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Study of an unorganized retail store

By,
H BHARATH (PGP/13/019 )
SHOUNAK CHAKRAVARTY (PGP/13/049 )
VISHNU SURESH (PGP/13/062 )
THEJUS M B (PGP/13/120 )
RASHMI GUPTA (PGP/13/230 )
SAMPATH KUMAR V (PGP/13/232 )
SHIVA KUMAR R (PGP/13/237 )
 ‡ Started in 2009
‡ Run currently by people from same family
History ‡ Works on all days except occasional hartals

‡ Located adjacent the main entrance to IIM Kozhikode

‡ About half a kilometer from Kunnamangalam bus stand
‡ About 300 sq ft
Site selection/space
‡ Monthly rent 3600 Rs with electricity charges extra

‡ Totally 4 people work at the shop

‡ People take turns and stays at the shop
Employees ‡ During mornings only 1 person stays at shop ,evening its 2 persons

‡ Includes IIMK workers, restaurants like Sweekar and Broast and local people
living nearby
Target
customers/Catchment
area
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ã Less importance given when compared with

organized sector retailers
ã Similar to other unorganized shops

ã Sweets ,daily products ,kept in the front of the

shop
ã Separate shelves for FMCG products, spices

ã Products of similar kind kept together

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ã Have good relations with 15 dealers
ã Dealer visits vary with type of products

ã Makes a list of goods needed

ã Takes 4-5 days to supply them

ã Major margin giving products are stationary

and FMCG products
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ã FMCG branded goods are priced at MRP

ã Loose sold items cost determined by retailer

ã Promotional posters

ã Refrigerators and chip racks provided free

ã New products placed in the front

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ã Gives on credit at times

ã Takes one month to return money

ã Takes money from other shop owners to pay

distributors
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ã Mythree stores
ã Situated on the opposite side of the road

ã Contains almost everything provided by Paiko

traders
ã Heavy traffic prevents people/regular
customers from reaching Paiko
ã Makes them buy from competitors
 Brands

Manufacturer Own-label
Local brands
brands brands
rPickle,spices ginger
coffee bags,Milma rMajor rBuys rice ,spices
products, rice powder, manufacturers like ,pulses etc wholesale
uppuma HUL, ITC, Cadburys, and pack it up in
powder,idiyyappam Britania, Procter smaller packs
powder etc are available &Gamble products rLess costlier compared
rLess costly available with branded ones
rMore preferred by rForms the largest
customers selling items
rProfit gained is less
Biggest problem Store expansion Customer
being faced plans complaints and
currently ‡No plans servicing
‡ Sales not ‡Satisfied
good customers
‡ Locational ‡In evenings it
disadvantages takes more
‡ Competitors time to get
‡ Spoiling of the goods
food items
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ã No cold storage facility available

ã No godown facility
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