Name – Sri Ganesh General Store

Address – Bantala Chawk, Angul, Odisha

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Introduction:

Sri Ganesh General store is small size grocery store in a small village called “Bantala”. It has the
benefit of place as it is situated in the center of the market with less number of competitors.

Drivers of Profitability –

Inventory Days –

He stores most of his product in his shop and some products in his home The average number of
days to clear the inventory is around 8-10 days.

Stock Turnover:

His stock turnover for branded packaged product is 95% but for local and unpacked products it falls
down to 85%. And during festive seasons due to high sales, he keeps more products in his inventory

Margin:

He said that generally he keeps a margin of 5% for product up to Rs 100 and 10% for products up to
Rs 1000 and he added that the gross margin increases with increase of sales and quantity. He also
added that the gross margin for local products is much more that branded ones.

Revenue from Display-

He said that companies give more incentives if they display their hoardings and Advertisements. And
some distributors also give them more commission for displaying their product upfront and make it
more visible instead of their rival companies. He said that most of sales are because of his face value
and better display

Trade Promotion:

Some of trade promotion strategy done by distributors:

1.Signs, banners and posters

2.Special display racks

3.Floor stickers

4. Product demonstrations

5. Providing volume and price discounts, if they will buy in large quantity

And for the trade promotion of the shop, he said that word of mouth is enough because “Bantala” is
a very small place and availability of all products is very low and he owns one of the renowned
grocery shops in the area.

How do they compare different brands owner and company from the service point of view
or profitability?
He prefers to deal with different brands owner and company from the service point of view
because as it is a remote area so availability of product in time is more important than
profitability
Experience with CSM/DSM –
The shopkeeper doesn’t have direct contact with CSM but he deals with DSM who informs him
about new discounts, competition and all. Due to low competition in the area he has less bargaining
power