Final Report - TCF

8/7/2019 Final Report - TCF

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NODWIN CONSULTANTS

2010

A Study on the proposed venue forthe new Colour Factory

Relocation Venue selection and Strategies

By-

Ashwin Shrivastava & Samantha Karandagoda

N O D W I N C O N S U L T A N T S P V T L T D . S U I T E 1 0 0 4 , I V O R Y C O U R T 1 , E S S E L T O W E R S ,

M G R O A D , G U R G A O N , H A R Y A N A .


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Content

Introduction3

Our Understanding of the issue..4

Our Approach to solving the issue..4

LocationMapping..6

Our findings7

Strategies....20

Recommendation...21


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Introduction

This report aims at solving the dilemma to choose between 2 locations for the new colourfactory store. It makes a recommendation as to which location to choose out of the two and

why. It incorporates various survey findings and suggestions.

It also aims to give strategies to be adopted by the firm when it decides to shift to DLFkeeping in mind the nature of retail industry, consumer behavior and an industry analysis.


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Our understanding of the issue:

As per the conversation with Megha and after analysis of the documents it is clear that TCF

Chandigarh is facing a lot of issues.

The sales have been on a declining trend. There is a supply chain issue being faced by the

store. More so there are very few repeat customers.

Since the store is not breaking even, there is a possibility to relocate the store to DLF as per

the agreement with them.

Two locations have been identified as the possible and feasible locations for the new set up

to be.

If either of the location is chosen, the whats, the ifs, the whys and the hows still need to beanswered.

Our Approach to solving the issues so faced

The assumption here is that TCF Chandigarh will shift to DLF Promenade. Keeping this in

mind what we have done is to try and look at the issue from all angles and adopted a step

by step approach to come to a solution.

1. Factor Rating Method We have used this method to assign factors whichcontribute to a locations success and evaluated both the locations on these factors.

2. Footfall Mapping Then we basically tried to map the footfalls in both the locationsand at a prominent place in the mall to confirm our findings from step 1

3. Face to face structured interview Subsequently we tried to speak to the shopkeepers/ store keepers in and around the proposed locations to know the ground

reality i.e. whether is it really worthwhile to go there or not?

4. Area Mapping After getting to know how other stores around the locations aredoing and feeling, we mapped the locations according to the stores around them andthen evaluate them on the basis of complementary stores, competitor stores, neutral

stores and cannibalizing stores.


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5. SWOT Analysis - To add more value to the above steps we decided to do a SWOTanalysis for both the locations and try to find the strengths that we can capitalize on ,

the opportunities that we can tap , the threats we need to be aware of and the

weaknesses we should try and overcome.

6. Porters 5 forces analysis This activity was carried out to get to know from anindustry perspective and get to know about the competition we will face.

7. Ansoffs Matrix Talks about various business options TCF will have once it decidesto venture into the new market of DLF.

8. Strategies Way Forward - This is our suggestion of the options TCF has boost upits sale and capture a wider audience.


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Location Mapping -

The first assignment was to choose between 2 locations at DLF Promenade; Vasant

Kunj.The locations are highlighted below as Location 1 and Location 2. For convenience

sake we have written the names of the landmark around the area. Location 1 near Kool Kidz

and Location 2 near Mother care.


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Our Findings:

1. Factor rating Method- Developed a list of relevant factors called the critical success factors. Assigned a weight to each factor Developed a Scale for each factor Multiplied scale by weights for each factor for each Location Recommended the location with the highest point Score.

Factors Weight Location 1Location2

Location 1(WeightedScore)

Location 2(Weighted Score)

Footfalls 30 30 70 900 2100Visibility 30 20 80 600 2400

Accessibility 20 60 60 1200 12

ComplementaryProducts/stores 10 10 80 100 800Open Area 20 20 80 400 1600Competitors -10 60 70 -600 -700

2600 7400

In our case we found out location 2 to be much more superior to location 1 as far as Critical

Success Factors are concerned.


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2.Analysis of Footfall around each of the locations and also atthe food court

Gender -Females

Area Time Age Group Nos

Location 2 2:30 - 3:30 Pm 1-10 9

10-20 5

20-30 4430-40 20

40-50 18

50-60 12

60+ 1

Food Court 3:30 - 4:30 Pm 1-10 0

10-20 5

20-30 19

30-40 11

40-50 9

50-60 9

60+ 8

Location 1 4:30 - 5:30 Pm 1-10 2

10-20 2

20-30 13

30-40 440-50 3

50-60 1

60+ 1


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Gender -Males

Area Time Age Group No.s

Location 2 2:30 - 3:30 Pm 1-10 9

10-20 11

20-30 55

30-40 20

40-50 19

50-60 8

60+ 9

Food Court 3:30 - 4:30 Pm 1-10 1

10-20 8

20-30 42

30-40 13

40-50 8

50-60 2

60+ 8

Location 1 4:30 - 5:30 Pm 1-10 5

10-20 2

20-30 15

30-40 8

40-50 650-60 3

60+ 3


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This was done on 22nd February 2010. We also observed the pattern on Tuesday,

Wednesday, Saturday and Sunday. The observation on other days indicated the following

School Children visit the mall on weekdays between 11 to 1 Pm from school andhang at the food court and a lot of them visit the Archies store as well.

Birthday parties are organized at the food court for pre school kids and kids between5-8 years of age.

Presence of Event coordinators / event managers to organize the birthday parties. Some or the other promotion is always going on. On Sunday, Red bull organized a

promotional event. HT City is also doing a promotional event to build a database.

