Project on Spencer

8/9/2019 Project on Spencer

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A

ON

Brand awareness of Spencers & its comparative analysis with Big Bazaar & other

retail organizations in Lucknow city

LOVELY PROFESSIONAL UNIVERSITY

Submitted to: Submitted By:

Miss Chanjyot Kaur Mohd Fahad

Roll No. B57
http://www.spencersretail.com/index.aspxhttp://www.spencersretail.com/index.aspx


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Section- 1802

Reg. no. 10809577

ACKNOWLEDGEMENT

First of all I would like to thank the Management at Spencers Retail Ltd. for giving me the

opportunity to do my 45 days project training in their esteemed organization. I am highly

obliged to my project guide Mr. Shekhar Sharma (HR manager, Spencers Retail Ltd.)

for granting me to undertake my training at Lucknow.

I express my thanks to all Staff of the branch under whose able guidance and direction, I was

able to give shape to my training. Their constant review and excellent suggestions

throughout the project are highly commendable.

My heartfelt thanks go to all the executives who helped me gain knowledge about the actual

working and the processes involved in various departments. I have no words to express my

feeling of deep gratitude, which I owe to SWATI OBEROI DHAM who extended me

assistance, support and council without, which this project would not have been

materialized.

PROJECT GUIDE:

Mr. SHEKHAR SHARMA MOHD FAHAD


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PREFACE

I am lucky that, I got an opportunity for making the project report on Spencer Retail. I

visited the various concerns for 45 days and I prepare my project report on the topic Brand

awareness of Spencers & its comparative analysis with Big Bazaar & other retail

organizations in Lucknow city. and the study is divided into various chapters to get

knowledge. I also considered some published material on the particular topic as well as

about the concern. This helps me in boosting up my confidence and determination which

will help me to face the situation in coming years. This report is written account of what I

learnt and experienced during my survey. I wish, those going through it will not only find it

readable but also get as useful Information. The main limitation of my experience was that I

did not get the full and correct Information from the market, as many of the respondents did

not answer to my questionnaire correctly and completely.


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INTRODUCTION

Date of Establishment 1996

Revenue Rs. 10,913 crores (FY 2007) RPG Group

Market Cap Rs. 8,314 crores (2007) RPG Group

Address RPG Enterprises, CEAT Mahal, 463, Dr. Annie BesantRoad, Worli, Mumbai 400 030, Maharashtra, India

Branches Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut,Hyderabad, Vizag, Vijayawada, Aurangabad Durgapurand Kolkata
http://www.spencersretail.com/index.aspx


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Management Team R.P Goenka Chairman EmeritusHarsh Goenka ChairmanSanjiv Goenka Vice ChairmanS Bannerjee President/Chief Executive Power SectorP.K Chowdhary President/Chief Executive TyreSectorSubroto Chattopadhayay President/Chief ExecutiveEntertainment SectorP.K Mohapatra President/CEO, Technology SectorArvind Agrawal President/Chief Executive CorporateDevelopment and HR

Ramesh Chandak - President/Chief ExecutiveTransmission SectorP. Sampath Group CFO

Overview Spencers Retail is a part of the RPG Companies thatdeals with food, apparel, fashion, electronics, lifestyle

products, music and books. It operates through over350 stores. It also offers services such as gift vouchersand easy loans in association with CitiFinancialConsumerFinance India Ltd. It consists of Spencers

Hypermarkets, Spencers Super, Spencers Daily andSpencers Express.

Company History

YEAR EVENTS

1987 - The company was established in the year. The main objects of the company aremarketing and distribution manufacture of Pharmaceuticals-Aerated waters and other foodproducts- Marketing of consumer durables- Trawlers and marine products processing- Traveland shipping- Imports and Exports - Hotels and Catering- Tea estater-Chain departmentalstores-computer and computer services- Real Estates.

- M/s Kellner Pharmaceuticals Ltd., Vulcan Electricals Ltd., Spencer International HotelsLtd., Spencer, Furnitures & Furnishing, Spencer Estates Ltd., Spencer Consumer Productsand Services Ltd., Spencer Pharmaceticals Ltd., G.F.Kellner & Co. Ltd., Fiesta RestaurantLtd., Kartik Pharmaceuticals Ltd., and Spencer Information Services are the subsidiaries.


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1995 - Spencer Industrial Fund Ltd has become a Subsidiary of Spencer International HotelsLtd under provision of Section 4(1) (a) of the Companies Act, 1956 and accordingly aSubsidiary of this Company also from 24th January.

1996 - The Company has entered into a Technical Assistance cum Joint venture optionsAgreement with M/s. Dairy Farm International Holdings Ltd., a major International retailingforce operating in several countries.

1997 - During the year the company has entered into a Joint Venture agreement with DFIMauritius Limited to enter yet another Retail Format. A chain of retail drugstores, dealing inMedicines, Cosmetics, Toiletries and allied Health and Beauty products, is proposed to beset up on a nation-wide basis.

- A new company has been named as RPG Guardian Private Limited and is on a mission tolop a highly regarded retail business in India by offering excellent service and value tocustomers. The company has been set up on a 50 : 50 equity partnership basis. The total paidup capital of the company will be Rs. 450 lakhs consisting of 45,00,000 of equity shares ofRs. 10/- each.

1998 - Mr P.K. Mohapatra appointed as Managing Director w.e.f. 1st April.

- The Company's expansion into Food Retailing through the chain of Food WorldSupermarket started during 1996 made significant progress during the year. - Foodworld has

became a household name in three cities enjoying high patronage from its customers andsuppliers.

2000 - Spencer & Company, an RPG group outfit, has signed a joint venture agreement withDairy Farm International Mauritius (DFI) to launch a chain of large distributioninfrastrucutre, essentially meant to serve the small retailer.

- The Company will form a joint venture company, as a subsidiary of Spencers.

Spencer's Retail

Based in Kolkata, India, Spencer's Retail is one of the country's fastest growing retailcompanies with approximately 2 million square feet of retail space and more than 400 stores

in 65 cities. Products include food, apparel, electronics, lifestyle products, music, and books.Spencer's Retail is a division of RPG Enterprise, a business group with more than 20companies in industries such as power, technology, retail, and entertainment. Established in1979, RPG Enterprises has annual revenue of $3.25 billion.

Customer Challenges

1. Enable rapid business expansion

2. Improve performance

3. Add room for growth

4. Ensure IT systems' availability
http://www.rpggroup.com/sretail.htmlhttp://www.rpggroup.com/sretail.htmlhttp://www.rpggroup.com/sretail.html


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Solution

Spencer's Retail based its production environment on Sun SPARC Enterprise servers that run

SAP ERP software. The infrastructure includes Sun storage solutions and a remote disaster

recovery site with Sun SPARC Enterprise and Sun Fire servers. When implementation is

complete, more than 350 stores will connect to the new system.

