Top Star Supermarket Business Analysis
Top Star Supermarket Business Analysis
TOP STAR
SUPERMARKET
ACKNOWLEDGEMENT
At the very beginning, I would like to express my gratitude to Almighty God for making
me able to complete my internship and my graduation. Then I must express my deep
gratitude to my University supervisor, for his guidance and suggestions in finishing the
internship program successfully. I would like to place my gratitude to the HEAD of TOP
STAR SUPERMARKET for giving me the chance to finish my internship position in
their regarded association.
I have prepared my report on TOP STAR SUPERMARKET. I tried my best to get ready
this paper to the required standard.
I would also like to thank, the manager of TOP STAR SUPERMARKET Mr. Akin for
allowing me to do the report on his entrepreneurship journey and helped me a lot while
making the report. It helped me to learn many new things. I am making this project not
only for marks but also increase my knowledge. Thanks again to all who helped me.
Executive summary
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This report analyzes how Mr. Akin started, operated and managed the TOP STAR
SUPERMARKET as an entrepreneur, and what management strategies he has used to
achieve business success. TOP STAR SUPERMARKET is a grocery store which is
located at COW STREET NKWEN . The store has various sections ranging from food
items to household items, restaurant and hotel services. These items include some items
that are considered fast-moving consumer products.
TOP STAR SUPERMARKET has complete knowledge of everything from their target
customer to loyal customer even though they do not maintain customer profile in any
documented way. The store caters to individual customers and businesses. The store has
two categories of items such as bachelor items include male and female items and family
items include adult and children items. The store offers its customers two payment
methods, cash and credit.
In addition to the TOP STAR SUPERMARKET, there are several other grocery stores in
NKWEN, so the competition is fierce. There are two types of competitors that are seen
when analyzing competitors such as direct competitors, which includes all the stores
located near the store, and indirect competitors, which include supermarkets and
wholesalers.
The key strategy of the store's business management is to attract and retain customers.
Always keeping customers first priority, in the end it proves to be a competitive
advantage of its business. Storeowner puts more emphasis on hall canteen managers and
those who shop in bulk and puts comparatively less emphasis on the retail customer.
During COVID19, hall canteens and small restaurants are closed; TOP STAR
SUPERMARKET is facing huge losses. To overcome this crisis, it needs to retarget its
market segment and reposition accordingly.
Table of Content
Contents
Background:................................................................................................................... 7
COMPANY INSIGHT......................................................................................................9
Organization Profile.....................................................................................................10
SWOT Analysis:.......................................................................................................10
Product Portfolio..........................................................................................................11
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Fast Moving Consumer Good:..................................................................................13
Sales Volume:..........................................................................................................13
CUSTOMER INSIGHT..................................................................................................14
Consumer Market (B2C)..............................................................................................15
Buyer, User............................................................................................................... 15
Customer Profile.......................................................................................................15
Business Market: (B2B)...............................................................................................16
Purchase Pattern According to Demographic Factors..................................................17
Purchase Items:.........................................................................................................17
Purchase Amount:....................................................................................................17
Purchase Timing:......................................................................................................18
Type/ Mode of Payment:..........................................................................................18
COMPETITOR INSIGHT..............................................................................................19
Competitive Environment Analysis.............................................................................20
Direct Competitors:..................................................................................................20
Indirect Competitors:................................................................................................25
INTERNSHIP INSIGHT.................................................................................................27
Recommendations........................................................................................................28
Background:
The origin of Top star supermarket can be traced as far back as 2007. It started operating
as a local bakery known as FIRST CHOICE bakery located at Mobil Nkwen, been fueled
by firewood a traditional means due to lack of Finance to purchase more sophisticated
equipment’s required by a 5star bakery. Four years later Mr. Akin opened a modern
bakery located at COWSTREET NKWEN, with time a Hotel was built to expand the
product line and brand name. Much is not known about the humble beginnings of Top
Star, but as of now, she has branches all over the national territory, a top notch bakery
too. From 2010 to 2013 a restaurant was setup at Cowstreet Nkwen, it became one of the
major retailing stores at Nkwen, it was emerging while the likes of NEWLIFE were
dying. It supplied products like home supplies, food stuffs and a combination of many
other fast moving commodities
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COMPANY INSIGHT
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Organization Profile
The name of the store is TOP STAR SUPERMARKET. It’s a grocery store. It is
primarily engaged in retailing a general range of food items, which may be packaged or
fresh. Mr. Akin started his own business in 2007 by renting the store. The store is located
at COW STREET NKWEN. Also known as NKWEN Market. It is a well-designed and
disciplined market beside NKWEN campus. Over a dozen employees work as a helping
hand under the supervision of Mr. Akin to run the store.
