You are on page 1of 13

A case study on Store-24

Submitted ByRobab Mirza Priya Chaturvedi Raunak Kurl Shashank Gupta Aditya Tandon Komilla Singh Sumiti Singh Disha Sharma Deepak Singh Negi

Out of 75 stores. of stores in: 1.About STORE -24   4th largest convenience retailer store in New England.  Differentiation strategies :  Ban boredom  Cause you just can’t wait . Urban areas: 30 2.  Focus : optimizing existing sites through emphasis on store-level marketing & operation. no. Sub-urban areas: 45  Stores were similar with respect to many aspects of their operations.

Aimed at Greater loyalty Provides autonomy to store managers. Increased interactions between employees and customers.DIFFERENTIATION STRATEGY OF STORE-24 BAN BOREDOM       Fun and entertainment experience Creative in-store atmosphere End-caps – contained high margin products. .

DIFFERENTIATION STRATEGY OF STORE-24 CAUSE YOU JUST CAN’T WAIT       Fast and friendly service Efficient service High in-stock positions Store cleanliness High – quality Freshness of foods and beverages .

PROBLEMS AT STORE-24 Ban boredom strategy  Was it a promising strategy? Or  Does it need an improvement at implementation level? .

BALANCED SCORECARD: The Performance Measurement System Performance measures were organized around the four traditional balanced scorecard perspectives     Financial measures Customer measures Internal measures Learning & growth measures .

• Growth in sales • Days inventory for general merchandise • Corporat e • Store • Store • Store • store .CAUSE AND EFFECT RELATIONSHIP PARAMETER MEASUREMENT LEVEL Financial perspective • Return on capital deployed • EBIT • Gross profit growth • Sales growth • Inventory turnover • EBIT divided by value of equipment & leaseholds • Contribution less lease cost • Growth in gross profit from same quarter in prior yr.

PARAMETER MEASUREMENT (based on telephone survey) LEVEL Contd… • Corporat e • Corporat e • Corporat e • Corporat e • Corporat e Customer perspective • Loyalty • % would • Primary store recommend convenience store24. • Enjoyable • % stating store24 experience as their primary • Product/servi convenience ce attributes • % viewing it as • Customer fun &/or relationship entertaining place • Brand image to shop • %viewing that it serves products of high quality • % viewing it as established and recognized brand. .

of loyal customers • • • • Store Corporate Store corporate . • No.PARAMETER MEASUREMENT LEVEL Internal process • Operational excellence perspective • Walk-through audits • Concept • Store leveldevelopment/in compliance with novation those of • Customer operational management standards • CSR • Net gross profit from new concepts.

of years store capital employees has • Organization been with sore24.PARAMETER MEASUREMENT LEVEL Learning and Growth perspective • Human capital • Skill rating of (mgmt. capital • Use of front and back office technology • Need of new technology Contd … • Store ./crew skills store manager& • Regional & tenure) employees. • corporate • Information • No.

FLAWS OF STRATEGY AND IMPLEMENTATION FLAWS OF STRATEGY AND IMPLEMENTATION Perspective Elements Flaws Recommendations 1. • Retention should be focused. Managers/crew skills Each one of them were not equally talented & experienced. No or very little focus on product range • Separate promotional strategy for different geographic location. • Focus should be on the needs of different target customers. 2. . • Training needs should be identified • Only experienced personnel should be allowed to initiate customer service. Demographic factor 3. Product selection Stores were similar across different cities.

adventures. Employee satisfaction • Employees with low skill-sets were not able to identify themselves with it.Perspective Elements 4. Recommendations • Separate promotional scheme for different age groups. • More frequent visits should be managed. • Bi-annual visits • Proper focus should be on employee satisfaction and their motivation. Contd… 5. Positioning of ban boredom strategy Flaws • Failure to relate it with customer’s need and value proposition. • Apart from products “end-caps” should include services like games. 4. Strategy implementation .