PRESENTED BY-

Bhawna Upadhyay
Pujil Khanna
Sarika Taneja
Vikas Mittal
 SUBHIKSHA-
 Largest retailINTRODUCTION
value chain in India with 1600 outlets
started in 1997 .

 Chennai based grocery & pharmaceuticals store

Founded by R. Subramanian in 1997

 Revenue Rs. 2200 million

 Aimed Rs. 2800 million by the end of 2005

 From 150 stores in Sept 2006 all of which were in Tamil

Nadu the company grew rapidly to over 1600 stores by
Sept 2008 across the country.

 Product Portfolio- Supermarket, Fruits and Vegetables,

Telecom and Pharmacy.
 OBJECTIVE OF THE
STUDY
1. Examine the various decisions made by Subhiksha
and their alignment with the business model of
Subhiksha

2. Identify key challenges faced by Subhiksha and

importance of assortment planning and inventory
management for Subhiksha.

3. Evaluate the performance of the Indiranagar store

on forecasting and inventory management.

4. Examine the supply chain practices followed by

Subhiksha for different categories.

5. To study the management of variation in demand

within a month and variation within a day.
SUBHIKSHA- BUSINESS MODEL
Focus on 2 factors for their business model(2C’s)
1.Criticality of cost
2. Convenience of buying

•What the company is looking for is to provide products at

sustainable low prices right at the customer’s doorsteps.

•This model has been the key building block for the success of
Subhiksha
in making it the oldest discount chain in the country.

•Everything that Subhiksha does revolve around these 2 C's.

BUSINESS DECISIONS TAKEN BY
SUBHIKSHA AND THEIR ALIGNMENT
WITH BUSINESS MODEL OF
SUBHIKSHA
KEY CHALLENGES FACED BY SUBHIKSHA
 INTERPRETATION: EXIBIT 8

The performance of Indiranagar store :

1.If we observe the negative receipts in case of 3 items

mentioned i.e.; Maggi noodle masala, Pepsodent 2 in 1,
Gemini sunflower oil-negative receipts in case of Gemini
oil is maximum.

 2.Maggi incurred moderate negative receipts and

Pepsodent minimum.
 
3.It can be inferred that most of the Gemini sunflower
oil (1l) was sent from Indiranagar store to other stores
to prevent inventory pile up and have tight control on
inventory levels.

4.Sales of Pepsodent were maximum in Indiranagar

store than maggi and Gemini oil has least sales at the
store.
SUPPLY CHAIN PRACTICES BY SUBHIKSHA
HOW VARIATION OF DEMAND IS
CONTROLLED
 REASONS FOR FAILURE OF
SUBHIKSHA
 Expanding the number of stores rapidly without sufficient funds in
hand.

 Expansion of Stores without adequate system control and IT Support.

 Government Intervention.

 Lack of strong HR policy and Staff.

 Strong Competition.
THANK YOU!!