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Chase up full report

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Chase up full report

  1. 1. BRIEF INTRODUCTION OF CHASE UP Chase Up was founded in 1984 as a family owned business initially selling quality readymade garment at affordable prices. The company was considered as pioneers of introducing the concept of modern dept store retailing in Karachi. Chase Up has always focused on maximizing customer convenience; by providing a wide range of quality goods and services under one roof at the prices that majority of customers can afford to pay. Since then the business has continued to grow and the business model has evolved during the years up to the point where the company now falls under the category of quality discounting in the retail sector. Presently, the company is operating 5 stores in Karachi, selling a wide variety of clothing, footwear, Groceries, house wares, ladies fabrics and health and beauty products to name a few. Chase Up plans to open more stores in Karachi and throughout the country in order to touch more and more customers every day with its even expanding range of quality foods at highly affordable prices. Chase Up Shopping City is a family owned department store business in Karachi, Pakistan operating since 1984. Its core product line consists of garments for men and women of all age groups, footwear, health & beauty products, grocery, loose fabric for ladies, kitchenware and house ware products and undergarments for men and women. The grocery section is the latest addition to the different departments, available only in two branches, Shaheed-e-Milat Road and Clifton. Currently chase up is operating 4 outlets in Karachi, the business hub of Pakistan. Chase up falls into the category of Hypermarket/Quality discounting in retail sector. The size of stores range between 6,000 to 20,000 sq. ft. and the product line varies from store to store depending on its size. The foremost motto of Chase Up is the quality of the products. Being in the business for decades, they are capable of providing our customers with excellent quality products.Chase Up Shopping City is a family owned department store business in Karachi, Pakistan operating since 1984. Its core product line consists of garments for men and women of all age groups, footwear, health & beauty products, grocery, loose fabric for ladies, kitchenware and house ware products and undergarments for men and women. The grocery section is the latest addition to the different departments, available only in two branches, Shaheed-e-Milat Road and Clifton. Currently chase up is operating 4 outlets in Karachi, the business hub of Pakistan. Chase up falls into the category of Hypermarket/Quality discounting in retail sector. The size of stores range between 6,000 to 20,000 sq. ft. and the product line varies from store to store depending on its size. The foremost motto of Chase Up is the quality of the products. Being in the business for decades, they are capable of providing our customers with excellent quality products.Chase Up Shopping City is a family owned department store business in Karachi, Pakistan operating since 1984. Its core product line consists of garments for men and women of all age groups, footwear, health & beauty products, grocery, loose fabric for ladies, kitchenware and house ware products and undergarments for men and women.
  2. 2. The grocery section is the latest addition to the different departments, available only in two branches, Shaheed-e-Milat Road and Clifton. Currently chase up is operating 4 outlets in Karachi, the business hub of Pakistan. Chase up falls into the category of Hypermarket/Quality discounting in retail sector. The size of stores range between 6,000 to 20,000 sq. ft. and the product line varies from store to store depending on its size. The foremost motto of Chase Up is the quality of the products. Being in the business for decades, they are capable of providing our customers with excellent quality products.Chase Up Shopping City is a family owned department store business in Karachi, Pakistan operating since 1984. Its core product line consists of garments for men and women of all age groups, footwear, health & beauty products, grocery, loose fabric for ladies, kitchenware and house ware products and undergarments for men and women. The grocery section is the latest addition to the different departments, available only in two branches, Shaheed-e-Milat Road and Clifton. Currently chase up is operating 4 outlets in Karachi, the business hub of Pakistan. Chase up falls into the category of Hypermarket/Quality discounting in retail sector. The size of stores range between 6,000 to 20,000 sq. ft. and the product line varies from store to store depending on its size. The foremost motto of Chase Up is the quality of the products. Being in the business for decades, they are capable of providing our customers with excellent quality products. Short Description Chase Up Shopping City, it is cheaper store in town where you can buy the stuff in wholesale prices INTRODUCTION OF CHASE UP MULTAN Chase up has started its operations in 20 June, 2014 in Multan.  Its core product line consists of garments for men and women of all age groups, footwear, health & beauty products, grocery, fabric for ladies, kitchenware and house ware products and undergarments for men and women.  Chase Up has always focused on maximizing customer convenience;  Chase Up plans to open more stores in Multan and throughout the country in order to touch more and more customers . ORGANIZATION PROFILE Organization name: Chase up Year of establishment: 20 June, 2014 Founder name: M.Bashir Director names: M.Bashir, Salman Bashir, Jawad Bashir Contact no: 061-6223105-06 Email address: Multan@chaseup.com.pk Location: Pace and Pace shopping Mall, Chongi #6 main Boson Road, Multan SCOPE OF ORGANIZATION Chase up order goods in foreign and a few local companies are actively engaged in chain stores in the country.
