate purchase orders from multiple suppliers going to a

single distribution center. By consolidating vendor purchases, the company benefits from
greater buying power, which usually means an improved pricing structure. For us, vendor
consolidation would mean a reduced-inventory strategy. This means that for non-seasonal
SKUs, we can cost effectively replenish distribution centers with smaller order quantities
on a more frequent basis throughout the year.
Pool distribution: a truckload of product from a distribution center is sorted into individual
orders for delivery. This increases throughput at the distribution center. Inbound pallets
are unloaded and staged for outbound delivery, often times combining pallets from several
vendors to create a full truckload.
Import deconsolidation: similar to consolidation, with import deconsolidation the product

flow originates at the port and goes to a distribution center. Rather than make distribution
decisions at the country of origin, this process allows the company to wait until the product
reaches the port to determine its ultimate destination.
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As a result, we can be more flexible and can allocate distribution based on need and
timing. We can allocate to a seasonal warehouse, distribution center, pool point or directly
to individual stores.
Flow through order fulfilment: product arrives from vendors in bulk at a flow through
center where it is then allocated to orders. We benefit by avoiding the need to maintain
high inventory levels at the local store.
6. Surveys to differentiate stores from each store
Conduct surveys in the catchments where our store need to be opened to assess the
demand for various goods so that we can stock them accordingly. Taking example of a
survey that we conducted in Mumbai for two catchment areas, below are the findings:-
a. Juhu/JVPD: - Juhu is a catchment area with predominantly cosmopolitan

crowd. On surveying the primary need of the target audience in this region it
came to light that there is more demand of no-vegetarian foods & bakery
products in day to day need category.
b. Ghatkopar: - It is basically an area that has huge population of Marathis &
taking this into consideration the survey showed higher pick-ups of items such
as Puja flowers, rice, produce such as fruits & vegetables than the store in Juhu.
Similar surveys can be carried out for different catchments in different locations to decide
on the SKUs that are fast moving & SKUs that are slow moving. This would also help us to
arrive at an optimum order quantity & delivery schedule, thus reducing the capital
employed in products.
7. Project Samadhaan
Under the Samadhaan project, the focus of StopNShop would be to offer distinguished
services so break out of the low price clutter. The steps that we would take are:-
a. Grinders: - Grinders installed at the groceries floor to facilitate grinding of wheat,

soya, ragi etc. & help to make multi grain Atta. The charges applicable would be
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just for recovering the costs & not as a profit centre. Thus it would be a crowd puller
for the stores.
b. Cutters: - Installation of vegetable cutters in metropolitan areas outlets where
cutting of vegetables like jackfruit is an issue, such a service would be a great
game changer.
c. Utility Desk: - Desks such as Bangalore One would help shoppers with payment of
utility bills & serve StopNShop as a one stop destination for all their house needs.
8. Edge in apparel
Apparels are a high margin business & StopNShop have an edge in apparels due
to our in house clothing unit Madhuri Fashion & lifestyle. Fashion & retail accounts
for around 10% of groups total revenue & which we plan to increase to 45% over
the course of 10years to earn better margins.
9. Private labels
The organised Indian retail industry has begun experiencing an increased level of activity
in the private label space. Private label strategy is likely to play a dominant role as its
share in the US and the UK markets is 19 per cent and 39 per cent, respectively while its
share in India is just 6 per cent
With the expansion in Tier II & III cities, housing of a higher number of private labels
would become imperative as there is huge demand for private labels in such cities & also
there is higher brand penetration & higher margins comparatively. StopNShop has private
labels in approximately 40 product categories which we plan to increase to 100 product
categories over the years & through back end infrastructure development.
10. Extension into cash & carry

With the policy of 100% FDI in wholesale retail business, an extension into Cash &
Carry would be our other horizontal expansion plan. Cash & Carry arm would cater
to over 12 million small grocery stores that are continuously expanding.
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11. Backend infra
Development of backend infra:-
a. F & V sorting centres

b. Regional Procurement Centres (RPC) for staples
c. Distribution Centres (DCs):- we will strengthen the distribution centres of our retail
stores which helped it get fill rates of 80 per cent compared to 55 to 60 per cent
earlier. Fill rate refers to rate which goods are supplied as against the order placed.
d. Farm collection centres
e. Option of contract farming for sourcing of fruits & vegetables
f. Indias price competitiveness attracts large retail players to use it as a sourcing
base
g. Global retailers such as Walmart, GAP, Tesco and JC Penney are increasing their
sourcing from India and are moving from third-party buying offices to establishing
their own wholly-owned/wholly-managed sourcing and buying offices
12. MSS: - My Shop Experience would be an activity under which every back office
employee would have to be on the shop floor at least once a year.
Also, dedicating a Facebook page for the shoppers to post their both good & bad
experiences would help the management resolve issues with specific stores & reward
the ones with better customer experience.
13. Online Presence
Most of the retail chains today have minuscule online presence with most of the SKUs not
available. Online presence requires least level of investment & through presence of brick
& mortar outlets in major cities, we can couple the physical & virtual presence & thus
increase the offtake from a store through both mediums. Having a website & product
listing & availability are just the tip of the iceberg. We would also need a robust marketing
campaign to attract customers from ecommerce players dealing in cross-over
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merchandise like appliances, apparels etc. The plan to be put in place would be as
follows:-
Methodology of carrying out Internet marketing
Based on our analysis of typical retail websites, this is where the visitors could come from
on a fully executing website:
Factors
% of
Source of traffic influencing
visitors
success
Offline
Direct URL entry popularity of
(e.g. type in brand; PR;
10-15%
www.yourshop.com catalogues;
or bookmarks) retail
presence
Search engines See
overall (organic & 50-75% breakdown
paid) below
Brand related Offline
searches (e.g. type strength of
15-25%
in Google Your brand (PR,
Shop Name) catalogues,
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retail)
Visitors from
SEO
organic search
effectiveness
results (generic 10-30%
(content and
terms and specific
no. links)
products)
Visitors from paid PPC
search (brand, effectiveness
20-50%
generic terms & (spend &
specific products) relevance)
Size of
database,
Email marketing 10-30% frequency &
quality of
emails
No. of
affiliates. %
Affiliate offered, site
5-15%
marketing conversion &
network
management
Number
Referrals from
10-15% and quality of
other websites
links
Of all the above sources of traffic, the only source over which a firm can have direct and
immediate control is paid search (PPC).
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Analysis of sources of traffic and understanding the factors influencing them
1) Direct traffic (to this we would add brand related traffic)
These are the people who type in the URL or the name of the brand into Google. Getting
folk to do this is a function of offline rating or marketing activity or in store experience. For
example, an advertisement in the Sunday supplements can motivate a lot of people to
search for the offers on our site rather than directly visiting the stores. Or a catalogue
drop. Or indeed, word of mouth.
2) Search engine optimization (SEO)
SEO is often seen as the holy grail of website traffic and the ultimate determinant of
success. It is also, unfortunately, the subject of many myths, a lot of hot air and is seen by
brand owners as a black art.
This is not the case.
The key to success is simple: one, make sure that the website has the right words in the
right places, then two, ensure that a lot of other websites link to it.
For each product category and/or product, set out a list of words lets call them
keywords that the customers using Google would use to find those products and
product categories. These are everyday terms that we would, for example, use in a pub,
as opposed to honeyed marketing prose and superlatives. This task is not the subject of
clever research (although we can supplement our efforts by a little cross-checking) and
professional insight. Then put these words in those places that Google likes: page titles,
body copy (lots of it), internal link text, URLs, page headers, image names and description
meta tags. Magento has good tools for editing this information either generically or page
by page.
We also probably need lots of extra content on the site a blog should do this quite nicely,
making it a tool to engage with fellow bloggers on a personal basis. This would also help
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extend moments of truth in store & during online shopping & spread them to other fellow
shoppers.
Next, get people to link to the website. Beg, steal and borrow. If we know 10 or so people
with their own websites swap links. Send out press releases online. Swap links with
fellow bloggers.
3) Pay Per Click advertising (PPC)
Unfortunately, paid search/PPC (what Google calls Adwords) is the only solid, predictable
way of generating traffic fast.
Apart from email broadcasts to a committed customer database PPC works on, literally, a
pay per click basis. The average of cost of a click over a campaign can be Rs.11 (approx.)
and the average retail sales return is between 6 and 8 times the spending on PPC.
A further approach to advertising is the use of banners on other sites: The banner will be
displayed on important destination websites. The fee for this is usually cost per
impressions (i.e. number of times seen). Visitors would then click through to the site.
Its very similar to conventional advertising. Not many Screen Pages clients use this
method of customer acquisition.
4) Affiliate marketing
Affiliates are third party websites which capture traffic and send it our way for a small cut.
They acquire internet traffic using PPC, SEO and other methods. These visitors are
tagged and referred to our site. If a sale is made, we have to pay a pre-agreed %
(typically 10% or similar) to the affiliate. Affiliates are motivated by two variables: the %
referral fee, average order value and the site conversion ratio.
We will need to fund development of data feeds from our product database, which
automate the process of including product formation, images and links in affiliate websites.
In addition, we will need to allow for the design and production of marketing collateral
(banners, newsletters) for our affiliate scheme as well as the implementation of specific
reporting and analysis tools.
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The site should already handle the tracking of affiliates (via Google Analytics) so that we
can see sales through affiliates. We will also be provided with reports from the affiliate
network.
5) Email marketing
The direct marketers most powerful and cost-effective tool is email marketing. We should
build up the email database at the earliest, as it is the single most cost-effective repeat
marketing activity. It generally converts at twice the rate, as these are the loyal customers
returning.
Heres a checklist of what we need to manage when it comes to email marketing:
Messages, promotions and content

