Caselet Code : CLSDM039
Publication date : 2005
Subject : Sales and Distribution Management
Industry : Retailing
Length :
 4 Pages
Price :  Rs. 100 (Detailed Pricing Info)

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Abstract

This caselet discusses the growth strategies of Viveks -- a chain of retail stores in Tamil Nadu and Karnataka that offered home appliances and consumer electronics. Between 1999 and 2002, Viveks ventured into an aggressive expansion strategy to strengthen its position in the consumer durable retail sector by setting up new outlets and acquisitions. At the same time, the company aimed at optimizing inventory, reducing cost, and other strategies for efficient operations. This caselet also discusses the promotion tactics of Viveks, highlighting its annual New Year sale.

Issues:

» Impact of expansion strategies on retailing
» Kinds of promotion methods deployed in retailing

 
Key words:

Viveks, Jainsons, Consumer Electronics, Store, Outlet, Private Labels, Expansion, New Years Day, Loyalty Programs.

Questions for Discussion:

1. Viveks grew from three stores in 1995 to fifty stores in 2004-05 by following a rapid expansion strategy in Tamil Nadu and Karnataka. What factors would you attribute to its success?

2. Viveks intends to have around 100 stores by 2008 by expanding into north India and west India as well. What are the challenges that the retail chain would face in future to maintain its growth?