SWOT Analysis:
We can use SWOT Analysis to do Competitive Environment Analysis. SWOT analysis
helps to create a competitive marketing plan, as it is a strategic planning technique that
evaluates four aspects of the business. A business’s strengths, weaknesses, opportunities
and threats are identified through SWOT analysis. SWOT analysis allows us to determine
the exact current situation of a business and determine which strategy will be most
effective based on the situation. The best advantage of SWOT analysis is that the chances
of strategy failure are greatly reduced.
Strengths
• Highly experienced owner. Since he has been running the same business for the
last 34 years he has high experience in this field
• Has a huge range of permanent customers
• The market is located in a great place as all the big halls were located in the areas
next to them.
• Enormous range of products
• Great customer service staff
• Has a great communication skill
Weaknesses
• Competitors can offer same product at a lower price
• Limited flexibility in pricing
• The store is located on the back side
• High staff cost
• High rental cost and store maintenance
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Opportunities
• Ability to extend that store
• Have chances to do more B2B business
• Ability to develop online site
• Increased product offering
• High barriers to entry
Threats
• Permanent customers have a chance to swap
• Already many competitors in the market
Product Portfolio
The TOP STAR SUPERMARKET has hundreds of products. They sell everything from
food products to personal care products, toiletries and many more. Food products include
packaged food products as well as products in bulk. Below is a list of product categories
that are available in the store.
1 Basic Foods-
Rice, Pulses, Flour, Garri, Cassava and other stuffs
2 Bakery
3 Restaurant
services
Fried Rice, Achu, Chicken source and other dishes
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4 Dairy- Eggs, Yoghurt, Butter, Cheese etc.
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Canned And Sauce, Mustard And Ketchup, Powder Milk, Yogurt, Tea,
Jarred Foods- Coffee, Chocolate Syrup, Peanut Butter etc.
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Cleanliness Laundry Detergent, Dishwashing Soap/ Liquid, Floor Cleaner
Cleaning etc.
Supplies-
Sales Volume:
Generally, increase in customers increases the profit by encouraging repeat business and
reducing the cause of operating for business and also by generating referrals. So finding
new customers is very important. TOP STAR SUPERMARKET runs business in two
ways, such as B2C and B2B. On average, in the case of B2B, sales volume is much
higher than B2C although the number of customers in B2C is much higher than in B2B.
However, at the end it can be seen that in comparison B2B sales volume is 70% whereas
in B2C sales volume is only 30%.
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CUSTOMER INSIGHT
Consumer Market (B2C)
Consumer market refers to when an individual or family buys products for their own
personal use, not to resell them. Not all consumers have the same test, choice and buying
habits. Depending on the characteristic of a consumer, his test, buying habits and
preferences will be. Marketers define these consumer characteristics through market
segmentation, which is a process of identifying and separating customers.
