3. Marketing Plan of SuperstoreMarketing Plan of Superstore
With You Always…..
4. Background of the PlanBackground of the Plan
‘‘Cost Cutter’Cost Cutter’ is actually an innovator of newis actually an innovator of new
concepts in the mass retailing industry. We areconcepts in the mass retailing industry. We are
the first to develop the low-price superstorethe first to develop the low-price superstore
concept in Sylhet, Bangladesh.concept in Sylhet, Bangladesh.
5.
6. Our VisionOur Vision
"We are committed to improving the lives of"We are committed to improving the lives of
our customers by providing quality products,our customers by providing quality products,
services and solutions that earn their trust,services and solutions that earn their trust,
gain pioneer position & building lifetimegain pioneer position & building lifetime
relationships with them."relationships with them."
7. Our MissionOur Mission
Attaining best in class productivity and
efficiency
Building our brands also
Reinventing the company continuously
through technology and innovation
Reinforcing “The New Way of Retailing” by
living our values every day"
8. Our GoalsOur Goals
Wanted & needed around Sylhet & also in
Bangladesh very soon
A growing business, full of opportunity
More innovative & full of ideas
Winners locally whilst applying our skills
nationally
A creator of highly valued brand
9. Our ObjectivesOur Objectives
To grow the Bangladesh
core
To be an outstanding
retailer in superstore
market
To be strong in everything
considering food,
household accessories,
groceries etc
To build our team so that
we create more value
To reduced product waste /
damage/ out of code
10. ““PESTEL” ANALYSISPESTEL” ANALYSIS
PESTEL analysis (Political, Economical, Social,PESTEL analysis (Political, Economical, Social,
Technological, Environmental & Legal analysis)Technological, Environmental & Legal analysis)
describes a framework of macro-environmentaldescribes a framework of macro-environmental
factors & also analyses the dynamic andfactors & also analyses the dynamic and
unpredictable environment in which Cost Cutterunpredictable environment in which Cost Cutter
will operates by identifying the forces that havewill operates by identifying the forces that have
the most impact on Cost Cutter’s performance.the most impact on Cost Cutter’s performance.
11.
12. PoliticalPolitical
The growth of Cost Cutter’s local & national
business segment is on the rise and it is
predicted to account for one quarter of the
company’s profit.
An international concept has provided Cost
Cutter with a platform to expand its retail
network across the Sylhet & very soon
nationally
14. EconomicEconomic
Facts & statistics says about the GDPFacts & statistics says about the GDP
growth rate in Bangladesh expanded 6.30%growth rate in Bangladesh expanded 6.30%
in 2012 from the previous year.in 2012 from the previous year.
15. EconomicEconomic
• More than half of the GDP is generated by
the retail sector. Sylhet is fast becoming a
major center of retailing in Bangladesh.
16. TechnologicalTechnological
Being affected by the use of the Internet
Loyalty programs are being introduced
Mobile technology has also taken off
Online retail shopping has gained
considerable popularity
17. EnvironmentalEnvironmental
Cost Cutter’s corporate social responsibility
image will appraisable
introduce its Greener Living Scheme &
including how to reduce food waste also
recycling the waste products.
Consumers reusing bags, recycling mobile
phones and aluminum cans and preferring
bag less deliveries are being rewarded by us.
18. LegalLegal
Affect the non-food sectors of Cost CutterAffect the non-food sectors of Cost Cutter
An increasing of operating costsAn increasing of operating costs
19. COMPETITOR ANALYSISCOMPETITOR ANALYSIS
Comparing to other developed countryComparing to other developed country
““Superstore” is quite a new concept inSuperstore” is quite a new concept in
Bangladesh. The chain superstores are now aBangladesh. The chain superstores are now a
growing phenomenon in city area. Agora is ingrowing phenomenon in city area. Agora is in
leading position now & our very tough competitorleading position now & our very tough competitor
in Bangladesh where Shopno & Taradin are strongin Bangladesh where Shopno & Taradin are strong
local competitor though they are in departmentallocal competitor though they are in departmental
store segmentation as well.store segmentation as well.
20.
21. Intensity of competitive rivalryIntensity of competitive rivalry
Competitive rivalry is extremely high.Competitive rivalry is extremely high.
Competition from its direct competitorsCompetition from its direct competitors
including Shopno & Taradine.including Shopno & Taradine.