  3. 3. • Chase up economic growth, leading supermarket chains – that mainly consider to middle and upper income classes. • Customers can even remove the items from website that were selected earlier before they place the final order. CHASE UP VISION Our vision is to lead and become the pioneer of retail business in Pakistan and also provide their customers good quality products with low price. We aim to do this by continuous innovation and improvement in the quality of the product we carry, our business systems and process. We also strive to contribute positively in the economic development of our country by providing value through the concept of SOURCE TO STORE. Finally in doing so we aim to continuously identify, and develop our human resources to the highest possible level because we believe that “business is all about people”. MISSION STATEMENT OF CHASE UP Our mission is to continuously develop and enrich the lives of our customers by providing them One-Stop shopping solutions on a daily basis. The core vision is to provide and enhance value for money in each and every product we carry. OUR GOALS Our company goal is to provide good quality of products at affordable price and offer all of its products at wholesale price with full comfort for its customers. And also provide highly cooperative and friendly environment to their customers. ORGANIZATION PHILOSOPHY It is critical to our long-term success and growth that our businesses are managed by highly capable leaders with the low price and skillful staff • To achieve this objective, we have designed our compensation programs to retain and motivate a large group of people. Our programs are highly competitive in the marketplace. ORGANIZATION PRODUCT LINE .Grocery • Cosmetics
  4. 4. • Crockery • Shoes • Garments • Jewelry • Watches • Fabric • Leather product ENTERPRENURE SUCESS STORY We start our business at very low level lady garments but now our business expands at large level. • Our success story base on that strategy customers pay high price on their purchases but we provide low price with high quality which attract the customers and earn large profit. • Chase up selling quality readymade garment at affordable prices. OPPERTUNITY RECOGNITION The opportunity for our organization is that to open the new branches of chase up and capture more market area and also increase the profit of our company. • Chase up also creates the opportunity for citizens. • Chase up is hiring people who have previous experience of working in super market or departmental store. This is a great opportunities for the citizens of Multan to work in a fastest growing business. MARKETING CHALLENGES There are many challenges facing Chase up just like any other business. • How to keep cost low • How to ensure there is enough parking lot • How to bring quality tenants and customers • How to attract talented people to join their organizations • How to increase sales of our Products • How to replicate the same business model in other cities of Pakistan SOCIAL AND POLITICAL OR OTHER ISSUES/TRENDS
  5. 5. With the passage of time our society change because of new innovations (fashion trend change) in the market so it is difficult to meet the every customer expectation therefore, our company more focus on quality maintain strategy. • In social trends chase up believe that the market position that we wish to achieve can only be achieved through integrity hard work and sincere dedication of our employees, vendors at all levels. ENTREPRENEURIAL STRAYEGY Different strategies are used by the chase up: •Pricing Strategy •Quality maintained strategy •Variety of products introduced •Return Policy MARKETING OR MANAGEMENT STYLE Marketing of our company through cable T.V, F.M, Bill boards. The company uses the differentiation strategy or price leadership. • Growth strategy also uses by chase up, in which company provide variety of products to their customer’s e.g. grocery products also available in this store. • Chase up use the democratic management style, in which all employees of chase up are participate in decision making not only managers take decisions BUSINESS PLANS Chase up business plan provides good quality products with low price for gaining the competitive edge in the market. •. Our organization planning is to open new branches of chase up in Multan, Lahore, and Faisalabad. Within 6 month new branch opened in Multan. •Our business planning is to open the new branch after 1 year in different cities of Pakistan. SUCCESS TIME STORY / SUCCESS LESSONS Success story of chase up provide goods to customers at right time in low price with high quality. • Chase up purchase goods at bulk quantity which give benefit because pay low price. MANAGEMENT PLANNING PLANNING: While making plans the management of CHASE UP has been cognizant of their missions, goals, strategies, policies
  6. 6. OBJECTIVE IN PLANNING Provision of Quality of products at low price •Provision of courteous and helpful services to the customers •Offering opportunities to growth, advancement and rewarding careers in a fun safe working environment. •Working for profit maximization. •Working for the economic growth ORGANIZING As CHASE UP is a national company, it has to focus more on organizing. • At CHASE UP, management organizes all its resources in order to implement the course of action it determines in the planning process. • Through the process of getting organized, the management determines the internal organizational structure; establishes and maintains relationships and allocates necessary resources. LEADING Our outlet managers act as leaders. • Outlet managers are highly motivated and their job is to direct and influence their sub-ordinates. • Sub-ordinates report to him directly and he is responsible for solving employees' issues. • Sub-ordinates report to him directly and he is responsible for solving employees' issues. • He also develops good relations with his co-workers and wins their trust to create a productive environment which ensures fulfillment of organizational objectives. CONTROLLING Through the controlling function the company ensures that the activities that are being undertaken within an organization are going according to the pre- conceived plans. • Therefore, it is the duty of the managers to have an understanding and a working knowledge of the fundamentals of the controlling function. RESOURCE MANAGEMENT Made staff separation, resignation & termination cases and turnover ratio. •Made Job Description of the employee’s position with the help of department head. •Maintained attendance records & employees data via ERP system. •Made Employees Cards, Issuing Employee ID’s & updating Employees
