RETAIL

MANGEMENT
Simulation
Group 1 - Sec B

APARNA R JAYAN(013)
SRI TEJA CHILUKOTI (019)
AKSHAY PATIL(042)
REUBEN GEORGE MATHEW(048)
RISHABH VERMA(049)
NAVEEN T(090)
 All 4 Rounds: (10 Retailers and 10 products - 5 Focus and 5 Non
Focus)
Stocked the products at retailer end based on 3 factors:
Product Type: Focus(constitute 75% sales) and non-focus
Round Wise

products(25% sales)
Strategy

Retailers Formats(GS, MS etc), it's Margin and Monthly turnover

Value of product(high value product should not stocked to
small retailer) and available inventory of products
R1 & R2:
Slightly reduce the Distributor Margin for focus and non-focus
R3 & R4:
Increased the Salesperson incentives to reduce the retailer
inventory at hand and further force sales
Kept the Retailer and Distributor Margin - unchanged
 Focus Area:
Increase the Market Share
Increase the Profit
Increase Retailer Margin
Simulation

Increase Salesperson incentives and minimize other incentives

Strategy

Key Strategies:
Stocking the Retailer based on forecast and historical
experience
Reduced the Distributor markup price to raise the retailer
margin
Increased the Salesperson incentives to reduce the retailer
inventory at hand and further force sales
Retailer incentives were tried to keep at a minimum by varying
the strategy across focus and non-focus group
 What went Right?
RETAILER MARGIN & INCENTIVE:
DISTRIBUTOR MARGIN & INCENTIVE:

Focused on giving more incentives

to the retailer to make sure our Followed similar strategy as in the

products are sold Retailers case.

MARKET SHARE:

These strategies ate away at the

profit margins, but ensured that we
became the Market Leaders
Room for improvement?
OVERSTOCKING
During the initial phase, we
overstocked resulting in higher
inventory costs
MARGINS > PROFIT?
Providing higher margins meant
lesser profit for us, initially it was loss-
making but we turned it around
 Inventory Management:
Put insights into the forecasted data from previous
sales to minimize the inventory at hand
Incentive Planning:
Insights from
Simulation
Incentives are to be planned accordingly for the items
which are in Focus and for the right medium
Attaining Profits:
Attaining profits from the business is difficult and the
sales has to be increased and relative costs to be
reduced
Competitor Analysis:
Importance of competitor and benchmark analysis to
understand we are pricing correctly and hence
securing proper market share
Thank You!