The slow market growthThe slow market growth
Primary consumers are attracted by localPrimary consumers are attracted by local
retailers.retailers.
Hard discounters have taken over the marketHard discounters have taken over the market
in times of recession.in times of recession.
22. SEGMENTATION, TARGETINGSEGMENTATION, TARGETING
& POSITIONING& POSITIONING
SegmentationSegmentation: All kinds of market: All kinds of market
segmentation approaches have beensegmentation approaches have been
considered promptly to ensure customerconsidered promptly to ensure customer
satisfaction and organizations’ development.satisfaction and organizations’ development. ItIt
consider-consider-
Accessible
MeasurableMeasurable
Profitable
Distinct from one another
23.
24. Continue…..Continue…..
The objective of segmentation is to findThe objective of segmentation is to find
attractive markets. Our strategies include-attractive markets. Our strategies include-
Select which segment to target (our targetSelect which segment to target (our target
customers are middle class to upper level,customers are middle class to upper level,
corporate level people, socialites)corporate level people, socialites)
Breaking market into componentsBreaking market into components
(product/service variations considering the(product/service variations considering the
target customers)target customers)
25. PositioningPositioning
We use perceptual maps technique to
determine the position of store. Positioning
maps or perceptual maps can be simple, yet
very effective marketing tools. Cost Cutter
follows the Retail Industry Level strategy
respectively.
26. TargetingTargeting
This is the real goal/objective in market that
Cost Cutter wants to reach.
The percentage of the population uses
products from us;
The percentage uses our brand;
How does that compare to competing brands;
The demographic profile of our product
category &
Media reach the users of this category;
27. TRADING AREA ANALYSIS,TRADING AREA ANALYSIS,
DEVELOPMENT & MAPPINGDEVELOPMENT & MAPPING
Characteristics of a population
Area coverage
28. Characteristics of a populationCharacteristics of a population
We measured the population based on-We measured the population based on-
social class, personality, location, income,social class, personality, location, income,
age, lifestyle, attitude, work, belief and someage, lifestyle, attitude, work, belief and some
other facts.other facts.
Main customers are those people who earnMain customers are those people who earn
Tk. 30,000 or more per month and solventTk. 30,000 or more per month and solvent
enough, the upper-middle class in mostenough, the upper-middle class in most
casescases
29. Area coverageArea coverage
Target area is Zindabazaar ,Medical ,Batalia,Target area is Zindabazaar ,Medical ,Batalia,
Shakgat and other close related area.Shakgat and other close related area.
Our competitors shopno and Taradin otherOur competitors shopno and Taradin other
stores are so far from our location.stores are so far from our location.
30. SITE SELECTION & STORESITE SELECTION & STORE
LOCATIONLOCATION
We are going to establishWe are going to establish
our superstore atour superstore at
Lamabazaar point inLamabazaar point in
Sylhet.Sylhet.
It is situated nearIt is situated near
residential area atresidential area at
Lamabazar, opposite toLamabazar, opposite to
Modon mohon college inModon mohon college in
Sylhet.Sylhet.
Availability of a broadAvailability of a broad
selection of goods under aselection of goods under a
single roof.single roof.
33. Cost Cutter’s StrengthsCost Cutter’s Strengths
Home Goods & other linesHome Goods & other lines
Carry a variety of products at a low costCarry a variety of products at a low cost
Store LocationsStore Locations
Urban areaUrban area
Store located in easily accessible areasStore located in easily accessible areas
Market in the Urban area effectivelyMarket in the Urban area effectively
Able to get a large multi-cultural consumerAble to get a large multi-cultural consumer
groupgroup
Offered lay away plan for people who need toOffered lay away plan for people who need to
pay on installmentspay on installments
34. Cost Cutter’sCost Cutter’s WeaknessWeakness
Low marketing budgetLow marketing budget
Many low profit departmental stores &Many low profit departmental stores &
markets nearbymarkets nearby
Negative publicity arises as an new entranceNegative publicity arises as an new entrance
Did not offer variety that appealed to the low-Did not offer variety that appealed to the low-
middle classmiddle class
35. Cost Cutter’sCost Cutter’s OpportunitiesOpportunities
Integrate Supply Chain ManagementIntegrate Supply Chain Management
Need to change the negative imageNeed to change the negative image
Improve the product line carried to keep theImprove the product line carried to keep the
all level of middle classall level of middle class
Design the store to be more organized andDesign the store to be more organized and
attractiveattractive
36. Cost Cutter’s Threats
Agora as a national rival and Shopno as both
local & national
Increasing their Market Share
Having to liquidate company
Suppliers raising prices
Profits declining
Urban areas are becoming more suburban
like
37. Opportunity-Threat MatrixOpportunity-Threat Matrix
Level of
Impact on
Company
High Low
High 1 2
Low 3
Probability of Occurrence
1 – Credit can1 – Credit can
be down ratedbe down rated
2 – Cost Cutter2 – Cost Cutter
getting broadgetting broad
3 – Supplier3 – Supplier
raise costsraise costs
38.