Buyer, User
In the case of grocery stores, the consumer market is where people buy products for
consumption and not for further sale. In addition, the products that consumers use in their
daily life dominate this consumer market. However, it is not important that the person
purchasing the product will consume or use the product. There is a difference between a
buyer and a user. Users are the people who are consuming or using the product on a daily
basis. In addition, those who are buying the product from the store are the buyers. It may
be that the buyer is purchasing the product for someone else's use and not for his own
use. In the case of grocery stores, the difference between the buyer and the user is much
greater. Since food items, household items and cosmetics items are available in grocery
stores, it is seen in the maximum case that one member of the family lists what is needed
for the whole family and then buys everything according to the list. The person will not
consume all the products that he has purchased but his whole family will consume or use
those products. Therefore, in this case, it is seen that the person who has purchased the
products is both the buyer and the user but his family is just the user. Again, it is often
seen that the caretaker, worker, driver or gatekeeper of the house goes to the market to
buy the product; in that case, he will be considered as the buyer only because he is buying
the products for someone else's use and not for his own use. Moreover, those for whom
the products have been purchased will be considered as users in this case. Also in some
other situations, the difference between the buyer and the user can be identified. For
example, when the mother or father of a child buys a baby food item like Cerelac,
powdered milk for the child, the child can be considered as the user and the parent as the
buyer.
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Customer Profile
Customer profile includes age, location, hobbies, job title, income, purchase habits, goals
or motivation of customers. Customer profiles are designed to understand who the ideal
customer is, so that marketing messages can be crafted that address the ideal customer's
needs. Moreover, through this message, the attention of ideal customers can be attracted
towards their own store.
TOP STAR SUPERMARKET does not make a customer profile in any document, where
the customer's name, age, location, purchases habit, occupation, purchase time, income
etc. will be written. Although TOP STAR SUPERMARKET does not maintain customer
profiles in a documentary way, they still have a thorough knowledge of customer profiles.
Employees of TOP STAR SUPERMARKET have full knowledge of what age group
their target customers are, what location they are entitled to, what occupation they are in,
what their income is like, buying habits, time of purchase, what is the purchase amount.
For example, the maximum number of customers of TOP STAR SUPERMARKET is in
the young age (University students) and middle-age group. Maximum customers are
entitled from Bamenda, Nkwen Quarter, University of BDA. Moreover, most customers
prefer grocery shopping on a weekly basis. Again, many people shop on a monthly basis
but there are very few people who shop on a daily basis. People who buy products on a
daily basis buy only those products when they are needed or when they run out. In many
cases, it is seen that a family member like father, mother, and son comes to the market
and buys the product. However, in many cases it is seen that after making the list, the
driver or the housemaid is sent to shop in the market. In this case, the driver, the house
cleaners are considered customers of the store and the relationship with them is
maintained, and they are the ones who are targeted as potential customers.
Top star always focuses on the customer. It always tries to make customers permanent in
order to build a good relationship with the customer. As the market is located in a very
good location and all the big halls are located in the areas next to it. For example, the
halls beside Mobil Nkwen, then the halls under NKWEN all are located around the
market. All the monthly and weekly meals of NKWEN halls of Bamenda University’s
Halls always went from Nkwen neighborhood. Not only halls, it is also a main
marketplace for Eden students.
Purchase Items:
We have previously analyzed what items are available at the TOP STAR
SUPERMARKET. If we consider all of these items demographically, we can discover
that a number of items can be divided into two categories such as, Bachelor Items and
Family Items. Bachelor items can be further divided into male and female for example,
shaving cream, razor, Men's Fair & lovely, men's face wash etc. All of these products
are for boys only, while there are some products that are for girls only, such as Remover,
Fair and Lovely Snow, Ponds tone up cream etc. Like bachelor items, family items also
can be divided into two parts as Items for Kids and Items for Adults. Items for kids
include Cookies, Biscuits, Cake, and Chips etc. In addition, items for adults include basic
foods, dry/baking goods, health and beauty personal care items etc. Usually the purchase
decision of the kid's items is made at the end of shopping. For example, after purchasing
all the essential items, the customer may ask the shopkeeper to add some junk food or
chips.
Purchase Amount:
All kinds of customers come to shop at TOP STAR SUPERMARKET such as men-
women, young generation, middle-aged people as well as old generation people. In their
purchasing pattern, there are sometimes quantitative differences demographically.
