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Approbation and practical use of the offered methods in Open Company "Euroauction" company

Practical realisation offered by the author in the given work of methods was conducted in the retail commercial network offering to realisation in the market of of Podolsk a foodstuff in wide range. The given commercial network has been chosen as typical trading structure proceeding from following preconditions:

1. In branch it is obviously traced tenedentsija to integration - merges and absorption of single shops occur constantly (it is in more details considered in item 1.3); the network trading structure is subject to consideration;

2. Realisation of a foodstuff makes the most significant part in trading sphere; consumers spend in grocery retail sector of an order of 37 % of an aggregate income.

Work in the given branch with the given products most hardly depends on long-term, mutually advantageous relations with end users since unique grocery offers appear in the market extremely seldom and. In connection with very low source barriers at once are copied, that leads to the most severe competitiveness in the given branch which is caused by realisation of the same or interchangeable products.

Open Company "Euroauction" represents the trade enterprise which principal view of activity is retail a food produce market through a network of shops belonging to it. All 10 shops of a network are concentrated in Podolsk and Podolsk area. The company acts in the market since 1994.

Strategic items of the company in branch are great enough, the market share in the given region makes 37 %. Long time the company adhered to growth strategy in which frameworks carried out horizontal integration (by acquisition of the new trading areas and re-planning old). Thus the strategic climate favoured to similar development.

However recently the strategic environment began to vary: growth rates of branch are slowed down, in strategic space have appeared strong (potentially stronger, than Open Company "Euroauction") competitors, is two Moscow
Networks - "Diksi" (Open Company Discount the Center) and "Oat-flakes". Occurrence of two new large competitors has caused a competitiveness aggravation.

Channels of distribution for the investigated enterprise are standard enough for overwhelming majority of products from range, the manufacturer - the wholesaler - retail trade enterprise though there are the features imposed by affinity of of Moscow. These features carry as more positively, and negative character.

It is necessary to carry to positive features:

1. Affinity to the largest manufacturers;

2. Possibility of an exception from tovaroprovodjashchej intermediate link networks - the wholesaler;

3. Possibility of a choice of the scheme of delivery - delivery or shipment at own expense;

4. The high level srednedushevogo suffices the population income, caused by that the significant part of the population works in to Moscow;

It is possible to carry the following to negative features:

1. Weak possibility of influence on distribution of a consumer stream in a current of the working day, it is caused by that the basic stream of consumers in the working days begins after 20 hours;

2. Possibility of acquisition of a necessary set of products in shops of of Moscow;

3. Absence of barriers to occurrence of the large retail operators working in the market of of Moscow, is primary stronger, than the local operator;

4. Problems with staff - the seller's price of competent workers caused by affinity of the wide labour market of of Moscow.

Naturally, the basic, most significant features directly influencing activity of investigated trade enterprise are transferred only.

It is represented expedient to tell some words about the new competitors of the company who have appeared in the market rather recently.

Commercial network "Дикси" - in the market of Podolsk has appeared in 2003, for today 2 large shops, a format of shops - diskauntery are opened.

Commercial network "Oat-flakes" - in the market of Podolsk has appeared in 2004, for today 2 shops, a format of shops - supermarkets also are opened.

The competition aggravation in the local market has required of the company of qualitative change of strategy of growth by transition to more progressive and resursosberegajushchuju strategy of quality management of trade enterprise with the purposes of deduction of an existing market power and the further sustainable development expressed in growth of a sales volume and operative profit.

Acting on a method offered in the second chapter of the present work, the expert of department of marketing has begun work on working out and introduction of new strategy of development of the enterprise. The evaluation stage of competitiveness of trade enterprise on the method in detail described in the second chapter of given work became the first stage of the given work.

Stage 1. Research of consumers of company "Euroauction".

Before research following problems were put:

• to define requirements and inquiries of end users;

• to define the list of characteristics of activity of trade enterprise, the most important for consumers of Open Company "Euroauction" and considered at a shop choice;

• to define prioritetnost the given characteristics rather one another;

• to define degree of satisfaction of end users the existing offer of the company and to compare it to the offer of competitors;

As a method research has been chosen realisation of interview to constant consumers of commercial network. The questionnaires containing both opened, and the closed questions have been developed. The given questionnaires are presented in the Appendix

7.

Then the working day, which duration makes 11 hours (from 9.00 till 20.00 o'clock daily), has been broken for 2 hour periods, in interrogation 1000 visitors participated, but only 625 questionnaires have been accepted to the further work since only these visitors could be carried to number of constant clients.

On the basis of the data stated in the appendix, from the point of view of the consumer the investigated trade enterprise can be described following positive characteristics:

• the size, the form and proportions of a trading hall are chosen to supply the best conditions for the organisation of trade and service of consumers;

• wide range - all categories of a foodstuff are presented, on separate commodity sections the range width is combined with depth - to these

To categories sausage items, meat half-finished products and dairy production concern;;

• work on issue of a foodstuff - meat half-finished products under own trade mark is conducted;

• pricing policy, information, the trade mark it is co-ordinated by management of the central office;

• attractive image of trade enterprise (modern furnish of a facade of a building, firm clothes of sellers, etc.) is generated;

• are studied for years of work of a zone of service, population group, the level of their incomes applied in accounts of prospective volumes of realisation as the factor of forecasting and planning;

• a convenient site - shops are possessed on the areas of the former shops, trade places historically developed, nearby ' there are public transport stops;

• logistics possibilities - all range of the products having long retention periods are rationally defined, passes through the central warehouse, all products having short times of storage are delivered by the manufacturer directly in shops.

