Strategic Planning

Of  
Bhat-Bhateni Supermarket
Group Members
Nikki Maharjan 
Suman Chaudhary
Luna Khadgee
Ashmi Kumari
Vedant Basnyat
Palistha Manandhar
1.1.Institutional Introduction 

• Bhat-Bhateni Super Market was established in 1984 by Mr. Min Bahadur

Gurung, the company’s Owner and Chairman.
• It is a go to shop for household purposes serving the customer range of
products such as kitchenware, cosmetics, toys, clothing, electronics,
groceries, fresh product, shoes, flowers, jewelry, and other items under one
roof.
• The chain of this store began from Maharajgunj which followed a rapid
expansion in Kathmandu valley. Now, BBSM has stores in Koteshwor,
Anamnagar, Pulchowk, Balaju, Kalanki and many more. 
• Today, Bhat-Bhateni is Nepal’s leading supermarket and departmental store
chain who employs 4,500 full-time employees.
1.2.Vision & Goal 

• To generate job opportunities for 50,000 people in coming 10 years. 

• To expand its outlet in all growing cities of Nepal. 
• After establishing an outlet in most of the cities, they want to go
multinational in the countries like, India, Bhutan and Bangladesh. 
• They also want to change its payment system into Debit and Credit
card in coming 5 years of time. 
• To be a most admired retail chain by retaining our No.1 position in
Nepal. 
1.3. Brand Promise 

• Bhat-bhateni’s brand promise is to give back to the local

community with continuous improvements and growth in order to
support local development with current employment of over 4,500
staff, including several from families of political martyrs and
indigenous people.
1.4 Values 

• Bhat-Bhateni has been successful in creating value by providing at a

lower price than its competitors like Salesberry.
• They have created their value through flexibility, integrity, customer
value creation, innovation, respect. 
External Analysis
• External environment analysis is a key input into strategy formulation.
• Bhat-bhateni supermarket and Departmental store have to consider external issues to
gain competitive edge to its competitors.
• External environment is ever changing and beyond the control of the manager. Hence
the manager has to analyse the environment continuously to adapt the change.
• Analysis of external environment provides basic inputs for the strategic formulation.
Customer Analysis
i. There are three elements to customer analysis:
ii. identify your customers,
iii. define their needs, and
iv. show how your product or service meets those needs.
Market Analysis
Market size of the Bhat-Bhateni Supermarket
• Bhat-Bhateni Supermarket has a market size of one million square feet on average.
• It was established by Min Bahadur Gurung in 1984 as a single cold store of 120 square ft.
• it sells across 18 locations every day.
• it has employed about 4500 full time workers,
• who are mainly women.
• It also sells over 150000 different products,
• which it buys locally and internationally.
• By 2019, it was serving over 50, 000 clients every day.
• The supermarket enjoys 70% of the market share in Nepal, when compared to its
competitors.
New developments seen in this market
• The expansions of its many stores in the different places of Nepal.
• The continuius growth and development to give employment to the
indigenous people and political martyrs' family.
• The 15 Fifteen Sores born in the different areas of the country of Nepal, the
long term vison of the owner to establish farmer co-operatives, to give
support and give employment to the people.
Key success factors promoting the institution to lead in the selected
market segments:

• Get the product from reliable sources

• Continue with the innovation
• Know the market
Porter's analysis

Threats of new institutions coming in the same market Threats of substitute offers
• open industry  Presence of unorganized retailers.
 Presence of lenient business environment
 
 
Competitiveness among the industry
• Namaste
• Kasthamandap Bazaar
• Family Store
• Sale ways, etc.
Bargaining power of the customers Bargaining power of the suppliers
• BBSM has a fixed price • weak bargaining power
• no bargaining power • Choices are evident
 
Competitors Analysis
• The three of the closest competitors in ranking order.
• How are the competitors distinct from this institution? What are
their distinctive features better than this institution?
• How is this institution distinct from the competitors in terms of its
selected business offering and institutional features?
• The THREE competitors that this institution needs to really
consider.
The three of the closest competitors in ranking
order:
• Big mart
• Sales berry
• Saleways
How are the competitors distinct from this
institution?
• Attract more customer and set own unique factor.
• Bhatbhateni is one of a kind in Nepal.
• Has its own unique factors that stands out than others supermarket
out there.
What are their distinctive features better than this institution?

