Chase up full report

BRIEF INTRODUCTION OF CHASE UP

Chase Up was founded in 1984 as a family owned business initially selling quality readymade
garment at affordable prices. The company was considered as pioneers of introducing the
concept of modern dept store retailing in Karachi. Chase Up has always focused on maximizing
customer convenience; by providing a wide range of quality goods and services under one roof
at the prices that majority of customers can afford to pay. Since then the business has continued
to grow and the business model has evolved during the years up to the point where the company
now falls under the category of quality discounting in the retail sector. Presently, the company
is operating 5 stores in Karachi, selling a wide variety of clothing, footwear, Groceries, house
wares, ladies fabrics and health and beauty products to name a few. Chase Up plans to open
more stores in Karachi and throughout the country in order to touch more and more customers
every day with its even expanding range of quality foods at highly affordable prices. Chase Up
Shopping City is a family owned department store business in Karachi, Pakistan operating
since 1984. Its core product line consists of garments for men and women of all age groups,
footwear, health & beauty products, grocery, loose fabric for ladies, kitchenware and house
ware products and undergarments for men and women. The grocery section is the latest
addition to the different departments, available only in two branches, Shaheed-e-Milat Road
and Clifton. Currently chase up is operating 4 outlets in Karachi, the business hub of Pakistan.
Chase up falls into the category of Hypermarket/Quality discounting in retail sector. The size
of stores range between 6,000 to 20,000 sq. ft. and the product line varies from store to store
depending on its size. The foremost motto of Chase Up is the quality of the products. Being in
the business for decades, they are capable of providing our customers with excellent quality
products.Chase Up Shopping City is a family owned department store business in Karachi,
Pakistan operating since 1984. Its core product line consists of garments for men and women
of all age groups, footwear, health & beauty products, grocery, loose fabric for ladies,
kitchenware and house ware products and undergarments for men and women. The grocery
section is the latest addition to the different departments, available only in two branches,
Shaheed-e-Milat Road and Clifton. Currently chase up is operating 4 outlets in Karachi, the
business hub of Pakistan. Chase up falls into the category of Hypermarket/Quality discounting
in retail sector. The size of stores range between 6,000 to 20,000 sq. ft. and the product line
varies from store to store depending on its size. The foremost motto of Chase Up is the quality
of the products. Being in the business for decades, they are capable of providing our customers
with excellent quality products.Chase Up Shopping City is a family owned department store
business in Karachi, Pakistan operating since 1984. Its core product line consists of garments
for men and women of all age groups, footwear, health & beauty products, grocery, loose fabric
for ladies, kitchenware and house ware products and undergarments for men and women.

Grocery Section:

The grocery section is the latest addition to the different departments, available only in two
branches, Shaheed-e-Milat Road and Clifton. Currently chase up is operating 4 outlets in
Karachi, the business hub of Pakistan. Chase up falls into the category of Hypermarket/Quality
discounting in retail sector. The size of stores range between 6,000 to 20,000 sq. ft. and the
product line varies from store to store depending on its size. The foremost motto of Chase Up
is the quality of the products. Being in the business for decades, they are capable of providing
our customers with excellent quality products. Chase Up Shopping City is a family owned
department store business in Karachi, Pakistan operating since 1984. Its core product line
consists of garments for men and women of all age groups, footwear, health & beauty products,
grocery, loose fabric for ladies, kitchenware and house ware products and undergarments for
men and women. The grocery section is the latest addition to the different departments,
available only in two branches, Shaheed-e-Milat Road and Clifton. Currently chase up is
operating 4 outlets in Karachi, the business hub of Pakistan. Chase up falls into the category of
Hypermarket/Quality discounting in retail sector. The size of stores range between 6,000 to
20,000 sq. ft. and the product line varies from store to store depending on its size. The foremost
motto of Chase Up is the quality of the products. Being in the business for decades, they are
capable of providing our customers with excellent quality products. Short Description Chase
Up Shopping City, it is cheaper store in town where you can buy the stuff in wholesale prices

INTRODUCTION OF CHASE UP MULTAN

Chase up has started its operations in 20 June 2014 in Multan. Its core product line consists of
garments for men and women of all age groups, footwear, health & beauty products, grocery,
fabric for ladies, kitchenware and house ware products and undergarments for men and women.
Chase Up has always focused on maximizing customer convenience. Chase Up plans to open
more stores in Multan and throughout the country in order to touch more and more customers.

