In my presentation I have describe life cycle of Subhiksha and detail information about reasons behind failure of Subhiksha.

1. Bachat Mera Adhikar! Subhiksha Mera Abhimaan!
subhiksha

2. OUTLINE

3. INTRODUCTION

4. INTRODUCTION
Fruits
Vegetables
Grocery
Medicines
Mobiles

5. Market
2008
New
Stores
1600
Outlet
Largest
Investors
RS.286
billion
1.6%
Of GDP
INTRODUCTION

6. GROWTH
• Segmentation was done on
the basis of geography
initially
– Opened stores in South India
initially , later expanded
elsewhere
• Later on, was done on the
basis of age groups
– Different product portfolios
were targeted for different
market segments
SEGMENTATION

7. GROWTH
• Expanding middle & upper classes has
played a big role in the expansion of existing
modern format stores & entry of new ones
• Attract not the top end customer but
the aam aadmi
• Target Market for different products:
– Grocery & Vegetables – Common man &
specifically Housewives
– Mobile – Youth
– Medicines – Old Age People
TARGET MARKET

8. • Low prices
• Consumer Savings
• Consumer Trust
• One Stop Shop
– Multiple products under one store
• Store designed with Indian touch
• Location Convenience
• Privilege to loyal customers
• Indian Management
GROWTH
POSITIONING

9. ADVERTISEMENTS
• TV Advertisements
• Price Challenge Campaign
• Hoardings
• Celebrities for promotion
• EDLP approach
• “Subhiksham” Card

10. PRICING
• EDLP – Everyday Low
Pricing Approach
• Prices below the MRP
Product Subhiksh
a
MRP
Rice 5 kg Rs.102 Rs.119
Britannia
Marigold 400
gm
Rs.21 Rs.24
Sugar 1 kg Rs.15 Rs.17

11. • No Frills Store
• EDLP Strategy
• Off the main roads to take advantage of
low cost
• Catchment area of approx 2 kms
• Local low overhead front-end of Kirana
stores with efficient supply chain of a
large retailer
MATURITY

12. • Establish itself as a neighborhood store
• Everyday low price system
• Wanted to attain greater penetration in all
markets
• Lease rental system for stores
• Centralized purchasing
MATURITY

13. • Subhiksham Card
• Home Delivery System
• Use of IT
• Online Retail System
MATURITY

14. MATURITY
2
0
0
0
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
8
50
Stores
Investor
23%
120
Stores
WIPRO
500
1600

15. People know
SUBHIKSHA know
People Know
SUBHIKSHA don’t
Know
People don’t Know
SUBHIKSHA Know
People don’t Know
SUBHIKSHA don’t
Know
PROBLEMS
JOHARRY MODEL

16. DECLINE
INFORMATION
TECHNOLOGY
MARKETING
FINANCE
INTERNAL

17. DECLINE
Deep
research
Loyalty
reward
Mismatch
pricing
Window
experience
Confuse
moment1 minute
shopping

18. VISUAL MERCHANDISING
HYGINE FACTOR
PRICING FACTOR
TOO BIG BAG
WINDOW
EXPERIENCE
LOYALTY
REWARD
DECLINE