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TEAM 33
Aydan Masmalizadeh
Azad Bagirov
Shahlar Bayramov
Farid Akberov
Overview
1
Market Environment
2
Marketing Strategy

3

4

5

6

Financial Analysis

Risk and Mitigation

Conclusion
Competitive Market
Funding
Requirement

Objectives

Retail / Grocery

Focus on quality & service

Increase Market Share

Keep the Chain Viable
Twin city
Lancaster St
Marlborough

Kingston

The Older
Conventional

Market Squares

Overview

Environment

Marketing

Financial

Risk

Conclusion
Decision Tree

Expand Slowly

Expand Rapidly

Derry

Hingham
Key factors

Expansion Rapidly

New Market Square

1

7

Competition
Up-front cost

Differentiation
Size of market
Sustainability
Positioning

Total
Restructure

1998-1999

Penetrate &
Develop

2000-2005

Expand

2006-2008

Increase efficiency, develop performance

Grow faster, acquire business
New geographies, developing profitability
250

# of stores

200
150

100
50

0
-50

0

1

2

3

4

Size: 1991 Revenues in bill

5

6
Demand

Market
Strategy

Distribution

Funding
Demand

Market Strategy

Distribution

Funding

25.00%
20.00%
15.00%
10.00%
5.00%

0.00%
under 14

15-24

25-34

35-44

45-54

55-64

65+
Demand

Market Strategy

Distribution

Funding

25.00%
20.00%
15.00%
10.00%
5.00%

0.00%
under 14

15-24

25-34

35-44

45-54

55-64

65+
Demand

Market Strategy

1998
• Specialize
• Differentiate
• Personalizes

Restructure

Distribution

Penetrate
• Quality-driven
• Go niche
• Grow faster

2001

Funding

2005
• Extend scope
• Greenfield
• Expand
synergies

Expand
Demand

Depend on
Supervalu
• Flexible
• Meet our
needs
• Greater
efficiency

Market Strategy

Distribution

After 5 years

• Increase
sales volume
• Expand
markets

Funding

Integrated firm

• Own
wholesalers
& retail
• Decrease
cost
Demand

Market Strategy

Supplier

Funding

Retail Store

Supplier

Supplier

Distribution

Wholesaler

Retail Store

Retail Store
Demand

Market Strategy

Partnership

Vote
authority

Funding

Distribution

Capital Market





Fleet financing
Bank Loan
5 Years
NPV
$1,484
$1,600

Thousands

$1,400

$894

$1,200
$1,000
$800
$600
$400

$49

$200
$0
Derry

Hingham

Derry & Hingham
IRR
25%

21%

20%

14%

15%

10%

3.3%

5%
0%
Derry

Hingham

Derry & Hingham
PP
3.7

3.5

4

3.5

2.5

3
2.5
2
1.5
1
0.5
0
Derry

Hingham

Derry & Hingham
Thousands

by changing sales 10%

3000
2000
1000
0
-1000
-2000
-3000
-4000
-5000

optimistic

base

pessimistic
Competition
Choosing Derry, reject Hingham

Short-term Financing
Increase sales volume

Economic downturn

Cost Control, Consumer Loyalty
1998-1999
Set up just one
store Derry

2000-2005
Increase market share

2006-2008
Continue to expand

-variety of products and
services
-USP
-POSITIONING
What if expansion fails?
Continuous Customers $ 25
<
Already Trained Staff
Lower Cost of Switching Higher

$117 <$177
Strategic Points of Difference
Feed family real food
From our family to Yours

Most
Cleanest
Friendly
Personalized
Service

Socially
Responsible
Exciting
Shopping
Victory supermarkets expansion strategy

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Victory supermarkets expansion strategy

