Varun Supermarket Retail (P) Ltd.’s Marketing Research (A): Analysing Store Image through Factor Analysis
started by Varun Kumar (Varun), an MBA graduate. Varun wanted to have his own retail business for which he secured capital from his family and registered a retail company under the name of VSRPL in January 2010. The store was located in a prime location, where many educational institutions (colleges and schools), shopping complexes, independent shops, retail chains, restaurants, etc., were located. VSRPL’s product range included staples, fresh vegetables & fruits, milk, FMCG, frozen foods, small appliances and gift articles.
Varun recruited a Store Manager, three Executives and an Admin-cum-Accounts Executive for VSRPL. Varun, himself attended to client calls as a Customer Care Executive on most of the days.
Although, Varun used both Above The Line (ATL) and Below The Line (BTL) promotional strategies for inducing the sales and revenue growth of VSRPL, the sales were plummeting (Exhibit I). He observed that for the last 8-9 months, the number of repeat customers was also dwindling continuously..........
Assignment Questions
I. What is factor analysis? According to you, how is it different from other related techniques – ANOVA, multiple regression and discriminant analysis?
II. ............
Exhibits
Exhibit I: Quarterly Sales Breakup Value for 2015-2016 (in INR)