ORGANIZATION PROFILE

Organization name: Chase up

Year of establishment: 20 June, 2014

Founder name: M.Bashir

Director names: M.Bashir, Salman Bashir, Jawad Bashir

Contact no: 061-6223105-06

Email address: Multan@chaseup.com.pk

Location: Pace and Pace shopping Mall, Chongi #6 main Boson Road, Multan

SCOPE OF ORGANIZATION

Chase up order goods in foreign and a few local companies are actively engaged in chain stores
in the country.

Chase up economic growth, leading supermarket chains – that mainly consider to middle and
upper income classes. • Customers can even remove the items from website that were selected
earlier before they place the final order.
CHASE UP VISION

Our vision is to lead and become the pioneer of retail business in Pakistan and also provide
their customers good quality products with low price. We aim to do this by continuous
innovation and improvement in the quality of the product we carry, our business systems and
process. We also strive to contribute positively in the economic development of our country by
providing value through the concept of SOURCE TO STORE. Finally in doing so we aim
to continuously identify, and develop our human resources to the highest possible level because
we believe that “business is all about people”.

MISSION STATEMENT OF CHASE UP

Our mission is to continuously develop and enrich the lives of our customers by providing them
One-Stop shopping solutions on a daily basis. The core vision is to provide and enhance value
for money in each and every product we carry.

OUR GOALS

Our company goal is to provide good quality of products at affordable price and offer all of its
products at wholesale price with full comfort for its customers. And also provide highly
cooperative and friendly environment to their customers.

ORGANIZATION PHILOSOPHY

It is critical to our long-term success and growth that our businesses are managed by highly
capable leaders with the low price and skilful staff. To achieve this objective, we have designed
our compensation programs to retain and motivate a large group of people. Our programs are
highly competitive in the marketplace.

ORGANIZATION PRODUCT LINE

Grocery

Cosmetics

Crockery

Shoes

Garments
Jewellery

Watches

Fabric

Leather product

ENTERPRENURE SUCESS STORY

We start our business at very low-level lady garments but now our business expands at large
level. Our success story based on that strategy customers pay high price on their purchases but
we provide low price with high quality which attract the customers and earn large profit. Chase
up selling quality readymade garment at affordable prices.

OPPERTUNITY RECOGNITION

The opportunity for our organization is that to open the new branches of chase up and capture
more market area and also increase the profit of our company. Chase up also creates the
opportunity for citizens. Chase up is hiring people who have previous experience of working
in super market or departmental store. This is a great opportunity for the citizens of Multan to
work in a fastest growing business.

MARKETING CHALLENGES

There are many challenges facing Chase up just like any other business.

• How to keep cost low

• How to ensure there is enough parking lot

• How to bring quality tenants and customers

• How to attract talented people to join their organizations

• How to increase sales of our Products

• How to replicate the same business model in other cities of Pakistan

SOCIAL AND POLITICAL OR OTHER ISSUES/TRENDS

With the passage of time our society change because of new innovations (fashion trend change)
in the market so it is difficult to meet every customer expectation therefore, our company more
focus on quality maintain strategy. In social trends chase up believe that the market position
that we wish to achieve can only be achieved through integrity hard work and sincere
dedication of our employees, vendors at all levels.

ENTREPRENEURIAL STRAYEGY

Different strategies are used by the chase up:

•Pricing Strategy

•Quality maintained strategy

•Variety of products introduced

•Return Policy

MARKETING OR MANAGEMENT STYLE

Marketing of our company through cable T.V, F.M, Bill boards. The company uses the
differentiation strategy or price leadership.

• Growth strategy also uses by chase up, in which company provide variety of products to their
customer’s e.g. grocery products also available in this store.

• Chase up use the democratic management style, in which all employees of chase up are
participate in decision making not only managers take decisions.

BUSINESS PLANS

Chase up business plan provides good quality products with low price for gaining the
competitive edge in the market.

• Our organization planning is to open new branches of chase up in Multan, Lahore, and
Faisalabad. Within 6-month new branch opened in Multan.

•Our business planning is to open the new branch after 1 year in different cities of Pakistan.
SUCCESS TIME STORY / SUCCESS LESSONS

Success story of chase up provide goods to customers at right time in low price with high
quality. • Chase up purchase goods at bulk quantity which give benefit because pay low price.