At the same time, in trade enterprise activity a number of negative tendencies which consist in the following is noted:

• conditions for speed, adaptability to manufacture, comfort of service through self-service introduction are not created, the network works till now on prilavochnomu to a trade method;

• information technologies are not applied, that. It is caused by absence of settlement terminals, it is caused by absence of self-service;

• means for service, logistics and communicative communication are allocated with the central office, the store manager has no right them independently to dispose, that creates complexities with duly reaction to claims of buyers;

• acceptance of tactical decisions (the general for all network) starting with delay for a week that is caused by periodicity planerok the sales manager with directors of shops of a network;

• in connection with absence of experts in retail trade which would pass training in market conditions, very weak knowledge of trading staff of principles and methods merchendajzinga, bases of the commodity neighbourhood and methods of stimulation of sales;

• in no way are not allocated prikassovye zones, hot-zone shop are not allocated and are not equipped;

• there is no personification of regular customers, even that which single purchase makes more than 1000 rbl.;

• the insignificant quantity of additional services is offered;

• there is no general strategy in range formation since different employees are responsible for the goods delivered directly in shop and on a distribution centre;

• absence in shops of necessary range of meat half-finished products (since the network has own production and manufactures meat half-finished products under own trade mark, meat half-finished products of other manufacturers are not introduced to a commodity matrix)

The basic competitor of the investigated enterprise - - on the basis of questioning data following positive characteristics have a network "Diksi":

• the size, the form and proportions of a trading hall are chosen to supply the best conditions for the organisation of trade and service of consumers;

• shops work on a self-service method that creates additional stimulus for purchase;

• pricing policy, information, the trade mark it is co-ordinated by management of the central office;

• attractive image of trade enterprise (modern furnish of a facade of a building, firm clothes of sellers, etc.) is generated;

• information technologies are actively applied, that is caused by availability of settlement terminals;

• a convenient site - shops are possessed near to commercial network "Euroauction" shops that gives the chance to buyers to acquire necessary products under is minimum possible price from shops - competitors, i.e. to draw a part of consumers on themselves;

• logistics possibilities - all range of the products having long retention periods are rationally defined, passes through the central warehouse, all products having short times of storage are delivered by the manufacturer directly in shops, but the order for all categories of production takes places through the central department of purchases.

At the same time, in trade enterprise activity - the competitor a number of negative tendencies which consist in the following is noted:

• very narrow, not the deep range, is not present choice possibility, a foodstuff is realised only what do not require the realisation and storage particular covenants, separate groups of the goods are not presented in general;

• means for service, logistics and communicative communication are allocated with the central office, the store manager has no right them independently to dispose, that creates complexities with duly reaction to claims of buyers;

• acceptance - of tactical decisions (the general for all network) all decisions including about volumes of purchases starting the expert of department of purchases of the central office starting the central office;

• in connection with absence of experts in retail trade which would pass training in market conditions, very weak knowledge of trading staff of principles and methods merchendajzinga, bases of the commodity neighbourhood and methods of stimulation of sales;

• there is no personification of regular customers, even that which single purchase makes more than 1000 rbl.;

• it is not offered any additional services;

• at the general external appeal the questioned marked a condition of insufficient cleanliness and some "zahlamlennosti", in communication, with what significant enough part of buyers (an order of 18 % from the general number questioned) has ceased to make purchases in the given network because of fear to catch infectious diseases;

• in commercial network the cards granting the right to their owner on the discount in 3 % from an acquisition amount are realised; card cost - 200 rbl.; simply to return the expended money, it is necessary to acquire products for the sum of an order 7000 rbl., i.e. the given offer can be interesting only to the steady customers making purchases on a family from 4 persons since the range is very limited and there is no possibility to acquire a complete grocery basket.

Second potentially strong competitor of the investigated enterprise - - on the basis of questioning data following positive characteristics have a network "Oat-flakes":

• shops work on a self-service method that creates additional stimulus for purchase;

• range not wide, but those commodity sections which are presented, differ sufficient depth;

• pricing policy, information, the trade mark it is co-ordinated by management of the central office;

• attractive image of trade enterprise (modern furnish of a facade of a building, firm clothes of sellers, etc.) is generated;

• information technologies are actively applied, that is caused by availability of settlement terminals;

• logistics possibilities - all range of the products having long retention periods are rationally defined, passes through the central warehouse, all products having short times of storage are delivered by the manufacturer directly in shops, but the order for all categories of production takes places through the central department of purchases;

• enough of the goods - novelties within those commodity sections which enters in assortimentnuju a matrix is entered;

• the shop offers enough of the additional

Services;

At the same time, in trade enterprise activity - the competitor a number of negative tendencies which consist in the following is noted:

• the size, the form and proportions of a trading hall are insufficient for maintenance the best conditions for the organisation of trade and service of consumers;

• very narrow range, is not present possibility of acquisition complete of "a grocery portfolio, separate groups of the goods are not presented in general;

• the site is unsuccessful - shops are possessed in sleeping areas, the basic inflow of buyers to the days off to which there is a competitiveness between the open markets and shops of the given network;

• means for service, logistics and communicative communication are allocated with the central office, the store manager has no right them independently to dispose, that creates complexities with duly reaction to claims of buyers;

• acceptance of tactical decisions (the general for all network) all decisions including about volumes of purchases starting the expert of department of purchases of the central office starting the central office;

• in connection with absence of experts in retail trade which would pass training in market conditions, very weak knowledge of trading staff of principles and methods merchendajzinga, bases of the commodity neighbourhood and methods of stimulation of sales;

• there is no personification of regular customers, even that which single purchase makes more than 1000 rbl.;

• in commercial network the discount cards granting the right to their owner on the discount in 2 % from the sum of following purchases, under condition of the first purchase for the sum more than 500 rbl. are granted

All networks use one set of excitants and methods - network liflet in which the goods realised during the currency of data lifleta on specific costs take places. In a trading hall the given goods are allocated with the yellow pricetag. Cost of sharing in data liflete from 100$ in "Euroauction" to 300$ in "Diksi".

