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A
ON
“Brand awareness of Spencer’s & its comparative analysis with Big
Bazaar & other retail organizations in Lucknow city”
LOVELY PROFESSIONAL UNIVERSITY
Submitted to: Submitted By:
Projectskart.com
ACKNOWLEDGEMENT
First of all I would like to thank the Management at Spencer’s 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 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 who extended me assistance, support and council
without, which this project would not have been materialized.
PROJECT GUIDE:
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 Spencer’s & 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.
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 Besant
Road, Worli, Mumbai 400 030, Maharashtra, India
Branches Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut,
Hyderabad, Vizag, Vijayawada, Aurangabad
Durgapur and Kolkata
Management Team R.P Goenka – Chairman Emeritus
Harsh Goenka – Chairman
Sanjiv Goenka – Vice Chairman
S Bannerjee – President/Chief Executive Power Sector
P.K Chowdhary – President/Chief Executive Tyre
Sector
Subroto Chattopadhayay – President/Chief Executive
Entertainment Sector
P.K Mohapatra – President/CEO, Technology Sector
Arvind Agrawal – President/Chief Executive Corporate
Development and HR
Ramesh Chandak - President/Chief Executive
Transmission Sector
P. Sampath Group CFO
Overview Spencer’s Retail is a part of the RPG Companies that
deals with food, apparel, fashion, electronics, lifestyle
products, music and books. It operates through over 350
stores. It also offers services such as gift vouchers and
easy loans in association with CitiFinancial Consumer
Finance India Ltd. It consists of Spencer’s
Hypermarkets, Spencer’s Super, Spencer’s Daily and
Spencer’s Express.
Company History
YEAR EVENTS
1987 - The company was established in the year. The main objects of the company are
marketing and distribution manufacture of Pharmaceuticals-Aerated waters and other food
products- Marketing of consumer durables- Trawlers and marine products processing- Travel
and shipping- Imports and Exports - Hotels and Catering- Tea estater-Chain departmental
stores-computer and computer services- Real Estates.
- M/s Kellner Pharmaceuticals Ltd., Vulcan Electricals Ltd., Spencer International Hotels
Ltd., Spencer, Furnitures & Furnishing, Spencer Estates Ltd., Spencer Consumer Products
and Services Ltd., Spencer Pharmaceticals Ltd., G.F.Kellner & Co. Ltd., Fiesta Restaurant
Ltd., Kartik Pharmaceuticals Ltd., and Spencer Information Services are the subsidiaries.
1995 - Spencer Industrial Fund Ltd has become a Subsidiary of Spencer International Hotels
Ltd under provision of Section 4(1) (a) of the Companies Act, 1956 and accordingly a
Subsidiary of this Company also from 24th January.
1996 - The Company has entered into a Technical Assistance cum Joint venture options
Agreement with M/s. Dairy Farm International Holdings Ltd., a major International retailing
force operating in several countries.
1997 - During the year the company has entered into a Joint Venture agreement with DFI
Mauritius Limited to enter yet another Retail Format. A chain of retail drugstores, dealing in
Medicines, Cosmetics, Toiletries and allied Health and Beauty products, is proposed to be set
up on a nation-wide basis.
- A new company has been named as RPG Guardian Private Limited and is on a mission to
lop a highly regarded retail business in India by offering excellent service and value to
customers. The company has been set up on a 50 : 50 equity partnership basis. The total paid
up capital of the company will be Rs. 450 lakhs consisting of 45,00,000 of equity shares of
Rs. 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 World
Supermarket started during 1996 made significant progress during the year. - Foodworld has
became a household name in three cities enjoying high patronage from its customers and
suppliers.
2000 - Spencer & Company, an RPG group outfit, has signed a joint venture agreement with
Dairy Farm International Mauritius (DFI) to launch a chain of large distribution
infrastrucutre, essentially meant to serve the small retailer.
- The Company will form a joint venture company, as a subsidiary of Spencer’s.
Spencer's Retail
Based in Kolkata, India, Spencer's Retail is one of the country's fastest growing retail
companies 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 20
companies in industries such as power, technology, retail, and entertainment. Established in
1979, RPG Enterprises has annual revenue of $3.25 billion.
Customer Challenges
Enable rapid business expansion
Improve performance
Add room for growth
Ensure IT systems' availability
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
Improved performance
Increased scalability
Ensured IT systems' availability
Reduced space and power requirements
Products and Services Related Customer Success Stories
Sun SPARC Enterprise M5000 Server
Sun SPARC Enterprise M4000 Server
Sun SPARC Enterprise T5120 Server
Sun Fire V490 Server
Sun Storage Tek 6540 Array
Sun Storage Tek 6140 Array
Sun Storage Tek SL500 Modular Library
System
Solaris 10 Operating System
Solaris Cluster 3.2
Sun Storage Tek Data Replicator Software
Out spark Increases System Uptime and
Performance, Cuts Power Consumption and
Costs with Sun Server Solution
Sun Unified Storage Helps Elanders Reduce
Costs and Increase Performance
Ivan Smith Furniture Deploys a Java-Based
Reporting System from MCM Software
View all Customer Success Stories
Story Details
Spencer's Retail in India is in an enviable but challenging position instead of trying to
generate new business, it is struggling to keep up with explosive growth. Approximately two
years ago, the company had approximately 60 stores and 4,000 employees; today, it has more
than 350 stores and 15,000 employees.
By 2004 the retail industry was growing rapidly in India, and Spencer's Retail decided to
pursue an aggressive expansion strategy. The company had the customers, the products, and
the employees to make it happen. It just needed an IT infrastructure that could support rapid
growth. Current servers were at capacity, and the company needed to upgrade before adding
new stores. Amit Mukerjee, Group CIO of the RPG Group, describes the challenge as part of
the learning curve for retail development in India. ―Retailing is a new business in this
country. As the business matures, the process matures, and IT systems must evolve
accordingly.‖
" One benefit for us with Sun Microsystems is its understanding of retail and its ability to
architect a solution for this type of business. The second benefit is that Sun has the
technology 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 critical
processes such as supply-chain management. It decided to implement mySAP ERP, now
called 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 Sun
Microsystems. 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 retail
space 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 GHz
SPARC 64 VI processors as the center of its production environment. Designed for
consolidation and virtualization, Sun SPARC Enterprise Servers bring mainframe-class
utilization and efficiency levels to the open systems market. Supporting hardware partitions
and Solaris Containers, these systems deliver deliver 24/7 mission-critical services while
reducing power, cooling, and space requirements.
After an eight-month testing period beginning in early 2005, the company installed the SAP
ERP database software on two Sun SPARC Enterprise M5000 servers in a high-availability
cluster with Sun Cluster 3.2 software. The disaster recovery solution ensures business
continuity with advanced failover protection.The cluster is connected to a Sun StorageTek
6540 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 SPARC
Enterprise T5120, Sun SPARC Enterprise M4000, and Sun Fire V490 servers used to support
both production and quality assurance functions.
Spencer's Retail has rolled out its SAP solution to approximately 160 stores and expects to
complete deployment to more than 350 stores by October 2008. The company purchased the
SunSpectrum 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; we
work with it as a partner. Good customer service is very important to us, because we run our
entire business on Sun servers.‖
The company is meeting its initial goals for a high-performance solution with room for
growth. It has already observed that data transactions run as much as five times faster on the
new 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 reduce
space and power requirements.
