KIRANA STORE CASE STUDY
Name: S.M. VIKNESHWARAN
Roll No: FK-4031
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Introduction
Rajesh Stores, a well-established family-run shop, is situated near Kathrikadavu Junction. This store
has been here for the last twenty years in the same building and is run by Mr. Rajesh. This is a family-
run store, as he has taken over from his father, but his father occasionally comes to the store when his
son is not feeling well or is busy with other tasks. His father first opened the store in 1980 near this
location, but after a year of their hard work and dedication, they bought this land and opened the store
that is currently open for the customers.
Majority customers are working class individual,
with people from different states due the location
of the store. This store offers a wide range of
essential items that meet their daily requirements
Mr. Rajesh believes that the quality of the products
he sells is best as he carefully buys from directly
from the market with no intermediaries. I think this
is the reason the store has a loyal customer base
that appreciates the consistent quality and value
offered by Rajesh Stores.
Mr. Rajesh understands the importance of building
a personal connection with the customers as he
regularly strikes conversation with majority of his
Customers and even jokes with them regardless of age and is very friendly in nature. He is type of
person who enjoys what he does because he enjoyed sharing his experience with me and was very
passionate about giving the best quality products. He even said during covid his shop helped a lot as he
didn’t close shop and even went frequently to buy the products from the market as the people needed
the basic products for survival and he ensured that is available for them.
General Working Day of the Shop
Mr. Rajesh opens his store every day at 8:30 AM. He closes the shop around 12:00 PM for lunch and to
restock products that need replenishment. The store reopens around 3:00 PM. Depending on the crowd,
Mr. Rajesh closes the shop between 9:00 PM and 10:00 PM.
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PHYSICAL CHARACTERSTICS OF THE STORE
Mr. Rajesh runs his store independently, with occasional help from his father. The store operates
without any employees, as Mr. Rajesh personally manages all the tasks. The store occupies
approximately 3 cents of land, which Mr. Rajesh himself owns, having purchased it 15 years ago.
Located at the busy Kathrikadavu Junction, the store benefits from high visibility and significant foot
traffic. On weekdays, Mr. Rajesh estimates that around 100-150 customers visit the store, while on
weekends, I observed an increase in footfall, with numbers rising to about 150-200 customers. Despite
the store's busy location and steady customer flow, Mr. Rajesh has chosen not to implement any
information systems. He believes that employing someone to manage such a system would not be
profitable, considering the scale and nature of his operations. Instead, he relies on traditional methods
to handle transactions and inventory. Mr. Rajesh also avoids giving products on credit, as he fears
customers might not return, jeopardizing the good relationships he has built over the years. He is
selective about accepting UPI transactions, only doing so for large amounts, as he feels it wouldn’t be
profitable for smaller transactions. However, he does use a modern weighing machine and fridge,
primarily for storing water and other cool beverages.
The products sold includes vegetables like Onion, Small Onion, Ginger, Potato. Which last long in the
store. The only fruit sold is Banana. Provisional items like rice are sold in loose and in packets along
with wheat and curry powders. Dairy products only sold are Milk and curd. Bathing, Washing and
toilet Products like bathing soap, toilet cleaners with brush and cloth cleaning soaps, Shampoo etc are
sold.
In the store, rice stands out as the most consistently sold
product, with eggs following closely behind, regardless of the
climate. On typical days, sales of cigarettes and water also
contribute to the store's revenue, but their figures do not
match the high and steady sales of rice and eggs.
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CUSTOMER PROFILING
The typical customer profile for Mr. Rajesh’s store is quite diverse due to the area in which the shop is
located. The average age of customers is in their 30s, mainly a mix of young professionals, middle-
aged individuals, and young families. Both males and females frequently visit the store equally.
One of the most distinctive characteristics of Mr.
Rajesh’s customer base is its demographic
diversity. The store is located in a bustling
junction, attracting customers from various states.
Due to this store caters to a wide range of tastes
and preferences, which is reflected in the variety of
products Mr. Rajesh stocks in his shop.
In terms of usage behaviour, customers seem to
visit the store primarily for daily essentials. The
steady footfall throughout the day, with higher
numbers on weekends, indicates that the store is a
go-to spot for people living in that area
He enjoys engaging in conversations with his customers, creating a warm and welcoming atmosphere
in his store. This friendly interaction adds to the overall appeal of the store, encouraging repeat visits
and fostering customer loyalty.
Overall, the typical customer at Mr. Rajesh's store is a young to middle-aged adult, equally likely to be
male or female, and coming from various cultural backgrounds. These customers rely on the store for
their regular shopping needs, appreciating its convenient location and the variety of products available.
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MERCHANDISE PLANNING
Mr. Rajesh actively engages with customers, discussing their preferences and observing their
purchasing behaviors. This direct interaction helps him identify what people want or what product is
currently in demand and purchases the products accordingly. He also spots patterns in product
popularity. He gave an example of rice and eggs consistently sell more than other items it indicates
their steady demand and need to restock frequently. According to him there is no increase in sales in
festive seasons as many people return to their homes during this time and local people would buy all
the things in the ready-made form rather than making it their home (he gave the example of payasam
as people would rather buy than make it in the home) this phenomenon has been increased throughout
the years according to him. He makes a note of the products that are low in stock or finished during the
morning and during his lunch break he directly visits the Ernakulam Markets and restocks the
products.
