Executive summary

Executive summary

Pyaterochka, a chain of stores of «soft» discount format which belongs to X5 Retal group, some time ago was the leader on the Russian market of retailors, according to the amount of its sales.

However, chain of shops Pyaterochka started to lose customers and sales. Until this time the chain of “soft” discount shops was the most reliable format of stores to X5 Retail Group. But now LFL-traffic (number of checks on the stores operating for over a year) is constantly decreasing. For example, in 2012 year it has fallen by 5%.

There are some reasons for it:

· Increasing competition in the Russian regions

· Obsolescent base of shops in keys regions

· Operational problems at the distribution centers which lead to the reducing of the availability of products on the shelves

Our goal is to investigate why the company has lost its original competitive positions, while exploring next questions:

1. Current and potential visitors way of thinking about Pyaterochka:

· Their awareness of this chain of shops

· Their attitude to these shops and reasons of it

· What they would like to improve in the level of quality of products, service in the shops and so on.

2. A profile of current visitor of Pyaterochka to select a segments of the market.

· age

· gender

· level of revenue

· so on

3. The main information

· What is the current frequency and turnover of The Pyaterochka visitors

· How convenient are shop locations

· How convenient is working time

· How is the quality of goods

· Are customers satisfied with the level of price

Accorging to this problem we are going to help decision makers, who are

• Top managers of X5 Retail Group

• Top managers of chain of shops Pyatorochka

• Marketing department of X5 Retail Group

• Marketing department of chain of shops Pyatorochka

• purchasing department of chain of shops Pyatorochka

• Managers of separate shops Pyatorochka

to make a new development strategy for Pyaterochka which helps to increase customer’s loyalty and attract new customers to these shops.

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