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15/03/2018
SPENCERS RETAIL LIMITED : REPOSITIONING IN A
CHANGING RETAIL ENVIRONMENT GROUP 7 :
1
About the Store
 Spencer's super market is the largest super market chain in
India.
 It operates through over 350 stores
 Spencer's offer its customers a customized and convenient
shopping experience in 4 different formats:
Spencer’s express
Spencer's daily
Spencer’s super
Spencer’s hyper
15/03/2018 2
Company at a Glance and Taste the World Concept
15/03/2018
Spencer`s at a Glance Taste The World
 Company name: Spencer's Retail Limited
 Domain: Retail
 Founded:1863
 Founders: Charles Durrant & John William
Spencer
 Headquarters: Kolkata , West Bengal
 No: of employees: more than 5000
 Parent: RP Sanjiv Goenka Group
 “ Futuristic and International
Shopping Experience”
 3 broad components
Heritage boards
Product displays
Introduction of differentiating
elements
 Initially for that they received
positive response
3
SWOT ANALYSIS OF `SPENCER`S RETAIL LTD.
15/03/2018
STRENGTHS
 Broad product portfolio
 Special focus on brand and quality
 Successful customer engagement
programs
 Strong marketing promotions
WEAKNESSES
OPPORTUNITIES THREATS
 operating costs keeps on rising
 High bargaining power of suppliers
 Prospective retail sector
 Favorable Indian demographics( high
disposable income)
 Large format store expansion
 Competition from leading
international retail giants such as
Tesco, Carrefour, Walmart due to
approval of FDI in multi-retail.
4
Competitors to Spencer`s Retail Ltd.
15/03/2018
Reliance Store
Pantaloons Retail
Stores
Bharati Walmart
Big Bazaar
5
4P`s
15/03/2018
PRODUCT
 Food , personal care
 Electrical
 Home care products (Day to day products)
PRICE
PLACE PROMOTIONS
 Wide range of qualitative products at
affordable rates
 Pricing policy (Discounts)
 Convenient Locations
 Customised shopping Experience
 Advertisements
 Mass Media Communication
 Brand Projection
6
Retail Design Initiatives
15/03/2018 7
Storefront Design Visual Merchandising Initiatives
Feature Displays Presentation of Merchandise
Global McKinsey Report – Indian Middle Class
15/03/2018
According to Global Mckinsey Report, by 2015,
the Indian Middle Class was expected to spend
about 34% of its after tax income on food,
beverage and tobacco, 4% on apparel, 3% on
household products and about 9% on personal
products and services.
8
Taste The World
 Brand the retail through it’s décor, its merchandising and it’s
pricing policies.
 Value Proposition: “futuristic and international shopping
experience.”
 82% of the shoppers SECs A1 and A2.
 Small loyal segment to Spencer’s
 Large Switching customer segments to other retailers.
 Big Bazaar; their competitor offered better prices and deals.
15/03/2018 9
Customer Satisfaction Survey - Taste The World
15/03/2018 10
Customer Satisfaction Survey
Except Low-end product
availability, Prices are good
value for quality, Many items
are on sale and Feels like I am
getting a bargain, in all other
factors Spencer`s tops Big
Bazaar.
MFLA MERCHANDISING & CONSUMER RESPONSE
15/03/2018 11
CONSUMER RERSPONSEMFLA MERCHANDISING PLAN
SALES AND VOLUME FIGURES
15/03/2018 12
SALES AND VOLUME FIGURES
 After the adoption of MFLA
strategy, the volume has
increased.
 However, the increase
cannot be attributed to
Staples and fruits and
vegetables.
 But, the increase came
from FMCG segment
Recommendations
 Increase store’s traffic and profitability
 Change perception
 Marketing mix support
 Cost versus new product
15/03/2018 13
Thank You
15/03/2018 14

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Spencers retail limited : Repositioning in a changing retail environment - Case Analysis

  • 1. 15/03/2018 SPENCERS RETAIL LIMITED : REPOSITIONING IN A CHANGING RETAIL ENVIRONMENT GROUP 7 : 1
  • 2. About the Store  Spencer's super market is the largest super market chain in India.  It operates through over 350 stores  Spencer's offer its customers a customized and convenient shopping experience in 4 different formats: Spencer’s express Spencer's daily Spencer’s super Spencer’s hyper 15/03/2018 2
  • 3. Company at a Glance and Taste the World Concept 15/03/2018 Spencer`s at a Glance Taste The World  Company name: Spencer's Retail Limited  Domain: Retail  Founded:1863  Founders: Charles Durrant & John William Spencer  Headquarters: Kolkata , West Bengal  No: of employees: more than 5000  Parent: RP Sanjiv Goenka Group  “ Futuristic and International Shopping Experience”  3 broad components Heritage boards Product displays Introduction of differentiating elements  Initially for that they received positive response 3
  • 4. SWOT ANALYSIS OF `SPENCER`S RETAIL LTD. 15/03/2018 STRENGTHS  Broad product portfolio  Special focus on brand and quality  Successful customer engagement programs  Strong marketing promotions WEAKNESSES OPPORTUNITIES THREATS  operating costs keeps on rising  High bargaining power of suppliers  Prospective retail sector  Favorable Indian demographics( high disposable income)  Large format store expansion  Competition from leading international retail giants such as Tesco, Carrefour, Walmart due to approval of FDI in multi-retail. 4
  • 5. Competitors to Spencer`s Retail Ltd. 15/03/2018 Reliance Store Pantaloons Retail Stores Bharati Walmart Big Bazaar 5
  • 6. 4P`s 15/03/2018 PRODUCT  Food , personal care  Electrical  Home care products (Day to day products) PRICE PLACE PROMOTIONS  Wide range of qualitative products at affordable rates  Pricing policy (Discounts)  Convenient Locations  Customised shopping Experience  Advertisements  Mass Media Communication  Brand Projection 6
  • 7. Retail Design Initiatives 15/03/2018 7 Storefront Design Visual Merchandising Initiatives Feature Displays Presentation of Merchandise
  • 8. Global McKinsey Report – Indian Middle Class 15/03/2018 According to Global Mckinsey Report, by 2015, the Indian Middle Class was expected to spend about 34% of its after tax income on food, beverage and tobacco, 4% on apparel, 3% on household products and about 9% on personal products and services. 8
  • 9. Taste The World  Brand the retail through it’s décor, its merchandising and it’s pricing policies.  Value Proposition: “futuristic and international shopping experience.”  82% of the shoppers SECs A1 and A2.  Small loyal segment to Spencer’s  Large Switching customer segments to other retailers.  Big Bazaar; their competitor offered better prices and deals. 15/03/2018 9
  • 10. Customer Satisfaction Survey - Taste The World 15/03/2018 10 Customer Satisfaction Survey Except Low-end product availability, Prices are good value for quality, Many items are on sale and Feels like I am getting a bargain, in all other factors Spencer`s tops Big Bazaar.
  • 11. MFLA MERCHANDISING & CONSUMER RESPONSE 15/03/2018 11 CONSUMER RERSPONSEMFLA MERCHANDISING PLAN
  • 12. SALES AND VOLUME FIGURES 15/03/2018 12 SALES AND VOLUME FIGURES  After the adoption of MFLA strategy, the volume has increased.  However, the increase cannot be attributed to Staples and fruits and vegetables.  But, the increase came from FMCG segment
  • 13. Recommendations  Increase store’s traffic and profitability  Change perception  Marketing mix support  Cost versus new product 15/03/2018 13