Presentation On Spencer Retail Ltd.

Introduction to the Retail Industry India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP.

It is the largest employment provider after agriculture industry.

Source- www.business.mapsofindia.com/india-retail-industry/

Introduction Of the Company

Date of Establishment 1996 Revenue Rs. 10,913 crores (FY 2008) – RPG Group Market Cap  Rs. 8,314 crores (2007) – RPG Group Branches Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad Durgapur and Kolkata. Management Team R.P Goenka – Chairman Emeritus Source- www.rpggroup.com/sretail.html Harsh Goenka

Overview Spencer’s Retail deals with food, apparel, fashion, electronics, lifestyle products, music and books. It also offers services such as gift vouchers and easy loans in association with CitiFinancial Consumer Finance India Ltd.

Company Profile vSpencer's retail is the largest* supermarket chain in India. vIt operates through over 350 stores. vSpencer's offers its customers a customized and convenient shopping experience in 5 different formats. 1. Spencer's Express 2. Spencer's Fresh 3. Spencer's Daily 4.Spencer's Super 5. Spencer's Hyper

Different Formats of Spencer’s Format

Stocks

Minimum Trading Area (sq. ft.)

Spencer’s Express

dairy, fruit and vegetables, bread and bread products, fruit juice, fresh batter, fresh coffee/tea, masalas, pickles, Ghee, Fish and meat.

1000

Spencer’s Fresh

vegetables, fruits, milk, eggs, breads

2000

Spencer’s daily

regular groceries

4000-7000

Spencer’s Super

home care products; personal care products, Bakery, Chilled and frozen food; Baby care products

8000-15000

Spencer’s Hyper

Miscellaneous

More than 25000

Project Title   

“Brand awareness of Spencer’s & its comparative analysis with Big Bazaar & other retail organizations in Lucknow city”

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Vision To “build Spencer’s as the most professionally managed retail business in the country through: §Excellence in all operating process; §Nurturing and facilitating a learning and growth culture; §Building a unique retail experience for the customers”.

Mission Strives 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. § §Unbeatable value. §The “next” place away from home or office to relax and indulge

themselves.

Objectives of the study vTo study about the Brand awareness of Spencer’s. vTo analyze the organized retailer’s profitability drivers on the basis of Garments, Gifts, Cards & Music Department.

The Big Bazaar is the discount store which offers a wide range of products under one roof. The products include apparels and nonapparels such as utensils, sports goods and footwear. The Food Bazaar provides a range of food and grocery products ranging from fresh fruits and vegetables, staples, FMCG products and ready-to-cook products.

Source- www.pantaloon.com/fashion-bigbazaar.asp

The group’s prime focus is on retailing. The Vishal stores offer affordable family fashion at prices to suit every pocket. 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.

Source- www.vishalmegamart.net/

Research Methodology In collecting requisite data and information regarding the topic selected, I went to the outlets of Spencer’s, Big Bazaar & Vishal Mega Mart of Lucknow city and collected the data. Survey design: Data were collected at a single point of time. 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.

CONtd….. Research Period: Research work is only carried for 3 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 data has been collected directly from respondent & with the help of structured questionnaires.

Contd….. Secondary Source: The secondary data was collected from Company’s 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.

LIMITATIONS OF THE STUDY 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 selfadministered questionnaires. Hence, the chances of unbiased information are less. Retailers were hesitant to disclose the true facts.

Survey on Spencer’s retail 1.Have you heard of Spencer’s?

Yes

93

No

7

2. Have you visited Lucknow city Spencer’s earlier ?

Yes

90

No

10

3. Visited Lucknow Spencer’s once, twice or more ?

Once Twice More than Twice

12 19 69

4. Spencer’s products range available to Customers ?

Spencer’s Big Bazaar Vishal Mega Mart Others

3% 5% 15% 77%

5. Spencer’s in F & V?

Yes

22

No

78

findings 1. Spencer’s have good brand awareness among the consumers. 2. Big Bazaar has better product range than Spencer’s. 3. Big Bazaar have greater acceptance among the consumers in comparison to Spencer’s. 4. FMCG products have major acceptance of all offerings of Spencer’s among consumers. 5. The consumers are not much satisfied of the offers introduced by Spencer’s. 6. Big Bazaar has better promotional schemes than Spencer’s.