Business Results

1. Improved performance

2. Increased scalability

3. Ensured IT systems' availability4. Reduced space and power requirements

Products and Services

1. Sun SPARC Enterprise M5000Server2. Sun SPARC Enterprise M4000Server3. Sun SPARC Enterprise T5120

Server4. Sun Fire V490 Server5. Sun Storage Tek 6540 Array6. Sun Storage Tek 6140 Array7. Sun Storage Tek SL500 ModularLibrary System8. Solaris 10 Operating System9. Solaris Cluster 3.210. Sun Storage Tek Data ReplicatorSoftware

Related Customer Success Stories

1. Out spark Increases System Uptimeand Performance, Cuts Power Consumptionand Costs with Sun Server Solution2. Sun Unified Storage Helps ElandersReduce Costs and Increase Performance

3. Ivan Smith Furniture Deploys aJava-Based Reporting System from MCMSoftware4. View all Customer Success Stories

Story Details

Spencer's Retail in India is in an enviable but challenging position instead of trying togenerate new business, it is struggling to keep up with explosive growth. Approximately twoyears ago, the company had approximately 60 stores and 4,000 employees; today, it hasmore than 350 stores and 15,000 employees.
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By 2004 the retail industry was growing rapidly in India, and Spencer's Retail decided topursue an aggressive expansion strategy. The company had the customers, the products, andthe employees to make it happen. It just needed an IT infrastructure that could support rapidgrowth. Current servers were at capacity, and the company needed to upgrade before addingnew stores. Amit Mukerjee, Group CIO of the RPG Group, describes the challenge as part ofthe learning curve for retail development in India. Retailing is a new business in thiscountry. As the business matures, the process matures, and IT systems must evolveaccordingly.

" One benefit for us with Sun Microsystems is its understanding of retail and its ability toarchitect a solution for this type of business. The second benefit is that Sun has thetechnology to support a transaction-intensive environment, and it can provide us a

solution that can handle large amounts of data so that business runs smoothly. " Amit Mukherjee, Group CIO, RPG Group

The company also needed an enterprise resource planning (ERP) solution to handle criticalprocesses such as supply-chain management. It decided to implement mySAP ERP, nowcalled SAP ERP, and realized the solution needed to run on high-performance servers.Spencer's Retail evaluated several possibilities, including servers from HP, IBM, and SunMicrosystems. It decided to build its IT infrastructure on Sun systems for several reasons.Sun SPARC Enterprise Servers had the performance and scalability needed to sustain its

business, and they delivered higher performance at less cost. Sun's knowledge of the retailspace in India, as well as its long history with RGP Enterprises, were also deciding factors.

Spencer's Retail chose Sun SPARC Enterprise M5000 servers with four dual-core 2.1 GHzSPARC 64 VI processors as the center of its production environment. Designed forconsolidation and virtualization, Sun SPARC Enterprise Servers bring mainframe-classutilization and efficiency levels to the open systems market. Supporting hardware partitionsand Solaris Containers, these systems deliver deliver 24/7 mission-critical services whilereducing power, cooling, and space requirements.

After an eight-month testing period beginning in early 2005, the company installed the SAPERP database software on two Sun SPARC Enterprise M5000 servers in a high-availabilitycluster with Sun Cluster 3.2 software. The disaster recovery solution ensures businesscontinuity with advanced failover protection.The cluster is connected to a Sun StorageTek6540 array through a Dell Brocade SW200E Switch. ASun StorageTek SL500 Modular

Library System is used for data backup as well. The solution also includes Sun SPARCEnterprise T5120, Sun SPARC Enterprise M4000, and Sun Fire V490 servers used tosupport both production and quality assurance functions.

Spencer's Retail has rolled out its SAP solution to approximately 160 stores and expects tocomplete deployment to more than 350 stores by October 2008. The company purchased theSunSpectrum Enterprise Service Plan to help support the ambitious project. Indranil Guha,head of the ERP data center at Spencer & Co. says, We are always in touch with Sun; wework with it as a partner. Good customer service is very important to us, because we run ourentire business on Sun servers.


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The company is meeting its initial goals for a high-performance solution with room forgrowth. It has already observed that data transactions run as much as five times faster on thenew systems. And it estimates that its current solution can easily handle up to 1,000 stores.The company also appreciates that the more energy-efficient and compact design will reducespace and power requirements.

Spencer's Retail plans to enhance its IT environment further with a new disaster recoverysite, which will include Sun Fire V890 servers and Sun SPARC Enterprise T5120 serversrunning Solaris Cluster software connected to a StorageTek 6140 array. It will also use SunStorageTek Data Replicator Software software to mirror data between the productionenvironment and the remote location. Together with its new server infrastructure, the disasterrecover installation will provide the high-performance, high-availability solution the

company envisioned. With its business processes running on Sun infrastructure, Spencer'sRetail can meet business growth with confidence.


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SPENCERS RETAIL LIMITED

Company ProfileCompany Profile Spencer's retail is the largest* supermarket chain in India. We offer acomplete range of products & durables, from bread to bed cover; from toothpaste to eventelevision sets. Today Spencer's has 100 stores spread across 25 cities with a retail tradingarea of more than half a million square feet, and we're growing rapidly. Spencer's is theshopping choice for millions across the country, 2.8 million to be exact, who frequent ourstores every month.

Today Spencer's offers its customers a customized and convenient shopping experience in 5different formats. Each format, namely the Spencer's Express, Spencer's Fresh, Spencer'sDaily, Spencer's Super and Spencer's Hyper is differently sized and caters to the variousneeds of our consumers. We at Spencer's offer a pleasant and delightful shopping experience

by ensuring convenient store locations, trusted quality, great value for money and a widearray of products. And these qualities characterize all of our 100 stores, across the country.

Technology in Retail: The ERP Initiative at Spencer's Retail Ltd.

Over the years, during the turn of twentieth century as the consumer demand increased andthe retailers geared up to meet this increase world over, technology evolved rapidly to

support this growth. The hardware and software tools that have now become almost essentialfor retailing can be classified into 3 broad categories:

Customer Interfacing Systems

Bar Coding and Scanners

Point of Sale (POS) systems use scanners and bar coding to identify an item, use pre-stored data to calculate the cost and generate the total bill for a client.

Payment

Payment through credit cards has become quite widespread and this enables a fastand easy payment process. Electronic cheque conversion, a recent development in

this area, processes a cheque electronically by transmitting transaction information tothe retailer and consumer's bank.

Internet

Internet is also rapidly evolving as a customer interface, removing the need of acustomer physically visiting the store.

Operation Support Systems

ERP System


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Various Enterprise Resource Planning (ERP) vendors have developed retail-specificsystems which help in integrating all the functions from warehousing to distribution,front and back office store systems and merchandising. An integrated supply chainhelps the retailer in maintaining his stocks, getting his supplies on time, preventingstock-outs and thus reducing his costs, while servicing the customer better.

CRM Systems

The rise of loyalty programs, mail order and the Internet has provided retailers withreal access to consumer data. Data warehousing and mining technologies offersretailers the tools they need to make sense of their consumer data and apply it to

business.

Advanced Planning and Scheduling SystemsAPS systems can provide improved control across the supply chain, all the way fromraw material suppliers, right through to the retail shelf. They enable consolidation ofactivities such as long term budgeting, monthly forecasting, weekly factoryscheduling and daily distribution scheduling into one overall planning process usinga single set of data.

Strategic Decision Support Systems

Store Site Location

Demographics and buying patterns of residents of an area can be used to comparevarious possible sites for opening new stores. Today, software packages are helpingretailers not only in their locational decisions but in decisions regarding store sizingand floor-spaces as well.