Spencer's Retail plans to enhance its IT environment further with a new disaster recovery site,
which will include Sun Fire V890 servers and Sun SPARC Enterprise T5120 servers running
Solaris Cluster software connected to a StorageTek 6140 array. It will also use Sun
StorageTek Data Replicator Software software to mirror data between the production
environment and the remote location. Together with its new server infrastructure, the disaster
recover installation will provide the high-performance, high-availability solution the
company envisioned. With its business processes running on Sun infrastructure, Spencer's
Retail can meet business growth with confidence.
SPENCERS RETAIL LIMITED
Company Profile
Company Profile Spencer's retail is the largest* supermarket chain in India. We offer a
complete range of products & durables, from bread to bed cover; from toothpaste to even
television sets. Today Spencer's has 100 stores spread across 25 cities with a retail trading
area of more than half a million square feet, and we're growing rapidly. Spencer's is the
shopping choice for millions across the country, 2.8 million to be exact, who frequent our
stores every month.
Today Spencer's offers its customers a customized and convenient shopping experience in 5
different formats. Each format, namely the Spencer's Express, Spencer's Fresh, Spencer's
Daily, Spencer's Super and Spencer's Hyper is differently sized and caters to the various
needs 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 wide
array 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 and
the 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 essential
for 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 fast and
easy payment process. Electronic cheque conversion, a recent development in this
area, processes a cheque electronically by transmitting transaction information to the
retailer and consumer's bank.
Internet
Internet is also rapidly evolving as a customer interface, removing the need of a
customer physically visiting the store.
Operation Support Systems
ERP System
Various Enterprise Resource Planning (ERP) vendors have developed retail-specific
systems which help in integrating all the functions from warehousing to distribution,
front and back office store systems and merchandising. An integrated supply chain
helps the retailer in maintaining his stocks, getting his supplies on time, preventing
stock-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 with
real access to consumer data. Data warehousing and mining technologies offers
retailers the tools they need to make sense of their consumer data and apply it to
business.
Advanced Planning and Scheduling Systems
APS systems can provide improved control across the supply chain, all the way from
raw material suppliers, right through to the retail shelf. They enable consolidation of
activities such as long term budgeting, monthly forecasting, weekly factory
scheduling and daily distribution scheduling into one overall planning process using a
single set of data.
Strategic Decision Support Systems
Store Site Location
Demographics and buying patterns of residents of an area can be used to compare
various possible sites for opening new stores. Today, software packages are helping
retailers not only in their locational decisions but in decisions regarding store sizing
and floor-spaces as well.
Visual Merchandising
The decision on how to place and stack items in a store is no more taken on the gut
feel of the store manager. A larger number of visual merchandising tools are available
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 they didn'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 a
solution to manage everything under one umbrella. So it engaged a team of experts to
evaluate various solutions in the market. Spencer's found that SAP came closest to fulfilling
its needs. Project Shakti has been operating for the last two years out of Chennai and it has
already 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 SAP
solution to approximately 207 stores and expects to complete deployment to more than 350
stores 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 their
operations in Books & Beyond, and are gradually migrating the rest to SAP.
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 distribution
centres (DC) and selling to customers. The DCs in turn would be procuring articles based on
the site's need from different vendors. The business processes covered under this are
purchase, sales, inventory controlling along with financial accounting. The challenges faced
during the implementation are managing the different pricing procedures which change very
rapidly, managing the promotions; automation of the POS information, high volume of
information to be processed, GMROI (Gross Margin Return on Investment) etc.
They have followed SAP Methodology during the course of this implementation. The Project
leader from SAP India gathered the necessary KPI's, Dimensions and reports from the
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 the technical
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 warehousing
servers. For data processing, they have 'staging servers'. These are intermediary servers to
store data temporarily before moving it to the SAP Production server. Eventually, all stores
and warehouses across all locations will be integrated with its datacenter and shall be working
on a real-time basis, except for the PoS billing system. At the end of each working day, 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 them to
do bill-value and time analysis. They are also using MySAP Business Warehousing BW 7.0
for analytics. While their aggregated sales data goes to the SAP production server, the non-
aggregated data goes to the business warehousing server for analytics at Kolkata. The latter
helps them analyze customer buying patterns. The former data helps them manage inventory,
stock
keeping, etc. While some basic infrastructure is in place already, they are gradually
implementing 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 and
motivate people constantly, generate awareness and do change management. This makes the
task more challenging, as it needs to manage deployments in such a dynamic environment
keeping pace with the company's exponential growth plans.
Operations
Spencer's has retail footage of over 1 million square feet and over 275 Spencer's stores in 50
cities. The company operates through the following formats:
The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ft in
size. They offer everything under one roof. The merchandise ranges from
fruits & vegetables, processed foods (Ready to Eat, Ready to Cook, FMCG
products),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 décor & 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 than
15000 sq. ft. These stores stock the necessary range and assortment in fruit
and 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 these
stores which have floor area of more than 10,000 sq ft sometimes offer home
care products; personal care products, bakery, chilled and frozen food; baby
care, basics in garments and limited range of electronics and electrical.
New Ventures
 Spencer’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.
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.‖
Major Investment plan
1. It will be going in for a public issue within the next 12 months to raise capital
for expansion.
2. The company will be investing Rs.10 billion over the next three years using
both internal sources and an IPO.
3. 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.
4. Spencer’s Retail currently employs 4,500 people and has 6 million sq ft of
space.
Formats of Spencer’s outlets
Spencer’s has retail footage over 2 million square feet and over 400 Spencer’s stores in
65 cities.
The Company operates through the following formats:
1. Spencer’s Hypermarkets: A fast growing retail network of hypermarkets with large
format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad,
Vizag, Vijaywada, Aurangabad, Durgapur and Kolkata.
2. Spencer’s super: One of the largest supermarket chains in the food and grocery
segment in India.
3. Spencer’s Daily: Small format stores conveniently located with a range of products
to meet daily household needs.
4. Spencer’s express: Food and grocery store next door.
Spencer’s Daily
Fresh Fruit Stall Market stall Manton Market
 The Spencer’s Daily store is a friendly neighborhood store, which caters to the entire
daily 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;
Spencer’s Daily saves the hassle of bargaining with the local kirana shop owners
(because it offers the lowest possible prices).
Spencer’s Express
 Spencer’s Express is a store next door for the fresh needs at arm’s 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.
Spencer’s Fresh
 Spencer’s 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, Spencer’s Fresh is far better the regular sabzi
mandis or local vegetables markets and at Spencer’s.
 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!
Spencer’s Super
 The Spencer’s Super is the place to go for the monthly shopping.
 About 8000-15000 sq ft. in size, the Spencer’s 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, Fresh
fruits and vegetables.
Spencer’s Hyper
 The Spencer’s Hypermarkets are huge destination stores, more than
25,000 sq ft. in trading area. Shoppers come here looking for fantastic
deals across all categories.
 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.
India’s first modern format hypermarket was opened by Spencer’s in Hyderabad
in January 2001. Located over an area of 1,20,000 sq.ft., the store has a trading
area of 36,000 sq.ft. The Spencer’s hypermarkets, located across the country,
are open throughout the day, seven days a week, 365 days a year.
Spencer’s already employ over 9000 employees across 60 cities. Roughly 1/3
rd
of the team are women.
Spencer’s began its operations in India way back in 1863 and since then has
remained a part of the lives of Indian consumers. 145 years later, the Spencer’s
name still evokes special memory of authentic quality at affordable prices.
Currently, RPG’s Retail activity comprises Spencer’s Retail, RPG Cellucom, Books
& Beyond and MusicWorld. RPG’s total retail outlets are more than …… The total
area of all Spencer’s stores across the country is over ….. sq.ft. Spencer’s
currently has a national consumer base of over 48 million people, who walk into
the store every year.
