GIRISH FOOD STORE-CASE STUDY GROUP – ADRENALINE GROUP MEMBERS Adil Merchant 4 Ambreen Khan 11 Bhupesh Shelar 25 Fawaz Ansari 58 Shadath Mansoori 92 Zaid Khan 116 Zubair Khan 120

Task Suggest an assortment based on competitive strategy for Girish to meet the challenges posed by Kirana stores & Hypermarkets

OVERALL DATA ANALYSIS

Category break up

Grocery

Essentials (Bulk ordering) Beverages (Direct consumption) Sub categories Essentials (Bulk ordering) Beverages (Direct consumption) Fast moving (2-3 days) RTE foods (7-14 days) Impulse products Occasional Flour/meal Beverages/carbonated Cereal/other breakfast food Canned fruit Candy Desserts Oils/shortening Bottled water Tea Dried fruit Baking mixes/pancake mixes Sugar Juices/drinks Bread Fruit drink mixes Baking needs Salt/spices Cookies Prepared foods Milk Salad dressings Snacks Soup Baby Food/formula Dried vegetables Milk modifiers Syrup Coffee Sauces Pickles Jams/jellies/spreads Pasta products

Essentials These are items that are bought in bulk and stocked for a long time Item GM(%) GMROF Sugar 15.18 316.75 Salt/spices 38.17 289.56 High GMROF of sugar indicates better stocking pattern of sugar Salt/spices have a high gross margin but less GMROF thus better stocking by reviewing space could lead to higher GMROF

Beverages/carbonated These are beverages which can be consumed directly Item GM (%) GMROF Beverages/carbonated 3.11 42.92 Bottled water 30.76 116.21 Juices/drinks 21.99 205.78 Carbonated has highest sales contribution of 11.16% but the lowest GM thus it is important to attract customers but space could be better utilized to increase GMROF Bottled water has highest GM thus we could run offers on it

Cereal/other breakfast food Fast moving products Usually brought twice a week Biggest sales contributor to the store Item GM (%) GMROF Cereal/other breakfast food 17.72 480.49 Tea 16.09 301.54 Bread 25.70 397.50 Cookies 26.50 220.67 Milk 13.61 105.11 Snacks 28.39 345.62

Contd.. Cereal/Breakfast Cereal/breakfast has the highest GMROF thus more ranges could be added as it is the highest contributor Pricing should be reviewed to increase share Could be kept with RTE foods to increase their visibility Milk Keeping milk should be reviewed since it has low sales contribution, low GM and also has highly perishable nature Baby food/formula These could be stocked at the end since they are essentials it would help in visibility of other categories

RTE foods These are processed, ready to eat foods which are characterized by a average healthy gross margin of 23% These are bought every 7 to 14 days Item GM (%) GMROF Dried fruit 30.41 129.13 Coffee 17.44 96.67 Pickles 32.00 190.92 Pasta Products 33.11 146.55

Analysis RTE Dried fruits They have the lowest sales contribution of 0.16% but high GM and GMROF Safety stock can be increased from 8 to 14 and SKU’s / varieties could be increased They occupy minimal space hence GMROF could be increased Coffee Space should be utilized properly to increase GMROF of coffee from 97 to near subcategory average of 157 Pickles and Pasta Both have high GM and GMROF thus the product mix should be reviewed to give higher sales from these two

Impulse product Item Weekly sales GM (%) GMROF Candy 682 32.66 231.17 Have high sales but not significant contribution (3.5%) to sales Have high Gross margins, thus makes it an ideal gift product We could take a little hit in margins and give it as a gift, more for less to increase the inventory turnover

Baking mixes/pancake mixes Occasional products These are bought only for certain occasions in this case recipes Item GM GMROF Desserts 22.63 155.75 Baking mixes/pancake mixes 17.48 124.81 Baking needs 25.32 209.21 These products are going to be bought only for certain occasions thus our objective is to increase the usage By offering trial packs and more Sku’s we can increase the usage and induce trials

Overall strategy for grocery Staples Niche Variety enhancers Fill ins Frequency Penetration

Staples Niche Variety enhancers Fill ins Beverages/carbonated Soups Pickles Desserts Bread Prepared foods Jam/jellies/spreads Baking mixes/pancake mixes Snacks Baking needs

