Essay About Lower Cost.The Concept And Customers Of The Company.In India Customers

Amal Bose Marketing
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FORA great move by Amal bose an IIT-IIM alumnus pass-out of opening a Super Mart and his main focus was on food and groceries as after studying the market he came to know that the goods are very costly so he started marketing those items at lower cost.The concept was to provide the products at a very low rates from the other retail shops.He kept the margins very low to make out the stores in the market. And within few years he opened about 1500 stores. The company does not go for much improvement of infrastructure of stores and focused on the prices. And also the customer needs good quality in lower prices so this study of market let him lower the prices.They soon targeted lower and middle class by providing purchase points to them which increased the customers of the company.In India customers does not need shops which are far for them and only few products are available there but instead they need shops which are nearer to them and have the maximum products of their needs.Soon the company began selling FMCG where margins are very low. He thought of selling FMCG also along with food and groceries.After selecting Vinay Agrawal the company saw the hike of company.A total of 20% of profit alone made from his NCR region.AGAINSTHis margins was very low and he opened too many stores so he could not get much profit to invest in the stores.Vinay noticed some problems in the stores and asked the company to setup an IT infrastructure but the company refused. He had an experience of 15 years in that field but then also denied his opinions.Also when the company was in its toughest time it did not answer any phone calls and does not give suggestion to the Regional Office Heads.The Company did not provide the payments to the vendors which let company starts its downfall. The vendors stopped sending the goods to the stores.And also the company did not think about its employees, they didn’t pay to their own employees also for 1-2 months.And the major problem faced by the company was when FDA had a raid on the company regarding the provident funds.The company although deducted the amount of provident funds from the employee’s salary but do not submit in the account.    This let the stores near the NCR region shut and order to cancel the operation came against the company.CONCLUSIONAmal Bose understood the market and lowered the prices of the goods to attract the customers and increase its business. It was a good step and due to this step only he gained profit but when he made his place in the market he did not increase its rate and as a result he did not much profit later in the market. He only focussed on the prices but not on the IT infrastructure and the design and started its downfall from there. And also he used to sale the goods whose margins are very low and due to this he could not make much profit.