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Contents:

• Background
• Problem Statement
Case Analysis: • Alternatives
WeRetail • Criteria chosen
• Evaluation of alternatives
• Recommendation
• Implementation plan
Background:
WeRetail is a chain of retail stores in India. They are into the business of selling
electronic devices. Currently, the number of physical outlets/ stores with them is 750.
Their annual sales is around $10.2B, 90% of which is through physical stores, and 10%
through their website.
WeRetail has been a strong performer when it comes to direct selling through their
stores but is facing increasing competition from online competitors. Customers are
slowly moving towards purchasing from websites and hence WeRetail is at a
disadvantage here. The revenue earned by WeRetail has declined by 10% and the
profits have declined by 20% in the past year.

Problem Statement:
How to increase the revenue and profits earned by WeRetail
Alternatives:
The following alternatives are available for WeRetail in order to improve its
performance-
• Focus on promotion of online outlet: Increase budget for promotion of
website through reduced direct selling
• Focus on improving effectiveness of physical outlets: Direct selling efforts
targeted at increasing sale of high amount items

Criteria chosen:
The criteria chosen to evaluate the alternatives are profitability, reach, sales and
customer relationship.
Evaluation of alternatives:

Focus on online outlet Focus on physical outlets

Profitability Increase due to reduction in labor cost Increase through increased sales of high
amount items

Reach Increase as more customers prefer to May not increase as customer base is more
shop online interested in online platforms

Sales Increased sale of simple items Increased sale of high amount items

Customer relationship May not be impacted Positive impact as direct selling efforts are
focused on improving customer
understanding
Recommendation:
Focusing on promoting the online outlet would be a better option since it
performs better on the criteria evaluated. By focusing efforts on the performance
of the website, WeRetail would be able to capture customer interest, which
would increase sales. The resources spent on direct selling in physical outlets can
be redirected to promotion of the online outlet.

While profitability may increase by some amount if focus is on improving the


physical outlets through selling more of high amount items, it would be more
profitable to focus on the online outlet.
Implementation plan:

• Directing resources from focusing on direct selling to promotion of website


• Increase digital marketing efforts:
- Social media marketing to promote awareness about the website on various
platforms
- Video marketing by posting videos on YouTube to explain the features of high
amount items
- Website marketing by making the design of the website more attractive and
improving ease of understanding and navigation
• Focus on ease of transaction such as digital payments while opting for online
mode of purchase
Thank you

Done By
Shreya Narayanan
2111267

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