This case is written by Anubhav Sood, PGP student of IIM Raipur. It is solely for the   discussion purpose though some ins...
Presently Raipur city has four malls located at different locations throughout thecity. Out of these four malls, three alr...
The other mall, Mosaic, is under construction in the Naya Raipur city. The mall ispart of an urban housing and commercial ...
Amara Bazaar is looking for various other queuing options so as to minimizecustomer waiting time and also optimize the use...
3) Based on the format of the store the marketing team was to suggest the      Merchandising Strategy. The team was to sug...
Other stores  S.                                                                             (not       Mall Name         ...
Total                            Counter            Start   End                                      Status               ...
EXHIBIT 1: Raipur city map showing location of various malls. The colours represent population                            ...
GUIDELINES   1. Deadline for submission of case analysis is 2359 hours on 12th Feb’13.   2. Reasonable assumptions can be ...
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Xploryze 2.0 case

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Xploryze 2.0 case

  1. 1. This case is written by Anubhav Sood, PGP student of IIM Raipur. It is solely for the discussion purpose though some inspiration may be drawn from some real life situations but it is not to show the effectiveness or ineffectiveness of any individual or organization. Copyright © Indian Institute of Management Raipur AMARA BAZAAR’S FORAY INTO RAIPUR Raipur city is the capital of the state of Chattisgarh. As per 2011 census, RaipurMunicipal Corporation has a population of 10, 10,087 and it sprawls over an area of 226 sqkm. The population includes people from diverse backgrounds and origins including ethnicChattisgarhis, North Indians, South Indians and few North-east Indians also. The city is thehub of continuing trade and commercial activities with a host of core industries settledaround it. It has also emerged as the largest growing urban settlements in Chattisgarh. In the recent past, government of Chattisgarh decided to build the city of NayaRaipur which is the new capital city of the state. It is situated at a distance of around 15 kmfrom the current city and is spread over an area of 80 sq km. It will be India’s fourth plannedcapital city after Chandigarh, Gandhinagar and Bhubneshwar. In Naya Raipur, it is proposedto use 30% of the land for residential and economical purposes and 23% of the land foreducational institutions, government offices and public auditoriums. Though presently thisplace serves as the administrative centre of the state government and is underdevelopment, it is expected to house around 4, 50,000 people in ten years time. Amara Bazaar is head quartered in Kolkata and started its business by opening itsfirst retail store in Kolkata 12 years ago. Over the time it tasted success and expanded intoNorth eastern states where they have total of 12 stores. At present, apart from these storesthey have another three stores in West Bengal, three stores in Jharkhand and another twoin Orissa. Inspired by the new found commercial and infrastructural growth in Raipur, AmaraBazaar is planning to open a new retail store in Raipur.INDIAN INSTITUTE OF MANAGEMENT RAIPUR 1
  2. 2. Presently Raipur city has four malls located at different locations throughout thecity. Out of these four malls, three already house one or the other type of retail store whichinclude Big Bazaar & Easy day. The details of these stores as given in table 1 and exhibit 1shows the location of these malls in the city. Amongst these three retail stores, presently the Big Bazaar store located at CityCentre mall sees the highest footfalls. It is located at the central location in Raipur city. Thismall also has stores like Central, Reliance trends, Reliance footprints and Cinemax Multiplex. This is the biggest of the three stores in terms of area and also generates thehighest sales in Raipur. The store is spread on a single floor over 38000 square feet. It keepsmore than 50000 SKUs of items ranging across electronics, apparels, shoes, accessories,watches, FMCG items, kitchen and dining, home and living, bed and bath. The store alsohouses a Food Bazaar and a bakery shop. It has a