Snapshot
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 1000
coffee/tea, masalas, pickles, Ghee, Fish and
meat.
Spencer’s Fresh vegetables, fruit, milk, eggs, breads 2000
Spencer’s daily regular groceries 4000-7000
Spencer’s Super home care products; personal care 8000-15000
products, Bakery, Chilled and frozen food;
Baby care products
Spencer’s Hyper Miscellaneous More than 25000
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 Indian customers.
At Big Bazaar, you will definitely get the best products at the best prices - that’s what we
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.
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 fruits and
vegetables, staples, FMCG products and ready-to-cook products. The Central offers a chain
of stores including books and music stores, global brands in fashion, sports and lifestyle
accessories, grocery store and restaurants. The Group's other formats include, Depot, Shoe
Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and
Sitara. It also operates an online portal, futurebazaar.com.
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. 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.
The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic
leadership 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 group’s prime focus is on retailing. The Vishal stores offer affordable family fashion
at prices to suit every pocket.
The group’s 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.
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, 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 seen
a 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.
Subhiksha now has even opened Specialised Mobile shops called Subhiksha Mobile where
mobiles 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 Spencer’s 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 Spencer’s.
 To analyze the organized retailer’s 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 that
learning 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 the product
and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s
objectives.
The scope of my study restricts itself to the Brand awareness of Spencer’s 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 retailer’s profitability drivers on the basis of
Garments, Gifts, Cards & Music Department where as in the recent trend it's seen that the 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 Spencer’s 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 Spencer’s and Big bazaar. 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:
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.
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 primary data comprises 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 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 & SPSS.
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 on Spencer’s retail
What is the thought of people about Spencer’s retail?
1. Have you heard of Spencer’s?
Yes 93
No 7
Yes
No
2. Have you visited Lucknow city Spencer’s earlier?
Yes 90
No 10
Yes
No
3. Visited Lucknow 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 20.0
Any other stores 70.0
Column1
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
7. Spencer’s in garments?
Yes 8
No 92
Yes
No
8. Spencer’s in F & V?
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.
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%
MEDIUM GRADE INCOME LEVEL 20%
AVEREGE GRADE INCOME LEVEL 5%
80%
60%
40%
20%
0%
HIGH GRADE MEDIUM AVEREGE
INCOME GRADE GRADE
LEVEL INCOME INCOME
LEVEL LEVEL
From the above the analysis it’s 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 customer’s 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
GARMENTS DEPARTMENT 350
GIFTS DEPARTMENT 700
MUSIC DEPARTMENT 900
Inter-Department Customer
Flow
MUSIC …
Inter-DepartmentGIFTS …
Customer Flow
GARMENT…
NUMBER OF
0 500 1000
CUSTOMER
In Spencer we have found that the average customer flow lies between 650-700 on average
high 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. It’s
noted that the gifts department consists of exclusive products.
Value of Stock in the different department:
VALUE OF THE STOCK
DEPARTMENT (Rs)
GARMENTS DEPARTMENT 760000
GIFTS DEPARTMENT 5050000
MUSIC DEPARTMENT 8060000
VALUE OF THE STOCK (Rs)
GARMENTS
DEPARTMENT
GIFTS
DEPARTMENT
MUSIC
DEPARTMENT
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, Levi’s, 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, Men’s
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 . It’s 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, linen
as well as other home accessories, thus providing customers a high range product.
Revenue generated by the different department:
REVENUE PER
In 2007-08 (Rs)
DEPARTMENT
GARMENTS DEPARTMENT 2000000
GIFTS DEPARTMENT 4000000
MUSIC DEPARTMENT 6500000
TOTAL 12500000
In 2007-08 (Rs)
15000000
10000000
5000000
0
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 it’s 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 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 ―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.
Analysis of the study on Big Bazaar
In the Indian Retail Scenario Big Bazaar has a great success to create a revolution. Basically
they have differentiated their customers on the basis of customers rather than their income
level. Later on we will analyze these aspects. Here we are analyzing which income level of
customers are generally tended to purchase the products in Big Bazaar department wise:
Percentage of customers flows department wise
Type of customer Garment Gifts Section Music Cards
section section section
High grade income level 10% 15% 50% 7%
Medium grade income level 50% 55% 40% 53%
High grade income level 40% 30% 10% 40%
100%
80%
High grade income level60%
40%
Medium grade income20%
0% level
High grade income level
From the above details it is found that the garment section they are targeting the middle and
average level of customers. They are not promoting any major brands and they have their
own brand towards the major brands in garments industry. Flow of high level of customers I
music section is better than the other department. Generally upper middle and medium class
and 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 customer
flows on an average of high customer flow days.
Inter-Department Customer Flow
Department Number of customer
Garments Department 1600
Gifts Department 600
Cards Department 250
Music Department 800
Music Department
Cards Department
Gifts Department
Garments Department
Department
0 500 1000 1500 2000
With the study of customer flow in Big Bazaar on an average of high customer flow day we
came to know that it’s basically lies between 2000-2500 customers per day. Here we talking
the customers who are generating revenues for these departments.
From the above figures its executed that flow of customers in garment department is
relatively higher than the other departments. One significant difference is noted than the
others retail is that they have placed their music department at the front of cash counters and
introduced low range of music cds’ and game dvd’s for the all category customers which
increased customers the flow in the music department.
Value of stock in the different departments:
We have chosen 4 departments from Spencer’s store and estimated the valuation of average
stock with the assumption details provided by the branch operation stuffs.
Value of the stock
Department (Rs)
Garments Department 163000000
Gifts Department 7500000
Cards Department 150000
Music Department 580000
Value of the stock (Rs)
Garments Department
Gifts Department
Cards Department
Music Department
The garment section is divided into men, women and kids section. They have also a discount
section only for the garments. 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 winter season and tends to double the value of stock. Normally they are maintain
a stock value of 16.3 to 17 crore value of stock bus it increase at the time of winter to more
than 40 crore.
Value of stock of the others departments:
In some big retails its seen that they are including some cookery, home furnishings and life
style products in their gifts section. Big Bazaar is maintaining a low stock but more product
categories in their gifts section and generating remarkable revenue from this.
Stock of music department is overflowed with low products. Their stock have a potential to
earn 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 different
departments 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 income level customers.
Revenue per 2004-2005 2007-2008
department
Garment department 90000 300000
Gifts department 42000 180000
Cards department 2000 1800
Music department 19000 40000
Total 153000 521800
600000
500000
400000
300000
200000
100000 2004-2005
0
2008-2009
From the above study its revealed that at the time of inception of the organized retail in India
in the year of 2004-2005, only the high grade and upper medium grade income level
customers were tends to go the retails. So the maximum portion of revenues generates from
these two groups only in the year of 2004-2005.
The change in revenue of garment department and in the gifts department from the year
2004-2005 to 2007-2008 is significant because Big Bazaar is shifted products towards the
own manufactured brands and they became successful to establish their own brands in the
garment retail industry.
A measurable changes found in the cards department is 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 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.
Garment Department
Overview:
In Garment department the products are mainly their own brands an price range lies between
Rs 99 to Rs 800 averagely which is very reasonable for the middle class, average and also
low level income group peoples. The stock in this section is fair to satisfy its customer needs
and 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 focusing
on the low range products with their own brands. All the times they are giving special
discounts on all the garments products. They have adopted tricks like ―Buy 2 get 3 , Buy 3‖
get 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. It’s a very strategic and attractive offer
specially adopted by Big Bazaar. They have also a section they are selling the branded high
class 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 income
level customer level flow in the others departments like in the furniture and grocery
department they can introduce a wider range of branded products in the garment section as
this income is conscious about the brand that they are using.
