subhiksha

1. PPT ON PRESENTED BY: GARIMA SINGH GUNJAN SARASWAT KHUSHBOO JAIN

2. INTRODUCTION 1. Subhiksha in Sanskrit means “the giver of all good things in life”. 2. In the year1997, Subhiksha opened its first store at Thiruvanmiyoor in Chennai with an investment of around Rs 4-5 lakh, with the theme, "why pay more when you can get it for less at Subhiksha.” 3. Mr.R. Subramanian had established Subhiksha Department Store.

4. THE PEOPLE CHAIRMAN & M.D Mr. R. Subramanian BOARD OF DIRECTORS Ms. Rama Bijapurkar Mr. Kannan Shrinivasan Mr. S.B Mathur Ms. Renuka Ramnath Mr. Ajim Premji(as a board member)

5. 4.PRODUCT PORTFOLIO- a). Supermarket: Includes quality groceries, packaged foods, cosmetics, household provisions etc. b). Fruits & Vegetables: Includes fresh fruits and vegetables sourced directly from farms on city outskirts by Subhiksha and made available to the customers at very reasonable prices. c). Pharmacy: Subhiksha stores generally have a in store pharmacy which stores mostly basic medicines. All medicines are made available to consumers at a flat 10% discount. d). Telecom: Subhiksha is recently forayed into mobile retailer business and offers handsets, recharge cards and accessories from all leading cell phone manufacturers’ at lower prices.

6. 5. From 150 stores in Sept. 2006 all of which were in Tamil Nadu, the company grow rapidly to over 1600 stores by Sept. 2008 across the country. 6. Goods were 8-10% lower than maximum retail price. 7.BUSINESS VISION & MISSION: VISION- “To emerge as the largest retailer in the ‘food grocery pharmacy’ segment in all geographical reasons we operate from.” MISSION- To deliver consistently better value to Indian customers, has guided Subhiksha to deliver savings to all consumers on each & every time that they need in their daily lives,365 days a year, without any compromise on quality of goods purchased.

7. Retail strategy Subhiksha focuses on two factors for its model, they are called the 2c’s: CRITICALITY OF COST CONVENIENCE OF BUYING The following points will make it much clearer as to how Subhiksha is integrating all that it has to achieve the above 2c’s: Opening a chain of no-frills stores-no A.C. no fancy lighting and no touch & feel experience(customer have to ask for products at Subhiksha store) was a deliberate strategy. Their approach combines the local low-overhead front –end of Indian kirana shops with the efficient supply chain of large retailer. Their USP was Wal-Mart style- everyday low price(5-10% less than MRP and/ or their nearest competitor), enabled by combining centralised buying and an efficient supply chain with their simple(and inexpensive) store format.

8. 4. Subhiksha follow an Everyday Low Price Scheme(ELDP) where they offer the lowest prices every single day of the year on almost everything that is sold from the stores. 5. Shops are located not on the main road, but just off it, to take advantage of vastly lower rentals. 6. The catchment area of customers is rarely beyond a two km-radius, since its customers usually come on two wheelers or on foot.

9. REASONS FOR FAILURE OF SUBHIKSHA 1.Over expenditure on advertising:Subhiksha trading services has come under fire from TV channels for not clearing advertising dues that run around rs.8 crore.2. Lack of strong H.R policy and staff:Due to this Subhiksha was not able to retain the talent which he initially bring into junior, middle and high level management. 3.Strong competition: Subhiksha has to compete with its high profile competitors like RPG, Reliance Retail and Future Groups etc. 4. Huge rental and lease bills: They were paying huge rentals for these stores, which was a huge drain on the company finances. 5. Over expenditure on wages and rent: Subhiksha is believed to owe Rs.35 crore against goods, Rs.18 crore against wages and 20 crore against lease rents. The company according to report, is also carrying a debt of at an average interest cost of 12% p.a.