workforce of around 150 employees. Thestore works in two shifts, first from 11:00 am to 8:00 pm and the second from 1:30 pm to10:30 pm. It has a total of 15 billing counters which include 3 pocket billing counters. Threecashiers report in the morning shift and ten in the evening. Out of the total staff 25 peopleare cross trained to handle different activities so as to meet any contingencies. Table 2 andtable 3 shows the number of billings done on a particular day for afternoon and eveningtime which can be considered as daily averages at these times. Amara Bazaar has option to take up the space in two of the malls in the city. Onemall is 5 year old R K Mall and the other is the new upcoming mall named Mosaic in theNaya Raipur city. Some details related to these malls can be seen in Table 1 and location ofthese malls is also shown in the Exhibit 1. R K Mall is located towards the west end of the city and is close to the cities of Durgand Bhilai which are two major industrial hubs around Raipur with a big chunk of middleclass population. This mall is around 20 kms from these two cities. This mall already housesa multiplex named Glitz and many branded stores.INDIAN INSTITUTE OF MANAGEMENT RAIPUR 2
  3. 3. The other mall, Mosaic, is under construction in the Naya Raipur city. The mall ispart of an urban housing and commercial development plan. Along with the construction ofthe mall, some residential and commercial complexes are also under construction. Some ofthese buildings will be completed along with the mall within one year but the whole projectis expected to be complete in 5 to 7 years. During this time many other projects will also becoming up in the Naya Raipur city. Mr. Alok Banerjee, CEO of Amara Bazaar has chosen Mr. Rakesh Ranjan, Head-Retail Strategy, for setting up the store in Raipur. Since the city has a huge potential Mr.Banerjee doesn’t want to leave any stones unturned in setting up the store. He also knowsthat the consumer behaviour of people in different cities is different therefore partneringwith local small players to understand the psyche of the population will be important. Mr. Ranjan will have to study the working of other stores like Big Bazaar, Easy Dayetc closely and he will then have to analyse the advantages and disadvantages of the currentRetail store management model in Raipur. All the hypermarket stores in the city open at around 11:30 in the morning andclose by 9:00 pm. Amara Bazaar is planning to remain open till midnight. Mr. Ranjan is alsothinking about running two shifts i.e. from 10:00 am to 6:00 pm and the other from 4:00pmto 12:00 pm. Most of the hypermarkets use the ‘multiple line multiple server’ model for billing.These stores have 10-15 billing counters (may vary as per store size and layout- usually astore with area of 30000 – 40000 sq feet will have such number of counters) which areopened depending upon the number of customers lined up for billing. For instance in theweekdays during the afternoon the store could be working with only one billing counteropen, on the other hand, during the weekends in the evening hours when people are freeand come in huge numbers to shop the store has to open all the billing counters.INDIAN INSTITUTE OF MANAGEMENT RAIPUR 3
  4. 4. Amara Bazaar is looking for various other queuing options so as to minimizecustomer waiting time and also optimize the use of floor space at the store. These modelscould be single line multiple server, single line single server and others. Mr. Rakesh Ranjan is assessing the situation well and with his experience in theretail industry for the last 15 years he knows that the whole idea of setting up this storewould have to be first strategized on paper and only then the execution could begin. Whilesetting up the earlier retail stores in Dhanbad, Gangtok and Ranchi he had understood thatthere could not be a standard model and hence, changing the operations of the store as perthe norms of city is best to have a more customer centric approach. In line with this thoughthe is also planning to suggest the management a more ‘national’ name. Amara Bazaar hasbeen a very regional name and national expansion had always found some amount ofdifficulty for the local customers to relate themselves with this store. One morning in his office at Park Street, Kolkata, Mr. Ranjan called his operationsand marketing team and decided to plan