Visual Merchandising

The decision on how to place and stack items in a store is no more taken on the gutfeel of the store manager. A larger number of visual merchandising tools areavailable to him to evaluate the impact of his stacking options

To manage this kind of growth, it was necessary to move out of legacy systems, as theydidn't provide the scalability that was needed. Plus, some of its stores are currently working

on as many as four different legacy systems, managing which was very difficult. It needed asolution to manage everything under one umbrella. So it engaged a team of experts toevaluate various solutions in the market. Spencer's found that SAP came closest to fulfillingits needs. Project Shakti has been operating for the last two years out of Chennai and it hasalready gone live in seven States Andhra Pradesh (Vizag since 17 November 2006),Haryana (Gurgaon, since March 08, 2007), Maharashtra, Gujarat, West Bengal, Jharkhand,and Karnataka (Bangalore, since 1 July 2008). Spencer's Retail has rolled out its SAPsolution to approximately 207 stores and expects to complete deployment to more than 350stores by October 2008. While 53% stores run on SAP, 28% stores run on Oracle and 18%stores run on FoxPro.They are using the latest MySAP ERP IS Retail ECC 6.0 for theiroperations in Books & Beyond, and are gradually migrating the rest to SAP.


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At RPG, the businesses are divided into three entities (Spencer's, Music World and Books &Beyond). Spencer's business is basically procurement of articles from respective distributioncentres (DC) and selling to customers. The DCs in turn would be procuring articles based onthe site's need from different vendors. The business processes covered under this are

purchase, sales, inventory controlling along with financial accounting. The challenges facedduring the implementation are managing the different pricing procedures which change veryrapidly, managing the promotions; automation of the POS information, high volume ofinformation to be processed, GMROI (Gross Margin Return on Investment) etc.

They have followed SAP Methodology during the course of this implementation. TheProject leader from SAP India gathered the necessary KPI's, Dimensions and reports fromthe functional consultants. Based on these inputs he prepared a Data Model and the Blue

Print. Taking this Blue print as input the team at RPG was responsible in preparing thetechnical specs and also realize/develop the objects.

With ERP, high-availability is a challenge as the network over which the data travels from,say, a datacenter to the store is not within its control and belongs to an external agency.Spencer's ERP datacenter is based out of Kolkata along with the business warehousingservers. For data processing, they have 'staging servers'. These are intermediary servers tostore data temporarily before moving it to the SAP Production server. Eventually, all storesand warehouses across all locations will be integrated with its datacenter and shall beworking on a real-time basis, except for the PoS billing system. At the end of each workingday, the data is sent to the parent datacenter for processing and analytics.

In its legacy systems, they have deployed solutions like SAS and SAPZone. They use themto do bill-value and time analysis. They are also using MySAP Business Warehousing BW7.0 for analytics. While their aggregated sales data goes to the SAP production server, thenon-aggregated data goes to the business warehousing server for analytics at Kolkata. Thelatter helps them analyze customer buying patterns. The former data helps them manageinventory, stock

keeping, etc. While some basic infrastructure is in place already, they are graduallyimplementing business intelligence into their system in due course.

An important pillar of retail business is ERP, which has three elements People, Process and

Technology. The People part is most difficult to manage as it needs to recruit, train andmotivate people constantly, generate awareness and do change management. This makes thetask more challenging, as it needs to manage deployments in such a dynamic environmentkeeping pace with the company's exponential growth plans.

OperationsSpencer's has retail footage of over 1 million square feet and over 275 Spencer's stores in 50cities. The company operates through the following formats:

The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ftin size. They offer everything under one roof. The merchandise ranges from


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fruits & vegetables, processed foods (Ready to Eat, Ready to Cook, FMCGproducts),specialty foods including international, sugar free, organic foods,etc...groceries, meat, chicken, fish, bakery, chilled and frozen foods,garments, consumer electronics & electrical products, home care, home dcor& home needs, office stationeries, soft toys. Besides, the stores also comprise

book & music retailing, electronic gadgets and IT accessories. On an average,a Spencer's hyper stocks 70,000 SKUs across 35,000 items.

The Spencer's stores are neighborhood stores ranging from 1500 less than15000 sq. ft. These stores stock the necessary range and assortment in fruitand vegetables, fmcg food and non-food, staples and frozen foods and cater to

the daily and weekly top-up shopping needs of the consumer. Some of thesestores which have floor area of more than 10,000 sq ft sometimes offer homecare products; personal care products, bakery, chilled and frozen food; babycare, basics in garments and limited range of electronics and electrical.

New Ventures

Spencers Retail has announced a tie-up with British retailer Woolworths Plc forexclusively selling its famous toy brand Chad Valley through its outlets.

Besides the Chad Valley range of toys (available at prices Rs.49upwards).Woolworths is also planning to introduce the Ladybird range of Kids wear.

VisionTo build Spencers as the most professionally managed retail business in the countrythrough:

Excellence in all operating process; Nurturing and facilitating a learning and growth culture;

Building a unique retail experience for the customers.

MissionStrives to exceed the aspirations of its customers for a healthy and fulfilling lifestyle by

providing:

The most innovative customer goods and delectable taste experience. The ultimate shopping experience.


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Unbeatable value. The next place away from home or office to relax and indulge themselves.

Major Investment plan1. It will be going in for a public issue within the next 12 months to raise capital forexpansion.

2. The company will be investing Rs.10 billion over the next three years using bothinternal sources and an IPO.3. The company has already reserved 1 million sq ft of space all over the countryand will be creating close to 10,000 jobs in its different formats.4. Spencers Retail currently employs 4,500 people and has 6 million sq ft of space.

Formats of Spencers outlets


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Spencers has retail footage over 2 million square feet and over 400 Spencers stores in65 cities.

The Company operates through the following formats:

1. Spencers Hypermarkets: A fast growing retail network of hypermarkets withlarge format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad,Vizag, Vijaywada, Aurangabad, Durgapur and Kolkata.

2. Spencers super: One of the largest supermarket chains in the food and grocerysegment in India.

3. Spencers Daily: Small format stores conveniently located with a range of productsto meet daily household needs.

4. Spencers express: Food and grocery store next door.


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Spencers Daily

Fresh Fruit Stall Market stall

Manton Market

The Spencers Daily store is a friendly neighborhood store, which caters to the entiredaily shopping needs- from regular groceries to fresh food and also weekly top-up

shopping.

It is about 4000-7000 sq ft in size and with a bright and friendly atmosphere;

Spencers Daily saves the hassle of bargaining with the local kirana shop owners

(because it offers the lowest possible prices).
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Spencers Express
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Spencers Express is a store next door for the fresh needs at arms length. These stores are around 1000 sq ft in size. They are open from 7 am to 9 pm and also

provides with home delivery.

The Express stores stock dairy, fruit and vegetables, bread and bread products, cut

vegetables/ready to cook, fruit juice, fresh batter, fresh coffee/tea, fresh masalas,

fresh pickles, fresh Ghee, fresh Fish and meat.