39. RETAIL HUMAN RESOURCERETAIL HUMAN RESOURCE
MANAGEMENTMANAGEMENT
The management of Cost Cutter hasThe management of Cost Cutter has
formulated a comprehensive human resourceformulated a comprehensive human resource
strategy.strategy.
We are focusing on-We are focusing on-
Work simplification,Work simplification,
Performance management andPerformance management and
Ensuring that all the firm’s employees haveEnsuring that all the firm’s employees have
the necessary core skills.the necessary core skills.
40. MARKETING STRATEGYMARKETING STRATEGY
• Combines all of its marketing goalsCombines all of its marketing goals
• Focus on the right product mixFocus on the right product mix
• Sustain the businessSustain the business
41. 8“P”s8“P”s
Traditional four “P”s are:Traditional four “P”s are:
ProductProduct
PricePrice
PlacePlace
PromotionPromotion
Additional four “P” s are:Additional four “P” s are:
PeoplePeople
ProcessProcess
Physical evidencePhysical evidence
ProductivityProductivity
The last 4Ps represent the systemic vision fromThe last 4Ps represent the systemic vision from
the Marketing point of viewthe Marketing point of view
42.
43. 1)Product, 2)Price, 3)Place &1)Product, 2)Price, 3)Place &
4)Promotion (Traditional)4)Promotion (Traditional)
1) Product items are divided in to eleven categories1) Product items are divided in to eleven categories
2) Less concentric in aggressive selling & rapid profit2) Less concentric in aggressive selling & rapid profit
makingmaking
3) Distinctive advantage to gain customers attention3) Distinctive advantage to gain customers attention
rapidly via prime locationrapidly via prime location
4) Promotional activities are-4) Promotional activities are-
Advertisement campaignAdvertisement campaign
NewspapersNewspapers
Some core areas of Sylhet for bill-board adSome core areas of Sylhet for bill-board ad
virtual advertisement via social networkingvirtual advertisement via social networking
44. 5)People, 6)Process, 7)Physical5)People, 6)Process, 7)Physical
Evidence & 8)Productivity (Additional)Evidence & 8)Productivity (Additional)
5) Lead the people, hiring, retaining, training,5) Lead the people, hiring, retaining, training,
and building teamwork.and building teamwork.
6) Concentrating in CRM, Project Management,6) Concentrating in CRM, Project Management,
and Product/service Developmentand Product/service Development
7) Excellence in decoration, proper space7) Excellence in decoration, proper space
allocation & architectural attractiveness alongallocation & architectural attractiveness along
with each counters set upwith each counters set up
8) improving relationships with its suppliers,8) improving relationships with its suppliers,
profitability, growth management & innovationprofitability, growth management & innovation
45. Customer RelationshipCustomer Relationship
Management (CRM)Management (CRM)
Loyal customersLoyal customers
Implementation of CRMImplementation of CRM
Generating more revenueGenerating more revenue
Attracts new future clientsAttracts new future clients
47. Consideration the areas ofConsideration the areas of
CRMCRM
Interface between customer & organizationInterface between customer & organization
Automated all related processesAutomated all related processes
Helps to establish loyal customersHelps to establish loyal customers
Can result in profit makingCan result in profit making
Helpful in managing after sales servicesHelpful in managing after sales services
48.