Gifts Department
Overview:
Gift department is consisting of various product categories from home furnishing products
personal using products. According to Big Bazaar now a days no one can define which
section should be referred as a gifts section. Customer preference is changing day by day
with the increased product categories.
Findings:
In Big Bazaar we have found that they are also referring home furnishing products, personal
care and low range electronic products as gift products and basically it depends on the
customers need and choice. The whole gift section is able to satisfy the all level of income
groups 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 varieties
of products with a limited stock which helps them to implement a good stock turn over ratio
and 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 & DVD’s and also Movie DVD’s.
Findings:
Big Bazaar 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:
In the music its 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.
Analysis of the study on Vishal Mega Mart
Types of customer:
There are three types of consumer in the Indian retail market. Vishal mega mart is a firm
believer of that the middle class and upper middle class are the potential customer in their
product categories.
Here we are analyzing which income level of customers are generally tend to purchase the
products department wise:
Percentage of types of customer department wise
Type of customer Garment Gifts Music Cards
section section section section
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
100
80
Average grade income60
40
level
20 Medium grade income
0 level
High grade income level
From the above details it’s 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
Garments Department 900
Gifts Department 250
Cards Department 100
Music Department 300
Inter- Department customer flow
Number of customer
Music Department
Cards Department
Gifts Department
Garments Department
Inter- Department
customer flow
Number of customer
0 500 1000
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 are making 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)
Garments Department 10340000
Gifts Department 250000
Cards Department 75000
Music Department 200000
Value of the stock in the Garment Departments:
Garments
Department
Gifts Department
Cards Department
Music Department
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.
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 it’s
seasonal business according to the Vishal Mega Mart.
Music department is consisting of Music, movie and game cd & dvd’s. Its found that the
stock of game cd & dvd’s 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
200000
150000
100000
50000
2004-2005
0
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 :
In the garment section we have found that products categories are not focusing the high grade
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 isn’t 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 the
garment 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 cd’s, game cd & dvd’s and also movie dvd’s. 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:
In the music section we have found that they are mainly focusing on the game cd’s and dvd’s
and also the price range is also high. Again the collection of game cd and dvd’s is
considerable but in the case of Indian music cd’s the stock level is not also upto the
customer’s 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
cd’s. 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:
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
VALUE OF THE STOCK (Rs)
10000000
8000000
6000000
4000000
2000000 VALUE OF THE
0 STOCK (Rs)
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 Gifts Dept Cards Dept Music Dept
dept
Vishal Mega 65000000 250000 77500 175000
Mart
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.
Garments dept
20000000
15000000
10000000
50000000
0
Garments dept
Vishal Mega Mart: The product in the garment section isn’t exclusive and meant for the
medium to average grade income level customers. Also they aren’t focusing on major brands
in the garment industry. All the products are unbranded and semi branded and don’t 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 price
for 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 customer’s satisfactory level is remarkable.
80000000
60000000
40000000
20000000
0
Vishal
Mega
Mart
Spencer Big Bazaar
Retail
Cards Department:
Vishal Mega Mart: Stock in the department is taken care as relatively low and it’s
considered as a seasonal business.
Big Bazaar: Stock in this department is taken care as relatively low and it’s considered as a
seasonal business.
Spencer: It is having highest value in gift department.
200000
150000
100000
50000
0 Cards Dept
Music Department:
Vishal Mega Mart: Music department is consisting of music, movies amd games cd-dvd’s.
the stock of game cd-dvd’s 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-dvd’s
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 of
their needs.
Spencer: Spencer is earning more revenue in this department than Big Bazaar &
Vishal Mega Mart in music because it is of RPG group.
10000000
8000000
6000000
4000000 Music Dept
2000000
0
Vishal Spencer Big
Mega Retail Bazaar
Mart
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.
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
Spencer’s have good brand awareness among the consumers.
Spencer’s in FMCG sector.
Spencer’s retail specialist marketing expertise.
 Weaknesses
The consumers are not much satisfied of the offers introduced by Spencer’s.
Big Bazaar has better product range than Spencer’s.
Big Bazaar has better promotional schemes than Spencer’s.
 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 Spencer’s.
Big Bazaar have greater acceptance among the consumers in comparison to
Spencer’s.
Bibliography
Author’s Name Book Name Place of Publication Year
Kothari, C.R. Research Methodology- Wiley Eastern Ltd., New Delhi
Methods and Techniques
Brown, F.E. Marketing Research, a Addison-Wesley Eastern Ltd.
structure for decision
making
Dunn Online Jean and Applied Statistics John Wiley and Sons
Virginai A Clarck
Hooda, R.P. Statistics for Business and Macmillan India, New Delhi
Economics
Green Pant E and Donald S. Research for Marketing Wiley Eastern, New Delhi
Tull Decisions
Philip Kotler. Marketing Management Prentice Publishing Co., New
Delhi.
Shenoy, GVS et al. Quantitative Techniques Wiles Eastern New Delhi
for Managerial Decision
Making
.
Websites
www.Spencersretail.com
www.rpggroup.com
www.scribt.com
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
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
3. Which kind of customers generally visit at your store?
(a) High grade income level
(b) Medium grade income level
(c) Average grade income level
4. Flow of customer per day in your store:
(a) Below 500
(b) 500 to 1000
(c) 1000 to 1500
5. In which department stock is being taken care comparatively in a lightly way?
(a) Garments
(b) Gift items
(c) Cards
(d) Music
Does the brand consciousness of customers divert them to the different departments?
Yes
No
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
8. Is the Information Technology helping in ROI of the store?
Yes
No
If yes then which features is/are motivating?
ERP
Online Adv
SAP/Tally
Informational Security
9. 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?
(a) High grade income level
(b) Medium grade income level
(c) Average grade income level
2. 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
3. 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?
(d) High grade income level
(e) Medium grade income level
(f) Average grade income level
2. Revenue generated by Gifts section in your store?
(d) High grade income level: Revenue in 2004-2005
Revenue in 2008-2009
(e) Medium grade income level: Revenue in 2004-05
Revenue in 2008-09
(f) Average grade income level: Revenue in 2004-05
Revenue in 2008-09
3. Is your stock efficient to revamp the customer satisfaction in your store?
Yes
No
Questionnaire (Music Department)
1. Which kind of customers generally visit at your Music section and their flow?
(g) High grade income level
(h) Medium grade income level
(i) Average grade income level
2. Revenue generated by Music section in your store?
(g) High grade income level: Revenue in 2004-2005
Revenue in 2008-2009
(h) Medium grade income level: Revenue in 2004-05
Revenue in 2008-09
(i) Average grade income level: Revenue in 2004-05
Revenue in 2008-09
3. Is your stock efficient to revamp the customer satisfaction in your store?
Yes
No
Questionnaire (Cards Department)
1. Which kind of customers generally visit at your Cards section and their flow?
(j) High grade income level
(k) Medium grade income level
(l) Average grade income level
2. Revenue generated by Cards section in your store?
(j) High grade income level: Revenue in 2004-2005
Revenue in 2008-2009
(k) Medium grade income level: Revenue in 2004-05
Revenue in 2008-09
(l) Average grade income level: Revenue in 2004-05
Revenue in 2008-09
3. Is your stock efficient to revamp the customer satisfaction in your
store? Yes
No
Brand Awareness of Spencer's and Comparative Analysis with Big Bazaar

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Brand Awareness of Spencer's and Comparative Analysis with Big Bazaar

  • 1. Projectskart.com A ON “Brand awareness of Spencer’s & its comparative analysis with Big Bazaar & other retail organizations in Lucknow city” LOVELY PROFESSIONAL UNIVERSITY Submitted to: Submitted By: Projectskart.com
  • 2. ACKNOWLEDGEMENT First of all I would like to thank the Management at Spencer’s 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 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 who extended me assistance, support and council without, which this project would not have been materialized. PROJECT GUIDE:
  • 3. 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 Spencer’s & 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.
