Yeralagudda Prathipala Gajaraja Reddy is a powerful business magnate of Madanapalle who traditionally owns many business activities in this place under Srihari Corporation. His father Yeralagudda Srihari Reddy started this outfit. Y P G Reddy as he is called is a tall and stout figure and the public gave him the title Gajaraja after he pushed a wild elephant into the gutter with his muscle power when it came to attack the citizens of Madanapalle.
Y P G Reddy during a visit to Germany met his friend Carlos Gunther who is an expert in Retailing who suggested to Reddy that he must start Retailing activity in Madanapalle and ever since Y P G Reddy was planning to launch more than one Retail outlet in Madanapalle. He hired a consultancy organization Bali International to study the population demographics of Madanapalle.
The statistics presented was as follows:
The place had a population of 25 lac people out of which 10 percent were above the age of 60..40 percent were between 60 and 40..25 percent were between the age of 20 and 40 and the rest were children. Roughly 30 percent of the population within these age segments were female. There are no formal retail outlets in the place as of now. 60 percent of the work force is between the ages of 30 and 60 and 15 percent of the work force is female. National highway runs through Madanapalle and there are 10 major colleges in this place. Wani avenue…Mir road…..Shilpa cross…Nibu street are the major roads and they are some 5 kilometers from each other.
Some of the recent trends in this place according to market research is that Rice and dhal are used daily by the population and forms a key component of daily life. 90 percent of the population speak fluent Telugu and 60 percent of the population speak English.
Y P G Reddy is actively planning to get into Retailing and Akhila bank is willing to fund the entire project but he wants some answers before he gets into the venture.
According to you;
*What kind of a retail model should he adopt. Should it be a Super Market, Mall or a large Retail store.
*How many outlets should he plan for the entire place? Explain your logic.
*Identify some twenty products that the Retail Outlet would be successful in selling.
*Using some assumptions estimate the total initial investments.
*What kind of Marketing approaches must he use ?
· What kind of a Manpower requirement should he plan for and try to outline a organizational structure.