Spencers Fresh


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Spencers fresh stores provide with an enjoyable and convenient

shopping environment in very own neighborhood. These 2000 sq ft.

air conditioned stores are well stocked with Fresh food of very best

quality, such as fresh farm produce, vegetables, fruit, milk, eggs,

breads and much more. With an impressive range and a clean, bright

and hygienic ambience, Spencers Fresh is far better the regular sabzi

mandis or local vegetables markets and at Spencers.

Fresh consumers not only do get fresh, clean and tasty farm produce

but also the lowest possible prices in the locality, yes even lower than

sabziwala!

Spencers Super


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The Spencers Super is the place to go for the monthly shopping.

About 8000-15000 sq ft. in size, the Spencers Super not only caters to the

daily needs but also stocks home care products; personal care products,

Bakery, Chilled and frozen food; Baby care besides groceries & staples, Freshfruits and vegetables.
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Spencers Hyper

The Spencers Hypermarkets are huge destination stores, more than 25,000

sq ft. in trading area. Shoppers come here looking for fantastic deals across

all categories.


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Hypermarkets ensure a comfortable, clean, bright and functional ambience

to shop along with the convenience of finding everything under one roof at

the best value for money.

Indias first modern format hypermarket was opened by Spencers in

Hyderabad in January 2001. Located over an area of 1,20,000 sq.ft., the storehas a trading area of 36,000 sq.ft. The Spencers hypermarkets, located acrossthe country, are open throughout the day, seven days a week, 365 days a year.

Spencers already employ over 9000 employees across 60 cities. Roughly 1/3rd

of the team are women.

Spencers began its operations in India way back in 1863 and since then hasremained a part of the lives of Indian consumers. 145 years later, theSpencers name still evokes special memory of authentic quality at affordableprices.

Currently, RPGs Retail activity comprises Spencers Retail, RPG Cellucom, Books& Beyond and MusicWorld. RPGs total retail outlets are more than Thetotal area of all Spencers stores across the country is over .. sq.ft. Spencerscurrently has a national consumer base of over 48 million people, who walk intothe store every year.

Snapshot

Different Formats of Spencers


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Format Stocks Minimum Trading

Area (sq. ft.)

Spencers Express dairy, fruit and vegetables, bread and bread

products, fruit juice, fresh batter, fresh

coffee/tea, masalas, pickles, Ghee, Fish and

meat.

1000

Spencers Fresh vegetables, fruit, milk, eggs, breads 2000

Spencers daily regular groceries 4000-7000

Spencers Super home care products; personal care

products, Bakery, Chilled and frozen food;

Baby care products

8000-15000

Spencers Hyper Miscellaneous More than 25000


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Big Bazaar

Big Bazaar is not just another hypermarket. It caters to every need of your family. Where

Big Bazaar scores over other stores is its value for money proposition for the Indiancustomers.

At Big Bazaar, you will definitely get the best products at the best prices - thats what weguarantee. With the ever increasing array of private labels, it has opened the doors into theworld of fashion and general merchandise including home furnishings, utensils, crockery,cutlery, sports goods and much more at prices that will surprise you. And this is just the

beginning. Big Bazaar plans to add much more to complete your shopping experience.

The Big Bazaar is the discount store which offers a wide range of products under one roof.The products include apparels and non-apparels such as utensils, sports goods and footwear.The Food Bazaar provides a range of food and grocery products ranging from fresh fruitsand vegetables, staples, FMCG products and ready-to-cook products. The Central offers achain of stores including books and music stores, global brands in fashion, sports andlifestyle accessories, grocery store and restaurants. The Group's other formats include,Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar andStar and Sitara. It also operates an online portal, futurebazaar.com.


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Other Retail Stores

What started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is

today a conglomerate encompassing 180 showrooms in 100 cities / 24 states. Indias first

hyper-market has also been opened for the Indian consumer by Vishal. Situated in the

national capital Delhi this store boasts of the singe largest collection of goods and

commodities sold under one roof in India.

The group had a turnover ofRs. 1463.12 million for fiscal 2005, under the dynamicleadership of Mr.Ram Chandra Agarwal . The group had a turnover of Rs 2884.43 million

for fiscal 2006 and Rs. 6026.53 million for fiscal 2007.

The groups prime focus is on retailing. The Vishal stores offer affordable family fashion at

prices to suit every pocket.

The groups philosophy is integration and towards this end has initiated backward

integration in the field of high fashion by setting up a state of the art manufacturing facility

to support its retail endeavors.

Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price

ranges. The showrooms have over 70,000 products range which fulfills all your household

needs, and can be catered to under one roof. It is covering about 29, 90, 146 sq. ft. in 24

states across India. Each store gives you international quality goods and prices hard to

match. The cost benefits that is derived from the large central purchase of goods and services

is passed on to the consumer.
http://www.vishalmegamart.net/index.htm


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Reliance Retail, Ltd. operates retail outlets in India. Its retail outlets offer foods, groceries,

apparel and footwear, lifestyle and home improvement products, electronic goods, and farm

implements and inputs. The companys outlets also provide vegetables, fruits, and flowers. It

focuses on consumer goods, consumer durables, travel services, energy, entertainment and

leisure, and health and well-being products, as well as on educational products and services.

The company was founded in 2006 and is based in Mumbai, India. Reliance Retail, Ltd.

operates as a subsidiary of Reliance Industries, Ltd.

Subhiksha was an Indian retail chain with 1600 outlets selling groceries, fruits, vegetables,

medicines and mobile phones. It was started and is managed by R Subramaniam, an IIM

Ahmedabad alumnus. Subhiksha plans to open 1000 outlets by December 2008.[1] He also

plans to invest Rs.500 crore to increase the number of outlets to 2000 across the country by

2009.its turn over was 2305 crore in financial year 2008.

The name Subhiksha means prosperity in Sanskrit. It opened its first store in Thiruvanmiyur

in Chennai in March, 1997 with an investment of about Rs. 5 lakhs. The retail chain has seena considerable growth by offering goods at cheaper rates and there by increasing its customer

base. It is also dubbed as India's largest retail chain.vision to deliver consistently better value

to Indian consumers, has guided Subhiksha to deliver savings to all consumers on each and

every item that they need in their daily lives, 365 days a year, without any compromise on

quality of goods purchased.

Subhiksha now has the pan Indian presence with stores across Delhi, UP, Punjab, Haryana,

Gujarat, Maharashtra, AP, Karnataka and TN. It has recently commenced operation in

Kerala also. Today, it is a multi-locational, professionally managed and vibrant organization.
http://en.wikipedia.org/wiki/Retail_chainhttp://en.wikipedia.org/wiki/R_Subramaniamhttp://en.wikipedia.org/wiki/IIM_Ahmedabadhttp://en.wikipedia.org/wiki/IIM_Ahmedabadhttp://en.wikipedia.org/wiki/Sanskrithttp://en.wikipedia.org/wiki/Thiruvanmiyurhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Retail_chainhttp://en.wikipedia.org/wiki/R_Subramaniamhttp://en.wikipedia.org/wiki/IIM_Ahmedabadhttp://en.wikipedia.org/wiki/IIM_Ahmedabadhttp://en.wikipedia.org/wiki/Sanskrithttp://en.wikipedia.org/wiki/Thiruvanmiyurhttp://en.wikipedia.org/wiki/Chennai


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Subhiksha now has even opened Specialised Mobile shops called Subhiksha Mobile wheremobiles are sold at a discounted price.