Usually men shop in bulk more than women do. When the whole month or half month's
grocery shopping is about to be done at once, usually men come to the bazar to do that
shopping. Women are also making purchases in bulk, but men do more. The younger
generation customers usually shop in small quantities instead of shopping together for a
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whole month. Most of the customers of the younger generation in the customer base of
TOP STAR SUPERMARKET are students and bachelors from Bamenda, and bachelors
purchase fewer amounts together. They do not prefer to purchase large amounts at once.
Family persons purchase more amount together than bachelors do.
We see some influence of social class for purchase. Usually some families send a
household, house cleaner, and drivers to the bazar to do grocery shopping. Nevertheless,
when they do shopping in bulk, someone from the family prefers to do shopping instead
of sending the household or driver. Mostly male members do and sometimes many bring
the household or driver with them.
Purchase Timing:
Usually there are customers throughout the day. Analyzing the demographic way,
customers come to the market to shop both time day and night. However, female
customers prefer to shop mostly during the daytime. Young Generation customers mostly
shop in the afternoon and evening.
Since Nkwen is a popular place that is surrounded by several streets. Moreover, in Nkwen
neighborhood there are grocery stores, raw markets as well as juice corner and fast food
item stores. Therefore, the students hang out there from afternoon to night and they prefer
to shop during that time. TOP STAR SUPERMARKET also has some customers who
always come to shop when the store is about to close.
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COMPETITOR INSIGHT
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Competitive Environment Analysis
Competitive analysis is performed on those who do business with the same product and
services. The more competitive a market environment is, the more the same products and
services will be traded in that market because they are competitors of each other. The
business strategy is to always consider the environment around it. All opportunities and
threats in that environment need to be analyzed. This analysis determines the strength of
the competition and the attractiveness and profitability of a market. The competition in
the market is very high as there is more than one grocery store on one floor in Nkwen
Neighbourhood. Therefore, it is very important to evaluate the strategy of the competitors
to determine the strength and weakness of the business. There can be two types of
competitors like
Direct Competitors:
Direct competitors are those who sell the same or substitute product in the same place and
in the same format. When multiple sellers sell similar products in a market, customers
evaluate all similar products before making a purchase decision. Multiple grocery stores
are located on one floor in Nkwen Neighbourhood. They all are considered as direct
competitors of each other.
Total 57 48 30 51
Importance of criteria
1. Average
2. Very important
3. Very very important
Location: Location is very important for the success of a business. Because the number
of customers they can reach depends on the location of the business. Many times a
business fails only for the wrong location so the business should be set up in a location
where the demand for the product or service of that business is good and it is easy to
reach the customer. TOP STAR SUPERMARKET is located on the second floor of
Nkwen neighborhood and Nkwen neighborhood is a popular business place. It supports
NKWEN and Bamenda halls alone and supplies goods to the surrounding areas.
Pricing: In the case of grocery stores, pricing can be considered as the average criteria.
This is because the price of the maximum product is fixed, such as packet products,
cosmetic products and brand’s food item’s Maximum Retail Price (MRP) are set by the
storeowner. Therefore, every store sells at the same price. Items that are sold openly, such
as rice and pulses, can be reduced or increased, but also within a limit.
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Pricing can be considered as Major Strength in almost all stores including TOP STAR
SUPERMARKET. Since the price of the maximum product is fixed, but there are some
products whose prices are not always fixed such as rice, pulses, potatoes, onions etc.
Moreover, there are different types of these items which are sold in bulk on a per kg or
gram basis. The price of these products can be increased or decreased. In order to attract
or retain customers, TOP STAR SUPERMARKET often sells at a lower price and tries to
maintain a good relationship with the customer so that the customer prefers to purchase
from TOP STAR SUPERMARKET later. Even NJEIFORBI GENERAL STORE,
BABUL (MOMOTAJ) STORE, BIG G SUPERMARKETSTORE also increases or
decrease the price of their products, based on time, season and customer demand in the
same way.
