Retail Management <br />
Structure <br />
Introduction<br />A leading sandwich chain, with 22,361 restaurants, spread across 78 countries out of which 200 are in In...
Retail Market Strategy<br />
Location<br />Sustainable Competitive Advantage<br />Target Market<br />Systems & SCM<br />Financial Strategy<br />Retail ...
Upscale areas preferably near residential colonies and offices
Unique association with Health & Taste
Lets choose one’s own Sub</li></li></ul><li>Growth Opportunities<br />Systems & SCM<br />Financial Strategy<br />Retail Ma...
Organization Structure<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM...
Financial Strategy<br />
Royalty<br />Pricing<br />Financial Objectives<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br /...
Higher Billing Amount</li></ul>Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />Targets<br /><...
In terms of Sales and COGS (Max 35% of sales)
Varies across cities, purely as a function of logistics
Avg. monthly prices are paid to vendors for veg
8% of revenues is paid as royalty fee
4.5% is allocated to marketing funds</li></li></ul><li>Information Systems &<br />Supply Chain Management<br />
Information Systems<br />Financial Strategy<br />Systems & SCM<br />Retail Market Strategy<br /><ul><li>Sub-shop is instal...
Daily Sales figures are updated & maintained on </li></ul>   Spread sheets<br /><ul><li>Past 3 years data is looked-at for...
Customer Data-base is maintained by call-centre</li></ul>Service- Scape<br />HRM<br />Store Management<br />Merchandise Pl...
Supply Chain Flow<br />Financial Strategy<br />Systems & SCM<br />Retail Market Strategy<br />Service- Scape<br />HRM<br /...
Supply Chain at local level<br />Financial Strategy<br />Systems & SCM<br />Retail Market Strategy<br /><ul><li>Pink Papay...
Orders are placed on Tuesdays and received on Fridays</li></ul>Service- Scape<br />HRM<br />Store Management<br />Merchand...
From there information is passed onto the nearest Subway outlet
The delivery is done by staff members only there are no separate delivery boys
Each store has 3 delivery bikes </li></li></ul><li>Merchandise Planning<br />
Forecasting<br />Vendor Relations<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br /><ul><li>By t...
Orders are given for 7 days worth of materials needed and an additional 3 days as buffer
Weekends see and over and above 10% extra order</li></ul>Service- Scape<br />HRM<br />Store Management<br />Merchandise Pl...
These vendors have a long term contract with the company
After first few trades, they learn what size and quality of vegetables are taken by Subway</li></li></ul><li>Sourcing<br /...
Jalapeños, Olives and Pickles are bought tinned packed
Meat is sourced from Delhi
All the purchasing is done centrally
Capsicum, Cucumber, Onion and Tomatoes are sourced from the Koyambeddu market
Lettuce is sourced from Coimbatore daily by the 7am train</li></li></ul><li>Warning<br />Following few slides may make you...
Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store ...
Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store ...
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Subway

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Retailing Strategy of a Subway Outlet

