1. GIRISH FOOD STORE-CASE STUDY
GROUP – ADRENALINE
GROUP MEMBERS
Adil Merchant 4
Ambreen Khan 11
Bhupesh Shelar 25
Fawaz Ansari 58
Shadath Mansoori 92
Zaid Khan 116
Zubair Khan 120

2. Task
Suggest an assortment based on competitive strategy for Girish to meet the challenges posed by Kirana stores & Hypermarkets

3. OVERALL DATA ANALYSIS

4. Category break up

7. Grocery

8. Essentials (Bulk ordering) Beverages (Direct consumption)
Sub categories
Essentials (Bulk ordering)
Beverages (Direct consumption)
Fast moving (2-3 days)
RTE foods (7-14 days)
Impulse products
Occasional
Flour/meal
Beverages/carbonated
Cereal/other breakfast food
Canned fruit
Candy
Desserts
Oils/shortening
Bottled water
Tea
Dried fruit
Baking mixes/pancake mixes
Sugar
Juices/drinks
Bread
Fruit drink mixes
Baking needs
Salt/spices
Cookies
Prepared foods
Milk
Salad dressings
Snacks
Soup
Baby Food/formula
Dried vegetables
Milk modifiers
Syrup
Coffee
Sauces
Pickles
Jams/jellies/spreads
Pasta products

9. Essentials
These are items that are bought in bulk and stocked for a long time
Item
GM(%)
GMROF
Sugar
15.18
316.75
Salt/spices
38.17
289.56
High GMROF of sugar indicates better stocking pattern of sugar
Salt/spices have a high gross margin but less GMROF thus better stocking by reviewing space could lead to higher GMROF

10. Beverages/carbonated
These are beverages which can be consumed directly
Item
GM (%)
GMROF
Beverages/carbonated
3.11
42.92
Bottled water
30.76
116.21
Juices/drinks
21.99
205.78
Carbonated has highest sales contribution of 11.16% but the lowest GM thus it is important to attract customers but space could be better utilized to increase GMROF
Bottled water has highest GM thus we could run offers on it

11. Cereal/other breakfast food
Fast moving products
Usually brought twice a week
Biggest sales contributor to the store
Item
GM (%)
GMROF
Cereal/other breakfast food
17.72
480.49
Tea
16.09
301.54
Bread
25.70
397.50
Cookies
26.50
220.67
Milk
13.61
105.11
Snacks
28.39
345.62

12. Contd.. Cereal/Breakfast
Cereal/breakfast has the highest GMROF thus more ranges could be added as it is the highest contributor
Pricing should be reviewed to increase share
Could be kept with RTE foods to increase their visibility
Milk
Keeping milk should be reviewed since it has low sales contribution, low GM and also has highly perishable nature
Baby food/formula
These could be stocked at the end since they are essentials it would help in visibility of other categories

13. RTE foods
These are processed, ready to eat foods which are characterized by a average healthy gross margin of 23%
These are bought every 7 to 14 days
Item
GM (%)
GMROF
Dried fruit
30.41
129.13
Coffee
17.44
96.67
Pickles
32.00
190.92
Pasta Products
33.11
146.55

14. Analysis RTE Dried fruits
They have the lowest sales contribution of 0.16% but high GM and GMROF
Safety stock can be increased from 8 to 14 and SKU’s / varieties could be increased
They occupy minimal space hence GMROF could be increased
Coffee
Space should be utilized properly to increase GMROF of coffee from 97 to near subcategory average of 157
Pickles and Pasta
Both have high GM and GMROF thus the product mix should be reviewed to give higher sales from these two

15. Impulse product
Item
Weekly sales
GM (%)
GMROF
Candy
682
32.66
231.17
Have high sales but not significant contribution (3.5%) to sales
Have high Gross margins, thus makes it an ideal gift product
We could take a little hit in margins and give it as a gift, more for less to increase the inventory turnover

16. Baking mixes/pancake mixes
Occasional products
These are bought only for certain occasions in this case recipes
Item GM
GMROF
Desserts
22.63
155.75
Baking mixes/pancake mixes
17.48
124.81
Baking needs
25.32
209.21
These products are going to be bought only for certain occasions thus our objective is to increase the usage
By offering trial packs and more Sku’s we can increase the usage and induce trials

17. Overall strategy for grocery
Staples
Niche
Variety enhancers
Fill ins
Frequency
Penetration

18. Staples Niche Variety enhancers Fill ins
Beverages/carbonated
Soups
Pickles
Desserts
Bread
Prepared foods
Jam/jellies/spreads
Baking mixes/pancake mixes
Snacks
Baking needs