For additional payment it is possible to place production on an additional point of sale, to lay out on pallete or to place POSM.

Data, reception at processing of questionnaires, are resulted in table 7.

Table 7 - the Data received at processing of questionnaires of target consumers.

_________________________________________

Competitiveness elements

Is b
Qualities of the seller (professional and personal) 185 0.07 625 4.23
Technology of sale 321 0.06 625 8.56
Character of contact 211 0.08 625 4.22
Stock line 185 0.11 625 2.69
Quality of the goods 151 0.13. 625 1.86
The price 163 0.12 625 2.17
Culture of service 225 0.11 625 3.27
Additional services 247 0.07 625 5.65
The trading information 344 0.04 625 13.76
The trading equipment 321 0.07 625 7.34
External and internal interior 304 0.06 625 8.11
Site 279 0.08 625 5.58
IN TOTAL 1.00

The note: the score was defined, proceeding from the estimations placed by clients prioritetnosti this or that indicator (the it is less, the more important)

On the basis of all data set forth above it is possible to construct profiles of each competitor, drawing 29.

The name

Indicator

Estimations in points
1 2 3 4 5 1
Qualities

The seller

The low

Level

3 4 1 High 1

Level

Technology

Sales

Not

Corresponds

> / Completely

Corresponds

Character

Contact

(Dialogue)

Aggression The complete

vzaimoponimani

e

Range

The goods

Very narrow Very wide
Quality

The goods

The low L Very wide
Culture

Service

The low / The high
The additional

Services

The list very narrow < The list very wide
The trading

The information

Practically

No

The most complete
The trading

The equipment

Requires

Replacements

Highly

The technological

External and

The internal

Shape

Absolutely

neprezentabel

nyj

Very much

Favorable '

The price The high The low
Place

Arrangements

Absolutely

The inconvenient

Very convenient

1 - the reference enterprise

2 - the enterprise - the competitor

3 - the investigated enterprise

Drawing 29 - Profiles of competitor firms of retail trade.

From the table analysis it is possible to draw a conclusion that the most priority for consumers are following indicators: quality of the realised goods, the price, range, the fourth factor io importance the majority of consumers named culture of the service, factors - character of contact and quality of the seller stand following factors on the importance approximately identical on the importance. It testifies that consumers consider not only domination

The prices or qualities, but lean in the judgements against the relation the price/quality, besides for our target audience indicators of width (depth) of range and both professional, and personal qualities of the seller are important enough.

And the indicator of qualities of the seller is practically at identical level with the price and quality actually the goods. Apparently from the table the last places have taken three indicators which are not important for a choice of our target consumers: technology of sale, the trading equipment and the trading information. In this case practically from 90 % reliance it is possible to assume a portrait of our target consumer: he/she is the person of middle age who is well familiar with system prilavochnoj trade, therefore for it not essentially what method of trade will be in its shop - prilavochnyj or with open access; same concerns also the shop equipment; besides production estimation is made according to a parity the price/quality that means wide assortimentnogo a number with an optimum parity. It once again confirms that fact retail trade from the category of process of realisation of production has passed in process of rendering of variety of additional services to the consumer. Especially important that the given table contains not only the list of the major characteristics influencing competitiveness, but also will define their importance for the consumer otnoyoitelno one another.

On the basis of these given by a rationing method have been received weight of these indicators. Thus for avoidance of washing out of action of the most important factors of competitiveness, in the further accounts six most significant indicators will be considered only.

The received results combined with an estimation of activity of the company and its competitors on each of allocated directions (on ten-mark shkape), are presented in table 8.

It is possible to consider total of activity of the company as an indicator of level of competitiveness as a first approximation.

More exact account of a rate of competitiveness according to the offered method will be resulted further.

і

Table 8 - the Basic results of research of consumers.

Indicator Weight Average estimations of competitors and the investigated company consumers, a point from 10
Diksi Oat-flakes The euroauction
Quality of the goods 0,21 6 7 9
Price level 0,19 9 8 7
Goods range 0,17 6 7 9
Culture of service 0,17 6 7 8
Character of contact 0,13 9 9 7
Sites 0,13 7 8 7
TOTAL 1,00 7,17 7,66 7,83

Stage 2. Research of structure of competitors.

According to the offered method research of structure of competitors and their activity is conducted in parallel research of consumers. However the company functions in the given local market more than 10 years that allows with not to carry out research of trade enterprises about definition of the list of competitors. This list is known for a long time and is subject to revision only in case of occurrence of the new player in the market. It is connected by that till 2000 the investigated company was the unconditional leader in the given local market, covering requirements of consumers of the given local market for a foodstuff at a rate of 43 % from total amount of realisation of a city and area. As has allowed to allocate at the first stage of the basic competitors of the investigated enterprise which shops of large retail Moscow operators which expand the activity in regions concern.

Shops of the Moscow networks concern direct competitors of the investigated enterprise “Discount the centre (Diksi)” and "Oat-flakes".

