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Sumama Syed BBA5F Retail
Sumama Syed BBA5F Retail
Sumama Syed BBA5F Retail
Midterm
[Course title]
1811339 BBA-5 (F)
Sumama Syed (1811339)
Question No.1
Direct to Consumer:
In direct to consumers she will have to sell her cakes to consumers
directly which will require investment in opening shops, hiring
shopkeepers, transport, distribution, etc. if she sells her cake to
retailer for now at Pkr 80 and increase her business.
Conclusion:
In my opinion this price for selling cake to retailer is reasonable for
now as she is saving time, transport cost, distribution cost, etc.
which adds up to the extra cost that the retailer is adding. If she
continues to sell her product to retailers at pkr 80 then this will
provide her with the opportunity to gain experience, work on her
product, expand its business toward D2C in the future. Then she
can sell her product at pkr 90 including the additional cost incurred
for D2C.
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Sumama Syed (1811339)
Question No.3
Traditional grocery stores in Pakistan are facing competitive issues
due to the new super store and markets.
Problem:
The first challenge it faces is that traditional stores are small in size
and does not have vast variety of products while supermarkets are
huge, and variety of products are available. Therefore, consumers
tend to go to supermarkets than traditional Karyana store.
Solution:
To overcome this problem the karyana store can observe its
consumer preferences and only acquire those selected products
and they can renovate their shop to utilize its space more
efficiently.
Problem:
Secondly, the supermarkets get its products directly from
manufacturer at lower cost due to bulk buying and then they sell at
relatively low rates than the local karyana who get their products
from retailers at relatively higher price.
Solution:
Karyanas can provide other service such as home delivery or sign
contracts with company to get products at a lower price.
Problem:
Thirdly, local karyana stores are losing loyal customers as more
people are shopping from supermarkets.
Solution:
The karyana store can provide credit sales to its daily customers to
keep their loyalty. In the end the more easiness that karyana
provide through innovative services will provide a competitive
edge.
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Sumama Syed (1811339)
Question No.2
Nike and Reebok have a vast variety of products for all genders and age
groups. Nike is expensive than reebok. Bata on the other hand is limited
to children of age 1-12 age and comparatively cheaper than other
brands.
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