Sales & Distribution Management Project Report (SP ’13) Marvi Supermarket

Marvi
Supermarket

Course:
Sales & Distribution Management

Class ID:

57114

Instructor:
Sir Naeem Bhojani
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 Table of Contents

Executive Summary.........................................................................................................5
Introduction...................................................................................................................... 7
Project brief.................................................................................................................... 7
Opportunity Rationale.....................................................................................................7
Porter’s Five Forces Analysis..........................................................................................9
Bargaining power of the Customer.................................................................................9
Bargaining power of the Suppliers..................................................................................9
Threats of new Entrants..................................................................................................9
Threats of Substitutes......................................................................................................9
Rivalry among the existing Players...............................................................................10
Economic Analysis.........................................................................................................11
Key highlights............................................................................................................... 13
Cultural & Demographic Analysis................................................................................14
Rationale behind choosing Hyderabad for setting up the business............................15
SWOT Analysis..............................................................................................................17
Strength......................................................................................................................... 17
Weakness...................................................................................................................... 17
Opportunity...................................................................................................................17
Threat............................................................................................................................ 18
Critical factors for Success............................................................................................19
Legal Procedure.............................................................................................................20
Product Features............................................................................................................25
Who.............................................................................................................................. 25
What.............................................................................................................................25
Why.............................................................................................................................. 25
How.............................................................................................................................. 25

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Promotional / Communicating Strategy.......................................................................26
Giving Customers A Personal Touch............................................................................26
Offering New Updates..................................................................................................26
Provide Informational Content......................................................................................26
Promote Sales Events....................................................................................................26
Announcement Of Other Special Events......................................................................27
Loyalty Service For The Permanent Customers............................................................27
Product Strategy............................................................................................................28
Distribution Strategy.....................................................................................................29
Cost Saving................................................................................................................... 29
Time Saving.................................................................................................................. 29
Customer Convenience.................................................................................................30
Customers get low price even on small quantity...........................................................30
Resellers provide valuable information.........................................................................30
Risk Mitigation Plan......................................................................................................32
Project Implementation Plan........................................................................................34
Retail Store Opening Work Breakdown Structure.....................................................35
Resource Management Plan..........................................................................................36
Site Selection................................................................................................................36
Store Design.................................................................................................................36
Exterior......................................................................................................................... 36
Build out.......................................................................................................................36
Exterior......................................................................................................................... 37
Utilities.........................................................................................................................37
Communications Network............................................................................................37
Application Implementation.........................................................................................38
Quality review..............................................................................................................38
Staffing.........................................................................................................................38
Merchandising..............................................................................................................38

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 Building Maintenance...................................................................................................39
Marketing.....................................................................................................................39
Updates Communication...............................................................................................39
Grand Opening.............................................................................................................. 39
Financial Assessment & Projection..............................................................................40
Hazard Mitigation & Safety Checklist Marvi Supermarket.......................................41
Conclusion......................................................................................................................42

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Sales & Distribution Management Project Report (SP ’13) Marvi Supermarket

Executive Summary

Pakistan retail industry is a derivative of the growing economy, changing

demographics and preferences of the Pakistani consumers. Retailing format like
supermarkets, department stores, mega stores, shopping malls and retail chains had
come up on the country with varying intensity during the 1980’s and 1990’s, have
now started proliferating. Organized retail is booming and creating huge
opportunity for enterprises. Retailing business is emerging as one of the good
business ventures in Pakistan as it provides all the basic merchandise under one
roof.

The departmental stores and supermarkets are large retail stores organized
into various departments offering a variety of merchandize, commonly part of
retail chain under one roof. In Pakistan, the concept of stores has gained popularity
in late eighties after the emergence of Utility Stores by the government. Keeping
in view on consumer’s needs and requirements, large investment has been made in
superstores by few multinational companies. i.e. Metro, Macro, Debenhams and
etc. Foreseeing the tremendous business opportunity, local entrepreneurs have also
opened a number of local stores in almost all the major cities of Pakistan. The
increasing number of hypermarkets, supermarkets, departmental stores and
shopping malls is the consequential of this investors’ keen interest in this
particular business area.

