Retail case study ignou

Communication EG The intentional structure of roles in a formally organized enterprise is called formal organization. Formal organisation must be flexible. A network of personal and social relations not established or required by the formal organisation but arising spontaneously as people associate with one another is an informal organization.

Retail case study ignou

Discuss the scope and prospects of retail sector in the Indian context, describing the drivers of growth of retailing in the country. Explain with suitable examples. Discuss with suitable examples the factors necessary to consider before selecting a final site for any store.

Briefly discuss the various retail pricing approaches available to the retailer. What purpose do they serve in the overall retail business? Briefly discuss the various types of non-store retailing currently in vogue.

What are their limitations? Write notes on any Retail case study ignou of the following: Read the case given below and answer the questions given at the end of the case. Margin Free Market Private Ltd. Discount stores are slowly arriving in India and industry insiders feel they will spearhead a revolution in organized retailing.

On the list of top retailers in the world, quite a few are discounters. Incidentally, the largest retailer in the world, Wal-Mart, is a discount store. Margin Free was registered as a co-operative society in in Kerala and entered the supermarket business in It is run by the Consumer Protection and Guidance Society, a charitable organization based in Thiruvananthapuram.

Today, it has emerged as India's number one supermarket chain with stores and a turnover of Rs. Margin Free purchases directly from manufacturers at ex-factory price and sells at lower prices than the MRP, as it eliminates the margin accrued in the traditional manufacturer-stockist-wholesaler-retailer network.

Margin Free takes extreme care while pricing the products through its entire stores. It has employed software which evaluates the price by minimizing profits. Every store is computerized and utilises the software to determine the pricing.

This helps in ensuring that the products are rationally priced. Margin Free has found exceptional success in its scalable franchised model. It is now looking to upgrade to a central warehouse concept. The success of Subhiksha and Margin Free indicate that the discount war will hot up in the coming months but it will be the customer who will emerge as the final winner.

Margin Free also gets an average credit of days from suppliers, which it sells, on an average in 10 days, thereby even earning a notional interest on its sales also. Its strategy has made it flush with funds, which can finance further expansion.

Margin Free uses its customer base as a bargaining power to strike discount deals. Any dealer who wants to set up a Margin Free store has to buy at least rupees one lakh worth of share of the main Margin Free holding company. Margin Free has a consumer base of 6 lakhs and it sells them consumer cards at Rs.

The stores are now opting for a major expansion drive. A key part of this is the introduction of private labelling, which is the season's flavour in the retailing industry.

For the purpose they have shortlisted 15 items - all generic labels like rice, sugar, etc. Hence, they will be in a better position to provide quality stuff at considerably low prices within easy reach of an average middle-class family. For example, a packet of tea which sells for an MRP of Rs.

The chain is now planning to open huge Margin Free hyper markets, The first such hyper market, featuring an array of wares and spread over 50, square feet of well-laid out space, is planned to open at Ernakulam. The two other hyper markets would be opened in Thiruvananthapuram and Kozhikode.

If the success of retail activity is measured in the number of outlets, the existing odd chain of franchisees must have already made Margin Free the largest 'pure retail chain' as distinct from retailers who are manufacturers in the private sector Even going by the number of footfalls, the Kerala-based retailer must have already beaten competition by a handsome margin.We suggest to get good marks, make sure that you submit unique and good answers of all questions, especially case study and numerical.

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Retail case study ignou

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