Team – Grey

Saransh Kansal-80303180090

Kartik Shandilya-80303170103

Yashica Motwani-80303180125

Manasavi Goel-80303180055

Decisions Taken – Store- A

1. Tobacco- Since the tobacco market is less price sensitive and response to promotion is
very less. Moreover, the sales of tobacco are forecasted to decline by 5-10% in next
quarter and sales of Store A is also predicted to decline by 5% and have kept the
markups same as that of last quarter and doing no promotion.
2. Confectionary – Since the confectionary market is interested in well-advertised
products and services, we have done promotion for 4 weeks and given the discount of
30%
3. Beverage – Since the beverage market is interested in well advertise products, we have
done promotion of 4 weeks and given a discount of 30%
4. Milk and Bread - Since milk and bread is necessity item and is not affected by promotion
we have not given and discounts and have done no promotion
5. Grocery – Since the grocery are purchased to fill emergency needs and is very less price
sensitive and least respond to promotion so we have not done any promotion and have
not given any discounts
6. Snacks food & Ice creams- Customer are interested in well-advertised products and this
market response to promotion is really good so we have done promotion for 4 weeks
and given the discount of 20%
7. General Merchandise- Its sales is influenced by fuel prices and visit to store and
response to promotion is very less we have not done any promotion and have not given
any discounts.
8. Food- Service- Customers are less price sensitive and response to promotion is high so
we have done promotion for 4 weeks and have given discount of 20%
9. Car Wash- Customer usually use wash within local area and price matters and response
to promotion is fairly high so we have promotion for 4 weeks and given discount of 20%
10. Fuel- Price is the strongest selling point and fuel pump attracts more customers and
response to promotion is very high so we have done promotion for 4 weeks and given
discount of 20%.

SINCE MOST OF THE PRODUCT LINES SUCH AS TOBACOO, CONFECTIONARY,

BEVERAGES, SNACKS AND OOD SERVICES ASK FOR LONG HOURS AND BETTER
SERVICES SO WE HAVE INCREASED THE HOURS FROM 12-15HOURS AND INCREASE
THE BUDGET FOR SERVICES.

MOREOVER, SINCE MARKET HAS JUST COME OUT OF RECESSION SO CUSTOMERS WILL
INTERSTED IN OFFERS AND DISCOUNTS SO WE HAVE INCREASED THE ADVERTISING
BUDGET TO 0.5% OF TOTAL REVENUE IN ORDER TO INCREASE SALES.
INORDER TO PROVIDE BETTER INSTORE SERVICES TO THE CUSTOMERS WE HAVE
INCREASED THE TEMPORARY WORK HOURS TO 3500HRS AND TRAINING PER PERSON
COST OF PERMANENT AND TEMPORARY WORKERS TO 80% AND 70%.

WE ALSO HAVE CHANGED THE MANAGEMENT TIME BETWEEN STORE TO 50%,

GENERAL DUTIES, MARKETING, FINANCE TO 30% AND PERSONNEL TIME ALLOCATION
FOR SALES AND CUSTOMER RELATIONSHIP TO 35% , CASHIER TO 25%.

FOR ALL THE PERISHABLE TO ITEMS WE REDUCED TO INVENTORY AND FOR ALL THE
ITEMS WHICH HAVE HIGH DEMAND AND ARE NOT PERISHABLE WE HAVE INCREASED
THE INVERTORY.

WE HAVE NOT INVESTED IN STORE A SINCE IT IS WELL BUILD AND ONLY PROBLEM
CUSTOMER HAVE WITH STORE A IS LESS OPENING HOURS WHICH WE HAVE
RESOLVED.
Decisions Taken – Store- B
1. Tobacco- Since the tobacco market is less price sensitive and response to promotion is
very less. Moreover, the sales of tobacco are forecasted to decline by 5-10% in next
quarter so we have kept the markups same as that of last quarter and doing no
promotion.
2. Confectionary – Since the confectionary market is interested in well-advertised
products and services, we have done promotion for 2 weeks and given the discount of
10%
3. Beverage – Since the beverage market is interested in well advertise products, we have
done promotion of 2 weeks and given a discount of 10%
4. Milk and Bread - Since milk and bread is necessity item and is not affected by promotion
we have not given and discounts and have done no promotion
5. Grocery – Since the grocery are purchased to fill emergency needs and is very less price
sensitive and least respond to promotion so we have not done any promotion and have
not given any discounts
6. Snacks food & Ice creams- Customer are interested in well-advertised products and this
market response to promotion is really good so we have done promotion for 2 weeks
and given the discount of 10%
7. General Merchandise- Its sales is influenced by fuel prices and visit to store and
response to promotion is very less we have not done any promotion and have not given
any discounts.
8. Fuel- Price is the strongest selling point and fuel pump attracts more customers and
response to promotion is very high so we have done promotion for 2weeks and given
discount of 20%.

SINCE MOST OF THE PRODUCT LINES SUCH AS TOBACOO, CONFECTIONARY,

BEVERAGES, SNACKS AND OOD SERVICES ASK FOR LONG HOURS AND BETTER
SERVICES SO WE HAVE INCREASED THE HOURS FROM 12-13HOURS AND INCREASE
THE BUDGET FOR SERVICES.

INORDER TO PROVIDE BETTER INSTORE SERVICES TO THE CUSTOMERS WE HAVE

INCREASED THE TEMPORARY WORK HOURS TO 1800HRS AND TRAINING PER PERSON
COST OF PERMANENT AND TEMPORARY WORKERS TO 100% AND 50%.
FOR ALL THE PERISHABLE TO ITEMS WE REDUCED TO INVENTORY AND FOR ALL THE
ITEMS WHICH HAVE HIGH DEMAND AND ARE NOT PERISHABLE WE HAVE INCREASED
THE INVERTORY.

WE HAVE INVESTED IN STORE B SINCE IT WAS MENTIONED THEN STORE B WAS NOT
ABLE TO ACHIEVE TARGET SALES DUE TO LACK OF MAINTENANCE AND MAINTANANCE
OF STORE B HAS NOT BEEN DONE FOR MANY YEARS.

FOR STORE C WE HAVE NOT INVESTED IN BECAUSE IT TAKE ATLEAST 3 MONTHS TO

GET IT STARTED AND WE WANT TO INCREASE THE PROFITS FOR NEXT QUARTER AND
WE ALSO FEEL THAT INVESTING IN STORE B IS BETTER OPTION RATHER THAN
INVESTING IN A NEW STORE BECAUSE IT STORE B IS GIVING GOOD SALES AND IF WELL
MAINTAINED CAN INCREASE SALES AND GIVE MORE PROFITS.

RESULTS: -

1. Total net sales profit has been increased by 4.7%

2. Due to the reduction in the number of inventories for future, we cut upon the
inventory because of the recession period. Specially in milk and bread we did not
keep any inventory.
3. We have lost a chunk of the market share of the groceries because we did not keep
enough inventory and also the layout was not as per the requirements of the
customers.
4. The merchandising effectiveness has reached new levels because we invested a lot
in promotion based on the market report and requirements given in the case study.
5. There has been a significant fall in the change in the number of customers because
we did not keep enough inventory to satisfy all the needs.
6. The net income of the store has been showing signs of growth in the recession
period because of promotional techniques and discount as well as the remodeling of
the store.