List management (opt-ins, opt-outs)
Email template and customised design
Broadcasting
Bounce-backs (undelivered, unknown)
Success reporting (open, click and sale metrics)
Tracking
A/B testing (content, messages etc)
Our advice is to send at least one email per month. We can expect click through rates of
between 10-30% depending on the content and offer and apply a higher conversion
ratio than normal (nearly double on average) as these are returning buying customers.
Emails are generally not recommended for new customer acquisition, although list swaps
with known brands (provided we have the opt-ins) can work quite well.
6) Social Media
Facebook, Twitter, Youtube and friends all get a disproportionate level of interest for
online marketers. The fact is that a tiny percentage of the traffic and sales will come from
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these new channels: fortunately, we can spend a proportionate amount of time (and even
less money) on them.
Heres what we should do:
- Invite friends, share and engage with them. Dont do sales pitches, just talk to people.
- Create a Facebook product page (http://www.facebook.com/pages/stopnshop.php) for
the brand. Do the same. Populate it automatically from the blog.
- Create a Twitter account, customise it and start tweeting. Make it interesting (not a
sales pitch)
Follow lots of relevant people, publications and brands. Retweet their material.
- Take videos and put them on the Youtube page. Post them on Facebook and Twitter
(and the blog).
14. Economies of Scale
The various sources of Economies of Scale would be: -
a. Commercial Economical systems of Scale
These occur when you buy and sell material, items and services in bigger amounts. You
may do so through large buys, as in our earlier example. Other illustrations of better
buying consist of enhancing delivery prices because more items are shifted with each
delivery. They also consist of using more effective stock control methods, such as just-in-
time stock control, to reduce regular device expenses.
You may also see, for example, promotion economies of range, where the set expenses of
creating ads are distribute over bigger numbers of potential customers.
b. Technical Economical systems of Scale
These outcome when you create elements of the development procedure more effective.
If you're generating sufficiently large of items, it may be worth reconfiguring devices,
buying new devices, using better technological innovation, and enhancing capacity. The
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bigger the volume of items you create, the more you can spend to create the development
procedure more effective, and the more cost-effectively you can create each personal
product.
Large, modern features that improve manufacturing can reduce device expenses, despite
the preliminary financial commitment investment that's needed. This is because set
manufacturing expenses (such as power, rent, and fuel) are distribute over more models
so the common price of each device is reduced.
Capital-intensive sectors must use specialized economies of range to be successful.

Building only 100 vehicles per year would outcome in huge set expenses distribute over
very few models and it would be difficult, if not impossible, for sales to balance out those
expenses.
c. Managerial Economical systems of Scale
Similarly, the bigger the number of models produced, and the more models you can
distribute staff expenses over, the more you can spend money on professional skills.
Choosing a finance or customer support administrator might seem expensive at first.
However, professional supervisors can enhance top quality and increase manufacturing
using the same quantity of information. Therefore, greater perform can often be more than
balanced out by enhanced efficiency and top quality.
Specialized perform can also lead to increased performance. Individuals who do the same
procedure continuously tend to do it quicker than those who do the procedure only
sometimes. Therefore, if you split perform into small steps, you may considerably enhance
performance. In our gadget example, if you use specific perform for each stage of perform,
rather than general perform for the entire device, you may reduce total perform to 20
minutes per device.
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d. Financial Economical systems of Scale
Financing a bigger quantity usually leads to a cheaper of credit. For example, home loan
prices are generally reduced than professional loaning prices for vehicles. Also, bigger
organizations have more resources to use as security, so the interest levels they pay are
usually reduced. And bigger organizations can typically raise value funding more easily
than small organizations. The maintenance expenses of this type of funding are
considerably reduced than credit from financial institutions or other banking organizations.
e. Risk-Bearing Economical systems of Scale
The more an organization diversifies its activities, the less overall threat it represents in
any one field. Making a wide range of items, and working in many geographical places,
are ways to distribute threat, but they also need a significant wind turbine. Large-scale
development and variation strategies can pay off by taking a long-term viewpoint and
using economies of range. Growing the chance of research and development expenses is
another benefit for huge companies.
f. External Economic systems of Scale
The economies of range mentioned above are all internal. They each connect with how an
personal organization functions. But there are also exterior economies of range that
impact an market as a whole. A organization may gain advantages due to what's occurring
in the market and exterior environment. Here are some common examples:
a. Industry development may allow access to professional or lower-cost

providers.
b. Low requirement and huge supply may bring down the price of
supplies.
c. Where many similar organizations are working in the same area, this
may mean that there are many, pre-trained those who can be
enrolled.
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d. Industry facilities may already be in place to support development.

e. Training features may be available.
f. A good transport network may be available.
g. Improved technological innovation may drive down all expenses.
h. External factors can also create drawbacks. For example, as more
organizations move into a location, leases may rise, lack of
employment prices may drop, and workers may requirement greater
income.
Product Categories
Grocery
Edible Grocery Non-Edible Grocery Dairy Products
Baby Food Cigarettes/Tobacco products Cheese
Beverages Alcoholic Diapers Cottage cheese
Beverages Carbonated Household Cleaners Dips/Sour cream
Bottled Water Household Supplies Dough products
Candy Paper Products Eggs
Cereal/Breakfast food Pet food/Cat litter Margarine/Butter
Coffee Sanitary napkins Milk/Dairy drinks
Soaps/Detergents/Laundary
Commercial Bread Suppl Yogurts/Puddings
Condiments/Sauces Miscellaneous
Cookies/Crackers
Desserts
Flour
Jams/Jellis/Spreads
Juices/Drinks
Meat,Canned
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Milk,Canned/Powdered
Oils/Shortening
Pickles/Relishes/Olives
Salt/Seasonings/Spices
Snacks
Soup
Sugar
Syrup/Molasses
Tea
General Health & Beauty Meat/Sea

Frozen Foods Merchandize Care Bakery Food
Baked goods Automotive Acne preps Bagels Poultry
Fruit Baby accessories Allergy/sinus preps Bread Lamb
Ice cream/dairy
products Batteries Antacids/analgesics Cakes Sausage
Pot Pies Cake decorations Baby products Cookies Seafood
Service
Prepared foods Coffee filters Bath preps Doughnuts meat
Vegetables Hair accessories Cosmetics Fresh rolls/buns/croissants
Hardware Cough and Cold Muffins
Creams and
Hosiery Lotions Pastry/Danish
Household items Deodorants Pies
Insect/Rodent
Control Diet aids Snacks/cupcakes/brownies
Lightbulbs Eye care
Mops & Brooms Family planning
Pet Supplies Feminine hygiene
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Photo needs First aid

Reading material Foot care
Stationary/Greeting
cards Hair Care
Incontinence
Toys/Video games products
Videotapes/CDs Laxatives
Florals Lip preps
Utensils Oral Hygiene
Luggage Shaving needs
Miscellaneous Sleep aids
Vitamins
Produce
Vegetables Fruits Other Produce
Artichokes Apples Candy
Asparagus Apricots Dried fruit, prunes
Beans Avocados Dried fruit, raisins
Broccoli Bananas Dried fruit, other
Brussel sprouts Blueberries Nuts
Cabbage Cherries Popcorn
Carrots Grapefruit Miscellaneous
Cauliflower Grapes
Celery Kiwi
Corn Lemons/limes
Cucumbers Melon
Eggplant Nectarines
Kale Oranges
Lettuce Peaches
Mushrooms Pears
Okra Pineapple
Onions Plums
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Parsley Raspberries
Peppers Strawberries
Potatoes Tangerines
Radishes Miscellaneous
Slaw
Spinach
Sprouts
Squash
Tofu
Tomatoes
Vegetable mix
Miscellaneous
The various category roles are defined below :
1. Destination/Signature
The destination category would be Fruits, Vegetables and other produce. It will
establish Stop-n-Shop as the dominant store of fresh farm produce providing the
target consumer with consistent, superior value. The produce category will
communicate Stop-n-Shops commitment to meet the specific needs of consumers
as it covers traditional as well as exotic varieties of produces. It delivers consistent
superior value to target shoppers and is used to define the target consumer image
for the market. As given in the product offerings above, the produce will cover wide
range of fresh vegetables, fruits, dried fruits at a relatively lower price than the
market making it a footfall generating category since its offering best quality
produce.
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2. Routine
The routine category is designed to assist in building the target consumers'
image of the retailer. A routine category serves as a link between the retailer
and the consumer. This would include most of the "routine" items consumers
typically put on their shopping list.
The Health & Beauty care products including soaps, detergents, personal care
and health care products will belong to routine category as shoppers put these
products in their almost every time they shop. Grocery Edible and Non-Edible
products along with dairy products, bakery items, meat/sea food would belong
to routine category.
3. Occasional/Seasonal
Occasional/Seasonal brands reinforce the retail image as the store of choice by
providing timely, competitive value to the consumer. It is focussed on specific
events.
Florals/Greeting card and other merchandize segments that provide season or
event-specific offerings belong to this category.
4. Convenience/Impulse
Convenience/Impulse brands establish the retailer as a full-service store by
providing less planned, fill-in needs. The convenience role is geared toward
filling impulse needs. This category strategy typically plays an important role
delivering profit and margin enhancement through items like the ready-to-eat
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meals in the deli and the chilled single serve beverages at the checkout lines.
Other convenience items are household stuff, utensils, luggage, footwear
among others.
Competitor Analysis
Most of the supermarkets follow EDLP( Every day low price) strategy. This results in poor
customer service as a result of operating cost cutting measures. We conducted a primary
research to understand the customer preference in choosing a super market. Customer
felt that there is no much difference in the prices provided by the different supermarkets.
They felt every supermarket prices their products lower than the market price. Through
this we understood that the benefit of EDLP strategy is eroded from the minds of the
Indian Customer.
We will position our supermarket with High Low pricing strategy. Here we reduce the price
only for certain destination products. As the maximum purchase is made only on the
destination products, Indian customers still feel that even these supermarkets provide all
products at low price. Thus to suit the mindset of the Indian customers we wanted to
differentiate our self in terms of service as against the competitors. Also from the primary
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research we understood that the customers are now on the lookout for not just the price
but also for better customer service in a supermarket.
Value Map
The value map is used to identify the activities that are valued the most by the customer.
The objective of our supermarket is to provide these values to the customer.
Price
Variety
Ambience
Customer Service
Big D-Mart Metro Star Spencer's EasyDay Reliance More