Merchandize

Subcategories Hair care Oral care Men’s Personal care Women’s personal care General personal care Conditioners Oral care accessories After shave FB deodorants Hand wash Hair colors Toothbrush Cartridges Body lotions Shower gels Hair creams Toothpaste Razors Body oils Skin care accessories Hair gels Toothpowder Shaving brushes Cosmetic bleaches Skin creams Hair oils Shaving creams Face cleansers Sunscreens Hair powders Shaving foams Face wash Body wash Shampoos Shaving gels Hair removers Soaps Sanitary pads Talcs

Hair care products Item GM(%) GMROF Hair colors 27.11 313.15 Hair oil 16.71 192.97 Hair powders 27.00 309.84 Shampoos 20.32 234.71 Shampoos have the highest sales with 14.6%, we could add more ranges and sku’s to move it faster Hair color has the highest GMROF in this subcategory and thus space is properly utilized Hair oil has 6% sales contribution but the GM is only 16.7% it must weed out slow movers and review the product mix Hair powder has the least sales contribution but has high GM and GMROF thus a slight cut in margin can be taken to increase promotional sales and club it with hair oils which is the second most fast moving product of the sub category

Oral care products Item GM(%) GMROF Oral care accessories 13.40 155.56 Toothbrush 33.10 382.22 Toothpaste 13.42 155.06 Toothpowder 14.46 167.35 Toothbrush has low sales contribution of 2.2% but offers high GM and GMROF, thus its margins could be reduced a bit and tagged along with toothpaste which has sales contribution of 8.3%, for a promotional offer Oral care Accessories and Tooth powder have sales contribution of 0.02% and 0.06% respectively and also do not offer high GMROF, thus they could be dropped from the assortment

Men’s Personal care Item Sales contribution GM (%) GMROF Razors 4.04% 26.16 302.20 Shaving brushes 0.18% 25.11 290.85 Shaving Brushes have lows sales contribution but give higher GM and GMROF They can reduce the margin on brushes and club it with razors which has highest sales contribution in the subcategory All the products in this sub-category occupy minimal space thus could be displayed at end of aisle or stocked in a vertical fashion

Women’s Personal Care Item GM (%) GMROF FB deodorants 28.34 327.32 Body lotions 20.65 238.55 Face wash 26.64 307.67 FB deodorants has 6.9% sales contribution as well as high GM and GMROF, more ranges should be added and price should be reviewed Body lotions has the highest sales contribution in the sub category (11.5%) but does not match it with high GMROF, the space should be reviewed and the slow moving categories should be removed Face wash has low sales contribution (1.5%) but offers higher GMROF, the product mix should be reviewed and more fast moving SKU’s should be added to increase sales

General Personal Care Item GM (%) GMROF Shower gels 14.74 170.14 Soaps 26.57 306.89 Talcs 29.06 335.76 Shower gels have low sales contribution of 0.17% also do not offer high GM,GMROF thus the product can be eliminated form the assortment Soaps have a high sales contribution of 15.6% and also offers high GM,GMROF thus the current efforts should be continued and price could be reviewed to increase the GM Talcs have a low sales contribution of 3.3% but offers higher GMROF, thus it could be tagged with soap by taking a cut in margin since both are complimentary products, the product mix needs to be reviewed

Overall strategy for Merchandize Staples Niche Variety enhancers Fill ins Frequency Penetration

Overall Strategy Staples Niche Variety enhancers Fill ins Soap Hair colors Hair oil Shower gel Toothpaste Face wash Skin creams Hair powder Shampoo

Assortment strategy for GFS Sleeper (HL) Talcs, Face wash, Skin creams, Hair oil, Soup, prepared foods, Sauces Winner (HH) Cereal/breakfast, FB deodorants, shampoos, soaps, Body lotions, Toothpaste GROWTH Questionable (LL) Shower gels, Oral care accessories, Toothpowder, Milk Morning store (LH) Beverages/carbonated, Bread, Candy, Salts/spices SHARE

Category Management Tactics Category role Category tactics Assortment Pricing Shelf Position Destination Cereal/Breakfast Value pricing Along with RTE Preferred RTE foods, General Personal care Differentiated pricing End of the aisle, Near ‘Winners’ Seasonal/Occasional Desserts, Baking products Promotional pricing Checkout counter, promotional counter Convenience Bread, Snacks, Carbonated, Men’s personal care Going rate pricing Occupy minimal space, stocking more important than visibility

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