Criteria on which the given retail dealers have been selected, with allowance for realisations of an estimation of level of competitiveness, the following:

1. The companies are network retail operators;

2. The range of a foodstuff offered to realisation is crossed more than on 1/3;

3. Turn-overs of the companies of competitors are comparable to a turn-over of the investigated company;

4. Offer the similar goods under the similar prices (price competition);

5. Realised production in shops is comparable on a degree of quality to production realised in the investigated company;

6. I.e. those companies which the investigated enterprise faces in struggle more often, for loyalty of end users.

Networks concern such companies “Discount the centre” (Diksi) and "Oat-flakes" only and them is decided to consider and investigate at an estimation and management of competitiveness.

Stage 3. Data collection about competitors under the revealed characteristics.

Special test purchases of the goods have been made for an estimation of quality of competitors from the range which is subject to comparison on quality and the price. The acquired goods were evaluated on positionally rather one another by a special commission of experts, the estimation was made in points on 100-balpnoj to a scale. Then on the basis of the exhibited points the summary quality performance on assortimentnym to groups, and then and on all range settled up.

Results of an estimation of quality on groups and as a whole on range are presented in table 9.

Table 9 - Results of an estimation of quality of the goods of the competing organisations.

Assortimentnaja group Weight Estimations of competitors and the company, in points
Diksi Oat-flakes The euroauction The standard
Bakery items 0,09 86 82 92 92
Delicatessen 0,30 70 76 95 95
Dairy items 0,12 72 65 88 88
Grocer's shop 0,11 83 78 91 91
Vegetables/fruit 0,08 85 87 91 91
Confectionery items 0,08 92 86 87 92
Pivobezalkogolnye ‘

Drinks

0,13 82 82 94 94
Tobacco items 0,09 86 86 87 87
TOTAL 1,0 82,00 80,25 90,63 91,25
Total

Competitiveness,

Point

90 88 99 100

The note: scales shares of sales volumes of each assortimentnoj groups on the general sales of the investigated enterprise enter.

Purchase of the goods has been made for an estimation of a price level at each of competitors on comparable items and comparison is made. Thus also the maximum threshold of price divergences for retail consumers has been defined, significance of a threshold has made 30 %.

On the basis of data about quantitative range on each commodity section of each of competitors (the half-internal cut of each of competitors, ' is made for reception of relevant data 4 times within two weeks and for settlement size the average from significances is accepted).

The obtained data are resulted in table 10.

Table 10 - Results of an estimation of width of range of competitors.

Assortimentnaja group Weight Quantity of the goods in commodity sections, piece
Diksi Oat-flakes The euroauction The standard
Bakery items 0,09 42 32 66 66
Delicatessen 0,30 138 146 294 294
Dairy items 0,12 162 165 154 165
Grocer's shop 0,11 83 78 73 83
Vegetables/fruit 0,08 25 28 24 28
Confectionery items 0,08 68 82 155 155
Pivobezalkogolnye

Drinks

0,13 146 157 184 184
Tobacco items 0,09 52 52 47 52
TOTAL 1,0 716 740 997 1027

Notes: are not introduced assortimentnye groups - meat and meat products, alcoholic production, melkoipuchnaja production and by-products. The given range in each of the investigated enterprises is practically at one level so that he can be neglected in accounts, making thus about 500 names in range.

Data about a constancy and stability of range, input of novelties, about represented discounts and conducted sales have been received on the basis of additional interrogation of the consumers which are simultaneously clients of the investigated company and the companies of competitors. The received results are tabulated.

Table 11 - Results of an estimation of stability of range and realisation particular covenants in networks

Indicator Significances of indicators of competitors and the company
Diksi Oat-flakes The euroauction The standard
Constancy of range, % 96 98 90 98
Input of novelties, piece for the investigated period 51 87 86 87
Stability of range, % 90 87 92 90
Availability of discounts and their size, % 15 %,

The memory

Discount card (there are 50 rbl.)

5 %

In

Dependences on a check total sum

Only within sales on discount %

The supplier

15 %
Realisation of sales, periodicity in days Once a month, 14 days Once a month,

7 days

Once a month,

14 days

Stage 4. Definition of a base of comparison.

On a method of formation of the reference competitor, described in the second chapter, the list of the best, from the point of view of economic sense, significances of the allocated indicators which have made a base of comparison has been defined.

Thus, following indicators have entered into a base of comparison:

• a minimum level of the prices from all offered (+ deviation %);

• as much as possible wide range on the allocated groups;

• the maximum estimation of a degree of quality as a whole on all range;

• the maximum satisfaction of the declared demand (availability and a range constancy) - 98 % and 90 % accordingly;

• range rotation - 87 commodity units for the investigated period (month);

• the maximum discount - on a memory discount card - 15 %.

Stage 5. An estimation of competitiveness of company "Euroauction" on each

To indicator.

After definition of a base of comparison competitiveness of company "Euroauction" and the companies of competitors on each of the revealed indicators has been defined.

Competitiveness of an indicator "quality" has been evaluated above.

Competitiveness of an indicator “price level” settles up under the formula (16) presented to item 2.1. Results of an estimation of competitiveness of price level of the company and competitors are presented in table 12.

Table 12 - Results of an estimation of competitiveness of price level.

Indicator Limit

Divergences

Significances of indicators of competitors and the company
Diksi Oat-flakes The euroauction The standard
Price divergence,

%

30 % 5 % 7 % 10 % 0 %
Competitiveness,

Point

0 83 77 67 100

Competitiveness of an indicator “ustojivost range” settles up under the proportion rule. Results of an estimation of competitiveness of availability of the goods at the investigated company and the companies of competitors are presented to realisations in table 13.

