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Zegema Retail: Space Planning

CASE STUDY, OPERATIONS AND PROJECT MANAGEMENT
ET Cases, 10 Pages

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Zegema Retail: Space Planning

 

“Retail space-planning process is like a wild goose chase with logics woven through a large number of variables perpetually hunting for THE BEST alternative.”

– Shweta Deora (Deora), Head – Space Planning, Zegema Retail Ltd



It was a fine Saturday morning in Kolkata. Deora looked at the calendar as she sipped her favorite filter coffee. It was 7th of July, she had exactly ten days in which to create a comprehensive spaceplanning document for Avishar store and hand it over to their merchandising team for the launch.

Avishar was earmarked to be Zegema’s flagship store in Kolkata. Zegema was the organized retail business unit of AB Group, one of India’s largest business conglomerates, which branched out into the retail sector, the power sector, carbon black and tyres, education, the entertainment industry, infrastructure and hospitality, and IT services. AB Group of companies founded in the year 1979 was generally considered as an orthodox family-run business. In the year 2005 with the death of its founder,the second generation (founder’s sons) of the family stepped into key positions. Since then, the groupas whole became more aggressive in all its business concerns. This was further reinforced at the top level when the management indicted fresh talents from elite Indian business schools in the year 2006. Twenty graduates were picked from prestigious institutions like the IIMs (Indian Institute of Management), XLRI (Xavier’s Labour Research Institute, Jamshedpur), MDI (Management Development Institute, Gurgaon) and ISB (Indian School of Business, Hyderabad)............

Teaching Note Preview

Zegema Retail: Space Planning

 

Synopsis

This case provides an opportunity for the participants to get hand-on experience designing a space plan and planogram for a medium sized modern retail outlet (360 to 540 square meters). This case details the practical difficulties encountered while attempting to do space planning in a modern retail outlet. Dilemma of space allocation between categories, logics & processes of creation of planograms, process of implementation of planograms, debates of standardization vs customization of store layout & rack allocation, etc. are the areas which this case discusses. The real-time data made available as downloadable excel file will give an opportunity for the participants to keep playing with data and arrive at many interesting possibilities of space plans and planograms.

Learning Objectives

The objective of this case is to give a near-actual experience to the participant in creating space-plan and planogram of a modern retail outlet. This case also intends to discuss and debate the logics considered for logistic planning along with its implication on space planning process. This case will give an integrated perspective to the participants about the complexities of space planning process and the interconnectedness of space planning process to other verticals of retail industry.

Case Positioning and Setting

This case is ideally to be discussed during the middle of Retail Management course. This case requires the participants to be accustomed to the retail terminologies like Stock Keeping Unit (SKU),Distribution Centre (DC), etc. Hence it is recommended to use this case in the middle segments of the Retail Management course.

Prerequisite Conceptual Understanding

The participants should have an understanding of the concepts of merchandising and retail operations before this case is taken for the discussion in class with the help of the following chapter:

  • • Chapter 17 - Store Layout, Design, and Visual Merchandising; Retailing Management (8e), Michael Levy, Barton A. Weitz & Ajay Pandit, McGraw Hill Education (India) Private Limited.
 
Assignment Questions

I. What should be the in-shelf stock quantity of tata salt 1 kg?
II. What should be the resource allocation for different categories/families of SKUs? Substantiate your answer with sound logic for the allocation process.
III..................

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Abstract

This case provides an opportunity for the participants to get hand-on experience designing a space plan and planogram for a medium sized modern retail outlet (360 to 540 square meters). This case details the practical difficulties encountered while attempting to do space planning in a modern retail outlet. Dilemma of space allocation between categories, logics & processes of creation of planograms, process of implementation of planograms, debates of standardizationvs customization of store layout & rack allocation, etc. are the areas which this case discusses. The real-time data made available as downloadable excel file will give an opportunity for theparticipants to keep playing with data and arrive at many interesting possibilities of space plans and planograms.


Pedagogical Objectives
The objective of this case is to give a near-actual experience to the participant in creating space-plan and planogram of a modern retail outlet. This case also intends to discuss and debate the logics considered for logistic planning along with its implication on space planning process. This case will give an integrated perspective to the participants about the complexities of space planning process and the interconnectedness of space planning process to other verticals of retail industry.

Case Positioning and Setting
This case is ideally to be discussed during the middle of Retail Management course. This case requires the participants to be accustomed to the retail terminologies like Stock Keeping Unit (SKU), Distribution Centre (DC), etc. Hence it is recommended to use this case in the middle segments of the Retail Management course.



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