As of January 2009, Subhiksha has been facing severe financial crises pertaining to liquidity.

This has led to the shutting down of a large number of stores across the Nation.

OBJECTIVES OF THE STUDY

This project is based on the comparative study of consumer behavior towards Brand

awareness of Spencers and its comparative analysis with Big Bazaar & other retail

organizations in Lucknow city. Objectives of the study are:

To study about the Brand awareness of Spencers.

To analyze the organized retailers profitability drivers on the basis of Garments,Gifts, Cards & Music Department.

SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite of the fact thatlearning is all pervasive in our lives, psychologists do not agree on how learning takes place.How individuals learn is a matter of interest to marketers. They want to teach retailers in

their roles as their roles as consumers. They want retailers to learn about their products,product attributes, potential consumers benefit, how to use, maintain or even dispose of theproduct and new ways of behaving that will satisfy not only the consumers needs, but themarketers objectives.

The scope of my study restricts itself to the Brand awareness of Spencers and its

comparative analysis with Big Bazaar & other retail organizations in Lucknow city. The

scope of my study is also restricts itself to Lucknow city only. The scope of my study

restricts itself to analyze the organized retailers profitability drivers on the basis of

Garments, Gifts, Cards & Music Department where as in the recent trend it's seen that the


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key players in retail industry are more emphasizing on the Garments, Personal grooming,Home furnishings, Life style and footwear Department in their Stores.

Research Methodology

This chapter describes the methodology of the study. This project is based on information

collected from primary sources. After the detailed study, an attempt has been made to

present Brand awareness of Spencers and its comparative analysis with Big Bazaar & other

retail organizations towards the people. The data had been used to cover various aspects like

price of various commodities available at Spencers and Big bazaar. In collecting requisite

data and information regarding the topic selected, I went to the outlets of Spencers, Big

Bazaar & Vishal Mega Mart of Lucknow city and collected the data.

Survey design:

The study is a cross sectional study because the data were collected at a single point of time.

For the purpose of present study a related sample of population was selected on the basis of

convenience.

Sample Size and Design:

A sample of 100 peoples & 3 stores was taken on the basis of convenience. The actual

customers were contacted on the basis of random sampling.


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Research Period:

Research work is only carried for3 weeks.

Research Instrument:

This work is carried out through face to face survey &self-administered questionnaires. The

questions included were open ended, dichotomous and offered multiple choices.

Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases:

Primary Source: The primary data comprises information survey of Brand

awareness of Spencers and its comparative analysis with Big Bazaar & other retail

organizations . The data has been collected directly from respondent & with thehelp of structured questionnaires.

Secondary Source: The secondary data was collected from Companys website and

price list of the companies.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematical

techniques. The technique that I have used is pie graphs, Bar graphs, with MS Excel

& SPSS.

LIMITATIONS OF THE STUDY


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In attempt to make this project authentic and reliable, every possible aspect of the topic was

kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of

this project. The main limitations are as follows:

Due to limitation of time only 100 people & 3 stores were selected for the study. So

the sample of people & stores was not enough to generalize the findings of the study.

The main source of data for the study was primary data with the help of self-

administered questionnaires. Hence, the chances of unbiased information are less.

Retailers were hesitant to disclose the true facts.

Survey on Spencers retail

What is the thought of people about Spencers retail?

1. Have you heard of Spencers?

Yes 93

No 7


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2. Have you visited Lucknow city Spencers earlier?

Yes 90

No 10

3. Visited Lucknow Spencers once, twice or more?

Once 12

Twice 19

More than Twice 69

4. Peoples not visited to local retail stores?

Local shops 10.0

Big Bazaar 20.0

Any other stores 70.0


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5. Spencers products range available to customers?

Spencers 3%

Big Bazaar 5%

Vishal Mega Mart 15%

Others 77%

6. Spencers in FMCG?

Spencers 67%

Big Bazaar 25%

Vishal Mega Mart 8%

7. Spencers in garments?

Yes 8

No 92


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8. Spencers in F & V?

Yes 22

No 78

Findings

Spencers have good brand awareness among the consumers.

Big Bazaar has better product range than Spencers.

Big Bazaar have greater acceptance among the consumers in comparison to

Spencers.

FMCG products have major acceptance of all offerings of Spencers among

consumers.

The consumers are not much satisfied of the offers introduced by Spencers.

Big Bazaar has better promotional schemes than Spencers.


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Data Analysis and Interpretation

ANALYSIS OF THE STUDY ON SPENCER RETAIL

Types of Customer:

Spencer is a major player in the Indian organized retail industry. They have a good customer

base in the high class level income group. Mainly they are focusing on the Men-Women-

Kids Apparel, gifts and also in the home furnishing products. They have huge music, cards

or cookery departments.

TYPES OF TARGET CUTOMER

HIGH GRADE INCOME LEVEL 75%


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MEDIUM GRADE INCOME LEVEL 20%

AVEREGE GRADE INCOME LEVEL 5%

From the above the analysis its revealed that though a very few numbers of low grade

income level customers are visiting the garment section but in the gifts section we have

found that the products are unreachable for the average level income groups.

Flow of customer in different departments:

Here we have analyzed the flow of customers per day basis. For this reason we have studied

customer flows on an average of high customer flow days.

In Spencer we have found that the average customer flow lies between 650-700 on averagehigh customer flow day.

The main products categories in Spencer basically the Music and home furnishing products

related to gifts items. We have found that in the case of garments department customer flow

is 350 per day bases and in the case of gifts departments its 600 to 700 per day basis. Its

noted that the gifts department consists of exclusive products.

Value of Stock in the different department:

Inter-Department Customer Flow

DEPARTMENT NUMBER OF CUSTOMER

GARMENTS DEPARTMENT 350

GIFTS DEPARTMENT 700

MUSIC DEPARTMENT 900


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The garment

section is divided

into Men, women

and kids section

as well as lifestyle accessories and shoe wears. They have all the major brands like

Blackberry, Louis Phillips, Lee Coopers, Van Hausen, Parx, Lee for in the men category,

Melanga, Code, Ginger in the women category and for the kids section they have brands like

Bossini, Benetton, Orchestra, Juniors, Teeny Tiny, Artex etc.

The garments section includes:

1. Watch section for the brands like Fast track, Zodiac, Hugo-boss, Nautica, Marie

Claire, Casio, Guess, GC, Kenneth Cole, Aspen, Skagen, Levis, Adidas etc.

2. Sunglass section for the brands like Ferrari, Mojo, Mont blanc, Scott, Guess etc.

3. Fashion accessories for the brands like Tribal Zone, Sarah, Fire Fly, Adrika,Earrings, Necklace, Bracelet, Anklet, Bangles, Hair Clips, Bra Straps, Scrunges,

Mens Jewelry, Kids Fashion.

All these product range are exclusively for the High grade income level customers.

The gifts section is consisting of high class home furnishings and personal grooming

products. They are introducing it by the name of Home Centre. Its a one-stop destination

for furniture, home ware and home furnishings that enterprises elegance, luxury and

individuality. Home Centre houses a wide range of contemporary and classic furniture, linenas well as other home accessories, thus providing customers a high range product.

