Real Case Analysis of Victory Supermarkets Expansion Strategy based on finance, marketing and strategy

1. Victory Supermarket
Team 21
Ceyhun Yardimli
Vugar Mammadov
Ilkin Oruczade
Songul Ahmedova

2. STEP
01
STEP
02
STEP
03
STEP
04
STEP
05
Current
Position
Decision
Tree
Comparison
Financial
Analysis
comparison
Conclusion

3. Lancaster
Marlborough
Kingston

4. 126
92
16
190
40
41
Number of Stores
Shaw Price Chopper Victory Stop&Shop Market Basket Bug Y
STEP
01
Current
Position
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Shaw Price
Chopper
Victory Stop&Shop Market
Basket
Bug Y
Billions
Total Sales
Shaw
Price Chopper
Victory
Stop&Shop
Market Basket
Bug Y
0%0%
0%
0%
0%
0%
0%
0%
Shaw
32%
Price
Chopper
17% Victory
17%
Stop&Shop
13%
Market
Basket
11%
Bug Y
10%
Market Share

5. STEP
02
Decision
Tree
Expansion
Slowly Rapidly
Market Square
Concept
Conventional
Concept
 2 Stores
 $6million
 5-15 Stores
 $4million

6. STEP
03
Comparison
Conventional
Concept
$60mil
BANK LOAN 1

7. BANK LOAN
1.71
1997
1998
0.5
2.21
Debt ratio
0.6
Debt to equity

8. STEP
03
Comparison
Conventional
Concept
$60mil
BANK LOAN 1
2 PARTNERSHIP

9. PARTNERSHIP
Victory total asset-$40m
Partner offer - $100m
$140m
72%
28%
Vote
So…
Family rejection

10. STEP
02
Decision
Tree
Expansion
Slowly Rapidly
Market Square
Concept
Conventional
Concept
 2 Stores
 $6million
 5-15 Stores
 $4million

11. 0
5
10
15
20
25
30
1999 2000 2001 2002
Millions
Conventional concept sales
Market Square concept sales
SALES
STEP
04
Financial
Analysis
comparison
Market Square
Concept

12. -17
5
-20
-15
-10
-5
0
5
10
NPV comparison
Market Square
Conventional Store
STEP
04
Financial
Analysis
comparison
Market Square
Concept

13. -20% -10% -5% 0% 5% 10% 20%
2
3.6
4.3
5
5.7
6.5
8
Sensitivity Analysis
STEP
04
Financial
Analysis
comparison
Market Square
Concept

14. STEP
05
Conclusion
Market Square
Concept
Advantages
educative Differentiated Time-saving

15. What if market square expansion fails?
• Trained staff
• Continuous
customers
Market
Square
Conventional
storeFlexible design
STEP
05
Conclusion

16. STEP
05
Conclusion
Market Square
Concept
Slowly

17. &
Answers