  • 4. 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 Besant Road, Worli, Mumbai 400 030, Maharashtra, India Branches Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad Durgapur and Kolkata Management Team R.P Goenka – Chairman Emeritus Harsh Goenka – Chairman Sanjiv Goenka – Vice Chairman S Bannerjee – President/Chief Executive Power Sector P.K Chowdhary – President/Chief Executive Tyre Sector Subroto Chattopadhayay – President/Chief Executive Entertainment Sector P.K Mohapatra – President/CEO, Technology Sector Arvind Agrawal – President/Chief Executive Corporate Development and HR Ramesh Chandak - President/Chief Executive Transmission Sector P. Sampath Group CFO Overview Spencer’s Retail is a part of the RPG Companies that deals with food, apparel, fashion, electronics, lifestyle products, music and books. It operates through over 350 stores. It also offers services such as gift vouchers and easy loans in association with CitiFinancial Consumer Finance India Ltd. It consists of Spencer’s Hypermarkets, Spencer’s Super, Spencer’s Daily and Spencer’s Express.
  • 5. Company History YEAR EVENTS 1987 - The company was established in the year. The main objects of the company are marketing and distribution manufacture of Pharmaceuticals-Aerated waters and other food products- Marketing of consumer durables- Trawlers and marine products processing- Travel and shipping- Imports and Exports - Hotels and Catering- Tea estater-Chain departmental stores-computer and computer services- Real Estates. - M/s Kellner Pharmaceuticals Ltd., Vulcan Electricals Ltd., Spencer International Hotels Ltd., Spencer, Furnitures & Furnishing, Spencer Estates Ltd., Spencer Consumer Products and Services Ltd., Spencer Pharmaceticals Ltd., G.F.Kellner & Co. Ltd., Fiesta Restaurant Ltd., Kartik Pharmaceuticals Ltd., and Spencer Information Services are the subsidiaries. 1995 - Spencer Industrial Fund Ltd has become a Subsidiary of Spencer International Hotels Ltd under provision of Section 4(1) (a) of the Companies Act, 1956 and accordingly a Subsidiary of this Company also from 24th January. 1996 - The Company has entered into a Technical Assistance cum Joint venture options Agreement with M/s. Dairy Farm International Holdings Ltd., a major International retailing force operating in several countries. 1997 - During the year the company has entered into a Joint Venture agreement with DFI Mauritius Limited to enter yet another Retail Format. A chain of retail drugstores, dealing in Medicines, Cosmetics, Toiletries and allied Health and Beauty products, is proposed to be set up on a nation-wide basis. - A new company has been named as RPG Guardian Private Limited and is on a mission to lop a highly regarded retail business in India by offering excellent service and value to customers. The company has been set up on a 50 : 50 equity partnership basis. The total paid up capital of the company will be Rs. 450 lakhs consisting of 45,00,000 of equity shares of Rs. 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 World Supermarket started during 1996 made significant progress during the year. - Foodworld has became a household name in three cities enjoying high patronage from its customers and suppliers. 2000 - Spencer & Company, an RPG group outfit, has signed a joint venture agreement with Dairy Farm International Mauritius (DFI) to launch a chain of large distribution infrastrucutre, essentially meant to serve the small retailer. - The Company will form a joint venture company, as a subsidiary of Spencer’s.
  • 6. Spencer's Retail Based in Kolkata, India, Spencer's Retail is one of the country's fastest growing retail companies 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 20 companies in industries such as power, technology, retail, and entertainment. Established in 1979, RPG Enterprises has annual revenue of $3.25 billion. Customer Challenges Enable rapid business expansion Improve performance Add room for growth Ensure IT systems' availability 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 Improved performance Increased scalability Ensured IT systems' availability Reduced space and power requirements Products and Services Related Customer Success Stories Sun SPARC Enterprise M5000 Server Sun SPARC Enterprise M4000 Server Sun SPARC Enterprise T5120 Server Sun Fire V490 Server Sun Storage Tek 6540 Array Sun Storage Tek 6140 Array Sun Storage Tek SL500 Modular Library System Solaris 10 Operating System Solaris Cluster 3.2 Sun Storage Tek Data Replicator Software Out spark Increases System Uptime and Performance, Cuts Power Consumption and Costs with Sun Server Solution Sun Unified Storage Helps Elanders Reduce Costs and Increase Performance Ivan Smith Furniture Deploys a Java-Based Reporting System from MCM Software View all Customer Success Stories
  • 7. Story Details Spencer's Retail in India is in an enviable but challenging position instead of trying to generate new business, it is struggling to keep up with explosive growth. Approximately two years ago, the company had approximately 60 stores and 4,000 employees; today, it has more than 350 stores and 15,000 employees. By 2004 the retail industry was growing rapidly in India, and Spencer's Retail decided to pursue an aggressive expansion strategy. The company had the customers, the products, and the employees to make it happen. It just needed an IT infrastructure that could support rapid growth. Current servers were at capacity, and the company needed to upgrade before adding new stores. Amit Mukerjee, Group CIO of the RPG Group, describes the challenge as part of the learning curve for retail development in India. ―Retailing is a new business in this country. As the business matures, the process matures, and IT systems must evolve accordingly.‖ " One benefit for us with Sun Microsystems is its understanding of retail and its ability to architect a solution for this type of business. The second benefit is that Sun has the technology 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 critical processes such as supply-chain management. It decided to implement mySAP ERP, now called 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 Sun Microsystems. 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 retail space 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 GHz SPARC 64 VI processors as the center of its production environment. Designed for consolidation and virtualization, Sun SPARC Enterprise Servers bring mainframe-class utilization and efficiency levels to the open systems market. Supporting hardware partitions and Solaris Containers, these systems deliver deliver 24/7 mission-critical services while reducing power, cooling, and space requirements. After an eight-month testing period beginning in early 2005, the company installed the SAP ERP database software on two Sun SPARC Enterprise M5000 servers in a high-availability cluster with Sun Cluster 3.2 software. The disaster recovery solution ensures business continuity with advanced failover protection.The cluster is connected to a Sun StorageTek 6540 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 SPARC Enterprise T5120, Sun SPARC Enterprise M4000, and Sun Fire V490 servers used to support both production and quality assurance functions.
  • 8. Spencer's Retail has rolled out its SAP solution to approximately 160 stores and expects to complete deployment to more than 350 stores by October 2008. The company purchased the SunSpectrum 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; we work with it as a partner. Good customer service is very important to us, because we run our entire business on Sun servers.‖ The company is meeting its initial goals for a high-performance solution with room for growth. It has already observed that data transactions run as much as five times faster on the new 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 reduce space and power requirements. Spencer's Retail plans to enhance its IT environment further with a new disaster recovery site, which will include Sun Fire V890 servers and Sun SPARC Enterprise T5120 servers running Solaris Cluster software connected to a StorageTek 6140 array. It will also use Sun StorageTek Data Replicator Software software to mirror data between the production environment and the remote location. Together with its new server infrastructure, the disaster recover installation will provide the high-performance, high-availability solution the company envisioned. With its business processes running on Sun infrastructure, Spencer's Retail can meet business growth with confidence.