49. Critical Success Factors (CSF)Critical Success Factors (CSF)
Our Strategies of CSF
Understanding of changing customer needs
Clear and differentiated brand proposition
Aligned multi-channel and customer
management strategy
Innovation culture
Exploiting customer data
Harnessing online communications/
communities
50. Customer Service
Making customer-centricity part of ourMaking customer-centricity part of our
business fabricbusiness fabric
Utilizing workforce planning and optimizationUtilizing workforce planning and optimization
Formalizing in-store training programsFormalizing in-store training programs
Meets or exceeds customer serviceMeets or exceeds customer service
expectationsexpectations
Centralizing customer information and buyingCentralizing customer information and buying
datadata
52. Profit PlanningProfit Planning
Margin is not so highMargin is not so high
Low barrier of entry into theLow barrier of entry into the
marketmarket
Low margin by selling largeLow margin by selling large
quantities of productquantities of product
Less concentric on rapidLess concentric on rapid
profit makingprofit making
53. Asset managementAsset management
Operating,Operating,
Maintaining,Maintaining,
Upgrading, andUpgrading, and
Disposing of assets cost-effectivelyDisposing of assets cost-effectively
54. BudgetingBudgeting
Adequate fundingAdequate funding
Secure the permits andSecure the permits and
licenseslicenses
Purchase all equipmentsPurchase all equipments
Hire employeesHire employees
Investment about 1.5cr.Investment about 1.5cr.
Funding- bank (40%),Funding- bank (40%),
personal (60%)personal (60%)
Five partnersFive partners
55. Resource allocation
We allocate the resources in the scheduling
of activities and the resources required by
those activities while taking into consideration
both the resource availability and the project
time.
56. OPERATION MANAGEMENTOPERATION MANAGEMENT
Operation DimensionOperation Dimension
Operating BlueprintOperating Blueprint
Inventory ManagementInventory Management
Store SecurityStore Security
Transportation & WarehousingTransportation & Warehousing
Store Format, Size & Space AllocationStore Format, Size & Space Allocation
Supply Chain ManagementSupply Chain Management
57.
58. Operating BlueprintOperating Blueprint
Our 7 steps of Blueprint makingOur 7 steps of Blueprint making--
Capture the original dream & visionCapture the original dream & vision
Focus everyone’s daily activities &Focus everyone’s daily activities &
specific goals & objectivesspecific goals & objectives
measure indicators of profitability,measure indicators of profitability,
success & progresssuccess & progress
Concentrate in IT sector,Concentrate in IT sector,
virtualization, online servicesvirtualization, online services
motivated confident & wellmotivated confident & well
informed teaminformed team
cost efficiency & productivitycost efficiency & productivity
Improve customer satisfaction &Improve customer satisfaction &
increase rapid businessincrease rapid business
59.
60. Inventory ManagementInventory Management
Reduce inventory, loss through identification ofReduce inventory, loss through identification of
theft, loss & training issuestheft, loss & training issues
Decrease inventory through optimize orderingDecrease inventory through optimize ordering
Decrease ultimate cost due to forecasting &Decrease ultimate cost due to forecasting &
waste reductionwaste reduction
Increase sales due to reduction in out of stocksIncrease sales due to reduction in out of stocks
Improve margin due to supplier managementImprove margin due to supplier management
61. Store SecurityStore Security
Secure customer’s
properties &
possession
High quality innovative
products & security
solutions
Close-Circuit-television
for safety
Security guards
Have Thai-glass & steel
security system
62. Transportation & WarehousingTransportation & Warehousing
Provide total quality serviceProvide total quality service
Specialized in handling truckSpecialized in handling truck
load & employees to homeload & employees to home
delivery for ordersdelivery for orders
Large size warehouse withLarge size warehouse with
our superstoreour superstore
Urgent products forUrgent products for
customerscustomers
Save more products forSave more products for
increase demandsincrease demands
Short time supplyShort time supply
63. Store Format, Size & SpaceStore Format, Size & Space
AllocationAllocation
Stores Format & Layout: Follows “Grid
Layout”.
65. Store Size
Measured by the number of outlets or stores
that a business operates
As a new entrance we firstly open one outlet
in target location
68. Trend of Weak Supply -ChainTrend of Weak Supply -Chain
ManagementManagement
Order
Size
Time
Customer
Demand
Customer
Demand
Retailer OrdersRetailer OrdersDistributorDistributor
Production PlanProduction Plan
Orders
69. CONCLUSIONCONCLUSION
Cost Cutter will be able to achieve cost
leadership and differentiation strategies with
the help of a lean and agile supply chain
management, along with the strategic use of
information technology. The core
competencies of Cost Cutter will be aligned
with the business environment, therefore
highlighting a positive future outlook for the
company.