College of Business and Economics

School of Commerce undergraduate

Program Retails Managementgroup
assignment
Section 1
Group members id no
1.Etsehiwot yohannes UGR/1156/15
2, Eleni fassika UGR/9710/15
3,yeabsira Demissie UGR/6853/15
4, Rayhan Nesredin UGR/9991/15
5,Sheyma abdulaziz UGR/4813/15
6,Mary Demssie UGR/7711/15

Submitted to: Dr. Getie A.

Submission date:may 30
Contents

1introduction
2. Opportunities and challenges of Retail Operation;
3 Competitive Behavior of Retail Institutions surrounding the retail firm;
4. Merchandise Management;
5. Retail Pricing;
6. Retail Communication & Promotion;
7. Retail Distribution & Supply Chain Management;
7. Methods and Approaches to Retail Strategy and Planning;
9. Retail Location Strategies & Decisions;
10. The Application of IT to retail Marketing;
11. Managing a Retail Business and Human Resource Management.
12. Customer Relationship Management
13,Retail Risk Management
14 Consumer Behavior Analysis
15,Retail Innovation and Technology Adoption
16 conclusion
Introduction:

This project entitled "An Assessment of Retail Management

Challenges, Opportunities, and Practices of Yega Supermarket
Operating in Addis Ababa" aims to provide a comprehensive
analysis of the retail operations of Yega Supermarket, with a
specific focus on its vegetable business and supply chain
management.

Yega Supermarket is a prominent retail firm operating in Addis

Ababa, Ethiopia, specializing in the sale of vegetables. The
supermarket has gained a reputation for providing high-quality
and fresh produce to its customers. One unique aspect of Yega
Supermarket's retail operations is its integration of a farm in
Koka, which serves as a source of vegetables for the
supermarket.

The project will explore the various opportunities and

challenges faced by Yega Supermarket in its retail operations. It
will examine the opportunities presented by the growing
demand for fresh and locally sourced vegetables in Addis
Ababa. Additionally, it will address the challenges associated
with maintaining a consistent supply of high-quality vegetables
throughout the year.

Competitive behavior analysis will also be conducted to

understand the dynamics of the retail institutions surrounding
Yega Supermarket. This analysis will shed light on the strategies
adopted by competitors and their impact on Yega
Supermarket's market position.

Merchandise management, retail pricing, communication, and

promotion strategies will be evaluated to understand how Yega
Supermarket effectively positions itself in the market and
attracts customers. The project will assess the supermarket's
approach to merchandise selection, pricing strategies that
balance profitability and customer value, as well as
communication and promotion techniques to create brand
awareness and customer loyalty.

Furthermore, the project will delve into the distribution and

supply chain management practices of Yega Supermarket. The
integration of its own farm in Koka raises questions about how
the supermarket manages its supply chain to ensure a steady
flow of fresh vegetables to its stores. The project will analyze
the logistical processes, inventory management, and
relationships with suppliers to ensure efficient and effective
supply chain management.

The application of information technology (IT) to retail

marketing will also be explored. The project will investigate
how Yega Supermarket utilizes IT tools and systems to enhance
its marketing efforts, including customer relationship
management, data analytics, and online platforms.

Finally, the project will examine the human resource

management practices of Yega Supermarket. It will assess how
the supermarket recruits, trains, motivates, and retains its
employees to ensure optimal performance and customer
satisfaction.

Through this project, we aim to gain insights into the

challenges, opportunities, and practices of Yega Supermarket in
managing its vegetable retail business in Addis Ababa. The
findings of this study will not only contribute to the
understanding of retail management in the context of Addis
Ababa but also provide valuable recommendations for Yega
Supermarket to enhance its operations and maintain a
competitive edge in the market.

One institution that can be chosen for this project is a popular

supermarket chain operating in Addis Ababa, Ethiopia. Its called "Yegna
Supermarket." where by we have attached a picture from outside
perspective of the supermarket our answers will follow.
1. Opportunities and challenges of Retail Operation:

> Opportunities for Yega Supermarket

Yega Supermarket has several opportunities that can contribute to its
success:

- Advantage of having their own farm: By having their own farm, Yega
Supermarket can ensure a steady supply of fresh vegetables, which can
give them a competitive edge in the market.

