Marketing Analysis : Nisa Retail Limited Company Background

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1.1 Introduction
The purpose of this chapter is to provide a brief background to this thesis including Nisa Retail Limited company background, the background of UK convenience store industry, Nisa’s profitable convenience store delivery problem background. The chapter also details the aim and objectives, the scope and limitation, and the overall structure of this thesis.
1.2 Company background
Developed from Nisa-Today’s, Nisa Retail Limited is a symbol group of independent small grocery shops and wholesalers in the UK. As a company owned by its members, the operating idea of Nisa Retail Limited is to use collective buying power of the large group of members to negotiate deals with suppliers. Nisa Retail is involved in the sourcing,
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Table 1. Nisa Finance performance (Adopted from Fame-report, 2016) year Turnover (£) profit (loss) before taxation (£)
2006 1,017,369,000 1,073,000
2007 1,079,677,000 1,371,000
2008 1,142,965,000 3,109,000
2009 1,268,886,000 2,482,000
2010 1,420,473,000 483,000
2011 1,515,632,000 1,747,000
2012 1,579,097,000 3,810,000
2013 1,426,003,000 3,301,000
2014 1,575,730,000 5,264,000
2015 1,332,554,000 - 11,251,000

Figure 1. Nisa Finance performance (Adopted from Fame-report, 2016)
As a buying group, Nisa considers procurement operation and buying power as its competitive advantages. Thus, Nisa outsource its logistics operations solely to DHL through an open book contract, with the exception that Ferryspeed manages Nisa’s Channel Islands freight. To be more specific, every week DHL will send Nisa a logistics operation invoice which contains all detail cost of weekly operation. For instance, the distribution cost, out-bases cost, handling and storage cost, property cost, and administration cost of every individual depot are listed and detailed in the invoice. Such operation formed a close relationship between Nisa and DHL, and therefore,
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