A case study on A case study on Store-24Store-24

Submitted By- Robab Mirza

Priya ChaturvediRaunak Kurl

Shashank GuptaAditya Tandon

Komilla SinghSumiti Singh

Disha SharmaDeepak Singh Negi

About STORE -24

4th largest convenience retailer store in New England. Out of 75 stores, no. of stores in:

1. Urban areas: 30

2. Sub-urban areas: 45 Stores were similar with respect to many aspects of their operations. Focus : optimizing existing sites through emphasis on store-level marketing

& operation. Differentiation strategies : Ban boredom Cause you just can’t wait

DIFFERENTIATION STRATEGY OF STORE-24

BAN BOREDOMFun and entertainment experienceCreative in-store atmosphereEnd-caps – contained high margin products.Increased interactions between employees and customers.Aimed at Greater loyaltyProvides autonomy to store managers.

CAUSE YOU JUST CAN’T WAITFast and friendly serviceEfficient serviceHigh in-stock positionsStore cleanlinessHigh – qualityFreshness of foods and beverages

DIFFERENTIATION STRATEGY OF STORE-24

PROBLEMS AT STORE-24

Ban boredom strategy

Was it a promising strategy?

OrDoes it need an improvement at implementation level?

BALANCED SCORECARD: The Performance Measurement System

Performance measures were organized around the four traditional balanced scorecard perspectives Financial measures Customer measures Internal measures Learning & growth measures

CAUSE AND EFFECT RELATIONSHIP

PARAMETER MEASUREMENT LEVEL

Financial perspective

• Return on capital deployed

• EBIT• Gross profit

growth• Sales growth• Inventory

turnover

• EBIT divided by value of equipment & leaseholds

• Contribution less lease cost

• Growth in gross profit from same quarter in prior yr.

• Growth in sales• Days inventory for

general merchandise

• Corporate

• Store• Store• Store• store

Contd…

PARAMETER MEASUREMENT(based on telephone survey)

LEVEL

Customer perspective

• Loyalty• Primary store

convenience• Enjoyable

experience• Product/

service attributes

• Customer relationship

• Brand image

• % would recommend store24.

• % stating store24 as their primary convenience

• % viewing it as fun &/or entertaining place to shop

• %viewing that it serves products of high quality

• % viewing it as established and recognized brand.

• Corporate

• Corporate

• Corporate

• Corporate

• Corporate

PARAMETER MEASUREMENT LEVEL

Internal process perspective

• Operational excellence

• Concept development/innovation

• Customer management

• CSR

• Walk-through audits

• Store level-compliance with those of operational standards

• Net gross profit from new concepts.

• No. of loyal customers

• Store• Corporate• Store• corporate

Contd…PARAMETER MEASUREMENT LEVEL

Learning and Growth perspective

• Human capital(mgmt./crew skills

& tenure)• Information

capital• Organization

capital

• Skill rating of store manager& employees.

• No. of years store employees has been with sore24.

• Use of front and back office technology

• Need of new technology

• Store• Regional• corporate

FLAWS OF STRATEGY AND IMPLEMENTATIONPerspective

ElementsFlaws Recommendations

1. Managers/crew skills

Each one of them were not equally talented & experienced.

• Training needs should be identified

• Only experienced personnel should be allowed to initiate customer service.

• Retention should be focused.

2. Demographic factor

Stores were similar across different cities.

• Separate promotional strategy for different geographic location.

3. Product selection No or very little focus on product range

• Focus should be on the needs of different target customers.

FLAWS OF STRATEGY AND IMPLEMENTATION

Contd…

Perspective Elements

Flaws Recommendations

4. Positioning of ban boredom strategy

• Failure to relate it with customer’s need and value proposition.

• Separate promotional scheme for different age groups.

• Apart from products “end-caps” should include services like games, adventures.

5. Employee satisfaction • Employees with low skill-sets were not able to identify themselves with it.

• Proper focus should be on employee satisfaction and their motivation.

4. Strategy implementation

• Bi-annual visits • More frequent visits should be managed.