Customer Service: Customer service is a very very important factor in this business
field. Similar products are available in almost all grocery stores so there is no scope for
product differentiation. In this case, customer service is the only way to attract customers’
attention. When customers are treated well, calmly & Kindly talk to them or deal with
them, then customers prefer to purchase from that store. Not only for that time but also in
the future and for customers prefer to buy from that store. Good service makes customers
feel at ease in their minds. With good service, potential customers can be converted into
loyal and regular customers. If employees of a grocery store treat customers badly, then
the business can be affected badly. Because there are multiple grocery stores in the same
market and the same, products are available in all stores. So if the customer service is bad
then the customers prefer to switch to another store.
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In the case of BABUL (MOMOTAJ) STORE, customer service can be considered as a
minor weakness. Because they are, focus more on retail customers than retaining
customers. They want to attract more than one customer at a time. As a result, they
cannot provide good service. They cannot convince customers well so there is no scope to
retain. Customers come and ask for the product, then take the product and leave. Which is
why customers do not think it is important to buy from that store later.
Customer Relationship: Customer relationships are very important for the success of a
business. When a business builds a strong powerful relationship with customers, those
customers become loyal customers. It increases the sales of the business that helps to
increase the overall profit. Good customer relationships reduce customer attrition and
establish customer’s trust as well as boost customer morale. The major part of the
business’s profits come from loyal customers. Therefore, maintaining a good relationship
with customers and turning them into loyal customers and retaining customers is much
more important for the business. In short, customer relationships are important to increase
the customer loyalty and the number of customers, which also helps to increase the
amount of money each customer spends in the business. Good customer relationships are
also important to generate positive word of mouth about the business and positive word
of mouth is one of the best tools for promotion, which is also free of cost and most
effective.
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In the case of BABUL (MOMOTAJ) STORE, the customer relationship can be
considered as a minor weakness. As mentioned earlier, they are mainly focused on retail
customers, not customer retention. Therefore, they do not try hard to build a good
relationship with the customers and maintain that relationship.
Fairness: Fairness is very important in the case of grocery stores. Many times customers
prefer to buy from another store, in the second time despite having good customer service
and low price. Not only this, many times loyal customers switch to other stores only
because of unfairness. Fairness is not only making sure that every customer is treated the
same but also every customer is getting the fair value for their money. Fairness can avoid
negative publicity and unfairness can spread negative word of mouth. Grocery stores
have a variety of unfairness such as giving products underweight, charging high prices,
selling expired products and much more. For these reasons, customers lose faith. As a
result, they stopped purchasing from that store. In addition, spread negative word of
mouth that can lead a business to failure. As a Result Loyal Customer Decreases as Well
as the Number of Customer Decreases, Sale Drops and Profit also Decreases. Therefore,
it is very important to be fair in business all the time.
Indirect Competitors:
Indirect competitors are those who do business of similar products but in different
formats such as supermarkets, wholesalers. Supermarkets offer a wide variety of food,
beverages and household products, and most importantly, everything is organized. Many
people now prefer to shop from the supermarket. There are also some supermarkets
approximate to Nkwen Neighborhood such as Njeiforbi, JANNA supermarket. They are
indirect competitors though they run business in different formats.
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Recommendations
References
Belch George E., Belch. Michael A. (2014). Advertising and promotion: An Integrated Marketing
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Cravens David W., Piercy Nigel F. (2016). Strategic Marketing (10th Edition). McGraw Hill Education.
Hawkins Del I., Best Roger J., Coney Kenneth A. (2007). Consumer Behavior: Building Marketing
Management: A South Asian Perspective (5th Edition). Cengage Learning India Pvt. Ltd.
Keller Kevin Lane. (2013). Strategic Brand Management: Building, Measuring and Managing Brand
Kotler Philip, Armstrong Gary. (2014). Principles of Marketing (15th Edition). Pearson Education India.
Schiffman Leon G., Kanuk Leslie Lazar & Kumar S. Ramesh. (1978). Consumer Behavior (10th
Edition).
Appendix
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