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
 Task
Suggest an assortment based on competitive strategy
for Girish to meet the challenges posed by Kirana
stores & Hypermarkets
OVERALL DATA
ANALYSIS
 Category break up

Merchandize sales; 45%

Grocery sales; 55%

 Highest contributors of sale (%)
600

500 480.49

382.22 397.5
400
335.76 345.62
327.32
300

200

100

0
 Highest GMROF grossers (Rs)
600

500 480.49

382.22 397.5
400
335.76 345.62
327.32
300

200

100

0
 Grocery
Category breakup
Essentials (Bulk ordering) Beverages (Direct consumption)
Fast moving (2-3 days) RTE foods (7-14 days)
Impulse products Ocassional

4% 5% 5%
17%
25%

45%
Essentials (Bulk
Sub categories
Beverages (Direct Fast moving (2-3 RTE foods (7-14
ordering) consumption) days) days) Impulse products Occasional
Beverages/carbonat Cereal/other
Flour/meal ed breakfast food Canned fruit Candy Desserts
Baking
mixes/pancake
Oils/shortening Bottled water Tea Dried fruit 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
 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
 Beverages
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
 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
 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
 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
 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 SKUs / 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
 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
 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 Skus we can increase the

usage and induce trials
Overall strategy for grocery

Frequency

Penetration
 Staples Niche Variety enhancers Fill ins

Beverages/carbonat Soups Pickles

ed
Desserts
Bread Prepared foods Jam/jellies/spreads
Baking
mixes/pancake mixes
Snacks
Baking needs
 Merchandize
Merchandize category breakup

Hair care products; 26%

General personal care; 29%

Oral care products; 11%

Mens personal care; 8%
Women personal care; 25%
 Subcategories
Hair care Oral care Mens Womens General
Personal care personal care personal care

Oral care
Conditioners accessories After shave FB deodorants Hand wash

Hair colors Toothbrush Cartridges Body lotions Shower gels

Skin care
Hair creams Toothpaste Razors Body oils accessories

Cosmetic
Hair gels Toothpowder Shaving brushes 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

 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 skus
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
 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
 Mens Personal care
Item Sales GM (%) GMROF
contribution
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
 Womens 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 SKUs should be added
to increase sales
 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
Overall strategy for Merchandize

Frequency

Penetration
 Overall Strategy
Staples Niche Variety Fill ins
enhancers
Soap Hair colors Hair oil Shower gel

Toothpaste Face wash Skin creams Hair powder

Shampoo
 Assortment strategy for GFS
Winner (HH)
Sleeper (HL)
Cereal/breakfast, FB
Talcs, Face wash, Skin
deodorants, shampoos,
creams, Hair oil, Soup,
soaps, Body lotions,
prepared foods, Sauces
Toothpaste
GROWTH

Questionable (LL) Morning store (LH)

Shower gels, Oral care Beverages/carbonated,
accessories, Toothpowder, Bread, Candy,
Milk Salts/spices

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