Bazaar Cash and Bazaar Mart
Carry
All the supermarkets are almost similar in terms of variety and ambience provided. The
difference is the trade off between price and customer service. Most of the super markets
are targeting at lower price at the cost of compromising on the customer service. There is
a huge potential available for a supermarket that provides better customer service at an
affordable cost. This is where we will position our Stop and Shop Supermarket. It provides
enhanced customer shopping experience.
We want to position our supermarket on better customer service. One of the services
which is desired by the customers is to reduce the amount of time spent on standing in
queue at the billing counter. There will be self-billing through bar code scanning machines.
Once the scanning of all the products are done, the machine will generate a bill. Now the
customer needs to stand in the queue only to pay the bill. This will greatly reduce the
amount of time spent in the queue.
Another way of improving the customer service is to have dispenser inside the store. As
customers spend more time in shopping such soft drink dispensers will serve as a medium
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that will quench thirst. The customer can just insert a Rs 5 coin and then have a cup of
drink.
Another way of improving customer service is through customer loyalty program. Under
this program ever shopper will be give a loyalty card. As per the amount of purchase the
points get added to the account. This amount can be redeemed the next time the shopper
purchases. Now this is a system that is present in many supermarkets. In our
supermarket, we will also have a mobile application. This app will send a pop up to the
customer every time after the shopping to update on the number of points accumulated.
Now the customer can avoid waiting on the operator to check his score. To redeem the
points we tie up with some gifts rather than price reductions on future bills. There will be
different points slab. Based on the amount of points accumulated appropriate gifts can be
redeemed. Customers will be incentivised to purchase more to get into the next slab. This
will result in increased purchase which in turn increases our revenue.
Another way of improving the customer service is to have wending machines at strategic
locations. It will serve as a thirst quencher. There will also be a washroom in every floor.
These will ensure that the amount of time the customer spends in the retail outlet
increases. These will create a good shopping experience.
Another way to improve customer service is to have a variety of monthly baskets. It is a

combo pack that contains all the necessary items that might be required over a period of
one month. It includes the basic food items like Dal, Rice, Atta, Salt etc. The difference in
the monthly baskets is basically to cater to the different set of customers. Through this
we will achieve cross selling as well as selling of private labels.
In addition to all these services there will be a merchandise mix comprising of 25% private
label and 75% national and international brands. The presence of private label helps to
increase the profit margin as against the competitors who do not have private label.
Value Chain
Value chain identifies the primary activities that are carried out by the supermarket and the
supporting activities that support these primary activities. The value chain of Stop and
Shop super market is as shown below
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P Infrastructure
r
i Human Resource Management
m M
a a
Technology Development
r r
y g
Procurement from suppliers i
n
S
e
Inbound Operations Outbound Marketing Services
c Logistics Logistics and Sales
o
n
d
a
y
The primary activities of our supermarket includes
1) Inbound Logistics
It involves managing all the activities starting from procurement of materials to

transportation to the warehouse. It involves identification of the goods received and the
goods that are to be returned back in the case of any defects. The vendor, inventory
and the purchase order information are then updated to reflect receipt. The
supermarket not only handles the materials but also ensures there is proper storage of
materials. It also documents all the materials that are transferred to and from the
warehouse.
2) Operations
It involves managing the end to end supply chain. It also involves supplier and vendor
management, managing the inventory level of the different products. It ensures there is
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proper replenishment of the products. This is very important activity to achieve

customer satisfaction and to maintain proper in-store availability of material.
The timely replenishment of the products are achieved through the use of an
information system. Whenever a purchase of a particular product is done by the
customer at the supermarket, the data gets updated in the information system. This
data is transferred to the warehouse for inventory management. The merchandise is
loaded into the truck from the warehouse and is delivered to the store. The store will
then restock the shelves with the merchandise. This system will ensure proper
replenishment of the products is achieved.
3) Outbound Logistics
It involves managing the activities which involves movement of the goods from the
warehouse to the location of the customer (Retail Outlet). It involves packaging of
goods and managing home deliveries to the customer. It manages the supply and
demands to meet the demand of the customer with perfection.
4) Marketing and Sales
There should be proper in-shop sales promotions and marketing communications to

create impulse purchase. All the different offers provided across the different category
of products need to be properly communicated to the customer. There should be
appropriate display boards and danglers inside the shop to stimulate the customer to
purchase the products. This is a very important part in the value chain as it induces the
customer to buy more than what he would have anticipated to buy before coming to the
outlet. This will have a direct impact on the sales and ultimately on the profit margin.
The marketing communication involves Above The Line (ATL) activities like Digital,
Electronic and Print media . It also includes Below The Line(BTL) in shop activities
5) Services
The unique selling proposition (USP) of our supermarket is customer service. There
will be a sales person at the enterance of the supermarket to greet the customers.
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There will be other sales persons spread across the supermarket to guide the
customers to different sections.
One of the problem faced here is managing the trolleys. As the footfall increases on
the weekends it is very important to make proper utilisation of the trolleys. Many
customers might take the trolley to the car park and will leave them there. There will be
some staff members who are required to identify all these left alone trolleys and bring
them to the main entrance so that the customers need not wait to get their trolley.
Secondary Activities
Secondary activities are not the main activities carried out by the supermarket. These
are the activities that support the primary activities. The Secondary activities include.
6) Infrastructure
For a large supermarket, there should be proper infrastructure in place to carry out
operations over the chain of retail outlets. A robust infrastructure is essential for
successful implementation of all of the primary activities. The organisation structure
plays a vital role in ensuring that quick decisions are taken towards addressing the
needs of the customer. There should be proper control system in place to control the
entire business operations.
7) Human Resource Management
As the Unique Selling Proposition of our supermarket is service there is a lot of

emphasis made on managing the labour force and keeping them motivated. Human
Resource management involves managing the compensations, incentives, rewards
training programs and other benefits of the labour force to retain them. Thus a
supermarket with proper HR system will have competitive advantage over the
competitors without having proper System.
8) Technology Development
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Information Technology plays a major role in having a centralised control on the entire
system. Enterprise Resource Planning Module is used to manages the end to end
supply chain activities. ERP systems track business resources (such as cash, raw
materials, and production capacity) and the status of commitments made by the
business (such as customer orders, purchase orders, and employee payroll), no matter
which department (manufacturing, purchasing, sales, accounting, and so on) has
entered the data into the system. ERP facilitates information flow between all business
functions inside the organization, and manages connections to outside stakeholders
Customer Relationship Management, a front office customer of ERP is used to

manage the customer related activities. Customer relationship management is
intended to streamline and to make more effective the processes between the
enterprise and its customers. CRM software can also be used to identify and reward
loyal customers over a period of time.
Supplier Relationship Management, a front office customer of ERP is used to manage

is used to manage all the suppliers and vendors. As there are numerous vendors for
different category of products there is a need for centralised supplier relationship
management system. The goal of the Supplier Relationship Management (SRM) is to
streamline and make more effective the processes between the enterprise and its
suppliers
9) Procurement from suppliers.
This is process by which the organization receives the necessary resources it needs to
operate. This includes finding the vendors and negotiating best prices with them. On
time procurement from the suppliers ensures proper replenishment of the different
product categories. This results from proper supplier management.
Porters 5 Forces
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Porters 5 Forces is used to identify the competitors in the market. As Stop and shop is
operating in a very competitive retail market, we need to identify all sorts of threats that
might impact our supermarket.
Threat of New Entrant
Bargaining Power of Competitive Rivalry Bargaining Power of

Suppliers Buyers
Threat of Substitute
Competitive Rivalry:
Threat is Medium
Grocers could potentially enter into the retail supermarket side.
Entry barriers are relatively high, as the supermarket requires an outstanding
distribution systems, locations, brand name, and financial capital to fend off
competitors.
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Further the Exit barrier is also high, so the existing players will stay and
compete in the market to cover the fixed cost.
Industry life cycle has reached its maturity.
Bargaining Power of Buyers
This is High
The individual buyer has chose to shop at outlets that follow Every Day Low
Price(EDLP)
The switching cost for the buyers is low
The products offered by the supermarket are not different from that offered
by others. This gives the buyers an option to switch.
Consumer could shop at a competitor who offers comparable products at
comparable prices, but the convenience is lost.
Bargaining Power of Suppliers:
This is Moderate to High

Most of the suppliers are unique. They dont have any substitute product to
substitute them. These suppliers have high bargaining power.
As there are lots of supermarkets that depend on these limited Branded
suppliers they have a high bargaining power
The top FMCG companies have very high bargaining power because there
is a clear demand for these products from the customers.
In the case of low branded suppliers the threat is moderate because they do
not have any big customer base and the retailer has low switching cost.
Threat of Substitute Product:

This is High
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When it comes to this market, there are lots of competitors who offer
competitive pricing. But we try to differentiate ourself in terms of the
customer service and the overall experience we provide.
The customer has the choice of going to many specialty stores to get their
desired products but is not going to find variety and the customer service
that we offer.
Online shopping proves to be another competitive alternative because it is
so different and the customer can gain price advantages. The company does
not necessarily have to have a physical store, thereby passing on the entire
savings to the consumer.
Threat of New Entrants