MANAGEMENT PLANNING:

While making plans the management of CHASE UP has been cognizant of their missions,
goals, strategies, policies

OBJECTIVE IN PLANNING

Provision of Quality of products at low price

•Provision of courteous and helpful services to the customers •Offering opportunities to

growth, advancement and rewarding careers in a fun safe working environment. •Working for
profit maximization. •Working for the economic growth.

ORGANIZING

As CHASE UP is a national company, it has to focus more on organizing. • At CHASE UP,

management organizes all its resources in order to implement the course of action it determines
in the planning process. • Through the process of getting organized, the management
determines the internal organizational structure; establishes and maintains relationships and
allocates necessary resources.

LEADING

Our outlet managers act as leaders. • Outlet managers are highly motivated and their job is to
direct and influence their sub-ordinates. • Sub-ordinates report to him directly and he is
responsible for solving employees' issues. • Sub-ordinates report to him directly and he is
responsible for solving employees' issues. • He also develops good relations with his co-
workers and wins their trust to create a productive environment which ensures fulfilment of
organizational objectives.

CONTROLLING

Through the controlling function the company ensures that the activities that are being
undertaken within an organization are going according to the pre- conceived plans. • Therefore,
it is the duty of the managers to have an understanding and a working knowledge of the
fundamentals of the controlling function.

RESOURCE MANAGEMENT

Made staff separation, resignation & termination cases and turnover ratio. •Made Job
Description of the employee’s position with the help of department head. •Maintained
attendance records & employee’s data via ERP system. •Made Employees Cards, Issuing
Employee ID’s & updating Employees Records of All Branch. •Updated leave database, loan
database, medical reimbursement and maintained leave applications in ERP system. •Prepare
maintain and update company / department wise Organ gram •Facilitate new employee in
joining & orientation.

COMPETITORS ANALYSIS

Our competitors are those who can affect our business. •Comparative Advantages: • Low
pricing strategy is a competitive advantage for chase up. Chase up provides good quality
products in cheapest rates. Nature of Competition: We have more competitive management
and employees. Our employees are very competent, skilled and highly experienced.

RESEARCH AND DEVELOPMENT

There is no reach and development department of chase Up. We outsource the consultant to
conduct research. Recently we conducted a research from which we came to know that there is
high demand of our shopping mall.