Editor's Notes

  1. Animated dotted line with fade-in text(Basic)To reproduce the text effects on this slide, do the following:On the Home tab, in the Slides group, click Layout, and then click Blank.On the Insert tab, in the Text group, click Text Box, and then on the slide, drag to draw a text box that spans the entire width of the slide.On the Insert tab, in the Symbols group, click Symbol. In the Symbol dialog box, do the following:In the Font list, select (normal text).In the Subset list, select General Punctuation.In the Character Code box, enter 2022 to select BULLET, and then click Insert.Click Insert 33 more times until there is a row of 34 bullets in the text box. In the text box, select the text, and then on the Home tab, in the Font group do the following:In the Font list select ArialBlack.In the FontSize box select 44 pt.In the FontColor list, under ThemeColors select White, Background 1 (first row, the first option from the left).On the Home tab, in the Drawing group, click the arrow below Arrange, under PositionObjects, point to Align, and then do the following:Select Align to Slide.Select AlignCenter.Select AlignMiddle.On the Insert tab, in the Text group, click TextBox.Drag to draw a text box on the slide.Enter and select the text.On the Home tab, in the Font group do the following:In the Font list select Corbel.In the FontSize box enter 50 pt.In the FontColor list, under ThemeColors select White, Background 1 (first row, the first option from the left).Click Bold.On the Home tab, in the Paragraph group click Center.Select the second text box.On the Home tab, in the Drawing group, click the arrow below Arrange, under PositionObjects, point to Align, and then do the following:Select Align to Slide.Select AlignCenter.Select AlignMiddle.To reproduce the background effects on this slide, do the following:Right-click the slide background area, and then click Format Background. In the Format Background dialog box, click Fill in the left pane, select Gradient fill in the Fill pane, and then do the following:In the Type list, select Radial.Click the button next to Direction, and then click From Center (third option from the left). Under Gradient stops, click Add or Remove until two stops appear on the slider, and customize the gradient stops as follows:Select Stop 1 on the slider, and then do the following:In the Position box, enter 0%.Click the button next to Color, and then under ThemeColors select Blue, Accent 1, Darker 25% (fifth row, fifth option from the left). Select Stop 2 from the list, and then do the following: In the Position box, enter 100%.Click the button next to Color, and then under ThemeColors select Black, Text 1 (first row, second option from the left).To reproduce the animation effects on this slide, do the following:On the slide, select the first text box (containing the bullets) and do the following:On the Animations tab, in the Animation group, click the More arrow to expand the effects gallery, and then under Entrance, click Fly In.In the Animation group, click Effect Options. Under Direction, click From Left. In the Timing group, do the following:In the Start list, select WithPrevious.In the Speed list, select 00.50.In the Delay box enter 10.In the Advanced Animation group, click Animation Pane. In the Animation Pane, do the following:Click the arrow at the first animation effect (bullet entrance effect) and click Effect Options.In the Fade dialog box, on the Effect tab, click the arrow at the Animate text list and click By Letter.In the % delay between letters box enter 10.In the Advanced Animation group, click AddAnimation, and under Exit, click Fade. In the Animation group, click Effect Options. Under Direction, click From Left.In the Timing group, do the following:In the Start list, select WithPrevious.In the Speed list, select 00.50.In the Delay box enter 00.10.Click the arrow to the right of the fade exit effect (second effect) and select EffectOptions. In the Fade dialog box, do the following:On the Timing tab, and then under Enhancements do the following:In the Start list ,select WithPrevious.In the Speed list, select 00.50.In the Delay box, enter 01.50.In the Animation Pane, do the following:Click the arrow at the second animation effect (bullet exit effect) and click Effect Options.In the Fade dialog box, on the Effect tab, click the arrow at the Animate text list and click By Letter.In the % delay between letters box enter 10.On the slide, select the second text box (containing text), and do the following.On the Animations tab, in the Animation group, click the More arrow to expand the effects gallery, and then under Entrance, click Fade.In the Timing group, do the following:In the Start list, select WithPrevious.In the Speed list, select 00.50.In the Delay box enter 02.00.In the Animation Pane, do the following:Click the arrow at the third animation effect (text entrance effect) and click Effect Options.In the Fade dialog box, on the Effect tab, click the arrow at the Animate text list and click By Letter.In the % delay between letters box enter 6.
  2. MILESTONE or recommendation1998-1999- Restructure –the business, improve profitability 2000- 2005- Penetrate home market &amp; Develop in new market –increase market share 2006-2009- Expand – to new geographies
  3. family owned and run company Intense competition in their marketDoes not have own distribution centerSmall town focus
  4. in a short term we need Supervaluu, but in a long term we&apos;ll own our distribution2. now economic is recovering and andint rates are suitable for us, by this project we increase our cash flow and pass to long-term financing3. now Us economy is recovering, but even if it comes back however if even we lose 5 % market share, we&apos;ll gain from low interest rates
  5. to set up just one store Derrymodernization of older onescontinuation of expansion