  • 9. SPENCERS RETAIL LIMITED Company Profile Company Profile Spencer's retail is the largest* supermarket chain in India. We offer a complete range of products & durables, from bread to bed cover; from toothpaste to even television sets. Today Spencer's has 100 stores spread across 25 cities with a retail trading area of more than half a million square feet, and we're growing rapidly. Spencer's is the shopping choice for millions across the country, 2.8 million to be exact, who frequent our stores every month. Today Spencer's offers its customers a customized and convenient shopping experience in 5 different formats. Each format, namely the Spencer's Express, Spencer's Fresh, Spencer's Daily, Spencer's Super and Spencer's Hyper is differently sized and caters to the various needs 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 wide array 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 and the 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 essential for 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 fast and easy payment process. Electronic cheque conversion, a recent development in this area, processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. Internet Internet is also rapidly evolving as a customer interface, removing the need of a customer physically visiting the store.
  • 10. Operation Support Systems ERP System Various Enterprise Resource Planning (ERP) vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution, front and back office store systems and merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on time, preventing stock-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 with real access to consumer data. Data warehousing and mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. Advanced Planning and Scheduling Systems APS systems can provide improved control across the supply chain, all the way from raw material suppliers, right through to the retail shelf. They enable consolidation of activities such as long term budgeting, monthly forecasting, weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data. Strategic Decision Support Systems Store Site Location Demographics and buying patterns of residents of an area can be used to compare various possible sites for opening new stores. Today, software packages are helping retailers not only in their locational decisions but in decisions regarding store sizing and floor-spaces as well. Visual Merchandising The decision on how to place and stack items in a store is no more taken on the gut feel of the store manager. A larger number of visual merchandising tools are available 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 they didn'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 a solution to manage everything under one umbrella. So it engaged a team of experts to evaluate various solutions in the market. Spencer's found that SAP came closest to fulfilling its needs. Project Shakti has been operating for the last two years out of Chennai and it has already gone live in seven States – Andhra Pradesh (Vizag since 17 November 2006),
  • 11. 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 SAP solution to approximately 207 stores and expects to complete deployment to more than 350 stores 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 their operations in Books & Beyond, and are gradually migrating the rest to SAP. 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 distribution centres (DC) and selling to customers. The DCs in turn would be procuring articles based on the site's need from different vendors. The business processes covered under this are purchase, sales, inventory controlling along with financial accounting. The challenges faced during the implementation are managing the different pricing procedures which change very rapidly, managing the promotions; automation of the POS information, high volume of information to be processed, GMROI (Gross Margin Return on Investment) etc. They have followed SAP Methodology during the course of this implementation. The Project leader from SAP India gathered the necessary KPI's, Dimensions and reports from the 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 the technical 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 warehousing servers. For data processing, they have 'staging servers'. These are intermediary servers to store data temporarily before moving it to the SAP Production server. Eventually, all stores and warehouses across all locations will be integrated with its datacenter and shall be working on a real-time basis, except for the PoS billing system. At the end of each working day, 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 them to do bill-value and time analysis. They are also using MySAP Business Warehousing BW 7.0 for analytics. While their aggregated sales data goes to the SAP production server, the non- aggregated data goes to the business warehousing server for analytics at Kolkata. The latter helps them analyze customer buying patterns. The former data helps them manage inventory, stock keeping, etc. While some basic infrastructure is in place already, they are gradually implementing 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 and motivate people constantly, generate awareness and do change management. This makes the task more challenging, as it needs to manage deployments in such a dynamic environment keeping pace with the company's exponential growth plans.
  • 12. Operations Spencer's has retail footage of over 1 million square feet and over 275 Spencer's stores in 50 cities. The company operates through the following formats: The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ft in size. They offer everything under one roof. The merchandise ranges from fruits & vegetables, processed foods (Ready to Eat, Ready to Cook, FMCG products),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 décor & 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 than 15000 sq. ft. These stores stock the necessary range and assortment in fruit and 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 these stores which have floor area of more than 10,000 sq ft sometimes offer home care products; personal care products, bakery, chilled and frozen food; baby care, basics in garments and limited range of electronics and electrical. New Ventures  Spencer’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. 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 .‖
  • 13. 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.‖ Major Investment plan 1. It will be going in for a public issue within the next 12 months to raise capital for expansion. 2. The company will be investing Rs.10 billion over the next three years using both internal sources and an IPO. 3. 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. 4. Spencer’s Retail currently employs 4,500 people and has 6 million sq ft of space.
  • 14. Formats of Spencer’s outlets Spencer’s has retail footage over 2 million square feet and over 400 Spencer’s stores in 65 cities. The Company operates through the following formats: 1. Spencer’s Hypermarkets: A fast growing retail network of hypermarkets with large format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijaywada, Aurangabad, Durgapur and Kolkata. 2. Spencer’s super: One of the largest supermarket chains in the food and grocery segment in India. 3. Spencer’s Daily: Small format stores conveniently located with a range of products to meet daily household needs. 4. Spencer’s express: Food and grocery store next door.
  • 15. Spencer’s Daily Fresh Fruit Stall Market stall Manton Market  The Spencer’s Daily store is a friendly neighborhood store, which caters to the entire daily 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; Spencer’s Daily saves the hassle of bargaining with the local kirana shop owners (because it offers the lowest possible prices).
  • 16. Spencer’s Express  Spencer’s Express is a store next door for the fresh needs at arm’s 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.
  • 17. Spencer’s Fresh  Spencer’s 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, Spencer’s Fresh is far better the regular sabzi mandis or local vegetables markets and at Spencer’s.  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!
  • 18. Spencer’s Super  The Spencer’s Super is the place to go for the monthly shopping.  About 8000-15000 sq ft. in size, the Spencer’s 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, Fresh fruits and vegetables.
  • 19. Spencer’s Hyper  The Spencer’s Hypermarkets are huge destination stores, more than 25,000 sq ft. in trading area. Shoppers come here looking for fantastic deals across all categories.  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.
  • 20. India’s first modern format hypermarket was opened by Spencer’s in Hyderabad in January 2001. Located over an area of 1,20,000 sq.ft., the store has a trading area of 36,000 sq.ft. The Spencer’s hypermarkets, located across the country, are open throughout the day, seven days a week, 365 days a year. Spencer’s already employ over 9000 employees across 60 cities. Roughly 1/3 rd of the team are women. Spencer’s began its operations in India way back in 1863 and since then has remained a part of the lives of Indian consumers. 145 years later, the Spencer’s name still evokes special memory of authentic quality at affordable prices. Currently, RPG’s Retail activity comprises Spencer’s Retail, RPG Cellucom, Books & Beyond and MusicWorld. RPG’s total retail outlets are more than …… The total area of all Spencer’s stores across the country is over ….. sq.ft. Spencer’s currently has a national consumer base of over 48 million people, who walk into the store every year. Snapshot 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 1000 coffee/tea, masalas, pickles, Ghee, Fish and meat. Spencer’s Fresh vegetables, fruit, milk, eggs, breads 2000 Spencer’s daily regular groceries 4000-7000 Spencer’s Super home care products; personal care 8000-15000 products, Bakery, Chilled and frozen food; Baby care products Spencer’s Hyper Miscellaneous More than 25000
  • 21. 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 Indian customers. At Big Bazaar, you will definitely get the best products at the best prices - that’s what we 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. 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 fruits and vegetables, staples, FMCG products and ready-to-cook products. The Central offers a chain of stores including books and music stores, global brands in fashion, sports and lifestyle accessories, grocery store and restaurants. The Group's other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. It also operates an online portal, futurebazaar.com.