Table 13 - Results of an estimation of competitiveness of stability of range

Indicator Significances of indicators of competitors and the company
Diksi Oat-flakes The euroauction The standard
Stability. Range (Availability of the goods on regiments in relation to full line), % 65 % 77 % 92 % 92 %
Competitiveness,

Point

71 84 100 100

Competitiveness of an indicator “range width” settles up under the formula (15) presented to item 2.2. Results of an estimation of competitiveness of width of range are resulted in table 14.

Table 14 - Results of an estimation of competitiveness of width of range.

Assortimentnaja group Weight Estimation of width of group, point.
Diksi Oat-flakes The euroauction The standard
Bakery items 0,09 64 49 100 100
Delicatessen 0,30 47 50 100 100
Dairy items 0,12 98 100 93 100
Grocer's shop 0,11 100 94 88 100
Vegetables/fruit 0,08 89 100 86 100
Confectionery items 0,08 44 53 100 100
Pivobezalkogolnye

Drinks

0,13 79 83 100 100
Tobacco items 0,09 100 100 90 100
Competitiveness of range, point 77,63 78,63 94,63 100

Competitiveness of a complex of additional services is evaluated on the basis of the conducted questioning of the end users which are simultaneously clients, both the investigated company, and the companies of competitors. Results of an estimation of competitiveness by the given criterion are resulted in table 15.

Table 15 - Results of an estimation of competitiveness of an additional complex of services.

Indicator Significances of indicators of competitors and the company
Diksi Oat-flakes The euroauction The standard
Complex of additional services (a delivery service, a children's room, payment by a credit card), sht 1 1 2 3
Competitiveness, point 33 33 66 100

The note: for 100 % the availability of all of 3 additional services starts.

.

Competitiveness of an indicator “interaction with the consumer” is evaluated also on the basis of the conducted interrogation of end users, results of an estimation are resulted in table 16.

Table 16 - Results of an estimation of competitiveness of an indicator “interaction with the consumer”

Indicator Significances of indicators of competitors and the company
Diksi Oat-flakes The euroauction The standard
Culture of service, quantity

Positive opinions

224 286 486 625
Qualities of the seller, quantity

Positive opinions

201 311 492 625
Character of contact, readiness for repeated contact 186 311 428 625
Competitiveness,

Point

32,6 48,4 75 100

The note: the estimation was formed on the basis of 1000 questionnaires, 625 from which have been recognised by suitable for the further processing.

Stage of the sixth. Account of a complex rate of competitiveness of the investigated company and the companies of competitors.

Account is made under the formula (1) resulted in p 1.4.1. Results of an estimation of competitiveness of the investigated company and the companies of competitors are tabulated.

Table 17 - Results of an estimation of competitiveness of the company.

Indicator Weight Average estimations of competitors and the investigated company consumers, a point izjuo
Diksi Oat-flakes The euroauction The standard
Quality of the goods 0,21 90 82 99 100
Price level ' 0,19 83 78 67 • 100
Goods range, average index between width and stability of range 0,17 74,32 81,32 97,32 100
Interaction with the consumer, includes culture

Service, character

Contact, qualities of the seller

0,17 32,6 48,4 75 100
Additional complex

Services

0,13 33 33 66 100
Sites 0,13 92 86 92 100
Competitiveness, point 68 69 83 100

Construction of a polygon of competitiveness.

On the basis of the results received in table 17 we build a polygon of competitiveness of the competitive enterprises - drawing 30.

Drawing 30 - the Polygon of competitiveness of the investigated company and the companies of competitors.

The competitiveness polygon visually allows to evaluate conditions and to compare level of competitiveness of components of system and to reveal reserves which are necessary for involving as soon as possible for increase of level of competitiveness of system.

Stage of the seventh. The analysis of the revealed competitive advantages.

On the basis of the constructed polygon it is possible to make following inputs about level of competitiveness of retail trade enterprise:

• despite low level of competitiveness of the basic indicator - the price level, the company has the highest general level of competitiveness;

• there is an ego at the expense of possession high rates of competitiveness in such directions as culture of service,

Stock line and mutual relations with clients, i.e. the most significant for the end user;

• •

• company "Euroauction" has a more potential for increase of level of competitiveness, first of all at the expense of improvement of indicators of a price level, granting of additional services and increase of a degree of service of consumers though on the last two indicators the company for today is the leader, but to reference indicators does not hold out.

In the allocated perspective directions having in potential of increase of competitiveness search of possible competitive advantages by means of the toolkit offered in item 2.2 has been made. (P. 117-119).

Search was made on the basis of comparison of indicators of activity of the company and its competitors from a request of end users. The obtained data are shown in table 18.

On the basis of the received data the matrix of approachibility of the revealed competitive advantages (drawing 30) has been constructed

Table 18 - Search of competitive advantages of Open Company "Euroauction" in the revealed directions.

Characteristics Significances of characteristics Advantages

The companies

Advantages

Competitors

Kind

The competitive

Advantages

Consumers OPEN COMPANY

"Euroauction"

The best

Significance

Competitors

Price level,

(Deviation), %

0 +10 +5 No Yes The potential
Quality

Service,

Point

100 75 48,4 Yes No The requiring

Deduction,

* The potential

Additional services, point 100 bb 33 Yes No The requiring

Deduction,

The potential

From table data, it is possible to draw a conclusion, that each of indicators is potential competitive advantage, and the part from them has double character, simultaneously concerns and to requiring deduction, and the potential.

The matrix of an estimation of approachibility of the given competitive advantages is resulted in drawing 31.

Stability of competitive advantages has been evaluated by criteria of perceptibility of end users, importance of the represented blessing and complexity of copying by competitors.

