Degree

Master of Business Administration

Faculty / School

Faculty of Business Administration (FBA)

Advisor

Dr. Nasir Afghan

Project Coordinator (Internal)

Dr. Nasir Afghan, Asad Ilyas, Salma Mirza

Client

Reckitt Benckiser Pakistan Ltd

Committee Member 1

Dr. Nasir Afghan, Institute of Business Administration, Karachi

Project Type

MBA Research Project

Abstract / Summary

With the increase in consumption patterns, retail business has become quite a lucrative venture. In the past couple of years, Pakistan has started to follow the international retail trend with large modern trade stores like Macro and Metro opening up, smaller general stores growing into supermarkets like Naheed and Agha’s and many other small retail stores opening up in every locality. Many of these retailers are not educated in the science of modern retail management. Category Management and Development techniques are unheard of by small retailers especially. A model of a successful retail store is something that will not only help existing retailers but also serve as a business plan for anyone planning to start a retail business. The aim of the project is to create a success plan for a model T1000 store for our sponsoring company, Reckitt Benckiser (Pakistan) Limited that optimally utilizes available space and maximizes profitability for the owner. T1000 store is a company specific term, and represents the top 1000 sales wise stores of Pakistan, that are the medium sized retail outlets below the categories of Key Accounts and TSPs (Top Store Program) . The IBA project team has proposed an extensive plan for the commercial, financial and human resource aspect for running a store within the scale of operations of a T1000 store. The commercial aspect of the store is based on the effective category management to suggest an ideal floor plan with the ideal placement of categories and products in terms of place, space and facings . A sample of six stores throughout Karachi was chosen for the research. The team carried out the study in these stores- two stores from each of the three mutually agreed localities . The stores from each area were further segmented as high performing and low performing stores in terms of Reckitt Benckiser sales in that store. This segmentation assisted in comparison and analysis of the different stores. This methodology provided a holistic view of the Do’s and Don’ts when opening a retail store. The project has been carried out using the research methodology of observation and interviews for all six stores. The observations were done to get information regarding the retail stores layout, the category breakdown and customer purchase behaviour. The interviews were used for obtaining information from the retailers regarding the store itself, insights about category placements and experience with customer interaction. A thorough analysis of individual stores in terms of the three aspects was covered and then a conclusion drawn based on high and low performing stores. The analysis and conclusion has ultimately translated into a business plan for a successful retail model store which encapsulates a successful floor plan based on ideal category management. The final business plan for an ideal T1000 store has been developed taking into account several key aspects. The first aspect considered is the commercial aspect. Work on this aspect provided the major deliverable of the project which was the ideal floor and shelf plan explaining in detail what product categories should be kept where, why and in what quantity based on logical reasoning and in-depth observation. Following this is the financial aspect of the plan which discusses in detail the associated costs of setting up and running a model T 1000 retail store. Also included in this section are projected profit and loss earnings. Included next is the human resource aspect of the T 1000 business plan. This portion of the business plan gives in detail the description of the number of employees required in a T 1000 store, their skills and responsibilities and the requisite wages for these store employees. The final portion of the business plan comprises of the groups final conclusions and recommendations.

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