This is low
There is a very high entry and exit barrier
It requires operational efficiency and proper supplier management as the
supermarkets operate on a very thin profit margin
The capital required to enter the market is very high. This makes it tough to
enter for the new comers.
BCG Matrix
The Boston Matrix is a tool that helps the businesses to analyse their current business
portfolio, and decide which of the businesses should receive more or less investment, and
develop growth strategies to add new products and businesses to their portfolio, whilst at
the same time deciding when the poor performing products and businesses should no
longer be retained
Stop-n-Shop Retail
Star Question Mark
High
Market Cash Cow Dog
Growth
Low
High Low
Market Share
Boston Consulting Group Matrix is a business chart that analyzes the relative market
share of the company in comparison to the market growth rate. The chart is broken down
into four different groups namely : Stars, Question Marks, Cash Cows, and Dogs.
In the Stars Group the companys have a relatively strong market share in a rapidly
growing industry. These companies consume and generate large amounts of cash.
In the Cash Cows group the companys have a high market share in a slow-growing
industry. These companies usually generate more cash than the amount of cash needed
to maintain the business.
In the Dogs group the companys have a low market share and in a slow-growing
industry. These companies neither generate nor need a large amount of cash. It is better
to quit these businesses.
In the Question Marks group the companys have a low market share in a rapidly
growing industry. These companies consume large amounts of cash however they do not
bring in adequate funds. Question Marks have the potential to grow if they gain market
share, if they do not then as the market growth declines they will become a Dog.
Stop-n-Shop Retail
Stop and Shop supermarket is currently in the Dog Group. This is because the retail
industry is a low growth industry and we have a low market share in the industry. Through
the improvement and innovation that we provide in the services we will be able to move to
the Cash Cow Group. Through the improvements in service our supermarket not only
gets opportunities to gain new customers, but also entice the current existing customers to
keep coming back. Thus our supermarket should use the differentiation strategy to
increase the market share.
Product Life Cycle Management
It is a process of providing the life cycle scores for all the products sold in the chain of
Stop and Shop retail outlets.
Earthster 2 Turbo (E2T), a lifecycle assessment (LCA) tool with an open source database
is used for assessing the lifecycle of the different products. It can also be used to assess
the life cycle of the private label products. LCA software creates value and makes
measurement practical and improves the effectiveness of reporting standards, like those
of the Sustainability Consortium and the Global Packaging Project. It helps to create
new sustainability standards for consumer products.
Customers want information about the entire lifecycle of a product so they can feel good
about buying it. They want to know that the materials in the product are safe, that it was
made well and that it was produced in a responsible way. Some of the products have a
social and environmental impact. LCA helps consumers understand the lifecycle
environmental and social impacts of the products they buy.
The three stages of the Sustainability Index Consortium project include:
1. An initial Supplier Sustainability Assessment program
This stage involves the informal assessment of existing sustainability practices at Stop
and Shop suppliers through the completion of a Supplier Sustainability Survey. This is the
first step toward establishing real transparency in the supply chain.
2. The creation of a Lifecycle Analysis Database
Stop-n-Shop Retail
Stop and Shop documents all the reports that this phase will involve research-driven
product sustainability measurement and reporting. In this stage the Consortium will work
with suppliers, retailers, and other academic and government and non-government entities
to develop a global database of information on products lifecycles from raw materials to
disposal.
3. The finalization of the Index and a presentation to customers.
This is the final step in the Stop and Shop initiative. It is a loosely defined process where
the retail firm will develop tools that will help our merchants understand and improve the
sustainability of our products and provide customers with information about products in a
simple, easy-to-understand manner. The sustainability rating label that retailers will post
will be a single number or symbol next to an items price tag .
7S Model
The 7S model will help Stop and Shop to manage its operational activities thereby
achieving its organisation goal. 7S model involves seven interdependent factors which are
categorized as either "hard" or "soft" elements:
"Hard" elements are easier to define and the management can directly influence them.
The Hard Elements are
Strategy
Structure
System.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible
and more influenced by culture. These soft elements are as important as the hard
elements if the organization is going to be successful. It includes
Shared Values
Skills
Style
Staff
Stop-n-Shop Retail
This shows the interdependency of the elements and indicates how a change in one
affects all the others.
Structure
Strategy System
Shared
Values
Skill
Style
Staff
Strategy
The strategy adopted by Stop and Shop is to provide differentiation in terms of on shop
service to the customers. The strategy is to have Fruits and Vegetables as the destination
product and to reduce the cost of these destination products alone. This will pull in more
customers to our supermarket. This low price can be achieved by having an effective
supply chain. We will have a exclusive transportation vehicle which will collect the fruits
and vegetables directly from the farmers and supply to all our chain of retail outlets. By
this process we eliminate the presence of middleman from our supply chain. This results
in huge saving for us. This saving can be passed to the customer to increase the foot fall
in our supermarket.
Structure
Stop-n-Shop Retail
Stop and Shop has a flat organisation structure with only a 3 levels. Each of the individual
has a large span of control. There is sufficient level of autonomy given to each and every
employee in the value chain. This increases the efficiency of every individual. All the
individual are involved in the decision making process.
Flat organisation structure will ensure that there is proper vertical and horizontal
communication between the employees. This results in operational efficiency as all the
individuals are tuned to the same page.
System
Stop and Shop supermarket has a very strong system in place. It has a good distribution
system in place which ensures that the products are obtained to the retail outlet effectively
at low cost. It defines daily activities and procedures that staff members engage in to get
the job done
Stop and Shop has a Enterprise Resource Planning Module which integrates the various
systems used in the chain of retail outlets. It has a Customer Relationship Management
system that is used to manage and provide good service to its wide range of customers.
Shared Values
It refers to the core values of the company that are evidenced in the corporate culture and
the general work ethic. The core value of Stop and Shop is to enhance the customer
shopping experience through the state-of-art service. It has a very user friendly work
culture in terms of the number of hours the employees have to work. It has a strong HR
system which takes proper care and proper training for the employee. This ensures that
the core values of the organisation are ingrained in each of the employees.
Skills
It refers to the actual skills and competencies of the employees working for the company.
The employees in Stop and Shop supermarket are given proper training on how to behave
with the customer. They are trained on greating the customers and directly them towards
the different products in the supermarket.
Style
Stop-n-Shop Retail
It refers to the style of leadership employed in the supermarket. Stay and Shop
encourages team work and it invites all the employees in decision making and taking
initiatives.
Staff
Stop and Shop super market has promising staff members. It regularly identifies the
staffing gaps to achieve smooth functioning of operations. Every individual in the
organisation plays a vital role in achieving the core objective of the organisation. The HR
system at Stop and Shop takes proper care and provides necessary training to all the
employees in the organisation.
Pentagon Model to Achieve Competitive Advantage
Stop-n-Shop Retail
Pentagon Model provides 5 external parameters that are necessary to achieve competitive
advantage. This model is used to take decisions about the launch of Stop and Shop Super
market.
Place
It involves identifying the places where Stop and Shop supermarket should be launched.
The objective for finding the strategic location for the Stop and Shop supermarket is
To increase the customer foot fall in the supermarket.

Convert them into customers buying merchandise once inside the store
Convert the customer into regular customers to increase the revenue base.
Communication
It is a process of creating awareness about the Stop and Shop Supermarket. It involves
Created a brand image, Positioning and Promotion. It is a very important factor which
ensures there are more customers on board.
Creating Image
There are various dimensions that are considered to create a overall image to our retail
outlet . There are 4 main dimensions that define the image of the retail outlet . They are
Stop-n-Shop Retail
Aesthetic Image of Store: Stop and Shop will have a pleasant atmosphere which will
provide a good ambience for the customers to shop for long. It will have a very attractive
layout which makes it convenient for the customers to locate the products. The store will
also have a lot of Information Advertising which provides product related information
thereby making it easy for the customer to make a decision. The products are arranged
based on the buying pattern of the buyers. The outlet has well spaced merchandise. The
aisle are wide enough to accommodate a large number of customers.
Product Image: The Image of the Stop and Shop supermarket is highly dependent on the
brands it holds. It has a good collection of premium brands which are not offered in many
of the other supermarkets. The superior quality of our products and the freshness of the
fruits and vegetables add to the image of the retail store.
Merchandise/Stocks/Variety: Stop and Shop has a large consortium of products. It

provides a lot of variety in the products offered. The store holds a proper mix of both
private labels and the branded products. These private labels provides huge profit margin
to the company. This ensures that there is huge variety of products under each of the
categories.
Store Personnel Behaviour: Stop and Shop provides uniform to its employees. This will
ensure that all the staff members are well dressed before the customers. The staff
members are trained so that they properly great the customer and guide them through the
store. These are the 4 dimension that create a good image for the supermarket.
Positioning
It is a process of identifying how the supermarket will position itself in the minds of the
consumer. Stop and Shop is positioned as Convenient One Stop Shop for all your needs
at affordable price. The company positions itself as a supermarket that has a wide range
of product category. The customer can buy any kind of product he wants from Stop and
Shop.
Stop and Shop also positions itself on the shopping ambience and the service that is
provided to the customer. It positions itself as Enjoy shopping for long. Stop and Shop
provides High service at low cost. This is achieved through operational efficiency.
Stop-n-Shop Retail
Stop and Shop Position
High Service
High Value
Position Service Oriented
Position
Low Price High Price
Price oriented Poor Value
Position Position
Low Service
Promotions:
Stop and Shop supermarket will use both push and pull marketing and promotion
strategy. As the supermarket will have around 53 retail chains spread across the country,
it is necessary to create a market pull to create awareness about the brand. This can be
achieved through
Fliers: It can be inserted into the newspapers in the areas where we are opening our
supermarket. This will create awareness to the customer about the store opening date and
where exactly the store is opened.
Billboards: Billboards of Stop and Shop will be placed in strategic locations. It will be
placed at points of maximum visibility in the areas where the store will be launched. Some
of the locations are near busy traffic signals, Residential colonies and outside the malls.
Advertising in the local Television channels: Stop and Shop will tie up with local
service provider for advertising on the local cable channels in the areas where the store
will be opened. In this television advertisement, we will inform the customers about the
innovative services that will be provided to the customer.
Stop-n-Shop Retail
This form of advertising is essential to educate the customer about our supermarket and
its offerings. Once the customer are aware of Stop and Shop and visit our outlet, the store
manager and the staff members will create a good rapport with the customers and in turn
create a push strategy.
Sales promotion is a pull strategy that will be used by Stop and Shop to increase the
customer foot fall in the market and to make the customers repeat buyers. It is push
strategy used to push the products to the customers. These sales promotions should be
properly communicate to the customer. There are various kinds of sales promotions that
can be carried out by Stop and Shop. They are
1) Price Reduction: Stop and Shop will reduce the price of certain products to push
their sales. Such price reduction will result in lots of impulse purchases and it
forces the customer to buy more than what was expected.
2) Combo offer: Stop and Shop uses this strategy to give a product free on the
purchase of some other product. This is basically targeted at those customers who
are driven by free items.
3) Coupons : Stop and Shop will provide coupons to the customer beyond purchase of
Rs 1000. This will induce the customer to buy more to win the coupon. The coupon
can be redeemed during the next purchase. This process will ensure that the
customer will continue to shop from us and will easily switch the supermarket.
4) Events : Stop and Shop will also conduct some fun activities outside the outlet. This
is a customer engagement program. This is done to achieve customer loyalty. Such
kind of events and activities are clear crowd puller.
5) Samples : Stop and Shop uses this strategy to push the private labels. A small
sample of private label products are given to the customer to try. This will ensure
that the customer may prefer private labels over branded products.
People:
In Stop and Shop Business model , sufficient amount of autonomy is given to the staffs.
This means that retail store specific decisions are taken by the store manager and the
Stop-n-Shop Retail
respective staff members. Thus these employees should be properly trained such that
they provide quality service to our customers. The employee training should focus on
1) Product Training Employees should be given information about the various

categories of products available, various SKUs of the product categories and the
margin associated with each of them. This will help the employees to push for
products that have better margins.
2) Technology Training : Employees should be trained on the technologies that are
used in the supermarket. They should be trained on how to operation they
computers, Barcode scanning machine, wending machines, card readers as most
of the payments in the supermarket happen through credit or debit cards.
3) Soft Skills Training: Stop and Shop should groom the employees on their soft skills.
As the Unique Selling Proposition of Stop and Shop is service, it is necessary to
train the employees on how to handle the customers.
4) Operational Training: It is essential that every employee should understand about
how the entire store operators. Stop and Shop supermarket will be able to provide
better service at low cost to the customers only through its operational efficiency.
So it is necessary to align all the employees to it. Even during the absence of some
employees, the other employees should know how to handle the stop.
Organisation Structure
Stop-n-Shop Retail
CEO
COO Merchandise CMO CFO Vice

Head President HR
Operations Purchasing Marketing Finance Recruitment

Managers Managers Manager and Staff
Development
Floor Plant Marketing Accountant

Personals Superintendent Communication
and Team Team
Our retail outlet has a flat organisation structure. This organisation structure has only a
few or no levels of intervening management between staff members and managers. The
idea is that the workers are well-trained and are given autonomy to be more productive
when they are more directly involved in the decision making process, rather than closely
being supervised by many layers of management. However the span of control is wide for
every individual in the organisation. The mission, vision and the strategy is designed by
the Chief Executive Officer. The next level in the organisation structure consists of heads
of various departments. It includes the Chief Operating Officer, Merchandise Head, Chief
Marketing Officer, Chief Financial Officer.
Chief Operating Officer
He is responsible for identifying the location for the supermarket.

