Case Code : CLSDM039
Publication date : 2005
Subject : Sales and Distribution
Industry : Retailing
Length : 04 Pages
Price : Rs. 100
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Viveks, Jainsons, Consumer Electronics, Store, Outlet, Private Labels, Expansion, New Years Day, Loyalty Programs
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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.
By 2004, Viveks grew by leaps and bounds to become the largest Indian retail store to offer home appliances and consumer electronics...
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?