Revenue generated by the different department:

REVENUE PER

DEPARTMENTIn 2007-08 (Rs)

VALUE OF THE STOCK

DEPARTMENT (Rs)





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TOTAL 12500000

The average revenue earned per customer basis is more Rs.15000. Comparison of revenue

generated by the each department is taken into consideration on an average of high customer

flow days.

From the above analysis its found that the average customers in the all departments are

basically high grade income level customers.

Garment Department:

Overview:

In Garment department the products are mainly the major international readymade brands

and price ranges lies between Rs.800 to Rs.2000 averagely which is meant for a few Indians

customers.

Findings:

The products exclusively for a certain income level customers. Maximum products are

unreachable for the medium and average income level customers.

Suggestions:

They are focusing a very few Indian customers and the most of the Indian consumers cant

afford this price range. So if they want to increase their market share in the Indian retail

Industry they should introduce such product range also which can be affordable for the

medium level income groups and the main customer in the retail industry lies within it.


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Gifts Department

Overview:

Gifts department is consisting of various product categories from home furnishing products

to personal grooming products.

Findings:

In the Spencer we have found a wider range of glass made and metal products which are

exclusive and also the quality isnt up to the price levels. Whatever, the stock is sufficient to

satisfy its customers but the price range is found very high as a gift product in this

department.

Suggestions:

Again the Indian retail industry is targeting the medium level income group people as its

increasing day by day but the products in the Spencer store is meant only for the high class

consumers which is very low in population in India. Also an important point is noted that

though the volume is sufficient but the variety in product categories as a gift isnt sufficient.

Music Department

Overview:

Music section consist of Music CD;s, Game CD & DVDs and also Movie DVDs.

Findings:

Spencer has introduced very low range cd & dvds like Moserbear music and movie cd-dvds and price range lies in between Rs 30 to 100. Basically they are gaining a competitive

business at the age of piracy products in this industry. Also they have a very good collectionin games cd-dvd categories at a low price range of Rs 100 to 200 whereas if anyone go to theopen market the average price range is Rs 300 to 400 for the copyright product.

Suggestions:


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Spencer is earning more revenue by its music section. In the music its found that thecollection of cds and educational cds low than the music games cds. They are emphasizingon the low price mp3 and game cds where as there is also a demand for educational andmovies cd-dvds.

Analysis of the study on Big BazaarIn the Indian Retail Scenario Big Bazaar has a great success to create a revolution. Basicallythey have differentiated their customers on the basis of customers rather than their incomelevel. Later on we will analyze these aspects. Here we are analyzing which income level ofcustomers are generally tended to purchase the products in Big Bazaar department wise:

Percentage of customers flows department wise

Type of customer Garmentsection

Gifts Section Musicsection

Cardssection

High grade income level 10% 15% 50% 7%

Medium grade income level 50% 55% 40% 53%

High grade income level 40% 30% 10% 40%

From the above details it is found that the garment section they are targeting the middle andaverage level of customers. They are not promoting any major brands and they have theirown brand towards the major brands in garments industry. Flow of high level of customers Imusic section is better than the other department. Generally upper middle and medium classand also a good percentage of average income level customers visits their old departments.

Flow of customers in different departments:Here we have analyzed the flow of customers per day basis. For this reason studied customerflows on an average of high customer flow days.

Inter-Department Customer Flow

Department Number of customer

Garments Department 1600


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Gifts Department 600

Cards Department 250

Music Department 800

With the study of customer flow in Big Bazaar on an average of high customer flow day wecame to know that its basically lies between 2000-2500 customers per day. Here we talkingthe customers who are generating revenues for these departments.

From the above figures its executed that flow of customers in garment department isrelatively higher than the other departments. One significant difference is noted than theothers retail is that they have placed their music department at the front of cash counters andintroduced low range of music cds and game dvds for the all category customers whichincreased customers the flow in the music department.

Value of stock in the different departments:

We have chosen 4 departments from Spencers store and estimated the valuation of averagestock with the assumption details provided by the branch operation stuffs.

Value of thestock

The garmentsection is

divided into men, women and kids section. They have also a discount section only for thegarments. In this section they are selling the old or rejected stocks of major brands at 40-50% discount rate. The value of stock in garment is being overflowed at the time of winterseason and tends to double the value of stock. Normally they are maintain a stock value of16.3 to 17 crore value of stock bus it increase at the time of winter to more than 40 crore.

Department (Rs)






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Value of stock of the others departments:

In some big retails its seen that they are including some cookery, home furnishings and lifestyle products in their gifts section. Big Bazaar is maintaining a low stock but more productcategories in their gifts section and generating remarkable revenue from this.

Stock of music department is overflowed with low products. Their stock have a potential toearn revenue from all categories as prices of products in this department lies between Rs 30,to Rs 400 approximately.

Revenue generated by the different departments:

To find out the profitability drivers we have compared the revenue generated by differentdepartments on the basis of 2004-2005 to 2008-2009.For this study we have consideredaverage revenue of a high customer flow day by the income level customers.

Revenue perdepartment

2004-2005 2007-2008

Garment department 90000 300000

Gifts department 42000 180000

Cards department 2000 1800

Music department 19000 40000

Total 153000 521800


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From the above study its revealed that at the time of inception of the organized retail in Indiain the year of 2004-2005, only the high grade and upper medium grade income levelcustomers were tends to go the retails. So the maximum portion of revenues generates fromthese two groups only in the year of 2004-2005.

The change in revenue of garment department and in the gifts department from the year2004-2005 to 2007-2008 is significant because Big Bazaar is shifted products towards theown manufactured brands and they became successful to establish their own brands in thegarment retail industry.

A measurable changes found in the cards department is the revenues as well as the stock isdecreasing day by day because of changing customer preferences towards informationtechnology enabled services like SMS, MMS & E-mails.

Facts and findingsFrom the above analysis its found that the average customers in the all departments are the

all income level people in Big Bazaar. Meanwhile their main customer base is upper, middleand average level income customers.

Garment Department

Overview:

In Garment department the products are mainly their own brands an price range lies betweenRs 99 to Rs 800 averagely which is very reasonable for the middle class, average and alsolow level income group peoples. The stock in this section is fair to satisfy its customer needsand attracts window shoppers to become a potential customer.

Findings:

The main facts that we have found in the garment section is that Big Bazaar mainly focusingon the low range products with their own brands. All the times they are giving specialdiscounts on all the garments products. They have adopted tricks like Buy 2 get 3, Buy 3get 5 which looks like as if you buy 2 will get more 3 but the actual fact is that if you buy 2

products will get 1 free as total you will get 3. Its a very strategic and attractive offerspecially adopted by Big Bazaar. They have also a section they are selling the branded highclass garments at a high discount rate of 50 to 60 percent.

Suggestions:

After discussing all the profit factors it can be suggest that as they have a good high incomelevel customer level flow in the others departments like in the furniture and grocery


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department they can introduce a wider range of branded products in the garment section asthis income is conscious about the brand that they are using.