19. Merchandize

20. Subcategories Hair care Oral care Men’s Personal care
Women’s personal care
General personal care
Conditioners
Oral care accessories
After shave
FB deodorants
Hand wash
Hair colors
Toothbrush
Cartridges
Body lotions
Shower gels
Hair creams
Toothpaste
Razors
Body oils
Skin care accessories
Hair gels
Toothpowder
Shaving brushes
Cosmetic bleaches
Skin creams
Hair oils
Shaving creams
Face cleansers
Sunscreens
Hair powders
Shaving foams
Face wash
Body wash
Shampoos
Shaving gels
Hair removers
Soaps
Sanitary pads
Talcs

21. Hair care products Item GM(%) GMROF Hair colors 27.11 313.15 Hair oil
16.71
192.97
Hair powders
27.00
309.84
Shampoos
20.32
234.71
Shampoos have the highest sales with 14.6%, we could add more ranges and sku’s to move it faster
Hair color has the highest GMROF in this subcategory and thus space is properly utilized
Hair oil has 6% sales contribution but the GM is only 16.7% it must weed out slow movers and review the product mix
Hair powder has the least sales contribution but has high GM and GMROF thus a slight cut in margin can be taken to increase promotional sales and club it with hair oils which is the second most fast moving product of the sub category

22. Oral care products
Item
GM(%)
GMROF
Oral care accessories
13.40
155.56
Toothbrush
33.10
382.22
Toothpaste
13.42
155.06
Toothpowder
14.46
167.35
Toothbrush has low sales contribution of 2.2% but offers high GM and GMROF, thus its margins could be reduced a bit and tagged along with toothpaste which has sales contribution of 8.3%, for a promotional offer
Oral care Accessories and Tooth powder have sales contribution of 0.02% and 0.06% respectively and also do not offer high GMROF, thus they could be dropped from the assortment

23. Men’s Personal care
Item
Sales contribution
GM (%)
GMROF
Razors
4.04%
26.16
302.20
Shaving brushes
0.18%
25.11
290.85
Shaving Brushes have lows sales contribution but give higher GM and GMROF
They can reduce the margin on brushes and club it with razors which has highest sales contribution in the subcategory
All the products in this sub-category occupy minimal space thus could be displayed at end of aisle or stocked in a vertical fashion

24. Women’s Personal Care
Item
GM (%)
GMROF
FB deodorants
28.34
327.32
Body lotions
20.65
238.55
Face wash
26.64
307.67
FB deodorants has 6.9% sales contribution as well as high GM and GMROF, more ranges should be added and price should be reviewed
Body lotions has the highest sales contribution in the sub category (11.5%) but does not match it with high GMROF, the space should be reviewed and the slow moving categories should be removed
Face wash has low sales contribution (1.5%) but offers higher GMROF, the product mix should be reviewed and more fast moving SKU’s should be added to increase sales

25. General Personal Care
Item
GM (%)
GMROF
Shower gels
14.74
170.14
Soaps
26.57
306.89
Talcs
29.06
335.76
Shower gels have low sales contribution of 0.17% also do not offer high GM,GMROF thus the product can be eliminated form the assortment
Soaps have a high sales contribution of 15.6% and also offers high GM,GMROF thus the current efforts should be continued and price could be reviewed to increase the GM
Talcs have a low sales contribution of 3.3% but offers higher GMROF, thus it could be tagged with soap by taking a cut in margin since both are complimentary products, the product mix needs to be reviewed

26. Overall strategy for Merchandize
Staples
Niche
Variety enhancers
Fill ins
Frequency
Penetration

27. Overall Strategy Staples Niche Variety enhancers Fill ins Soap
Hair colors
Hair oil
Shower gel
Toothpaste
Face wash
Skin creams
Hair powder
Shampoo

28. Assortment strategy for GFS
Sleeper (HL)
Talcs, Face wash, Skin creams, Hair oil, Soup, prepared foods, Sauces
Winner (HH)
Cereal/breakfast, FB deodorants, shampoos, soaps, Body lotions, Toothpaste
GROWTH
Questionable (LL)
Shower gels, Oral care accessories, Toothpowder, Milk
Morning store (LH)
Beverages/carbonated, Bread, Candy, Salts/spices
SHARE

29. Category Management Tactics
Category role
Category tactics
Assortment
Pricing
Shelf Position
Destination
Cereal/Breakfast
Value pricing
Along with RTE
Preferred
RTE foods, General Personal care
Differentiated pricing
End of the aisle, Near ‘Winners’
Seasonal/Occasional
Desserts, Baking products
Promotional pricing
Checkout counter, promotional counter
Convenience
Bread, Snacks,
Carbonated, Men’s personal care
Going rate pricing
Occupy minimal space, stocking more important than visibility

30. THANK YOU