He designs the layout in consultation with the merchandise head.
Stop-n-Shop Retail
He is responsible for maintaining the Profit and Loss account of the supermarket.
He is customer centric. He carries out various customer engagement programs.
Most of the customer service initiatives that have been taken needs to be ratified by
him
He maintains the End to End Supply chain management to improve operational
efficiency.
He is also responsible for maintain inbound logistics from vendor supplier.
He has several operations managers and field personnels working under him.
His responsibility is to increase the Earning Before Interest And Tax (EBIAT)
Merchandise Head
He manages the working capital and the supplier credit terms.

He sets the terms of trade for all the suppliers and customers.
He is margin centric. He is always on the lookout for increasing the profit margin.
He manages all kind of purchased from the vendors.
He has various category heads working under him. There will be heads for different
categories. The category head decides what type of promotions to be done for
different SKUs (Stock Keeping units). He also decides the discounts for different
SKUs but he has to abide by the overall strategy of the organisation.
Chief Marketing Officer
He is responsible for various marketing communications related to the supermarket.

His goal is to find ways and means to create awareness and increase customer
footfall in the supermarket.
He works with advertising companies for branding the supermarket.
He is responsible for both Above the line and Below the line Marketing
communication.
He runs various customer loyalty programs like offers and customer points system,
where the customer will be able to redeem gift based on the points collected.
He has various marketing managers and marketing communication team working
under him.
Chief Financial Officer
Stop-n-Shop Retail
He is responsible for accounting and control, business planning and analysis,

internal auditing, treasury, taxing, and several other key areas of the company.
He is responsible for managing the budget.
The lead financial executive in each operating segment of the company reports
directly to him.
He has various financial managers and accountants working under him.
He also managing the investment on assets and other IT systems.
Vice President HR
He is responsible for all HR related activities like Incentives, compensation and

other benefits.
He is responsible for providing quality training to achieve overall staff development.
He advises administrators and employee representatives on personnel-related
policies and procedures
Develops and implements personnel rules and regulations that are to be abided by
all the staff members in the supermarket chain
Sourcing & Supply chain
Stop-n-Shop Retail
In the organized retail market in India the role of supply chain is very important for the
Indian customer demands at affordable prices a variety of product mix. It is the supply
chain that ensures to the customer in all the various offerings that a company decide for its
customers, be it cost, service, or the quickness in responding to ever changing tastes of
the customer.
The infrastructure in India in terms of road, rail, and air links are not sufficient. And so
warehousing plays a major role as an aspect of supply chain operations. To overcome
these problems, Stop-n-Shop is trying to reduce trans portion costs and is investing in
logistics through partnership or directly. The Indian organized retail sector is growing so
the role of supply chain becomes all the more important. It should become all the more
responsive and adaptive to customers demand.There is also need for the supply chain to
be more cost efficient and collaborative to win the immense competition in this sector.
When looking at supply chain practices, efforts to improve efficiency and cost reduction
are not sufficient to differentiate a company from competitors. Stop-n-Shops operational
effectiveness is aligned within the context of a cohesive business strategy to drive lasting
differentiation. One reason that operational effectiveness is not sufficient is that a single
best practice in a specific area is easily copied. However, if a set of unique practices are
utilized, it is much harder for a competitor to imitate. Operational innovation places Stop-n-
Shop at a higher level than competitors.
Following are the important aspects of our Supply Chain.
1.Purchasing & Procurement
Stop-n-Shop Retail
Activities related to obtaining products and materials from outside suppliers involve
resource planning, supply sourcing, negotiation, order placement, inbound transportation,
storage, handling, and quality assurance, many of which include the responsibility to
coordinate with suppliers on matters of scheduling, supply continuity, hedging, and
research into new sources or programs.
Stop-n-Shop purchasing & procurement department would source and ship the inventory
in bulk thereby increasing operational efficiency and reducing costs.
1.1. Produce sourcing
The agricultural produce can be procured from various channels listed below in a
typical farm produce chain arrangement.
Stop-n-Shop Retail
The most general agricultural value chain setting starts with farmers production which
they sell-off to Village-level Consolidators which are independent bodies who along with
Commission agents sell to Traders who consolidate at District-Level. Other commission
agents organize mandi auctioning of the produce to wholesalers who in turn sell to
retailers which then in turn reaches the consumers spanning at least 7-8 intermediaries.
Stop-n-Shop will take into consideration each level to source its produce. Following table
gives an average mark-up margins at each level.
Stop-n-Shop identifies farm produce into two broad categories
1. Hard Perishables
These have low water content and do not get rotten soon. Produces like Onion,
Potato belong to this category.
2. Soft Perishables
High water concentration vegetables and fruits like Tomato, Grapes etc are soft
perishables.
We can afford relatively bigger lead times for hard perishables as Onion can be stocked
for 15-20 days and potato can be stocked for 20-25 days and hence, it makes more sense
to procure them from the village-consolidators who buy from farmers. This would ensure
saving of over 112% margin as compared to buying from local wholesaler. Likewise, all
Stop-n-Shop Retail
the soft perishable items will be procured from local wholesale markets thereby selling to
consumers after adding retailer margin of 25-30%. The procurement activity of hard
perishables from village-level consolidators implies transportation cost. Also, certain
factors like ripening of the farm produce will have an impact on the shopping behaviour.
For e.g. Tomatoes will be procured 50% ripe, 50% unripe and a mix of these will be put on
the shelves.
Dairy Products
A typical traditional and modern dairy supply chain is as shown in the figures below. Stop-
n-Shop will source the dairy products from the primary and secondary distribution through
wholesalers, institutions and co-operative houses.
Stop-n-Shop Retail
Similarly, local wholesale procurement is conventionally done for Grocery items, Frozen
foods, General Merchandize, Bakery items. Like other supermarkets, Stop-n-Shop will
also buy in bulk to gain from economies of scale and achieve lower operational costs.
For Health & Beauty Care category, the sourcing is done either directly from the
manufacturers base. Now since most FMCG companies like Hindustan Unilever, P&G,
Dabur, Godrej, Reckitt Benckiser outsource the manufacturing of their products to local
manufacturers. If the procurement has to be done from manufacturing bases, then it has
to be in bulk amounts.
Stop-n-Shop Retail
Carrying and Forwarding Agents take the inventory from manufacturers to Regional
distributors. Every Supplier has distributors in each area for e.g. Hindustan Unilever has
15 distributors in Mumbai, 3 in Pune, 9 in Kolkata. Procurements in large quantities can be
done from C&FAs as well. The last option is sourcing from regional distributors which is
the most conventional approach of sourcing by retailers.
Other techniques are Vendor direct to stores which are used for products which are not
too frequently replenished. Third party Distribution Centres (DCs), Company cross-docks
and Pool distributions are also used extensively by retailers.
Based on the FMCG industry and its dynamics, Stop-n-Shop will adopt the below sourcing
distribution.
Stop-n-Shop Retail
Distribution method Average Sourcing (%)

Company DCs, C&FAs & Manufacturing 72%
bases
Vendor direct to stores 9%
3PL DCs & cross-docks 8%
Company cross-docks 6%
Pool distribution 5%
2. Demand Planning & Forecasting
Shop-n-Stop realizes the cost of holding stocks and inventory, and the stock forecast will
be handled using Quick response approach which enables suppliers to forecast what
Stop-n-Shop is going to order before the order is actually made through information
sharing. point of sale (POS) data and electronic data interchange (EDI) would change the
communication level with suppliers. Point of sale data is increasingly important, allowing
suppliers to know the actual consumer demand patterns of fast moving items, which
enables suppliers to prepare for the next order before the retailer makes the order. The
connection between the two entities electronically through the use of EDI allows for
quicker information sharing, which then leads to shorter order cycle times. The final
retailer supplier collaboration trend that we discuss is the use of vendor managed
inventory (VMI). Waller, Johnson, and Davis (1999) maintain that VMI permits cost cutting
in the supply chain for both retailers and suppliers, and is also a mechanism that
increases customer service level. VMI is an initiative where vendors are responsible for
determining retail replenishment levels and managing the amount of inventory that the
retailer has on hand. When retailers participate in VMI, they are allowing their suppliers to
know the actual demands of their products and provide automatic replenishment at the
retailing or distribution facilities. VMI benefits retailers due to more frequent
replenishments. This frequency increases the customer service level due to the increased
supply chain flexibility to respond to consumer demand and ensure on-shelf availability.
The result is increased retailer sales revenue. The supplier benefits from this process
because they have full knowledge of demand and avoid high demand variability caused by
orders from retailers. Ultimately, suppliers do their own demand planning and
replenishment processes. Because suppliers know in advance the amount of products
Stop-n-Shop Retail
they need to replenish, they are able to better plan, which then leads to a reduction in
inventory levels and a reduction in transportation costs.
Demand Forecasting and Vendor Management
3. Inventory Management
Our motto is providing the consumer with the right product - at the right time and at the
right place. In addition to the Vendor Managed Inventory technique explained above,
Stop-n-Shop would engage in Assembly Replenishment Process and Direct-to-Store
depending on the type of products. For products which are fast moving and difficult to
store, there will be a direct store transfer from the vendor, otherwise it will be through
the distribution centre.
Stop-n-Shop Retail
As shown in the replenishment process, 20% would be directly shipped to Stop-n-