Gifts Department

Overview:

Gift department is consisting of various product categories from home furnishing productspersonal using products. According to Big Bazaar now a days no one can define whichsection should be referred as a gifts section. Customer preference is changing day by daywith the increased product categories.

Findings:In Big Bazaar we have found that they are also referring home furnishing products, personalcare and low range electronic products as gift products and basically it depends on thecustomers need and choice. The whole gift section is able to satisfy the all level of incomegroups as they have a large collection of product categories but with a limited stock of same

products. A noted strategy is taken in gifts department is that they are selling a large varietiesof products with a limited stock which helps them to implement a good stock turn over ratioand generating good revenue from this department.

Suggestions:

Big Bazaar can focus on stocks of gifts though the stock varieties is remarkable but within

the same category the stock is not appreciable.Music Department

Overview:

Music section consist of Music CD;s, Game CD & DVDs and also Movie DVDs.

Findings:

Big Bazaar has introduced very low range cd & dvds like Moserbear music and movie cd-dvds and price range lies in between Rs 30 to 100. Basically they are gaining a competitive

business at the age of piracy products in this industry. Also they have a very good collectionin games cd-dvd categories at a low price range of Rs 100 to 200 whereas if anyone go to theopen market the average price range is Rs 300 to 400 for the copyright product.

Suggestions:

In the music its found that the collection of cds and educational cds low than the musicgames cds. They are emphasizing on the low price mp3 and game cds where as there is alsoa demand for educational and movies cd-dvds.


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Analysis of the study on Vishal Mega MartTypes of customer:

There are three types of consumer in the Indian retail market. Vishal mega mart is a firmbeliever of that the middle class and upper middle class are the potential customer in theirproduct categories.

Here we are analyzing which income level of customers are generally tend to purchase theproducts department wise:

Percentage of types of customer department wise

Type of customer Garmentsection

Giftssection

Musicsection

Cardssection

High grade income level 10 40 60 0

Medium grade income level 60 50 30 50

Average grade income level 30 10 10 50

Type of customer

From the above details its found that the customer flows in the garment section is relatively

high rather the other sections. The focus customer group is basically medium level income

group of customers.

Flow of customers in different departments:

Here we have analyzed the flow of customer per day basis. For this reason we have studied

customer flows on an average of high customer flow days.

Inter- Department customer flow

Department Number of customer






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From the above figures its executed that flow of customer in garment departments is

relatively higher than the others departments. To determine the above study we have

considered who are spending their money on purchase of products of above said

departments. Its revealed at the time of study that they have 10 cash counters and they aremaking bills of more than 280 bills per day per counter on the above said days.

Value of stock in different department:

We have chosen departments from Vishal Mega Mart and establish the valuation of average

stock with the assumption details provided by the branch operation stuffs.

Value of the stock

Department (Rs)





Value of the stock in the Garment Departments:

The garment section is divided into men, women and kids section. The value of the stock in

the garment department is relatively much higher than the others departments is relatively

much higher than the other departments. The value of stock in winter season jumps to 18 to

20 crore and its 3 times higher than others season as normally they are maintaining a stock

of 6 crore in the others time.


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The value of the stock of the other department are relatively lower than garment department.

The stock maintained in the gifts section, basically maintained for the high and medium level

income customers.

In the cards department the stock increases at the time of Christmas an New Year eve as its

seasonal business according to the Vishal Mega Mart.

Music department is consisting of Music, movie and game cd & dvds. Its found that the

stock of game cd & dvds is higher than the others.

Revenue generated by different departments:

To find out the profitability drivers we have composed the revenue generated by different

department on the basis of 2004-2005 to 2008-2009.

For this study we have considered average revenue of a high customer flow day by the all

income level customers.

Department 2004-2005 2007-2008

Garments 50000 180000

Gifts 5000 10000

Cards 2000 1800

Music 1800 5000

Total 58800 196800


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From the above study its revealed that at the time of inception of the organized retail in India

in the year of 2005-2005, only the high grade and upper medium grade income level

customers wear tends to go to the retails only.

In the case of garments, gifts and music departments as the stock is increased, the revenue is

also increased with the market demand study of the year of 2004-05 to 2007-2008 and also

its seen that product category in the gifts and music department is relatively changing with

the increasing demand of new innovated products.

A measurable changes found in the cards department is that the revenues as well as the stock

is decreasing day by day because of changing customer preferences towards information

technology enabled services like SMS, MMS & E-mails.

FACTS AND FINDINGS

From the above analysis its found that the average customers in the all departments are the

middle grade income level customers as Vishal is mainly focusing in this segment of

customers.

Garments Department

Overview:

Product lines and the quality of the products in the Garment Section are basically for the

medium and average grade income level people and price range in this section is averagely

lies between Rs.250 to 600.

Findings :


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In the garment section we have found that products categories are not focusing the highgrade income level customers as the brand consciousness not presents in the floors. The high

grade income level people are very conscious about the brand that they are using. Basically

they are very conscious about the brand rather than the quality which isnt present in this

department.

Suggestions:

Vishal is strategically targeting the middle class customer but there is also a rash of high

grade income level customers in their stores. They should focus on this aspect that they can

turn mob into potential customer by introducing a various range of high class products in thegarment department.

Gifts Department

Overview:

Product lines and the quality of the products in the Gifts Section are basically for the high

and medium grade income level people and price range in this section is averagely lies

between Rs.500 to 800.

Findings:

In the gifts we have found that stock of gifts items is very low and also products categories

are not focusing to low grade income level customers and the gifts department is referred to

high class products.

Suggestions:

They should focus on this aspect by introducing more stocks and also a lower price range

products in the gifts section that they can also generate revenue from lower grade income

customers.

Music Department

Overview:

Music section consist of music cds, game cd & dvds and also movie dvds. Product lines

and the quality of products in the music section are basically for the high and medium grade

income level people and price range in this section is averagely lies between Rs.150 to 500.

Findings:


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In the music section we have found that they are mainly focusing on the game cds and dvdsand also the price range is also high. Again the collection of game cd and dvds is

considerable but in the case of Indian music cds the stock level is not also upto the

customers satisfactory level.

Suggestions:

Vishal should concentrate on that the music industry is passing through a high competitive

market with piracy world so the range should be such as the customer feel free to buy

original cds. Another point is that there should be a balance between the stock of their

product lines in the music department.

COMPARITIVE ANALYSIS OF THE STORES

On the basis of customer flows:


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We have considered the average of the high customer flow days.

Flow of Customer per Day

Store Name No. of Customer

Vishal Mega Mart 1600

Spencer Retail 1200

Big Bazaar 2300

Vishal Mega Mart: From the study its revealed that the average customer flow is

medium grade income level customers and average grade income level customers.

Spencer Retail: The customer flows in this store is basically refers to the high and upper

medium income level customers.

Big Bazaar: They are focusing on the all income level customers but it depends on the

departments wise also.

On the basis of stock value:

Comparison of stock value

Store Name Garments

dept

Gifts Dept Cards Dept Music Dept

Vishal Mega

Mart

65000000 250000 77500 175000

Spencer Retail 760000 5500000 175000 8060000

Big Bazaar 163000000 75000000 150000 575000

Garments Department:

The value of stock depends on the season. At the time of winter season it increases upto 2 to

3 times than the other seasons as the price of winter garments is relatively higher than

springs-summer collection.