Economically, one of the paramount reasons of this change is the structure

of Pakistan’s economy has shifted from a mainly agricultural based to a service
based. Agriculture and industry sector now account for about 22% and 24% of
GDP respectively, while the services sector accounts for 54% of the GDP. A
department store or supermarket is a retail establishment which specializes in

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satisfying a wide range of the consumer's personal and residential durable products
needs; and at the same time offering the consumer a choice multiple merchandise
lines, at variable price points, in all product categories.

Besides choosing the covered area for a retail store, the location of the store
is important factor for any retail organization. Spending time and money wisely in
the process of site selection is of primary importance. In this pre feasibility study,
we would try to defy the mindset that these stores are only meant to be opened in
big cities and their operations are only prolific in those cities. In this study, it has
been proposed to open a store in “Hyderabad, Pakistan” and the proposed name is
‘Marvi Supermarket’.

It has been assumed that the proposed store is to be opened in an area where
there are 3,000 households present and their monthly spending on an average is
Rs. 4,000. The total cost of establishing a store in developing areas is estimated at
Rs. 58 million including Rs. 10 Million as long term debt. Project’s Net Present
Value (NPV) is positive & stays at Rs. 14,220,103, IRR is 17%, MIRR is 15%,
Payback period for proposed supermarket is 2 years & 3 months, and Profitability
Index is Rs. 1.25.

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 Introduction

Project brief
Initially, the proposed store will provide variety of goods ranges from
groceries to crockery, general items and alike to the customers under one roof. The
proposed project is a double story supermarket on an area of approximately 3,000
sq. ft. The project will offer following broad categories of goods to its customers:

 Groceries & daily household products

 Packed / tinned food items
 Crockery and plastic items
 Soaps detergents and domestic chemicals
 Ice-cream and beverages
 Confessionary
 Stationery, greeting cards and gifts
 General items

It must be observed here that initially the store does not aim to sell the
perishable items or the items having low shelf life. The rationale behind this
strategy is that since this store would be the first of its kind and the people may be
hesitating to enter in the store, getting involved in the business of perishable items
like fresh meat and fruit would be a risky venture. Once the people of Hyderabad
are familiar with the store, we would expand our product line by not only adding
perishable items but also the garments, electronic goods and home appliances.

Opportunity Rationale

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 In Pakistan concept of such stores has gained popularity in late eighties
after the emergence of Utility Stores by the government. Currently, large
investment has been made in superstores by few multinational companies i.e.
Metro, Macro, Cosmo Cash & Carry, Debenhams and etc. However in small size
departmental stores and supermarkets, private sector has made it one of the
successful businesses in Pakistan.

Public residing in the big cities has already liked this concept due to the
availability of all basic utilities under one roof which saves their time about which
people are more conscious these days. Now, it is time, when the people residing in
Hyderabad would have a store for them that is going to offer them the same
pleasant and hassle-free shopping experience, which the people of big cities enjoy.
Based upon Michael Porter’s model, the factors validate that this project would be
viable in this city.

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 Porter’s Five Forces Analysis

Bargaining power of the Customer

 Presently, no departmental stores / supermarkets are operational in the
city at this level.
 Availability of a variety of goods under one roof for the customers.
 All new shopping experience for the customers would make them
inclined towards the store.
 Incentive to save more would bind them to come to the store.
 Because of small city & less distance, people can visit frequently.

Bargaining power of the Suppliers

 Easy access to wholesale markets.
 Positive attitude from the distributers and wholesalers because of their
own benefit.
 Plentiful availability of resources.
 Low transportation cost because of shorter distance for the distributers
and wholesalers.

Threats of new Entrants

 In future, the threat would be high but initially it is low.
 Being the 1st entrant, we would always have an edge and we would
always maintain that edge.

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Threats of Substitutes
 There may be people who would resist our store perceiving it as an
expensive place to shop.
 The people have their faith over the local shops and they provide them
credit too.

Rivalry among the existing Players

 There are no major players; therefore, there is no rivalry.