- Location targeting low-income population: Yega Supermarket's

location in an area with a low-income population provides an opportunity
to attract a larger customer base. This segment of the population may
prioritize affordability and value, which aligns with Yega Supermarket's
focus on providing fresh vegetables at reasonable prices.

- Growing population and changing consumer preferences: With the

increasing population in Addis Ababa, there is a growing demand for
fresh, locally sourced vegetables. Yega Supermarket can capitalize on
this trend by offering a wide variety of fresh vegetables to meet the
changing consumer preferences.

>Challenges Faced by Yega Supermarket

Yega Supermarket also faces certain challenges that need to be
addressed:

- Perishability of vegetables: Since vegetables are perishable, there is a

risk of potential losses if they are not sold in a timely manner. Yega
Supermarket needs to implement effective inventory management and
marketing strategies to minimize wastage and maximize sales.

- Intense competition from similar firms: Yega Supermarket faces

competition from other similar firms, such as Shoa Supermarket. To stay
competitive, Yega Supermarket needs to differentiate itself by offering
unique products, competitive pricing, and exceptional customer service.

- Limited infrastructure: Limited infrastructure can impact Yega

Supermarket's operations and growth potential. It is important for the
supermarket to invest in infrastructure improvements, such as storage
facilities and transportation logistics, to ensure efficient operations and
expansion opportunities.

2. Competitive Behavior of Retail Institutions surrounding

Addis Supermarket:

Competitive Analysis of Retail Institutions Surrounding Yega

Supermarket

In the vicinity of Yega Supermarket, there are several competitive retail

institutions that have a significant impact on the firm's operations. Kera
Market, for instance, poses a competitive challenge as it offers lower
prices, necessitating Yega Supermarket to monitor and adjust its pricing
strategies on a daily basis to remain competitive. Additionally, Shoa
Supermarket presents a formidable competitive force, leveraging a robust
supply chain and effectively utilizing marketing mix elements to inform
and attract customers.

The competitive landscape in the surrounding area highlights the need for
Yega Supermarket to continually assess and adapt its pricing strategies to
remain competitive against lower-priced alternatives. Furthermore, the
strong supply chain and effective marketing strategies employed by Shoa
Supermarket emphasize the importance for Yega Supermarket to enhance
its own supply chain efficiency and develop compelling marketing
initiatives to retain existing customers and attract new ones.

This competitive behavior underscores the necessity for Yega

Supermarket to strategically position itself in the market by offering
unique value propositions, enhancing operational efficiency, and
implementing effective marketing strategies to maintain and expand its
customer base.

3. Merchandise Management:

Basically they Inventory management practices, including procurement,

storage, and replenishment.
Use Product assortment planning based on customer demand and market
trends.
As well as Vendor management and negotiations.
4. Retail Pricing:

They set their prices based on them using competitive pricing method.
Pricing strategies employed by Yegna Supermarket, including everyday
low pricing or promotional pricing Analyzing pricing elasticity and its
impact on sales.
They use Comparison with competitors' pricing strategies where They
study their prices and the quality of the products they sell and try to make
theirs cheaper even by 1 birr and that way they can get more customers.

5. Retail Communication & Promotion:

Their Evaluation of the effectiveness of various communication and

promotion methods is based on customer service they haven't made any
exclusive advertisement or promotion for their supermarket they only
have advocates who are satisfied by their work,product and service as
well as walk-by customers

6. Retail Distribution & Supply Chain Management:

their product distribution comes from their own farmland which they
don’t need a supply chain for where as for the transportation and logistics
they manage on there own and those fees are not added on the prices of
the products instead they compensate by lowering the price and taking
15% vat cause they don’t have a supplier fee they are expected to
manage with.