  • 22. 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. 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. The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership 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 group’s prime focus is on retailing. The Vishal stores offer affordable family fashion at prices to suit every pocket. The group’s 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.
  • 23. 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, 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 seen a 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. Subhiksha now has even opened Specialised Mobile shops called Subhiksha Mobile where mobiles 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.
  • 24. 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 Lucknow 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. SCOPE OF THE STUDY As learning is a human activity and is as natural, as breathing. Despite of the fact that learning 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 the product and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives. The scope of my study restricts itself to the Brand awareness of Spencer’s 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 retailer’s profitability drivers on the basis of Garments, Gifts, Cards & Music Department where as in the recent trend it's seen that the key players in retail industry are more emphasizing on the Garments, Personal grooming, Home furnishings, Life style and footwear Department in their Stores.
  • 25. 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 Spencer’s 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 Spencer’s and Big bazaar. 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: 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. 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:
  • 26.  Primary Source: The primary data comprises 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 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 & SPSS. 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.
  • 27. Survey on Spencer’s retail What is the thought of people about Spencer’s retail? 1. Have you heard of Spencer’s? Yes 93 No 7 Yes No 2. Have you visited Lucknow city Spencer’s earlier? Yes 90 No 10 Yes No
  • 28. 3. Visited Lucknow 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 20.0 Any other stores 70.0 Column1 Local shops Big Bazaar Any other stores
  • 29. 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
  • 30. 7. Spencer’s in garments? Yes 8 No 92 Yes No 8. Spencer’s in F & V? Yes 22 No 78 Yes No
  • 31. 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.
  • 32. 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% MEDIUM GRADE INCOME LEVEL 20% AVEREGE GRADE INCOME LEVEL 5% 80% 60% 40% 20% 0% HIGH GRADE MEDIUM AVEREGE INCOME GRADE GRADE LEVEL INCOME INCOME LEVEL LEVEL From the above the analysis it’s 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 customer’s per day basis. For this reason we have studied customer flows on an average of high customer flow days.
  • 33. Inter-Department Customer Flow DEPARTMENT NUMBER OF CUSTOMER GARMENTS DEPARTMENT 350 GIFTS DEPARTMENT 700 MUSIC DEPARTMENT 900 Inter-Department Customer Flow MUSIC … Inter-DepartmentGIFTS … Customer Flow GARMENT… NUMBER OF 0 500 1000 CUSTOMER In Spencer we have found that the average customer flow lies between 650-700 on average high 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. It’s noted that the gifts department consists of exclusive products. Value of Stock in the different department: VALUE OF THE STOCK DEPARTMENT (Rs) GARMENTS DEPARTMENT 760000 GIFTS DEPARTMENT 5050000 MUSIC DEPARTMENT 8060000 VALUE OF THE STOCK (Rs) GARMENTS DEPARTMENT GIFTS DEPARTMENT MUSIC DEPARTMENT 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,
  • 34. 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, Levi’s, 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, Men’s 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 . It’s 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, linen as well as other home accessories, thus providing customers a high range product. Revenue generated by the different department: REVENUE PER In 2007-08 (Rs) DEPARTMENT GARMENTS DEPARTMENT 2000000 GIFTS DEPARTMENT 4000000 MUSIC DEPARTMENT 6500000 TOTAL 12500000
  • 35. In 2007-08 (Rs) 15000000 10000000 5000000 0 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 it’s 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 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.
  • 36. 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 ―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.
  • 37. Analysis of the study on Big Bazaar In the Indian Retail Scenario Big Bazaar has a great success to create a revolution. Basically they have differentiated their customers on the basis of customers rather than their income level. Later on we will analyze these aspects. Here we are analyzing which income level of customers are generally tended to purchase the products in Big Bazaar department wise: Percentage of customers flows department wise Type of customer Garment Gifts Section Music Cards section section section High grade income level 10% 15% 50% 7% Medium grade income level 50% 55% 40% 53% High grade income level 40% 30% 10% 40% 100% 80% High grade income level60% 40% Medium grade income20% 0% level High grade income level From the above details it is found that the garment section they are targeting the middle and average level of customers. They are not promoting any major brands and they have their own brand towards the major brands in garments industry. Flow of high level of customers I music section is better than the other department. Generally upper middle and medium class and 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 customer flows on an average of high customer flow days.
  • 38. Inter-Department Customer Flow Department Number of customer Garments Department 1600 Gifts Department 600 Cards Department 250 Music Department 800 Music Department Cards Department Gifts Department Garments Department Department 0 500 1000 1500 2000 With the study of customer flow in Big Bazaar on an average of high customer flow day we came to know that it’s basically lies between 2000-2500 customers per day. Here we talking the customers who are generating revenues for these departments. From the above figures its executed that flow of customers in garment department is relatively higher than the other departments. One significant difference is noted than the others retail is that they have placed their music department at the front of cash counters and introduced low range of music cds’ and game dvd’s for the all category customers which increased customers the flow in the music department. Value of stock in the different departments: We have chosen 4 departments from Spencer’s store and estimated the valuation of average stock with the assumption details provided by the branch operation stuffs.
  • 39. Value of the stock Department (Rs) Garments Department 163000000 Gifts Department 7500000 Cards Department 150000 Music Department 580000 Value of the stock (Rs) Garments Department Gifts Department Cards Department Music Department The garment section is divided into men, women and kids section. They have also a discount section only for the garments. 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 winter season and tends to double the value of stock. Normally they are maintain a stock value of 16.3 to 17 crore value of stock bus it increase at the time of winter to more than 40 crore. Value of stock of the others departments: In some big retails its seen that they are including some cookery, home furnishings and life style products in their gifts section. Big Bazaar is maintaining a low stock but more product categories in their gifts section and generating remarkable revenue from this.
  • 40. Stock of music department is overflowed with low products. Their stock have a potential to earn 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 different departments 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 income level customers. Revenue per 2004-2005 2007-2008 department Garment department 90000 300000 Gifts department 42000 180000 Cards department 2000 1800 Music department 19000 40000 Total 153000 521800 600000 500000 400000 300000 200000 100000 2004-2005 0 2008-2009 From the above study its revealed that at the time of inception of the organized retail in India in the year of 2004-2005, only the high grade and upper medium grade income level customers were tends to go the retails. So the maximum portion of revenues generates from these two groups only in the year of 2004-2005.
  • 41. The change in revenue of garment department and in the gifts department from the year 2004-2005 to 2007-2008 is significant because Big Bazaar is shifted products towards the own manufactured brands and they became successful to establish their own brands in the garment retail industry. A measurable changes found in the cards department is 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 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. Garment Department Overview: In Garment department the products are mainly their own brands an price range lies between Rs 99 to Rs 800 averagely which is very reasonable for the middle class, average and also low level income group peoples. The stock in this section is fair to satisfy its customer needs and 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 focusing on the low range products with their own brands. All the times they are giving special discounts on all the garments products. They have adopted tricks like ―Buy 2 get 3 , Buy 3‖ get 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. It’s a very strategic and attractive offer specially adopted by Big Bazaar. They have also a section they are selling the branded high class 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 income level customer level flow in the others departments like in the furniture and grocery department they can introduce a wider range of branded products in the garment section as this income is conscious about the brand that they are using.
