You are on page 1of 10


The new economy came in Srilanka in late 1970 but more markedly in the 1990. It is the growth and development of the countrys trade structure. The marked expansion of the urban informal sector was characterized by the proliferation of retail and wholesales outlets which catered to a new consumer who was influenced by the television. As a result of it, international megabrand began to dominate the countrys trade landscape. The increasing number of supermarket characterize the development of the modern trade.


The increasing patronage of modern trade channels suggests that one could expect a movement away from traditional to modern channels next five year. It immerged a modern trade channel and removed the traditional channel.


The context:- The company recognized that a large

number segment of population was willing to shop in the supermarkets due to a number of key store attributes.

Perceived opportunity:- The company had gained a

considerable experience in managing a modern trade channel which has acted by the more affluent in the city. The company did realize that consumers visit multiple types of shops.


The research:-The research finding pointed to a

sizable market for a second line supermarket which offered value for money, appealing to the larger market of consumers, especially of the lower socio-economic classification. The company had also gathered evidence that the shoppers, in general were likely to stick to the traditional channels in regard to particular products.


The Proposition:- The store was not to be called a

supermarket lest consumers equate it with a leading, up market. The research study had identified the typical basket size and composition of the target consumers-that 20 per cent of core products, which would not only account for more than 80 per cent of the revenue. The super fair outlets were limited to 2800 stock holding units, as against the regular supermarket which offers over 7000 SKUs. Limited on capital expenditure were imposed in line with the concept of a no frills, scaled-down supermarket. As a result, the total cost of setting up the super fair was only a fraction more than half the cost of a typical supermarket.

Secondly, an outsourced labour arrangement was put in palace. The objective here was to simplify labour procedures and minimize labour management.

customers per day. Induced customer trial is the novelty of the store and the equity of the companys corporate brand. Customer satisfaction was low. Customer complained about the limited product range.

Result:-The basket value per customer was Rs. 600 for 500


It was evident that the shop staff was ill-equipped to serve the customers. They were insufficiently trained to meet the demands of customers. The poor product knowledge and the lack of basic communication skill of the staff, made a bad situation worse. The limited product range and the own label products failed to appeal to customers, which was coupled with poor customer service and the absence of a price advantage to the customer. The fruits and vegetables could not retain their freshness due to lack of open chiller and they appeared rather old and withered. So, survival of super fair appeared increasingly difficult. It became evident that this was an endeavour that had gone wrong.

Customer dissatisfaction was mounting too. The company thought that there was only one prudent course of action. So, super fair stores refurbished and incorporated into the company larger supermarket chain Today, the lessons learnt by the company through the super fair saga have successfully applied to the management of the companys mainstream supermarket operation.


ROLL NO.5148 To 5156 SEC-C PGDM (SEM-I)