13-6

 Speciality Store: Levis

 Department Store: AL Fatah
 Supermarket: Metro (cash and carry)
Levis:
 Market Segmentation:
levis targets upper class. Levis has products for both male and females. But their products are
only for adults in Pakistan. Levis is world- wide recognized brand when it comes to jeans.
 Positioning strategy:
they have positioned them by providing rough and though jeans that provides the best fit.
levis is famous for its international standards and designs. When it comes to denim they
provide best designs and quality. Over the years they have built their name successfully
whenever someone says denim first name comes to the mind is Levis. It changes its designs
with time and demand. They provide their customers with top trends.
 Product:
Levis is famous for its high quality jeans. Levis offers range of western products for
men and women. They have trendy jeans, jackets, shirts, shoes and accessories (hats
and belts). They bring innovation in their clothes like they introduced a jeans called
cool tech, it is designed to keep customers cool on hot days.
 Price:
Levis is a brand for upper class, so their prices are higher. As compare to other local
brands levis prices are higher.
 Place:
Levis has very few standalone stores. They mostly have mall outlets. They don’t
deliver directly but they collaborate with other sellers like; AK galleria who delivers
Levis products.
 Promotion:
Levis promotes itself through social media advertisement. It offers sales on
different occasions to attract customers. By collaborating with other sellers they
offer discount as well.
AL Fatah:
 Market Segmentation:
It has wide range of products from grocery to clothing. Al Fatah
targets upper middle class to elite class. It has demographic approach. It has products for
all age groups and gender. It also has geographic approach.
 Positioning Strategy:
AL Fatah calls itself “Your one stop shop”. They have products of both national and
international brands. They only sell recognized brands. customers can find wide
ranges of brands for single product.
 Product:
 AL Fatah has vast range of products. It sells grocery, clothing, make-up and a lot more. It
has products of most brands. In every department customer can find products of many
different brands.
 Price:
It targets upper middle class and above classes so its prices are higher as compare to other
retailers. The price of local products maybe same as other retailers but price of imported
products varies.
 Place:
AL Fatah use both physical and E- commerce means. It has stores in different areas and
cities.
 Promotion:
AL Fatah use high- quality products to promote itself. They provide their best customer
service and visual representation. AL Fatah’s aim is to deliver best to their customer. They
offer different sales and promotions on products.
Metro (cash and carry):
 Market segmentation:
Metro use demographic and geographic segmentation. As it has wide range of products from
various brands and of various prices. Customer can pick according to their income rate. It
mostly targets middle class, upper- middle class and bulk buyers. It has all products from
food to house hold to clothing and many more. It has products for people of all age and
gender. Metro is the subsidiary of a German brand. In Pakistan it operates in different areas
and cities.
 Positioning strategy:
Metro is a single stop store. It offers wide range of products. It has many brands including
national and international of a single product. It also sells small brands which most people
does not recognize. The price and quality vary from brand to brand.
 Product:
metro offers wide range of products from grocery to household to stationary to utensils to
electronics to furniture and a lot more. They provide fresh dairy products, vegetables and
fruits. They have most of the brands under single roof.
 Price:
Prices are less than market as customers are buying in bulk so it offers discount. Local goods
have low prices. Imported goods have higher prices due to international standards.
 Place:
They are in located in less rush areas not in the middle of city. metro also has both online
and physical store. It has 9 stores across Pakistan. it only delivers in cities which has its
stores.
 Promotion:
metro offers a lot of deals to attract customers. They also give their regular customers metro
cards. With metro cards customers can get more discount on some products and card can be
used instead of paying by cash. They offer many sales and promotions on products.
13-7
For any business planning is very important, especially for start- up a lot of facts are need to
be consider. To have a successful business one should know; who to target? What to have in
store? What should be the price range? How to attract customers? How to differentiate it
from the competitors? Most importantly location should be choosing wisely.
Grocery Retail store
This store will be located in a small city where people have to go to different shops to get
different products like; for dairy products they have to go to bakeries for vegetables they need
to go to vegetable market and for spices and stuff customers have to go to other shops. So
considering it I want to provide customers with single stop shop where they can find
everything. Considering small town my targeted audience would be lower class to upper-
middle class. Customers health is most important. The store will have fresh vegetables and
dairy products. Store will provide organic and good quality products. It’s store top priority to
provide friendly environment. As people may not be used to be having a single store to shop
grocery the staff will be there to guide customers so they won’t be loss. Since the targeted
market is lower to upper middle class the products will be available from low to high price.
The products will be available in wide range of prices. By providing all grocery products
under single roof it will save customers time of going to different stores. It will also reduce
their travelling cost. Since it is something new in the pamphlets and word of mouth would be
use to promote it. There is no other store like this so it is significant. The store does not have
any competition. There are only small retailers which are no big competition. The store will
be located in main bazaar.
13-11
Businesses use different tactics to avoid tax or to pay less tax. Businesses shifts their profits
to hide them. So they can pay less tax. They pay less tax to save money. Global businesses
use such strategies to earn more profit. As article states “its avoidance not envision” which is
absolutely legal. So they know they can get away with it until and unless someone raise their
voice against it as it happened in 2013 in U.K
When people start hearing things like this regarding brands it effects them. The effect is not
only on customers but on brands as well. It effects brands reputation. When it comes to
customers it effects them emotionally. As their trust is breached. Brands like Starbucks,
google and amazon are part of people’s daily life. They are emotionally involved with it
either its buying a morning cup of a coffee from Starbucks or searching something on google.
When they found out how things they use daily, effects their country they are hurt. As their
trust is breached. As for brands customer loyalty is important and for customer’s brand
loyalty is important as well. When issues like tax avoidance happens it effects loyalty from
both side. Customers stop buying products from these brands and in this way the sales
decrease.
Without customer there is no brand. Brands earn profits because they are able to satisfy
customers. So, customer trust, confidence and loyalty should be priority in order to gain
financial benefits. Financial benefits are not greater than customer loyalty. Because if there
won’t be loyalty there won’t be any customer and brand won’t survive.
13-12
For big retailers like Amazon it will be easy to adjust, as they have money to hire people who
can help them to adjust with these laws. However, for small businesses the scenario will be
different. They don’t have enough resources so it will difficult for them to understand and
adjust. They would have to keep the record. It will affect their time. Small business will have
to manage complex transactions. Online retailers would have to collect tax from states where
they don’t have presence. Customers purchase online to avoid sales tax but after this act
customer have to pay sales tax on online shopping as well. The result will be online
businesses losing customers. The sales tax regulations are difficult to understand. So the
small businesses will have to monitor it carefully.
13-13
Average stock refers to the average quantity of stock available from one period to another
period of time.
Average Stock= (opening stock+ closing stock)/ 2
Average Stock= (24000+36000)/ 2
Average Stock = $ 30000
13-14
Stock turnover ratio tells how many times a business has sell or replaced its goods in a year.