Shop store and 80% via Distribution center.
Auto Replenishment System (ARS) refers to - Automatic purchase order creation and
auto-delivery of products directly to your retail store or warehouse, you can remain
focused on driving sales. The bottom line is the inventory auto-fulfilment increases
sales, margin and cash flow and lowers costs.
BENEFITS:
Eliminates the need for weekly ordering:Auto-replenishment creates weekly

purchase orders automatically.
Reduces administrative costs: No data analysis, accessory inventory decisions
or purchase order management.
Allows you to focus on handsets: Maintain your core focus and grow your
business.
Keeps your store locations organized: Reduces non-selling inventory and gives
you space to display what sell.
Stop-n-Shop Retail
Provides Flexible Reporting: Comprehensive reporting so that results can be

easily measured.
Simplifies entire procurement process: Minimal human intervention, maximum

attention to detail.
Increases your sales by having the right stock: Reduces stock outs since
orders are based on customer demand forecasts and handset promotional
planning.
Increases your cash flow by giving you control of your inventory dollars: By
combining actual sales trends with your set minimum and maximum values you
control the return on investment.
Increases your margin by reducing obsolete inventory:Reduce your write offs

and obsolescent markdowns by managing end-of-life product inventor.
Stop-n-Shop will also integrate RFID (Radio Frequency Identification) technology

which will provide the following benefits.
Cost Savings
Labor cost
Logistical cost
Inventory Accuracy
Greater Product Availability
Inventory management
Supply Chain management
Product Authenticity
Recycling Efficiency
There are some benefits to the consumers also.
Consumer Benefits
Stop-n-Shop Retail
Lower prices
Improved shopping experience
Convenience
Safety concerns
product authenticity
aid in recalls
Return Policy
Stop-n-Shop will have a fixed return policy with all the vendors and suppliers. If after
liquidation and stock clearance also, the product remains on shelf and the expiry date
passes, it has to be taken back by the supplier and the transportation costs also will be
bourned by the supplier. The repayment will be the same amount at which it was
bought.
The return policy would help Stop-n-Shop and the entire supply chain in the following
manner.
Supplier is less risk averse than Stop-n-Shop
Supplier has a higher salvage value
Safeguarding the brand
Signalling information
Avoiding brand switching
Stop-n-Shop Retail
Operations Management
As we observed in the competitor analysis with the help of value map analysis, all the
current players are not focussing much on offering good customer services hence the
customer loyalty is very low. Stop-n-Shop would capitalize on this aspect while
providing good prices,variety of assortment in a good ambience environment.
Price
Variety
Ambience
Customer Service
Big D-Mart Metro Star Spencer's EasyDay Reliance More

Bazaar Cash and Bazaar Mart
Carry
9. Queue Management Strategies: Based on the primary research and feedback

analysis, one of the biggest issues customers face in their shopping experiences is
the long-waiting times at the payment counters. Although some retailers do have
Express Counters for customers who have purchased relatively lesser items. The
basic reason is less number of billing counters per customer mainly due to the
space constraints.
Stop-n-Shop will have automated bar-code scanning machines. As each item has a
unique bar-code on it, the customers can do a self-billing for each item in their
basket and generate the bill. The packaging section will cross-cheque each item in
the bill while packaging which will make the process more efficient and faster. The
machine will not be bulky or space-consuming, as it is just a bar-code reader and a
digital panel and a hand-held printer which would print the bill.
Stop-n-Shop Retail
The machines would strategically be placed near the shelves of impulse

items that would lure the customers pick-up such items
In the traditional bill-counter technique, once customers have generated the
bill and got it packaged, they generally dont go back and buy anything else if
they have forgotten some item. In bar-code reader machine case, the
customers can generate as many bills as they want and make them buy
more and more items.
More offers and discounts would be placed in the close vicinities of these
machines, which will tempt the customers to drop in more and more products
in their baskets.
10. Deviation from the existing loyalty cards prevalent in retail chains:
The traditional techniques of coupons and reward points schemes are designed
with an intention to retain existing customers and attract new customers which
provides either materialistic or price-wise benefits to customers. However, several
customers do not remember the value of their accumulated points unless they
shop.
Stop-n-Shop would provide RFID-enabled loyalty cards to its customers so that it

would help tracking the customer profile, shopping behaviour, frequency of visits
and other information like birthday, anniversary and offer customized discounts and
offers to customers.
11. Complimentary Services: Stop-n-Shop would offer customer-engaging services to

enhance the shopping experience. Since customers get tired of moving around the
outlet and they feel thirsty, vending machines would be installed to offer chilled
beverages to quench their thirst and have a refreshing experience so that the
average staying time of the shopper increases, thereby increasing sales.
Another major problem customers face while shopping is less or no washrooms,

and if there are any, they are not clean and well-maintained. Stop-n-Shop would
provide state-of-the-art washrooms with regular cleaning and maintenance.
This would enhance the ambience and unique shopping experience.
Stop-n-Shop Retail
12. Categories: Expand the assortment in our destination category & enter into new
categories over the years to tap into the changing consumer needs. Restructuring
various retail arms of the parent group under a single parent would also help
synergize our costs & offerings by delivering complimentary services that are
seamlessly integrated with our brand image.
13. Offerings: It is sometimes observed that a majority of the customers who visit the
retail store for the monthly mission, buy a similar set of items every time. This
pattern is observed over the years by analyzing the Bill Items. For example, the
monthly bucket would generally contain Flour, rice, pulses, grocery, spices among
others.
Stop-n-Shop would introduce the most featured monthly purchase basket items as
a combo package available near the entrance location with some discount on total
MRP. Introduction of monthly purchase baskets for various price points & quantities
would reduce the effort on the part of customers in picking up routine categories
items, promote private labels and enable higher cross selling.
14. Pricing: The focus of our strategy would be based on High-Low pricing with ranges
in premium segment also. There would be no shift towards EDLP pricing in the near
future.
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Stop-n-Shop Retail
Based on the primary research analysis done by interviewing the customers real-time at
various retail supermarkets across Mumbai, and also surveying online different people
from different parts of the country like Delhi, Bangalore, Pune, Hyderabad, the above
snapshot gave a picture of preferences of shoppers and the trend in retailing.
As is evident, Express cash counter rated quite high. This is in line with past
observations.
Half of all adults wait in line in a typical 24 hour period
Average wait time is 5.2 minutes
14% waited ten minutes or more
39% have stopped shopping at a particular store because of dissatisfaction with its
customer service
Only 16% of those who waited 10 minutes or longer made an impulse purchase at
the checkout
At checkout, shoppers want service and efficiency over entertainment and

conversation
As we have already mentioned above, Stop-n-Shop would be offering various queue

management services to tackle this issue.
Other high-rated factors were product assortment and staff behaviour. Stop-n-Shop is
providing a wide range of assortment with high intensity and variety so as to cater to all
types of consumer demands. The staff would also be trained regularly on how to treat
customers, be a knowledge-base to them and help them gauge the products without any
bias so that the customer takes home the best product adding to his value shopping. Staff
training is included in the extended customer services explained later.
Traffic in the nearby area and parking facility are some of the most common problems
faced by customers in any catchment, and thus closely looked upon by the retailer while
selecting the location. Stop-n-Shop store locations are ideally located so that the traffic
congestion is minimal in the vicinity and is well-connected at the same time. Ample car-
Stop-n-Shop Retail
parking space is also provided to all the customers and efficiently planned and managed
such that occupancy rate reaches an upper cap of 85-90%.
Layout and Merchandizing display are critical success factors of any retail store. Poor
display of merchandizes and improper/absent directions and instructions tend to lower
shoppers interests and thereby decrease footfalls. Stop-n-Shop takes care of the
directions and visual display in an eye-catchy manner.
Other factors like store music, after sales, home delivery, ambience and temperature and
loyalty cards were other less important factors. Stop-n-Shop takes care of these factors by
offering innovative solutions to cater to all the needs.
As a part of the primary research, we also measured the retail image dimensions based
on certain attributes. These were obtained after interviewing shoppers and frequent
customers.
Dimension Attributes
Aesthetic image / Physical setting / The store has a pleasant atmosphere
Display The store has an attractive layout
The store has informative advertising
It is very easy to find the products In the shop
Products on the shelves are messy
The outlet has well-spaced merchandise
The outlet has exhibited good displays all over
The shop has attractive and informative displays
Shop signage is very good
Product/Brand image The store has well-known brands
The store has low quality products
Merchandize/stocks/variety The store has an unlimited selection of products
The store has both private and manufacturer
brands
I get better prices by buying private label groceries
The store has exclusive product assortments
Store personnel/service/behaviour The store 's sales clerks are well-dressed
Stop-n-Shop Retail
The store has knowledgable sales staff

The store has helpful and well-behaved staff
Stop-n-Shop takes care of all such existing issues and gives a high quality of service.
In-store services
Based on the market visit observations and primary research analysis, Stop-n-Shop would
offer the best services which are secondary but add value to the shopping experience.
1. Greeters
At the entrance of Stop-n-Shop, a greeter would welcome the customers inside with
a pleasing smile and wish them Good Morning, Good Afternoon or Good Evening
depending on the time of the day. After entering, our greeter would show them the
directions to various categories, washrooms or the vending machines.
2. Trolleys / Baggage tokens / Baskets

There would be sufficient number of trolleys for the customers. This data would
again be taken from the research of the number of footfalls in a day and how many
use trolleys or take baskets in case they prefer to shop lesser items and move out
quickly. The customers can take trolleys outside the exit gate to their vehicles and
Stop-n-Shop staff will make sure each trolley returns inside as soon as possible to
make it available to other shoppers for use.
The baggage tokens, just like other supermarkets, will be accepted at the baggage
counters. The issues observed in this case is the thirst that people feel and water is
in their baggages at the baggage counter. Thus, the vending machine and
beverages section would be of use to them adding to Stop-n-Shops sales and
relieving them of tiredness and thirst.
3. Convenient flow/ Road map
Stop-n-Shop Retail
Many retail outlets have closed as the routes were cumbersome inside the outlet
and the shoppers get confused where they are and where to get what they want.
For e.g. Crossroads mall in Posh Worli location of Mumbai was closed due to this
reason inspite of being in such an apt location.
Stop-n-Shop has taken care of this issue first of all by the greeter, and if customers
forget about it, there is a map available at many places as posters which would help
them guide themselves to the right place with out any ambiguity.
4. Staff with product/category knowledge