PRICING STRATEGIES

A business can use a variety of pricing strategies when selling a product or service. The price
can be set to maximize profitability for each unit sold or from the market overall. It can be used
to defend an existing market from new entrants, to increase market share within a market or to
enter a new market. Businesses may benefit from lowering or raising prices, depending on the
needs and behaviours of customers and clients in the particular market. Finding the right pricing
strategy is an important element in running a successful business Models of pricing Absorption
Pricing Method of pricing in which all costs are recovered. The price of the product includes
the variable cost of each item plus a proportionate amount of the fixed costs. Contribution
margin-based pricing Contribution margin-based pricing maximizes the profit derived from an
individual product, based on the difference between the product's price and variable costs (the
product's contribution margin per unit), and on one’s assumptions regarding the relationship
between the product’s price and the number of units that can be sold at that price. The product's
contribution to total firm profit (i.e. to operating income) is maximized when a price is chosen
that maximizes the following: (contribution margin per unit) X (number of units sold). In cost-
plus pricing, a company first determines its break-even price for the product. This is done by
calculating all the costs involved in the production such as raw materials used in it
transportation etc., marketing and distribution of the product. Then a mark-up is set for each
unit, based on the profit the company needs to make, its sales objectives and the price it believes
customers will pay. For example, if the company needs a 15 percent profit margin and the
break-even price is $2.59, the price will be set at $2.98 ($2.59 x 1.15). Creaming or skimming
In most skimming, goods are sold at higher prices so that fewer sales are needed to break even.
Selling a product at a high price, sacrificing high sales to gain a high profit is therefore
"skimming" the market. Skimming is usually employed to reimburse the cost of investment of
the original research into the product: commonly used in electronic markets when a new range,
such as DVD players, are firstly dispatched into the market at a high price. This strategy is
often used to target "early adopters" of a product or service. Early adopters generally have a
relatively lower price-sensitivity - this can be attributed to: their need for the product
outweighing their need to economise; a greater understanding of the product's value; or simply
having a higher disposable income. This strategy is employed only for a limited duration to
recover most of the investment made to build the product. To gain further market share, a seller
must use other pricing tactics such as economy or penetration. This method can have some
setbacks as it could leave the product at a high price against the competition. Decoy pricing
Method of pricing where the seller offers at least three products, and where two of them have
a similar or equal price. The two products with the similar prices should be the most expensive
ones, and one of the two should be less attractive than the other. This strategy will make people
compare the options with similar prices, and as a result sales of the more attractive high-priced
item will increase. High-low pricing Methods of services offered by the organization are
regularly priced higher than competitors, but through promotions, advertisements, and or
coupons, lower prices are offered on key items. The lower promotional prices are designed to
bring customers to the organization where the customer is offered the promotional product as
well as the regular higher priced products. Loss leader A loss leader or leader is a product sold
at a low price (i.e. at cost or below cost) to stimulate other profitable sales. This would help the
companies to expand its market share as a whole. Marginal-cost pricing In business, the
practice of setting the price of a product to equal the extra cost of producing an extra unit of
output. By this policy, a producer charges, for each product unit sold, only the addition to total
cost resulting from materials and direct labor. Businesses often set prices close to marginal cost
during periods of poor sales. If, for example, an item has a marginal cost of $1.00 and a normal
selling price is $2.00, the firm selling the item might wish to lower the price to $1.10 if demand
has waned. The business would choose this approach because the incremental profit of 10 cents
from the transaction is better than no sale at all. Market-oriented pricing Setting a price based
upon analysis and research compiled from the target market. This means that marketers will
set prices depending on the results from the research. For instance if the competitors are pricing
their products at a lower price, then it's up to them to either price their goods at an above price
or below, depending on what the company wants to achieve. Odd pricing In this type of pricing,
the seller tends to fix a price whose last digits are just below a round number (also called just-
below pricing). This is done so as to give the buyers/consumers no gap for bargaining as the
prices seem to be less and yet in an actual sense are too high, and takes advantage of human
psychology. A good example of this can be noticed in most supermarkets where instead of
pricing at £10, it would be written as £9.99. Pay what you want Pay what you want is a pricing
system where buyers pay any desired amount for a given commodity, sometimes including
zero. In some cases, a minimum (floor) price may be set, and/or a suggested price may be
indicated as guidance for the buyer. The buyer can also select an amount higher than the
standard price for the commodity. Giving buyers the freedom to pay what they want may seem
to not make much sense for a seller, but in some situations it can be very successful. While
most uses of pay what you want have been at the margins of the economy, or for special
promotions, there are emerging efforts to expand its utility to broader and more regular use.
Penetration pricing Penetration pricing includes setting the price low with the goals of
attracting customers and gaining market share. The price will be raised later once this market
share is gained. Predatory pricing Predatory pricing, also known as aggressive pricing (also
known as "undercutting"), intended to drive out competitors from a market. It is illegal in some
countries. Premium decoy pricing Method of pricing where an organization artificially sets one
product price high, in order to boost sales of a lower priced product. Premium pricing Premium
pricing is the practice of keeping the price of a product or service artificially high in order to
encourage favorable perceptions among buyers, based solely on the price. The practice is
intended to exploit the (not necessarily justifiable) tendency for buyers to assume that
expensive items enjoy an exceptional reputation, are more reliable or desirable, or represent
exceptional quality and distinction. Price discrimination Price discrimination is the practice of
setting a different price for the same product in different segments to the market. For example,
this can be for different classes, such as ages, or for different opening times. Price leadership
An observation made of oligopolistic business behavior in which one company, usually the
dominant competitor among several, leads the way in determining prices, the others soon
following. The context is a state of limited competition, in which a market is shared by a small
number of producers or sellers. Psychological pricing Pricing designed to have a positive
psychological impact. For example, selling a product at $3.95 or $3.99, rather than $4.00. There
are certain price points where people are willing to buy a product. If the price of a product is
$100 and the company prices it as $99, then it is called psychological pricing. In most of the
consumers mind $99 is psychologically ‘less’ than $100. A minor distinction in pricing can
make a big difference in sales. The company that succeeds in finding psychological price points
can improve sales and maximize revenue. Target pricing business Pricing method whereby the
selling price of a product is calculated to produce a particular rate of return on investment for
a specific volume of production. The target pricing method is used most often by public
utilities, like electric and gas companies, and companies whose capital investment is high, like
automobile manufacturers. Target pricing is not useful for companies whose capital investment
is low because, according to this formula, the selling price will be understated. Also the target
pricing method is not keyed to the demand for the product, and if the entire volume is not sold,
a company might sustain an overall budgetary loss on the product. Time-based pricing A
flexible pricing mechanism made possible by advances in information technology, and
employed mostly by Internet-based companies. By responding to market fluctuations or large
amounts of data gathered from customers - ranging from where they live to what they buy to
how much they have spent on past purchases - dynamic pricing allows online companies to
adjust the prices of identical goods to correspond to a customer’s willingness to pay. The airline
industry is often cited as a dynamic pricing success story. In fact, it employs the technique so
artfully that most of the passengers on any given airplane have paid different ticket prices for
the same flight. Value-based pricing Pricing a product based on the value the product has for
the customer and not on its costs of production or any other factor. This pricing strategy is
frequently used where the value to the customer is many times the cost of producing the item
or service. For instance, the cost of producing a software CD is about the same independent of
the software on it, but the prices vary with the perceived value the customers are expected to
have. The perceived value will depend on the alternatives open to the customer. In business,
these alternatives are using competitors software, using a manual work around, or not doing an
activity. In order to employ value-based pricing you have to know your customer's business,
his business costs, and his perceived alternatives. It is also known as Perceived- value pricing.

