FamilyMart

Prepared By:

• Krupesh Shah

• Sneha Lad

• Rohit Terse

• Renu Bajaj

Project: Opening a convenience store

Subject: Retailing

Faculty: Prof. Mohan Pitchumani

Introduction

• FamilyMart provides variety of goods under one roof.

• Located at Shreeji Heights, Plot no. 1, Sec 36 A,

Seawoods, Navi Mumbai.

• Single floor store of area of approximately 2000 sq.ft.

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FinancialsSTART UP REQUIREMENT

Rent & Related Expenses Rs. 50,000

Deposit Rs. 7,00,000

Furniture & Fixtures Rs. 10,00,000

Staff Expense Rs. 2,00,000

Stock / Inventory Rs. 25,00,000

Liquid Cash Rs. 1,00,000

(-)Reductions Rs. 50,000

Total Rs. 45,00,000

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Category Definition

• Dairy Products

• Dry and Canned Goods

• Drinks & Beverages

• Confectionary and Snacks

• Pulses and Food Grains

• Spices and Oils

• Toiletries and Other Personal Essentials

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• Milk (Amul, Mother dairy, Nestle, Britania)

• Butter (Britania, Amul, Nutrela, Nandini, Gowardhan)

• Cheese (Britania, Amul, Kraft, Gowardhan)

• Curd (Mother dairy, Danone, Amul, Britania)

Dairy Products

• Chocolates (KitKat, Munch, Cadbury, Snickers)

• Candies (Alpenliebe, Mango Bite, Big Bubble, Mentos)

• Biscuits (Parle G, Hide & Seek, Krack Jack, 20-20)

• Chips (Lays, Balaji, Kurkure, Bingo)

Confectionary & Snacks

• Coffee (Classic, Bru, Sunrise, Nescafe)

• Juices (Tropicana, Soya, Real, Danone)

• Dairy Drink (Amul Masti Buttermilk, Danone Lassi)

• Flavored Drink (Frooti, Real Fruit Pomegranate)

Drinks & Beverages

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Destination

Confectionary & Snacks

Routine

Dairy Products

Convenience

Drinks & Beverages

Category Role

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Shelf Layout

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Dairy Products

Assortment Broad Variety

Pricing 15-400

Merchandizing Dedicated cooler

Promotion Highly Visible Display

SKUs Milk – Bag (0.5l, 1l), 1litre carton.

Butter – Carton (100g, 500g),

200g tub, Jar (200g, 500g etc.),

10packs 100g.

Cheese – Blocks (200g, 400g,

1kg ), Slices (10, 20, 35, 40, 50),

Cubes (8, 20).

Curd – 90g, 150g, 200g, 275g,

400g.

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Drinks & Beverages

Assortment Select variety

Pricing 15-600

Merchandizing Refrigerated cooler

Promotion Proximity of confectionary section

SKUs Coffee – Jar (100g, 250g), Pouch

(4.5g, 50g, 75g, 200g, 500g)

Juices – Packs (160ml, 200ml, 1l),

Bottles (200ml, 320ml, 500ml),

240ml can

Water – Bottle (200ml, 500ml, 1l,

5l)

Cold Drink – Can (250ml, 330ml),

bottle (500ml, 535ml, 600ml, 1l,

1.5l, 2.5l)

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Confectionary and Snacks

Assortment Broad Variety

Pricing 10-800

Merchandizing By the registers and exit. At eye level or lower

shelves

Promotion Checkout Counter. Easily visible sweets

SKUs Chocolates – 8g, 22g, 28g, 37g, 40g, 50g, 60g,

100g, 200g, 400g, 800g.

Candies – 5g, 10g, 20g, 30g, 6pcs, 24pcs,

150pcs, 176pcs, 300pcs

Biscuits – 60g,73g, 80g, 90g, 100g, 120g, 128g,

140g, 150g, 200g, 300g.

Chips – 26g, 45g, 50g, 60g, 90g, 100g, 150g,

180g, 200g.

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Category Characteristics

Morning Star

Winners

Sleepers

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Stock Turnover (In %)

Items In Store In Warehouse

Dairy Products 80 20

Drinks & Beverages 60 40

Confectionary and Snacks 70 30

Profit Margin

Items Profit Margin

in %

Dairy Products 25 - 35

Drinks & Beverages 25 - 50

Confectionary & Snacks 16 – 25

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Quaterly Sales Forecast (in Rs.)Items Q 1 Q 2 Q 3 Q 4 Q5 Q6

Dairy Products 4,30,000 4,80,000 5,30,000 6,00,000 6,50,000 7,20,000

Drinks & Beverages 7,20,000 7,80,000 8,60,000 9,50,000 10,50,000 12,00,000

Confectionary &

Snacks

4,00,000 4,40,000 4,95,000 5,50,000 6,00,000 6,50,000

Others (Pulses &

Grains, Dry canned

goods, Oil & spices

etc)

36,00,000 39,00,000 43,00,000 48,00,000 50,00,000 55,00,000

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Category Assessment

• Dairy products and Drinks & Beverages generate the most amount of

business followed by confectionary and snacks.

• Confectionary and snacks are the fastest moving items.

• Candy, potato chips, and gum have the highest penetration and

frequency of purchase.

• Candy is the number 1 snack bought on impulse.

• Stocking confectionary and snacks in multiple locations throughout

the store will ensure higher sales

• Merchandise candy in the refrigerated coolers to generate additional

sales

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• Categories are defined properly

• Stocks well planned in advance

• Planogram for correct placement

• Loyalty & Membership Cards to customers

Plan Implementation

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