Return to Previous Page

Regression Analysis for Expansion at Stop’N’Shop

CASELET, MARKETING RESEARCH
ET Cases, 4 Pages

Case Preview

Regression Analysis for Expansion at Stop’N’Shop

 

On June 25th 2016, Ramesh Goud (Ramesh) the Founder and CEO of Stop’N’Shop, a reputed retailer in South India, was reviewing the company’s 2015 Annual Report.  Ramesh found himself in a quandary on the connection between the revenues and expansion of Stop’N’Shop.

Ramesh, after completing his graduation in Business Management, started his career in 1993 with a popular retail chain in India. In 2003, when the retail chain went online, Ramesh was appointed as the in charge for the business. He had established a good network with many suppliers. After acquiring sound knowledge, he  aspired to start his own venture. As he lacked enough funds for starting a business, he approached a bank for business loan along with his proposal. With the loan  sanctioned, in 2006, Ramesh established his retail store Stop’N’Shop (both online and physical store) at Jaya Nagar in Bangalore with seven employees. Stop’N’Shop was established with an aim of supplying quality products to the potential customers at affordable price.

Ramesh also had tie ups with many rural farmers and suppliers whom he had known already. He gave many promotional offers (Above the line (ATL) and Below the Line (BTL)) to attract the potential customers. For instance, he gave free home delivery, order-to-home delivery, gifts, prizes, etc. The store became popular in Bangalore within few months of its inception. Ramesh strongly believed that customer satisfaction was the key factor in defining the growth and market standing...................

Teaching Note Preview

Regression Analysis for Expansion at Stop’N’Shop

 

Synopsis

This caselet can be used to introduce the students/participants to the concepts of correlation and regression in marketing research. It highlights the quandary  faced by Ramesh Goud (Ramesh), Founder and CEO of Stop’N’Shop, a Bangalore-based retail chain, how to identify the relationship between the number of stores, average store size and the total revenues. Ramesh called his ex-colleague, President, Marketing, Ritesh Gupta to identify if at all there was any model to identify or  examine the relationship between the expansion strategy of the chain and its revenue growth.

Prerequisite Conceptual Understanding

  • Naresh K. Malhotra and Satyabhushan Dash, “Correlation and Regression”, Marketing Research An Applied Orientation, 6th Edition, Pearson Education, 2010 – To understand the concepts of correlation and regression

 

Case Positioning and Setting

This caselet can be used in MBA Program/MDPs/EDPs – Marketing Research Course – To introduce the participants/students to correlation and regression concepts

Assignment Questions

  • I. How do you measure the relationship between the following variables: retail expansion and financial growth; the store size and financial growth in the context  of Stop’N’Shop? Analyse how these variables are related to each other and measure the strength of the relationship.
  • II. If you are appointed as a consultant for Stop’N’Shop for expansion strategy, what would be your recommendation? Would you recommend an expansion  strategy by increasing the number of stores or operating smaller number of large stores (increasing average store size)?
  • III. Develop a model that best describes average revenue per employee as a function (of year and average store size). Inferring from the analysis, elucidate the  ideal expansion strategy for Stop’N’Shop.

 

Preamble to this Caselet Analysis

This caselet was used to introduce the participants/students to the idea of correlation and regression analysis in marketing research. These methods were  discussed and analyzed in the light of Stop’N’Shop’s CEO and Founder’s business quandary of understanding the relationship between revenue and other  variables like store size, number of stores, etc. Accordingly, this caselet was orchestrated in the following way [Exhibit (TN)-I]...........

$3.66
Rs 0
Product code: MR-2-0021, MR-2-0021A

Abstract

This caselet can be used to introduce the students/participants to the concepts of correlation and regression in marketing research. It highlights the quandary faced by  Ramesh Goud (Ramesh), Founder and CEO of Stop’N’Shop, a Bangalore-based retail chain, how to identify the relationship between the number of stores, average  store size and the total revenues. Ramesh called his ex-colleague, President, Marketing, Ritesh Gupta to identify if at all there was any model to identify or examine the  relationship between the expansion strategy of the chain and its revenue growth.



Pedagogical Objectives

  • To discuss and understand the concepts of product moment correlation, partial correlation and part correlation
  • To elucidate the bivariate regression model and conduct bivariate analysis for the defined problem
  • To elucidate the multiple regression model and conduct multiple regression analysis for the defined problem using specialized techniques like stepwise regression

Case Positioning and Setting

This caselet can be used in MBA Program/MDPs/EDPs – Marketing Research Course – To introduce the participants/students to correlation and regression concepts



This Case Pack Includes:
- Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
$3.66
Rs 0

Related products




Request for an Inspection Copy

(Strictly for Review Purpose, Not to be Used for Classroom Discussion/Trainings)