As mentioned above, Stop-n-Shop will have a training every month about the new
products in various categories or new features in existing product lines. The training
will also guide them regarding the various offers, discounts and promotions running
on certain SKUs. If certain supplier wants to push its completely new product and is
ready to pay for it if Stop-n-Shop also pushes it, then our staff would be trained
about the new products and their features and prepare a short 10-12 second pitch if
customers enquire for it.
However, Stop-n-Shop management would also take care of the fact that the staff
should not encroach in the private space of the customer as they start feeling
uncomfortable. So, there will be well-defined circles for each staff and they have to
maintain a 6 feet distance from the customers unless the customer calls and asks
for help. Also, they would be trained to read peoples faces if they are in any
dilemmas or are not able to understand what to buy, then they would approach
them and help them.
Stop-n-Shop Retail
5. Check-out
Stop-n-Shop will offer the quickest and most convenient check-out experience.
Attributed to the newly introduced Bar code scanning machine, the billing process
will speedify and the check-out stamp will be done immediately taking minimal time.
Following is the list of some of the most common check-out practices preferred
checkout practices, again as a part of our primary research.
0% 20% 40% 60% 80%

65%
A 10-items-or-fewer express line
A special line for customers with 54%
large shopping baskets
65%
Baggers at every checkout counter
Baggers only at the special counters 33%
for customers with large shopping
A TV screen at the checkout 20%
counter that advertises products
A display of attractively priced 19%
impulse items at the checkout
51%
Self-checkout counters
It can be clearly seen that people prefer fast and convenient check-out from the
stores, which Shop-n-Stop is offering in a very convenient way.
6. Parking
Ample car-parking space would be provided at Stop-n-Shop with a planned
occupancy rate with a cap of 85-90% so that in case of any festivals or seasonal
Stop-n-Shop Retail
sales, when there are astronomical footfalls all of a sudden, there is enough parking
space still for all of them.
7. Customer-centric philosophy
Stop-n-Shop lays greatest emphasis on its philosophy that Customer is the king
and is always right. This philosophy would be engrained in each and every staff,
cleaner, manager, cashier, packager, gatekeepers and every personnel in the
store.
Service Convenience Antecedents

The hypothesized antecedents of the service convenience dimensions in the proposed
nomological network are causally related to customers perceptions of service
convenience.
Shopping Enjoyment (SE)

Shopping is considered as an enjoyable and rewarding experience by hedonic consumers
and therefore they perceive lower time and effort costs than the consumers who view
shopping as unpleasant. Shopping has been referred to as a fun, pleasurable activity that
leads to feelings of joy .A strong store image has been shown to result in higher levels of
pleasant feelings in customers, and reflects their enjoyment of spending time in the area.
Stop-n-Shop Retail
Shopping enjoyment refers to a customers positive affect toward shopping for items in
specific product or service categories, such as apparel or travel services. As shopping
enjoyment is an affective state that encompasses the shopping experience and involves
positive emotions toward the overall process, expected it to be positively related to
each of the five service convenience dimensions.
Product Category Involvement (PCI)
Product involvement is an important construct in consumer behaviour and it has been a
construct of considerable theoretical and empirical attention right from the time on
social judgment theory. Since then the construct has been studied in the field of consumer
behaviour by examining the function of involvement in consumers purchase behaviour
and decision making. As the construct of involvement has a probable role in various
aspects of consumers cognitive and behavioural responses such as information
search, information processing, preference, and decision making, it is considered to be a
construct of pivotal importance in marketing literature.
Involvement reflects the importance of the purchase category to the consumer on the
basis of the inherent needs, values, and interests. As highly involved customers allocate
more time and effort to their search they should be more knowledgeable and efficient in
their cognitive assessments of product or service provider alternatives.When compared to
the less involved customers, the highly involved customers rate decision and benefit
convenience associated to choice decisions and core service experience more favourably.
No relation is expected between involvement and access, transaction, or post-benefit
convenience, as they relate more to the logistics of shopping and physical and emotional
factors, rather than cognitive effort.
Service Convenience Consequences

Some studies indicate that convenience influences a variety of consequences like
behavioural intentions store choice and switching service providers.
Behavioural Intentions (BI): Based on the research by Andaleeb and Basu (1994) and
Szymanski and Hise (2000), we expect service convenience to relate positively to
behavioural intentions such as willingness to recommend.
Stop-n-Shop Retail
Satisfaction (SAT): Based on the monetary and nonmonetary components of a service,

perceptions of service encounter are developed by consumers which might lead to
increase in perceived quality, reliability, fairness, and overall satisfaction. Thus, drawing
from prior research, we expect that service convenience will lead to overall satisfaction.
Retail managers could then develop differential service convenience offering to target
these different customers segments.
There are some in-store stock keeping activities which Stop-n-Shop will carry out to
ensure smooth shopping experience to the customers.
1. Rotation and Moisture protection

Stop-n-Shop Fruits and Vegetables section would be constantly rotated. Also,
some soft perishables are high in water content and they would require a shelf
which is 100% moisture free. Also, some green leafy vegetables require
frequent watering. So, these aspects would be specifically taken care of while
stocking fruits and vegetables.
2. Stock-keeping pattern
This category of products would be stocked on the principle of usage pattern.
The pattern would depend on the type of product. For e.g. the Hair Care
category would have the following split.
Stop-n-Shop Retail
Hair Care
During After
Pre- bath
Bath Bath
Amla Oil
Shampoos Conditioner Hair Oil Hair Gel
(Massages)
The shelves in the gondola would be placed in pre-bath, bath and post-bath
order so that the way they think of their usage coincides with what they find and
make an instant purchase.
3. In-store promotions and visibilities

Stop-n-Shop would have monthly offers/discounts on certain SKUs. The
vendors who give discounts on their products, Stop-n-Shop would add
additional 1-2% from its end for fast-moving products.
There would be various in-store promotions such as

Soft-boards
Soft-boards will be put to display various informational things about the
products to increase product awareness and sales thereby. For e.g. in the
below soft-board advertisements for Baby diapers, a soft board to help
customers know what sizes of diapers to buy for their babies depending on
their ages. The other soft board shows Bollywood actress Kajol endorsing
Huggies.
Stop-n-Shop Retail
Danglers and hangers

Promotions would also be done using danglers, strips or wall hanging as
they catch the attention of customers really quickly.
Secondary visibility
The secondary visibilities like Floor stacks, Floor stack Units, Baskets, Bins
would be placed strategically across the supermarket
Bundling offers
Stop-n-Shop, based on the past trends and seasonal variations, would
couple products to revamp the sales. This would be done to promote new
brands as a sampling exercise.
For.e.g. in the summer season, when sale of fruit drinks is on peak, we can
couple new product (like Ponds white beauty cream) to boost its sales. It
can also be coupled with Ponds dreamflower talcum powder which is a
strong product in the market.
Stop-n-Shop Retail
Free merchandise
Apart from the usual off on MRPs, Stop-n-Shop would offer home utensils or
housewares along with products as these categories of products do not
much visibilities as not many people are observed in this section and hence
low sales. So this way, customer also gets an incentive in terms of a free
product which he/she would not otherwise buy, and the product category
would also get additional visibility.
For e.g. in the below offer, a strong player in the diaper pants category,
Mamy Poko Pants is offering free buckets on its large & jumbo packs.
Stop-n-Shop Retail
Stop-n-Shop Retail
Financials and Annual Projections
Sources of Funding
Debt Financing
The biggest advantage of debt financing is that the lending party does not gain any part of
ownership of our business and our only obligation to lending party is to repay the debt.
Also, repayment of the loan is typically a fixed expense, according the terms of the loan.
Debt financing allows us to have full control of our own destiny regarding our business.
We do not have investors or partners to answer to and we can make all the decisions. we
own all the profit that we make. If we finance your business using debt, the interest we
repay on our loan is tax-deductible. This means that it shields part of our business income
from taxes and lowers our tax liability every year. our interest is usually based on the
prime interest rate. Presuming our due diligence is successful, we present our findings to
the financing sources that have expressed preliminary interest. These sources are
screened to ensure that they are coming to visit our company with a view towards making
an offer within the parameters of our needs. At this point, we are ready to be engaged.
Venture Capitalists
There are billions of dollars in venture capital available to a wide range of businesses at
most stages of development. Venture capitalists are mostly interested in companies that
have a solid track record and are expected to grow by at least 20% a year. They also want
to buy into the company, not just make a loan. In addition to firm ownership, venture
capitalists will also want management input in the form of board seats or executive
positions.
In general, the following characteristics are what venture firms are looking for:
Extraordinary growth potential
Management talent and experience
Proprietary products or services
Stop and shop supermarket will be partly funded by Debt and partly by venture
Capitalist
Stop-n-Shop Retail
As per the growth plan, the financial projections are given below.
Profit & Loss Statement
No of outlets 509 560 616 677 745 820 902 992 1091 1200
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net sales 2000 2420.432 2928.723 3540.617 4285.872 5189.07 6278.774 7595.785 9189.216 11118.02
Cost of sales 1660 1917.642 2214.877 2555.918 2953.274 3413.113 3942.145 4552.26 5256.897 6071.21
Gross profit 340 502.7898 713.846 984.6992 1332.598 1775.957 2336.629 3043.525 3932.319 5046.815
Salary 280.4 323.9198 374.1274 431.7345 498.8543 576.5282 665.8901 768.948 887.9722 1025.522
Incentive 25.65 29.63104 34.22385 39.49355 45.63342 52.73876 60.91327 70.34065 81.22856 93.81116
House Keeping 30.73 35.49949 41.00191 47.31527 54.67115 63.18371 72.97719 84.27166 97.31593 112.3905
Repair and Maintenance 34.43 39.77375 45.93868 53.0122 61.25375 70.79125 81.7639 94.41826 109.0331 125.9227
Electricity 149.21 172.3683 199.0854 229.7401 265.4567 306.7895 354.3419 409.1824 472.519 545.714
Marketing Expense 69.33 80.09045 92.50447 106.7481 123.3437 142.5489 164.6439 190.1254 219.5546 253.5644
Local Conveyance 5.31 6.134145 7.084938 8.175857 9.446919 10.91785 12.61012 14.56175 16.81574 19.42056
Security 33.28 38.44527 44.40428 51.24153 59.20781 68.42675 79.03289 91.26459 105.3913 121.7168
Coupon Charges 6.93 8.00558 9.246444 10.67019 12.32903 14.24872 16.45727 19.00431 21.94596 25.34547
Freight Outward 3 3.465619 4.00279 4.619128 5.337243 6.168276 7.124359 8.226976 9.500416 10.97207
Packing 87.82 101.4502 117.175 135.2173 156.2389 180.566 208.5537 240.831 278.1088 321.1889
Rent 184.88 213.5745 246.6786 284.6615 328.9165 380.1303 439.0505 507.0011 585.479 676.1719
Service Tax @ 12% on
Rent 22.1856 25.62894 29.60143 34.15938 39.46998 45.61564 52.68606 60.84013 70.25748 81.14062
Interest 50.37 58.18774 67.20684 77.55517 89.6123 103.5654 119.618 138.1309 159.512 184.221
Insurance 5.54 6.399843 7.391818 8.529991 9.856108 11.39075 13.15632 15.19248 17.5441 20.26175
Licenses Fees 2.08 2.402829 2.775268 3.202596 3.700488 4.276672 4.939556 5.704037 6.586955 7.607299
Total Expense 991.1456 1144.978 1322.449 1526.076 1763.328 2037.887 2353.759 2718.044 3138.765 3624.972
EBIT -651.146 -642.188 -608.603 -541.377 -430.73 -261.93 -17.1303 325.4814 793.5538 1421.843
PAT -651.146 -642.188 -608.603 -541.377 -430.73 -261.93 -17.1303 227.837 555.4877 995.2901
The Cost of Goods Sold are increasing but not as fast as the sales as we Stop-n-Shop is
highly focussed on operational efficiency. As explained in the Supply chain analysis, we
follow a lean supply chain model and hence procurement & sourcing, replenishment and
operational costs are minimal while giving high quality service to the customers.
Break-Even Analysis
As per the above P&L statement, Stop-n-Shop will reach the break-even in 8th year of its
operation. This is a good accomplishment given that at the beginning it was making losses
Stop-n-Shop Retail
of the order of 651 crores and after 10 years, it is giving a profit of almost 1000 crores.
Stop-n-Shop will grow by 555% after 10 years, which is an astronomical growth making
Stop-n-Shop the WALMART of Indian retail.
Balance Sheet
Below is the balance sheet as of the last day of each year from 2013-2022.
No of
outlets 509 560 616 677 745 820 902 992 1091 1200
As of As of As of As of As of As of As of As of
As of 31st 31st Dec 31st Dec As of 31st 31st Dec 31st Dec 31st Dec 31st Dec 31st Dec 31st Dec
Dec 2013 2014 2015 Dec 2016 2017 2018 2019 2020 2021 2022
Assets
Cash 100 110.0196 121.0216 133.005894 146.3654 161.1002 177.2102 194.8919 214.3418 235.7564
Inventory 500 550.0982 605.1081 665.02947 731.8271 805.501 886.0511 974.4597 1071.709 1178.782
Current
Asset 600 660.1179 726.1297 798.035363 878.1925 966.6012 1063.261 1169.352 1286.051 1414.538
Equipments 10 11.00196 12.10216 13.3005894 14.63654 16.11002 17.72102 19.48919 21.43418 23.57564
Total
Assest 610 1331.238 1464.361 1609.37132 1771.022 1949.312 2144.244 2358.193 2593.536 2852.652
Liability
Long term
debt 500 581 672 775 896 1035 1196 1381 1595 1842
payable to
suppliers 160 176.0314 193.6346 212.80943 234.1847 257.7603 283.5363 311.8271 342.947 377.2102
Retained
Earning+
owners
equity -50 574.2063 598.7269 621.561886 640.8369 656.5521 664.7073 665.3654 655.5894 633.442
Total
Liability 610 1331.238 1464.361 1609.37132 1771.022 1949.312 2144.244 2358.193 2593.536 2852.652
Stop-n-Shop Retail
Cash Flow statement
2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
A.Cash flow from
Operating Activities
NPBT -651 -642 -608 -541 -430 -261 -17.1 325.4 793.5 1422
Adjustments:
Interest(Net) 50.37 58.18 67.2 77.5 89.6 103.5 119.6 138.1 159.5 184.2
Operating profit before - - - - -