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 Economic Analysis

Contribution of service sector in GDP of Pakistan – (Fig # 1)

Source: State Bank of Pakistan

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Overall GDP review of Pakistan – (Fig # 2)

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Key highlights

 Pakistan is among the next eleven economies driving global growth’ –

Goldman Sachs’ Jim O’Neill.
 Pakistan is a resilient economy, its real GDP, showing positive growth
in recent years despite significant challenges like the global recession.
 The services sector contributes 53% to the total economy.
 The share of wholesale and retail in services is around 33%, and in
overall GDP, around 18%.
 Retail is the 3rd largest sector in Pakistan after agriculture and
manufacturing and the second largest employer, employing 16% of the
total labor force.
 Pakistan’s retail market is estimated at USD 42 billion with expected
annual sales in excess of USD 105 million by 2012 end.
 Important contributing factors include a young population (73% under
35 years), growing middle income class (currently 81-77 million),
increasing total and urban population, and overall globalization and
liberalization of trade.
 The wholesale and retail trade sector is based on the margins taken by
traders on the transaction of commodities traded. In 2011-12, this sector
grew at 3.58% as compared to 3.53% in the last year.

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 Cultural & Demographic Analysis

 Hyderabad is the second largest populated city in Sindh after Karachi.

 It is 7th largest city of Pakistan.
 The total population of the city is about 6 million.
 Hyderabad is an important commercial centre where industries
including textiles, sugar, cement, manufacturing of mirror, soap, ice,
paper, pottery, plastics, tanneries, and hosieries.
 Influence of Sindhi culture.
 More population is doing business than being employed.
 Peaceful city; it is not a victim of terrorism, extortion and abduction.
 Multinational chains i.e McDonalds, KFC and Pizza Hut have been
setup in the city in the last 5 years.
 The provincial and federal governments have passed mega-
developmental projects for Hyderabad.

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Rationale behind choosing Hyderabad for setting up the
business

 The colossal reason is that presently there is no full-fledged

departmental store / supermarket operational in Hyderabad.
 The competition in the retail industry is very low in Hyderabad.
 Hyderabad has 7th largest populated city which makes it a big
opportunity for a departmental stores / supermarkets.
 Many people have to visit Karachi for shopping. After a supermarket is
opened in Hyderabad, it would be convenient for them and they would
be shopping are frequently.
 Hyderabad is a small city compared to Karachi. Because of being a
small city, the distance to be travelled is short making the people of the
whole city visit the supermarket.
 It has a number of other communities living other than Sindhis & Urdu-
speakers including Punjabis, Saraikis, Pashtuns, Balochis and Memoni.
 By opening a supermarket in Hyderabad, we can also target those
vicinity areas which are near to Hyderabad like Kotri, Jamshoro and a
number of small towns & villages in the range of 20 to 25 kilometers.
 In the last five years, a numbers of national and multinational
corporations have set-up there branches & franchises like McDonalds,
KFC, Hardees and BBQ Tonight. Also the South City Hospital has
decided to open its hospital in the city too.
 Hyderabad is more peaceful as compared to Karachi. Over there, law &
order situation is much better than Karachi. So the opportunity for
growth of business is more in Hyderabad.

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 The electricity outage in Hyderabad is less then Karachi. Due to less
electricity shortage, we can make a lot of savings in fuel expenditure
account.

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 SWOT Analysis

Strength
 First ever supermarket in Hyderabad.
 Being the local residual can understand the market well.
 New concept of selling products.
 Selling at the price less than the other local retail stores’ price.
 A place in the centre of the city (Qasimabad).
 Energetic, young and hardworking entrepreneurs.
 Strong academic backgrounds i.e. MBAs in Finance & Supply Chain
Management.

Weakness
 Lack of experience
 Shortage of skilled and/or experienced labors.
 Credibility factor in the initial phase i.e in the beginning, suppliers may
not give credit to new entrants like us.

Opportunity
 Having a population of 6 million.
 The central point of shopping for interior Sindh.
 The concept of departmental store / supermarket is surging day by day.
Nowadays, people prefer to have all things at one place.
 Developing city.
 Peaceful environment.

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Threat
 It may create psychological effect that big store are expensive.
 Local grocery shops are easy to reach and consumers purchase products
on credit.
 Anticipated opening of large scale chain stores like Metro, Macro, and
Cosmo Cash & Carry etc.

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 Critical factors for Success

 Understanding the need of targeted market and targeted customers.

 Selecting trend-right product for all channels and markets.
 Creating a unique & customer friendly local-culture influenced
environment.
 Improving suppliers’ relationships.
 Determining appropriate marketing strategies i.e. to defy the
psychological contemplation that big stores are expensive.
 Optimizing in season strategies to drive Sales and Profit.
 Optimizing store, space and profitability.
 Optimizing allocation and replenishment effectiveness.
 Managing inventory flow, markdown and promotions.
 Creating customers loyalty programs and staying in-touch with them.
 Strive for continuous improvement & TNA’s (Training Need Analysis).

