Business Plan: Super Market



Abstract

Makro is a new chain of stores retail which will be open through out the United Arab Emirates. The company will open up its headquarters in Abu Dhabi. The company had already maintained its presence in many developing nations of Asia namely, India, Pakistan, Bangladesh, etc. The company will be engaged in sale of range of food as well as non food products. However, food items will form the hub of the business in accordance with the consumer demand. sell a variety of food and nonfood items, but Consumers primarily shop for food products at supermarkets. As such, the industry generates about three-quarters of total revenue from the sale of various grocery products, including meat, dairy, produce, canned foods and frozen foods. Therefore, food items will be our specialty. The Supermarkets and Grocery Stores industry faces a high amount of external competition, particularly from large retailers who do not necessarily specialize in food and groceries, most notably, massive warehouse stores and supercenters. These companies make a large portion of their sales from the same food-related products, but their size and breadth of stock put them in a different category. The same way that large supermarkets have an advantage over smaller grocery stores because they become "one-stop shops" for grocery needs, super-centers and warehouses compete with large supermarkets as they not only offer all grocery needs but a variety of other merchandise as well. The purpose of formulating this business plan is to secure an initial investment of $15 million from prospective investors and banks for the establishment of the supermarket.

Business Plan: Super Market

Industry Analysis

Price, location and convenience are the key factors on which industry players compete. The level of internal rivalry is fierce, especially because the product market is so crowded. Saturation occurs as most supermarkets stock products that are homogeneous in nature and have little differentiation, which creates an environment in which any player can enter the industry and results in an industry characterized by a large number of small players.

Operators are fiercely competing for the consumer's dollar in an environment where consumers are more price conscious than ever before. The markup on a grocery item ensures that a profit is made on the sale, but it comes at a cost: a high markup often results in a decline in the level of price competitiveness. As a result, supermarkets rely on a large volume of sales with small per-item markups.

With little price differentiation between operators, grocery stores must find other ways to attract customers, for example, with the range and quality of products offered. Players who offer an extended range of goods provide consumers with more variety and cater to a larger consumer base of both low- and high-income households. Additionally, in-store promotions are an effective way to attract shoppers. Most stores offer weekly savings on popular products, aimed at enticing consumers. Store layout and location of individual stores also affects where consumers shop, as supermarkets located in populated areas, such as shopping malls, are likely ...