Retailigence

“Club of Knowledge Hunters”

Strategy Refinement

Posted by retailigence on September 23, 2008

A number of companies, both well healed MNC’s and Indian retail players, sought to refine and extend their strategies to maximize their returns. This included getting into new product ranges (Titan, Planet M) in a major way or moving up the margin chain (McDonald’s):

 

Titan Industries Ltd, promoters of the Titan and Tanishq chains, planned to launch an eyewear chain. To be called ‘Titan Eye+’, over 200 stores will be opened over three years. The Company already retails eyewear through its stores in Bangalore, Hyderabad, Chennai and Nagpur.

Videocon Retail has revamped 80 of the 200 Planet M stores, its recent acquisition. A key change in this is adding mobile phones to the product line in addition to the earlier focus in music and entertainment offerings. This is part of the Company’s Rs 800cr overhaul and growth of its two chains: Planet M (200stores) and Next (400 stores – hard goods & electronics). The Company is also launching Cafe Earth, the first outlet of which has opened in Planet M, Banjara Hills, Hyderabad. Planet M’s turnover last year was Rs 400cr.

McDonald’s India is readying for a mid-course strategy chain. In its efforts to build an unassailable market share eleven years ago, the Company’s strategy was volume driven. This resulted in a greater focus on keeping prices low. The Company was large enough to take hits on profits and broke even only in its tenth year. Now after becoming an integral part of modern India’s fast food landscape and growing at 30% annually, the Company is re-jigging its strategy to improve profits and margins. This it hopes to do by adding higher value and higher priced products in addition to the existing range. Other steps will include differential pricing by geography. There will be a special focus in opening outlets in up-market high-streets, malls, and food courts.

Source: Newsvision

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