7. Methods and Approaches to Retail Strategy and Planning:

The retail strategy fluctuates depending up to competitors price in a sense

they do a research on those competitors price method by sending a sales
person to the door of the competitors once or twice a week also the
product and the current market system whereby Yegna supermarket uses
a short term planning depending up by the week supplied products

8. Retail Location Strategies & Decisions:

The criteria’s for the selection of the location include ;

Mexico is a wide range space where a lot of walk-by customers are
located at.
Next market competitors are nowhere to be near around Mexico.
Where as the accessibility of the product in this area is by far low
Due to the selection of this neighbourhood the volume of market Yegna
supermarket over the times is amazing that they are considering of a new
location by the profit they are making

9. The Application of IT to Retail Marketing:

They use cenit software system where they list all their supplied products
calculating their receiving where by its easy calculate their loss and profit
while receipts are taken out the system its subtracted from the receiving
that was made so then its easy to calculate the cash at last.

10. Managing a Retail Business and Human Resource Management:

Under their retail organization works 2 sales people, 2 cashiers, 1

supervisors, 1 storekeeper and 1 accountant containing the manager
overall 20 people in shifts.
The people who work in the morning shift, open at 7am and leave at 3pm
and the afternoon shift is from 3pm to 8 pm they use the prophecy that
the law requires people to work 8 hours a day.
Their sales employees get training 2 times a month or else when they are
being recruited for the job they take training before the actual work day
starts the rest teams also get’s into their positions based on their academic
level.
Employees motivation is kept by giving them a day off during the week
as well as level up of position depending up on their performances where
by relationship between the owner and the workers is very good and its
beneficial on both sides .
The team also contains labor workers which helps by labor and arraigning
of the products when moved from the transportation truck to arrange
using refrigerator for ripe fruits or vegetables as well as putting a full on
cart product outside for display cause as the manager stated ‘the eyes
enjoy it first.’

11, Customer Relationship Management

Yega supermarket manage and maintain relationships with customers by
offering personalized services, such as providing recommendations based
on customers' preferences and past purchases. They can also offer loyalty
programs

12 Retail Risk Management

Yega Supermarket can effectively manage risks by maintaining optimal

inventory levels to prevent stockouts or wastage. By staying updated on
market trends and prices, the supermarket can mitigate market volatility
risks. Additionally, strict compliance with food safety regulations is
imperative to ensure the quality and safety of the vegetables offered to
customers.

This approach to risk management will enable Yega Supermarket to

maintain a consistent supply of fresh vegetables, respond to market
fluctuations, and uphold the highest standards of food safety and quality.

13 Consumer Behavior Analysis

Yega Supermarket can enhance its understanding of consumer behavior
by systematically collecting and analyzing data on customer preferences,
purchasing patterns, and feedback. This valuable information can then be
utilized to tailor the supermarket's vegetable assortment, pricing
strategies, and marketing campaigns to better align with customer needs
and expectations.

By implementing a structured approach to consumer behavior analysis,

Yega Supermarket can gain insights that will enable them to make
informed decisions regarding product offerings, pricing, and promotional
activities, ultimately enhancing customer satisfaction and loyalty.

14,Retail Innovation and Technology Adoption

Yega Supermarket can benefit from leveraging technology to enhance the

customer experience and improve operational efficiency. Implementing
an online ordering system or a mobile app for customers to conveniently
purchase vegetables can provide added convenience and accessibility,
catering to the needs of modern consumers who value convenience and
time-saving solutions.
Additionally, utilizing data analytics can help the supermarket understand
customer preferences more comprehensively, enabling them to optimize
their product assortment based on real-time insights. This data-driven
approach can lead to better inventory management, improved stock
rotation, and the ability to offer personalized recommendations to
customers, ultimately enhancing customer satisfaction and loyalty.

Overall, embracing retail innovation and technology adoption can

position Yega Supermarket as a forward-thinking and customer-centric
retailer, driving growth and success in the competitive retail landscape.

In conclusion By conducting a comprehensive analysis of Yegna

Supermarket's retail management challenges, opportunities, and practices
in these areas, the project has provided valuable insights into the
dynamics of the retail industry in Addis Ababa. we thank the generous
and open minded manager of Yegna supermarket for all the great and
well described information we received we are delighted to present our
project as a team this way.