With:

Och

S

f

About

Ji

X

X

About

sh

About

і

The potential

To Price level
The requiring

Strengthenings

Kamestvo

Service

Already

The available

Dopolniteln ye services
The low Average --------------------- —------R

The high

Stability (value) KP

Drawing 31 - the Analysis of the revealed competitive advantages of Open Company "Euroauction".

On the basis of the given matrix and the analysis of consequences of acquisition of the given competitive advantages (such as necessity of additional investments for business, terms of achievement and potential decrease in profitability of business for the given term) the decision on necessity of liquidation of competitive defect of the company concerning a high level of the prices and increase of competitive advantages concerning a degree of service and additional services was accepted.

Stage of the eighth. Working out of competitive strategy.

As competitive strategy strategy of introduction of system of a quality management at the retail trade enterprise has been chosen. As already it was marked above, for-final about consumers have significances only those rates of competitiveness to which they have a direct contact and with which the author has allocated in group of external rates of competitiveness. In table 19 comparative characteristics of the given indicators are resulted.

All criteria which are accepted as potential, requiring improvement, concern the basic criteria, external for the consumer.

On napravlensho "price level" has been chosen by target significance of a limit of price divergences the level corresponding to level of the nearest competitor - Open Company “Discount the centre” ("Diksi") which is equaled +5 %.

For achievement of the given indicator a number of following steps has been undertaken:

• items on which the price divergence exceeds a similar divergence in "Diksi" are allocated;

• on the basis of the allocated items “the psychological range” on which basis the consumer does input about a trade enterprise price level is generated;

• the marketing margin structure on all commodity range is analysed;

• on the items concerning to “psychological range”, cut-rate prices to a price level of the competitor;

• on production which is belonging to the class "premium" (on separate items) the marketing margin, for preservation of an average marketing margin on trade enterprise is raised;

• the analysis of structure of system of purchases is carried out, the structure of trade enterprise before change is resulted in drawing 32.

• the structure of system of the purchases is changed, the new structure is resulted in drawing 33, the department of the control which includes is allocated: 1 - analytics, 2 price controllers, 2 inspectors of the controller

• the software allowing is developed to carry out a running control behind level of the entering prices and marketing margin level.

Following kinds of works are included in responsibilities of employees of department:

1. Weekly monitoring of the prices of competitors (controllers under the prices), with granting of reports to analytics, which on the basis of this information

2. Defines the half-internal prices for the goods from “psychological range” and

3. Makes necessary revaluation of the goods of a class "premium" for achievement of a necessary average marketing margin on trade enterprise.

After the conducted actions at repeated account of a price divergence in relation to the reference competitor, the given indicator has made 6,8 % that allows Open Company "Euroauction" to compete more successfully in the given direction to the companies competitors. As a result level of competitiveness of Open Company "Euroauction" on a price level indicator was lifted from 67 % to 78 %. Competitiveness of the given indicator at competitors was not changed.

In a direction of quality of service (enter a component: quality of the seller, culture of service, character of contact) were is undertaken following steps:

• the software is developed, allowing to consider a backlog demand of end users;

• practice of monthly questioning of end users is entered;

• all linear trading staff has passed the courses of improvement of qualification conducted by forces of managers of a commercial department;

• forces of managers and regulations-manager develop materials which will serve as standard documents at periodic certification "old" and training of new employees from among linear trading staff.

Before linear trading staff there was a task in view on achievement of 90 % of a degree of quality of service the next 6 months from the beginning of realisation of the program. Motivational programs for the linear trading staff, directed on prevention of cases of poor-quality service of consumers are developed.

In drawing 34 the model of the basic operational process in Open Company "Euroauction" is resulted. On model are designated (points 1,2,3,4) points of quality assurance of production and service of consumers.

In table 20 decoding of the contents of points of quality assurance of production and service is resulted.

158

159

The algorithm of service of the buyers, accepted to obligatory application in Open Company "Euroauction" is resulted in drawing 34.

Drawing 34 - Algorithm of service of buyers.

Table 20 - Points of quality assurance of production and service of consumers.

The contents of a point of quality The list of actions in case of a deviation from the specification Otvetstvenn

yj

1. The control of the source prices on which the company receives production Negotiations with the existing

Suppliers about change of supply prices

The analyst,

The manager

The commodity

Categories

If are not successful, search of the new supplier with more suitable conditions of cooperation (the price, a credit against goods) The analyst,

The manager

The commodity

Categories

2. Quality assurance,

Working lives

Production, fidelity

Registrations of accompanying notes, completeness of execution of the order

The source control The storekeeper on duty, administrat or shop
At revealing of discrepancies - informing of the manager commodity

Categories which should contact the supplier and develop methods

Situation permissions

The manager

The commodity

Categories,

The analyst

Entering into the record register about the revealed discrepancy and a method of the decision The analyst
3. Quality assurance, production working lives Removal of the goods from operation (preselling preparation, the calculation) The packer, the seller - the adviser, the inspector - the controller
Statement in popularity of the manager of shop The packer, the seller - the adviser, the inspector - the controller
Statement in popularity of the manager of a commodity category Administra

tor

magazjna,

The inspector -

The controller

Definition guilty in proisshedshej sshuatsii (the validity expiry of the term), definition of punishment for the guilty The manager

The commodity

Categories

Decision-making on the further destiny of the goods (writing off, price reduction, return on a warehouse for an exchange or return to the supplier) The manager

The commodity

Categories

The Message in shop about the accepted decision The manager

The commodity

Categories

4. The completeness control

Range, working lives of production, quality vkladki

Imposing of fines for trade in the overdued goods The inspector -

The controller

Fact fixing not conformity assortimentnoj matrixes The inspector -

The controller

Finding-out of the reasons not fulfilment assortimentnoj matrixes The inspector -

The controller

The message to the sales manager The inspector -

The controller


All actions are directed on occurrence prevention on sale of poor-quality production, production on overcharges, not enough qualitative or overdued production, and on increase of a degree of service of end users.

