1) Retailing in India accounts for 10% of GDP and is the tenth largest retail market in the world, providing significant employment. 2) Spencer's is India's oldest retailer established in 1896 and operates various store formats ranging from small express stores to large hypermarkets across India. 3) Spencer's has established backward linkages with farmers, providing technical assistance and assured pricing, which has increased farmer incomes and production while reducing costs and market risks for farmers.

1. Retailing in
agribusiness

2. Retailing
• According to Philips Kotler “retailing
includes all the activities involved in
selling of goods and services directly
to final consumer for personal, on
business use”.
• Indian Retail Industry is ranked tenth
largest retail markets in the world.
• It create enormous employment .
• Retailing accounts 10% of GDP.

3. Classification of retail sector in India
RETAIL
SECTOR
ORGANIZED UNORGANIZED

4. Format of retail
marketing
• Supermarkets
• Hypermarkets
• Department Stores
• Shopping malls
• Specialty Chains

5. Unorganized
retail marketing
•Traditional store
•Hand cart stores

6. Spencer’s

7. Introduction

8. Introduction
•Spencer is India’s oldest
retailer
•RPG was established in 1996
•Founders - Charles Durrant &
John William Spencer
•Member of - RPG GROUP
•Managing director – Mohit
Kampani

10. Headquarter of spencer

11. No. of location – 120 across 35 cities

12. Format’s of
Spencer
Spencer’s express Spencer’s daily
Spencer’s super Spencer’s hypermarket

13. Spencer’s express
• dairy, fruit and vegetables, bread and
bread products, fruit juice, fresh
batter, fresh coffee/tea, masalas,
pickles, Ghee, Fish and meat
• Minimum trading area 1000 sq.
meter in size
• Open from 7am to 9pm
• Provide home delivery

14. Format’s of
Spencer
Spencer’s express Spencer’s daily
Spencer’s super Spencer’s hypermarket

15. Spencer’s daily
• vegetables, fruits, milk, eggs, breads
• 2000 sq. meter in size

16. Format’s of
Spencer
Spencer’s express Spencer’s daily
Spencer’s super Spencer’s hypermarket

17. Spencer’s super
• home care products;
personal care
products, Bakery,
Chilled and frozen
food; Baby care
products
• Minimum trading
area 8000-15000
sq.(ft.)

18. Format’s of
Spencer
Spencer’s express Spencer’s daily
Spencer’s super Spencer’s hypermarket

19. Spencer’s hypermarket
• Spencer’s Hyper market is a Mega
store which combine supermarket
with departmental store.
• Minimum trading area is more than
25000 sq. ft. in size.
• It deal in miscellaneous stocks

21. 1) Established
backward linkages with farmers for
procuring fresh fruits and vegetables.
2) Linkages Reduce market risks and
transaction costs of Farmers.
3) Farmers are provided with a package of
‘Good Agricultural Practices’ (GAP) has led
to increase in the intensity of cultivation as
well production.

22. 4) Small and marginal farmers, through
their intensive cultivation of getting fair
price , have been able to earn the higher
incomes.
5) It helps the farmers in procuring inputs
from suppliers at reduced rates.
6) Technical guidance on aspects like
the time of planting, crop production and
management, harvest time, quantity to be
harvested are provided by the
Consolidation Centre to farmers to ensure
quality and marketability.

23. 7) Consolidation Centre ensures a sort of
support price even during the glut in the
market, so that farmers do not incur losses.
8) Farmers preferred to supply their produce
to the Consolidation Centre, as it provided
them stable prices and assured market,
compared to the highly volatile prices at the
wholesale market.
9) Diversity in crops had increased after their
association with Consolidation Centre, as they
had assured market for their produce and
their marketing risks were minimized under
the new institutional arrangement.

24. 10) The gross income from agriculture of
a farmer was Rs 1,72,000 per year while
that of a traditional market farmer was
Rs 70,000, due to improved agricultural
practices and provided extra income to
these farmers.
11) The high net returns
for farmers were due to drastic
reduction in transaction costs,
particularly transportation cost and
commission charges.

25. 12) This new institutional
arrangement by Consolidation Centre
has helped the farmers to break away
from the clutches of traditional
brokers/wholesaler/commission
agents.
13) With improvement in the level of
education, Ownership of transportation
vehicle getting by the farmers
probability of selling vegetables at
Consolidation Centre increased.

26. Strengths
•Reduced transaction cost
•Higher yield
•Reduced market risks
•Helps the farmers to break away from clutches of traditional
brokers/ commission agents(to a great extent)
•chains have brought quality consciousness among farmers
•cost of compliance is not prohibitive
•Dealing with large number of small and marginal farmers

27. Weakness
•Could not keep pace with the competitive and dynamic
environment
•Farmers could not completely break away from the clutches
of middlemen
•No written contracts and consignments places the financial
risks solely with the producers/suppliers

28. Opportunities
•Focus more on non-food items to
break even (in the context of present
status)
(Losses in retail chain in FY 2013-14
= Rs 164.5 crore)
•Develop better marketing strategy
•E-commerce can help the company
in attaining higher sales

29. Threats
•Need to adopt innovations in
product (e.g. reducing
perishability) commensurate
with the needs of the target
market.
•Threat from the competitors

31. Problem
Low bargaining power
Recommendation
can work with farmer leaders or
work in groups, cooperative or
associations

32. Problem
Market access for small producers
•Understanding the markets
•Organization of the firm or operations
• Communication and transport links
•An appropriate policy environment
Recommendation
•Collective action
•Strengthen small farmer organizations
•Cooperatives which are more market oriented
•Governments, NGOs, can facilitate small farmers
participating in the supermarket channel

33. Innovation in Marketing
Channel
Innovate! Think like a Marketer! Thank
You!