What are the factors to consider if you work in the sales department of Samsung and you want to start a store in one of the most crowded malls of Bangalore?
Question
Think through all the points like
-Foot fall
-Customers
-Supply and demand issue (connect with warehouse)
-Break even point of profit
-Exit points if things fail
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Answer ( 1 )
I have tried to structure my thoughts as per the points given and some more suggestions-
Foot fall
1. Variations during weekdays and weekends (any particular hours of max crowding?)
2. Uptick during mall promotional activities (a general campaign during a holiday which invites people to the mall)
3. Variations as per the mall floor (does 1st floor have more relevant neighboring shops than the ground floor and hence attracts more potential customers?)
4. Maximum capacity during any day and average footfall per store, per type.
Customers
1. Are they coming from different parts of Bangalore or just neighboring ones? Is the mall accessible?
2. The profile of a customer – do college kids visit more or a mix of families and young working professionals? Any idea of the breakup?
3. Is the locality posh and upscale?
Supply and demand issue (connect with warehouse)
1. How far is the warehouse from the store? Can it ensure that there is no stock-out ever?
2. What is the capacity of that warehouse? Can it cater to the market demand and replenish stock in a periodic manner?
3. Demand generation activities – Do mall visitors respond to promo activities done inside (or outside) the mall?
Break even point of profit
1. Cost headers – Rent, salaries, inventory holding, promo activities (in and beyond the mall, including discounts), supply chain (trucking).
2. Revenue headers – sales made as per SKU (Did low-priced handsets sell more or high-priced ones sold less but contributed more to the overall revenue?)
Exit points if things fail
1. Relocation within the mall or an area near it?
2. Identify the main reason of failure – was it due to competitors’ presence?
These are some factors to look at.