out a strategy for the store to be opened in Raipur.He was very clear in that the team was to work on only the strategies discussed during thatmeeting. The teams were to work in tandem with each other to find out the best strategies.Amara Bazaar was not satisfied with the level of operational efficiency it was experiencing atits other stores. They were hoping to replicate learnings from this store to their other storesalso. The high operational efficiency in this store could be modelled elsewhere as manystores of Amara Bazaar were experiencing low operational efficiency. Mr. Ranjan made theteam understand how this project would not only give them professional highs but alsoexpand their knowledge of some of the finest tools used in operations management. Hewants his team to work out the following issues: 1) Location of the store- Mr. Ranjan asked his team to refer the map of Raipur and suggest the location out of the two options they had. They were to basically focus on maximum footfall and also a very high percentage of the Target group 2) Decide on the format of the store- Supermarket/Hypermarket/Supercentre.INDIAN INSTITUTE OF MANAGEMENT RAIPUR 4
  5. 5. 3) Based on the format of the store the marketing team was to suggest the Merchandising Strategy. The team was to suggest whether in the city of Raipur a store with high variety and fewer assortments would be advisable or one with high assortment and less variety would succeed. 4) Depending upon the merchandising and type of the store format what should be the layout of the store and placing of various items and billing counters. 5) Develop a shift plan with the manpower requirement. 6) Compare the various queuing models and suggest the best which would save customers from waiting extra and also bring in efficient usage of manpower for Amara Bazaar.INDIAN INSTITUTE OF MANAGEMENT RAIPUR 5
  6. 6. Other stores S. (not Mall Name Location Retail Store Owned By Remark No. exhaustive list) Globus, Lotus, 1 City Mall 36 Devendra Nagar Big Bazaar Future Group Inox Magneto Bharti- 2 Mahaveer Nagar Easyday Westside, PVR Mall Walmart Central, City centre Reliance 3 Shankar Nagar Big Bazaar Future Group Mall trends, Cinemax No Hypermarket- Space available 4 R. K. Mall Amnaka crossing Glitz Cinema, 30000 sqft to 50000 sq feet Proposed- Fun Mall is under construction- will be 5 Mosaic Mall Naya Raipur republic, up by this year- space available pantaloons 40000 sq feet to 60000 sq feet TABLE 1: Details of Malls and Hypermarkets in Raipur Total Counter Start End Status no. No. time time served 1 Closed 2 Closed 3 Open 11:45 13:20 26 4 Closed 5 Closed 6 Open 11:45 13:20 29 7 Closed 8 Closed 9 Closed 10 Closed 11 Closed 12 Closed TABLE 2: Observations at Big Bazaar (City Centre Mall) during day timeINDIAN INSTITUTE OF MANAGEMENT RAIPUR 6
  7. 7. Total Counter Start End Status no. No. time time served 1 Closed 2 Open 18:55 20:17 14 3 Open 18:55 20:17 20 4 Closed 5 Open 18:55 20:17 25 6 Closed 7 Open 19:16 20:35 22 8 Closed 9 Open 19:16 20:35 17 10 Open 19:16 20:35 29 11 Open 19:16 20:35 24 12 Open 19:16 20:35 23 TABLE 3: Observations at Big Bazaar (City Centre Mall) during evening timeINDIAN INSTITUTE OF MANAGEMENT RAIPUR 7
  8. 8. EXHIBIT 1: Raipur city map showing location of various malls. The colours represent population density/ sq kmINDIAN INSTITUTE OF MANAGEMENT RAIPUR 8
  9. 9. GUIDELINES 1. Deadline for submission of case analysis is 2359 hours on 12th Feb’13. 2. Reasonable assumptions can be taken and should be mentioned. 3. The analysis should be in the form of a power-point presentation not exceeding 15 slides excluding the ‘Cover’ slide & ‘Thank you’ slide. 4. The cover slide must contain your team name; name, email ID & contact no. of both the participants. 5. The parameters on which teams would be judged would include the depth of their analysis, the flow of the analysis, extent of coverage of the topics, clarity and innovation in ideas and the way of presentation. 6. File should be named as InstituteName_TeamName Example IIMRaipur_MenInBlue 7. Subject line of the mail should be Xploryze_ InstituteName_TeamName 8. Mail your case analyses at xploryze.equinox@gmail.comIn case of any clarifications you can write to xploryze.equinox@gmail.com or contactAnubhav Sood at 9200007747INDIAN INSTITUTE OF MANAGEMENT RAIPUR 9

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