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Subway

  1. 1. Retail Management <br />
  2. 2. Structure <br />
  3. 3. Introduction<br />A leading sandwich chain, with 22,361 restaurants, spread across 78 countries out of which 200 are in India<br />Its USP lies in its association with both health& taste<br />It serves nutritious subs, salads, wraps among others<br />It makes your food in front of you and you get to pick what you want<br />
  4. 4. Retail Market Strategy<br />
  5. 5. Location<br />Sustainable Competitive Advantage<br />Target Market<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br /><ul><li>Young, Urban, Health Conscious</li></ul>Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />Retail Format<br /><ul><li>Franchise Model
  6. 6. Upscale areas preferably near residential colonies and offices
  7. 7. Unique association with Health & Taste
  8. 8. Lets choose one’s own Sub</li></li></ul><li>Growth Opportunities<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  9. 9. Organization Structure<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  10. 10. Financial Strategy<br />
  11. 11. Royalty<br />Pricing<br />Financial Objectives<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br /><ul><li>Higher Number of bills
  12. 12. Higher Billing Amount</li></ul>Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />Targets<br /><ul><li>Monthly, weekly & daily targets are allotted
  13. 13. In terms of Sales and COGS (Max 35% of sales)
  14. 14. Varies across cities, purely as a function of logistics
  15. 15. Avg. monthly prices are paid to vendors for veg
  16. 16. 8% of revenues is paid as royalty fee
  17. 17. 4.5% is allocated to marketing funds</li></li></ul><li>Information Systems &<br />Supply Chain Management<br />
  18. 18. Information Systems<br />Financial Strategy<br />Systems & SCM<br />Retail Market Strategy<br /><ul><li>Sub-shop is installed at point of sales for billing
  19. 19. Daily Sales figures are updated & maintained on </li></ul> Spread sheets<br /><ul><li>Past 3 years data is looked-at for sales forecasting on YoY basis
  20. 20. Customer Data-base is maintained by call-centre</li></ul>Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  21. 21. Supply Chain Flow<br />Financial Strategy<br />Systems & SCM<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  22. 22. Supply Chain at local level<br />Financial Strategy<br />Systems & SCM<br />Retail Market Strategy<br /><ul><li>Pink Papaya Food franchisee owns vehicles to source from central warehouse and inter outlets
  23. 23. Orders are placed on Tuesdays and received on Fridays</li></ul>Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />Logistics for home delivery<br /><ul><li>Orders are taken up by the centralized call center
  24. 24. From there information is passed onto the nearest Subway outlet
  25. 25. The delivery is done by staff members only there are no separate delivery boys
  26. 26. Each store has 3 delivery bikes </li></li></ul><li>Merchandise Planning<br />
  27. 27. Forecasting<br />Vendor Relations<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br /><ul><li>By taking past 3 years data and comparing it with past 3 weeks data
  28. 28. Orders are given for 7 days worth of materials needed and an additional 3 days as buffer
  29. 29. Weekends see and over and above 10% extra order</li></ul>Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br /><ul><li>Vendors for vegetables are generally whole-sellers, who in turn source from various famers
  30. 30. These vendors have a long term contract with the company
  31. 31. After first few trades, they learn what size and quality of vegetables are taken by Subway</li></li></ul><li>Sourcing<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br /><ul><li>Sauces are provided by a third party vendor
  32. 32. Jalapeños, Olives and Pickles are bought tinned packed
  33. 33. Meat is sourced from Delhi
  34. 34. All the purchasing is done centrally
  35. 35. Capsicum, Cucumber, Onion and Tomatoes are sourced from the Koyambeddu market
  36. 36. Lettuce is sourced from Coimbatore daily by the 7am train</li></li></ul><li>Warning<br />Following few slides may make you salivate. So, you might wanna look away!<br />-Issued in the Public Interest<br />
  37. 37. Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />MerchandisePlanning<br />
  38. 38. Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  39. 39. Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  40. 40. Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  41. 41. Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  42. 42. Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  43. 43. Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  44. 44. Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  45. 45. Assortment<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Store Management<br />Merchandise Planning<br />
  46. 46. Store Management<br />
  47. 47. Wash Mechanisms<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Service- Scape<br />HRM<br />Merchandise Planning<br />Store Management<br /><ul><li>Each store has a cleaning bay for vegetables </li></li></ul><li>Human Resource Management<br />
  48. 48. Rercuitment<br />Training<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br /><ul><li>15 member staff working in 2, 8 hr long shifts
  49. 49. Team meetings happen at 5-6pm , where the incoming and outgoing staff discuss
  50. 50. Recruitment is handled centrally in Chennai by the Royapettah HR department
  51. 51. Online training of employees is done by the University of Subway
  52. 52. Each employee has to complete certain number of modules with specified time
  53. 53. A new staff member is trained in cutting, baking, sandwich assembly, packing, customer interaction
  54. 54. They are also trained to “Up-Sell”</li></ul>Service- Scape<br />Merchandise Planning<br />Store Management<br />HRM<br />
  55. 55. Motivation<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br /><ul><li>A part of profits on achieve Sales Targets is shared with everyone
  56. 56. A monthly “dinner” and “movie night” is organized
  57. 57. The concept of employee of the month is also practiced to promote healthy competition
  58. 58. All the employee are treated fairly, specially in front of the customers</li></ul>Service- Scape<br />Merchandise Planning<br />Store Management<br />HRM<br />
  59. 59. Service Scape<br />
  60. 60. Presentation Techniques<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br />Merchandise Planning<br />Store Management<br />HRM<br />Service- Scape<br /><ul><li>Two bays: one non-veg and the other veg with billing counter in the center
  61. 61. Customers and can see what is being made and can also customize their subs
  62. 62. The layout allows a sequential flow from ordering, making of the sub to billing</li></ul>Atmospherics<br />
  63. 63. Atmospherics<br />Uniforms<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br /><ul><li>Color: The colors green and brown are pre-dominantly used to signal healthy/hygenic premises
  64. 64. Music: There is no one particular genre which is played
  65. 65. Lighting: White Lighting is used which is fairly uniform throughout the store</li></ul>Merchandise Planning<br />Store Management<br />HRM<br />Service- Scape<br /><ul><li>All the interior designs and layout are standardized across all stores by Subway International
  66. 66. All the employees are quite smartly dressed in </li></ul> Black Subway T-shirts<br />
  67. 67. Website<br />Systems & SCM<br />Financial Strategy<br />Retail Market Strategy<br /><ul><li>Custom website for India
  68. 68. It includes
  69. 69. Menu
  70. 70. Offers
  71. 71. Restaurant locator
  72. 72. How to Order
  73. 73. Franchise details</li></ul>Merchandise Planning<br />Store Management<br />HRM<br />Service- Scape<br />
  74. 74. Customer Service<br />
  75. 75. Systems & SCM<br /> Financial Strategy<br />Retail Market Strategy<br />Merchandise Planning<br /><ul><li>“ No arguments with the customer”
  76. 76. “The customer is always right”
  77. 77. “always smile”</li></ul>Store Management<br />HRM<br />Service- Scape<br />Customer Service<br />Principles of Customer Interaction<br />Service Recovery<br /><ul><li>In case of service failure such a wrong order,</li></ul> mistake is admitted by the employees (no <br /> matter who’s fault it is)<br /><ul><li>A new Complimentary Sub is served</li></li></ul><li>Thank You<br />
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