  7. 7. Records of All Branch. •Updated leave database, loan database, medical reimbursement and maintained leave applications in ERP system. •Prepare maintain and update company / department wise Organ gram •Facilitate new employee in joining & orientation. . COMPETITORS ANALYSIS Our competitors are those who can affect our business. •Comparative Advantages: • Low pricing strategy is a competitive advantage for chase up. Chase up provides good quality products in cheapest rates. Nature of Competition: We have more competitive management and employees. Our employees are very competent, skilled and highly experienced. RESEARCH AND DEVELOPMENT There is no reach and development department of chase Up. We outsource the consultant to conduct research. Recently we conducted a research from which we came to know that there is high demand of our shopping mall. PRICING STRATEGIES A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market. Businesses may benefit from lowering or raising prices, depending on the needs and behaviors of customers and clients in the particular market. Finding the right pricing strategy is an important element in running a successful business Models of pricing Absorption pricing Method of pricing in which all costs are recovered.The price of the product includes the variable cost of each item plus a proportionate amount of the fixed costs. Contribution margin-based pricing Contribution margin-based pricing maximizes the profit derived from an individual product, based on the difference between the product's price and variable costs (the product's contribution margin per unit), and on one’s assumptions regarding the relationship between the product’s price and the number of units that can be sold at that price. The product's contribution to total firm profit (i.e. to operating income) is maximized when a price is chosen that maximizes the following: (contribution margin per unit) X (number of units sold). In cost-plus pricing, a company first determines its break-even price for the product. This is done by calculating all the costs involved in the production such as raw materials used
  8. 8. in it transportation etc., marketing and distribution of the product. Then a markup is set for each unit, based on the profit the company needs to make, its sales objectives and the price it believes customers will pay. For example, if the company needs a 15 percent profit margin and the break-even price is $2.59, the price will be set at $2.98 ($2.59 x 1.15). Creaming or skimming In most skimming, goods are sold at higher prices so that fewer sales are needed to break even. Selling a product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the market. Skimming is usually employed to reimburse the cost of investment of the original research into the product: commonly used in electronic markets when a new range, such as DVD players, are firstly dispatched into the market at a high price. This strategy is often used to target "early adopters" of a product or service. Early adopters generally have a relatively lower price-sensitivity - this can be attributed to: their need for the product outweighing their need to economise; a greater understanding of the product's value; or simply having a higher disposable income. This strategy is employed only for a limited duration to recover most of the investment made to build the product. To gain further market share, a seller must use other pricing tactics such as economy or penetration. This method can have some setbacks as it could leave the product at a high price against the competition. Decoy pricing Method of pricing where the seller offers at least three products, and where two of them have a similar or equal price. The two products with the similar prices should be the most expensive ones, and one of the two should be less attractive than the other. This strategy will make people compare the options with similar prices, and as a result sales of the more attractive high-priced item will increase. High-low pricing Methods of services offered by the organization are regularly priced higher than competitors, but through promotions, advertisements, and or coupons, lower prices are offered on key items. The lower promotional prices are designed to bring customers to the organization where the customer is offered the promotional product as well as the regular higher priced products. Loss leader A loss leader or leader is a product sold at a low price (i.e. at cost or below cost) to stimulate other profitable sales. This would help the companies to expand its market share as a whole. Marginal-cost pricing In business, the practice of setting the price of a product to equal the extra cost of producing an extra unit of output. By this policy, a producer charges, for each product unit sold, only the addition to total cost resulting from materials and direct labor. Businesses often set prices close to marginal cost during periods of poor sales. If, for example, an item has a marginal cost of $1.00 and a normal selling price is $2.00, the firm selling the item might wish to lower the price to $1.10 if demand has waned. The