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 Legal Procedure

Public residing in the big cities has already liked this concept due to the
availability of all basic utilities under one roof which saves their time about which
people are more conscious these days. Now, it is time, when the people residing in
Hyderabad would have a store for them that is going to offer them the same
pleasant and hassle-free shopping experience, which the people of big cities enjoy.
Based upon Michael Porter’s model, the factors validate that this project would be
viable in this city.

No. Procedure Time to complete Associated cost

1 Obtain approval of company name through the Companies Registration 2 days PKR 1,100 (PKR 500
Office (CRO) of the Securities and Exchange Commission of Pakistan offline application fee
(SECP) + PKR 600 return
transport cost from
Hyderabad to Karachi)
According to the Companies Ordinance, 1984, and its amendments in
2002 and update in February 2009, the company proposes one or more
names in order of preference and submits them for approval via e-
Services or in person (offline) to the Securities and Exchange
Commission of Pakistan (SECP). The availability of the suggested
names can first be checked online by searching existing company
names.

The official confirmation (or denial) of the chosen name and its
availability is received by email or via courier upon payment of the
name search fee of PKR 200 (online name reservation) or PKR 500
(offline name reservation) at the bank designated by the SECP. A
timely disposal of cases within 24 working hours is mandated by
Regulation 9 of the CRO Regulation Act, 2003. The approved name is
reserved for 90 days, by which time the company must be
incorporated. The e-Services were successfully launched in August
2008 to improve the efficiency and effectiveness of the SECP’s
business processes. The use of online submissions is growing, but in
some cities a majority of entrepreneurs still prefer to apply in person.
2 Pay the fees for name registration and company incorporation using 1 day No cost
bank challans at the designated Muslim Commercial Bank (MCB)

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 The company must pay the fees for name search availability and
incorporation according to the Sixth Schedule of the Companies
Ordinance, 1984. The challans must be deposited with the Muslim
Commercial Bank, Ltd. They can be downloaded from the SECP
website or obtained at the SECP offices or at the bank.
3 Register the company with the Companies Registration Office of the 4 days PKR 14,600 (PKR
Securities and Exchange Commission of Pakistan (SECP) 14,000 offline
registration fee + PKR
600 return travel cost
The company can complete the registration online through e-Services
from Hyderabad to
or in person at the SECP. It must submit the following company
Karachi)
incorporation documents online or in person:

a. Form 1: declaration of compliance;

b. Form 21: identification of the office’s location;
c. Form 29: particulars of directors, secretary, chief accountant,
auditors, and others;
d. Four copies of the memorandum and articles of association with
each member’s signature (in the presence of a witness).

According to the Sixth Schedule of Fees, effective June 2009, the fees
for incorporation of a company with authorized capital of up to PKR
600,000 are the following:
1. Online submission: registration fee PKR 5,000 and filing fee PKR
2,000;
2. Physical (offline) submission: registration fee PKR 10,000 and filing
fee PKR 4,000.

Confirmation of either the online or in-person submission is received

instantly and the actual certificate a few days later via email and
courier. The company can register with any Company Registration
Office, irrespective of the jurisdiction. All regional SECP offices are
computerized.
4 Make a company seal 2 days PKR 1,000 (private
sector fee)

The company seal is prepared after the certificate of incorporation is

obtained. It is affixed on significant documents according to the
provisions of the articles of association. For example, the company seal
has to be affixed to the resolutions passed by directors in their board
meetings. Entrepreneurs can get the seal made by private companies in
a shop or in the market.
5 Register for income tax by applying for a National Tax Number (NTN) 5 days No cost

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 at the tax facilitation center of the Regional Tax Office (RTO) of the
Federal Board of Revenue (FBR)

According to the Income Tax Ordinance, 2001, every company must

register for income tax and obtain the National Tax Number (NTN)
that is generally required by other registering authorities such as
Chambers of Commerce, the Import-Export Regulatory Authority,
utility authorities, etc. Since 2002, after the introduction of the Income
Tax Ordinance, 2001, an NTN is issued with a continuous valid term
(without the need to renew the number).

