Part I (identification of the reason for failure) Roll no Name Specialization € 52 Kavita Sambherao Human Resource € 12 Vailankanni Dsouza Human resource Part II (Proposed revival plan) Roll no Name Specialization € 13 Saicharan Ega Marketing € 19 Mayur Jagtap Operations

¾ Subhiksha's target clientele is the middle class: households with incomes in the 50-90 percentile range.€ Subhiksha India·s largest chain of retail store (in terms of number of stores).200-1.500 sq ft ¾ No-frills stores-no air conditioning. ¾ Subhiksha's USP is its price . and cheaper than the hypermarkets. no fancy lighting ¾ No touch and-feel experience (customers have to ask for products at Subhiksha stores) . ¾ Functional outlets no bigger than 1.cheaper than the kiranas.

Job of investment banker in Citi Corp Viswapriya His first company in 1991 Joined Enfield as executive .

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THE ESOP TRUST .

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Subhiksha was a Possession Processing service .

At Subhiksha the level of contact was low .

Service falls in the category of Search attributes as well as experience attribute .

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Entry Shopping Service Payment Exit .

Moment of truth ¾ Difficulty finding something or in the availabilty of the product ¾ Confusions with pricing ¾ At the Cash counters .

€ Desired service level: ¾ ¾ ¾ ¾ ¾ ¾ Low price Quality Availability Employee Response to Customer Needs and Requests Variety Timely delivery Price Lesser than Or equivalent to Kirana Store Qulaity Availability Lesser price 75% Availabilty Quality Lower Price Quality Availabilty € Adequate service level: ¾ ¾ ¾ € Predicted service level: Atleast ¾ ¾ ¾ € Zone of tolerance: ¾ ¾ ¾ .

€ Core Service ² ¾ Retailing of Food & Groceries ¾ Pharmacy € Supplementary Service: ¾ Telecom .

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Subramaniam himself ± Aggressive ICICI venture No proper check and control Huge frauds by their own management people .€ € € € € € Strategy of debt led Rapid expansion No Exit Plan R.

Large-scale looting and ransacking . the stocks were out. Unidentified elements .€ € € € € € Paying huge rentals No proper check and control on operational cost Inventory build-ups The entire supply chain got choked Situations where sometimes the store had very high inventory and at others.

and Rs20 crore against lease rents . € .1. Rapid Expansion Subhiksha owed Rs 35 crore against goods . RS 8 crore against wages . Debt of Rs700 crore at an average interest cost of 12 % annum Unable to circulate the working capital € Going for an IPO in 2007 but shelved it in view of ³uncertain market conditions´.

No clear focus on Product Mix € It moved across different sectors such as Medicine. Food & grocery. Telecom very fast. € .

€ € € € Lack of strong HR policy and Staff Huge frauds by Management Pilferage of goods by employees Lack of motivation .

SERVICE RECOVERY .

Home delivery those who want.€ € € € € € € € € Concentrate on one segment Food and grocery segment The segment with high demand and low price and can be less competitive Can target all segment of market in a vertical Slogan will be ³SUBHIKSHA FOR ALL´ Discounted grocery for low income group Organic food for higher income group and exotic veges. Extended hr for double working families. .

Employees with quality training and happy to help € No pilferage . € Considering both hard and soft skill for performance appraisal € Local manpower and females so majority of buyer ( female) can contact easily. adequate security measure. € .

Female employee as secondary income generator can have low payment € No credit given to customers € .

Customer should be promoted to buy in non peak hour.€ € € € € € € € € Good inventory management Dead inventory should be eliminated Work in clusters of store so as to become close customer and have economies of scale Stock can be rotated from one store to other. . Creating ease in whole purchase procedure to help customer to buy give advantage on cost vs time trade off. Maintain basic facilites and signboard to guide customer. Areas from where customer cant approch store should be facilitate through subhiksha representative linked to main store.delivering goods twice a week. On future part have data for individual home and track demand.

. saving should be indicate in bills.€ € € € € € Marketing should be cost effective and highly effective. Strategies that attract customer and increase purchase like bumper prices. Also caring all type of customer in that vertical Like double income families. It saves time to shop with Subhiksha is should be promoted. Should send message that Subhiksha care for money and time of customer and on stop destination for food and groceries.