  9. 9. business would choose this approach because the incremental profit of 10 cents from the transaction is better than no sale at all. Market-oriented pricing Setting a price based upon analysis and research compiled from the target market. This means that marketers will set prices depending on the results from the research. For instance if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at an above price or below, depending on what the company wants to achieve. Odd pricing In this type of pricing, the seller tends to fix a price whose last digits are just below a round number (also called just-below pricing). This is done so as to give the buyers/consumers no gap for bargaining as the prices seem to be less and yet in an actual sense are too high, and takes advantage of human psychology. A good example of this can be noticed in most supermarkets where instead of pricing at £10, it would be written as £9.99. Pay what you want Pay what you want is a pricing system where buyers pay any desired amount for a given commodity, sometimes including zero. In some cases, a minimum (floor) price may be set, and/or a suggested price may be indicated as guidance for the buyer. The buyer can also select an amount higher than the standard price for the commodity. Giving buyers the freedom to pay what they want may seem to not make much sense for a seller, but in some situations it can be very successful. While most uses of pay what you want have been at the margins of the economy, or for special promotions, there are emerging efforts to expand its utility to broader and more regular use. Penetration pricing Penetration pricing includes setting the price low with the goals of attracting customers and gaining market share. The price will be raised later once this market share is gained. Predatory pricing Predatory pricing, also known as aggressive pricing (also known as "undercutting"), intended to drive out competitors from a market. It is illegal in some countries. Premium decoy pricing Method of pricing where an organization artificially sets one product price high, in order to boost sales of a lower priced product. Premium pricing Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation, are more reliable or
  10. 10. desirable, or represent exceptional quality and distinction. Price discrimination Price discrimination is the practice of setting a different price for the same product in different segments to the market. For example, this can be for different classes, such as ages, or for different opening times. Price leadership An observation made of oligopolistic business behavior in which one company, usually the dominant competitor among several, leads the way in determining prices, the others soon following. The context is a state of limited competition, in which a market is shared by a small number of producers or sellers. Psychological pricing Pricing designed to have a positive psychological impact. For example, selling a product at $3.95 or $3.99, rather than $4.00. There are certain price points where people are willing to buy a product. If the price of a product is $100 and the company prices it as $99, then it is called psychological pricing. In most of the consumers mind $99 is psychologically ‘less’ than $100. A minor distinction in pricing can make a big difference in sales. The company that succeeds in finding psychological price points can improve sales and maximize revenue. Target pricing business Pricing method whereby the selling price of a product is calculated to produce a particular rate of return on investment for a specific volume of production. The target pricing method is used most often by public utilities, like electric and gas companies, and companies whose capital investment is high, like automobile manufacturers. Target pricing is not useful for companies whose capital investment is low because, according to this formula, the selling price will be understated. Also the target pricing method is not keyed to the demand for the product, and if the entire volume is not sold, a company might sustain an overall budgetary loss on the product. Time-based pricing A flexible pricing mechanism made possible by advances in information technology, and employed mostly by Internet-based companies. By responding to market fluctuations or large amounts of data gathered from customers - ranging from where they live to what they buy to how much they have spent on past purchases - dynamic pricing allows online companies to adjust the prices of identical goods to correspond to a customer’s willingness to pay. The airline industry is often cited as a dynamic pricing success story. In fact, it employs the technique so artfully that most of the passengers on any given airplane have paid different ticket prices for the same flight. Value-based pricing Pricing a product based on the value the product has for the customer and not on its costs of production or any other factor. This pricing strategy is frequently used where the value to the customer is many times the cost of producing the item or service. For instance, the cost of producing a software CD is about the same independent of the software on it, but
  11. 11. the prices vary with the perceived value the customers are expected to have. The perceived value will depend on the alternatives open to the customer. In business these alternatives are using competitors software, using a manual work around, or not doing an activity. In order to employ value-based pricing you have to know your customer's business, his business costs, and his perceived alternatives.It is also known as Perceived- value pricing. SWOT ANALYSIS S (Strengths) W (Weaknesses) O (Opportunities) T (Threats) 1. Good infrastructure Lack of support from government. Faster market growth than before. Changes in government policies 2. Flexible and responsive to sales Only one branch in city Multan Local events New competitors 3. Security Absence of Electric equipment. Provide a bonus Changing market taste 4. Provide discount card - Provide discount cards Social trend 5. Available all sorts of goods - Variety of product PEST ANALYSIS P (Political) E (Economical) S (Socio-cultural) T (Technological) 1. Political ideologies Economic condition Obeys and fulfil social and cultural norms and value Fails to access the newest technology 2. Government term and change Economic system - Sufficient level of technology 3. Wars and conflicts Price fluctuation - Good internet infrastructure 4. Environmental issues Globalization - -

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