He also said that climate play’s role in determining the
products that need to restocked i.e. during the summer he
would stock upon cold beverages and products like tang,
rasna etc. As he is the one who directly buys the products
from the market if he sees good, fresh products that he would
most likely purchase it. He said for rice he would always
have 2 sacks of 50kg each for the types of rice he has. When
one sack is over the instantly purchases other sack as he said
it’s better to safe but for other products like soaps, washing
powder and other products that have long shelf life he would
buy the products when it is sold-out in the shop.
RETAIL PRICING MECHANISM
Mr. Rajesh sets the prices of his products by applying a general markup of 7-8% over the cost price,
resulting in an overall profit margin of around 1-2% after accounting for other expenses such as
transportation, storage, and electricity. He follows this pricing strategy without monitoring competitor
prices, relying on this standard markup for most items in his store. According to Mr. Rajesh, essential
products like rice, wheat, and pulses maintain steady sales regardless of price increases, as they are
considered necessities by customers. However, he observes that for non-essential items, such as
biscuits, there is a noticeable decline in sales when prices rise.
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Mr. Rajesh also believes that maintaining product quality plays a crucial role in customer purchasing
decisions. He has found that even when prices increase, especially for loose products, customers are
willing to continue buying if they perceive the quality to be high. This proves his belief that quality can
offset the sensitivity to price changes for certain products. Additionally, Mr. Rajesh has noticed that
customer income levels do not always directly correlate with purchasing behaviour. He gave an
example, a well-dressed customer might purchase only a few items, while another customer with a
modest appearance might buy a larger quantity of goods. This observation highlights the complexity of
consumer behaviour in his store, where factors such as perceived quality and necessity, rather than just
income, influence purchasing decisions. He said on the products of Hindustan Unilever he earn around
Rs.2-5 based on the product which may lead to Rs.800-1000 on a month with which he barely makes
any profit but people tend to buy the products of this brand.
VENDOR MANAGEMENT
Mr. Rajesh has a special way of getting products for his store. Unlike many other shop owners, he
doesn’t rely on suppliers or middlemen. Instead, he buys directly from the market or deals directly with
the producers. This approach is something he learned from his father, who once faced a big problem
when a supplier delayed delivering products. (in the old store) After that incident, they decided to cut
out the middlemen and start buying directly. This not only helps them get good quality products at
reasonable prices but also allows Mr. Rajesh to build strong relationships with producers over the
years.
Every day, during his lunch break, Mr. Rajesh goes to the market in his auto-rickshaw to pick up the
items he needs for his store. By doing this himself, he can ensure that the products he brings back are
fresh and of high quality. This personal touch helps him maintain the trust of his customers, who know
they can rely on him for good products. By cutting out intermediaries, Mr. Rajesh keeps his costs lower
while still providing high-quality goods, which is important for running a successful business. His
dedication to this way of working shows how committed he is to keeping his customers happy and
continuing the family tradition of quality and reliability.
LABOUR MANAGEMENT
Mr. Rajesh prefers to run his store by himself and doesn't have any employees. He enjoys his work and
feels that hiring someone else wouldn't be profitable for the business. If he ever falls sick or is too
busy, his father steps in to run the shop for the day, or they simply close the shop until he can return.
This hands-on approach not only allows Mr. Rajesh to maintain control over his business but also helps
keep costs low, ensuring that the store remains profitable.
OBSERVATION
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Peak hour of people visiting is around 6:00 p.m. to 8:00 p.m.(Approx 40-50 people)
Many of regular customers give a list of things they need and money in the morning and
collect the goods in the evening.
Mr. Rajesh has a friendly relation with most of the people.
Most sold products are Rice and eggs that day.
Due to different people from different regions, he knows at least the basic of languages.
He is a good multitasker.
He takes feedback from his customers a lot and also suggest them if new/fresh products are
available in the store.
He treats every customer on the shop equally regardless of how they dress themselves.
He still believes in the old school methods
CONCLUSION
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In conclusion, Mr. Rajesh's store serves as a remarkable example of the strength and sustainability of
small, family-run businesses in a competitive market. His decision to bypass suppliers and
intermediaries, instead choosing to source products directly from markets and producers, has not only
ensured that he offers high-quality goods at reasonable prices but also allowed him to build strong,
lasting relationships with his suppliers. This strategy has proven effective in maintaining a loyal
customer base that values consistency and quality.
By personally managing his store and handling all daily operations, Mr. Rajesh keeps overhead costs
low, which is crucial for maintaining profitability in a small business. His approach allows him to have
complete control over the quality of the products he sells and ensures that his customers receive the
best service possible. Even in the face of challenges, such as health issues or personal commitments,
his father's support ensures that the store continues to operate smoothly, highlighting the strong family
values that underpin the business.
Mr. Rajesh's keen understanding of customer behavior also plays a significant role in his success. He
recognizes that while essential items like rice, wheat, and pulses will always have steady sales, non-
essential items are more sensitive to price changes. His belief in the importance of maintaining quality,
even when prices increase, demonstrates his commitment to customer satisfaction. Additionally, his
observation that purchasing behavior is not always directly linked to customer income levels
underscores the complexity of consumer behavior, which he navigates with experience and intuition.
Mr. Rajesh's store is a proof of how traditional business practices, when combined with a deep
understanding of the market and a personal touch, can lead to long-term success. His dedication to his
work, his ability to adapt to changing conditions, and his focus on maintaining strong relationships
with both customers and suppliers are key factors that contribute to the enduring success of his store.