  • 42. Gifts Department Overview: Gift department is consisting of various product categories from home furnishing products personal using products. According to Big Bazaar now a days no one can define which section should be referred as a gifts section. Customer preference is changing day by day with the increased product categories. Findings: In Big Bazaar we have found that they are also referring home furnishing products, personal care and low range electronic products as gift products and basically it depends on the customers need and choice. The whole gift section is able to satisfy the all level of income groups 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 varieties of products with a limited stock which helps them to implement a good stock turn over ratio and 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 & DVD’s and also Movie DVD’s. Findings: Big Bazaar 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: In the music its 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.
  • 43. Analysis of the study on Vishal Mega Mart Types of customer: There are three types of consumer in the Indian retail market. Vishal mega mart is a firm believer of that the middle class and upper middle class are the potential customer in their product categories. Here we are analyzing which income level of customers are generally tend to purchase the products department wise: Percentage of types of customer department wise Type of customer Garment Gifts Music Cards section section section section 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 100 80 Average grade income60 40 level 20 Medium grade income 0 level High grade income level From the above details it’s 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.
  • 44. Inter- Department customer flow Department Number of customer Garments Department 900 Gifts Department 250 Cards Department 100 Music Department 300 Inter- Department customer flow Number of customer Music Department Cards Department Gifts Department Garments Department Inter- Department customer flow Number of customer 0 500 1000 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 are making 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) Garments Department 10340000 Gifts Department 250000 Cards Department 75000 Music Department 200000
  • 45. Value of the stock in the Garment Departments: Garments Department Gifts Department Cards Department Music Department 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. 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 it’s seasonal business according to the Vishal Mega Mart. Music department is consisting of Music, movie and game cd & dvd’s. Its found that the stock of game cd & dvd’s 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.
  • 46. Department 2004-2005 2007-2008 Garments 50000 180000 Gifts 5000 10000 Cards 2000 1800 Music 1800 5000 Total 58800 196800 200000 150000 100000 50000 2004-2005 0 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.
  • 47. 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 : In the garment section we have found that products categories are not focusing the high grade 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 isn’t 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 the garment 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.
  • 48. Music Department Overview: Music section consist of music cd’s, game cd & dvd’s and also movie dvd’s. 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: In the music section we have found that they are mainly focusing on the game cd’s and dvd’s and also the price range is also high. Again the collection of game cd and dvd’s is considerable but in the case of Indian music cd’s the stock level is not also upto the customer’s 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 cd’s. Another point is that there should be a balance between the stock of their product lines in the music department.
  • 49. COMPARITIVE ANALYSIS OF THE STORES On the basis of customer flows: 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 VALUE OF THE STOCK (Rs) 10000000 8000000 6000000 4000000 2000000 VALUE OF THE 0 STOCK (Rs) 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 Gifts Dept Cards Dept Music Dept dept Vishal Mega 65000000 250000 77500 175000 Mart 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.
  • 50. Garments dept 20000000 15000000 10000000 50000000 0 Garments dept Vishal Mega Mart: The product in the garment section isn’t exclusive and meant for the medium to average grade income level customers. Also they aren’t focusing on major brands in the garment industry. All the products are unbranded and semi branded and don’t 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 price for 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 customer’s satisfactory level is remarkable.
  • 51. 80000000 60000000 40000000 20000000 0 Vishal Mega Mart Spencer Big Bazaar Retail Cards Department: Vishal Mega Mart: Stock in the department is taken care as relatively low and it’s considered as a seasonal business. Big Bazaar: Stock in this department is taken care as relatively low and it’s considered as a seasonal business. Spencer: It is having highest value in gift department. 200000 150000 100000 50000 0 Cards Dept Music Department: Vishal Mega Mart: Music department is consisting of music, movies amd games cd-dvd’s. the stock of game cd-dvd’s 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-dvd’s 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
  • 52. copyright product categories. They customer satisfaction level is high with the fulfillment of their needs. Spencer: Spencer is earning more revenue in this department than Big Bazaar & Vishal Mega Mart in music because it is of RPG group. 10000000 8000000 6000000 4000000 Music Dept 2000000 0 Vishal Spencer Big Mega Retail Bazaar Mart
  • 53. 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.
  • 54. 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 Spencer’s have good brand awareness among the consumers. Spencer’s in FMCG sector. Spencer’s retail specialist marketing expertise.  Weaknesses The consumers are not much satisfied of the offers introduced by Spencer’s. Big Bazaar has better product range than Spencer’s. Big Bazaar has better promotional schemes than Spencer’s.  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 Spencer’s. Big Bazaar have greater acceptance among the consumers in comparison to Spencer’s.
  • 55. Bibliography Author’s Name Book Name Place of Publication Year Kothari, C.R. Research Methodology- Wiley Eastern Ltd., New Delhi Methods and Techniques Brown, F.E. Marketing Research, a Addison-Wesley Eastern Ltd. structure for decision making Dunn Online Jean and Applied Statistics John Wiley and Sons Virginai A Clarck Hooda, R.P. Statistics for Business and Macmillan India, New Delhi Economics Green Pant E and Donald S. Research for Marketing Wiley Eastern, New Delhi Tull Decisions Philip Kotler. Marketing Management Prentice Publishing Co., New Delhi. Shenoy, GVS et al. Quantitative Techniques Wiles Eastern New Delhi for Managerial Decision Making .
  • 56. Websites www.Spencersretail.com www.rpggroup.com www.scribt.com 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
  • 57. QUESTIONNAIRE PERSONAL DETAILS 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 3. Which kind of customers generally visit at your store? (a) High grade income level (b) Medium grade income level (c) Average grade income level
  • 58. 4. Flow of customer per day in your store: (a) Below 500 (b) 500 to 1000 (c) 1000 to 1500 5. In which department stock is being taken care comparatively in a lightly way? (a) Garments (b) Gift items (c) Cards (d) Music Does the brand consciousness of customers divert them to the different departments? Yes No Does the brand consciousness of customers divert them to the different departments? Yes No If yes which type of customer? Young
  • 59. Old Child Beauty conscious people 8. Is the Information Technology helping in ROI of the store? Yes No If yes then which features is/are motivating? ERP Online Adv SAP/Tally Informational Security 9. 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? (a) High grade income level (b) Medium grade income level (c) Average grade income level
  • 60. 2. 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 3. 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? (d) High grade income level (e) Medium grade income level (f) Average grade income level 2. Revenue generated by Gifts section in your store? (d) High grade income level: Revenue in 2004-2005 Revenue in 2008-2009 (e) Medium grade income level: Revenue in 2004-05 Revenue in 2008-09
  • 61. (f) Average grade income level: Revenue in 2004-05 Revenue in 2008-09 3. Is your stock efficient to revamp the customer satisfaction in your store? Yes No Questionnaire (Music Department) 1. Which kind of customers generally visit at your Music section and their flow? (g) High grade income level (h) Medium grade income level (i) Average grade income level 2. Revenue generated by Music section in your store? (g) High grade income level: Revenue in 2004-2005 Revenue in 2008-2009 (h) Medium grade income level: Revenue in 2004-05 Revenue in 2008-09 (i) Average grade income level: Revenue in 2004-05 Revenue in 2008-09
  • 62. 3. Is your stock efficient to revamp the customer satisfaction in your store? Yes No Questionnaire (Cards Department) 1. Which kind of customers generally visit at your Cards section and their flow? (j) High grade income level (k) Medium grade income level (l) Average grade income level 2. Revenue generated by Cards section in your store? (j) High grade income level: Revenue in 2004-2005 Revenue in 2008-2009 (k) Medium grade income level: Revenue in 2004-05 Revenue in 2008-09 (l) Average grade income level: Revenue in 2004-05 Revenue in 2008-09 3. Is your stock efficient to revamp the customer satisfaction in your store? Yes No