To apply, the company must submit a simple one-page form (the NTN
Form) as well as proof of registration, the memorandum and articles of
association, bank account number, copies of the national identity cards
of its directors, and an attestation of the registered business address at
the nearest tax facilitation counter of the Regional Tax Office in
Pakistan.
All applications are forwarded to the Central Registration Office
(CRO) in Islamabad, which allots a uniform NTN to each company.
The center processes the application and issues the NTN at no cost.
The certificate is sent to the registered address of the applicant. The
company can track the application online or through the RTO helpline.
If undelivered, the NTN certification can be collected from the
specified office at the Central Board of Revenue. The income tax is
paid on filing the return, which is due within 6 months of the end of the
company’s financial year (usually on June 30). Reform has been
introduced to make the tax registration fully electronic.
*6 Register for sales tax by applying for a Sales Tax Number (STN) at the 6 days No cost
tax facilitation center of the Regional Tax Office (RTO) of the Federal
Board of Revenue (FBR)

According to Sections 14, 15, and 16 of the Sales Tax Act, 1990, and
Sales Tax Rules, 2006, the company must register for sales tax by
submitting an application using Form STR-1 at any tax facilitation
counter at the nearest Regional Tax Office (RTO). The local RTO
forwards all applications to the Central Registration Office. After
verification, the CRO issues a Registration Certificate bearing the
registration number and mails the same to the registered company, on
prescribed Form STR-5.
*7 Register for professional tax with the Excise and Taxation Department 5 days No cost
of the District

Following the Devolution Plan, 2001, a professional tax is enforced at

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 the district level by the Excise and Taxation Department of the relevant
provincial district. According to the Sindh Professions, Trade, Callings
and Employment Tax Rules, 1976, the tax is levied upon businesses,
professionals, trades, callings, or companies employing such
professionals. The district Excise and Taxation Officer (ET officer) is
empowered to enroll in a survey register every person engaged in any
such business or profession and thereafter, give notice to said enrolled
person. In the case of a new business, the company is required to ask
the ET officer to enroll it by submitting a simple assessment form. The
ET officer issues a demand number (registration number) that acts as
the reference number for the registered company and is noted down on
every bank challan when assessments are paid into the bank.
*8 Register with the Sindh Employees Social Security Institution (SESSI) 11 days No cost

According to the Provincial Employees Social Security Ordinance,

1965, registration with the Employees Social Security Institution is
governed at the provincial level by an independent self-generating
institution called the Sindh ESSI. Employers covered under the scheme
contribute 6% of the wages they pay to insurable workers. The wage
ceiling should not exceed PKR 10,000 per month or PKR 400 per day.
Registration is compulsory. The company must submit a simple form
in order to be allotted a registration number and to receive an employee
card.
*9 Register with the Employees Old Age Benefits Institution (EOBI) 7 days No cost

According to the amendment to EOBI Act, 1976, effective July 2008,

every industry or commercial establishment with 5 or more employees
must be registered with the federal EOBI. Under the EOBI, insured
employees are entitled to a pension (upon retirement), disability (if
permanently disabled), old-age grant (upon retirement if they do not
have the minimum threshold for a pension), and survivor’s pension. A
contribution equal to 5% of minimum wages is paid by the employer
and 1% by the employee.

For initial registration, the company must submit a simple form that is
uploaded into the database. The allotment requests are sent to a center
in Karachi that issues the registration numbers along with certificates
and cards and sends them to the company. Computerization of records
is underway.
*10 Register under the West Pakistan Shops and Establishment Ordinance 5 days No cost
1969 with the Labor Department of the District

Pakistan Shops and Establishment Ordinance, 1969, requires every

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 establishment other than a one-man shop to be registered with the
Deputy Chief Inspector of the Labor Department in each district. This
is to safeguard the labor standards of the workers.

To register, the employer must submit an application using Form A,

accompanied by a bank challan. The application for a new
establishment must be made within 2 months of setting it up.
Registration fees are the following: 1–5 workers: PKR 2; 6–10
workers: PKR 3; 11–20 workers: PKR 5; more than 20 workers: PKR
10. Once the fee has been paid, the Deputy Chief Inspector registers
the establishment in the Register of Establishments using Form B and
issues a registration certificate using Form C. The certificate must be
prominently displayed at the establishment.