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 huge music, cards or cookery departments.

HIGH GRADE INCOME 75% LEVEL MEDIUM GRADE 20% INCOME LEVEL AVERAGE GRADE 5% INCOME LEVEL

Data analysis and interpretation Flow of customer in different departments :

DEPARTMENT GARMENTS DEPARTMENT GIFTS DEPARTMENT MUSIC DEPARTMENT

NO. OF CUSTOMERS 350 700 900

Revenue generated by the different department:

REVENUE PER GARMENTS DEPARTMENT GIFTS DEPARTMENT DEPARTMENT MUSIC DEPARTMENT TOTAL

2007-2008 (Rs) 20000 400000 650000 1070000

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 can’t 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.

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 isn’t 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 isn’t sufficient.

Music Department Overview: Music section consist of Music CD;s, Game CD & DVD’s and also Movie DVD’s. Findings: Spencer has introduced very low range CD & DVD's like “Moser bear” music and movie cd-dvd’s 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 collection in games CD-DVD categories at a low price range of Rs 100 to 200 whereas if anyone go to the open market the average price range is Rs 300 to 400 for the copyright product. Suggestions: Spencer is earning more revenue by its music section. In the music it’s found that the collection of CD’s and educational CD’s low than the music games CD’s. They are emphasizing on the low price mp3 and game CD’s where as there is also a demand for educational and movies cd-dvd’s.

ANALYSIS OF STUDY ON BIG BAZAAR Percentage of customers flows department wise

TYPE OF CUSTOMER GARME HIGH GRADE 10% NT MEDIUM GRADE 50% INCOME LEVEL SECTIO HIGH GRADE 40% INCOME N INCOME LEVEL

GIFT MUSIC CARDS 15% SECTIO50% SECTIO7% SECTIO 55% 40% 53% N N N 30% 10% 40%

Flow of customers in different departments:

DEPARTMENTS NO. OF CUSTOMERS GARMENTS 1600 DEPARTMENT GIFTS DEPARTMENT 600 CARDS 250 DEPARTMENT MUSIC 800 DEPARTMENT

Revenue generated by the different departments:

REVENUE PER GARMENTS DEPARTMENT GIFTS CARDS MUSIC TOTAL

2004-2005 90000 42000 2000 19000 153000

2007-2008 300000 180000 1800 40000 521800

FACTS AND FINDINGS From the above analysis it’s 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, middle and average level income customers.

ANALYSIS OF STYDY ON VISHAL MEGA MART Types of customer:

TYPE OF HIGH GRADE CUSTOMER MEDIUM INCOME GRADE AVERAGE INCOME GRADE INCOME

GARMEN GIFTS 10% 40% TS 60% 50% 30% 10%

MUSIC 60% 30% 10%

CARDS 0% 50% 50%

Flow of customers in different departments:

DEPARTMENTS GARMENTS DEPARTMENT GIFTS DEPARTMENT CARDS DEPARTMENT MUSIC DEPARTMENT

NO. OF CUSTOMER 900 250 100 300

Revenue generated by different departments:

DEPARTMENT GARMENTS GIFTS CARDS MUSIC TOTAL

2004-2005 50000 5000 2000 1800 58800

2007-2008 180000 10000 1800 5000 196800

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.

COMPARITIVE ANALYSIS OF THE STORES On the basis of customer flows: We have considered the average of the high customer flow days.

Store name Vishal mega Mart Spencer Retail Big Bazaar

No. of customer 1600 1200 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.

Suggestions and recommendations ØIn order to improve its business, Spencer’s should introduce more competitive promotional schemes such as those in Big Bazaar. ØThe product range of Spencer’s should be improved in order to match that existing in Big Bazaar. ØFor promotional offers, company should go for free gifts rather than going for other ways.

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