“Bachat mera adhikar Shubhiksha mera abhimaan”To Make-over or not to Make-over Presented by- Vinod kumar Arun adhana Deepak bhati Nakul kumar
Shubhiksha ProfileChennai based grocery & pharmaceuticals storeFounded by R. Subramanian in 1997Susmita Misra, Vice-President, Marketing Services of SubhikshaIn 2004, 164 stores all over Tamil Nadu & PondicherryAbout 1600 store all over the IndiaRevenue Rs. 2200 millionAimed Rs. 2800 million by the end of 2005
Goal of the companyOpen store for every two kilometer in Chennai550 store by 2009 in DelhiPlan to expand in other part of India
Strategy adopted by ShubhikshaFocused on the lower & upper middle classOffer a better ambience than typical general storePrices are 8% less than the MRPInform customers about promotional offersStore keepers help buyers in purchase decision
Supply chain & InventoryIt avoid intermediariesGoods directly procure from manufactures In house built supply chain softwareSeparate godowns to stock branded, unbraned & pharmacy productsAll stores are connected through internet
SWOT analysis of Shubhiksha WeaknessStrengths Lake of adequate resourcesBulk purchase. Less attractive shopLesser price than other Lack of employeesTargeted middle class peopleStrong supply chain managementOpportunity ThreatsPlanning in semi metro city. Wall mart is comingAimed to open 550 new shop by2009 Big bazaar expanding its outlets More ,marks & Spencer
Crisis Time Initially pharmacy business faced many troubleOther pharmacist protested & damaged the storesLower price created doubt about quality standard in the mind of drug inspector it fallowed by customersGlaxo refused to supply the drugsIt filed a suit against Glaxo & won the case.
Current scenarioCompany has a total debt of around Rs 750 crore,Need funds to operating requirementsLooking for selling stake to raise fundsUnable to pay wages, rentals and its suppliers.Trying to protect its store & assets but it has been crippled due to shortage of staff.