FALL OF

SUBHIKSHA

Group 5 : Gurmeet, Isha,

Pranav, Sakshi
Sneha, Tanya

Fall of Subhiksha

Fall of Subhiksha
W H AT N O T T O D O I N R E TA I . . .

The way forward

Subhiksha faced several shortcomings in its marketing, operations, finance and HR
functions. Its Marketing function faced issues because of lack of focus in the
product category, poor brand building, intense competition from the already
existing kirana stores and giving discount on all the items which was not necessary
at ll. They were hit by high costs due to expansion activities and also faced issues
in their Sales and Distribution and IT systems. They started giving importance to
the quantity rather than quality in order to increase sales. This also led to
inefficient inventory management. At the same time, their finances were being
managed by debt and their reliance on it increased day by day. There was more of
cash outflow than inflow which led to fund crunch. The human capital was not
properly managed as there were limited members with experience in retail and
employees turned towards unethical practices. Their customer service was also
poor as they had poor web interface along with poor interiors and many a times
required products were not available due to mismanagement in inventory.
As the major motive of the study is to provide a solution to the existing problems of
Subhiksha so that they can increase their market share, a restructuring plan is
suggested. This is based on the market research that has been done at Day-Mart.
Market Segmentation:

Geographic
o Top 3 cities with a population of over 4 million must be chosen in any of
the regions of India
Demographic
o People in the age group of 20-50 must be targeted
o Families with 3-4 member use these stores most often
o The family life cycle of the customers can be anything from married
with children to single parents young people
o Occupation Homemakers, Retired men and women, Professionals
Psychographic
o Social class - Middle, Upper middle and upper class
Behavioural
o Occasion Regular occasion
o User status and rates Regular user, medium user and heavy user
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Fall of Subhiksha

o Loyalty status strong

Customer profile:
The targeted customer profile is a homemaker who looks out for value for money
grocery while making daily/weekly/monthly purchases. She searches for the
cheapest available option but at the same time doesnt compromise on the quality
of the product. She will be attracted to Subhiksha stores only if she finds a wide
range of products as compared to her local Kirana store. Also, if the place offers
her products ranging from fruits and vegetables to FMCG and food items, she
would be keen on coming to the place as she can browse through the products
herself and make her own choice. Word of mouth communication is the best form
of advertising for such stores.

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