First three stages are carried out by participants of the basic operational process at the indicated stages of its passage, the last check is intended basically for quality assurance of activity of executors of the previous three stages, is final and evaluates an end result of activity of the company.

Stage the ninth and the tenth. Realisation of competitive strategy and an estimation of the reached competitive advantages.

Within the limits of an activity principal view some directions are developed:

1. Perfection of technology of rendering of services (retail and remote trade) as sequences of the separate operations executed by various employees and experts;

2. Perfection of methods and methods of stimulation and advancement of sales of production;

3. Perfection assortimentnoj matrixes.

On supplying kinds of activity improving works are reduced to the following:

1. Optimisation of information streams inside and between divisions;

2. Optimisation of a functional division of labour;

3. Perfection technical and the work software;

4. Perfection of a lay-out of places of business and placing of the trading equipment, optimisation of use of the trading areas;

5. Introduction of the new trading equipment;

6. Perfection of methods of motivation and work stimulation.

7. Perfection assortimentnoj matrixes.

Formation Production delivery Production reception Goods estimation Definition Supervision,
The centralised On the central On the central (Manager TK) Methods Estimation
The order (manager TK) Warehouse (the driver - Warehouse Stimulations Realisations
The forwarding agent , 2 (Storekeeper) —> — ► Sales and — ► (Analyst)
—> The supplier or Advancements
The companies) Production

Application for requirement for motor transport (manager TK)

Distribution and scheduling of movement of motor transport (the chief of a motor-vehicle pool)

Working out

assortimentnoj

Matrixes

(Analyst)

Monitoring external environments and market research (the manager of a commodity category)

Search of suppliers and the conclusion of agreements on

Delivery (the manager of a commodity category)

Konsultirovani e concerning storage, preselling preparation and

vkladki the goods

(Manager TK)

Shop administrative review (the inspector - the controller)

Realisation

Production

(The seller -

The adviser)

The advice of shops of conditions of cooperation with

The supplier (manager TK)

Delivery of Production 8 shop (the driver - the forwarding agent of the supplier or the company)

Production reception in shop (the manager of shop)

Warehousing in auxiliary premises (loader)

Preselling preparation and prepacking (packer)

Goods placing in a trading hall (the seller -

The adviser,

The packer)

Formation of the order for the transit goods (the manager of shop)

Set of the order for shops (the accountant -

The operator, the loader - the type-setter)

Order formation on

The central warehouse - (the manager of shop)

Drawing 34. Model of the basic operational process in Open Company "Euroauction" with points of quality assurance of process

163

On supplying kinds of activity improving works are reduced to the following:

8. Optimisation of information streams inside and between divisions;

9. Optimisation of a functional division of labour;

10. Perfection technical and the work software;

11. Perfection of a lay-out of places of business and placing of the trading equipment, optimisation of use of the trading areas;

12. Perfection of methods of motivation and work stimulation.

The basic signal serving by the beginning of works on perfection

Rendered services promotion of idea by the employee of the company and aggravation of economic indicators of activity of the company can serve.

The basic scheme of work on perfection is resulted in drawing 35.

During idea consideration on perfection and assertions of design actions the object for innovation introduction gets out, as a rule. Thus carried out project carries the name "pilot". The essence of the "pilot" project consists in decrease in risk and losses from unsuccessful introduction of an innovation in practice.

Besides, during realisation of the "pilot" project there is an updating and perfection actually the project that allows during duplicating and innovation distribution on other objects to avoid possible errors and complexities. Besides, there is a number of projects which are not subject to duplicating and are developed individually for this purpose, or other object with allowance for its features and specificity.

As a rule, on financing of similar type of projects internal funds are used, extra changes of structure of a fixed capital - acquisition of the process equipment, the additional trading and warehouse areas are involved only in case of need.

One of the "pilot" projects started on the basis of largest of supermarkets and subsequently duplicated on all network - "delivery service" of orders for the house in more true time. The given project has shown the high efficiency in the given local market.

The planned targets received at account of a break-even point — 808 orders in quarter, quantity of orders received and processed in the first quarter of activity of a delivery service, has made 1820 orders, tendentious to increase (in the fourth month the quantity of orders has made 812, at preservation of the given tendency the quarter indicator will be exceeded in comparison with a break-even point more than three times).

On the basic economic indicators of activity of the investigated company we will track changes in an economic condition of the company after the conducted actions for optimisation of system of marketing logistics in 2002-2004 on retail trade enterprise (table 21).

Table 21 - the Basic economic indicators of activity of Open Company "Euroauction"

Indicator, thousand rbl. Year
2002 2003 2004
1 Gain 231381,42 310051,11 364000,00
1.1. Trade turnover on retail trade 214242,06 290672,91 341758,57
1.2. Gain on the investment

Activity

17139,36 19378,19 22241,43
2 The cost price, including. 186297,44 242834,51 282538,50
2.1. The cost price of the goods for

Resales

171393,65 230692,79 271236,96
2.2. The cost price of Activity of a commercial firm (commercial costs) 14903,80 12141,73 • ’ 11301,54
3 Profit on activity, including. 45083,98 67216,59 81461,50
3.1. Profit on primary activity 42829,78 64191,85 78203,04
3.2. Profit on the investment

Activity

2254,20 3024,75 3258,46
4 Net profit 33812,99 50412,45 61096,13
5 Profitability of sales of the trading

The companies

(4) / (1).