Total Quality Management

The quality management concept was recognised since ancient times. Chase Up in the
manufacturing sector were focused on enhancing quality and utilising tools that directly aim to
control quality at the store. Subsequently, QM has been recognised widely in several
international standards such as in the ISO 9000 and the idea of QM was largely accepted these
standards. Several principles were recognised at each TQM practices and the principles are
clarified:

Total quality management also engages all Chase Up staff members in the process of
covering customers' expectation through utilising problem solving methods to enhance the
quality of all Store products and services. The main focus of total quality management
philosophy is to achieve a comprehensive integration among Chase Up staff and their
functions in order to gain better enhancement, progress and preservation of products and
services quality to achieve customer satisfaction. This managerial philosophy is directly
focuses on improving business quality and satisfaction of managers through enhancing
the employee's involvement in decision making processes by utilising teams of quality
improvements and quality circle strategies. One example is that all TQM considered
customer as the key focus in this managerial strategy. Furthermore, one of the most
important elements that ensure the success of TQM practices is the management
commitment. Other essential organisational situations to achieve TQM success are
organisational culture and alterations. Therefore, total quality management is a managerial
strategy that aims to enhance Chase Up performance and efficiency through enhancing
the quality of services and products in the Shopping Centre.

Implementation and practices of TQM in Chase Up

The main categories of implementing total quality Management strategies are as follow:

Quality Control:

At this level, Chase Up often own several laboratories and measurement departments in order
to continuously enhance the quality of their products and services through testing them and
developing their managerial systems. the statistical process control is the most often utilised
approach to conduct such measurements at companies.

Quality Assurance:

Companies that are governed by this method is directly believe that products is an output for
several processes and quality of these products cannot be achieved without controlling each
process separately. Quality assurance is largely conducted in Chase Up through implementing
some programs that focused on quality (such as ISO 9000, ISO 9000-2000, etc), in addition
to some managerial tools that are utilised to assure quality.

Continues Quality improvements:

Chase Up is located under this level believed that the improvement of quality of businesses is
directly connected to the employee's efficiency, commitment and the existence of team
work spirit within the staff members. Several campaigns were planned in Chase Up in
order to enhance quality management capabilities of functional team members by
conducting some practices such as providing them with weekly or monthly assignments.

Quality Award Models:

Chase Up which come under this category are considered as firms dominant on the
market and as a universal champion with their products and services. Chase Up aim to
provide others with a benchmark for the effective quality performance, and organisations
that followed this category are defining quality as the process of achieving the overall
satisfaction of customers. The influences of models of quality award on services institutions
and clarified that Chase Up utilised different tool such as process reengineering, and packages
of computer software's in order to enhance their performance with reference to their quality
characteristics.