There are 5 ways to distinct bhatbhateni from the competitors:

• Product differentiation (features, performance, efficiency etc.)
• Service Differentiation ( Ordering ease, Delivery, Customer consulting
etc.)
• Channel differentiation(Coverage, Expertise, Performance)
• Reputation/Image differentiation (perception, communication,
advertising)
• Price Differentiation(BY customer, By quality, By segment)
How is this institution distinct from the competitors
in terms of its selected business offering and
institutional features?
• Provides variety of products available.
• Ranging from groceries and fresh produce, cosmetics and toiletries, a
broad range of international liquor, to an extensive choice of
kitchenware, clothing, sporting goods, toys and electronics.
• Committed to provide products of the highest quality, for the best
prices.
How is this institution distinct from the competitors in terms
of its selected business offering and institutional features?

• Offers a convenient shopping experience where customers can save

time and money.
• Offers free parking arrangements on the premises and a secure locker
system available to keep personal belongings.
• Restaurants, bank & ATM machine and dry cleaning services in the
vicinity makes Bhatbhateni a one-stop shopping destination.
The THREE competitors that this institution needs
to really consider:

• Bhatbhateni have to be weary and conscious of their competitors

elsewise there is a chance of getting their market stolen.
• The three competitors that bhatbhateni super market should consider
are:
• Big mart (Biggest competitor)
• Salesberry(Provides discounts and offers)
• Saleways ( Oldest supermarket )
Environment Analysis
• How do you project the impact of overall macro environment on
overall industry that this institution specializes in? Outline the key
aspects.
• What should be done to overcome the above stated problems?
• Fill up the following figure (OTCP Analysis)
How do you project the impact of overall
macro environment on overall industry that
this institution specializes in? Outline the key
aspects.
Impact of political legal environment Impact of socio-cultural Environment
• Strikes • Increase in purchasing power
• Less investors • Demonstration effect
• Pressure from trade Unions • Attitude of the society
• Shareholders and their demands

Impact of Technological Environment Impact of Economic Environment

• Common grounds • More capital required
• Competitive • Change in Inflation rate
• Security issues • Increase in Tax

Impact of global Environment Impact of Other External Factors

• Decrease in production • Customers’ Taste and Trends
• Chemicals • Customers’ Lifestyle
• Waste • Imitators
15. What should be done to overcome the above stated problems?
Responding to Political Legal Environment Responding to Socio-cultural Environment
 Proactively try to identify and respond to issues  Attractive portrayal
 Be ready to deal with the local and international  Participation in cultural events
outcomes of politics  Collaboration with other organizations
 Being flexible with the new laws and regulations

Responding to Technological Environment Responding to Economic Environment

 Enhance website and application  Stay updated with ongoing economic fluctuations
 Hire security expert  Signing long term contracts
 Prioritize digital marketing  Economies of scale - greater efficiency and lower prices

Responding to Global Environment Responding to Other External Factors

 Biodegradable packaging  Research and Development
 Encourage recycling  Innovative tactics
 Use of environment friendly bags instead of plastic  Target market
bags
OTCP Analysis
Market Opportunities Prevailing Threats

 E-commerce  High competition

 Expansion  New entrants
 Branding  Substitute goods
 Organic products  Political instability
 Increase in operational expenses

Strategic Constraints Institutional Problems

 Lack of credit facility  Lack of advertisement and promotion

 Lack of after sale service  High employee turnover rate
 No wholesale unit  Queue mismanagement
 Unsuitable for all products  Inventory mismanagement
2.2. Internal Analysis
• Examines Bhatbhateni supermarket internal environment in order to assess its resources, competencies,
and competitive advantages.
• Performing an internal analysis allows you to identify the strengths and weaknesses of the organization.

2.2.1. Performance Analysis

• Has done an excellent job in providing services to the customers since their establishment in 1984.
• Because of their exceptional performance they were able to become Nepal's largest retail chain.
• In 2016, Bhat-Bhateni total revenue was NRS 9 billion even though sales fell by 10%.
• In 2018, in Biratnagar, it has made record of Rs. 100 million in 10 days, selling Rs 1million per day
which shows that, their performance are going outstanding.
• Although they are standing excellent in their services, they should focus more on the technological
advancement.
• Within just 12 years of time, it has established 15 outlets, which even their competitors have not
dreamed off.
2.2.2. Analysis of Strategic Options

• Bhatbhateni offers wide variety of product of the highest quality, for

the best prices.
• It provides services like parking, bank and ATM services to its
customers
• It is also associated with few restaurant like KKFC, Pepe pizza etc.
• Now bhatbhateni is trying to focus on on providing online services as
well as delivery services to their customer.
 BCG Matrix of BhatBhateni
Rising Stars Question Marks
Service/s Service/s
•Easy and convenient shopping •Many branches
•clothing department •Online services
  Strategic Options
Strategic Options •Convenient location
•All in one stop. •hiring and developing online platforms and services.
•offer current market trending clothing