Honda is promoting its new car Jazz. There was also a food show (street foods of

India by HT) and arts show organized on Sunday.

The majority of people visiting the mall are in the age group 20-30. The majority of people purchasing from the stores are females.


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Question 2 What is the Average amount spent by the customer at your store?Answer

AverageAmountSpent by acustomer No.s

0-200 3200-400 2

400-600 0600-800 01000-2000 22000+ 13

0-200 for Archies, Costa coffee, Kool kids.

200-400 for Booster Juice and gelato.

0

5

10

15

20

25

Footfall on weekdays

Series1

0

5

10

15

20

Footfall on Weekends

Series1


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The average spent at the mall is quite high which can be observed seeing the above

graph. This owes to the fact that the mall is in an affluent neighborhood, the brandsare expensive. However these are just one store sales figure so this study neglects

people with multiple purchases and also the amount spent by the people at the food

court and multiplex.

Question 3 Are you happy with your sales?

Answer - 75% of the store keepers were not happy with their current level of sales

whereas 25 % were happy with their level of sales. However the 75% said that they

are expecting the sales to increase post tax paying season( as year end tax

deductions are nearby) as the sales are increasing.

Question 4 Have you achieved break-even? If yes- How long does it take?

Answer This answer to this question was mostly no. This was because of the fact

that a lot of stores were new; the store managers didnt have too much knowledgeon the investments made by the owner. Those who had an idea responded by

saying that it takes 6-7 months to recover the investment.

0246

8101214

Average Spent

Series1


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The end point of the study was that all the shop keepers were happy with an

increase in footfalls; they were looking forward to a post tax period and were not

disappointed with the response the mall is getting.


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4.Area Mapping We also considered the fact that shops in and around the area also affected whether

people come to the store or not or governs to some extent the kind of people who come

to the store. That is why we chose to do an area mapping where we took intoconsideration the shops around the proposed location

Location 1 has the following stores around it:-

La Senza ( Will Not Cannibalize but can be a negative) French Connection ( Neutral) Kool Kidz ( Competitor) Aldo (Neutral) S Oliver (Neutral) Calvin Klein (Neutral) Bambiola ( Complementary)Location 2 has the following stores around it:-

Mother Care ( Complementary) Kids Camp ( Competitor) Orra ( Complementary) Alcott ( Neutral) Satya Paul (Neutral) W ( Neutral)When compared on the basis of the location of stores around proposed spaces: location

2 scores above the location 1 as it has more empty space around it , a lot of promotions

also happen around location 2. The brands around this location command more footfalls.

More so its visibility and accessibility is more favorable than Location 1.


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5.SWOT AnalysisWe did a SWOT analysis for both the locations and the results are given below.Location 1

Strengths

Location close to the

entrance Quiet Area

Direct Access from Parking

Weaknesses

Wash rooms nearby

Poor visibility Pub above (TGIF)

Less Area for acivities

La senza near by ( can be acultural issue)

Opportunities

Kool Kids not doing too

well

Can cannibalise Archiessales

Threats

Shops above empty-

Threat of new entrants.

Poor Accessibilty

Kool kidz - if its sales pickup.


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6.Porters 5 forces AnalysisCompetitive rivalry within the industry

None in the do it yourself pottery business

Archies For Mugs

Play areas like Kool Kidz for children areas

Gift stores, Home Dcor Stores among the few which can compete with the product.

Bargaining Power of Suppliers Supply Chain issues

Raw Material and kilning issues

Bargaining Power of Customers Switching capabilities of customers

Demand for new items as bisque and raw materials.

Looking for more exciting ambience and atmosphere.

Threat of new entrantsLot of empty shop spaces

Personalized T shirts & mug stores like giggles.

New Mall coming up with indoor entertainment park

Threat of SubstitutesCinemas as way of spending time

Mocha art house and other eateries

Kool Kidz

Summer Camps/ winter camps/Kids activity zones

Personalized / do it yourself different offerings.


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7. Ansoffs Matrix:

Based on this Matrix we can explore different solutions

Market Penetration By cannibalizing Archies sales. By giving more options i.e. adding

more items to the inventory and having a responsive supply chain.

Product Development Paint you own T-shirts, Make your own Picture frames, gift cards.

Market Development CSR, Kitty Parties, Mentor-Protge Sessions

Diversification - Do it yourself gifts, not restricting to pottery.


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Strategies Suggested for the Colour Factory to be opened at

DLF Promenade

Do a Pilot Run at the promotional space at the atrium. This is to first of all get adatabase of the people residing nearby. Also it will help to gauge the consumer

response.

Use the pilot run to give the people a taste of what is in store for them and utilize itto their strength later

A strategy of Get the girls and the guys will follow. Have lots to offer to satisfy thedemands of this segment

Use TCF as a personalized gift statement People will count their closed ones bythe number of personalized gifts they have.

A must gift for the loved ones.My Home, My Space, My dcor the TCF way tapping the housewife segment.Tie up with event managersTo market itself n such a way that people see it as value for money with a play

area for kids along with a tangible return and a skill addition as well.

Make visibility very strong and to tap the school kids market making them want topossess products from the colour factory.

Have a TCF Catalog with all possible inventory items and the finished productpictures.

Mural, Hand prints of the walls.


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Recommendation

Our recommendation would be to shift the store to DLF Promenade.

Location The better location would be location 2 ( We have an assumption that

both the places will have the same rental , ceteris paribus)

Strategies have been mentioned above but we strongly recommend a pilot study,

which should also help in building a database.

We also suggest the move to a responsive supply chain strategy where

TCFresponds to customer needs leading to retention of customers and as a goodwill

measure.

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