Winning Presentation at Circus Maximus, Marketing Case Study Competition at XLRI, Jamshedpur

1. Schrodinger’s Foray into India
DNA for
location
success in
retail
Evaluating
framework
and
locations
Value
Proposition:
Building for
the future

2. Schrodinger’s Foray into India: Case Facts
Business
Models:
4 Types of
Store Formats
Decided to
target metro
cities,
beginning
with Arcadia
Shortlisted 2
Wards for
setting up
Hypermart,
need validation
Successful in
Europe: Aim to
replicate
business
model in India
Major
Competitors:
Big Mart &
Sid’s
Supercenters

3. Factors that Matter
Customer Profile/
Patronage
Transit, Traffic
and Time
Operating
Cost
Competition: Quantity,
Quality, Type
Potential for
Growth
Area & Store
Composition
Profitability

4. Metrics for Retail Success
Profitability
Ward 7: ₹ 2,80,97,227
Ward 6: ₹ 2,15,49,037
Ward 2: ₹ 39,57,997
Other units are
non profitable.
Running
Costs
Cluster 1: Affordable –
Ward 3, 6, 7
Cluster 2: Premium –
Ward 2, 8
Cluster 3: Pricey –
Ward 4, 5
Ward 7: ₹ 702 /sq feet
Ward 6: ₹ 539/sq feet
Ward 2: ₹ 99/sq feet
Other units provide a loss
per square foot.
Productivity

5. Competition
Mapping
Area &
Vicinity
BIG MART
• Hypermarket in Ward 1
• First Mover Advantage
• Anchor Format in large
Mall
• Direct competitor with
same categories
• Broken even
SID’S
• Supercenter in Business Sector
• Daily Goods Specialist
• Ward 5: Business District
• Yet to Break Even
• High Footfall
• Unmanageable overheads
• Highest Ticket Size in Ward
High – Income Areas: 5, 4, 2
Mid – Income Areas: 8, 6, 7
Low – Income Areas: 3
Ward 3, 4 and 7 have the
highest patronage scores

6. Ward Evaluation Matrix using Huff’s Law
0.47
0.69 0.55
0.26
0.59
0.49
0.41
Profitable Ward in the
Premium Segment in terms of
rent & high income
consumers. Part of Affluent.
2nd highest no. of households.
Profitable ward in Affordable
segment with 2nd highest utilization
per square feet
Ward 5:
Business
Center with
Supercenter
competitor
High overheads
with highest ticket
size & Income
Ward 4: Business
District with
costliest rent and
maximum
overheads.
Least
profitable
sector.
Low income households
with high growth
potential & low costs
but no profits due to
ticket size
The Moderate sector with costs, income,
ticket sizes all hovering around average
value. Low profitability. Likely to be an
adopter.
Our pick – Ward 7: Highest profitability
Combined with max profit per sq. feet.
Low overheads with proximity to
Business Center (Highest Incomes) and
semi – affluent residential zones

7. Strategy Forward
Where? How?Why?
Ward 7
flanked by 2 similar
wards 6 and 8 .
Ideally – along the
south western
boundary of ward.
High profitability,
low costs, largest
number of
households.
Hi – Po secondary
catchment.
Minting competitive
advantage and
catering to 50,000+
households in
standalone format.

8. Schrodinger’s Indian Foray:
Decisions are easy, when values are clear
First Customers Retail Saturation
& Decline
Early Adopters:
Ward 7 Tertiary Catchments &
Loyalists
Building For Success: ARCADIA for INDIA
Adjoining areas with high population density
Ease of travelling for High Income Business Center with max income
Catering to the burgeoning middle classes rather than the low income or
affluent (competitive positioning)
Location Advantage: Massive households, distinct positioning