Degree

Master of Business Administration

Faculty / School

School of Business Studies (SBS)

Department

Department of Management

Advisor

Mr. Yaseen Ahmed Meenai

Project Coordinator (Internal)

Mr. Adnan Ahmed

Client

Imtiaz Store

Project Type

MBA Research Project

Keywords

Retail, Low-Income Consumers, Consumer Behavior, Purchase Intention

Abstract / Summary

In last few decades, retail sector has experienced significant growth and innovation globally. Pakistan’s retail sector has also experienced the similar growth and improvement. In Pakistan, mostly retail giants, supermarkets and convenience stores have targeted the middle to high income earners. A country where 40% of its population lives below the poverty line, is in dire need of a retail network that solely focuses on the lower income population. Utility Store Corporation has played a vital role in fulfilling this gap. However, operational inefficiencies, mismanagement and corruption have put additional financial burden on Government and this has made the sustainability of Utility Store Corporation questionable. Recently, the Government has announced the closure Utility Store. Its decline has surfaced a potential opportunity for retail giants in Pakistan to leverage this gap to increase revenue and market share. The project had 4 objectives, firstly, it aimed to understand the consumer behavior of low-income consumer. Secondly, it aimed to study the retail mix of Utility Store Corporation and what conclusion can be made that could help in understanding the low-income consumer segment. Thirdly, it aimed to assess key reasons behind the downfall of Utility Store Corporation. Lastly, it focused on developing a sustainable retail model and procurement strategies that would assist in overcoming the drawbacks of Utility Store Corporation. Finding depicted that pricing and discounts are the key drivers that pushes low-income consumer to purchase from retail stores. Secondly, location is another key variable that influences the purchase decision. Thirdly, product availability had an insignificant relationship with Purchase Intention. Lastly, customer experience had a negative relationship with Purchase Intention. Investigating the downfall of Utility Store Corporation revealed that mismanagement, corruption, operational inefficiencies and non-productive stores are the key reason behind Utility Store Corporation failure. Findings from observational studies revealed that some key factors including store atmosphere, discounts and promotions, layout, lighting, ambiance, and customer service. Finally, the recommended strategy stressed on the following key tactics to make a suitable discounted retail network, compact Store Size, location, limited SKU, frequent replenishment, bulk purchasing etc.

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Available for download on Sunday, October 01, 2028

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