working capital changes 600.6 583.8 540.8 -463.5 340.4 157.5 102.5 463.5 953 1606
Adjusted for:
Trade Payables 160 176 193.6 212.81 234.2 257.8 283.54 311.8 342.95 377.2
Inventories 500 550.1 605.1 665.03 731.8 805.5 886.05 974.5 1071.7 1179
Net Cash Generated by

operations 59.37 142.3 257.9 414.34 625.6 905.8 1272.1 1750 2367.7 3162
Net Cash Generated by
operating Activities 59.37 142.3 257.9 414.34 625.6 905.8 1272.1 1750 2367.7 3162
B. Cash flow from

Investing Activities
Acquisition fixed assets 10 11 12.1 13.301 14.64 16.11 17.721 19.49 21.434 23.58
Deposit giving leased
premises 184.9 213.6 246.7 284.66 328.9 380.1 439.05 507 585.48 676.2
Net Cash used in

Investing Activities 194.9 224.6 258.8 297.96 343.6 396.2 456.77 526.5 606.91 699.7
C. Cash Flow
Financing Activities
- - -
Interest(Net) 50.37 58.18 -67.2 -77.5 -89.6 103.5 -119.6 -138 -159.5 -184
Net Cash from - - -

Financing Activities 50.37 58.18 -67.2 -77.5 -89.6 103.5 -119.6 -138 -159.5 -184
Stop-n-Shop Retail
Net Cash Used in Cash

& Cash
Equivalents(A+B+C) 203.9 308.7 449.5 634.8 879.6 1199 1609.3 2138 2815.1 3678
Stop-n-Shop Retail
References
http://www.eeoc.gov/eeoc/statistics/reports/retaildistribution/retaildistribution.pdf
yrclogistics.com
http://www.investopedia.com/
rkswamybbdo.com/
http://rfid.net/best-practices/43-best-practices/203-10-ways-to-improve-productivity-
reduce
The Sustainability Consortiums website,http://www.sustainabilityconsortium.org/

The Earthster LCA pilot study press release,
http://www.greenretaildecisions.com/news/2010/11/18/walmart-pilots-earthster-life-
cycle-assessment-tool
Stop-n-Shop Retail
APPENDIX A
Retail Store Service Design Parameters
While shopping in a retail mart, mark the importance for each of the below Parameters.
* Required
Gender *
This is a required question
Store Music *
1 2 3 4 5
Not Important
Very
Select a value from a range of 1,Not
Important
Important, to 5,Very Important,.
Stop-n-Shop Retail
After Sales *
1 2 3 4 5
Not Important
Very
Important
Home Delivery *
1 2 3 4 5
Not Important
Very
Important
Express Cash Counter *
1 2 3 4 5
Not Important
Very
Important
Food Court Service *
1 2 3 4 5
Not Important
Very
Important
Stop-n-Shop Retail
Staff Behavior *
1 2 3 4 5
Not Important
Very
Important
Layout *
1 2 3 4 5
Not Important
Very
Important
Window Display *
1 2 3 4 5
Not Important
Very
Important
Store Temperature *
1 2 3 4 5
Not Important
Very
Important
Stop-n-Shop Retail
Merchandising Display *
1 2 3 4 5
Not Important
Very
Important
Loyalty Cards *
1 2 3 4 5
Not Important
Very
Important
Parking Facility *
1 2 3 4 5
Not Important
Very
Important
Traffic in Near By Area *
1 2 3 4 5
Not Important
Very
Important
Online Purchasing *
Stop-n-Shop Retail
1 2 3 4 5
Not Important
Very
Important
Product Assortment *
1 2 3 4 5
Not Important
Very
Important

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Stop-n-Shop Retail

Indian Retail Forum

Team Name: NM BizWhiz

Stop-n-Shop Retail 1|Page

Retail business chain overview5

Market Analysis & Customer segmentation9

Expansion strategies, Strategy & Implementation plan13

Sourcing & Supply chain60

Stop-n-Shop Retail 2|Page

1. Queue Management Strategies: One of the biggest problems faced by the

3. Complimentary Services: Services such as wending machines for beverages,

5. Offerings:Introduction of monthly purchase baskets for various price points &

Stop-n-Shop Retail 3|Page

Stop-n-Shop Retail 4|Page

Retail Business Chain Overview

Stop-n-Shop Retail 5|Page

A name reflective of its commitment to offering consumers a StopNShop fulfilling retail

Supermarket StopNShop for you - Conveniently located in neighbourhoods, StopNShop

Own label Food Brands:-

Feasters, Kitchen's Promise, and Best of India

Home & Personal care brands:-

Enriche, 110%, Pestex, Paradise, and Germex

Stop-n-Shop Retail 6|Page

PRESENT STATUS OF THE ORGANISATION

Stop-n-Shop Retail 7|Page

Stop-n-Shop Retail 8|Page

Market analysis & Customer Segmentation

Indias retail market is majorly dominated by the unorganised sector. Organised

Major Retailers in India

Stop-n-Shop Retail 9|Page

Food & Grocery

Tata Group: Tata group is another major player in Indian

also investing in other segments of retail. It will invest Rs.

8000-9000 crores by 2010.

Expansion strategies, Strategy & Implementation plan

1. Wrong Locations + High Rentals

2. Increase productivity, decrease costs & sizing the company right

a. De-emphasize management-centric intellect and provide sequence intellect, in favour

a. Instantly workable computerized information nourishes, compared to complicated

a. Manual data entry

a. 27% increase in yield

Forecasting and MES applications typically schedule reports, or create reports on

a. order completion forecast

Intra-enterprise collaboration: - The classic four-wall operation is on the decline. Even

Such a company requires rich collaboration capabilities; an understanding of product

We will migrate to what we call network-enabled manufacturing, which provides visibility

Predictive and proactive supply chain operations: - Predictive Metrics enables a

Real-time supplier intelligence benefits in several ways:

a. PrioritizationCustomers place orders based upon supplier catalogue lead times.

Real-time visibility from the shop floor: -

a. Which orders are at risk of late delivery?

4. Acquisition of smaller chains to gain retail space

5. Flow Through distribution centre

Vendor consolidation: consolidate purchase orders from multiple suppliers going to a

Import deconsolidation: similar to consolidation, with import deconsolidation the product

6. Surveys to differentiate stores from each store

a. Juhu/JVPD: - Juhu is a catchment area with predominantly cosmopolitan

a. Grinders: - Grinders installed at the groceries floor to facilitate grinding of wheat,

10. Extension into cash & carry

11. Backend infra

Development of backend infra:-

a. F & V sorting centres

13. Online Presence

Methodology of carrying out Internet marketing