Page 124 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 8: Setting up a Small Business Enterprise

Notes
Personal Care
Domestic Care
Fashion Accessories
Toiletries
Stationery and Gifts

Lingerie’s
Baby Products
Disposable Containers
Party Products
The Market

Piyush General Store has a very strategic location. It is located in the heart of Mahanagar,
a locality in Lucknow, which has a total population of 3.5 lakh and more than 75,000
households, so the market is huge.
The Services
Piyush General Store offers the following services:

Dial-and-order
Free Home Delivery
Vacuum packed food grains and spices
The Growth
Piyush General Store has grown multifold in the past 35 years, both in terms of the
number of household it served and profits made. Life was very peaceful, Raghav worked
hard, paid personal attention to the customers, set high targets for every month and
crossed those targets every month. Customers were satisfied and hence were loyal to the
store. Margins were high, it was like dream come true for Piyush General Store.

Problem Encountered
Since 2000 India started witnessing the retailing boom and so did Lucknow. The first mall-
cum-multiplex that came up was East End Mall in Gomti Nagar in 2003 followed by Big
Bazaar at Sahraganj, Landmark Arcade, Vishal Mart, Fun Republic, Good Bakery to name
a few, all introducing wide range of retail products under one roof. They started attracting
customers from day one because of the style they offered, large number of products;
heavy discounts and an experience of world class shopping malls. The biggest threat has
been posed by Big Bazaar, which is direct, as it is a case of a very big competitor offering
a wide range of products at heavy discounts.

The Response by Piyush General Store
Raghav had realized in early 2005 the seriousness of the competition arising from these
big brands and the world-class shopping experience offered by them. Therefore, he himself
introduced renovation of his retail shop and converted it into a fully air-conditioned one,
well displayed products with wide ranges. He also introduced a new business strategy of
high volume and low margins to attract the lost customers.

Contd...

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