CAPSTONE PROJECT REPORT ON“Brand Awareness of Spencer’s and Its Comparative Analysis With other Retail Outlets” BY Praveen Pandey C
Spencers retail is the largest supermarket chain in India. They offer a complete range of products & durables, from bread to bed cover; from toothpaste to even television sets. Today Spencers has 100 stores spread across 25 cities with a retail trading area of more than half a million square feet, and were growing rapidly. Spencers is the shopping choice for millions across the country, 2.8 million to be exact, who frequent visit stores every month.
New VenturesSpencer’s Retail has announced a tie-up with British retailer Woolworths Plc for exclusively selling its famous toy brand Chad Valley through its outlets. Besides the Chad Valley range of toys (available at prices Rs.49 upwards).Woolworths is also planning to introduce the Ladybird range of Kids wear.
Major Investment plan– It will be going in for a public issue within the next 12 months to raise capital for expansion.– The company will be investing Rs.10 billion over the next three years using both internal sources and an IPO.– The company has already reserved 1 million sq ft of space all over the country and will be creating close to 10,000 jobs in its different formats.– Spencer’s Retail currently employs 4,500 people and has 6 million sq ft of space.
SnapshotDifferent Formats ofSpencer’sFormat Stocks Minimum Trading Area (sq. ft.)Spencer’s Express dairy, fruit and vegetables, bread and bread products, fruit juice, fresh batter, 1000 fresh coffee/tea, masalas, pickles, Ghee, Fish and meat. Spencer’s Fresh vegetables, fruit, milk, 2000 eggs, breads Spencer’s daily regular groceries 4000-7000 Spencer’s Super home care products; 8000-15000 personal care products, Bakery, Chilled and frozen food; Baby care products Spencer’s Hyper Miscellaneous More than 25000
• 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 Indian customers.• At Big Bazaar, you will definitely get the best products at the best prices - that’s what it guarantee. With the ever increasing array of private labels, it has opened the doors into the world 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.
• 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. India’s 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.
• 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 company’s 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
OBJECTIVES OF THE STUDY• This project is based on the comparative study of consumer behavior towards Brand awareness of Spencer’s and its comparative analysis with Big Bazaar & other retail organizations in Chennai city. Objectives of the study are:• To study about the Brand awareness of Spencer’s.• To analyze the organized retailer’s profitability drivers on the basis of Garments, Gifts, Cards & Music Department.
Research Methodology• 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.• Data Collection: The data, which is collected for the purpose of study, is divided into 2 bases:• Primary Source: The primary data will be comprising of information survey of “Brand awareness of Spencer’s and its comparative analysis with Big Bazaar & other retail organizations ”. The data has been collected directly from respondent & with the help of structured questionnaires.• Secondary Source: The secondary data has been 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.
LIMITATIONS OF THE STUDY• 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• What is the thought of people about Spencer’s retail? – 1) Have you heard of Spencer’? Yes 93 No 7 Yes No
2.Have you visited Chennai city Spencer’s earlier? Yes 90 No 10 Yes No
3.Visited Chennai Spencer’s once, twice or more? Once 12 Twice 19 More than Twice 69 Once Twice More than Twice
4.Peoples not visited to local retail stores? Local shops 10.0 Big Bazaar 20.0Any other stores 70.0 Local shops Big Bazaar Any other stores
5.Spencer’s products range available to customers? Spencer’s 3% Big Bazaar 5% Vishal Mega Mart 15% Others 77% Spencer’s Big bazaar Vishal Mega Mart Others
6.Spencer’s in FMCG? Spencer’s 67% Big Bazaar 25%Vishal Mega Mart 8% Spencer’s Big Bazaar Vishal Mega Mart
8.Spencer’s in Food & Vegetables ? Yes 22 No 78 Yes No
Findings• Spencer’s have good brand awareness among the consumers.• Big Bazaar has better product range than Spencer’s.• Big Bazaar have greater acceptance among the consumers in comparison to Spencer’s.• FMCG products have major acceptance of all offerings of Spencer’s among consumers.• The consumers are not much satisfied of the offers introduced by Spencer’s.• Big Bazaar has better promotional schemes than Spencer’s.
Various Departments @ Spencer’sFollowing Dept.are the main sources of income for the Spencer’s• GARMENTS DEPARTMENT• GIFTS DEPARTMENT• MUSIC DEPARTMENT
1)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.
2) 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.
3) 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 “Moserbear” 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 cds. They are emphasizing on the low price mp3 and game cds where as there is also a demand for educational and movies cd-dvd’s.
SUGGESTIONS AND RECOMMENDATIONS• In order to improve its business, Spencer’s should introduce more competitive promotional schemes such as those in Big Bazaar.• The product range of Spencer’s 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