Abstract

The caselet talks about the Chennai-based discount stores Subhiksha, which pioneered a unique form of retailing. The caselet examines Subhiksha’s motive behind establishing a no-frills stores that does not provide air-conditioning, dazzling lighting, or a touch and feel experience to its customers. It discusses the initial problems faced by the company due to its deep discount offers on drugs, and discusses and describes its logistics management and in-store delivery process. Finally, the caselet brings out the expansion strategy being followed by Subhiksha and the likely impact of competitors on the company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Importance of customer profiles in retailing
• Challenges in new retail formats
• and Kinds of distribution systems in retailing.

Keywords

No-frills, Air-Conditioning, Discount, Glaxo, Drug Inspectors, Home Delivery, Lease, Fabmall, Logistics, Retailing