A case study on Store-24

Submitted ByRobab Mirza Priya Chaturvedi Raunak Kurl Shashank Gupta Aditya Tandon Komilla Singh Sumiti Singh Disha Sharma Deepak Singh Negi

About STORE -24

4th largest convenience retailer store in New England. Out of 75 stores, no. of stores in: 1. Urban areas: 30 2. Sub-urban areas: 45 Stores were similar with respect to many aspects of their operations. Focus : optimizing existing sites through emphasis on store-level marketing & operation. Differentiation strategies : Ban boredom Cause you just cant wait

DIFFERENTIATION STRATEGY OF STORE-24

BAN BOREDOM
Fun and entertainment experience Creative in-store atmosphere End-caps contained high margin products. Increased interactions between employees and customers. Aimed at Greater loyalty Provides autonomy to store managers.

DIFFERENTIATION STRATEGY OF STORE-24

CAUSE YOU JUST CANT WAIT
Fast and friendly service Efficient service High in-stock positions Store cleanliness High quality Freshness of foods and beverages

PROBLEMS AT STORE-24

Ban boredom strategy

Was it a promising strategy?

Or
Does it need an improvement at implementation level?

BALANCED SCORECARD: The Performance Measurement System

Performance measures were organized around the four traditional balanced scorecard perspectives
Financial measures Customer measures Internal measures Learning & growth measures

CAUSE AND EFFECT RELATIONSHIP

PARAMETER MEASUREMENT LEVEL

Financial perspective

Return on capital deployed EBIT Gross profit growth Sales growth Inventory turnover

EBIT divided by value of equipment & leaseholds Contribution less lease cost Growth in gross profit from same quarter in prior yr. Growth in sales Days inventory for general merchandise

Corporat e Store Store Store store

PARAMETER

MEASUREMENT (based on telephone survey)

LEVEL

Contd
Corporat e Corporat e Corporat e Corporat e Corporat e

Customer perspective

Loyalty % would Primary store recommend convenience store24. Enjoyable % stating store24 experience as their primary Product/servi convenience ce attributes % viewing it as Customer fun &/or relationship entertaining place Brand image to shop %viewing that it serves products of high quality % viewing it as established and recognized brand.

PARAMETER

MEASUREMENT

LEVEL

Internal process Operational excellence perspective

Walk-through audits Concept Store leveldevelopment/in compliance with novation those of Customer operational management standards CSR Net gross profit from new concepts. No. of loyal customers

Store Corporate Store corporate

PARAMETER

MEASUREMENT

LEVEL

Learning and Growth perspective

Human capital Skill rating of (mgmt./crew skills store manager& Regional & tenure) employees. corporate Information No. of years store capital employees has Organization been with sore24. capital Use of front and back office technology Need of new technology

Contd Store

FLAWS OF STRATEGY AND IMPLEMENTATION

FLAWS OF STRATEGY AND IMPLEMENTATION Perspective Elements Flaws Recommendations
1. Managers/crew skills Each one of them were not equally talented & experienced. Training needs should be identified Only experienced personnel should be allowed to initiate customer service. Retention should be focused.

2. Demographic factor 3. Product selection

Stores were similar across different cities. No or very little focus on product range

Separate promotional strategy for different geographic location. Focus should be on the needs of different target customers.

Perspective Elements
4. Positioning of ban boredom strategy

Flaws
Failure to relate it with customers need and value proposition.

Recommendations
Separate promotional scheme for different age groups. Apart from products end-caps should include services like games, adventures.

Contd

5. Employee satisfaction

Employees with low skill-sets were not able to identify themselves with it. Bi-annual visits

Proper focus should be on employee satisfaction and their motivation. More frequent visits should be managed.

4. Strategy implementation