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Managing Supermarket Operations: Category Management

This document summarizes operations at a supermarket chain called Subhiksha. Key points: 1) The store stocked 1200 frequently purchased items to meet 90% of customer needs, and focused on top 3 brands in major categories. This allowed them to manage lower inventories. 2) They followed an everyday low pricing model with 8-10% average discounts on MRP. Promotional schemes during the first 10 days of each month drove highest sales. 3) The 13-person staff was primarily young women new to retail. Continuous training and rewards for performance and sales targets helped motivate the staff. High attrition was a challenge.

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Suvarna Kamble
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48 views

Managing Supermarket Operations: Category Management

This document summarizes operations at a supermarket chain called Subhiksha. Key points: 1) The store stocked 1200 frequently purchased items to meet 90% of customer needs, and focused on top 3 brands in major categories. This allowed them to manage lower inventories. 2) They followed an everyday low pricing model with 8-10% average discounts on MRP. Promotional schemes during the first 10 days of each month drove highest sales. 3) The 13-person staff was primarily young women new to retail. Continuous training and rewards for performance and sales targets helped motivate the staff. High attrition was a challenge.

Uploaded by

Suvarna Kamble
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Managing Supermarket Operations

Category Management
Stocked 1200 SKUs 90% customers value requirements. Stocks products of the top three brands in each product category - Sunflower oil, detergent powder, etc. Managed operations at lower inventories Allowed 8%-10% discounts Assortment was monitored carefully for capturing 90% customers value requirements

FMCG
950 Branded merchandise and private label SKUs were stocked

GROCERY
150 Branded and private label SKUs were Sold

Brands reduced the uncertainty while choosing the products and also gave the guarantee of quality. As a result the consumers liked it. Private labels were: Tatwa Aaharam Subhiksha

Marketing
Everyday low pricing model was followed Average discount of 810% on all the products with reference to MRP Both MRP and subhiksha store price was displayed at each SKU Mainly grocery items was having great flexibility in pricing at the regional level

The highest sales occurred In the first 10 days of every month Promotional schemes were offered during that time Example: for purchases above Rs. 500, 750, and 1000 get RS. 25, 50, and 75 off. Sometimes Gift-based promotional schemes were offered It advertised through local radio channel Radio Mirchi No advertisements through newspapers and mailings Even TV advertisements were minimal Advertisements in newspapers and TV when it started operations in any city to create awareness The primary and important promotional medium adopted by subhiksha was Word-of-mouth So the advertisement expenses spend by subhiksha wad relatively low

Crew
13 people (two shifts)
2 cashiers 2 customer sales representatives (CSRs) 2 sales assistants 1 person assigned for home delivery

Cashiers handled billing & payment transactions CSRs for store cleaning and hygiene, merchandising and stock arrangements Sales assistants mainly interacted with customers An assistant Retail Outlet Manager (ROM) managed the store in 2 shifts

Most of the staff members were young women and new to retail business Continuous on-job training Staff was motivated and promoted to the cashier position o the basis of performance Staff members wee rewarded with coupons once the store achieved its sales target Attrition was the main problem faced by subhiksha stores

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