E-Commerce Assignment
Case: Basmati House Supermart: Co-Operative
Competition with an E-Retail Channel
Submitted to: Assistant Prof. Ben Krishna M U
Submitted by: Group 2 (Section A)
Q 1. Analyze the growth trajectories of Sadar Bazar and other wholesale markets in
Gurugram. What inferences could Vishal draw about the emerging wholesale and retail
landscapes and their likely futures?
Ans. Analysis of Growth Trajectories
Sadar Bazar:

Historical Significance: Sadar Bazar has been a central wholesale market in Gurugram with
a longstanding reputation.

Product Variety: Offers a wide range of products from FMCG goods to textiles and
electronics.

Customer Base: Serves a diverse customer base including retailers, end consumers, and
small businesses.

Growth Factors: Growth driven by its central location, extensive product range, and
historical trust.
Other Wholesale Markets in Gurugram:

Newer Entrants: Markets like Rajiv Chowk and Sikanderpur have emerged as significant
competitors.

Specialization: Some of these markets have specialized niches, focusing on specific
product categories.

Modern Infrastructure: Many newer markets boast better infrastructure, parking facilities,
and more organized layouts.

Customer Experience: These markets are designed to enhance the shopping experience,
attracting more footfall.
Inferences for Vishal:

Diverse Competition: The competition from newer markets indicates a shifting landscape
where traditional markets like Sadar Bazar face significant challenges.

Customer Preferences: There is a clear trend towards markets that offer a better shopping
experience, indicating a need for modernization and customer-centric strategies.

Future Landscape: The wholesale and retail landscape is likely to become more
fragmented, with specialized markets and improved infrastructure becoming key
differentiators.
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Q 2. What effect did the partnership with Springers have on BHS’s business? What metrics
should Vishal consider and how should he interpret the results?
Ans. Business Impact
Positive Effects:

Increased Footfall: Partnership with Springers led to higher customer traffic in BHS due
to shared promotions and brand recognition.

Revenue Growth: Short-term revenue spikes were observed during promotional periods.
Negative Effects:

Margin Pressure: The discounts and promotional activities with Springers resulted in
reduced profit margins.

Customer Dependency: Increased dependency on Springers' customer base, creating a
potential risk if the partnership ends.
Metrics to Consider

Sales Revenue: Analyze monthly and quarterly sales figures pre and post-partnership.

Customer Acquisition Cost (CAC): Measure the cost of acquiring new customers through
the partnership.

Customer Retention Rate: Track how many new customers became repeat buyers.

Profit Margins: Assess the impact on profit margins during the partnership period.

Customer Feedback: Collect and analyze customer feedback on their shopping experience
during the partnership.
Q 3. What additional information would help Vishal to make his decision? Which
information gaps need to be overcome so that Vishal can navigate his business in the future?
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Ans. Information Gaps
Customer Insights: Detailed demographic and behavioral data of customers acquired through the
partnership.
Competitor Analysis: In-depth analysis of competitor strategies, especially those who have not
partnered with Springers.
Market Trends: Current and projected trends in the FMCG sector and how they might impact BHS.
Operational Costs: Detailed breakdown of operational costs incurred during the partnership.
Information Collection
Surveys and Feedback: Conduct customer surveys to gather insights on preferences and
satisfaction levels.
Industry Reports: Utilize industry reports and market research to understand broader market trends.
Financial Analysis: Detailed financial analysis to assess the true cost-benefit of the partnership.
Q 4. Should Vishal renew his contract with Springers? How should he make his decision?
Ans. Factors to Consider
Benefits:
Brand Association: Continued association with a well-known brand like Springers can enhance
BHS’s market credibility.
Customer Traffic: Potential for sustained higher customer traffic and sales.
Drawbacks:
Margin Erosion: Ongoing pressure on profit margins due to discounting.
Dependency Risk: Increased dependency on a single partnership for customer acquisition.
Decision-Making Process
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Cost-Benefit Analysis: Perform a comprehensive cost-benefit analysis considering both
quantitative and qualitative factors.
Scenario Planning: Evaluate best-case and worst-case scenarios of renewing vs. not renewing the
partnership.
Stakeholder Consultation: Consult with key stakeholders including suppliers, employees, and
loyal customers for their perspectives.
Q 5. Even if Vishal does renew his contract with Springers, what areas should he explore in
order to ensure he has sufficient negotiating power during future negotiations?
Ans. Strategies for Enhanced Negotiation Power
Diversify Partnerships:
Multiple Partnerships: Explore partnerships with other large retailers or brands to reduce
dependency on Springers.
Local Collaborations: Form alliances with local businesses to create a robust network of partners.
Strengthen In-House Capabilities:
E-commerce Platform: Invest in enhancing BHS’s own e-commerce platform to reduce reliance
on external partners.
Customer Loyalty Programs: Develop robust customer loyalty programs to retain and attract
customers independently.
Market Expansion:
New Locations: Consider expanding to new locations within Gurugram or neighboring regions to
diversify revenue streams.
Product Line Expansion: Introduce new product lines that cater to emerging customer demands
and trends.
Preparation for Future Negotiations
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Data-Driven Insights: Utilize data analytics to present a strong case during negotiations,
showcasing customer insights and business performance metrics.
Flexible Contract Terms: Aim for flexible contract terms that allow adjustments based on market
conditions and business performance.
Performance Benchmarks: Set clear performance benchmarks that the partnership should achieve,
ensuring mutual benefits.
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