AakashBookStore Class
AakashBookStore Class
AakashBookStore Class
• Newly developed residential area • 2 major hospitals ,3 schools ,drive- • Suburbs with mostly SEC C and little
with a lot of retailing activity in hall and Doordarshan, 13% commercial activity
• 2 multiplex,2 hypermarkets ,2 malls population within 2 Km radius • Site Identified: 3km from Satellite –
& 10% of population within 2Km • SEC B , SEC C and SEC D households Ambli crossing , in a shopping
radius • High retailing with small stores , 1 complex , 1st floor, good frontage
• Mostly SEC A, SEC B and SEC C: hypermarket and 1 fast food joint • 2000 sq ft. , Upper class houses
Educated and higher income • Site Identified: Shop in a Mall : coming up
• Site Identified: Nehru Nagar 8000sq ft , ground floor ,good
crossroad site shop : 10000 sq. ft frontage
located on ground floor , road facing
Methodology
• Therefore , the store should be located at Satellite keeping in mind all the above factors
Method used
• Spatial Interaction based model- maximize expected market share/profit
Microsoft Office
Market Share Analysis Excel Worksheet
Average
Number of budget C*B*Probal
Site C*B Market Share (%)
customers (C ) allocated per ibility
annum (B)
Grukul 555000 3317 1840935000 987235192 23.76
satellite 666000 3317 2209122000 842903246 20.29
Bopal 31407 3317 104175788.2 8560736 0.21
4154232788
• To find market share: Huffs Model; Preferred store location:
2) Which of the three locations would
be profitable for the store?
Profitability Ratios
Gross Margin of Satellite > Gurukul > Bopal
Aakash Book
Store
Although CAGR of Satellite is less than Gurukul but on the Basis of the profitability ratios
we prefer Satellite over other locations.
Recommendations
Aakash Book Stores’ most preferred Location in Ahmedabad would be SATELLITE due to
the presence of good mix of SEC A, B & C customers and higher profitability.
Merchandize mix Merchandize Mix
Loyalty program for its Customers – Aakash Reward Programme Book Music Magazine
Stationery Toys Others
Registration Fee of Rs 125 /-.
15%
Benefits: 40%
5%
1. New arrival Alerts.
15%
2. Offers & Discounts.
3. Point earned can be redeemed at other outlets. 15%
Cozy interiors
10%
Well furnished seating space
In-house coffee bar
Mild Music
Key chains, Magnets, Pens, Readers Digest and small gifting items need to be placed near
the checkout counter.