Stock turnover ratio= cost of goods sold/ Average inventory

Stock turnover ratio= 210,000/ 30,000
Stock turnover ratio= 7
The higher ratio is good as it indicates that sales and restock rate is balance. The ratio is 7
which is more than 4. So it is good ratio. It shows that business restock the products after
every one or two months.
13-15
Free shipping program is very smart move made by Kmart. It differentiates Kmart from
other retailers. Going to shop requires time. The free shipping offers saves the time and
money of customers. It is also obliging towards customers. As customers are getting the
product delivered to their homes without any delivery charges. Which means they only have
to pay the price of product. Instead if customer has gone to a store he would have to pay the
cost of product and the travelling cost. It saves customer time which he would has spent on
travelling to the store and searching for the product. Kmart delivering products to the
consumers’ homes is for sure the advantage for consumers. They may have gained more
customer loyalty. By offering so many advantages to customers Kmart has left its competitors
behind it.
13-16
Instead of using routine phrases like “we sell this” or “we have it” Kmart went for
innovation. “Ship my pants” the phrase is unique itself it caught many eyes. It targets people
of all ages (youngsters, tech savvy, children, middle age). It targets lower and middle class.
Very smartly Kmart deliver their message through this campaign. The ad shows that Kmart
have everything you need. Not only that for customers ease they deliver it to their homes as
well. Plus, free shipping no delivery charges. The name of the campaign out stands. The
name and the free shipping of any product at customer’ doorstep makes them significant.
13-17
The campaign may have been different from any regular campaigns but it was controversial.
As campaign is called “ship my pants” it has double meanings. It has both positive and
negative effect. Some people took the phrase positively and made fun of it. Others took it
negatively and consider it gross. They thought it was disrespectful. Kmart gained a lot of
attention through this campaign. They were successful to deliver their message through
advertisement that they deliver everything size does not matter and they deliver it for free.
Mostly people approached it in a positive way. This helped Kmart gaining attention and let
people know what Kmart has to offer.