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Vishal Mega Mart: The product in the garment section isnt exclusive and meant for the

medium to average grade income level customers. Also they arent focusing on major brands

in the garment industry. All the products are unbranded and semi branded and dont attracts

the high grade level income groups. However brand consciousness not present but the stock

volume is able to met customer satisfaction.

Spencer Retail: Product ranges are very high and meant for the high class consumers. In

Spencer there is very low stock turnover ratio.

Big Bazaar: They have their own brands in the garments department with a reasonable pricefor the upper medium, medium and average class income groups. Though brand conscious

people will think at the time purchasing but customer are satisfied with the stock and as well

as quality related to price. They have high stock turnover ratio.

Gift Department:

Vishal Mega Mart: They are not focusing on the gifts stock for the result customer flow and

revenue from this section is very low and no point is gaining for the customer satisfactory

level.

Spencer: A wider range of products is found in gifts section for the all income level people.

Though the variety in the product categories is high but the volume of stock in the same

product is low. However customers are happy with the large number of collection of gifts

items.

Big Bazaar: A very large investment in the gifts section is found at the time of study. They

are basically emphasizing on introduction of personal grooming products and home

furnishing products in the gifts section. This department is solely for the upper class

consumers and customers satisfactory level is remarkable.

Cards Department:


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Vishal Mega Mart: Stock in the department is taken care as relatively low and itsconsidered as a seasonal business.

Big Bazaar: Stock in this department is taken care as relatively low and its considered as a

seasonal business.

Spencer: It is having highest value in gift department.

Music Department:

Vishal Mega Mart: Music department is consisting of music, movies amd games cd-dvds.

the stock of game cd-dvds is higher than the others and price range is relatively not for the

medium and average income groups though they are focusing on this income group only and

a result they failed to satisfy their customer needs.

Big Bazaar: Their music department is also consisting of music, movies and games cd-dvds

and they have maintained a good balance between the stock level in all the categories. And

also a remarkable change is noted that they selling very low range products within this

copyright product categories. They customer satisfaction level is high with the fulfillment oftheir needs.

Spencer: Spencer is earning more revenue in this department than Big Bazaar & Vishal

Mega Mart in music because it is of RPG group.


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SUGGESTIONS AND RECOMMENDATIONS

In order to improve its business, Spencers should introduce more

competitive promotional schemes such as those in Big Bazaar.

The product range of Spencers should be improved in order to match

that existing in Big Bazaar.

For promotional offers, company should go for free gifts rather than

going for other ways.


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SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage

of planning and helps marketers to focus on key issues. SWOT Stands for strengths,

weaknesses, opportunities, and threats. Strengths & weaknesses are internal factors.

opportunities, and threats are external factors.

Strengths

Spencers have good brand awareness among the consumers.

Spencers in FMCG sector.

Spencers retail specialist marketing expertise.

Weaknesses

The consumers are not much satisfied of the offers introduced by Spencers.


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Big Bazaar has better product range than Spencers. Big Bazaar has better promotional schemes than Spencers.

Opportunities

To become better in the business of garments.

To be accepted by the consumers in comparison to other retail stores.

To develop better marketing strategy than retail outlets.

Threats

Big Bazaar & Vishal Mega Mart are huge threats to Spencers.

Big Bazaar have greater acceptance among the consumers in comparison to

Spencers.

Bibliography

Authors Name Book Name Place of Publication Year

Kothari, C.R. Research Methodology-

Methods and Techniques

Wiley Eastern Ltd., New Delhi

Brown, F.E. Marketing Research, a

structure for decision

making

Addison-Wesley Eastern Ltd.

Dunn Online Jean and Applied Statistics John Wiley and Sons


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Virginai A Clarck

Hooda, R.P. Statistics for Business and

Economics

Macmillan India, New Delhi

Green Pant E and Donald S.

Tull

Research for Marketing

Decisions

Wiley Eastern, New Delhi

Philip Kotler. Marketing Management Prentice Publishing Co., New

Delhi.

Shenoy, GVS et al. Quantitative Techniques

for Managerial Decision

Making

Wiles Eastern New Delhi

.

Websites

www.Spencersretail.com

www.rpggroup.com

www.scribt.com
http://www.spencersretail.com/http://www.spencersretail.com/http://www.rpggroup.com/http://www.rpggroup.com/http://www.scribt.com/http://www.scribt.com/http://www.spencersretail.com/http://www.rpggroup.com/http://www.scribt.com/


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Magazines

India today.

Business world.

Business india.

Material profile of company.

Surey.

Search engines.

www.google.com

www.search.com

www.yahoo.com

www.alvista.com

QUESTIONNAIRE

PERSONAL DETAILS
http://www.google.com/http://www.search.com/http://www.yahoo.com/http://www.alvista.com/http://www.google.com/http://www.search.com/http://www.yahoo.com/http://www.alvista.com/


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NAME:

Address:

Gender:

Phone Number:

Marital status:

Education:

Profession:

Questionnaire (General)

1. Store name:

2. Location of the Store:

(a) Mall

(b) General

(c) Densely populated area

1. Which kind of customers generally visit at your store?

(a) High grade income level

(b) Medium grade income level


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(c) Average grade income level

1. Flow of customer per day in your store:

(a) Below 500

(b) 500 to 1000

(c) 1000 to 1500

1. In which department stock is being taken care comparatively in a lightly way?

(a) Garments

(b) Gift items

(c) Cards

(d) Music

1. Does the brand consciousness of customers divert them to the different departments?


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Yes

No

2. Does the brand consciousness of customers divert them to the different departments?

Yes

No

If yes which type of customer?

Young

Old

Child

Beauty conscious people

3. Is the Information Technology helping in ROI of the store?

Yes


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NoIf yes then which features is/are motivating?

ERP

Online Adv

SAP/Tally

Informational Security

4. Does the good atmosphere in the store pick the sale up?

Yes

No

Questionnaire (Garment Department)

1. Which kind of customers generally visit at your garment section and their

flow?





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1. Revenue generated by Garment section in your store?

(a) High grade income level: Revenue in 2004-2005

Revenue in 2008-2009

(b) Medium grade income level: Revenue in 2004-05

Revenue in 2008-09

(c) Average grade income level: Revenue in 2004-05

Revenue in 2008-09

1. Is your stock efficient to revamp the customer satisfaction in your store?

Yes

No

Questionnaire (Gifts Department)

1. Which kind of customers generally visit at your gifts section and their flow?





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1. Revenue generated by Gifts section in your store?




Revenue in 2008-09


Revenue in 2008-09


Yes

No

Questionnaire (Music Department)


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1. Which kind of customers generally visit at your Music section and theirflow?




1. Revenue generated by Music section in your store?




Revenue in 2008-09


Revenue in 2008-09

1. Is your stock efficient to revamp the customer satisfaction in your

store?

Yes


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No

Questionnaire (Cards Department)

1. Which kind of customers generally visit at your Cards section and their

flow?




1. Revenue generated by Cards section in your store?




Revenue in 2008-09



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Revenue in 2008-09


Yes

No

Project on Spencer

Documents

Transcript of Project on Spencer