14,6 % 16 % 16,8 %
6 Profitability of sales on an activity principal view (3.1.) / (1.1.) 20 % 22 % 23 %


Drawing 35 - the Scheme of process of realisation of works on development and perfection of rendered services

Let's analyse dynamics and structure of the given indicators (table 22,23) Table 22 - Structure of the basic economic indicators of activity

Open Company "Euroauction"

Indicator Year
2002 2003 2004
1 Gain 100 % 100 % 100 %
1.1. Trade turnover on retail trade 92,59 % 93,75 % 93,89 %
1.2. Gain on the investment

Activity

7,41 % 6,25 % 6,11 %
2 The cost price, including. 100 % 100 % ’ 100 %
2.1. The cost price of the goods for

Resales

92 % 95 % 96 %
2.2. The cost price of activity of a commercial firm (commercial costs) 8 % 5 % 4 %
3 Profit on activity, including. 100 % 100 % 100 %
3.1. Profit on primary activity 95 % 95,5 % 96 %
3.2. Profit on the investment

Activity

5 % 4,5 % 4 %

Table 23 - Dynamics of the basic economic indicators of activity of Open Company "Euroauction"

Indicator Year
2003/2002 2004/2003
1 Gain 1,34 1,17
1.1. Trade turnover on retail trade 1,36 1,18
1.2. Gain on investment activity 1,13 1,15
2 The cost price, including. 1,30 1,16
2.1. The cost price of the goods for resale 1,35 1,18
2.2. The cost price of activity of a commercial firm (commercial costs) 0,81 0,93
3 Profit on activity, including. 1,49 1,21
3.1. Profit on primary activity 4,50 1,22
3.2. Profit on investment activity 1,34 1,08
4 Net profit 1,49 1,21
5 Profitability of sales of a commercial firm 1,11 1,03
6 Profitability of sales on a principal view

Activity

1,10 1,04

Apparently from the data resulted in tables 22 and 23, throughout the investigated period after introduction of elements of system of management ’ of quality in Open Company "Euroauction", a company gain grows, with some attenuation with 2002 till 2004 (with 1,34 to 1,17), thus growth of scales of activity and the established points of quality assurance have allowed to reduce to it costs regarding the cost price of activity of the company (commercial expenses) about 8 % to 4 %. The given indicators testify that the direction of qualitative changes is chosen truly, but the effect of attenuation testifies that time once again has come to conduct internal audit for working out of adjustment actions directed on gain growth (on increase of competitiveness of the company).

Having analysed the basic economic indicators of activity of the company, it is possible to draw a conclusion that at occurrence in the local market of two strong Moscow network operators, the investigated company has truly chosen, directions of increase of competitiveness, growth visually testifies to it as gains, and profits (natural indicators).

Thus, one of quality management principles - the control and working out of adjustment actions is realised.

In June, 2005 realisations of the developed strategy have been summed up. Gauging (questioning) of satisfaction of requirements of target consumers has shown, that level of satisfaction of consumers was lifted to 87 % that does not reach planned 90 %, but exceeds level of both competitors (80 % and 83 %). The results reached owing to conducted actions, have been recognised by satisfactory.

After that recalculation of competitiveness of the investigated company and the companies of competitors as the company has received a number of competitive advantages for the investigated period has been made and significance of characteristics of the reference competitor were changed. The data received at account are resulted in table 24.

In the table the changes which have occurred as a result of realisation of actions for increase of competitiveness are allocated. For comparison primary data on competitiveness level as it is visible are resulted, competitive defect concerning a price level ("psychological" range) and fastening of competitive advantages concerning quality of service of target and in addition represented services has been liquidated. Level of competitiveness of the companies of competitors also has raised concerning the reference competitor, but thus rupture in points of level of a competitiveness remained practically invariable, the nearest leader among the companies of competitors was changed.

Table 24 - Result of an estimation of competitiveness of the company after

Realisations of actions for its increase.

Indicator Weight Average estimations of competitors and the investigated company consumers, a point from 100
Diksi Oat-flakes The euroauction The standard
Quality of the goods - 0,21 90 82 99 100
Price level 0,19 83 76 78 100
Range of the goods,

Average index

Between width and stability of range

0,17 78 82 97,32 100
Interaction with

The consumer, includes culture of service, character of contact,

Qualities of the seller

0,17 58 56 87 100
Additional complex of services 0,13 48 48 100 100
Sites 0,13 92 86 92. 100
Competitiveness,

Point

75 (68) 72 (69) 92 (83) 100

The companies the competitor on a level with Open Company "Euroauction" conduct active work on fastening of target consumers, the basic competitive advantage of the investigated company - the high loyalty of consumers connected with high culture of service. The program aimed at fastening of end users and on increase of volume of single purchase (the sum of one check) has been developed for deduction of in the lead items in the given direction.

In the Appendix 18 the given program is presented. The program has been started since January, 1st, 2005. Term of realisation of the program - 6 months responsible - the sales manager and the analyst of a commercial department.

The basic results of the given program:

• at questioning of consumers from 1000 questionnaires are recognised by constant consumers 824 (in comparison with the previous result in 625, increase in 1,32 times) gives us growth of number of constant consumers in 32 %;

• increase in the sum of the average check about 771 rbl. in 2002 to 1213 rbl. in 2005.

Thus, the methods of increase of competitiveness of retail trade enterprises offered in work really have the practical importance, can be used during management economic activities and yield notable economic results.

<< | >>
A source: Batsanina Irina Aleksandrovna. Improving the competitiveness of enterprises on the basis of improving the organization of distribution logistics. Thesis for the degree of candidate of economic sciences. Moscow - 2005. 2005

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