Feasibility report establishment of a chain of superstores in Islamabad/Rawalpindi

Abstract

Though the wheel of retailing is continuously moving and bringing new patterns of retailing in the developed world, we in Pakistan still being exploited by the business people and consumerism is still a far cry. Therefore the aim of the study is to test the viability of operating a store on lines of western superstores, albeit similar ventures have been embarked upon in Pakistan but they fall prey to either political interference, which leads to their inefficiency or to illiterate businessmen who are still not aware of consumerism. The under lying concept of the project being novel for people in Pakistan, the objective of this research had been the identification of problems and opportunities available in the retail sector, gaining of perspective regarding the extent of variables affecting the entire situation and finally the evaluation of various alternatives available. The study undertaken is exploratory in nature since very few studies have been carried out in the field of retailing thus due to lack of sufficient data exploratory study has been chosen to generate primary data. Focusing on chains of three superstores operating in the market included Canteen Stores department (CSD) and Utility Stores Corporation (USC) in the public sector and Best Day in the private sector generated the data. The research instruments used in this study included interviews, questions and informal focus groups/observations. The research comprehensively addressed the problem arising out of scanty information and the interviews, observation and questionnaire helped to 1 arrive at the essential condition of determining the existence of opportunities. The respondents of the study included both the consumers and the owners of the stores, the consumers/grocery shoppers belonging to the upper and middle class with income ranging from Rs 50,000 and above. The sampling procedure used to pick the respondents was non-probability sampling technique in which customers of three previously mentioned stores were selected and than questioned. After analyzing the preliminary or pre-feasibility data gathered by focusing on Canteen Stores department (CSD) and Utility Stores Corporation (USC) and Best Day the feasibility repo1i of a new chain store was evaluated. The feasibility report includes an extensive research on the opportunities and problems faced by a new store. A comprehensive review of the product plan, economic analysis, marketing analysis, management plan, operating plan and financial analysis is given in the feasibility report. After carrying out extensive analysis of the market conditions it is concluded that attention to minutest details during market research plays an important role in either the success or the failure of a store. Also the fact that despite the mushrooming of superstores/convenience stores all over the twin cities still there seems to a gap between the demands of the customers and what the existing stores are fulfilling. This gap provides an opportunity for new aspirants who are willing to consistently meet the ever increasing concerns of customer. However the establishment of a superstore is not an end in itself. The philosophy of the management should be to enter the market to serve the 2 customers to their utmost satisfaction; an attitude of continuous momentum and change involving novel marketing tactics should be the feature of Stores management. Only then will we be able to transit into consumerism era wherein the customer's orientation and the business objectives would be harmonized to ensure customer satisfaction.