* Takes place simultaneously with another procedure.

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 Product Features

Who
Upper-class, middle class and affluent people, who want to buy daily used
products at ease.

What
A supermarket in which all products of daily use are available including
Groceries & daily household products, Packed / tinned food items, Crockery and
plastic items, Soaps detergents and domestic chemicals, Ice-cream and beverages,
Confessionary, Stationery, greeting cards and gifts items, and General items.

Why
People are very brisk with their lives. They do not have much time to go
shopping to different areas for different products. Assuring the convenience in this
regard is the concept of departmental store / supermarket providing one-stop daily
household shopping solution.

How
As a supermarket located at the centre of Hyderabad city (Qasimabad);
therefore it would be favorable for the customers to visit rather frequently. And,
the store would provide them a peaceful, pleasant and hassle-free shopping
experience.

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 Promotional / Communicating Strategy

Giving Customers A Personal Touch

In order to make the customers recall of ‘Marvi’ over and over again,
billboards & banners would be used. Since the inception, strong SMS marketing
would be utilized and its database would be updated as soon as the customers start
to arrive at the place. Various promotional offers would also be communicated to
the customers via SMS marketing and their shopping expense would be sent to
their mobile number. The SMS marketing is very cheap and by utilizing it
appropriately, very positive results may be harnessed.

Offering New Updates

The customers of Marvi Supermarket would be updated with the new
arrivals and and/or the happening of a new event or sales promotion. This would
be done via SMS marketing, banners and pamphlets & broachers distribution.

Provide Informational Content

Value-added informational content would not only build customer
engagement with Marvi, but also, it would increase their confidence the product
and the supermarket.

Promote Sales Events

Coupons, deals and sales promotional offers are always huge crowd
drawers, so these practices would be used wisely. In the initial phase, strong

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 emphasis would be made upon the promotional sales events so that the customers
begin to get familiar with the store.

Announcement Of Other Special Events

Marvi Supermarket would announce different event like Kids Puppet
shows, costume characters and different cultural days like Sindhi Culture Day so
that the coustomers may find an internal association, which binds their affection
and sentiments with the store. Attention would be paid to the theme work inside
and outside the store so that it could magnet the attention of the customers.

Loyalty Service For The Permanent Customers

We would make it easy for the customers to sign up for our programs and
would tell them the benefits of this facility. We would offer free home delivery to
our permanent registered customers shopping (applicable would be different slabs)
and other surprise gifts so that they always feel an excitement, when they visit the
store.

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 Product Strategy

As discussed earlier, in the beginning, Marvi Supermarket would not be

selling the perishable items and would remain restricted to only Groceries & daily
household products, Packed / canned food items, Crockery and plastic items,
Soaps detergents and domestic chemicals, Ice-cream and beverages,
Confessionary, Stationery, greeting cards and gifts items, and General items.

Subsequent to the successful completion of the first phase, Marvi would

start to sell all kind of goods including fresh & perishable items, clothing line and
footwear items.

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 Distribution Strategy

A customer would consider shopping at Marvi Supermarket, when he has

the surety that he would have different choices in the matter of making the
purchase. He would find a variety of the products in the same category and he
would always be sure that they would not be a stock-out situation and we have to
maintain that trust.

Factors like delivery, availability of the products and etc. are directly
influenced by channel members. Similarly, while choosing a distribution member,
it must be accessed that what value would that member add to the product. He
must be compared against the benefits received to the amount paid for using the
services of this intermediary. These benefits are the following:

Cost Saving
The members of distribution channel are specialized in what they do and
perform at much lower costs than companies trying to run the entire distribution
channel all by itself.

Time Saving
Along with costs, time of delivery is also reduced due to efficiency and
experience of the channel members. Initially, Marvi would be receiving goods
from the distributors & wholesalers in bulk quantities receiving a discount much
higher than what is received by the small local retailers. The reason why to go for
intermediaries like distributors and wholesalers is that these entities would have
their warehouses where they could store bulk shipments.

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 Initially, when the sales is not at the highest point, deliveries from the
distributors and wholesales would be scheduled for assuring the appropriateness of
time, time of the cash flow and storage and handling cost. Once sales reach at the
level where the Inventory Turnover Ratio, Cash Conversion Cycle and DSO get
favorable, these intermediaries may be bypassed and the manufacturer may be
contacted directly, but it would be the second phase and it would be done by
carrying a Cost & Benefit analysis at a strategic level.