Cash Cows Hungry Dogs

Service/s Service/s
•Varieties of product •Furniture department
•Grocery department
 
Strategic Options
Strategic Options •Focusing on marketing furniture department 
•Continuing to grow and add more products.  
•Offer more grocery product range  
 
 
 
 
SWOT Analysis

STRENGTH: WEEKNESSES:

1. Convenience 1. Mismanagement of Inventory

2. Variety of Products 2. Employee Turnover
3. Outlets 3. Queue management

OPPORTUNITIES: THREAT:

1. Partnership with Restaurant Outlets 1. Increase Competition

2. Improvement of Online Services 2. Increase in Operational Expenses
3. Seasonal Deals 3. Political Intervention
Institution could be able to cash on its strengths,
and materialize the opportunities so as to
minimize the risk of weaknesses and threats.

S vs. W Strategy O vs. T Strategy SO vs. W Strategy SO vs. T Strategy

Convenience E-commerce Variety of Products Outlets

Vs Vs Vs Vs
Mismanagement Cyber Security Limited flexibility in Increase in
of inventories prices Operational Expenses
Strategic Options
The THREE aspects each against the given strategic alternatives so as to achieve institutional
success.

Strategic Strategic Problems Potential Solutions

Alternatives
   Competition  Understanding the customer.
Survival  Political Intervention.  Good prediction and adaptation of every changing
 Strict government rules and regulations. political environment.
     Innovative practice while delivering services.
 

   High rate of employee turnover.  Target tourist shoppers (adventure products).

Sustain  Poor inventory management.  Decentralization and Reinforcement.
 High usage of plastic based products.  Use of green/environment friendly products.
  (scrapping plastic bags and introducing plastic
  deposit schemes)
 
   Lack of Unique Products.  Creating brand association.
Differentiation  Lack of ordering ease and delivery service.  Create proper distribution channels.
 Lack of after sale services or improper after  Make policies for after sale services.
  sale services.
 
 Cont.….
   Lack of services in rural areas.  Electronic Marketing.
Growth  Lack of services through online platform.  Opening small outlets for rural areas.
 Stolen the product.  Stacking up inventories.
 
   Decreasing rate of market share.  Partnership with restaurant outlets.
Diversification  Lack of conglomerate diversification.  Partnership with multiplex.
 Highly relies on wholesalers.  Coordinate directly with farmers.

   Fewer choices of designer goods.  Offering wide range of customizable products.

Business offering  Higher cost for customizing.  Trainings for both national and international
 Untrained employees for customization designer products.
Customization  Corporate with other companies for aftermarket
customizing services.

   Underqualified Management.  Team-up and collaborate with experienced retail

Globalization  Insufficient experience in international companies.
market.  Proving payment systems through Visa and Master
   Lack of experience in the international retail cards.
market.  Train employees and management to tackle the
difficulties while operating globally.
SECTION III: ANALYSIS OF STRATEGIC
ALTERNATIVES

3.2. Prioritizing the Options

Top Five Strategic Choices Priority Reasons

1. Survival Higher competition due to existing and new

entrants in various platforms

2. Differentiation Lacks unique products and advanced online

services

3. Sustain High rate of employee turnover and lacks proper

training for employees

4. Growth Overlooks the opportunities attained from

developing rural areas

5. Globalization No exposer to international retail industry

3.3. General Strategic Planning

Top Five Strategic Choices Short-Term Plans Long-Term Plans

1. Growth Promotional campaigns Support local development

2. Business offering Increase sales and revenue Improve brand recognition

customization

3. Differentiation Providing discount New stores in Kathmandu and

across the country

4. Diversification Increase market share Largest corporate taxpayer in the

country

5. Sustainability Technological advancement Employee retention

6. Survival Suffocate the competition Generate employment

SECTION IV: BUSINESS/SERVICE PLANNING,
DEVELOPMENT AND IMPLEMENTATION

4. Product/Service Planning and Development

Indicators Intended Action Programs

P1: Product Wide variety of products and items
P2: Price High quality at a very fair price
P3: Place Delivery of goods to the right location through effective distribution
system

P4: Promotion Promotion through events, exhibitions, discounts & demonstrations

P5: People Staff are consistent merchandising and customer service is assured

P6: Process Customer satisfaction through rapid billing services and quick product
acquisition both online & offline

P7: Physical Environment Attractive infrastructure, lightings and ambience