Customer Convenience
Including members in the distribution chain would provide the customers
with a lot of convenience in their shopping. Our channel of distribution would
provide accumulating and assorting services, which means they purchase from
many suppliers, thus a variety of goods that a customer may demand would always
be at the shelf. Our distribution channel would save the customers’ time so that
they can find all that they need in one place.

Customers get low price even on small quantity

Since Marvi would be getting the discount from the distributors and
wholesaler for buying in huge quantity, the benefit of this would be transferred to
the customers, who buy even in small quantity. Everyone wants to save his’ hard
earned money and when a customer gets the benefit; his choice would be Marvi
Supermarket.

Resellers provide valuable information

Marvi Supermarket would be buying from the distributors and wholesalers
and those distributors and wholesalers would be supplying goods to other local

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retailers. By having a strategic relationship with them, we can get to know that
which particular product or item is in high demand so that we could maintain its
stock rather vigilantly. We have also gets information of the market so that if we
are not able to sell particular product and it is being sold in the market, we must
make an effort to increase its sale.

Customers

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 Risk Mitigation Plan
Involvemen Influenc
Stakeholder name Role t e Support

         

Residents of
Hyderabad Customers high high medium

Wapda Electricity high high low

Labors Work high high low

Investors Sponsors high high high

Hyderabad
development
authority & Local Rules and
government procedures High high medium

Suppliers &
vendors Procurement high high high

High

Low

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Low High
Preventive
Action
Plan

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 Project Implementation Plan

Project Implementation Timeline      

Marvi Supermarket  

Tasks Aug Sep Oct Nov Dec Jan

Land survey, layout approval,

construction & interior decoration
(outsourced)          

Legal formalities & registrations

including NTN & sales tax etc.      

Finding sources of suppliers and

contract finalization    

Procurement of furniture &

fixtures, stand-by generators &
chilling system    

Marketing     .    

Human resource hiring    

Delivery of the orders    

Internal testing      

Opening of retail store            

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 Retail Store Opening
Work Breakdown Structure

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sin
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g
v
ru
ti
cta
Ljk
w
A
D
C
lIy
T
&
S
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o
M
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P
 Resource Management Plan

Site Selection
 Zoning and planning
 Contract / lease

Store Design
 Security system
 Interior
 Architectural drawings
 Lighting
 Furnishings
 Art
 Paint / color schemes
 Floor space / In-store displays
 Window displays
 Communications network

Exterior
 Architectural drawings
 Lighting
 Signage
 Landscaping
 Parking

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Build out
 Construction
 Bid process
 Vendor selection
 Interior
 Secure offices
 Bathrooms
 Cashier counters
 Customer service area
 Employee area
 Secure storeroom

Exterior
 Employees area

Utilities
 Electrical
 Gas
 Water
 Sewer

Communications Network
 Bid process
 Equipment purchase and acquisition
 Vendor selection
 Vendor contracts

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  Cabling
 Internet connectivity
 Phone system

Application Implementation

 Point of Sale
 Point Sale (financial)

Quality review
 Code compliance
 Occupancy certificate
 Head office review

Staffing
 Advertising
 Interviewing
 Hiring
 Training

Merchandising
 Assemble displays
 Price ticketing
 SKU scan
 Display merchandise
 Gift cards / gift certificates
 Display store policy

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Building Maintenance
 Housekeeping
 Insurance

Marketing
 Staff business cards
 Branded shopping bags

Updates Communication
 Catalog
 SMS Marketing
 Local print media

Grand Opening
 Special guest invitations
 Advertising
 Catering
 Entertainment

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Financial Assessment & Projection

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Hazard Mitigation & Safety Checklist
Marvi Supermarket

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 Conclusion
Opening a Supermarket in Hyderabad city is a prolific venture and this city
is presently an ideal place for opening this type of retail store. Although, there are
hurdles including the psychological barriers in the mind of the people but by
means of effective marketing campaigns, this barrier can be successfully through.
Marvi Supermarket would cater the needs of its customers in a better way. With
the time being, when people begin to realize that shopping at Marvi saves them
their hard-earned money, the customers’ loyalty would tend to increase and so
would the revenue and ultimately the profit.

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